Document:

exv10w2

EXHIBIT
10.2

EXECUTION COPY

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

DATED AS OF FEBRUARY 24, 2010

BY AND AMONG

ARCH RECEIVABLE COMPANY, LLC,

as Seller,

ARCH COAL SALES COMPANY, INC.,

as initial Servicer,

THE VARIOUS CONDUIT PURCHASERS, RELATED COMMITTED PURCHASERS,

LC PARTICIPANTS AND PURCHASER AGENTS FROM TIME TO TIME PARTY 

HERETO,

AND

PNC BANK, NATIONAL ASSOCIATION,

as Administrator and as LC Bank

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. AMOUNTS AND TERMS OF THE PURCHASES
	 	 	2	 
	Section 1.1 Purchase Facility
	 	 	2	 
	Section 1.2 Making Purchases; Initial Purchase; Initial Assignment and Assumption
	 	 	3	 
	Section 1.3 Purchased Interest Computation
	 	 	8	 
	Section 1.4 Settlement Procedures
	 	 	8	 
	Section 1.5 Fees
	 	 	13	 
	Section 1.6 Payments and Computations, Etc
	 	 	13	 
	Section 1.7 Increased Costs
	 	 	14	 
	Section 1.8 Requirements of Law; Funding Losses
	 	 	15	 
	Section 1.9 Inability to Determine Euro-Rate
	 	 	16	 
	Section 1.10 Taxes
	 	 	17	 
	Section 1.11 Letters of Credit
	 	 	17	 
	Section 1.12 Issuance of Letters of Credit
	 	 	17	 
	Section 1.13 Requirements For Issuance of Letters of Credit
	 	 	18	 
	Section 1.14 Disbursements, Reimbursement
	 	 	18	 
	Section 1.15 Repayment of Participation Advances
	 	 	19	 
	Section 1.16 Documentation
	 	 	20	 
	Section 1.17 Determination to Honor Drawing Request
	 	 	20	 
	Section 1.18 Nature of Participation and Reimbursement Obligations
	 	 	20	 
	Section 1.19 Indemnity
	 	 	22	 
	Section 1.20 Liability for Acts and Omissions
	 	 	22	 
	ARTICLE II. REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS
	 	 	24	 
	Section 2.1 Representations and Warranties; Covenants
	 	 	24	 
	Section 2.2 Termination Events
	 	 	24	 
	ARTICLE III. INDEMNIFICATION
	 	 	24	 
	Section 3.1 Indemnities by the Seller
	 	 	24	 
	Section 3.2 Indemnities by the Servicer
	 	 	26	 
	ARTICLE IV. ADMINISTRATION AND COLLECTIONS
	 	 	27	 
	Section 4.1 Appointment of the Servicer
	 	 	27	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	Section 4.2 Duties of the Servicer
	 	 	27	 
	Section 4.3 Lock-Box Account Arrangements
	 	 	29	 
	Section 4.4 Enforcement Rights
	 	 	29	 
	Section 4.5 Responsibilities of the Seller
	 	 	30	 
	Section 4.6 Servicing Fee
	 	 	30	 
	Section 4.7 Authorization and Action of the Administrator and Purchaser Agents
	 	 	31	 
	Section 4.8 Nature of Administrator’s Duties; Delegation of Administrator’s Duties;
Exculpatory Duties
	 	 	32	 
	Section 4.9 UCC Filings
	 	 	33	 
	Section 4.10 Agent’s Reliance, Etc
	 	 	33	 
	Section 4.11 Administrator and Affiliates
	 	 	34	 
	Section 4.12 Notice of Termination Events
	 	 	34	 
	Section 4.13 Non-Reliance on Administrator, Purchaser Agents and other Purchasers;
Administrators and Affiliates 
	 	 	35	 
	Section 4.14 Indemnification
	 	 	36	 
	Section 4.15 Successor Administrator
	 	 	36	 
	ARTICLE V. MISCELLANEOUS
	 	 	37	 
	Section 5.1 Amendments, Etc
	 	 	37	 
	Section 5.2 Notices, Etc
	 	 	37	 
	Section 5.3 Successors and Assigns; Assignability; Participations
	 	 	37	 
	Section 5.4 Costs, Expenses and Taxes
	 	 	40	 
	Section 5.5 No Proceedings; Limitation on Payments
	 	 	42	 
	Section 5.6 Confidentiality
	 	 	43	 
	Section 5.7 GOVERNING LAW AND JURISDICTION
	 	 	43	 
	Section 5.8 Execution in Counterparts
	 	 	44	 
	Section 5.9 Survival of Termination; Non-Waiver
	 	 	44	 
	Section 5.10 WAIVER OF JURY TRIAL
	 	 	44	 
	Section 5.11 Entire Agreement
	 	 	44	 
	Section 5.12 Headings
	 	 	45	 
	Section 5.13 Right of Setoff
	 	 	45	 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	Section 5.14 Purchaser Groups’ Liabilities
	 	 	45	 
	Section 5.15 Sharing of Recoveries
	 	 	45	 
	Section 5.16 Ratification
	 	 	45	 

-iii-

 

     This AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented
or otherwise modified from time to time, this “Agreement”) is entered into as of February
24, 2010, by and among ARCH RECEIVABLE COMPANY, LLC, a Delaware limited liability company, as
seller (the “Seller”), ARCH COAL SALES COMPANY, INC., a Delaware corporation (“Arch
Sales”), as initial servicer (in such capacity, together with its successors and permitted
assigns in such capacity, the “Servicer”), the various CONDUIT PURCHASERS, RELATED
COMMITTED PURCHASERS, LC PARTICIPANTS and PURCHASER AGENTS from time to time party hereto and PNC
BANK, NATIONAL ASSOCIATION, a national banking association (“PNC”), as administrator (in
such capacity, together with its successors and assigns in such capacity, the
“Administrator”) and as issuer of Letters of Credit (in such capacity, together with its
successors and assigns in such capacity, the “LC Bank”).

     PRELIMINARY STATEMENTS. Certain terms that are capitalized and used throughout this Agreement
are defined in Exhibit I. References in the Exhibits hereto to the “Agreement” refer to
this Agreement, as amended, supplemented or otherwise modified from time to time.

     This Agreement amends and restates in its entirety, as of the Closing Date, the Receivables
Purchase Agreement, dated as of February 3, 2006 (as amended, restated, supplemented or otherwise
modified prior to the date hereof, the “Original Agreement”), among the Seller, the
Servicer, Market Street Funding LLC (“Market Street”) and PNC, as LC Participant,
Administrator and LC Bank. Upon the effectiveness of this Agreement, the terms and provisions of
the Original Agreement shall, subject to this paragraph, be superseded hereby in their entirety.
Notwithstanding the amendment and restatement of the Original Agreement by this Agreement, (i) the
Seller and Servicer shall continue to be liable to PNC, Market Street and any other Indemnified
Party or Affected Person (as such terms are defined in the Original Agreement) for fees and
expenses which are accrued and unpaid under the Original Agreement on the date hereof
(collectively, the “Original Agreement Outstanding Amounts”) and all agreements to
indemnify such parties in connection with events or conditions arising or existing prior to the
effective date of this Agreement and (ii) the security interest created under the Original
Agreement shall remain in full force and effect as security for such Original Agreement Outstanding
Amounts until such Original Agreement Outstanding Amounts shall have been paid in full. Upon the
effectiveness of this Agreement, each reference to the Original Agreement in any other document,
instrument or agreement shall mean and be a reference to this Agreement. Nothing contained herein,
unless expressly herein stated to the contrary, is intended to amend, modify or otherwise affect
any other instrument, document or agreement executed and/or delivered in connection with the
Original Agreement.

     The Seller (i) desires to sell, transfer and assign an undivided percentage interest in a pool
of receivables, and the Purchasers desire to acquire such undivided percentage interest, as such
percentage interest shall be adjusted from time to time based upon, in part, reinvestment payments
that are made by such Purchasers and (ii) may, subject to the terms and conditions hereof, request
that the LC Bank issue or cause the issuance of one or more Letters of Credit.

     In consideration of the mutual agreements, provisions and covenants contained herein, the
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I.

AMOUNTS AND TERMS OF THE PURCHASES

     Section 1.1 Purchase Facility.

     (a) On the terms and subject to the conditions hereof, the Seller may, from time to time
before the Facility Termination Date, (i) ratably (based on the aggregate Commitments of the
Related Committed Purchasers in their respective Purchaser Groups) request that the Conduit
Purchasers, or, only if a Conduit Purchaser denies such request or is unable to fund (and provides
notice of such denial or inability to the Seller, the Administrator and its Purchaser Agent),
ratably request that the Related Committed Purchasers, make purchases of and reinvestments in
undivided percentage ownership interests with regard to the Purchased Interest from the Seller and
(ii) request that the LC Bank issue or cause the issuance of Letters of Credit, in each case
subject to the terms hereof (each such purchase, reinvestment or issuance is referred to herein as
a “Purchase”). Subject to Section 1.4(b) concerning reinvestments, at no time will
a Conduit Purchaser have any obligation to make a Purchase. Each Related Committed Purchaser
severally hereby agrees, on the terms and subject to the conditions hereof, to make purchases of
and reinvestments in undivided percentage ownership interests with regard to the Purchased Interest
from the Seller from time to time from the date hereof to the Facility Termination Date, based on
the applicable Purchaser Group’s Ratable Share of each Purchase requested pursuant to Section
1.2(a) (and, in the case of each Related Committed Purchaser, its Commitment Percentage of its
Purchaser Group’s Ratable Share of such Purchase) and, on the terms of and subject to the
conditions of this Agreement, the LC Bank hereby agrees to issue Letters of Credit in return for
(and each LC Participant hereby severally agrees to make participation advances in connection with
any draws under such Letters of Credit equal to such LC Participant’s Pro Rata Share of such
draws), undivided percentage ownership interests with regard to the Purchased Interest from the
Seller from time to time from the date hereof to the Facility Termination Date. Notwithstanding
anything set forth in this paragraph (a) or otherwise herein to the contrary, under no
circumstances shall any Purchaser make any purchase or reinvestment (including, without limitation,
any mandatory deemed Purchases pursuant to Section 1.1(b)) or issue any Letters of Credit
hereunder, as applicable, if, after giving effect to such Purchase, the (i) aggregate outstanding
amount of the Capital funded by such Purchaser, when added to all other Capital funded by all other
Purchasers in such Purchaser’s Purchaser Group would exceed (A) its Purchaser Group’s Group
Commitment (as the same may be reduced from time to time pursuant to Section 1.1(c)) minus
(B) the related LC Participant’s Pro Rata Share of the LC Participation Amount, (ii) the Aggregate
Capital plus the LC Participation Amount would exceed the Purchase Limit or (iii) the LC
Participation Amount would exceed the aggregate of the Commitments of the LC Participants.

     The Seller may, subject to this paragraph (a) and the other requirements and
conditions herein, use the proceeds of any purchase by the Purchasers hereunder to satisfy its
Reimbursement Obligation to the LC Bank and the LC Participants (ratably, based on the outstanding
amounts funded by the LC Bank and each such LC Participant) pursuant to Section 1.14
below.

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     (b) In the event the Seller fails to reimburse the LC Bank for the full amount of any drawing
under any Letter of Credit on the applicable Drawing Date (out of its own funds available therefor)
pursuant to Section 1.14, then the Seller shall, automatically (and without the requirement of any
further action on the part of any Person hereunder), be deemed to have requested a new purchase
from the Conduit Purchasers or Related Committed Purchasers, as applicable, on such date, on the
terms and subject to the conditions hereof, in an amount equal to the amount of such Reimbursement
Obligation at such time. Subject to the limitations on funding set forth in paragraph (a) above
(and the other requirements and conditions herein), the Conduit Purchasers or Related Committed
Purchasers, as applicable, shall fund such deemed purchase request and deliver the proceeds thereof
directly to the Administrator to be immediately distributed (ratably) to the LC Bank and the
applicable LC Participants in satisfaction of the Seller’s Reimbursement Obligation pursuant to
Section 1.14, below, to the extent of the amounts permitted to be funded by the Conduit Purchasers
or Related Committed Purchasers, as applicable, at such time, hereunder.

     (c) The Seller may, upon at least 30 days’ written notice to the Administrator, terminate the
Purchase Facility in whole or, upon at least 30 days’ written notice to the Administrator, from
time to time, irrevocably reduce in part the unused portion of the Purchase Limit (but not below
the amount that would cause the Aggregate Capital plus the LC Participation Amount to exceed the
Purchase Limit or would cause the Group Capital of any Purchaser Group to exceed its Group
Commitment, in each case after giving effect to such reduction); provided, that each
partial reduction shall be in the amount of at least $5,000,000, or an integral multiple of
$1,000,000 in excess thereof, and that, unless terminated in whole, the Purchase Limit shall in no
event be reduced below $50,000,000. Each reduction in the Commitments hereunder shall be made
ratably among the Purchasers in accordance with their respective Commitment Percentages and their
respective Commitments. The Administrator shall promptly advise the Purchaser Agents of any notice
received by it pursuant to this Section 1.1(c); it being understood that (in addition to
and without limiting any other requirements for termination, prepayment and/or the funding of the
LC Collateral Account hereunder) no such termination or reduction shall be effective unless and
until (i) in the case of a termination, the amount on deposit in the LC Collateral Account is at
least equal to the then outstanding LC Participation Amount and (ii) in the case of a partial
reduction, the amount on deposit in the LC Collateral Account is at least equal to the positive
difference between the then outstanding LC Participation Amount and the Purchase Limit as so
reduced by such partial reduction.

     Section 1.2 Making Purchases; Initial Purchase; Initial Assignment and
Assumption.

     (a) Each Funded Purchase (but not reinvestment) of undivided percentage ownership interests
with regard to the Purchased Interest hereunder may be made on any day upon the Seller’s
irrevocable written notice in the form of Annex B (each, a “Purchase Notice”)
delivered to the Administrator and each Purchaser Agent in accordance with Section 5.2
(which notice must be received by the Administrator and each Purchaser Agent before 11:00 a.m., New
York City time) at least two Business Days before the requested Purchase Date, which notice shall
specify: (A) solely in the case of a Funded Purchase maintained by Capital (other than one made
pursuant to Section 1.14(b)), the amount requested to be paid to the Seller (such amount,
which

3

 

shall not be less than $300,000 (or such lesser amount as agreed to by the Administrator and
each Purchaser Agent) and shall be in integral multiples of $100,000 in excess thereof, being the
Capital relating to the undivided percentage ownership interest then being purchased with respect
to each Purchaser Group), (B) the date of such Funded Purchase (which shall be a Business Day), and
(C) the pro forma calculation of the Purchased Interest after giving effect to the increase in the
Aggregate Capital.

     (b) On the date of each Funded Purchase (but not reinvestment, issuance of a Letter of Credit
or a Funded Purchase pursuant to Section 1.2(e)) of undivided percentage ownership
interests with regard to the Purchased Interest hereunder, each applicable Conduit Purchaser or
Related Committed Purchaser, as the case may be, shall, upon satisfaction of the applicable
conditions set forth in Exhibit II, make available to the Seller in same day funds, at PNC,
account number 1019291244, ABA No. 043-000-096 (or such other account as may be designated in
writing by the Seller to the Administrator and each Purchaser Agent), an amount equal to the
portion of Capital relating to the undivided percentage ownership interest then being purchased by
such Purchaser.

     (c) Effective on the date of each Funded Purchase or other Purchase pursuant to this
Section 1.2 and each reinvestment pursuant to Section 1.4, the Seller hereby sells
and assigns to the Administrator for the benefit of the Purchasers (ratably, based on the sum of
the Capital plus the LC Participation Amount outstanding at such time for each such Purchaser’s
Capital) an undivided percentage ownership interest in: (i) each Pool Receivable then existing,
(ii) all Related Security with respect to such Pool Receivables, and (iii) all Collections with
respect to, and other proceeds of, such Pool Receivables and Related Security.

     (d) To secure all of the Seller’s obligations (monetary or otherwise) under this Agreement and
the other Transaction Documents to which it is a party, whether now or hereafter existing or
arising, due or to become due, direct or indirect, absolute or contingent, the Seller hereby grants
to the Administrator (for the benefit of the Purchasers and their assigns) a security interest in
all of the Seller’s right, title and interest (including any undivided interest of the Seller) in,
to and under all of the following, whether now or hereafter owned, existing or arising: (i) all
Pool Receivables, (ii) all Related Security with respect to such Pool Receivables, (iii) all
Collections with respect to such Pool Receivables, (iv) the Lock-Box Accounts and all amounts on
deposit therein, and all certificates and instruments, if any, from time to time evidencing such
Lock-Box Accounts and amounts on deposit therein, (v) all rights (but none of the obligations) of
the Seller under the Sale Agreements, (vi) all proceeds of, and all amounts received or receivable
under any or all of, the foregoing and (vii) all of its other property (collectively, the “Pool
Assets”). The Seller hereby authorizes the Administrator to file financing statements
describing the collateral covered thereby as “all of the debtor’s personal property or assets” or
words to that effect, notwithstanding that such wording may be broader in scope than the collateral
described in this Agreement. The Administrator (on behalf of the Purchasers and their assigns)
shall have, with respect to the Pool Assets, and in addition to all the other rights and remedies
available to the Administrator and the Purchasers, all the rights and remedies of a secured party
under any applicable UCC.

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     (e) Whenever the LC Bank issues a Letter of Credit pursuant to Section 1.12 hereof,
each LC Participant shall, automatically and without further action of any kind upon the effective
date of issuance of such Letter of Credit, have irrevocably been deemed to make a Funded Purchase
hereunder in the event that such Letter of Credit is subsequently drawn and such drawn amount shall
not have been reimbursed pursuant to Section 1.14 upon such draw in an amount equal to its
Pro Rata Share of such unreimbursed draw. All such Funded Purchases shall be made ratably by the
LC Participants according to their Pro Rata Shares and shall accrue Discount from the date of such
draw. In the event that any Letter of Credit expires or is surrendered without being drawn (in
whole or in part) then, in such event, the foregoing commitment to make Funded Purchases shall
expire with respect to such Letter of Credit and the LC Participation Amount shall automatically
reduce by the amount of the Letter of Credit which is no longer outstanding.

     (f) The Seller may, with the written consent of the Administrator and each Purchaser Agent
(and, in the case of a new related LC Participant, the LC Bank), which consent may be granted or
withheld in their sole discretion, add additional Persons as Purchasers (either to an existing
Purchaser Group or by creating new Purchaser Groups) or cause an existing Related Committed
Purchaser or related LC Participant to increase its Commitment in connection with a corresponding
increase in the Purchase Limit; provided, that the Commitment of any Related Committed
Purchaser or related LC Participant may only be increased with the prior written consent of such
Purchaser. Each new Conduit Purchaser, Related Committed Purchaser or related LC Participant (or
Purchaser Group) shall become a party hereto, by executing and delivering to the Administrator,
each Purchaser Agent and the Seller, an Assumption Agreement in the form of Annex F hereto
(which Assumption Agreement shall, in the case of any new Conduit Purchaser, Related Committed
Purchaser or related LC Participant, be executed by each Person in such new Purchaser’s Purchaser
Group).

     (g) Each Related Committed Purchaser’s and related LC Participant’s obligations hereunder
shall be several, such that the failure of any Related Committed Purchaser or related LC
Participant to make a payment in connection with any purchase hereunder, or drawing under a Letter
of Credit hereunder, as the case may be, shall not relieve any other Related Committed Purchaser or
related LC Participant of its obligation hereunder to make payment for any Funded Purchase or such
drawing. Further, in the event any Related Committed Purchaser or related LC Participant fails to
satisfy its obligation to make a purchase or payment with respect to such drawing as required
hereunder, upon receipt of notice of such failure from the Administrator (or any relevant Purchaser
Agent), subject to the limitations set forth herein, the non-defaulting Related Committed
Purchasers or related LC Participants in such defaulting Related Committed Purchaser’s or related
LC Participant’s Purchaser Group shall fund the defaulting Related Committed Purchaser’s or related
LC Participant’s Commitment Percentage of the related Purchase or drawing pro rata
in proportion to their relative Commitment Percentages (determined without regard to the Commitment
Percentage of the defaulting Related Committed Purchaser or related LC Participant; it
being understood that a defaulting Related Committed Purchaser’s or related LC
Participant’s Commitment Percentage of any Purchase or drawing shall be first funded by the Related
Committed Purchasers or related LC Participants in such defaulting Related Committed Purchaser’s or
related LC Participant’s Purchaser Group and thereafter if there are no other Related Committed
Purchasers or related LC Participants in such

5

 

Purchaser Group or if such other Related Committed Purchasers or related LC Participants are
also defaulting Related Committed Purchasers or related LC Participants, then such defaulting
Related Committed Purchaser’s or related LC Participant’s Commitment Percentage of such Purchase or
drawing shall be funded by each other Purchaser Group ratably and applied in accordance with this
paragraph (g)). Notwithstanding anything in this paragraph (g) to the contrary, no
Related Committed Purchaser or related LC Participant shall be required to make a Purchase or
payment with respect to such drawing pursuant to this paragraph for an amount which would cause the
aggregate Capital of such Related Committed Purchaser or the Pro Rata Share of the LC Participation
Amount of such related LC Participant (after giving effect to such Purchase or payment with respect
to such drawing) to exceed its Commitment.

     (h) Notwithstanding the otherwise applicable conditions precedent to Purchases hereunder, upon
the effectiveness of this Agreement in accordance with its terms, and immediately prior to giving
effect to Section 1.2(i) below, (x) Market Street, as a Conduit Purchaser, shall be deemed
to have outstanding Capital hereunder equal to its outstanding Capital under the Original Agreement
immediately prior to the effectiveness of this Agreement and (y) PNC, as an LC Participant, shall
be deemed to have a Pro Rata Share of the LC Participation Amount equal to 100% of the LC
Participation Amount under the Original Agreement immediately prior to the effectiveness of this
Agreement.

     (i) Immediately upon effectiveness of this Agreement in accordance with its terms and after
giving effect to Section 1.2(h) above:

               (i) Market Street, as a Related Committed Purchaser, hereby assigns and delegates to Credit
Agricole Corporate and Investment Bank New York Branch (“Credit Agricole”), as a Related
Committed Purchaser, $50,000,000 of Market Street’s existing $175,000,000 Commitment and the
related obligation hereunder to make purchases and reinvestments from time to time in accordance
with the terms hereof, and Credit Agricole, as a Related Committed Purchaser, hereby assumes such
$50,000,000 Commitment and such obligation hereunder to make purchases and reinvestments from time
to time in accordance with the terms hereof;

               (ii) Market Street, as a Conduit Purchaser and as a Related Committed Purchaser, hereby
assigns and delegates to Atlantic Asset Securitization LLC (“Atlantic”), as a Conduit
Purchaser, $15,971,429 of the outstanding Capital funded by Market Street through the date hereof,
and Atlantic, as a Conduit Purchaser, hereby accepts such $15,971,429 of outstanding Capital so
assigned; provided, that payment by Atlantic to Market Street of the amount payable by
Atlantic pursuant to the following paragraph shall be a condition precedent to the assignment
effected by this clause (ii); and

               (iii) PNC, as an LC Participant, hereby assigns and delegates to Credit Agricole, as an LC
Participant, $50,000,000 of PNC’s $175,000,000 Commitment, $18,282,796 of PNC’s Pro Rata Share of
the LC Participation Amount and the related obligation hereunder to make participation advances to
the LC Bank from time to time in accordance with the terms hereof, and Credit Agricole, as an LC
Participant, hereby assumes such $50,000,000 Commitment, such $18,282,796 Pro Rata Share of the LC
Participation Amount and such

6

 

obligation hereunder to make participation advances to the LC Bank from time to time in
accordance with the terms hereof.

     As consideration for the assignments and assumptions described in this Section 1.2(i), Atlantic shall pay to Market Street by wire transfer of immediately available funds to the
account specified by Market Street (or by its Purchaser Agent on its behalf) on the date hereof,
$15,971,429. After giving effect to the assignments and assumptions described in Section
1.2(i) and effective as of the Closing Date:

     (A) there shall be two Purchaser Groups as follows, one of which consists of Market
Street, as a Conduit Purchaser and as a Related Committed Purchaser, and PNC, as LC Bank and
as an LC Participant and as Purchaser Agent for such Purchaser Group, and the other of which
consists of Altantic Asset Securitization LLC, as a Conduit Purchaser, and Credit Agricole,
as a Related Committed Purchaser and as an LC Participant and as Purchaser Agent for such
Purchaser Group;

     (B) the Group Commitment of Market Street’s Purchaser Group shall be $125,000,000, and
the Group Commitment of Atlantic’s Purchaser Group shall be $50,000,000;

     (C) the Commitment of Market Street, as a Related Committed Purchaser shall be
$125,000,000, and the Commitment of Credit Agricole, as a Related Committed Purchaser shall
be $50,000,000;

     (D) the Commitment of PNC, as LC Bank and as an LC Participant, shall be $125,000,000
and the Commitment of Credit Agricole, as an LC Participant, shall be $50,000,000;

     (E) the Aggregate Capital shall be $55,900,000, the Capital funded by Market Street
shall be $39,928,571, and the Capital funded by Atlantic shall be $15,971,429;

     (F) the LC Participation Amount shall be $63,989,785, the Pro Rata Share of the LC
Participation Amount of PNC, as an LC Participant, shall be $45,706,989 and the Pro Rata
Share of the LC Participation Amount of Credit Agricole, as an LC Participant, shall be
$18,282,796;

     (G) Atlantic shall have the rights and obligations of a Conduit Purchaser hereunder,
and Credit Agricole shall have the rights and obligations of a Related Committed Purchaser
and LC Participant hereunder, to the extent of the Commitments so assigned to and assumed by
them, respectively;

     (H) Market Street Funding, LLC and PNC shall, to the extent of the assignment by them
pursuant to this Section 1.2(d), be released from the portion of their respective
Commitments and, in the case of PNC, Pro Rata Share of the LC Participation Amount, so
assigned.

7

 

     (j) The parties hereto acknowledge and agree that the assignments and assumptions effected by
Section 1.2(j) shall be deemed to satisfy the requirements of Section 1.2(f) and
Sections 5.3(c) and (e) hereof relating to the execution and delivery of an
Assumption Agreement and a Transfer Supplement and any other requirements hereunder and under the
Original Agreement for assignments of Capital and Commitments.

     Section 1.3 Purchased Interest Computation. The Purchased Interest shall be
initially computed on the Closing Date. Thereafter, until the Facility Termination Date,
such Purchased Interest shall be automatically recomputed (or deemed to be recomputed) on
each Business Day other than a Termination Day. From and after the occurrence of any
Termination Day, the Purchased Interest shall (until the event(s) giving rise to such
Termination Day are satisfied or are waived by the Administrator in accordance with
Section 2.2) be deemed to be 100%. The Purchased Interest shall become zero when (a)
the Aggregate Capital thereof and Aggregate Discount thereon shall have been paid in full,
(b) an amount equal to 100% of the LC Participation Amount shall have been deposited in the
LC Collateral Account, or all Letters of Credit shall have expired and (c) all the amounts
owed by the Seller and the Servicer hereunder to each Purchaser, the Administrator and any
other Indemnified Party or Affected Person are paid in full, and the Servicer shall have
received the accrued Servicing Fee thereon.

     Section 1.4 Settlement Procedures.

     (a) The collection of the Pool Receivables shall be administered by the Servicer in accordance
with this Agreement. The Seller shall provide to the Servicer on a timely basis all information
needed for such administration, including notice of the occurrence of any Termination Day and
current computations of the Purchased Interest.

     (b) The Servicer shall, on each day on which Collections of Pool Receivables are received (or
deemed received) by the Seller or the Servicer:

               (i) set aside and hold in trust (and shall, at the request of the Administrator, segregate in
a separate account approved by the Administrator) for the benefit the Purchasers, out of such
Collections, first, an amount equal to the Aggregate Discount accrued through such day for
each Portion of Capital and not previously set aside, second, an amount equal to the fees set forth
in each Fee Letter accrued and unpaid through such day, and third, to the extent funds are
available therefor, an amount equal to the aggregate of the Purchasers’ Share of the Servicing Fee
accrued through such day and not previously set aside,

               (ii) subject to Section 1.4(f), if such day is not a Termination Day, remit to the
Seller, ratably, on behalf of the Purchasers, the remainder of such Collections. Such remainder
shall, to the extent representing a return on the Aggregate Capital, be automatically reinvested,
ratably, according to each Purchaser’s Capital, in Pool Receivables and in the Related Security,
Collections and other proceeds with respect thereto; provided, that if the Purchased
Interest would exceed 100%, then the Servicer shall not remit such remainder to the Seller or
reinvest, but shall set aside and hold in trust for the Administrator (for the benefit of the
Purchasers) (and shall, at the request of the Administrator, segregate in a separate account

8

 

approved by the Administrator) a portion of such Collections that, together with the other
Collections set aside pursuant to this paragraph, shall equal the amount necessary to reduce the
Purchased Interest to 100% (determined as if such Collections set aside had been applied to reduce
the Aggregate Capital at such time), which amount shall be deposited ratably to each Purchaser
Agent’s account (for the benefit of the its related Purchasers) on the next Settlement Date in
accordance with Section 1.4(c); provided, further, that (x) in the case of
any Purchaser that is a Conduit Purchaser, if such Purchaser has provided notice (a “Declining
Notice”) to its Purchaser Agent and the Administrator that such Purchaser (a “Declining
Conduit Purchaser”) no longer wishes Collections with respect to any Portion of Capital funded
or maintained by such Purchaser to be reinvested pursuant to this clause (ii) or (y) in the
case of any Purchaser that has provided notice (an “Exiting Notice”) to its Purchaser Agent
and the Administrator of its refusal, following any request by the Seller to extend the then
Facility Termination Date, to extend its Commitment hereunder (an “Exiting Purchaser”),
then in either case set forth in clause (x) or (y) above, such Purchaser’s ratable
share (determined according to outstanding Capital) of Collections shall not be reinvested or
remitted to the Seller and shall instead be held in trust for the benefit of such Purchaser and
applied in accordance with clause (iii) below,

               (iii) if such day is a Termination Day (or any day following the provision of a Declining
Notice or an Exiting Notice), set aside, segregate and hold in trust for the benefit of the
Purchasers (and shall, at the request of the Administrator, segregate in a separate account
approved by the Administrator), the entire remainder of such Collections (or in the case of a
Declining Conduit Purchaser or an Exiting Purchaser, an amount equal to such Purchaser’s ratable
share of such Collections based on its Capital; provided, that solely for purposes of
determining such Purchaser’s ratable share of such Collections, such Purchaser’s Capital shall be
deemed to remain constant from the date of the provision of a Declining Notice or an Exiting
Notice, as the case may be, until the date such Purchaser’s Capital has been paid in full; it being
understood that if such day is also a Termination Day, such Declining Conduit Purchaser’s or
Exiting Purchaser’s Capital shall be recalculated taking into account amounts received by such
Purchasers in respect of this parenthetical and thereafter Collections shall be set aside for such
Purchaser ratably in respect of its Capital (as recalculated)); provided, further,
that if amounts are set aside and held in trust on any Termination Day of the type described in
clause (a) of the definition of “Termination Day” (or any day following the provision of a
Declining Notice or an Exiting Notice) and, thereafter, the conditions set forth in
Section 2 of Exhibit II are satisfied or waived by the Administrator and the
Majority Purchaser Agents (or, in the case of a Declining Notice or an Exiting Notice, such
Declining Notice or Exiting Notice, as the case may be, has been revoked by the related Declining
Conduit Purchaser or Exiting Purchaser, respectively, and written notice thereof has been provided
to the Administrator, the related Purchaser Agent and the Servicer), such previously set-aside
amounts shall, to the extent representing a return on the Aggregate Capital (or the Capital of the
Declining Conduit Purchaser or Exiting Purchaser, as the case may be) and ratably in accordance
with each Purchaser’s Capital, be reinvested in accordance with clause (ii) on the day of
such subsequent satisfaction or waiver of conditions or revocation of Declining Notice or Exiting
Notice, as the case may be, and

               (iv) release to the Seller (subject to Section 1.4(f)) for its own account any
Collections in excess of: (w) amounts required to be reinvested in accordance with clause

9

 

(ii) or the proviso to clause (iii) plus (x) the amounts that are required to
be set aside pursuant to clause (i), the provisos to clause (ii) and clause
(iii) plus (y) the Seller’s Share of the Servicing Fee accrued and unpaid through such day and
all reasonable and appropriate out-of-pocket costs and expenses of the Servicer for servicing,
collecting and administering the Pool Receivables plus (z) all other amounts then due and payable
by the Seller under this Agreement to the Purchasers, the Purchaser Agents, the Administrator, and
any other Indemnified Party or Affected Person.

     (c) The Servicer shall, in accordance with the priorities set forth in Section 1.4(d),
deposit into each Purchaser Agent’s account, on each Settlement Date, Collections held for such
Purchaser Agent (for the benefit of its related Purchasers) pursuant to clause (b)(i) or
(f) plus the amount of Collections then held for such Purchaser Agent (for the benefit of
its related Purchasers) pursuant to clauses (b)(ii) and (iii) of
Section 1.4; provided, that if Arch Sales or an Affiliate thereof is the Servicer,
such day is not a Termination Day and the Administrator has not notified Arch Sales (or such
Affiliate) that such right is revoked, Arch Sales (or such Affiliate) may retain the portion of the
Collections set aside pursuant to clause (b)(i) that represents the aggregate of each
Purchasers’ Share of the Servicing Fee. On or prior to the last day of each Settlement Period,
each Purchaser Agent will notify the Servicer by facsimile of the amount of Discount accrued with
respect to each Portion of Capital during such Settlement Period or portion thereof.

     (d) The Servicer shall distribute the amounts described (and at the times set forth) in
clause (c) above as follows:

               (i) if such distribution occurs on a day that is not a Termination Day and the Purchased
Interest does not exceed 100%, first to each Purchaser Agent ratably according to the
Discount accrued during such Yield Period (for the benefit of the relevant Purchasers within such
Purchaser Agent’s Purchaser Group) in payment in full of all accrued Discount with respect to each
Portion of Capital maintained by such Purchasers and all accrued Fees; it being understood that
each Purchaser Agent shall distribute such amounts to the Purchasers within such Purchaser Agent’s
Purchaser Group ratably according to Discount and Fees, respectively, and second, if the Servicer
has set aside amounts in respect of the Servicing Fee pursuant to clause (b)(i) and has not
retained such amounts pursuant to clause (c), to the Servicer (payable in arrears on each
Settlement Date) in payment in full of the aggregate of the Purchasers’ Share of accrued Servicing
Fees so set aside, and

               (ii) if such distribution occurs on a Termination Day or on a day when the Purchased Interest
exceeds 100%, first, if Arch Sales or an Affiliate thereof is not the Servicer, to the
Servicer in payment in full of the Purchasers’ Share of all accrued Servicing Fees, second,
to each Purchaser Agent ratably (based on the aggregate accrued and unpaid Discount and Fees
payable to all Purchasers at such time) (for the benefit of the relevant Purchasers in such
Purchaser Agent’s Purchaser Group) in payment in full of all accrued Discount with respect to each
Portion of Capital funded or maintained by the Purchasers within such Purchaser Agent’s Purchaser
Group and all accrued Fees, third, to each Purchaser Agent ratably according to the
aggregate of the Capital of each Purchaser in each such Purchaser Agent’s Purchaser Group (for the
benefit of the relevant Purchasers in such Purchaser Agent’s

10

 

Purchaser Group) in payment in full of each Purchaser’s Capital (or, if such day is not a
Termination Day, the amount necessary to reduce the Purchased Interest to 100%) (determined as if
such Collections had been applied to reduce the Aggregate Capital); it being understood that each
Purchaser Agent shall distribute the amounts described in the first, second and third clauses of
this Section 1.4(d)(ii) to the Purchasers within such Purchaser Agent’s Purchaser Group
ratably according to Discount, Fees and Capital, respectively, fourth, to the LC Collateral
Account for the benefit of the LC Bank and the LC Participants, the amount necessary to cash
collateralize the LC Participation Amount until the amount of cash collateral held in such LC
Collateral Account equals 100% of the LC Participation Amount (or, if such day is not a Termination
Day, the amount necessary to reduce the Purchased Interest to 100%) (determined as if such
Collections had been applied to reduce the aggregate outstanding amount of the LC Participation
Amount), fifth, if the Aggregate Capital and accrued Aggregate Discount with respect to
each Portion of Capital for all Purchaser Groups have been reduced to zero, and the aggregate of
the Purchasers’ Share of all accrued Servicing Fees payable to the Servicer (if other than Arch
Sales or an Affiliate thereof) have been paid in full, to each Purchaser Agent ratably, based on
the amounts payable to each Purchaser in such Purchaser Agent’s Purchaser Group (for the benefit of
the relevant Purchasers in such Purchaser Agent’s Purchaser Group), the Administrator and any other
Indemnified Party or Affected Person in payment in full of any other amounts owed thereto by the
Seller or the Servicer hereunder, and sixth, to the Servicer (if the Servicer is Arch Sales
or an Affiliate thereof) in payment in full of the aggregate of the Purchasers’ Share of all
accrued Servicing Fees.

After the Aggregate Capital, Aggregate Discount, fees payable pursuant to the Fee Letters and
Servicing Fees with respect to the Purchased Interest, and any other amounts payable by the Seller
and the Servicer to each Purchaser Group, the Administrator or any other Indemnified Party or
Affected Person hereunder, have been paid in full, and (on and after a Termination Day) after an
amount equal to 100% of the LC Participation Amount has been deposited in the LC Collateral
Account, all additional Collections with respect to the Purchased Interest shall be paid to the
Seller for its own account.

     (e) For the purposes of this Section 1.4:

               (i) if on any day the Outstanding Balance of any Pool Receivable is reduced or adjusted as a
result of any defective, rejected, returned, repossessed or foreclosed goods or services, or any
revision, cancellation, allowance, rebate, discount or other adjustment made by the Seller or any
Affiliate of the Seller or the Servicer or any Affiliate of the Servicer, or any setoff or dispute
between the Seller or any Affiliate of the Seller or the Servicer or any Affiliate of the Servicer
and an Obligor, the Seller shall be deemed to have received on such day a Collection of such Pool
Receivable in the amount of such reduction or adjustment and shall immediately pay any and all such
amounts in respect thereof to a Lock-Box Account for the benefit of the Purchasers and their
assigns and for application pursuant to Section 1.4;

               (ii) if on any day any of the representations or warranties in Sections l(j) or
3(a) of Exhibit III is not true with respect to any Pool Receivable, the Seller
shall be deemed to have received on such day a Collection of such Pool Receivable in full and shall
immediately pay any and all such amounts in respect thereof to a Lock-Box Account (or as

11

 

otherwise directed by the Administrator at such time) for the benefit of the Purchasers and
their assigns and for application pursuant to Section 1.4;

               (iii) except as provided in clause (i) or (ii), or as otherwise required by
applicable law or the relevant Contract, all Collections received from an Obligor of any Receivable
shall be applied to the Receivables of such Obligor in the order of the age of such Receivables,
starting with the oldest such Receivable, unless such Obligor designates in writing its payment for
application to specific Receivables; and

               (iv) if and to the extent the Administrator, any Purchaser Agent or any Purchaser shall be
required for any reason to pay over to an Obligor (or any trustee, receiver, custodian or similar
official in any Insolvency Proceeding) any amount received by it hereunder, such amount shall be
deemed not to have been so received by such Person but rather to have been retained by the Seller
and, accordingly, such Person shall have a claim against the Seller for such amount, payable when
and to the extent that any distribution from or on behalf of such Obligor is made in respect
thereof.

     (f) If at any time the Seller shall wish to cause the reduction of Aggregate Capital (but not
to commence the liquidation, or reduction to zero, of the entire Aggregate Capital), the Seller may
do so as follows:

               (i) the Seller shall give the Administrator, each Purchaser Agent and the Servicer written
notice in substantially the form of Annex C (each, a “Paydown Notice”) (A) at least
two Business Days prior to the date of such reduction for any reduction of the Aggregate Capital
less than or equal to $20,000,000 and (B) at least five Business Days prior to the date of such
reduction for any reduction of the Aggregate Capital greater than $20,000,000, in each case such
Paydown Notice shall include, among other things, the amount of such proposed reduction and the
proposed date on which such reduction will commence;

               (ii) (A) on the proposed date of the commencement of such reduction and on each day
thereafter, the Servicer shall cause Collections not to be reinvested until the amount thereof not
so reinvested shall equal the desired amount of reduction or (B) the Seller shall remit to each
Purchaser Agent’s account (for the benefit of the relevant Purchasers in such Purchaser Agent’s
Purchaser Group), in immediately available funds, an amount equal to the desired amount of such
reduction together with accrued and unpaid Aggregate Discount, and Aggregate Discount to accrue
through the next Settlement Date, with respect to such Aggregate Capital, ratably (based on such
Purchaser Agent’s Purchasers’ portion of the Aggregate Capital reduced thereby and portion of the
related Aggregate Discount; and

               (iii) the Servicer shall hold such Collections in trust for the benefit of the Purchasers
ratably (based on their respective Portions of Capital funded thereby) for payment to each such
Purchaser Agent (for the benefit of the relevant Purchasers in such Purchaser Agent’s Purchaser
Group) on the next Settlement Date immediately following the current Settlement Period or such
other date approved by the Administrator and each such Purchaser Agent, and the Aggregate Capital
(together with the Capital of any related Purchaser) shall be

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deemed reduced in the amount to be paid to each such Purchaser Agent (on behalf of its related
Purchasers) only when in fact finally so paid;

provided, that the amount of any such reduction shall be not less than $300,000 and shall
be an integral multiple of $100,000 in excess thereof.

     Section 1.5 Fees. The Seller shall pay to the Administrator, the Purchaser
Agents and the Purchasers certain fees in the amounts and on the dates set forth in one or
more fee letter agreements for each Purchaser Group, in each case entered into from time to
time by and among the Servicer, the Seller and the applicable Purchaser Agent and/or the
Administrator (as any such fee letter agreement may be amended, restated, supplemented or
otherwise modified from time to time, each, a “Fee Letter”).

     Section 1.6 Payments and Computations, Etc.

     (a) All amounts to be paid or deposited by the Seller or the Servicer hereunder or under any
other Transaction Document shall be made without reduction for offset or counterclaim and shall be
paid or deposited no later than noon (New York City time) on the day when due in same day funds to
each account designated by the Purchaser Agents (for the benefit of the Purchasers in such
Purchaser Agent’s Purchaser Group) and/or the Administration Account, as applicable. All amounts
received after noon (New York City time) will be deemed to have been received on the next Business
Day. Amounts payable hereunder to or for the benefit of the Administrator, the Purchasers or the
Purchaser Agents (or their related Affected Persons or Indemnified Parties) shall be distributed as
follows:

               (i) Any amounts to be distributed by or on behalf of the Administrator hereunder to any
Purchaser Agent, Purchaser or Purchaser Group shall be distributed to the account specified in
writing from time to time by the applicable Purchaser Agent to the Administrator, and the
Administrator shall have no obligation to distribute any such amounts unless and until it actually
receives payment of such amounts by the Seller or the Servicer, as applicable, in the
Administration Account. Except as expressly set forth herein (including, without limitation, as
set forth in Section 1.4(b)(iii) with respect to Collections held in trust for Declining
Conduit Purchasers and Exiting Purchasers), the Administrator shall distribute (or cause to be
distributed) such amounts to the Purchaser Agents for the Purchasers within their respective
Purchaser Groups ratably (x) in the case of such amounts paid in respect of Discount and Fees,
according to the Discount and Fees payable to the Purchasers and (y) in the case of such amounts
paid in respect of Capital (or in respect of any other obligations other than Discount and Fees),
according to the outstanding Capital funded by the Purchasers.

               (ii) Except as expressly set forth herein (including, without limitation, as set forth in
Section 1.4(b)(iii) with respect to Collections held in trust for Declining Conduit
Purchasers and Exiting Purchasers), each Purchaser Agent shall distribute the amounts paid to it
hereunder for the benefit of the Purchasers in its Purchaser Group to the Purchasers within its
Purchaser Group ratably (x) in the case of such amounts paid in respect of Discount and Fees,
according to the Discount and Fees payable to such Purchasers and (y) in the case of such

13

 

amounts paid in respect of Capital (or in respect of any other obligations other than Discount
and Fees), according to the outstanding Capital funded by such Purchasers.

     (b) The Seller or the Servicer, as the case may be, shall, to the extent permitted by law, pay
interest on any amount not paid or deposited by the Seller or the Servicer, as the case may be,
when due hereunder, at an interest rate equal to 2.0% per annum above the Base Rate, payable on
demand.

     (c) All
computations of interest under clause (b) and all computations of Discount,
fees and other amounts hereunder shall be made on the basis of a year of 360 (or 365 or 366, as
applicable, with respect to Discount or other amounts calculated by reference to the Base Rate)
days for the actual number of days elapsed. Whenever any payment or deposit to be made hereunder
shall be due on a day other than a Business Day, such payment or deposit shall be made on the next
Business Day and such extension of time shall be included in the computation of such payment or
deposit.

     Section 1.7 Increased Costs.

     (a) If the Administrator, any Purchaser Agent, any Purchaser, any Liquidity Provider or any
other Program Support Provider or any of their respective Affiliates (each an “Affected
Person”) reasonably determines that the existence of or compliance with: (i) any law, rule,
regulation or generally accepted accounting principle or any change therein or in the
interpretation or application thereof, or (ii) any request, guideline or directive from Financial
Accounting Standards Board (“FASB”) (including, without limitation, FAS 166/167), or any
central bank or other Governmental Authority (whether or not having the force of law), affects or
would affect the amount of capital required or expected to be maintained by such Affected Person,
and such Affected Person determines that the amount of such capital is increased by or based upon
the existence of any commitment to make purchases of (or otherwise to maintain the investment in)
Pool Receivables or issue any Letter of Credit related to this Agreement or any related liquidity
facility, credit enhancement facility and other commitments of the same type, then, upon demand by
such Affected Person (with a copy to the Administrator), the Seller shall promptly pay to the
Administrator, for the account of such Affected Person, from time to time as specified by such
Affected Person, additional amounts sufficient to compensate such Affected Person for increased
costs in the light of such circumstances, to the extent that such Affected Person reasonably
determines such increase in capital to be allocable to the existence of any of such commitments.
A certificate as to such amounts submitted to the Seller and the Administrator by such Affected
Person shall be conclusive and binding for all purposes, absent manifest error.

     (b) If, due to either: (i) the introduction of or any change in or in the interpretation of
any law, rule, regulation or generally accepted accounting principle or (ii) compliance with any
request, guideline or directive from FASB (including, without limitation, FAS 166/167) or any
central bank or other Governmental Authority (whether or not having the force of law), there shall
be any increase in the cost to any Affected Person of agreeing to purchase or purchasing, or
maintaining the ownership of, the Purchased Interest (or its portion thereof) in respect of which
Discount is computed by reference to the Euro-Rate, then, upon demand by such Affected

14

 

Person, the Seller shall promptly pay to such Affected Person, from time to time as specified
by such Affected Person, additional amounts sufficient to compensate such Affected Person for
increased costs. A certificate as to such amounts submitted to the Seller and the Administrator by
such Affected Person shall be conclusive and binding for all purposes, absent manifest error.

     (c) For the avoidance of doubt, and not in limitation of the foregoing, any increase in cost
and/or reduction in yield caused by regulatory capital allocation adjustments due to Statements of
Financial Accounting Standards Nos. 166 and 167 (or any future statements or interpretations issued
by FASB or any successor thereto) (collectively, “FAS 166/167”) shall be covered by this
Section 1.7.

     Section 1.8 Requirements of Law; Funding Losses.

     (I) If any Affected Person reasonably determines that the existence of or compliance with:
(a) any law, rule or regulation or any change therein or in the interpretation or application
thereof, or (b) any guideline, request or directive from any central bank or other Governmental
Authority (whether or not having the force of law), in either case, adopted, issued or occurring
after the date hereof:

               (i) does or shall subject such Affected Person to any tax of any kind whatsoever with respect
to this Agreement, any increase in the Purchased Interest (or its portion thereof) or in the amount
of Capital relating thereto, or does or shall change the basis of taxation of payments to such
Affected Person on account of Collections, Discount or any other amounts payable hereunder
(excluding taxes imposed on the overall income of such Affected Person, and franchise taxes imposed
on such Affected Person, by the jurisdiction under the laws of which such Affected Person is
organized or a political subdivision thereof), or

               (ii) does or shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, or deposits or other liabilities in or for the
account of, purchases, advances or loans by, or other credit extended by, or any other acquisition
of funds by, any office of such Affected Person that are not otherwise included in the
determination of the Euro-Rate or the Base Rate hereunder, or

               (iii) does or shall impose on such Affected Person any other condition,

and the result of any of the foregoing is: (A) to increase the cost to such Affected Person of
acting as Administrator, or of agreeing to purchase or purchasing or maintaining the ownership of
undivided percentage ownership interests with regard to, or issuing any Letter of Credit in respect
of, the Purchased Interest (or interests therein) or any Portion of Capital, or (B) to reduce any
amount receivable hereunder (whether directly or indirectly), then, in any such case, upon demand
by such Affected Person, the Seller shall promptly pay to such Affected Person additional amounts
necessary to compensate such Affected Person for such additional cost or reduced amount receivable.
All such amounts shall be payable as incurred. A certificate as to such amounts from such
Affected Person to the Seller and the Administrator shall be conclusive and binding for all
purposes, absent manifest error.

15

 

     (II) The Seller shall compensate each Affected Person, upon written request by such Person for
all losses, expenses and liabilities (including any interest paid by such Affected Person to
lenders of funds borrowed by it to fund or maintain any Portion of Capital hereunder at an interest
rate determined by reference to the Euro-Rate and any loss sustained by such Person in connection
with the re-employment of such funds), which such Affected Person may sustain with respect to
funding or maintaining such Portion of Capital at the Euro-Rate if, for any reason, funding or
maintaining such Portion of Capital at an interest rate determined by reference to the Euro-Rate
does not occur on a date specified therefor.

     Section 1.9 Inability to Determine Euro-Rate.

     (a) If the Administrator (or any Purchaser Agent) determines before the first day of any
Settlement Period (which determination shall be final and conclusive) that, by reason of
circumstances affecting the interbank eurodollar market generally, (i) deposits in dollars (in the
relevant amounts for such Settlement Period) are not being offered to banks in the interbank
eurodollar market for such Settlement Period, (ii) adequate means do not exist for ascertaining the
Euro-Rate for such Settlement Period or (iii) the Euro-Rate does not accurately reflect the cost to
any Purchaser (as determined by such Purchaser or such Purchaser’s Purchaser Agent) of maintaining
any Portion of Capital during such Settlement Period, then the Administrator shall give notice
thereof to the Seller. Thereafter, until the Administrator or such Purchaser Agent notifies the
Seller that the circumstances giving rise to such suspension no longer exist, (a) no Portion of
Capital shall be funded at the Alternate Rate determined by reference to the Euro-Rate and (b) the
Discount for any outstanding Portions of Capital then funded at the Alternate Rate determined by
reference to the Euro-Rate shall, on the last day of the then current Settlement Period, be
converted to the Alternate Rate determined by reference to the Base Rate.

     (b) If, on or before the first day of any Settlement Period, the Administrator shall have been
notified by any Affected Person that such Affected Person has determined (which determination shall
be final and conclusive) that, any enactment, promulgation or adoption of or any change in any
applicable law, rule or regulation, or any change in the interpretation or administration thereof
by a governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by such Affected Person with any guideline, request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for such Affected Person to fund or maintain
any Portion of Capital at the Alternate Rate and based upon the Euro-Rate, the Administrator shall
notify the Seller thereof. Upon receipt of such notice, until the Administrator notifies the
Seller that the circumstances giving rise to such determination no longer apply, (a) no Portion of
Capital shall be funded at the Alternate Rate determined by reference to the Euro-Rate and (b) the
Discount for any outstanding Portions of Capital then funded at the Alternate Rate determined by
reference to the Euro-Rate shall be converted to the Alternate Rate determined by reference to the
Base Rate either (i) on the last day of the then current Settlement Period if such Affected Person
may lawfully continue to maintain such Portion of Capital at the Alternate Rate determined by
reference to the Euro-Rate to such day, or (ii) immediately, if such Affected Person may not
lawfully continue to maintain such Portion of Capital at the Alternate Rate determined by reference
to the Euro-Rate to such day.

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     Section 1.10 Taxes.

          The Seller agrees that any and all payments by the Seller under this Agreement shall be made
free and clear of and without deduction for any and all current or future taxes, stamp or other
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding overall income or franchise taxes, in either case, imposed on the Person
receiving such payment by the Seller hereunder by the jurisdiction under whose laws such Person is
organized, operates or where its principal executive office is located or any political subdivision
thereof (all such nonexcluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities being hereinafter referred to as “Taxes”). If the Seller shall be required by
law to deduct any Taxes from or in respect of any sum payable hereunder to any Purchaser, Purchaser
Agent, Liquidity Provider, Program Support Provider or the Administrator, then the sum payable
shall be increased by the amount necessary to yield to such Person (after payment of all Taxes) an
amount equal to the sum it would have received had no such deductions been made. Whenever any
Taxes are payable by the Seller, the Seller agrees that, as promptly as possible thereafter, the
Seller shall send to the Administrator for its own account or for the account of any Purchaser,
Purchaser Agent, Liquidity Provider or other Program Support Provider, as the case may be, a
certified copy of an original official receipt showing payment thereof or such other evidence of
such payment as may be available to the Seller and acceptable to the taxing authorities having
jurisdiction over such Person. If the Seller fails to pay any Taxes when due to the appropriate
taxing authority or fails to remit to the Administrator the required receipts or other required
documentary evidence, the Seller shall indemnify the Administrator and/or any other Affected
Person, as applicable, for any incremental taxes, interest or penalties that may become payable by
such party as a result of any such failure.

          Section 1.11 Letters of Credit.

          Subject to the terms and conditions hereof, the LC Bank shall issue or cause the issuance of
Letters of Credit (“Letters of Credit”) on behalf of Seller (and, if applicable, on behalf
of, or for the account of, the Transferor in favor of such beneficiaries as the Transferor may
elect); provided, however, that the LC Bank will not be required to issue or cause
to be issued any Letters of Credit to the extent that after giving effect thereto the issuance of
such Letters of Credit would then cause (a) the sum of (i) the Aggregate Capital plus (ii) the LC
Participation Amount to exceed the Purchase Limit or (b) the LC Participation Amount to exceed the
aggregate of the Commitments of the LC Participants. All amounts drawn upon Letters of Credit
shall accrue Discount. Letters of Credit that have not been drawn upon shall not accrue Discount.

          Section 1.12 Issuance of Letters of Credit.

     (a) The Seller may request the LC Bank, upon two (2) Business Days’ prior written notice
submitted on or before 11:00 a.m., New York time, to issue a Letter of Credit by delivering to the
Administrator, the LC Bank’s form of Letter of Credit Application (the “Letter of Credit
Application”), substantially in the form of Annex E attached hereto and a Purchase
Notice, substantially in the form of Annex B hereto, in each case completed to the
satisfaction of the Administrator and the LC Bank; and, such other certificates, documents and
other papers and

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information as the Administrator may reasonably request. The Seller also has the right to
give instructions and make agreements with respect to any Letter of Credit Application and the
disposition of documents, and to agree with the Administrator upon any amendment, extension or
renewal of any Letter of Credit.

     (b) Each Letter of Credit shall, among other things, (i) provide for the payment of sight
drafts or other written demands for payment when presented for honor thereunder in accordance with
the terms thereof and when accompanied by the documents described therein and (ii) have an expiry
date not later than twelve (12) months after such Letter of Credit’s date of issuance, extension or
renewal, as the case may be, and in no event later than twelve (12) months after the Facility
Termination Date. For the avoidance of doubt, no Letter of Credit may be extended or renewed to a
date that is later than twelve (12) months after the Facility Termination Date. Each Letter of
Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits (2007
Revision), International Chamber of Commerce Publication No. 600, and any amendments or revisions
thereof adhered to by the LC Bank or the International Standby Practices (ISP98-International
Chamber of Commerce Publication Number 590), and any amendments or revisions thereof adhered to by
the LC Bank, as determined by the LC Bank.

     (c) The Administrator shall promptly notify the LC Bank and each LC Participant, at such
Person’s address for notices hereunder, of the request by the Seller for a Letter of Credit
hereunder, and shall provide the LC Bank and LC Participants with the Letter of Credit Application
and Purchase Notice delivered to the Administrator by the Seller pursuant to paragraph (a),
above, by the close of business on the day received or if received on a day that is not a Business
Day or on any Business Day after 11:00 a.m., New York time, on such day, on the next Business Day.

     Section 1.13 Requirements For Issuance of Letters of Credit.

     The Seller shall authorize and direct the LC Bank to name the Seller or the Transferor as the
“Applicant” or “Account Party” of each Letter of Credit.

     Section 1.14 Disbursements, Reimbursement.

     (a) Immediately upon the issuance of each Letter of Credit, each LC Participant shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the LC Bank a
participation in such Letter of Credit and each drawing thereunder in an amount equal to such LC
Participant’s Pro Rata Share of the face amount of such Letter of Credit and the amount of such
drawing, respectively.

     (b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, the LC Bank will promptly notify the Administrator and the Seller of such
request. Provided that it shall have received such notice, the Seller shall reimburse (such
obligation to reimburse the LC Bank shall sometimes be referred to as a “Reimbursement
Obligation”) the LC Bank prior to 12:00 p.m., New York time, on each date that an amount is
paid by the LC Bank under any Letter of Credit (each such date, a “Drawing Date”) in an
amount equal to the amount so paid by the LC Bank. In the event the Seller fails to reimburse the
LC

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Bank for the full amount of any drawing under any Letter of Credit by 12:00 p.m., New York
time, on the Drawing Date, the LC Bank will promptly notify each LC Participant thereof, and the
Seller shall be deemed to have requested that a Funded Purchase be made by the Purchasers in the
Purchaser Groups for the LC Bank and the LC Participants to be disbursed on the Drawing Date under
such Letter of Credit, subject to the amount of the unutilized portion of the Purchase Limit. Any
notice given by the LC Bank pursuant to this Section may be oral if immediately confirmed in
writing; provided that the lack of such an immediate written confirmation shall not affect
the conclusiveness or binding effect of such oral notice.

     (c) Each LC Participant shall upon any notice pursuant to subclause (b) above make available
to the LC Bank an amount in immediately available funds equal to its Pro Rata Share of the amount
of the drawing, whereupon the LC Participants shall each be deemed to have made a Funded Purchase
in that amount. If any LC Participant so notified fails to make available to the LC Bank the
amount of such LC Participant’s Pro Rata Share of such amount by no later than 2:00 p.m., New York
time on the Drawing Date, then interest shall accrue on such LC Participant’s obligation to make
such payment, from the Drawing Date to the date on which such LC Participant makes such payment (i)
at a rate per annum equal to the Federal Funds Rate during the first three days following the
Drawing Date and (ii) at a rate per annum equal to the rate applicable to Capital on and after the
fourth day following the Drawing Date. The LC Bank will promptly give notice of the occurrence of
the Drawing Date, but failure of the LC Bank to give any such notice on the Drawing Date or in
sufficient time to enable any LC Participant to effect such payment on such date shall not relieve
such LC Participant from its obligation under this subclause (c), provided that such LC
Participant shall not be obligated to pay interest as provided in subclauses (i) and
(ii) above until and commencing from the date of receipt of notice from the LC Bank or the
Administrator of a drawing. Each LC Participant’s Commitment shall continue until the last to
occur of any of the following events: (A) the LC Bank ceases to be obligated to issue or cause to
be issued Letters of Credit hereunder; (B) no Letter of Credit issued hereunder remains outstanding
and uncancelled or (C) all Persons (other than the Seller) have been fully reimbursed for all
payments made under or relating to Letters of Credit.

     Section 1.15 Repayment of Participation Advances.

     (a) Upon (and only upon) receipt by the LC Bank for its account of immediately available funds
from or for the account of the Seller (i) in reimbursement of any payment made by the LC Bank under
a Letter of Credit with respect to which any LC Participant has made a participation advance to the
LC Bank, or (ii) in payment of Discount on the Funded Purchases made or deemed to have been made in
connection with any such draw, the LC Bank will pay to each LC Participant, ratably (based on the
outstanding drawn amounts funded by each such LC Participant in respect of such Letter of Credit),
in the same funds as those received by the LC Bank; it being understood,
that the LC Bank shall retain a ratable amount of such funds that were not the subject of any
payment in respect of such Letter of Credit by any LC Participant.

     (b) If the LC Bank is required at any time to return to the Seller, or to a trustee, receiver,
liquidator, custodian, or any official in any insolvency proceeding, any portion of the payments
made by the Seller to the LC Bank pursuant to this Agreement in reimbursement of a payment made
under the Letter of Credit or interest or fee thereon, each LC Participant shall, on

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demand of the LC Bank, forthwith return to the LC Bank the amount of its Pro Rata Share of any
amounts so returned by the LC Bank plus interest at the Federal Funds Rate, from the date the
payment was first made to such LC Participant through, but not including, the date the payment is
returned by such LC Participant.

     Section 1.16 Documentation.

          The Seller agrees to be bound by the terms of the Letter of Credit Application and by the LC
Bank’s interpretations of any Letter of Credit issued for the Seller and by the LC Bank’s written
regulations and customary practices relating to letters of credit, though the LC Bank’s
interpretation of such regulations and practices may be different from the Seller’s own. In the
event of a conflict between the Letter of Credit Application and this Agreement, this Agreement
shall govern. It is understood and agreed that, except in the case of gross negligence or willful
misconduct by the LC Bank, the LC Bank shall not be liable for any error, negligence and/or
mistakes, whether of omission or commission, in following the Seller’s instructions or those
contained in the Letters of Credit or any modifications, amendments or supplements thereto.

     Section 1.17 Determination to Honor Drawing Request.

          In determining whether to honor any request for drawing under any Letter of Credit by the
beneficiary thereof, the LC Bank shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been delivered and that they
comply on their face with the requirements of such Letter of Credit and that any other drawing
condition appearing on the face of such Letter of Credit has been satisfied in the manner so set
forth.

     Section 1.18 Nature of Participation and Reimbursement Obligations.

          Each LC Participant’s obligation in accordance with this Agreement to make participation
advances as a result of a drawing under a Letter of Credit, and the obligations of the Seller to
reimburse the LC Bank upon a draw under a Letter of Credit, shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Article I under
all circumstances, including the following circumstances:

               (i) any set-off, counterclaim, recoupment, defense or other right which such LC Participant
may have against the LC Bank, the Administrator, the Purchaser Agents, the Purchasers, the Seller
or any other Person for any reason whatsoever;

               (ii) the failure of the Seller or any other Person to comply with the conditions set forth in
this Agreement for the making of a purchase, reinvestments, requests for Letters of Credit or
otherwise, it being acknowledged that such conditions are not required for the making of
participation advances hereunder;

               (iii) any lack of validity or enforceability of any Letter of Credit or any set-off,
counterclaim, recoupment, defense or other right which Seller or the Transferor on behalf

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of which a Letter of Credit has been issued may have against the LC Bank, the Administrator,
any Purchaser, any Purchaser Agent or any other Person for any reason whatsoever;

               (iv) any claim of breach of warranty that might be made by the Seller, the LC Bank or any LC
Participant against the beneficiary of a Letter of Credit, or the existence of any claim, set-off,
defense or other right which the Seller, the LC Bank or any LC Participant may have at any time
against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or the
proceeds thereof (or any Persons for whom any such transferee may be acting), the LC Bank, any LC
Participant, the Administrator, any Purchaser or any Purchaser Agent or any other Person, whether
in connection with this Agreement, the transactions contemplated herein or any unrelated
transaction (including any underlying transaction between the Seller or any Subsidiaries of the
Seller or any Affiliates of the Seller and the beneficiary for which any Letter of Credit was
procured);

               (v) the lack of power or authority of any signer of, or lack of validity, sufficiency,
accuracy, enforceability or genuineness of, any draft, demand, instrument, certificate or other
document presented under any Letter of Credit, or any such draft, demand, instrument, certificate
or other document proving to be forged, fraudulent, invalid, defective or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect, even if the
Administrator or the LC Bank has been notified thereof;

               (vi) payment by the LC Bank under any Letter of Credit against presentation of a demand, draft
or certificate or other document which does not comply with the terms of such Letter of Credit
other than as a result of the gross negligence or willful misconduct of the LC Bank;

               (vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit,
or any other Person having a role in any transaction or obligation relating to a Letter of Credit,
or the existence, nature, quality, quantity, condition, value or other characteristic of any
property or services relating to a Letter of Credit;

               (viii) any failure by the LC Bank or any of the LC Bank’s Affiliates to issue any Letter of
Credit in the form requested by the Seller, unless the LC Bank has received written notice from the
Seller of such failure within three Business Days after the LC Bank shall have furnished the Seller
a copy of such Letter of Credit and such error is material and no drawing has been made thereon
prior to receipt of such notice;

               (ix) any Material Adverse Effect on the Seller, the Transferor, any Originator or any
Affiliates thereof;

               (x) any breach of this Agreement or any Transaction Document by any party thereto;

               (xi) the occurrence or continuance of an Insolvency Proceeding with respect to the Seller, the
Transferor, any Originator or any Affiliate thereof;

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               (xii) the fact that a Termination Event or an Unmatured Termination Event shall have occurred
and be continuing;

               (xiii) the fact that this Agreement or the obligations of Seller or Servicer hereunder shall
have been terminated; and

               (xiv) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing.

          Section 1.19 Indemnity.

          In addition to other amounts payable hereunder, the Seller hereby agrees to protect,
indemnify, pay and save harmless the Administrator, the LC Bank, each LC Participant and any of the
LC Bank’s Affiliates that have issued a Letter of Credit from and against any and all claims,
demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and
expenses (including Attorney Costs) which the Administrator, the LC Bank, any LC Participant or any
of their respective Affiliates may incur or be subject to as a consequence, direct or indirect, of
the issuance of any Letter of Credit, except to the extent resulting from (a) the gross negligence
or willful misconduct of the party to be indemnified as determined by a final judgment of a court
of competent jurisdiction or (b) the wrongful dishonor by the LC Bank of a proper demand for
payment made under any Letter of Credit, except if such dishonor resulted from any act or omission,
whether rightful or wrongful, of any present or future de jure or de facto Governmental Authority
(all such acts or omissions herein called “Governmental Acts”).

          Section 1.20 Liability for Acts and Omissions.

          As between the Seller, on the one hand, and the Administrator, the LC Bank, the LC
Participants, the Purchaser Agents and the Purchasers, on the other, the Seller assumes all risks
of the acts and omissions of, or misuse of any Letter of Credit by, the respective beneficiaries of
such Letter of Credit. In furtherance and not in limitation of the respective foregoing, none of
the Administrator, the LC Bank, the LC Participants, the Purchaser Agents or the Purchasers shall
be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of
any document submitted by any party in connection with the application for an issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged (even if the LC Bank or any LC Participant shall
have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective
for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other
party to which such Letter of Credit may be transferred, to comply fully with any conditions
required in order to draw upon such Letter of Credit or any other claim of the Seller against any
beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among the
Seller and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical

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terms; (vi) any loss or delay in the transmission or otherwise of any document required in
order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under
such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the
Administrator, the LC Bank, the LC Participants, the Purchaser Agents and the Purchasers, including
any Governmental Acts, and none of the above shall affect or impair, or prevent the vesting of, any
of the LC Bank’s rights or powers hereunder. Nothing in the preceding sentence shall relieve the LC
Bank from liability for its gross negligence or willful misconduct, as determined by a final
non-appealable judgment of a court of competent jurisdiction, in connection with actions or
omissions described in such clauses (i) through (viii) of such sentence. In no event shall the
Administrator, the LC Bank, the LC Participants, the Purchaser Agents or the Purchasers or their
respective Affiliates, be liable to the Seller or any other Person for any indirect, consequential,
incidental, punitive, exemplary or special damages or expenses (including without limitation
attorneys’ fees), or for any damages resulting from any change in the value of any property
relating to a Letter of Credit.

          Without limiting the generality of the foregoing, the Administrator, the LC Bank, the LC
Participants, the Purchaser Agents and the Purchasers and each of its Affiliates (i) may rely on
any written communication believed in good faith by such Person to have been authorized or given by
or on behalf of the applicant for a Letter of Credit; (ii) may honor any presentation if the
documents presented appear on their face to comply with the terms and conditions of the relevant
Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit,
whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful
dishonor, or otherwise, and shall be entitled to reimbursement to the same extent as if such
presentation had initially been honored, together with any interest paid by the LC Bank or its
Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement advising
negotiation or payment, upon receipt of such statement (even if such statement indicates that a
draft or other document is being delivered separately), and shall not be liable for any failure of
any such draft or other document to arrive, or to conform in any way with the relevant Letter of
Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the
laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim
or demand made on the Administrator, the LC Bank, the LC Participants, the Purchaser Agents or the
Purchasers or their respective Affiliates, in any way related to any order issued at the
applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or
any similar document (each an “Order”) and may honor any drawing in connection with any
Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other
documents presented in connection with such Letter of Credit fail to conform in any way with such
Letter of Credit.

          In furtherance and extension and not in limitation of the specific provisions set forth above,
any action taken or omitted by the LC Bank under or in connection with any Letter of Credit issued
by it or any documents and certificates delivered thereunder, if taken or omitted in good faith and
without gross negligence or willful misconduct, as determined by a final non-appealable judgment of
a court of competent jurisdiction, shall not put the LC Bank under any resulting liability to the
Seller, any LC Participant or any other Person.

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ARTICLE II.

REPRESENTATIONS AND WARRANTIES; COVENANTS;

TERMINATION EVENTS

          Section 2.1 Representations and Warranties; Covenants.

          Each of the Seller and the Servicer hereby makes the representations and warranties, and
hereby agrees to perform and observe the covenants, applicable to it as set forth in Exhibits
III and IV, respectively.

          Section 2.2 Termination Events.

          If any of the Termination Events set forth in Exhibit V shall occur, the Administrator
may (with the consent of the Majority Purchaser Agents) and shall (at the direction of the Majority
Purchaser Agents), by notice to the Seller, declare the Facility Termination Date to have occurred
(in which case the Facility Termination Date shall be deemed to have occurred); provided,
that automatically upon the occurrence of any event (without any requirement for the passage of
time or the giving of notice) described in paragraph (f) of Exhibit V, the Facility
Termination Date shall occur. Upon any such declaration, occurrence or deemed occurrence of the
Facility Termination Date, the Purchasers, the Purchaser Agents and the Administrator shall have,
in addition to the rights and remedies that they may have under this Agreement, all other rights
and remedies provided after default under the UCC and under other applicable law, which rights and
remedies shall be cumulative.

ARTICLE III.

INDEMNIFICATION

          Section 3.1 Indemnities by the Seller.

          Without limiting any other rights that the Administrator, the Purchasers, the Purchaser
Agents, the Liquidity Providers, any Program Support Provider or any of their respective
Affiliates, employees, officers, directors, agents, counsel, successors, transferees or permitted
assigns (each, an “Indemnified Party”) may have hereunder or under applicable law, the
Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims,
damages, expenses, costs, losses, liabilities, penalties and Taxes (including Attorney Costs) (all
of the foregoing being collectively referred to as “Indemnified Amounts”) at any time
imposed on or incurred by any Indemnified Party arising out of or otherwise relating to any
Transaction Document, the transactions contemplated thereby or the acquisition of any portion of
the Purchased Interest, or any action taken or omitted by any of the Indemnified Parties (including
any action taken by the Administrator as attorney-in-fact for the Seller, the Transferor or any
Originator hereunder or under any other Transaction Document) whether arising by reason of the acts
to be performed by the Seller hereunder or otherwise, excluding only Indemnified Amounts to the
extent: (a) a final judgment of a court of competent jurisdiction holds that such Indemnified
Amounts resulted from gross negligence or willful misconduct of the Indemnified Party seeking
indemnification, (b) due to the credit risk of the Obligor and for which reimbursement would
constitute recourse to the Transferor, any Originator, the Seller or

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the Servicer for uncollectible Receivables or (c) such Indemnified Amounts include Taxes
imposed or based on, or measured by, the gross or net income or receipts of such Indemnified Party
by the jurisdiction under the laws of which such Indemnified Party is organized, operates or where
its principal executive office is located (or any political subdivision thereof); provided,
however, that nothing contained in this sentence shall limit the liability of the Seller or
the Servicer or limit the recourse of any Indemnified Party to the Seller or the Servicer for any
amounts otherwise specifically provided to be paid by the Seller or the Servicer hereunder.
Without limiting the foregoing indemnification, and subject to the exclusions in the preceding
sentence, the Seller shall indemnify each Indemnified Party for Indemnified Amounts (including
losses in respect of uncollectible Receivables regardless for purposes of these specific matters
whether reimbursement therefor would constitute recourse to the Seller or the Servicer, except as
set forth in subclause (viii) below) relating to or resulting from any of the following:

               (i) the failure of any Receivable included in the calculation of the Net Receivables Pool
Balance as an Eligible Receivable to be an Eligible Receivable, the failure of any information
contained in any Information Package to be true and correct, or the failure of any other
information provided to any Purchaser or the Administrator with respect to the Receivables or this
Agreement to be true and correct,

               (ii) the failure of any representation, warranty or statement made or deemed made by the
Seller (or any employee, officer or agent of the Seller) under or in connection with this
Agreement, any other Transaction Document, any Information Package or any other information or
report delivered by or on behalf of the Seller pursuant hereto to have been true and correct as of
the date made or deemed made when made,

               (iii) the failure by the Seller to comply with any applicable law, rule or regulation related
to any Receivable or the related Contract or the non-conformity of any Receivable or the related
Contract with any such applicable law, rule or regulation,

               (iv) the failure of the Seller to vest and maintain vested in the Administrator (on behalf of
the Purchasers) a first priority perfected ownership interest or security interest in the Purchased
Interest and the property conveyed hereunder, free and clear of any Adverse Claim,

               (v) any commingling of funds to which the Administrator, any Purchaser Agent or any Purchaser
is entitled hereunder with any other funds;

               (vi) the failure to have filed, in accordance with the requirements of this Agreement or any
other Transaction Document, financing statements (including as-extracted collateral filings) or
other similar instruments or documents under the UCC of each applicable jurisdiction or other
applicable laws with respect to any Receivables in, or purporting to be in, the Receivables Pool
and the other Pool Assets, whether at the time of any Purchase or at any subsequent time;

               (vii) any failure of a Lock-Box Bank to comply with the terms of the applicable Lock-Box
Agreement;

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               (viii) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable (including without limitation a defense
based on such Receivable or the related Contract not being a legal, valid and binding obligation of
such Obligor enforceable against it in accordance with its terms), or any other claim resulting
from the sale or lease of goods or the rendering of services related to such Receivable or the
furnishing or failure to furnish any such goods or services or other similar claim or defense not
arising from the financial inability of any Obligor to pay undisputed indebtedness;

               (ix) any failure of the Seller to perform its duties or obligations in accordance with the
provisions of this Agreement or any other Transaction Document to which it is a party;

               (x) any action taken by the Administrator as attorney-in-fact for the Seller, the Transferor
or any Originator pursuant to this Agreement or any other Transaction Document;

               (xi) any environmental liability claim or products liability claim or other claim,
investigation, litigation or proceeding, arising out of or in connection with merchandise,
insurance or services that are the subject of any Contract;

               (xii) the use of proceeds of purchases or reinvestments or the issuance of any Letter of
Credit; or

               (xiii) any reduction in Capital as a result of the distribution of Collections pursuant to
Section 1.4(d), if all or a portion of such distributions shall thereafter be rescinded or
otherwise must be returned for any reason.

          Section 3.2 Indemnities by the Servicer.

          Without limiting any other rights that any Indemnified Party may have hereunder or under
applicable law, the Servicer hereby agrees to indemnify each Indemnified Party from and against any
and all Indemnified Amounts arising out of or resulting from (whether directly or indirectly):
(a) the failure of any information contained in an Information Package to be true and correct, or
the failure of any other information provided to any such Indemnified Party by, or on behalf of,
the Servicer to be true and correct, (b) the failure of any representation, warranty or statement
made or deemed made by the Servicer (or any of its officers) under or in connection with this
Agreement or any other Transaction Document to which it is a party to have been true and correct as
of the date made or deemed made when made, (c) the failure by the Servicer to comply with any
applicable law, rule or regulation with respect to any Pool Receivable or the related Contract,
(d) any dispute, claim, offset or defense of the Obligor (other than as a result of discharge in
bankruptcy with respect to such Obligor) to the payment of any Receivable in, or purporting to be
in, the Receivables Pool resulting from or related to the collection activities with respect to
such Receivable, or (e) any failure of the Servicer to perform its duties or obligations in
accordance with the provisions hereof or any other Transaction Document to which it is a party.

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ARTICLE IV.

ADMINISTRATION AND COLLECTIONS

     Section 4.1 Appointment of the Servicer.

     (a) The servicing, administering and collection of the Pool Receivables shall be conducted by
the Person so designated from time to time as the Servicer in accordance with this Section. Until
the Administrator gives notice to Arch Sales (in accordance with this Section) of the designation
of a new Servicer, Arch Sales is hereby designated as, and hereby agrees to perform the duties and
obligations of, the Servicer pursuant to the terms hereof. Upon the occurrence of a Termination
Event, the Administrator may (with the consent of the Majority Purchaser Agents) and shall (at the
direction of the Majority Purchaser Agents) designate as Servicer any Person (including itself) to
succeed Arch Sales or any successor Servicer, on the condition in each case that any such Person so
designated shall agree to perform the duties and obligations of the Servicer pursuant to the terms
hereof.

     (b) Upon the designation of a successor Servicer as set forth in clause (a), Arch
Sales agrees that it will terminate its activities as Servicer hereunder in a manner that the
Administrator determines will facilitate the transition of the performance of such activities to
the new Servicer, and Arch Sales shall cooperate with and assist such new Servicer. Such
cooperation shall include access to and transfer of related records (including all Contracts) and
use by the new Servicer of all licenses, hardware or software necessary or desirable to collect the
Pool Receivables and the Related Security.

     (c) Arch Sales acknowledges that, in making their decision to execute and deliver this
Agreement, the Administrator, the Purchaser Agents and the Purchasers have relied on Arch Sales’
agreement to act as Servicer hereunder. Accordingly, Arch Sales agrees that it will not
voluntarily resign as Servicer without the prior written consent of the Administrator and the
Purchasers.

     (d) The Servicer may delegate its duties and obligations hereunder to any subservicer (each a
“Sub-Servicer”); provided, that, in each such delegation: (i) each such
Sub-Servicer shall agree in writing to perform the delegated duties and obligations of the Servicer
pursuant to the terms hereof, (ii) the Servicer shall remain liable for the performance of the
duties and obligations so delegated, (iii) the Seller, the Administrator, the Purchaser Agents and
the Purchasers shall have the right to look solely to the Servicer for performance, and (iv) the
terms of any agreement with any Sub-Servicer shall provide that the Administrator may terminate
such agreement upon the termination of the Servicer hereunder by giving notice of its desire to
terminate such agreement to the Servicer (and the Servicer shall provide appropriate notice to each
such Sub-Servicer); provided, however, that if any such delegation is to any Person
other than an Originator or the Transferor, the Administrator and the Majority Purchaser Agents
shall have consented in writing in advance to such delegation.

     Section 4.2 Duties of the Servicer.

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     (a) The Servicer shall take or cause to be taken all such action as may be necessary or
advisable to administer and collect each Pool Receivable from time to time, all in accordance with
this Agreement and all applicable laws, rules and regulations, with reasonable care and diligence,
and in accordance with the Credit and Collection Policies. The Servicer shall set aside, for the
accounts of the Seller and the Purchasers, the amount of the Collections to which each is entitled
in accordance with Article I. The Servicer may, in accordance with the applicable Credit
and Collection Policy, take such action, including modifications, waivers or restructurings of Pool
Receivables and the related Contracts as the Servicer may determine to be appropriate to maximize
Collections thereof or reflect adjustments permitted under the Credit and Collection Policy or
required under applicable laws, rules or regulations or the applicable Contract; provided,
however, that for the purposes of this Agreement (i) such action shall not change the
number of days such Pool Receivable has remained unpaid from the date of the original due date
related to such Pool Receivable, (ii) such action shall not alter the status of such Pool
Receivable as a Delinquent Receivable or a Defaulted Receivable under this Agreement or limit the
rights of any of the Purchasers, Purchaser Agents or the Administrator under this Agreement or any
other Transaction Document and (iii) if a Termination Event has occurred and is continuing and Arch
Sales or an Affiliate thereof is serving as the Servicer, Arch Sales or such Affiliate may take
such action only upon the prior approval of the Administrator. The Seller shall deliver to the
Servicer and the Servicer shall hold for the benefit of the Seller and the Administrator
(individually and for the benefit of the Purchasers), in accordance with their respective
interests, all records and documents (including computer tapes or disks) with respect to each Pool
Receivable. Notwithstanding anything to the contrary contained herein, if a Termination Event has
occurred and is continuing, the Administrator may direct the Servicer (whether the Servicer is Arch
Sales or any other Person) to commence or settle any legal action to enforce collection of any Pool
Receivable or to foreclose upon or repossess any Related Security.

     (b) The Servicer shall, as soon as practicable following actual receipt of collected funds,
turn over to the Seller the collections of any indebtedness that is not a Pool Receivable, less, if
Arch Sales or an Affiliate thereof is not the Servicer, all reasonable and appropriate
out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering such
collections. The Servicer, if other than Arch Sales or an Affiliate thereof, shall, as soon as
practicable upon demand, deliver to the Seller all records in its possession that evidence or
relate to any indebtedness that is not a Pool Receivable, and copies of records in its possession
that evidence or relate to any indebtedness that is a Pool Receivable.

     (c) The Servicer’s obligations hereunder shall terminate on the later of: (i) the Facility
Termination Date, (ii) the date on which no Capital of or Discount in respect of the Purchased
Interest shall be outstanding, (iii) the date the LC Participation Amount is cash collateralized in
full and (iv) the date on which all amounts required to be paid to the Purchasers, the Purchaser
Agents, the Administrator and any other Indemnified Party or Affected Person hereunder shall have
been paid in full. After such termination, if Arch Sales or an Affiliate thereof was not the
Servicer on the date of such termination, the Servicer shall promptly deliver to the Seller all
books, records and related materials that the Seller previously provided to the Servicer, or that
have been obtained by the Servicer, in connection with this Agreement.

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          Section 4.3 Lock-Box Account Arrangements.

          Prior to the Closing Date, the Seller shall have entered into Lock-Box Agreements with all of
the Lock-Box Banks and delivered original counterparts thereof to the Administrator. Upon the
occurrence of a Termination Event, the Administrator may (and shall, at the direction of the
Majority Purchaser Agents) at any time thereafter give notice to each Lock-Box Bank that the
Administrator is exercising its rights under the Lock-Box Agreements to do any or all of the
following: (a) to have the exclusive ownership and control of the Lock-Box Accounts transferred to
the Administrator (for the benefit of the Purchasers) and to exercise exclusive dominion and
control over the funds deposited therein, (b) to have the proceeds that are sent to the respective
Lock-Box Accounts redirected pursuant to the Administrator’s instructions rather than deposited in
the applicable Lock-Box Account, and (c) to take any or all other actions permitted under the
applicable Lock-Box Agreement. The Seller hereby agrees that if the Administrator at any time
takes any action set forth in the preceding sentence, the Administrator shall have exclusive
control (for the benefit of the Purchasers) of the proceeds (including Collections) of all Pool
Receivables and the Seller hereby further agrees to take any other action that the Administrator
may reasonably request to transfer such control. Any proceeds of Pool Receivables received by the
Seller or the Servicer thereafter shall be sent immediately to, or as otherwise instructed by, the
Administrator. The parties hereto hereby acknowledge that if at any time the Administrator takes
control of any Lock-Box Account, the Administrator shall not have any rights to the funds therein
in excess of the unpaid amounts due to the Administrator, the Purchaser Agents, the Purchasers, any
Indemnified Party, any Affected Person or any other Person hereunder or under any other Transaction
Document, and the Administrator shall distribute or cause to be distributed such funds in
accordance with Section 4.2(b) and Article I (in each case as if such funds were
held by the Servicer thereunder).

          Section 4.4 Enforcement Rights.

     (a) At any time following the occurrence and during the continuation of a Termination Event:

               (i) the Administrator may direct the Obligors that payment of all amounts payable under any
Pool Receivable is to be made directly to the Administrator or its designee,

               (ii) the Administrator may instruct the Seller or the Servicer to give notice of the
Purchasers’ interest in Pool Receivables to each Obligor, which notice shall direct that payments
be made directly to the Administrator or its designee (on behalf of the Purchasers), and the Seller
or the Servicer, as the case may be, shall give such notice at the expense of the Seller or the
Servicer, as the case may be; provided, that if the Seller or the Servicer, as the case may
be, fails to so notify each Obligor, the Administrator (at the Seller’s or the Servicer’s, as the
case may be, expense) may so notify the Obligors, and

               (iii) the Administrator may request the Servicer to, and upon such request the Servicer shall:
(A) assemble all of the records necessary or desirable to collect the Pool Receivables and the
Related Security, and transfer or license to a successor Servicer the use

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of all software necessary or desirable to collect the Pool Receivables and the Related
Security, and make the same available to the Administrator or its designee (for the benefit of the
Purchasers) at a place selected by the Administrator, and (B) segregate all cash, checks and other
instruments received by it from time to time constituting Collections in a manner acceptable to the
Administrator and, promptly upon receipt, remit all such cash, checks and instruments, duly
endorsed or with duly executed instruments of transfer, to the Administrator or its designee.

     (b) The Seller hereby authorizes the Administrator (on behalf of each Purchaser Group), and
irrevocably appoints the Administrator as its attorney-in-fact with full power of substitution and
with full authority in the place and stead of the Seller, which appointment is coupled with an
interest, to take any and all steps in the name of the Seller and on behalf of the Seller necessary
or desirable, in the determination of the Administrator, following the occurrence and during the
continuation of a Termination Event, to collect any and all amounts or portions thereof due under
any and all Pool Assets, including endorsing the name of the Seller on checks and other instruments
representing Collections and enforcing such Pool Assets. Notwithstanding anything to the contrary
contained in this subsection, none of the powers conferred upon such attorney-in-fact pursuant to
the preceding sentence shall subject such attorney-in-fact to any liability if any action taken by
it shall prove to be inadequate or invalid, nor shall they confer any obligations upon such
attorney-in-fact in any manner whatsoever.

     Section 4.5 Responsibilities of the Seller.

     (a) Anything herein to the contrary notwithstanding, the Seller shall: (i) perform all of its
obligations, if any, under the Contracts related to the Pool Receivables to the same extent as if
interests in such Pool Receivables had not been transferred hereunder, and the exercise by the
Administrator, any Purchaser Agent or any Purchaser of their respective rights hereunder shall not
relieve the Seller from such obligations, and (ii) pay when due any taxes, including any sales
taxes payable in connection with the Pool Receivables and their creation and satisfaction. None of
the Administrator, the Purchaser Agents and the Purchasers shall have any obligation or liability
with respect to any Pool Asset, nor shall any of them be obligated to perform any of the
obligations of the Seller, the Transferor, ACI or any Originator thereunder.

     (b) Arch Sales hereby irrevocably agrees that if at any time it shall cease to be the Servicer
hereunder, it shall act (if the then-current Servicer so requests) as the data-processing agent of
the Servicer and, in such capacity, Arch Sales shall conduct the data-processing functions of the
administration of the Receivables and the Collections thereon in substantially the same way that
Arch Sales conducted such data-processing functions while it acted as the Servicer.

     Section 4.6 Servicing Fee.

     (a) Subject to clause (b), the Servicer shall be paid a fee (the “Servicing
Fee”) equal to 1.00% per annum (the “Servicing Fee Rate”) of the daily average
aggregate Outstanding Balance of the Pool Receivables. The Purchasers’ Share of such fee shall be
paid through the distributions contemplated by Section 1.4(d), and the Seller’s Share of
such fee shall be paid by the Seller on each Settlement Date.

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     (b) If the Servicer ceases to be Arch Sales or an Affiliate thereof, the servicing fee shall
be the greater of: (i) the amount calculated pursuant to clause (a), and (ii) an
alternative amount specified by the successor Servicer not to exceed 110% of the aggregate
reasonable costs and expenses incurred by such successor Servicer in connection with the
performance of its obligations as Servicer.

     Section 4.7 Authorization and Action of the Administrator and Purchaser Agents.

     (a) Each Purchaser and Purchaser Agent hereby accepts the appointment of and irrevocably
authorizes the Administrator to take such actions as agent on its behalf and to exercise such
powers as are delegated to the Administrator hereby and to exercise such other powers as are
reasonably incidental thereto. The Administrator shall hold, in its name, for the benefit of each
Purchaser, ratably, the Purchased Interest. The Administrator shall not have any duties other than
those expressly set forth herein or any fiduciary relationship with any Purchaser or Purchaser
Agent, and no implied obligations or liabilities shall be read into this Agreement, or otherwise
exist, against the Administrator. The Administrator does not assume, nor shall it be deemed to
have assumed, any obligation to, or relationship of trust or agency with, the Seller or Servicer.
Notwithstanding any provision of this Agreement or any other Transaction Document to the contrary,
in no event shall the Administrator ever be required to take any action which exposes the
Administrator to personal liability or which is contrary to the provisions of this Agreement, any
other Transaction Document or applicable law. The appointment and authority of the Administrator
hereunder shall terminate on the later of (i) the Facility Termination Date, (ii) the date on which
no Capital of or Discount in respect of the Purchased Interest shall be outstanding, (iii) the date
on which 100% of the LC Participation Amount has been deposited in the LC Collateral Account and
(iv) the date on which all amounts required to be paid by the Seller under this Agreement to any
Purchaser, the Administrator and any other Indemnified Party or Affected Person shall have been
paid in full.

     (b) Each Purchaser hereby accepts the appointment of the respective institution identified as
the Purchaser Agent for such Purchaser’s Purchaser Group on Schedule IV hereto or in the
Assumption Agreement or Transfer Supplement pursuant to which such Purchaser becomes a party
hereto, and irrevocably authorizes such Purchaser Agent 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 such Purchaser Agent by the terms of this Agreement, if any, together with such other
powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities, except
those expressly set forth herein, or any fiduciary relationship with any Purchaser or other
Purchaser Agent or the Administrator, and no implied obligations or liabilities shall be read into
this Agreement, or otherwise exist, against any Purchaser Agent.

     (c) Except as otherwise specifically provided in this Agreement, the provisions of this
Section 4.7 are solely for the benefit of the Administrator, the Purchaser Agents and the
Purchasers, and none of the Seller or the Servicer shall have any rights as a third party
beneficiary or otherwise under any of the provisions of this Section 4.7, except that this
Section 4.7 shall not affect any obligations which the Administrator, any Purchaser Agent
or any

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Purchaser may have to the Seller or the Servicer under the other provisions of this Agreement.
Furthermore, no Purchaser shall have any rights as a third-party beneficiary or otherwise under
any of the provisions hereof in respect of a Purchaser Agent that is not the Purchaser Agent for
such Purchaser.

     (d) In performing its functions and duties hereunder, the Administrator shall act solely as
the agent of the Purchasers and the Purchaser Agents and does not assume nor shall be deemed to
have assumed any obligation or relationship of trust or agency with or for the Seller or Servicer
or any of their successors and assigns. In performing its functions and duties hereunder, each
Purchaser Agent shall act solely as the agent of its respective Purchasers and does not assume nor
shall be deemed to have assumed any obligation or relationship of trust or agency with or for the
Seller, the Servicer, any Purchaser not in such Purchaser Agent’s Purchaser Group, any other
Purchaser Agent or the Administrator, or any of their respective successors and assigns.

     Section 4.8 Nature of Administrator’s Duties; Delegation of Administrator’s Duties;
Exculpatory Duties.

     (a) The Administrator shall have no duties or responsibilities except those expressly set
forth in this Agreement or in the other Transaction Documents. The duties of the Administrator
shall be mechanical and administrative in nature. The Administrator shall not have, by reason of
this Agreement, a fiduciary relationship in respect of any Purchaser. Nothing in this Agreement or
any of the Transaction Documents, express or implied, is intended to or shall be construed to
impose upon the Administrator any obligations in respect of this Agreement or any of the
Transaction Documents except as expressly set forth herein or therein. The Administrator shall not
have any duty or responsibility, either initially or on a continuing basis, to provide any
Purchaser or Purchaser Agent with any credit or other information with respect to the Seller, any
Originator, the Transferor, any Sub-Servicer or the Servicer, whether coming into its possession
before the date hereof or at any time or times thereafter. If the Administrator seeks the consent
or approval of the Purchasers or the Purchaser Agents to the taking or refraining from taking any
action hereunder, the Administrator shall send notice thereof to each Purchaser (or such
Purchaser’s Purchaser Agent, on its behalf) or each Purchaser Agent, as applicable. The
Administrator shall promptly notify each Purchaser Agent any time that the Purchasers and/or
Purchaser Agents, as the case may be, have instructed the Administrator to act or refrain from
acting pursuant hereto.

     (b) The Administrator may execute any of its duties through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrator shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

     (c) None of the Administrator and the Purchaser Agent, nor any of their respective directors,
officers, agents or employees shall be liable for any action taken or omitted (i) with the consent
or at the direction of the Majority Purchaser Agents (or, in the case of any Purchaser Agent, the
Purchasers within such Purchaser Agent’s Purchaser Group that have a majority of the aggregate
Commitments of such Purchaser Group) or (ii) in the absence of such Person’s

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gross negligence or willful misconduct. The Administrator shall not be responsible to any
Purchaser, Purchaser Agent or other Person for (i) any recitals, representations, warranties or
other statements made by the Seller, any Sub-Servicer, the Servicer, the Transferor, any Originator
or any of their Affiliates, (ii) the value, validity, effectiveness, genuineness, enforceability or
sufficiency of any Transaction Document, (iii) any failure of the Seller, any Sub-Servicer, the
Servicer, the Transferor, any Originator or any of their Affiliates to perform any obligation
hereunder or under the other Transaction Documents to which it is a party (or under any Contract),
or (iv) the satisfaction of any condition specified in Exhibit II. The Administrator shall not
have any obligation to any Purchaser Agent or Purchaser to ascertain or inquire about the
observance or performance of any agreement contained in any Transaction Document or to inspect the
properties, books or records of the Seller, the Servicer, the Transferor, any Originator or any of
their respective Affiliates.

          Section 4.9 UCC Filings.

          Each of the Seller and the Purchasers expressly recognizes and agrees that the Administrator
may be listed as the assignee or secured party of record on the various UCC filings required to be
made hereunder in order to perfect the transfer of the Purchased Interest from the Seller to the
Purchasers, that such listing shall be for administrative convenience only in creating a record or
nominee owner to take certain actions hereunder on behalf of the Purchasers and that such listing
will not affect in any way the status of the Purchasers as the beneficial owners of the Purchased
Interest. In addition, such listing shall impose no duties on the Administrator other than those
expressly and specifically undertaken in accordance with this Section 4.9.

          Section 4.10 Agent’s Reliance, Etc.

          None of the Administrator and the Purchaser Agents, nor any of their respective directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it as
Administrator or as Purchaser Agent, as the case may be, under or in connection with this Agreement
except for such Person’s own gross negligence or willful misconduct. Each of the Administrator and
each Purchaser Agent: (i) may consult with legal counsel (including counsel for the Seller),
independent public accountants and other experts selected by the Administrator and shall not be
liable for any action taken or omitted to be taken in good faith by it in accordance with the
advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any
Purchaser or Purchaser Agent and shall not be responsible to any Purchaser or Purchaser Agent for
any statements, warranties or representations made in or in connection with this Agreement; (iii)
shall not have any duty to ascertain or to inquire as to the performance or observance of any of
the terms, covenants or conditions of this Agreement on the part of the Seller, the Servicer, any
Sub-Servicer, the Transferor or any Originator or to inspect the property (including the books and
records) of the Seller, the Servicer, any Sub-Servicer, the Transferor or any Originator; (iv)
shall not be responsible to any Purchaser or Purchaser Agent for the due execution, legality,
validity, enforceability, genuineness, sufficiency, or value of this Agreement, or any other
instrument or document furnished pursuant hereto; and (v) shall incur no liability under or in
respect of this Agreement or any other Transaction Document by acting upon any notice (including
notice by telephone), consent, certificate or other instrument or writing (which may be by telex)
believed by it to be genuine and signed or sent by the proper party or parties.

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The Administrator may at any time request instructions from the Purchasers and/or Purchaser
Agents, and the Purchaser Agents may at any time request instructions from the Purchasers in their
Purchaser Groups, with respect to any actions or approvals which by the terms of this Agreement or
of any of the other Transaction Documents the Administrator or such Purchaser Agent is permitted or
required to take or to grant, and if such instructions are promptly requested, the Administrator
and/or such Purchaser Agent shall be absolutely entitled to refrain from taking any action or to
withhold any approval and shall not be under any liability whatsoever to any Person for refraining
from any action or withholding any approval under any of the Transaction Documents until it shall
have received such instructions from the Majority Purchaser Agents, in the case of the
Administrator or Purchasers holding the majority of the aggregate of the Commitments in such
Purchaser Agent’s Purchaser Group, in the case of any Purchaser Agent (or, in either case, where
expressly required hereunder, from the Majority LC Participants, the LC Bank, all of the Purchasers
and/or all of the LC Participants). Without limiting the foregoing, (x) none of the Purchasers
and the Purchaser Agents shall have any right of action whatsoever against the Administrator as a
result of the Administrator acting or refraining from acting under this Agreement or any of the
other Transaction Documents in accordance with the instructions of the Majority Purchaser Agent and
(y) none of the Purchasers in a Purchaser Agent’s Purchaser Group shall have any right of action
whatsoever against such Purchaser Agent as a result of such Purchaser Agent acting or refraining
from acting under this Agreement or any of the other Transaction Documents in accordance with the
instructions of the Purchasers within such Purchaser Agent’s Purchaser Group with a majority of the
Commitments of such Purchaser Group. The Administrator shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement in accordance with a request of the
required Purchasers or required Purchaser Agents, and such request and any action taken or failure
to act pursuant thereto shall be binding upon all Purchasers, all Purchaser Agents and the
Administrator. Each Purchaser Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement in accordance with a request of the Purchasers in such
Purchaser Agent’s Purchaser Group with a majority of the Commitments of such Purchaser Group, and
any such request and any action taken or failure to act pursuant thereto shall be binding upon all
the Purchasers in such Purchaser Agent’s Purchaser Group and such Purchaser Agent.

          Section 4.11 Administrator and Affiliates.

          To the extent that the Administrator or any of its Affiliates is or shall become an LC
Participant hereunder, the Administrator or such Affiliate, in such capacity, shall have the same
rights and powers under this Agreement as would any other LC Participant hereunder and may exercise
the same as though it were not the Administrator. The Administrator and its Affiliates may
generally engage in any kind of business with the Seller, the Transferor, any Originator, ACI, any
Sub-Servicer or the Servicer, any of their respective Affiliates and any Person who may do business
with or own securities of the Seller, the Transferor, any Originator, ACI, any Sub-Servicer or the
Servicer or any of their respective Affiliates, all as if it were not the Administrator hereunder
and without any duty to account therefor to any Purchaser Agent, or Purchaser.

          Section 4.12 Notice of Termination Events.

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          Neither the Administrator nor any Purchaser Agent shall be deemed to have knowledge or notice
of the occurrence of any Termination Event or Unmatured Termination Event unless it has received
notice from, in the case of the Administrator, any Purchaser Agent, any Purchaser, the Servicer or
the Seller and, in the case of any Purchaser Agent, the Administrator, any other Purchaser Agent,
any Purchaser, the Servicer or the Seller, in each case stating that a Termination Event or an
Unmatured Termination Event has occurred hereunder and describing such Termination Event or
Unmatured Termination Event. In the event that the Administrator receives such a notice, it shall
promptly give notice thereof to each Purchaser Agent. In the event that a Purchaser Agent receives
such a notice, it shall promptly give notice thereof to the Administrator (unless such Purchaser
Agent first received notice of such Termination Event or Unmatured Termination Event from the
Administrator) and to each of its related Purchasers. The Administrator shall take such action
concerning a Termination Event or an Unmatured Termination Event as may be directed by the Majority
Purchaser Agents (unless such action otherwise requires the consent of the required Purchasers, all
Purchaser Agents or the LC Bank), but until the Administrator receives such directions, the
Administrator may (but shall not be obligated to) take such action, or refrain from taking such
action, as the Administrator deems advisable and in the best interests of the Purchasers and
Purchaser Agents.

     Section 4.13 Non-Reliance on Administrator, Purchaser Agents and other Purchasers;
Administrators and Affiliates.

     (a) Each Purchaser and Purchaser Agent expressly acknowledges that none of the Administrator
and the Purchaser Agents, in the case of such Purchaser, and none of the Administrator or any other
Purchaser Agent, in the case of such Purchaser Agent, nor in either case any of their respective
officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Administrator or any Purchaser Agent
hereafter taken, including any review of the affairs of the Seller, the Transferor, ACI, the
Servicer or any Originator, shall be deemed to constitute any representation or warranty by the
Administrator or such Purchaser Agent. Each Purchaser and Purchaser Agent represents and warrants
to the Administrator and such Purchaser’s Purchaser Agent, in the case of such Purchaser, and
Administrator, in the case of such Purchaser Agent, that it has, independently and without reliance
upon the Administrator, the LC Bank, any Purchaser Agent or any Purchaser and based on such
documents and information as it has deemed appropriate, made and will continue to make its own
appraisal of any investigation into the business, operations, property, prospects, financial and
other conditions and creditworthiness of the Seller, the Transferor, ACI, the Servicer or the
Originators, and made its own evaluation and decision to enter into this Agreement. Except for
terms specifically required to be delivered hereunder, the Administrator shall not have any duty or
responsibility to provide any Purchaser or Purchaser Agent, and no Purchaser Agent have any duty or
responsibility to provide any Purchaser, with any information concerning the Seller, the
Transferor, ACI, the Servicer or the Originators or any of their Affiliates that comes into the
possession of the Administrator or such Purchaser Agent, respectively, or any of their respective
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

     (b) Each of the Purchasers, the Purchaser Agents and the Administrator and any of their
respective Affiliates may extend credit to, accept deposits from and generally engage in any

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kind of banking, trust, debt, entity or other business with the Seller, the Transferor, ACI,
the Servicer or any Originator or any of their Affiliates. With respect to the acquisition of the
Eligible Receivables pursuant to this Agreement, each of the Purchaser Agents and the Administrator
shall have the same rights and powers under this Agreement as any Purchaser and may exercise the
same as though it were not such an agent, and the terms “Purchaser” and “Purchasers” shall include,
to the extent applicable, each of the Purchaser Agents and the Administrator in their individual
capacities.

          Section 4.14 Indemnification.

          Each LC Participant and Related Committed Purchaser agrees to indemnify and hold harmless the
Administrator and its officers, directors, employees, representatives and agents and the LC Bank
(to the extent not reimbursed by the Seller, the Transferor, the Servicer or any Originator and
without limiting the obligation of the Seller, the Transferor, the Servicer, or any Originator to
do so), ratably according to its Pro Rata Share, from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, settlements, costs, expenses and, or
disbursements of any kind or nature whatsoever (including, in connection with any investigative or
threatened proceeding, whether or not the Administrator, the LC Bank or such Person shall be
designated a party thereto) that may at any time be imposed on, incurred by, or asserted against
the Administrator, LC Bank or such Person as a result of, or related to, any of the transactions
contemplated by the Transaction Documents or the execution, delivery or performance of the
Transaction Documents or any other document furnished in connection therewith; provided,
however, that no LC Participant or Related Committed Purchaser shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses, or disbursements resulting from the Administrator’s or the LC Bank’s gross
negligence or willful misconduct, as determined by a final non-appealable judgment of a court of
competent jurisdiction. Without limiting the generality of the foregoing, each LC Participant
agrees to reimburse the Administrator and the LC Bank, ratably according to their Pro Rata Shares,
promptly upon demand, for any out-of-pocket expenses (including reasonable counsel fees) incurred
by the Administrator or the LC Bank in connection with the administration, modification, amendment
or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice
in respect of its rights or responsibilities under, this Agreement.

          Section 4.15 Successor Administrator.

          The Administrator may, upon at least thirty (30) days’ notice to the Seller, the Purchaser
Agents and the Servicer, resign as Administrator. Such resignation shall not become effective
until a successor Administrator is appointed by the Majority Purchaser Agents and the LC Bank and
has accepted such appointment. Upon such acceptance of its appointment as Administrator hereunder
by a successor Administrator, such successor Administrator shall succeed to and become vested with
all the rights and duties of the retiring Administrator, and the retiring Administrator shall be
discharged from its duties and obligations under the Transaction Documents. After any retiring
Administrator’s resignation hereunder, the provisions of Sections 3.1 and 3.2 and
this Article IV shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was the Administrator.

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ARTICLE V.

MISCELLANEOUS

          Section 5.1 Amendments, Etc.

          No amendment or waiver of any provision of this Agreement or any other Transaction Document,
or consent to any departure by the Seller or the Servicer therefrom, shall be effective unless in a
writing signed by the Administrator, the Majority Purchaser Agents and the LC Bank and, in the case
of an amendment, by the other parties thereto; provided, however, that no such
amendment shall, (a) without the consent of each affected Purchaser, (i) extend the date of any
payment or deposit of Collections by the Seller or the Servicer or decrease the outstanding amount
of or rate of Discount or extend the repayment of or any scheduled payment date for the payment of
any Discount in respect of any Portion of Capital or any fees owed to a Purchaser; (ii) reduce any
fees payable pursuant to the applicable Fee Letter, (iii) forgive or waive or otherwise excuse any
repayment of Capital or change either the amount of Capital of any Purchaser or any Purchaser’s pro
rata share of the Purchased Interest; (iii) increase the Commitment of any Purchaser; (iv) amend or
modify the Pro Rata Share of any LC Participant; (v) amend or modify the provisions of this
Section 5.1 or the definition of “Eligible Receivables”, “Majority LC Participants”,
“Majority Purchaser Agents”, “Scheduled Commitment Termination Date” or “Termination Date” or (vi)
amend or modify any defined term (or any term used directly or indirectly in such defined term)
used in clauses (i) through (v) above in a manner that would circumvent the intention of the
restrictions set forth in such clauses and (b) without the consent of the Majority Purchaser Agents
and/or Majority LC Participants, as applicable, amend, waive or modify any provision expressly
requiring the consent of such Majority Purchaser Agents and/or Majority LC Participant. Each such
amendment, waiver or consent shall be effective only in the specific instance and for the specific
purpose for which it was given. The Administrator hereby agrees to provide executed copies of any
material amendment or waiver of any provision of this Agreement or any other Transaction Document
to the Rating Agencies. No failure on the part of any Purchaser Agent, any Purchaser or the
Administrator to exercise, and no delay in exercising any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right.

          Section 5.2 Notices, Etc.

          All notices and other communications provided for hereunder shall, unless otherwise stated
herein, be in writing (including facsimile communication) and shall be personally delivered or sent
by facsimile, or by overnight mail, to the intended party at the mailing address or facsimile
number of such party set forth under its name on the signature pages hereof (or in any other
document or agreement pursuant to which it is or became a party hereto), or at such other address
or facsimile number as shall be designated by such party in a written notice to the other parties
hereto. All such notices and communications shall be effective (i) if delivered by overnight mail,
when received, and (ii) if transmitted by facsimile, when sent, receipt confirmed by telephone or
electronic means.

          Section 5.3 Successors and Assigns; Assignability; Participations.

37

 

     (a) Successors and Assigns. Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the successors and assigns of such party;
all covenants, promises and agreements by or on behalf of any parties hereto that are contained in
this Agreement shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns. Except as otherwise provided in Section 4.1(d), neither the Seller
nor the Servicer may assign or transfer any of its rights or delegate any of its duties hereunder
or under any Transaction Document without the prior written consent of the Administrator, each
Purchaser Agent and the LC Bank.

     (b) Participations. (i) Except as otherwise specifically provided herein, any
Purchaser may sell to one or more Persons (each a “Participant”) participating interests in
the interests of such Purchaser hereunder; provided, that no Purchaser shall grant any
participation under which the Participant shall have rights to approve any amendment to or waiver
of this Agreement or any other Transaction Document. Such Purchaser shall remain solely
responsible for performing its obligations hereunder, and the Seller, the Servicer, each Purchaser
Agent and the Administrator shall continue to deal solely and directly with such Purchaser in
connection with such Purchaser’s rights and obligations hereunder. A Purchaser shall not agree
with a Participant to restrict such Purchaser’s right to agree to any amendment, waiver or
modification hereto, except amendments, waivers or modifications that require the consent of all
Purchasers. (ii) Notwithstanding anything contained in paragraph (a) or clause (i) of paragraph
(b) of this Section 5.3, each of the LC Bank and each LC Participant may sell
participations in all or any part of any Funded Purchase made by such LC Participant to another
bank or other entity so long as (i) no such grant of a participation shall, without the consent of
the Seller, require the Seller to file a registration statement with the SEC and (ii) no holder of
any such participation shall be entitled to require such LC Participant to take or omit to take any
action hereunder except that such LC Participant may agree with such participant that, without such
Participant’s consent, such LC Participant will not consent to an amendment, modification or waiver
that requires the consent of all LC Participants. Any such Participant shall not have any rights
hereunder or under the Transaction Documents.

     (c) Assignments by Related Committed Purchasers. Any Related Committed Purchaser may
assign to one or more Persons (each a “Purchasing Related Committed Purchaser”), reasonably
acceptable to each of the Administrator, the LC Bank and the related Purchaser Agent in each such
Person’s sole discretion, its rights and obligations herein (including its Commitment (which shall
be inclusive of its Commitment as an LC Participant)) in whole or in part, pursuant to a supplement
hereto, substantially in the form of Annex G with any changes as have been approved by the
parties thereto (each, a “Transfer Supplement”), executed by each such Purchasing Related
Committed Purchaser, such selling Related Committed Purchaser, such related Purchaser Agent and the
Administrator and with the consent of the Seller (provided, that the consent of the Seller
shall not be unreasonably withheld, conditioned or delayed and that no such consent shall be
required if (i) a Termination Event or Unmatured Termination Event has occurred and is continuing
or (ii) such assignment is made by any Related Committed Purchaser to (A) the Administrator, (B)
any other Related Committed Purchaser, (C) any Affiliate of the Administrator or any Related
Committed Purchaser, (D) any commercial paper conduit or similar financing vehicle sponsored or
administered by such Purchaser and for whom such Purchaser acts as a program support provider or
through which (directly or

38

 

indirectly) such Purchaser does or may fund Purchases hereunder (each, a “Conduit”),
(E) any Liquidity Provider, (F) any Program Support Provider or (G) any Person that (1) is in the
business of issuing commercial paper notes and (2) is associated with or administered by the
Administrator or such Related Committed Purchaser or any Affiliate of the Administrator or such
Related Committed Purchaser). Upon (i) the execution of the Transfer Supplement, (ii) delivery of
an executed copy thereof to the Seller, the Servicer, such related Purchaser Agent and the
Administrator and (iii) payment by the Purchasing Related Committed Purchaser to the selling
Related Committed Purchaser of the agreed purchase price, if any, such selling Related Committed
Purchaser shall be released from its obligations hereunder to the extent of such assignment and
such Purchasing Related Committed Purchaser shall for all purposes be a Related Committed Purchaser
party hereto and shall have all the rights and obligations of a Related Committed Purchaser
hereunder to the same extent as if it were an original party hereto. The amount of the Commitment
of the selling Related Committed Purchaser allocable to such Purchasing Related Committed Purchaser
shall be equal to the amount of the Commitment of the selling Related Committed Purchaser
transferred regardless of the purchase price, if any, paid therefor. The Transfer Supplement shall
be an amendment hereof only to the extent necessary to reflect the addition of such Purchasing
Related Committed Purchaser as a “Related Committed Purchaser” and a related “LC Participant” and
any resulting adjustment of the selling Related Committed Purchaser’s Commitment and, if
applicable, selling related LC Participant’s Pro Rata Share of the LC Participation Amount.

     (d) Assignments to Liquidity Providers and other Program Support Providers. Any
Conduit Purchaser may at any time grant to one or more of its Liquidity Providers or other Program
Support Providers participating interests in its portion of the Purchased Interest. In the event
of any such grant by such Conduit Purchaser of a participating interest to a Liquidity Provider or
other Program Support Provider, such Conduit Purchaser shall remain responsible for the performance
of its obligations hereunder. The Seller agrees that each Liquidity Provider and Program Support
Provider shall be entitled to the benefits of Sections 1.7 and 1.8.

     (e) Other Assignment by Conduit Purchasers. Each party hereto agrees and consents (i)
to any Conduit Purchaser’s assignment, participation, grant of security interests in or other
transfers of any portion of, or any of its beneficial interest in, the Purchased Interest (or
portion thereof), including without limitation to any collateral agent in connection with its
commercial paper program and (ii) to the complete assignment by any Conduit Purchaser of all of its
rights and obligations hereunder to any other Person, and upon such assignment such Conduit
Purchaser shall be released from all obligations and duties, if any, hereunder; provided,
that such Conduit Purchaser may not, without the prior consent of its Related Committed Purchasers,
make any such transfer of its rights hereunder unless the assignee (x) is a Conduit or (y) (i) is
principally engaged in the purchase of assets similar to the assets being purchased hereunder, (ii)
has as its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and (iii) issues
commercial paper or other Notes with credit ratings substantially comparable to the ratings of the
assigning Conduit Purchaser. Any assigning Conduit Purchaser shall deliver to any assignee a
Transfer Supplement with any changes as have been approved by the parties thereto, duly executed by
such Conduit Purchaser, assigning any portion of its interest in the Purchased Interest to its
assignee. Such Conduit Purchaser shall promptly (i) notify each of the other parties hereto of
such assignment and (ii) take all further action that the assignee

39

 

reasonably requests in order to evidence the assignee’s right, title and interest in such
interest in the Purchased Interest and to enable the assignee to exercise or enforce any rights of
such Conduit Purchaser hereunder. Upon the assignment of any portion of its interest in the
Purchased Interest, the assignee shall have all of the rights hereunder with respect to such
interest (except that the Discount therefor shall thereafter accrue at the rate, determined with
respect to the assigning Conduit Purchaser unless the Seller, the related Purchaser Agent and the
assignee shall have agreed upon a different Discount).

     (f) Certain Pledges. Without limiting the right of any Purchaser to sell or grant
interests, security interests or participations to any Person as otherwise described in this
Article V, above, any Purchaser may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure its obligations as a Purchaser
hereunder, including any pledge or assignment to secure obligations to a Federal Reserve Bank;
provided that no such pledge or assignment shall release such Purchaser from any of its
obligations hereunder or substitute any such pledge or assignee for such Purchaser as a party
hereto.

     (g) Assignment by Administrator. This Agreement and the rights and obligations of the
Administrator hereunder shall be assignable, in whole or in part, by the Administrator and its
successors and assigns; provided, that unless: (i) such assignment is to an Affiliate of
PNC, (ii) it becomes unlawful for PNC to serve as the Administrator or (iii) a Termination Event
exists, the Seller has consented to such assignment, which consent shall not be unreasonably
withheld, conditioned or delayed.

     (h) Agents. Without limiting any other rights that may be available under applicable
law, the rights of the Purchasers and each Liquidity Provider may be enforced through it or by its
agents.

     (i) Disclosure; Notice. Each assignor may, in connection with an assignment permitted
hereunder, disclose to the applicable assignee (that shall have agreed to be bound by
Section 5.6) any information relating to the Servicer, the Seller or the Pool Receivables
furnished to such assignor by or on behalf of the Servicer, the Seller, any Purchaser, any
Purchaser Agent or the Administrator. Such assignor shall give prior written notice to Seller of
any assignment of such assignor’s rights and obligations (including ownership of the Purchased
Interest) to any Person other than a Program Support Provider.

     (j) Opinions of Counsel. If required by the Administrator or the applicable Purchaser
Agent or to maintain the ratings of the Notes of any Conduit Purchaser, each Transfer Supplement or
other assignment and acceptance agreement must be accompanied by an opinion of counsel of the
assignee as to matters as the Administrator or such Purchaser Agent may reasonably request.

     Section 5.4 Costs, Expenses and Taxes.

     (a) By way of clarification, and not of limitation, of Sections 1.7, 1.19
or 3.1, the Seller shall pay to the Administrator, any Purchaser Agent and/or any Purchaser
on demand all costs and expenses in connection with (i) the preparation, execution, delivery and
administration

40

 

(including amendments or waivers of any provision) of this Agreement and the other Transaction
Documents, (ii) the sale of the Purchased Interest (or any portion thereof), (iii) the perfection
(and continuation) of the Administrator’s rights (on behalf of the Purchasers) in the Receivables,
Collections and other Pool Assets, (iv) the enforcement by the Administrator, the Purchaser Agents
or the Purchasers of the obligations of the Seller, the Transferor, the Servicer or the Originators
under the Transaction Documents or of any Obligor under a Receivable and (v) the maintenance by the
Administrator of the Lock-Box Accounts (and any related lock-box or post office box), including
reasonable fees, costs and expenses of legal counsel for the Administrator, the Purchaser Agents,
the Purchasers, any Liquidity Provider or Program Support Provider relating to any of the foregoing
or to advising the Administrator, any Purchaser Agent, any Purchaser, any Liquidity Provider or any
other Program Support Provider about its rights and remedies under any Transaction Document and all
costs and expenses (including reasonable counsel fees and expenses) of the Administrator, the
Purchaser Agents, the Purchasers, any Liquidity Provider or Program Support Provider in connection
with the enforcement of the Transaction Documents and in connection with the administration of the
Transaction Documents; provided, that unless a Termination Event has occurred and is
continuing, the Seller shall be liable only for fees, costs and expenses of legal counsel for the
Administrator (which legal counsel may represent any or all of the Administrator, the Purchaser
Agents, the Purchasers, any Liquidity Provider and any Program Support Provider). Subject to
Section 1(e) of Exhibit IV of this Agreement, the Seller shall reimburse the
Administrator, each Purchaser Agent and each Purchaser for the cost of such Person’s auditors
(which may be employees of such Person) auditing the books, records and procedures of the Seller or
the Servicer. The Seller shall reimburse each Conduit Purchaser for any amounts such Conduit
Purchaser must pay to any Liquidity Provider or other Program Support Provider on account of any
Tax. The Seller shall reimburse each Conduit Purchaser on demand for all reasonable costs and
expenses incurred by such Conduit Purchaser or any holder of membership interests of such Conduit
Purchaser in connection with the Transaction Documents or the transactions contemplated thereby,
including costs related to the auditing of the Conduit Purchaser’s books by certified public
accountants, Rating Agency fees and fees and out of pocket expenses of counsel of the
Administrator, any Purchaser Agent and any Purchaser, or any membership interest holder, or
administrator, of such for advice relating to such Conduit Purchaser’s operation.

     (b) All payments made by the Seller to the Administrator, any Purchaser Agent, any Purchaser,
Liquidity Provider or other Program Support Provider hereunder shall be made without withholding
for or on account of any present or future taxes (other than those imposed or based on the gross or
net income or receipts of the recipient by the jurisdiction under the laws of which such Person is
organized, operates or where its principal executive office is located or any political subdivision
thereof). If any such withholding is so required, the Seller shall make the withholding, pay the
amount withheld to the appropriate authority before penalties attach thereto or interest accrues
thereon and pay such additional amount as may be necessary to ensure that the net amount actually
received by such Person free and clear of such taxes (including such taxes on such additional
amount) is equal to the amount that such Person would have received had such withholding not been
made. If any such Person pays any such taxes, penalties or interest the Seller shall reimburse
such Person for that payment on demand. If the Seller pays any such taxes, penalties or interest,
it shall deliver official tax receipts evidencing that payment or

41

 

certified copies thereof to such Person on whose account such withholding was made on or
before the thirtieth day after payment.

     (c) In addition, the Seller shall pay on demand any and all stamp and other taxes and fees
payable in connection with the execution, delivery, filing and recording of this Agreement, the
other Transaction Documents or the other documents or agreements to be delivered hereunder or
thereunder, and agrees to save each Indemnified Party and Affected Person harmless from and against
any liabilities with respect to or resulting from any delay in paying or omission to pay such taxes
and fees.

     Section 5.5 No Proceedings; Limitation on Payments.

     (a) Each of the Seller, ACI, the Servicer, the Administrator, the LC Bank, the Purchaser
Agents and the Purchasers and each assignee of the Purchased Interest or any interest therein, and
each Person that enters into a commitment to purchase the Purchased Interest or interests therein,
hereby covenants and agrees that it will not institute against, or join any other Person in
instituting against, any Conduit Purchaser any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar
law, for one year and one day after the latest maturing Note issued by such Conduit Purchaser is
paid in full. The provisions of this paragraph shall survive any termination of this Agreement.

     (b) Each of the Seller, ACI, the Servicer, the Administrator, the LC Bank, the Purchaser
Agents and the Purchasers and each assignee of the Purchased Interest or any interest therein, and
each Person that enters into a commitment to purchase the Purchased Interest or interests therein,
hereby covenants and agrees that it will not institute against, or join any other Person in
instituting against, the Seller any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law,
for one year and one day after all indebtedness and other obligations of the Seller hereunder and
under each other Transaction Document shall have been paid in full; provided, that the
Administrator may take any such action with the prior written consent of the Majority Purchaser
Agents and the LC Bank. The provisions of this paragraph shall survive any termination of this
Agreement.

     (c) Notwithstanding any provisions contained in this Agreement to the contrary, no Conduit
Purchaser shall, or shall be obligated to, pay any amount, if any, payable by it pursuant to this
Agreement or any other Transaction Document unless (i) such Conduit Purchaser has received funds
which may be used to make such payment and which funds are not required to repay such Conduit
Purchaser’s Notes when due and (ii) after giving effect to such payment, either (x) such Conduit
Purchaser could issue Notes to refinance all of its outstanding Notes (assuming such outstanding
Notes matured at such time) in accordance with the program documents governing such Conduit
Purchaser’s securitization program or (y) all such Conduit Purchaser’s Notes are paid in full. Any
amount which a Conduit Purchaser does not pay pursuant to the operation of the preceding sentence
shall not constitute a claim (as defined in §101 of the Bankruptcy Code) against or company
obligation of such Conduit Purchaser for any

42

 

such insufficiency unless and until such Conduit Purchaser satisfies the provisions of
clauses (i) and (ii) above. The provisions of this paragraph shall survive any
termination of this Agreement.

          Section 5.6 Confidentiality.

          Unless otherwise required by applicable law, each of the Seller and the Servicer agrees to
maintain the confidentiality of this Agreement and the other Transaction Documents (and all drafts
thereof) in communications with third parties and otherwise; provided, that this Agreement
may be disclosed: (a) to third parties to the extent such disclosure is made pursuant to a written
agreement of confidentiality in form and substance reasonably satisfactory to the Administrator and
each Purchaser Agent, (b) to the Seller’s legal counsel and auditors if they agree to hold it
confidential, subject to applicable law, (c) in connection with any legal proceeding arising out of
or in connection with this Agreement or any other Transaction Document or the preservation or
maintenance of that party’s rights hereunder or thereunder, (d) if required to do so by a court of
competent jurisdiction whether in pursuance of any procedure for discovering documents or
otherwise, (e) pursuant to any law in accordance with which that party is required or accustomed to
act (including applicable SEC requirements), (f) to any Governmental Authority, and (g) to any
Person in connection with any credit agreement or other financing transaction. The restrictions in
the preceding sentence shall not apply to disclosures to any party to this Agreement by any other
party hereto, information already known to a recipient otherwise than in breach of this Section,
information also received from another source on terms not requiring it to be kept confidential, or
information that is or becomes publicly available otherwise than in breach of this Section. Unless
otherwise required by applicable law, each of the Administrator, the Purchaser Agents and the
Purchasers agrees to maintain the confidentiality of non-public financial information regarding
ACI, the Seller, the Transferor, the Servicer and the Originators; provided, that such
information may be disclosed to: (i) third parties to the extent such disclosure is made pursuant
to a written agreement of confidentiality in form and substance reasonably satisfactory to ACI,
(ii) legal counsel and auditors of the Purchasers, the Purchaser Agents or the Administrator if
they agree to hold it confidential, (iii) if applicable, the Rating Agencies rating the Notes of
any Conduit Purchaser, (iv) any Program Support Provider or potential Program Support Provider (if
they agree to hold it confidential), and (v) any placement agency placing the Notes and (vi) any
regulatory authorities or Governmental Authority having jurisdiction over the Administrator, any
Purchaser Agent, any Purchaser, any Program Support Provider or any Liquidity Provider.

          Section 5.7 GOVERNING LAW AND JURISDICTION.

     (a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A
SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

43

 

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE
OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY NEW YORK LAW.

          Section 5.8 Execution in Counterparts.

          This Agreement may be executed in any number of counterparts, each of which, when so executed,
shall be deemed to be an original, and all of which, when taken together, shall constitute one and
the same agreement.

          Section 5.9 Survival of Termination; Non-Waiver.

          The provisions of Sections 1.7, 1.8, 1.18, 1.19, 3.1,
3.2, 5.4, 5.5, 5.6, 5.7, 5.10 and 5.14
shall survive any termination of this Agreement.

          Section 5.10 WAIVER OF JURY TRIAL.

          EACH OF THE PARTIES HERETO WAIVES ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR
OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED
BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO
FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION
AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE
THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY
TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

          Section 5.11 Entire Agreement.

44

 

          This Agreement and the other Transaction Documents embody the entire agreement and
understanding between the parties hereto, and supersede all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject matter hereof and
thereof.

          Section 5.12 Headings.

          The captions and headings of this Agreement and any Exhibit, Schedule or Annex hereto are for
convenience of reference only and shall not affect the interpretation hereof or thereof.

          Section 5.13 Right of Setoff.

          Each Purchaser is hereby authorized (in addition to any other rights it may have) to setoff,
appropriate and apply (without presentment, demand, protest or other notice which are hereby
expressly waived) any deposits and any other indebtedness held or owing by such Purchaser
(including by any branches or agencies of such Purchaser) to, or for the account of, the Seller
against amounts owing by the Seller hereunder (even if contingent or unmatured); provided
that such Purchaser shall notify Seller concurrently with such setoff.

          Section 5.14 Purchaser Groups’ Liabilities.

          The obligations of each Purchaser Agent and each Purchaser under the Transaction Documents are
solely the corporate obligations of such Person. No recourse shall be had for any obligation or
claim arising out of or based upon any Transaction Document against any member, employee, officer,
director or incorporator of any such Person; provided, however, that this Section
shall not relieve any such Person of any liability it might otherwise have for its own gross
negligence or willful misconduct.

          Section 5.15 Sharing of Recoveries.

          Each Purchaser agrees that if it receives any recovery, through set-off, judicial action or
otherwise, on any amount payable or recoverable hereunder in a greater proportion than should have
been received hereunder or otherwise inconsistent with the provisions hereof, then the recipient of
such recovery shall purchase for cash an interest in amounts owing to the other Purchasers (as
return of Capital or otherwise), without representation or warranty except for the representation
and warranty that such interest is being sold by each such other Purchaser free and clear of any
Adverse Claim created or granted by such other Purchaser, in the amount necessary to create
proportional participation by the Purchaser in such recovery. If all or any portion of such amount
is thereafter recovered from the recipient, such purchase shall be rescinded and the purchase price
restored to the extent of such recovery, but without interest.

          Section 5.16 Ratification.

          After giving effect to this Agreement and the transactions contemplated by this Agreement, all
of the provisions of the Performance Guaranty shall remain in full force and effect and the
Performance Guarantor hereby ratifies and affirms the Performance Guaranty and

45

 

acknowledges that the Performance Guaranty has continued and shall continue in full force and
effect in accordance with its terms.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

46

 

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

	 	 	 	 	 	 

	 	 	ARCH RECEIVABLE COMPANY, LLC,

as Seller
	 
	 	 	 	 
	 

	 	By:	 	/s/ James E. Florczak
	 

	 	 	 	 
	 

	 	Name:	 	James E. Florczak
	 

	 	 	 	 
	 

	 	Title:	 	Treasurer  &  Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	One CityPlace Drive, Suite 300
	 

	 	 	 	St. Louis, MO 63141
	 
	 	 	 	 
	 

	 	Attention:
	 	James E. Florczak,
	 

	 	 	 	     Vice President and Treasurer
	 

	 	Telephone:
	 	314-994-2785
	 

	 	Facsimile:
	 	314-994-2739
	 
	 	 	 	 
	 	 	ARCH COAL SALES COMPANY, INC., 

as initial Servicer
	 
	 	 	 	 
	 

	 	By:	 	/s/ James E. Florczak
	 

	 	 	 	 
	 

	 	Name:	 	James E. Florczak
	 

	 	 	 	 
	 

	 	Title:	 	Vice President & Treasurer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	One CityPlace Drive, Suite 300
	 

	 	 	 	St. Louis, MO 63141
	 
	 	 	 	 
	 

	 	Attention:
	 	James E. Florczak,
	 

	 	 	 	     Vice President and Treasurer
	 

	 	Telephone:
	 	314-994-2785
	 

	 	Facsimile:
	 	314-994-2739

S-1

 

	 	 	 	 	 	 

	 	 	PNC BANK, NATIONAL ASSOCIATION,

as Administrator
	 
	 	 	 	 
	 

	 	By:	 	/s/ William Falcon
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	PNC Bank, National Association
	 

	 	 	 	One PNC Plaza, 26th Floor
	 

	 	 	 	249 Fifth Avenue
	 

	 	Attention:
	 	Pittsburgh, PA 15222-2707

William Falcon
	 

	 	Telephone:
	 	412-762-5442
	 

	 	Facsimile:
	 	412-762-9184

S-2

 

	 	 	 	 	 	 

	 	 	MARKET STREET FUNDING LLC,

as a Conduit Purchaser
	 
	 	 	 	 
	 

	 	By:	 	/s/ Doug Johnson
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Market Street Funding LLC
	 

	 	 	 	c/o AMACAR Group, LLC
	 

	 	 	 	6525 Morrison Boulevard, Suite 318
	 

	 	 	 	Charlotte, NC 28211
	 
	 	 	 	 
	 

	 	Attention:
	 	Doug Johnson
	 

	 	Telephone:
	 	704-365-0569
	 

	 	Facsimile:
	 	704-365-1362
	 
	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 
	 	 	PNC Bank, National Association
	 	 	One PNC Plaza, 26th Floor
	 	 	249 Fifth Avenue
	 	 	Pittsburgh, PA 15222-2707
	 

	 	Attention:
	 	William Falcon
	 

	 	Telephone:
	 	412-762-5442
	 

	 	Facsimile:
	 	412-762-9184

S-3

 

	 	 	 	 	 	 

	 	 	MARKET STREET FUNDING LLC,

as a Related Committed Purchaser
	 
	 	 	 	 
	 

	 	By:	 	/s/ Doug Johnson
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Market Street Funding LLC
	 

	 	 	 	c/o AMACAR Group, LLC
	 

	 	 	 	6525 Morrison Boulevard, Suite 318
	 

	 	 	 	Charlotte, NC 28211
	 
	 	 	 	 
	 

	 	Attention:
	 	Doug Johnson
	 

	 	Telephone:
	 	704-365-0569
	 

	 	Facsimile:
	 	704-365-1362
	 
	 	 	 	 
	 	 	With a copy to:
	 
	 	 	 	 
	 	 	PNC Bank, National Association
	 	 	One PNC Plaza, 26th Floor
	 	 	249 Fifth Avenue
	 	 	Pittsburgh, PA 15222-2707
	 

	 	Attention:
	 	William Falcon
	 

	 	Telephone:
	 	412-762-5442
	 

	 	Facsimile:
	 	412-762-9184
	 
	 	 	 	 
	 

	 	Commitment:
	 	$125,000,000 

S-4

 

	 	 	 	 	 	 

	 	 	PNC BANK, NATIONAL ASSOCIATION,

as the LC Bank and as an LC Participant
	 
	 	 	 	 
	 

	 	By:	 	/s/ Richard Munsick
	 

	 	 	 	 
	 

	 	Name:
	 	Richard Munsick
	 

	 	Title:
	 	Senior Vice President
	 
	 	 	 	 
	 

	 	Address:
	 	PNC Bank, National Association
	 

	 	 	 	500 First Avenue
	 

	 	 	 	Third Floor
	 

	 	 	 	Pittsburgh, PA 15219
	 

	 	Attention:
	 	Richard Munsick
	 

	 	Telephone:
	 	412-762-4299
	 

	 	Facsimile:
	 	412-762-9184
	 
	 	 	 	 
	 

	 	Commitment:
	 	$125,000,000 
	 

	 	Pro-Rata Share:
	 	71.43% 

S-5

 

	 	 	 	 	 	 

	 	 	PNC BANK, NATIONAL ASSOCIATION,

as a Purchaser Agent
	 
	 	 	 	 
	 

	 	By:	 	/s/ William Falcon
	 

	 	 	 	 
	 

	 	Name:
	 	William Falcon
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 

	 	Address:
	 	PNC Bank, National Association
	 

	 	 	 	One PNC Plaza, 26th Floor
	 

	 	 	 	249 Fifth Avenue
	 

	 	 	 	Pittsburgh, PA 15222-2707
	 

	 	Attention:
	 	William Falcon
	 

	 	Telephone:
	 	412-762-5442
	 

	 	Facsimile:
	 	412-762-9184

S-6

 

	 	 	 	 	 	 

	 	 	ATLANTIC ASSET SECURITIZATION LLC,

as a Conduit Purchaser
	 
	 	 	 	 
	 

	 	By:	 	/s/ Sam Pilcer
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kostantina Kourmpetis
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Atlantic Asset Securitization
	 

	 	 	 	c/o Credit Agricole Corporate and 
	 

	 	Investment
Bank New York Branch
	 

	 	 	 	1301 Avenue of the Americas
	 

	 	 	 	New York, NY 10019
	 

	 	Attention:
	 	Debt Capital Markets-Securitization
	 

	 	Telephone:
	 	212-261-3996
	 

	 	Facsimile:
	 	917-849-5584
	 
	 	 	 	 
	 	 	With a copy to its Purchaser Agent

S-7

 

	 	 	 	 	 	 	 

	 	 	CREDIT AGRICOLE CORPORATE AND 
INVESTMENT BANK NEW
YORK BRANCH,

as a Related Committed Purchaser
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Sam Pilcer	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kostantina Kourmpetis	 	 
	 

	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	Credit Agricole Corporate and 
	 

	 	Investment
Bank New York Branch

	 

	 	 	 	1301 Avenue of the Americas

	 

	 	 	 	New York, NY 10019

	 

	 	Attention:
	 	Debt Capital Markets-Securitization

	 

	 	Telephone:
	 	212-261-3996
	 

	 	Facsimile:
	 	917-849-5584
	 
	 	 	With a copy to its Purchaser Agent
	 
	 	 	 	 	 	 
	 

	 	Commitment:
	 	$50,000,000

S-8

 

	 	 	 	 	 	 

	 	 	CREDIT AGRICOLE CORPORATE AND 
INVESTMENT BANK NEW
YORK BRANCH,

as an LC Participant
	 
	 	 	 	 
	 

	 	By:	 	/s/ Sam Pilcer
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Konstantina Kourmpetis
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Credit Agricole Corporate and 
	 

	 	Investment
Bank New York Branch
	 

	 	 	 	1301 Avenue of the Americas
	 

	 	 	 	New York, NY 10019
	 

	 	Attention:
	 	Debt Capital Markets-Securitization
	 

	 	Telephone:
	 	212-261-3996
	 

	 	Facsimile:
	 	917-849-5584
	 
	 	 	With a copy to its Purchaser Agent
	 
	 	 	 	 
	 

	 	Commitment:
	 	$50,000,000 
	 

	 	Pro-Rata Share:
	 	28.57% 

S-9

 

	 	 	 	 	 	 

	 	 	CREDIT AGRICOLE CORPORATE AND 
INVESTMENT BANK NEW
YORK BRANCH,

as a Purchaser Agent
	 
	 	 	 	 
	 

	 	By:	 	/s/ Sam Pilcer
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Kostantina Kourmpetis
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	Credit Agricole Corporate and 
	 

	 	Investment
Bank New York Branch
	 

	 	 	 	1301 Avenue of the Americas
	 

	 	 	 	New York, NY 10019
	 

	 	Attention:
	 	Debt Capital Markets-Securitization
	 

	 	Telephone:
	 	212-261-3996
	 

	 	Facsimile:
	 	917-849-5584

S-10

 

	 	 	 	 	 	 

	 	 	Agreed to, solely for purposes of Section
5.16:
	 
	 	 	 	 
	 	 	ARCH COAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/  James E. Florczak
	 

	 	 	 	 
	 

	 	Name:	 	 James E. Florczak
	 

	 	 	 	 
	 

	 	Title:	 	Vice President & Treasurer
	 

	 	 	 	 

S-11

 

EXHIBIT I

DEFINITIONS

     As used in the Agreement (including its Exhibits, Schedules and Annexes), the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined). Unless otherwise indicated, all Section, Annex, Exhibit and
Schedule references in this Exhibit are to Sections of and Annexes, Exhibits and Schedules to the
Agreement.

     “ACI” means Arch Coal, Inc., a Delaware corporation.

     “Adjusted LC Participation Amount” means, at any time, the LC Participation Amount
less the amount of cash collateral held in the LC Collateral Account at such time.

     “Administration Account” means the account number 1002422076 of the Administrator
maintained at the office of PNC at One PNC Plaza, 249 Fifth Avenue, Pittsburgh, Pennsylvania
15222-2707, or such other account as may be so designated in writing by the Administrator to the
Servicer.

     “Administrator” has the meaning set forth in the preamble to the Agreement.

     “Adverse Claim” means a lien, security interest or other charge or encumbrance, or any
other type of preferential arrangement; it being understood that any thereof in favor of, or
assigned to, the Administrator (for the benefit of the Purchasers) shall not constitute an Adverse
Claim.

     “Affected Person” has the meaning set forth in Section 1.7 of the Agreement.

     “Affiliate” means, as to any Person: (a) any Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person, or (b) who is a
director or officer: (i) of such Person or (ii) of any Person described in clause (a),
except that, in the case of each Conduit Purchaser, Affiliate shall mean the holder(s) of its
capital stock or membership interests, as the case may be. For purposes of this definition,
control of a Person shall mean the power, direct or indirect: (x) to vote 25% or more of the
securities having ordinary voting power for the election of directors or managers of such Person,
or (y) to direct or cause the direction of the management and policies of such Person, in either
case whether by ownership of securities, contract, proxy or otherwise.

     “Aggregate Capital” means at any time the aggregate outstanding Capital of all
Purchasers at such time.

     “Aggregate Discount” means, at any time, the sum of the aggregate for each Purchaser
of the accrued and unpaid Discount with respect to each such Purchaser’s Capital at such time.

     “Agreement” has the meaning set forth in the preamble to the Agreement.

     “Alternate Rate” for any Settlement Period for any Capital (or portion thereof) funded
by any Purchaser other than through the issuance of Notes means an interest rate per annum equal

I-1

 

to: (a) 3.25% per annum above the Euro-Rate for such Settlement Period, or, in the sole
discretion of the applicable Purchaser Agent (b) the Base Rate for such Settlement Period;
provided, however, that the “Alternate Rate” for any day while a Termination Event or an Unmatured
Termination Event exists shall be an interest rate equal to the greater of (i) 3.0% per annum
above the Base Rate as in effect on such day and (ii) the “Alternate Rate” as calculated in
clause (a) above.

     “Arch Coal” has the meaning set forth in the preamble to the Agreement.

     “Arch Sales” has the meaning set forth in the preamble to the Agreement.

     “Arch Western Group” means Arch Western Resources, LLC, a Delaware limited liability
company, and any of its Subsidiaries.

     “Assumption Agreement” means an agreement substantially in the form set forth in
Annex F to this Agreement.

     “Atlantic” has the meaning set forth in Section 1.2(i)(ii) of the Agreement.

     “Attorney Costs” means and includes all reasonable fees, costs, expenses and
disbursements of any law firm or other external counsel and all reasonable disbursements of
internal counsel.

     “Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C. §
101, et seq.), as amended from time to time.

     “Base Rate” means, with respect to any Purchaser, for any day, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate shall be at all times equal to
the higher of:

     (a) the rate of interest in effect for such day as publicly announced from time to time
by the applicable Purchaser Agent (or applicable Related Committed Purchaser or, in the case
of determining the Base Rate for purposes of calculating the Yield Reserve, the
Administrator) as its “reference rate”. Such “reference rate” is set by the applicable
Purchaser Agent (or the applicable Related Committed Purchaser or the Administrator) based
upon various factors, including such Person’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some loans, which
may be priced at, above or below such announced rate), and

     (b) 0.50% per annum above the latest Federal Funds Rate.

     “Benefit Plan” means any employee benefit pension plan as defined in Section 3(2) of
ERISA in respect of which the Seller, the Transferor, any Originator, ACI or any ERISA Affiliate
is, or at any time during the immediately preceding six years was, an “employer” as defined in
Section 3(5) of ERISA.

     “Business Day” means any day (other than a Saturday or Sunday) on which: (a) banks
are not authorized or required to close in New York City, New York, or Pittsburgh,

I-2

 

Pennsylvania; and (b) if this definition of “Business Day” is utilized in connection with the
Euro-Rate, dealings are carried out in the London interbank market.

     “Capital” means, with respect to any Purchaser, the aggregate amounts paid to the
Seller in connection with Funded Purchases in respect of the Purchased Interest by such Purchaser
pursuant to Section 1.2 of the Agreement (including such Purchaser’s Pro Rata Share of the
aggregate amount of all unreimbursed draws deemed to be Funded Purchases pursuant to Section
1.2(e)), as reduced from time to time by Collections distributed and applied on account of such
Capital pursuant to Section 1.4(d) of the Agreement; provided, that if such Capital
shall have been reduced by any distribution and thereafter all or a portion of such distribution is
rescinded or must otherwise be returned for any reason, such Capital shall be increased by the
amount of such rescinded or returned distribution as though it had not been made.

     “Change in Control” means (a) ACI ceases to own, directly or indirectly, 100% of the
issued and outstanding capital stock of Arch Sales free and clear of all Adverse Claims (other than
the lien in favor of PNC, as administrative agent or collateral agent, under any revolving credit
agreement of ACI) or ceases to own, directly or indirectly, 100% of the membership interests of the
Seller free and clear of all Adverse Claims (other than the lien in favor of PNC, as administrative
agent or collateral agent, under any revolving credit agreement of ACI); or (b) any person or group
of persons (within the meaning of Sections 13(d) or 14(a) of the Securities Exchange Act of 1934,
as amended) shall have acquired beneficial ownership of (within the meaning of Rule 13d-3
promulgated by the SEC under said Act) 35% or more of the voting capital stock of ACI; or
(c) within a period of twelve (12) consecutive calendar months, individuals who (1) were directors
of ACI on the first day of such period, (2) were nominated for election by the ACI, or (3) were
appointed by the board shall cease to constitute a majority of the board of directors of ACI.

     “Closing Date” means February 24, 2010.

     “Collections” means, with respect to any Pool Receivable: (a) all funds that are
received by any Originator, the Transferor, ACI, the Seller or the Servicer in payment of any
amounts owed in respect of such Receivable (including purchase price, finance charges, interest and
all other charges), or applied to amounts owed in respect of such Receivable (including insurance
payments and net proceeds of the sale or other disposition of repossessed goods or other collateral
or property of the related Obligor or any other Person directly or indirectly liable for the
payment of such Pool Receivable and available to be applied thereon), (b) all amounts deemed to
have been received pursuant to Section 1.4(e) of the Agreement and (c) all other proceeds
of such Pool Receivable.

     “Commitment” means, with respect to any Related Committed Purchaser, LC Participant or
LC Bank, as applicable, the maximum aggregate amount which such Purchaser is obligated to pay
hereunder on account of all Funded Purchases and all drawings under all Letters of Credit, on a
combined basis, as set forth on Schedule IV or in the Assumption Agreement or other
agreement pursuant to which it became a Purchaser, as such amount may be modified in connection
with any subsequent assignment pursuant to Section 5.3 or in connection with a change in
the Purchase Limit pursuant to Section 1.1(b) of the Agreement). For the avoidance of

I-3

 

doubt, in no event shall the sum of the aggregate Commitments of all Purchasers in a Purchaser
Group exceed such Purchaser Group’s Group Commitment.

     “Commitment Percentage” means, for each Related Committed Purchaser or related LC
Participant in a Purchaser Group, the Commitment of such Related Committed Purchaser or related LC
Participant, as the case may be, divided by the total of all Commitments of all Related Committed
Purchasers or related LC Participants, as the case may be, in such Purchaser Group.

     “Commodity Hedge” means a price protection agreement: (i) related to crude oil,
diesel fuel, heating oil, coal, SO2 allowances or other commodities used in the ordinary course of
business of ACI and its Affiliates and (ii) entered into by ACI and its Affiliates for hedging
purposes in the ordinary course of the operations of their business.

     “Company Note” has the meaning set forth in Section 3.1 of the Purchase and
Sale Agreement.

     “Concentration Percentage” means: (a) for any Group A Obligor, 16%, (b) for any
Group B Obligor, 16%, (c) for any Group C Obligor, 8% and (d) for any Group D Obligor, 4%;
provided, that the Concentration Percentage for TVA, so long as TVA maintains a long term
debt rating of “AAA” by Standard & Poor’s and “Aaa” by Moody’s, shall be 25%.

     “Concentration Reserve” means at any time, the product of (a) the Aggregate Capital
plus the LC Participation Amount, and (b)(i) the Concentration Reserve Percentage divided by (ii) 1
minus the Concentration Reserve Percentage.

     “Concentration Reserve Percentage” means, at any time, the (a) largest of the
following: (i) the sum of the five (5) largest Group D Obligor Receivables balances (up to the
Concentration Percentage for each such Obligor), (ii) the sum of the three (3) largest Group C
Obligor Receivables balances (up to the Concentration Percentage for each such Obligor), (iii) the
sum of the two (2) largest Group B Obligor Receivables balance (up to the Concentration Percentage
for each such Obligor), and (iv) the largest Group A Obligor Receivables balance (up to the
Concentration Percentage for such Obligor), divided by (b) the sum of the outstanding balances of
all Eligible Receivables.

     “Conduit” has the meaning set forth in Section 5.3(c) of the Agreement.

     “Conduit Purchaser” means each commercial paper conduit that is a party to this
Agreement, as a purchaser, or that becomes a party to this Agreement as a purchaser pursuant to an
Assumption Agreement or otherwise.

     “Contract” means, with respect to any Receivable, any and all contracts, instruments,
agreements, leases, invoices, notes or other writings pursuant to which such Receivable arises or
that evidence such Receivable or under which an Obligor becomes or is obligated to make payment in
respect of such Receivable.

     “CP Rate” means, for any Conduit Purchaser and for any Settlement Period for any
Portion of Capital (a) the per annum rate equivalent to the weighted average cost
(as determined by the applicable Purchaser Agent and which shall include commissions of placement
agents and

I-4

 

dealers, incremental carrying costs incurred with respect to Notes of such Person maturing on
dates other than those on which corresponding funds are received by such Conduit Purchaser, other
borrowings by such Conduit Purchaser (other than under any Program Support Agreement) and any other
costs associated with the issuance of Notes) of or related to the issuance of Notes that are
allocated, in whole or in part, by the applicable Conduit Purchaser to fund or maintain such
Portion of Capital (and which may be also allocated in part to the funding of other assets of such
Conduit Purchaser); provided, however, that if any component of such rate is a
discount rate, in calculating the “CP Rate” for such Portion of Capital for such Settlement
Period, the applicable Purchaser Agent shall for such component use the rate resulting from
converting such discount rate to an interest bearing equivalent rate per annum;
provided, further, that notwithstanding anything in this Agreement or the other
Transaction Documents to the contrary, the Seller agrees that any amounts payable to Conduit
Purchasers in respect of Discount for any Settlement Period with respect to any Portion of Capital
funded by such Conduit Purchasers at the CP Rate shall include an amount equal to the portion of
the face amount of the outstanding Notes issued to fund or maintain such Portion of Capital that
corresponds to the portion of the proceeds of such Notes that was used to pay the interest
component of maturing Notes issued to fund or maintain such Portion of Capital, to the extent that
such Conduit Purchaser had not received payments of interest in respect of such interest component
prior to the maturity date of such maturing Notes (for purposes of the foregoing, the “interest
component” of Notes equals the excess of the face amount thereof over the net proceeds received by
such Conduit Purchaser from the issuance of Notes, except that if such Notes are issued on an
interest-bearing basis its “interest component” will equal the amount of interest accruing on such
Notes through maturity) or (b) any other rate designated as the “CP Rate” for such Conduit
Purchaser in an Assumption Agreement or Transfer Supplement or other document pursuant to which
such Person becomes a party as a Conduit Purchaser to this Agreement, or any other writing or
agreement provided by such Conduit Purchaser to the Seller, the Servicer and the applicable
Purchaser Agent from time to time. The “CP Rate” for any day while a Termination Event or an
Unmatured Termination Event exists shall be an interest rate equal to the greater of (a) 3.0% per
annum above the Base Rate as in effect on such day and (b) the Alternate Rate as calculated in the
definition thereof.

     “Credit Agreement” means that certain Credit Agreement dated as of December 22, 2004,
by and among ACI, the banks party thereto, PNC, as administrative agent, Citicorp USA, Inc. and
JPMorgan Chase Bank, N.A. and Wachovia Bank, National Association, as co-syndication agents. Bank
of America, N.A., as documentation agent and PNC Capital Markets, Inc., Citigroup Global Markets
Inc. and J.P. Morgan Securities Inc., as joint lead arrangers, as in effect on the date hereof.

     “Credit Agricole” has the meaning set forth in Section 1.2(i)(i) of the
Agreement.

     “Credit and Collection Policy” means, as the context may require, those receivables
credit and collection policies and practices of the Originators and the Transferor in effect on the
Closing Date and described in Schedule I to the Agreement, as modified in compliance with
the Agreement.

     “Cut-off Date” has the meaning set forth in the Sale Agreements.

I-5

 

     “Days’ Sales Outstanding” means, for any calendar month, an amount computed as of the
last day of such calendar month equal to: (a) the average of the Outstanding Balance of all Pool
Receivables as of the last day of each of the three most recent calendar months ended on the last
day of such calendar month divided by (b) (i) the aggregate credit sales made by the Originators
and the Transferor during the three calendar months ended on the last day of such calendar month
divided by (ii) 90.

     “Debt” means, as to any Person at any time, any and all indebtedness, obligations or
liabilities (whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute
or contingent, or joint or several) of such Person for or in respect of: (i) borrowed money,
(ii) amounts raised under or liabilities in respect of any note purchase or acceptance credit
facility, (iii) reimbursement obligations (contingent or otherwise) under any letter of credit,
(iv) any other transaction (including production payments (excluding royalties), installment
purchase agreements, forward sale or purchase agreements, capitalized leases and conditional sales
agreements) having the commercial effect of a borrowing of money entered into by such Person to
finance its operations or capital requirements (but not including trade payable and accrued
expenses incurred in the ordinary course of business which are not represented by a promissory note
or other evidence of indebtedness and which are not more than thirty (30) days past due), or
(v) any Guaranty of any such Indebtedness. It is understood that obligations in respect of any
Hedging Transaction shall not be deemed to be Debt.

     “Declining Conduit Purchaser” has the meaning set forth in Section 1.4(b)(ii)
of this Agreement.

     “Declining Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Default Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each calendar month
by dividing: (a) the aggregate Outstanding Balance of all Pool Receivables that became Defaulted
Receivables during such month (other than Receivables that became Defaulted Receivables as a result
of an Insolvency Proceeding with respect to the Obligor thereof during such month), by (b) the
aggregate credit sales made by the Originators and the Transferor during the month that is seven
calendar months before such month.

     “Defaulted Receivable” means a Receivable:

     (a) as to which any payment, or part thereof, remains unpaid for more than 150
days from the original due date for such payment, or

     (b) without duplication (i) as to which an Insolvency Proceeding shall have
occurred with respect to the Obligor thereof or any other Person obligated thereon
or owning any Related Security with respect thereto, or (ii) that has been written
off the applicable Originator’s or the Transferor’s books as uncollectible.

     “Delinquency Ratio” means the ratio (expressed as a percentage and rounded to the
nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each
calendar month by dividing: (a) the aggregate Outstanding Balance of all Pool Receivables that

I-6

 

were Delinquent Receivables on such day by (b) the aggregate Outstanding Balance of all Pool
Receivables on such day.

     “Delinquent Receivable” means a Receivable as to which any payment, or part thereof,
remains unpaid for more than 60 days from the original due date for such payment.

     “Dilution Horizon” means, for any calendar month, the ratio (expressed as a percentage
and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward) computed as of the
last day of such calendar month of: (a) the aggregate credit sales made by the Originators and the
Transferor during the two most recent calendar months to (b) the Net Receivables Pool Balance at
the last day of the most recent calendar month.

     “Dilution Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100th of 1%, with 5/1000th of 1% rounded upward), computed as of the last day of each calendar
month by dividing: (a) the aggregate amount of payments made or owed by the Seller pursuant to
Section 1.4(e)(i) of the Agreement during such calendar month by (b) the aggregate credit
sales made by the Originators and the Transferor during the calendar month that is one month prior
to such calendar month.

     “Dilution Reserve” means, on any day, an amount equal to: (a) the sum of the Capital
plus the LC Participation Amount at the close of business of the Servicer on such day multiplied by
(b) (i) the Dilution Reserve Percentage on such day, divided by (ii) 100% minus the
Dilution Reserve Percentage on such day.

     “Dilution Reserve Percentage” means, on any day, the product of (a) the Dilution
Horizon multiplied by (b) the sum of (i) 2.25 times the average of the Dilution Ratios for the
twelve most recent calendar months and (ii) the Spike Factor.

     “Discount” means, with respect to any Purchaser:

     (a) for any Portion of Capital for any Settlement Period with respect to any Purchaser
to the extent such Portion of Capital will be funded by such Purchaser during such
Settlement Period through the issuance of Notes:

CPR x C x ED/360

     (b) for any Portion of Capital for any Settlement Period with respect to any Purchaser
to the extent such Portion of Capital will not be funded by such Purchaser during such
Settlement Period through the issuance of Notes or, if the LC Bank and/or any LC Participant
has made, or has deemed to have made, a Funded Purchase in connection with any drawing under
a Letter of Credit which accrues Discount pursuant to Section 1.2(e) of the
Agreement:

AR x C x ED/Year + TF

I-7

 

     where:

	 	 	 	 	 	 	 

	 

	 	AR
	 	=
	 	the Alternate Rate for such Portion of Capital for such
Settlement Period with respect to such Purchaser,
	 
	 

	 	C
	 	=
	 	the Portion of Capital during such Settlement Period with
respect to such Purchaser,
	 
	 

	 	CPR
	 	=
	 	the CP Rate for the Portion of Capital for such Settlement
Period with respect to such Purchaser,
	 
	 

	 	ED
	 	=
	 	the actual number of days during such Settlement Period,
	 
	 

	 	Year
	 	=
	 	if such Portion of Capital is funded based upon: (i) the
Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366 days, as applicable,
and
	 
	 

	 	TF
	 	=
	 	the Termination Fee, if any, for the Portion of Capital for
such Settlement Period with respect to such Purchaser;

provided, that no provision of the Agreement shall require the payment or permit the
collection of Discount in excess of the maximum permitted by applicable law; and provided
further, that Discount for the Portion of Capital shall not be considered paid by any
distribution to the extent that at any time all or a portion of such distribution is rescinded or
must otherwise be returned for any reason.

     “Drawing Date” has the meaning set forth in Section 1.14 of the Agreement.

     “Eligible Assignee” means any bank or financial institution acceptable to the LC Bank
and the Administrator.

     “Eligible Foreign Obligor” means an Obligor which is a resident of any country (other
than the United States of America) that has a short-term foreign currency rating (or, if such
country does not have such a short-term foreign currency rating, a long-term foreign currency
rating) of at least “A2” (or “A”) by Standard & Poor’s and “P-1” (or “A2”) by Moody’s.

     “Eligible Receivable” means, at any time, a Pool Receivable:

     (a) the Obligor of which is: (i) (A) United States resident or (B) an Eligible Foreign
Obligor; (ii) not (A) a United States Federal Government Authority or (B) a governmental
entity within the State of Ohio; provided that TVA shall not be subject to the
restriction set forth in clause (ii)(A) above; (iii) not subject to any action of
the type described in paragraph (f) of Exhibit V to the Agreement; and (iv)
not an Affiliate of ACI, the Transferor, the Servicer or any other Originator,

     (b) that is denominated and payable only in U.S. dollars in the United States, and the
Obligor with respect to which has been instructed to remit Collections in respect thereof to
a Lock-Box Account in the United States of America,

I-8

 

     (c) that does not have a stated maturity which is more than 35 days after the original
invoice date of such Receivable; provided, that up to 10% of “Eligible Receivables”
may have stated maturities of greater than 35 days and no more than 60 days after the
original invoice date of such Receivables,

     (d) that arises under a duly authorized Contract for the sale and delivery of goods or
services in the ordinary course of the applicable Originator’s or the Transferor’s business,

     (e) that arises under a duly authorized Contract that is in full force and effect and
that is a legal, valid and binding obligation of the related Obligor, enforceable against
such Obligor in accordance with its terms,

     (f) that conforms in all material respects with all applicable laws, rulings and
regulations in effect,

     (g) that is not the subject of any asserted dispute, offset, hold back, defense,
Adverse Claim or other claim, provided that, with respect to any Pool Receivable which is
subject to any such claim, the amount of such Pool Receivable which shall be treated as an
Eligible Receivable shall equal the excess of the amount of such Pool Receivable over the
amount of such claim asserted by or available to the related Obligor,

     (h) that satisfies all applicable requirements of the applicable Credit and Collection
Policy,

     (i) that has not been modified, waived or restructured since its creation, except as
permitted pursuant to Section 4.2 of the Agreement,

     (j) in which the Seller owns good and marketable title, free and clear of any Adverse
Claims, and that is freely assignable by the Seller (including without any consent of the
related Obligor),

     (k) for which the Administrator (on behalf of the Purchasers) shall have a valid and
enforceable undivided percentage ownership or security interest, to the extent of the
Purchased Interest, and a valid and enforceable first priority perfected security interest
therein and in the Related Security and Collections with respect thereto, in each case free
and clear of any Adverse Claim,

     (l) that constitutes an account as defined in the UCC, and that is not evidenced by
instruments or chattel paper,

     (m) that is neither a Defaulted Receivable nor a Delinquent Receivable,

     (n) for which neither the Originator thereof, the Transferor, the Seller nor the
Servicer has established any offset arrangements with the related Obligor,

     (o) for which the sum of the Outstanding Balances of all Receivables of the related
Obligor with respect to which any payment, or part thereof, remains unpaid for

I-9

 

more than 90 days from the original due date for such payment do not exceed 35.00% of
the Outstanding Balance of all such Obligor’s Receivables,

     (p) that represents amounts earned and payable by the Obligor that are not subject to
the performance of additional services by the Originator thereof or the Transferor,

     (q) that if such Receivable has not yet been billed, the related coal has been shipped
within the last 60 days; and

     (r) that if such Receivable is a Rio Tinto Receivable, a Rio Tinto Trigger Event has
not occurred with respect to any Rio Tinto Receivable (it being understood that upon the
occurrence of a Rio Tinto Trigger Event with respect to any Receivable, then on and after
such time, no Rio Tinto Receivables, whether or not then in the Receivables Pool prior to
such Rio Tinto Trigger Event, shall be an Eligible Receivable).

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statute of similar import, together with the rulings and
regulations thereunder, in each case as in effect from time to time. References to sections of
ERISA also refer to any successor sections.

     “ERISA Affiliate” means: (a) any corporation that is a member of the same controlled
group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as the
Seller, the Transferor, any Originator or ACI, (b) a trade or business (whether or not
incorporated) under common control (within the meaning of Section 414(c) of the Internal Revenue
Code) with the Seller, the Transferor, any Originator or ACI, or (c) a member of the same
affiliated service group (within the meaning of Section 414(m) of the Internal Revenue Code) as the
Seller, the Transferor, any Originator, any corporation described in clause (a) or any
trade or business described in clause (b).

     “Euro-Rate” means with respect to any Settlement Period the interest rate per annum
determined by the applicable Purchaser Agent by dividing (the resulting quotient rounded upwards,
if necessary, to the nearest 1/100th of 1% per annum) (i) the rate of interest determined by such
Purchaser Agent in accordance with its usual procedures (which determination shall be conclusive
absent manifest error) to be the rate per annum for deposits in U.S. dollars as reported by
Bloomberg Finance L.P. and shown on US0001M Screen as the composite offered rate for London
interbank deposits for such period (or on any successor or substitute page of such service, or any
successor or substitute for such service, providing rate quotations comparable to those currently
provided on such page of such service, as determined by such Purchase Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar deposits in the London
interbank market at or about 11:00 a.m. (London time) on the Business Day which is two (2) Business
Days prior to the first day of such Settlement Period for an amount comparable to the Portion of
Capital to be funded at the Alternate Rate and based upon the Euro-Rate during such Settlement
Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve Percentage. The Euro-Rate may
also be expressed by the following formula:

     Euro-Rate = Composite of London interbank offered rates

I-10

 

shown on Bloomberg Finance L.P. Screen

US0001M or appropriate successor

1.00 - Euro-Rate Reserve Percentage

where “Euro-Rate Reserve Percentage” means, the maximum effective percentage in effect on
such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor)
for determining the reserve requirements (including without limitation, supplemental, marginal, and
emergency reserve requirements) with respect to eurocurrency funding (currently referred to as
“Eurocurrency Liabilities”). The Euro-Rate shall be adjusted with respect to any Portion
of Capital funded at the Alternate Rate and based upon the Euro-Rate that is outstanding on the
effective date of any change in the Euro-Rate Reserve Percentage as of such effective date. The
applicable Purchaser Agent shall give prompt notice to the Seller of the Euro-Rate as determined or
adjusted in accordance herewith (which determination shall be conclusive absent manifest error).

     “Excess Concentration” means the sum of the following amounts: (i) the amount by which
the Outstanding Balance of Eligible Receivables of each Obligor then in the Receivables Pool
exceeds an amount equal to the Concentration Percentage for such Obligor multiplied by the
Outstanding Balance of all Eligible Receivables then in the Receivables Pool, plus (ii) the amount
by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool
the Obligor of which is a Canadian resident exceeds 15% of the aggregate Outstanding Balance of all
Eligible Receivables then in the Receivables Pool, plus (iii) the amount by which the aggregate
Outstanding Balance of all Eligible Receivables then in the Receivable Pool the Obligor of which is
an Eligible Foreign Obligor (other than a resident of Canada) exceeds 5% of the aggregate
Outstanding Balance of all Eligible Receivables then in the Receivables Pool, plus (iv) the amount
by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool
the coal with respect to which has been shipped but not yet billed for more than 30 days but not
more than 60 days from shipment exceeds 10% of the aggregate Outstanding Balance of all Eligible
Receivables then in the Receivables Pool.

     “Excluded Subsidiary” means Arch Western Acquisition Corporation, a Delaware
corporation, Arch Western Resources, LLC, a Delaware limited liability company, and any
Subsidiaries of Arch Western Resources, LLC.

     “Exiting Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Exiting Purchaser” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Facility Termination Date” means the earliest to occur of: (a) May 22, 2013, (b) the
date determined pursuant to Section 2.2 of the Agreement, (c) the date the Purchase Limit
reduces to zero pursuant to Section 1.1(b) of the Agreement, (d) with respect to each
Purchaser Group, the earliest to occur of (i) the date that the commitments of the related
Liquidity Providers terminate under the Liquidity Agreement and (ii) the date that the Commitments
of all Related Committed Purchasers in such Purchaser Group terminate hereunder, (e) the date which
is 30 days after the date on which the Administrator has received written notice from the Seller of
its election to terminate the Purchase Facility and (f) with respect to the LC Bank, any LC

I-11

 

Participant or any Related Committed Purchaser, the LC Bank’s, such LC Participant’s or such
Related Committed Purchaser’s Scheduled Commitment Termination Date.

     “FAS 166/167” has the meaning set forth in Section 1.7(c) of the Agreement.

     “FASB” has the meaning set forth in Section 1.7(a) of the Agreement.

     “Federal Funds Rate” means, for any day, the per annum rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication, published by the Federal
Reserve Board (including any such successor, “H.15(519)”) for such day opposite the caption
“Federal Funds (Effective).” If on any relevant day such rate is not yet published in H. 15(519),
the rate for such day will be the rate set forth in the daily statistical release designated as the
Composite 3:30 p.m. Quotations for U.S. Government Securities, or any successor publication,
published by the Federal Reserve Bank of New York (including any such successor, the “Composite
3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective Rate.” If on any
relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30
p.m. Quotations, the rate for such day will be the arithmetic mean as determined by the
Administrator of the rates for the last transaction in overnight Federal funds arranged before 9:00
a.m. (New York time) on that day by each of three leading brokers of Federal funds transactions in
New York City selected by the Administrator.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any entity succeeding to any of its principal functions.

     “Fee Letters” has the meaning set forth in Section 1.5 of the Agreement.

     “Fees” means the fees payable by the Seller pursuant to the applicable Fee Letter.

     “Funded Purchase” shall mean a purchase or deemed purchase of undivided percentage
ownership interests in the Purchased Interest under the Agreement which (i) is paid for in cash,
including pursuant to Section 1.1(b) (other than through reinvestment of Collections
pursuant to Section 1.4(b) of the Agreement) or (ii) is treated as a Funded Purchase
pursuant to Section 1.2(e) of the Agreement and/or any of the provisions set forth in
Sections 1.11 through 1.20 of the Agreement.

     “Governmental Acts” has the meaning set forth in Section 1.19 of the Agreement.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government, including any court, and any Person owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

     “Group A Obligor” means any Obligor with a short-term rating of at least: (a) “A1” by
Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a
rating of “A+” or better by Standard & Poor’s on its long-term senior unsecured and
uncredit-enhanced debt securities, and (b) “P-1” by Moody’s, or if such Obligor does not
have a short-

I-12

 

term rating from Moody’s, “Al” or better by Moody’s on its long-term senior unsecured and
uncredit-enhanced debt securities.

     “Group B Obligor” means an Obligor, not a Group A Obligor, with a short-term rating of
at least: (a) “A-2” by Standard & Poor’s, or if such Obligor does not have a short-term rating
from Standard & Poor’s, a rating of “BBB+” to “A” by Standard & Poor’s on its long-term senior
unsecured and uncredit-enhanced debt securities, and (b) “P-2” by Moody’s, or if such
Obligor does not have a short-term rating from Moody’s, “Baal” to “A2” by Moody’s on its long-term
senior unsecured and uncredit-enhanced debt securities.

     “Group Capital” means, with respect to any Purchaser Group, an amount equal to the
aggregate outstanding Capital of all Purchasers within such Purchaser Group.

     “Group C Obligor” means an Obligor, not a Group A Obligor or a Group B Obligor, with a
short-term rating of at least: (a) “A-3” by Standard & Poor’s, or if such Obligor does not have a
short-term rating from Standard & Poor’s, a rating of “BBB-” to “BBB” by Standard & Poor’s on its
long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-3” by Moody’s,
or if such Obligor does not have a short-term rating from Moody’s, “Baa3” to “Baa2” by Moody’s on
its long-term senior unsecured and uncredit-enhanced debt securities.

     “Group Commitment” means, with respect to any Purchaser Group, the aggregate of the
Commitments of each Related Committed Purchaser within such Purchaser Group, which amount is set
forth on Schedule IV hereto.

     “Group D Obligor” means any Obligor that is not a Group A Obligor, Group B Obligor or
Group C Obligor.

     “Guaranty” of any Person means any obligation of such Person guarantying or in effect
guarantying any liability or obligation of any other Person in any manner, whether directly or
indirectly, including any such liability arising by virtue of partnership agreements, including any
agreement to indemnify or hold harmless any other Person, any performance bond or other suretyship
arrangement and any other form of assurance against loss, except endorsement of negotiable or other
instruments for deposit or collection in the ordinary course of business.

     “Hedging Transaction” means any of the following transactions by ACI or any of its
Subsidiaries: any rate swap transaction, basis swap, forward rate transaction, commodity swap,
commodity option, equity or equity index swap, equity or equity index option, bond option, interest
rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction,
currency swap transaction, cross-currency rate swap transaction, currency option or any other
similar transaction or any combination of the foregoing transactions, including, without
limitation, any Interest Rate Hedge or any Commodity Hedge.

     “Indemnified Amounts” has the meaning set forth in Section 3.1 of the
Agreement.

     “Indemnified Party” has the meaning set forth in Section 3.1 of the Agreement.

     “Independent Director” has the meaning set forth in paragraph 3(c) of
Exhibit IV to the Agreement.

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     “Information Package” means a report, in substantially the form of Annex A to
the Agreement, furnished to the Administrator pursuant to the Agreement.

     “Insolvency Proceeding” means (a) any case, action or proceeding before any court or
other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors of a Person, composition, marshaling of assets for creditors of a Person, or
other, similar arrangement in respect of its creditors generally or any substantial portion of its
creditors, in each of cases (a) and (b) undertaken under U.S. Federal, state or foreign law,
including the Bankruptcy Code.

     “Interest Rate Hedge” means an interest rate exchange, collar, cap, swap, adjustable
strike cap, adjustable strike corridor or similar agreements entered into by ACI or any of its
Affiliates in the ordinary course operations of their business.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and any successor statute of similar import, together with the regulations thereunder, in
each case as in effect from time to time. References to sections of the Internal Revenue Code also
refer to any successor sections.

     “LC Bank” has the meaning set forth in the preamble to the Agreement.

     “LC Collateral Account” means the account designated as the LC Collateral Account
established and maintained by the Administrator (for the benefit of the LC Bank and the LC
Participants), or such other account as may be so designated as such by the Administrator.

     “LC Participant” means each Person listed as such (and its respective Commitment) for
each Purchaser Group as set forth on the signature pages of this Agreement or in any Assumption
Agreement or Transfer Supplement.

     “LC Participation Amount” shall mean, at any time, the then sum of the undrawn amounts
of all outstanding Letters of Credit.

     “Letter of Credit” shall mean any stand-by letter of credit issued by the LC Bank for
the account of the Seller pursuant to the Agreement.

     “Letter of Credit Application” has the meaning set forth in Section 1.12 of
the Agreement.

     “Liquidity Agent” means any bank or other financial institution acting as agent for
the various Liquidity Providers under each Liquidity Agreement.

     “Liquidity Agreement” means any agreement entered into in connection with this
Agreement pursuant to which a Liquidity Provider agrees to make purchases or advances to, or
purchase assets from, any Conduit Purchaser in order to provide liquidity for such Conduit
Purchaser’s Purchases.

I-14

 

     “Liquidity Provider” means each bank or other financial institution that provides
liquidity support to any Conduit Purchaser pursuant to the terms of a Liquidity Agreement.

     “LLC Agreement” means the limited liability company agreement of Seller.

     “Lock-Box Account” means each account listed on Schedule II to this Agreement
(in each case, in the name of the Seller) and maintained at a bank or other financial institution
acting as a Lock-Box Bank pursuant to a Lock-Box Agreement for the purpose of receiving
Collections.

     “Lock-Box Agreement” means each agreement, in form and substance satisfactory to the
Administrator, among the Seller, the Servicer, the Administrator and a Lock-Box Bank, governing the
terms of the related Lock-Box Accounts.

     “Lock-Box Bank” means any of the banks or other financial institutions holding one or
more Lock-Box Accounts.

     “Loss Reserve” means, on any date, an amount equal to: (a) the sum of the Aggregate
Capital plus the LC Participation Amount at the close of business of the Servicer on such date
multiplied by (b) (i) the Loss Reserve Percentage on such date divided by (ii) 100% minus the Loss
Reserve Percentage on such date.

     “Loss Reserve Percentage” means, on any date,(i) the product of (A) 2.25 times (B) the
highest average of the Default Ratios for any three consecutive calendar months during the twelve
most recent calendar months times (C) the aggregate credit sales made by the Originators and the
Transferor during the 5 most recent calendar months divided by (ii) the Net Receivables Pool
Balance as of such date.

     “Majority LC Participants” means, at any time, the LC Participants whose Commitments
aggregate more than 50% of the Commitments of all LC Participants at such time; provided,
that so long as the aggregate of Commitments of all LC Participants in any Purchaser Group is
greater than 50% of the aggregate of the Commitments of all LC Participants in all Purchaser
Groups, then “Majority LC Participants” shall mean the LC Participants, in a minimum of two
Purchaser Groups, whose Commitments aggregate more than 50% of the aggregate of the Commitments of
all LC Participants in all Purchaser Groups.

     “Majority Purchaser Agents” means, at any time, the Purchaser Agents for the Purchaser
Groups with Related Committed Purchasers whose Commitments aggregate more than 50% of the aggregate
of the Commitments of all Related Committed Purchasers in all Purchaser Groups; provided,
that so long as the aggregate of the Commitments of all Related Committed Purchasers in any
Purchaser Group is greater than 50% of the aggregate of the Commitments of all Related Committed
Purchasers in all Purchaser Groups, then “Majority Purchaser Agents” shall mean a minimum of two
Purchaser Agents for Purchaser Groups with Related Committed Purchasers whose Commitments aggregate
more than 50% of the aggregate of the Commitments of all Related Committed Purchasers in all
Purchaser Groups.

     “Market Street” has the meaning set forth in the Preliminary Statements of the
Agreement.

I-15

 

     “Material Adverse Effect” means relative to any Person with respect to any event or
circumstance, a material adverse effect on:

     (a) the assets, operations, business or financial condition of such Person,

     (b) the ability of any such Person to perform its obligations under the Agreement or
any other Transaction Document to which it is a party,

     (c) the validity or enforceability of the Agreement or any other Transaction Document,
or the validity, enforceability or collectibility of any of the Pool Receivables, or

     (d) the status, perfection, enforceability or priority of the Administrator’s, any
Purchaser’s or the Seller’s interest in the Pool Assets.

     “Minimum Dilution Reserve” means, on any day, an amount equal to (a) the Minimum
Dilution Reserve Percentage divided by (b) 100% minus the Minimum Dilution Reserve Percentage on
such day.

     “Minimum Dilution Reserve Percentage” means, on any day, the product of (a) the
average of the Dilution Ratios for the twelve most recent calendar months multiplied by (b) the
Dilution Horizon.

     “Monthly Settlement Date” means the 21st day of each calendar month (or if such day is
not a Business Day, the next occurring Business Day); provided, however, that on and after the
occurrence and continuation of any Termination Event, the Monthly Settlement Date shall be the date
selected as such by the Administrator (with the consent or at the direction of the Majority
Purchaser Agents) from time to time (it being understood that the Administrator (with the
consent or at the direction of the Majority Purchaser Agents) may select such Monthly Settlement
Date to occur as frequently as daily) or, in the absence of any such selection, the date which
would be the Monthly Settlement Date pursuant to this definition).

     “Moody’s” means Moody’s Investors Service, Inc.

     “Mortgage” is defined in the Credit Agreement.

     “Net Receivables Pool Balance” means, at any time: (a) the Outstanding Balance of
Eligible Receivables then in the Receivables Pool minus (b) the Excess Concentration.

     “Notes” means short-term promissory notes issued, or to be issued, by any Conduit
Purchaser to fund its investments in accounts receivable or other financial assets.

     “Obligor” means, with respect to any Receivable, the Person obligated to make payments
pursuant to the Contract relating to such Receivable.

     “Order” has the meaning set forth in Section 1.20 of the Agreement.

I-16

 

     “Original Agreement” has the meaning set forth in Preliminary Statements of this
Agreement.

     “Original Agreement Outstanding Amounts” has the meaning set forth in the Preliminary
Statements of this Agreement.

     “Original Closing Date” means February 3, 2006.

     “Originator” and “Originators” have the meaning set forth in the Purchase and
Sale Agreement, as the same may be modified from time to time by adding new Originators or removing
Originators, in each case with the prior written consent of the Administrator.

     “Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof.

     “Participant” has the meaning set forth in Section 5.3(b) of this Agreement.

     “Paydown Notice” has the meaning set forth in Section 1.4(f)(i) of the
Agreement.

     “Performance Guarantor” means ACI.

     “Performance Guaranty” means the Performance Guaranty, dated as of February 3, 2006,
by the Performance Guarantor in favor of the Administrator for the benefit of the Purchasers and LC
Participants, as the same may be amended, restated, supplemented or otherwise modified from time to
time.

     “Permitted Merger” means (i) any merger of any existing Originator into any other
existing Originator or (ii) any merger of any existing Originator into ACI.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

     “PNC” has the meaning set forth in the preamble to the Agreement.

     “Pool Assets” has the meaning set forth in Section 1.2(d) of the Agreement.

     “Pool Receivable” means a Receivable in the Receivables Pool.

     “Portion of Capital” means, with respect to any Purchaser and its related Capital, the
portion of such Capital being funded or maintained by such Purchaser by reference to a particular
interest rate basis.

     “Program Support Agreement” means and includes any Liquidity Agreement and any other
agreement entered into by any Program Support Provider providing for: (a) the issuance of one or
more letters of credit for the account of any Conduit Purchaser, (b) the issuance of one or more
surety bonds for which any Conduit Purchaser is obligated to reimburse the applicable Program
Support Provider for any drawings thereunder, (c) the sale by any Conduit Purchaser to

I-17

 

any Program Support Provider of the Purchased Interest (or portions thereof) maintained by
such Conduit Purchaser and/or (d) the making of loans and/or other extensions of credit to any
Conduit Purchaser in connection with such Conduit Purchaser’s receivables-securitization program
contemplated in the Agreement, together with any letter of credit, surety bond or other instrument
issued thereunder.

     “Program Support Provider” means and includes, with respect to any Conduit Purchaser,
any Liquidity Provider and any other Person (other than any customer of such Conduit Purchaser) now
or hereafter extending credit or having a commitment to extend credit to or for the account of, or
to make purchases from, such Conduit Purchaser pursuant to any Program Support Agreement.

     “Pro Rata Share” shall mean, as to any LC Participant, a fraction, the numerator of
which equals the Commitment of such LC Participant at such time and the denominator of which equals
the aggregate of the Commitments of all LC Participants at such time.

     “Purchase” has the meaning set forth in Section 1.1(a) of this Agreement.

     “Purchase and Sale Agreement” means the Purchase and Sale Agreement, dated as of
February 3, 2006, between the Originators and the Transferor, as such agreement may be amended,
supplemented or otherwise modified from time to time.

     “Purchase and Sale Indemnified Amounts” has the meaning set forth in Section
9.1 of the Purchase and Sale Agreement.

     “Purchase and Sale Indemnified Party” has the meaning set forth in Section 9.1
of the Purchase and Sale Agreement.

     “Purchase and Sale Termination Date” has the meaning set forth in Section 1.4
of the Purchase and Sale Agreement.

     “Purchase and Sale Termination Event” has the meaning set forth in Section 8.1
of the Purchase and Sale Agreement.

     “Purchase Date” means the date on which a Funded Purchase or a reinvestment is made
pursuant to this Agreement.

     “Purchase Facility” has the meaning set forth in Section 1.1 of the Purchase
and Sale Agreement.

     “Purchase Limit” means $175,000,000, as such amount may be reduced pursuant to
Section 1.1 (b) of the Agreement or otherwise in connection with any Exiting Purchaser, or
increased pursuant to Section 1.1(f) of this Agreement. References to the unused portion
of the Purchase Limit shall mean, at any time, the Purchase Limit minus the sum of the then
Aggregate Capital plus the LC Participation Amount.

     “Purchase Notice” has the meaning set forth in Section 1.2(a) of the
Agreement.

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     “Purchase Price” has the meaning set forth in Section 2.1 of the Purchase and
Sale Agreement.

     “Purchase Report” has the meaning set forth in Section 2.1 of the Purchase and
Sale Agreement.

     “Purchased Interest” means, at any time, the undivided percentage ownership interest
in: (a) each and every Pool Receivable now existing or hereafter arising, (b) all Related Security
with respect to such Pool Receivables and (c) all Collections with respect to, and other proceeds
of, such Pool Receivables and Related Security. Such undivided percentage interest shall be
computed as:

Aggregate Capital + Adjusted LC

Participation Amount + Total Reserves

Net Receivables Pool Balance

The Purchased Interest shall be determined from time to time pursuant to Section 1.3 of the
Agreement.

     “Purchaser” means each Conduit Purchaser, Related Committed Purchaser, LC Participant
and the LC Bank.

     “Purchaser Agent” means each Person acting as agent on behalf of a Purchaser Group and
designated as a Purchaser Agent for such Purchaser Group on the signature pages to this Agreement
or any other Person who becomes a party to this Agreement as a Purchaser Agent pursuant to an
Assumption Agreement or a Transfer Supplement.

     “Purchaser Group” means, for any Conduit Purchaser, such Conduit Purchaser, together
with such Conduit Purchaser’s Related Committed Purchasers, related Purchaser Agent and related LC
Participants and, in the case of Market Street as a Conduit Purchaser, the LC Bank.

     “Purchasers’ Share” of any amount, at any time, means such amount multiplied by the
Purchased Interest at such time.

     “Purchasing Related Committed Purchaser” has the meaning set forth in Section
5.3(c) of this Agreement.

     “Ratable Share’ means, for each Purchaser Group, such Purchaser Group’s Group
Commitment divided by the aggregate Group Commitments of all Purchaser Groups.

     “Rating Agency” mean each of Standard & Poor’s and Moody’s (and/or each other rating
agency then rating the Notes of any Conduit Purchaser).

     “Receivable” means any indebtedness and other obligations owed to any Originator, the
Transferor or the Seller, or any right of the Seller, the Transferor or any Originator to payment
from or on behalf of, an Obligor, whether constituting an account, as-extracted collateral, chattel
paper, payment intangible, instrument or general intangible, in each instance arising in connection
with the sale of goods or the rendering of services, and includes, without limitation,

I-19

 

the obligation to pay any finance charges, fees and other charges with respect thereto.
Indebtedness and other obligations arising from any one transaction, including, without limitation,
indebtedness and other obligations represented by an individual invoice or agreement, shall
constitute a Receivable separate from a Receivable consisting of the indebtedness and other
obligations arising from any other transaction.

     “Receivables Pool” means, at any time, all of the then outstanding Receivables
purchased by the Seller pursuant to the Sale and Contribution Agreement prior to the Facility
Termination Date.

     “Reimbursement Obligation” has the meaning set forth in Section 1.14 of the
Agreement.

     “Related Committed Purchaser” means each Person listed as such for each Conduit
Purchaser as set forth on the signature pages of this Agreement or in any Assumption Agreement or
Transfer Supplement.

     “Related Rights” has the meaning set forth in Section 1.1 of the Purchase and
Sale Agreement.

     “Related Security” means, with respect to any Receivable:

     (a) all of the Seller’s, the Transferor’s and each Originator’s interest in any goods
(including returned goods), and documentation of title evidencing the shipment or storage of
any goods (including returned goods), the sale of which gave rise to such Receivable,

     (b) all instruments and chattel paper that may evidence such Receivable,

     (c) all other security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the Contract
related to such Receivable or otherwise, together with all UCC financing statements or
similar filings relating thereto,

     (d) all of the Seller’s, the Transferor’s and each Originator’s rights, interests and
claims under the Contracts and all guaranties, indemnities, insurance and other agreements
(including the related Contract) or arrangements of whatever character from time to time
supporting or securing payment of such Receivable or otherwise relating to such Receivable,
whether pursuant to the Contract related to such Receivable or otherwise, and

     (e) all of the Seller’s rights, interests and claims under the Sale Agreements and the
other Transaction Documents.

     “Restricted Payments” has the meaning set forth in Section 1(n) of Exhibit
IV of the Agreement.

     “Release Agreement” means, as the context may require, either of or both of (a) the
letter agreement dated as of February 3, 2006, and (b) the letter agreement dated as of February
24,

I-20

 

2010, in each case between ACI and PNC, as administrative agent and collateral agent, as may
be amended, modified, restated or replaced from time to time with the consent of the Administrator.

     “Rio Tinto” means Rio Tinto Energy America Inc.

     “Rio Tinto Receivable” means a Receivable (a) arising under the “SRP Contract” (as
such term is defined in the Coal Sales Agreement, dated October 1, 2009, by and among Arch Coal and
Kennecott Coal Sales Company (the “SRP Agreement”) and acquired by Arch Coal pursuant to
the terms and conditions of such SRP Agreement or (b) arising under a “Coal Sales Agreement” (as
such term is defined in the Arch Coal Supply Agreement, dated October 1, 2009, between Arch Coal
and Rio Tinto (the “Rio Tinto Agreement”) and acquired by Arch Coal pursuant to the terms
and conditions of such Rio Tinto Agreement.

     “Rio Tinto Trigger Event” means, with respect to all Rio Tinto Receivables, the first
to occur of (a) Rio Tinto shall fail to maintain a long term debt rating of at least “BBB-” by
Standard & Poor’s and “Baa3” by Moody’s and (b) the aggregate amount of any asserted
dispute, offset, hold back, defense, or Adverse Claim outstanding against all Rio Tinto Receivables
shall be greater than $50,000.

     “Sale Agreements” means, collectively the Purchase and Sale Agreement and the Sale and
Contribution Agreement.

     “Sale and Contribution Agreement” means the Sale and Contribution Agreement, dated as
of February 3, 2006, between the Transferor and the Seller, as such agreement may be amended,
supplemented or otherwise modified from time to time.

     “Sale and Contribution Indemnified Amounts” has the meaning set forth in Section
9.1 of the Sale and Contribution Agreement.

     “Sale and Contribution Indemnified Party” has the meaning set forth in Section
9.1 of the Sale and Contribution Agreement.

     “Sale and Contribution Termination Date” has the meaning set forth in Section
1.4 of the Sale and Contribution Agreement.

     “Sale and Contribution Termination Event” has the meaning set forth in Section
8.1 of the Sale and Contribution Agreement.

     “Scheduled Commitment Termination Date” means with respect to the LC Bank, any LC
Participant or any Related Committed Purchaser, February 23, 2011, as such date may be extended
from time to time in the sole discretion of the LC Bank, such LC Participant or such Related
Committed Purchaser, as the case may be.

     “SEC” shall mean the Securities and Exchange Commission or any governmental agencies
substituted therefor.

     “Seller” has the meaning set forth in the preamble to the Agreement.

I-21

 

     “Seller’s Share” of any amount means the greater of: (a) $0 and (b) such amount minus
the Purchasers’ Share.

     “Servicer” has the meaning set forth in the preamble to the Agreement.

     “Servicing Fee” shall mean the fee referred to in Section 4.6 of the
Agreement.

     “Servicing Fee Rate” shall mean the rate referred to in Section 4.6 of the
Agreement.

     “Settlement Date” means with respect to any Portion of Capital for any Settlement
Period, (i) prior to the Facility Termination Date, the Monthly Settlement Date and (ii) on and
after the Facility Termination Date, each day selected from time to time by the Administrator (with
the consent or at the direction of the Majority Purchaser Agents) (it being understood that the
Administrator (with the consent or at the direction of the Majority Purchaser Agents) may select
such Settlement Date to occur as frequently as daily), or, in the absence of such selection, the
Monthly Settlement Date.

     “Settlement Period” means: (a) before the Facility Termination Date: (i) initially
the period commencing on the date of the initial purchase pursuant to Section 1.2 of the
Agreement (or in the case of any fees payable hereunder, commencing on the Closing Date) and ending
on (but not including) the next Monthly Settlement Date, and (ii) thereafter, each period
commencing on such Monthly Settlement Date and ending on (but not including) the next Monthly
Settlement Date, and (b) on and after the Facility Termination Date, such period (including a
period of one day) as shall be selected from time to time by the Administrator (with the consent or
at the direction of the Majority Purchaser Agents) or, in the absence of any such selection, each
period of 30 days from the last day of the preceding Settlement Period.

     “Solvent” means, with respect to any Person at any time, a condition under which:

     (i) the fair value and present fair saleable value of such Person’s total assets is, on
the date of determination, greater than such Person’s total liabilities (including
contingent and unliquidated liabilities) at such time;

     (ii) the fair value and present fair saleable value of such Person’s assets is greater
than the amount that will be required to pay such Person’s probable liability on its
existing debts as they become absolute and matured (“debts,” for this purpose, includes all
legal liabilities, whether matured or unmatured, liquidated or unliquidated, absolute,
fixed, or contingent);

     (iii) such Person is and shall continue to be able to pay all of its liabilities as
such liabilities mature; and

     (iv) such Person does not have unreasonably small capital with which to engage in its
current and in its anticipated business.

I-22

 

     For purposes of this definition:

     (A) the amount of a Person’s contingent or unliquidated liabilities at any time shall
be that amount which, in light of all the facts and circumstances then existing, represents
the amount which can reasonably be expected to become an actual or matured liability;

     (B) the “fair value” of an asset shall be the amount which may be realized within a
reasonable time either through collection or sale of such asset at its regular market value;

     (C) the “regular market value” of an asset shall be the amount which a capable and
diligent business person could obtain for such asset from an interested buyer who is willing
to purchase such asset under ordinary selling conditions; and

     (D) the “present fair saleable value” of an asset means the amount which can be
obtained if such asset is sold with reasonable promptness in an arm’s-length transaction in
an existing and not theoretical market.

     “Spike Factor” means, for any calendar month, (a) the positive difference, if any,
between: (i) the highest Dilution Ratio for any one calendar month during the twelve most recent
calendar months and (ii) the arithmetic average of the Dilution Ratios for such twelve months
times (b) (i) the highest Dilution Ratio for any one calendar month during the twelve most
recent calendar months divided by (ii) the arithmetic average of the Dilution Ratios for
such twelve months.

     “Standard & Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc.

     “Sub-Servicer” has the meaning set forth in Section 4.1(d) of this Agreement.

     “Subsidiary” means, as to any Person, a corporation, partnership, limited liability
company or other entity of which shares of stock of each class or other interests having ordinary
voting power (other than stock or other 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 entity
are at the time owned, or management of which is otherwise controlled: (a) by such Person, (b) by
one or more Subsidiaries of such Person or (c) by such Person and one or more Subsidiaries of such
Person.

     “Tangible Net Worth” means, with respect to any Person, the tangible net worth of such
Person as determined in accordance with generally accepted accounting principles, consistently
applied.

     “Taxes” has the meaning set forth in Section 1.10 of this Agreement.

     “Termination Day” means: (a) each day on which the conditions set forth in
Section 2 of Exhibit II to the Agreement are not satisfied or (b) each day that
occurs on or after the Facility Termination Date.

I-23

 

     “Termination Event” has the meaning specified in Exhibit V to the Agreement.

     “Termination Fee” means, for any Settlement Period during which a Termination Day
occurs, the amount, if any, by which: (a) the additional Discount (calculated without taking into
account any Termination Fee or any shortened duration of such Settlement Period pursuant to the
definition thereof) that would have accrued during such Settlement Period on the reductions of
Capital relating to such Settlement Period had such reductions not been made, exceeds (b) the
income, if any, received by the applicable Purchaser from investing the proceeds of such reductions
of Capital, as determined by the applicable Purchaser Agent, which determination shall be binding
and conclusive for all purposes, absent manifest error.

     “Total Reserves” means, at any time, the sum of: (a) the Yield Reserve, plus (b) the
greater of (i) the Concentration Reserve plus the Minimum Dilution Reserve and (ii) the Loss
Reserve plus the Dilution Reserve.

     “Transaction Documents” means the Agreement, the Lock-Box Agreements, each Fee Letter,
the Purchase and Sale Agreement, the Sale and Contribution Agreement, the Performance Guaranty, and
all other certificates, instruments, UCC financing statements, reports, notices, agreements and
documents executed or delivered under or in connection with the Agreement, in each case as the same
may be amended, supplemented or otherwise modified from time to time in accordance with the
Agreement.

     “Transfer Supplement” has the meaning set forth in Section 6.3(c) of this
Agreement.

     “Transferor” has the meaning set forth in the Sale and Contribution Agreement.

     “TVA” means Tennessee Valley Authority, an Obligor of the Originators and the
Transferor.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the
applicable jurisdiction.

     “Unmatured Purchase and Sale Termination Event” means any event which, with the giving
of notice or lapse of time, or both, would become a Purchase and Sale Termination Event.

     “Unmatured Sale and Contribution Termination Event” means any event which, with the
giving of notice or lapse of time, or both, would become a Sale and Contribution Termination Event.

     “Unmatured Termination Event” means an event that, with the giving of notice or lapse
of time, or both, would constitute a Termination Event.

     “Yield Reserve” means, on any date, an amount equal to: (a) the sum of the Aggregate
Capital plus the LC Participation Amount at the close of business of the Servicer on such date
multiplied by (b) (i) the Yield Reserve Percentage on such date divided by (ii) 100% minus the
Yield Reserve Percentage on such date.

I-24

 

“Yield Reserve Percentage” means at any time:

	 	 	 	 	 

	 

	 	(BR+SFR)  x l.5 x DSO
 

     360
	 	 

where:

	 	 	 	 	 	 	 

	 

	 	BR
	 	=
	 	the Base Rate computed for the most recent Settlement Period,
	 
	 	 	 	 	 	 
	 

	 	DSO
	 	=
	 	Days’ Sales Outstanding, and
	 
	 	 	 	 	 	 
	 

	 	SFR
	 	=
	 	the Servicing Fee Rate

     Other Terms. All accounting terms not specifically defined herein shall be construed
in accordance with generally accepted accounting principles. All terms used in Article 9 of the
UCC in the State of New York, and not specifically defined herein, are used herein as defined in
such Article 9. Unless the context otherwise requires, “or” means “and/or,” and “including” (and
with correlative meaning “include” and “includes”) means including without limiting the generality
of any description preceding such term.

I-25

 

EXHIBIT II

CONDITIONS OF PURCHASES

     1. Conditions Precedent to Effectiveness. The effectiveness of this Agreement is subject to
the condition precedent that the Administrator shall have received, on or before the Closing Date,
each of the following, each in form and substance (including the date thereof) satisfactory to the
Administrator and each Purchaser Agent:

     (a) Counterparts of (i) this Agreement, duly executed by the parties hereto, (ii) the
amendments, each dated as of the date hereof, to the Sale Agreements, duly executed by the parties
thereto and (iii) the other Transaction Documents, duly executed by the parties thereto.

     (b) Certified copies of: (i) the resolutions of the board of directors of each of the Seller,
the Originators, the Transferor, and ACI authorizing the execution, delivery and performance by the
Seller, the Originators, the Transferor and ACI, as the case may be, of this Agreement and the
other Transaction Documents to which it is a party; (ii) all documents evidencing other necessary
corporate or organizational action and governmental approvals, if any, with respect to this
Agreement and the other Transaction Documents and (iii) the certificate of incorporation and
by-laws or limited liability company agreement, as applicable, of the Seller, the Originators, the
Transferor and ACI.

     (c) A certificate of the Secretary or Assistant Secretary of the Seller, each of the
Originators, the Transferor and ACI certifying the names and true signatures of its officers who
are authorized to sign this Agreement and the other Transaction Documents to which it is a party.
Until the Administrator receives a subsequent incumbency certificate from the Seller, the
Originators, the Transferor or ACI, as the case may be, the Administrator shall be entitled to rely
on the last such certificate delivered to it by the Seller, the Originators, the Transferor or ACI,
as the case may be.

     (d) Proper financing statements (Form UCC-1), duly authorized and suitable for filing under
the UCC of all jurisdictions that the Administrator may deem necessary or desirable in order to
perfect the interests of the Seller and the Administrator (for the benefit of the Purchasers)
contemplated by this Agreement and each of the Sale Agreements.

     (e) Proper financing statements (Form UCC-3), duly authorized and suitable for filing under
the UCC of all jurisdictions that the Administrator may deem necessary or desirable to release all
security interests and other rights of any Person in the Receivables, Contracts or Related Security
previously granted by any Originator, the Transferor or the Seller.

     (f) Completed UCC search reports, dated on or shortly before the Closing Date, listing the
financing statements filed in all applicable jurisdictions that name any Originator, the Transferor
or the Seller as debtor, together with copies of such other financing statements, and similar
search reports with respect to judgment liens, federal tax liens and liens of the Pension Benefit
Guaranty Corporation in such jurisdictions, as the Administrator may request, showing no Adverse
Claims on any Pool Assets other than any security interests that are released as of the Closing
Date.

II-1

 

     (g) (x) Favorable opinions, addressed to each Rating Agency, the Administrator, each Purchaser
Agent and each Purchaser, in form and substance reasonably satisfactory to the Administrator, of
Bryan Cave LLP, counsel for the Seller, the Originators, the Servicer, the Transferor and ACI,
covering such matters as the Administrator may reasonably request, including, without limitation,
certain organizational and New York enforceability matters, certain bankruptcy matters, certain UCC
perfection and priority matters and (y) favorable opinions, which may be in the form of a reliance
letter, addressed to each member of the Atlantic Purchaser Group, in form and substance reasonably
satisfactory to the Purchaser Agent for the Atlantic Purchaser Group, covering each opinion
delivered by Bryan Cave LLP or in-house counsel in connection with the Original Agreement.

     (h) Satisfactory results of a review and audit (performed by representatives of the
Administrator) of the Servicer’s collection, operating and reporting systems, the Credit and
Collection Policy of each Originator and the Transferor, historical receivables data and accounts,
including satisfactory results of a review of the Servicer’s operating location(s) and satisfactory
review and approval of the Eligible Receivables in existence on the date of the initial purchase
under the Agreement.

     (i) A pro forma Information Package representing the performance of the Receivables Pool for
the calendar month before closing.

     (j) Evidence of payment by the Seller of all accrued and unpaid fees (including those
contemplated by the Fee Letters), costs and expenses to the extent then due and payable on the date
thereof, including any such costs, fees and expenses arising under or referenced in Section
5.4 of the Agreement and the Fee Letters.

     (k) Each Fee Letter duly executed by the Seller and ACI.

     (l) Good standing certificates with respect to each of the Seller, the Originators, the
Transferor and ACI issued by the Secretary of State (or similar official) of the state of each such
Person’s organization or formation and principal place of business.

     (m) The Liquidity Agreement and all other Transaction Documents duly executed by the parties
thereto.

     (n) All information with respect to the Receivables as the Administrator or the Purchasers may
reasonably request.

     (o) A Release Agreement, dated on or before the Closing Date, duly executed by the
administrative agent under the Credit Agreement, releasing all security interests and other rights
of any Person in the Receivables, Contracts or Related Security previously granted by any Person
thereunder.

     (p) Such other approvals, opinions or documents as the Administrator or the Purchasers may
reasonably request.

     2. Conditions Precedent to All Funded Purchases, Issuances of Letters of Credit and
Reinvestments. Each Funded Purchase (including the initial Funded Purchase) and the issuance

II-2

 

of any Letters of Credit and each reinvestment shall be subject to the further conditions
precedent that:

     (a) in the case of each Funded Purchase and the issuance of any Letters of Credit, the
Servicer shall have delivered to the Administrator and each Purchaser Agent on or before such
purchase or issuance, as the case may be, in form and substance satisfactory to the Administrator
and each Purchaser Agent, a completed pro forma Information Package to reflect the level of the
Aggregate Capital, the LC Participation Amount and related reserves and the calculation of the
Purchased Interest after such subsequent purchase or issuance, as the case may be, and a completed
Purchase Notice in the form of Annex B; and

     (b) on the date of such Funded Purchase, issuance or reinvestment, as the case may be, the
following statements shall be true (and acceptance of the proceeds of such Funded Purchase,
issuance or reinvestment shall be deemed a representation and warranty by the Seller that such
statements are then true):

     (i) the representations and warranties contained in Exhibit III to the
Agreement are true and correct on and as of the date of such Funded Purchase,
issuance or reinvestment as though made on and as of such date except for
representations and warranties which apply as to an earlier date (in which case such
representations and warranties shall be true and correct as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such Funded
Purchase, issuance or reinvestment, that constitutes a Termination Event or an
Unmatured Termination Event;

     (iii) the sum of the Aggregate Capital plus the LC Participation Amount, after
giving effect to any such Funded Purchase, issuance or reinvestment, as the case may
be, shall not exceed the Purchase Limit, and the Purchased Interest shall not exceed
100%; and

     (iv) the Facility Termination Date has not occurred.

II-3

 

EXHIBIT III

REPRESENTATIONS AND WARRANTIES

     1. Representations and Warranties of the Seller. The Seller represents and warrants to the
Administrator, each Purchaser Agent and each Purchaser as of the Closing Date that:

     (a) Existence and Power. The Seller is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware, and has all organizational power
and all governmental licenses, authorizations, consents and approvals required to carry on its
business in each jurisdiction in which its business is conducted except if failure to have such
licenses, authorizations, consents or approvals could not reasonably be expected to have a Material
Adverse Effect.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Seller of this Agreement and each other Transaction Document to which it is
a party are within the Seller’s organizational powers, have been duly authorized by all necessary
organizational action, require no action by or in respect of, or filing with (other than the filing
of UCC financing statements and continuation statements), any governmental body, agency or
official, and, do not contravene, or constitute a default under, any provision of applicable law or
regulation or of the operating agreement of the Seller or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Seller or result in the creation or imposition
of any lien (other than liens in favor of the Administrator) on assets of the Seller.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Seller to
the Administrator, any Purchaser Agent or any Purchaser pursuant to or in connection with this
Agreement or any other Transaction Document is, and all such information hereafter furnished by the
Seller to the Administrator, any Purchaser Agent or any Purchaser in writing pursuant to this
Agreement or any Transaction Document will be, true and accurate on the date such information is
stated or certified.

     (e) Actions, Suits. Except as set forth in Schedule III, there are no
actions, suits or proceedings pending or, to the best of the Seller’s knowledge, threatened against
or affecting the Seller or its properties, in or before any court, arbitrator or other body, which
could reasonably be expected to have a Material Adverse Effect upon the ability of the Seller to
perform its obligations under this Agreement or any other Transaction Document to which it is a
party.

     (f) Accuracy of Exhibits; Lock-Box Arrangements. The names and addresses of all the
Lock-Box Banks together with the account numbers of the Lock-Box Accounts at such Lock-

III-1

 

Box Banks, are specified in Schedule II to this Agreement (or at such other Lock-Box
Banks and/or with such other Lock-Box Accounts as have been notified to the Administrator), and all
Lock-Box Accounts are subject to Lock-Box Agreements. All information on each Exhibit, Schedule or
Annex to this Agreement or the other Transaction Documents (as updated by the Seller from time to
time) is true and complete. The Seller has delivered a copy of all Lock-Box Agreements to the
Administrator. The Seller has not granted any interest in any Lock-Box Account (or any related
lock-box or post office box) to any Person other than the Administrator and, upon delivery to a
Lock-Box Bank of the related Lock-Box Agreement, the Administrator will have exclusive ownership
and control of the Lock-Box Account at such Lock-Box Bank.

     (g) No Material Adverse Effect. Since the date of formation of Seller as set forth in
its certificate of formation, there has been no Material Adverse Effect with respect to the Seller.

     (h) Names and Location. The Seller has not used any company names, trade names or
assumed names other than its name set forth on the signature pages of this Agreement. The Seller is
“located” (as such term is defined in the applicable UCC) in Delaware. The office where the Seller
keeps its records concerning the Receivables is at the address set forth below its signature to
this Agreement.

     (i) Margin Stock. The Seller is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U and X,
as issued by the Board of Governors of the Federal Reserve System), and no proceeds of any purchase
or reinvestment hereunder will be used to purchase or carry any margin stock or to extend credit to
others for the purpose of purchasing or carrying any margin stock.

     (j) Eligible Receivables. Each Pool Receivable included as an Eligible Receivable in
the calculation of the Net Receivables Pool Balance is an Eligible Receivable.

     (k) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy of each Originator and the Transferor with regard to each
Receivable originated by such Originator or the Transferor, as applicable.

     (l) Investment Company Act. The Seller is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     (m) Mortgages Covering As-Extracted Collateral. Except for any security interest,
lien or other rights in the Receivables, Contracts and Related Security that have been released
pursuant to the Release Agreement, there are no mortgages that are effective as financing
statements covering as-extracted collateral and that name any Originator (or, if such Originator is
not the “record owner” of the underlying property, any “record owner” with respect to such
as-extracted collateral, as such term is used in the UCC) as grantor, debtor or words of similar
effect filed or recorded in any jurisdiction.

     2. Representations and Warranties of the Servicer. The Servicer represents and warrants to
the Administrator, each Purchaser Agent and each Purchaser as of the Closing Date that:

III-2

 

     (a) Existence and Power. The Servicer is a corporation duly formed, validly existing
and in good standing under the laws of the State of Delaware, and has all company power and all
governmental licenses, authorizations, consents and approvals required to carry on its business in
each jurisdiction in which its business is conducted, except if failure to have such licenses,
authorizations, consents or approvals would not reasonably be expected to have a Material Adverse
Effect.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Servicer of this Agreement and each other Transaction Document to which it
is a party are within the Servicer’s organizational powers, have been duly authorized by all
necessary organizational action, require no action by or in respect of, or filing with, any
governmental body, agency or official, and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the certificate of incorporation or bylaws of the
Servicer or of any judgment, injunction, order or decree or agreement or other instrument binding
upon the Servicer or result in the creation or imposition of any lien on assets of the Servicer
(other than in favor of the Administrator under the Transaction Documents) or any of its
Subsidiaries.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement
of creditors’ rights generally and by general principles of equity, regardless of whether
enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Servicer to
the Administrator, any Purchaser Agent or any Purchaser pursuant to or in connection with this
Agreement or any other Transaction Document is, and all such information hereafter furnished by the
Servicer to the Administrator, any Purchaser Agent or any Purchaser in writing pursuant to this
Agreement or any other Transaction Document will be, true and accurate on the date such information
is stated or certified.

     (e) Actions, Suits. Except as set forth in Schedule III, there are no
actions, suits or proceedings pending or, to the best of the Servicer’s knowledge, threatened
against or affecting the Servicer or any of its Affiliates or their respective properties, in or
before any court, arbitrator or other body, which could reasonably be expected to have a Material
Adverse Effect upon the ability of the Servicer (or such Affiliate) to perform its obligations
under this Agreement or any other Transaction Document to which it is a party.

     (f) No Material Adverse Effect. Since December 31, 2004, there has been no Material
Adverse Effect on the Servicer.

     (g) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy of each Originator and the Transferor with regard to each
Receivable originated by such Originator or the Transferor, as applicable.

III-3

 

     (h) Investment Company Act. The Servicer is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     (i) Lock-Box Accounts. On or prior to the Closing Date, the Servicer has transferred
and assigned all of its right, title and interest in and to, and remedies, powers and privileges
under, the Lock-Box Accounts to the Seller.

     3. Representations, Warranties and Agreements Relating to the Security Interest. The Seller
hereby makes the following representations, warranties and agreements with respect to the
Receivables and Related Security:

     (a) The Receivables.

     (i) Creation. This Agreement creates a valid and continuing security
interest (as defined in the applicable UCC) in the Receivables included in the
Receivables Pool in favor of the Administrator (for the benefit of the Purchasers),
which security interest is prior to all other Adverse Claims, and is enforceable as
such as against creditors of and purchasers from the Seller.

     (ii) Nature of Receivables. The Receivables included in the
Receivables Pool constitute either “accounts” (including, without limitation,
“accounts” constituting “as-extracted collateral”), “general intangibles” or
“tangible chattel paper” within the meaning of the applicable UCC.

     (iii) Ownership of Receivables. The Seller owns and has good and
marketable title to the Receivables included in the Receivables Pool and Related
Security free and clear of any Adverse Claim.

     (iv) Perfection and Related Security. The Seller will cause (and will
cause each Originator and the Transferor to cause), within ten days after the
Closing Date, the filing of all appropriate financing statements in the proper
filing office in the appropriate jurisdictions under applicable law in order to
perfect the sale of the Receivables and Related Security from such Originator to the
Transferor pursuant to the Purchase and Sale Agreement and in order to perfect the
sale from the Transferor to the Seller pursuant to the Sale and Contribution
Agreement, and the sale and security interest therein from the Seller to the
Administrator under this Agreement, to the extent that such collateral constitutes
“accounts” (including, without limitation, “accounts” constituting “as-extracted
collateral”), “general intangibles,” or “tangible chattel paper.”

     (v) Tangible Chattel Paper. With respect to any Receivables included
in the Receivables Pool that constitute “tangible chattel paper”, if any, the Seller
(or the Servicer on its behalf) has in its possession the original copies of such
tangible chattel paper that constitute or evidence such Receivables, and the Seller
has caused (and will cause the applicable Originator and the Transferor to cause),
within ten days after the Closing Date, the filing of financing statements described

III-4

 

in clause (iv), above, each of which will contain a statement that: “A
purchase of, or security interest in, any collateral described in this financing
statement will violate the rights of the Administrator” or words to similar effect.
The Receivables to the extent they are evidenced by “tangible chattel paper” do not
have any marks or notations indicating that they have been pledged, assigned or
otherwise conveyed to any Person other than the Seller or the Administrator.

     (b) The Lock-Box Accounts.

     (i) Nature of Accounts. Each Lock-Box Account constitutes a “deposit
account” within the meaning of the applicable UCC.

     (ii) Ownership. The Seller owns and has good and marketable title to
the Lock-Box Accounts free and clear of any Adverse Claim.

     (iii) Perfection. The Seller has delivered to the Administrator a
fully executed Lock-Box Agreement relating to each Lock-Box Account, pursuant to
which each applicable Lock-Box Bank, respectively, has agreed, following the
occurrence and continuation of a Termination Event, to comply with all instructions
originated by the Administrator (on behalf of the Purchasers) directing the
disposition of funds in such Lock-Box Account without further consent by the Seller
or the Servicer.

     (c) Priority.

     (i) Other than the transfer of the Receivables to the Transferor, the Seller
and the Administrator under the Purchase and Sale Agreement, the Sale and
Contribution Agreement and this Agreement, respectively, and/or the security
interest granted to the Transferor, the Seller and the Administrator pursuant to the
Purchase and Sale Agreement, the Sale and Contribution Agreement and this Agreement,
respectively, neither the Transferor, the Seller nor any Originator has pledged,
assigned, sold, granted a security interest in, or otherwise conveyed any of the
Receivables transferred or purported to be transferred under the Transaction
Documents, the Lock-Box Accounts or any subaccount thereof, except for any such
pledge, grant or other conveyance which has been or will be released or terminated.
Neither the Seller, the Transferor nor any Originator has authorized the filing of,
or is aware of any financing statements against any of the Seller, the Transferor or
such Originator that include a description of Receivables transferred or purported
to be transferred under the Transaction Documents, the Lock-Box Accounts or any
subaccount thereof, other than any financing statement (i) relating to the sale
thereof by such Originator to the Transferor under the Purchase and Sale Agreement
or relating to the sale thereof by the Transferor to the Seller under the Sale and
Contribution Agreement, (ii) relating to the security interest granted to the
Administrator under this Agreement, or (iii) that has been or will be released or
terminated pursuant to the Release Agreement.

III-5

 

     (ii) The Seller is not aware of any judgment, ERISA or tax lien filings against
either the Seller, the Servicer, the Transferor or any Originator, other than such
judgment, ERISA or tax lien filing that (A) has not been outstanding for greater
than 30 days from the earlier of such Person’s knowledge or notice thereof, (B) is
less than $250,000 and (C) does not otherwise give rise to a Termination Event under
clause (l) of Exhibit V hereto.

     (iii) The Lock-Box Accounts are not in the name of any person other than the
Seller or the Administrator. Neither the Seller nor the Servicer has consented to
any bank maintaining such account to comply with instructions of any person other
than the Administrator.

     (d) Survival of Supplemental Representations. Notwithstanding any other provision of
this Agreement or any other Transaction Document, the representations contained in this Section
shall be continuing, and remain in full force and effect until such time as the Purchased Interest
and all other obligations under this Agreement have been finally and fully paid and performed.

     (e) No Waiver. To the extent required pursuant to the securitization program of any
Conduit Purchaser, the parties to this Agreement: (i) shall not, without obtaining a confirmation
of the then-current rating of the Notes, waive any of the representations set forth in this
Section; (ii) shall provide the Ratings Agencies with prompt written notice of any breach of any
representations set forth in this Section, and shall not, without obtaining a confirmation of the
then-current rating of the Notes (as determined after any adjustment or withdrawal of the ratings
following notice of such breach) waive a breach of any of the representations set forth in this
Section.

     (f) Servicer to Maintain Perfection and Priority. In order to evidence the interests
of the Administrator under this Agreement, the Servicer shall, from time to time take such action,
or execute and deliver such instruments as may be necessary (including, without limitation, such
actions as are reasonably requested by the Administrator) to maintain and perfect, as a
first-priority interest, the Administrator’s security interest in the Receivables, Related Security
and Collections. The Servicer shall, from time to time and within the time limits established by
law, prepare and present to the Administrator for the Administrator’s authorization and approval,
all financing statements, amendments, continuations or initial financing statements in lieu of a
continuation statement, or other filings necessary to continue, maintain and perfect the
Administrator’s security interest as a first-priority interest. The Administrator’s approval of
such filings shall authorize the Servicer to file such financing statements under the UCC without
the signature of the Seller, any Originator, the Transferor or the Administrator where allowed by
applicable law. Notwithstanding anything else in the Transaction Documents to the contrary, the
Servicer shall not have any authority to file a termination, partial termination, release, partial
release, or any amendment that deletes the name of a debtor or excludes collateral of any such
financing statements filed in connection with the Transaction Documents, without the prior written
consent of the Administrator.

III-6

 

     (g) Mining Operations and Mineheads. The Servicer shall (and shall cause each
applicable Originator to) promptly, and in any event within 30 days of any change, deletion or
addition to the location of any Originator’s mining operations or mineheads set forth on
Schedule V to the Purchase and Sale Agreement, (i) notify the Administrator and each
Purchaser Agent of such change, deletion or addition, (ii) cause the filing or recording of such
financing statements and amendments and/or releases to financing statements, mortgages or other
instruments, if any, necessary to preserve and maintain the perfection and priority of the security
interest of the Transferor, Seller and Administrator (on behalf of the Purchasers) in the Pool
Assets pursuant to this Agreement, in each case in form and substance satisfactory to the
Administrator and (iii) deliver to the Administrator and each Purchaser Agent an updated
Schedule V to the Purchase and Sale Agreement reflecting such change, deletion or addition;
it being understood that no Receivable the related location of mining operations and/or mineheads
of which is not as set forth on Schedule V to the Purchase and Sale Agreement as of the
Closing Date shall be an Eligible Receivable until such time as each condition under this
clause (g) shall have been satisfied (and upon such satisfaction, the Purchase and Sale
Agreement shall be deemed amended to reflect such updated Schedule V to the Purchase and
Sale Agreement).

     (h) Additional Mortgages Under Credit Agreement. The Servicer shall (and shall cause
each applicable Originator to) (x) provide written notice promptly, and in any event within 30
days, to the Seller, the Administrator and each Purchaser Agent of each new Mortgage or amendment
or modification of an existing Mortgage under the Credit Agreement covering as-extracted
collateral, (y) cause to be delivered to the Administrator a letter, in the form of the Release
Agreement (or such other form as may be approved by the Administrator), addressed to the
Administrator and duly executed by the related grantee or beneficiary releasing such party’s
security interest, lien or other rights under such new Mortgage or amended or modified Mortgage in
the Receivables, Contracts and Related Security subject thereto and (z) file or record all
amendments and/or releases to such new, amended or modified Mortgages necessary to release and
remove of record any such security interest, lien or other interest of the related grantee or
beneficiary in the Receivables, Contracts and Related Security, in each case in form and substance
satisfactory to the Administrator.

     4. Ordinary Course of Business. Seller represents and warrants that each remittance of
Collections by or on behalf of the Seller to the Purchasers under this Agreement will have been (i)
in payment of a debt incurred by the Seller in the ordinary course of business or financial affairs
of the Seller and (ii) made in the ordinary course of business or financial affairs of the Seller.

     5. Reaffirmation of Representations and Warranties. On the date of each purchase and/or
reinvestment and issuance of a Letter of Credit hereunder, and on the date each Information Package
or other report is delivered to the Administrator, any Purchaser Agent or any Purchaser hereunder,
the Seller and the Servicer, by accepting the proceeds of such purchase reinvestment or Letter of
Credit, as applicable and/or the provision of such information or report, shall each be deemed to
have certified that (i) all representations and warranties of the Seller and the Servicer, as
applicable, described in this Exhibit III, as from time to time amended in accordance with
the terms hereof, are correct on and as of such day as though made on and as of such day, except
for representations and warranties which apply as to an earlier date (in which

III-7

 

case such representations and warranties shall be true and correct as of such date), and (ii)
no event has occurred or is continuing, or would result from any such purchase, reinvestment or
issuance, which constitutes a Termination Event or an Unmatured Termination Event.

III-8

 

EXHIBIT IV

COVENANTS

     1. Covenants of the Seller. At all times from the date hereof until the latest of the
Facility Termination Date, the date on which no Capital of or Discount in respect of the Purchased
Interest shall be outstanding, the date the LC Participation Amount is cash collateralized in full
or the date all other amounts owed by the Seller under this Agreement to any Purchaser Agent, any
Purchaser, the Administrator and any other Indemnified Party or Affected Person shall be paid in
full:

     (a) Financial Reporting. The Seller will maintain a system of accounting established
and administered in accordance with generally accepted accounting principles as in effect in the
appropriate jurisdiction, and the Seller (or the Servicer on its behalf) shall furnish to the
Administrator and each Purchaser Agent:

     (i) Annual Reporting. Promptly upon completion and in no event later
than 90 days after the close of each fiscal year of the Seller, annual unaudited
financial statements of the Seller certified by a designated financial or other
officer of the Seller.

     (ii) Information Packages. As soon as available and in any event not
later than two Business Days prior to the Monthly Settlement Date, an Information
Package as of the most recently completed calendar month.

     (iii) Other Information. Such other information (including
non-financial information) as the Administrator or any Purchaser Agent may from time
to time reasonably request.

     (b) Notices. The Seller will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A
statement of the chief financial officer or chief accounting officer of the Seller
setting forth details of any Termination Event or Unmatured Termination Event and
the action which the Seller proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation
or warranty to be true (when made or at any time thereafter) with respect to the
Receivables included in the Receivables Pool.

     (iii) Litigation. The institution of any litigation, arbitration
proceeding or governmental proceeding which may have a Material Adverse Effect on
the Seller.

IV-1

 

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon
the Pool Receivables or Collections with respect thereto, (B) any Person other than
the Seller, the Servicer or the Administrator shall obtain any rights or direct any
action with respect to any Lock-Box Account (or related lock-box or post office box)
or (C) any Obligor shall receive any change in payment instructions with respect to
Pool Receivable(s) from a Person other than the Servicer or the Administrator.

     (v) ERISA and Other Claims. Promptly after the filing or receiving
thereof, copies of all reports and notices that the Seller or any ERISA Affiliate
files under ERISA with the Internal Revenue Service, the Pension Benefit Guaranty
Corporation or the U.S. Department of Labor or that the Seller or any Affiliate
receives from any of the foregoing or from any multiemployer plan (within the
meaning of Section 4001(a)(3) of ERISA) to which the Seller or any of its Affiliates
is or was, within the preceding five years, a contributing employer, in each case in
respect of the assessment of withdrawal liability or an event or condition that
could, in the aggregate, result in the imposition of liability on the Seller and/or
any such Affiliate.

     (vi) Name Changes. At least thirty days before any change in the
Seller’s name or any other change requiring the amendment of UCC financing
statements, a notice setting forth such changes and the effective date thereof.

     (vii) Material Adverse Change. Promptly after the occurrence thereof,
notice of a material adverse change in the business, operations, property or
financial or other condition of the Seller, the Servicer, the Transferor or any
Originator.

     (c) Conduct of Business. The Seller will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly organized, validly existing and in good
standing as a domestic organization in its jurisdiction of organization and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted.

     (d) Compliance with Laws. The Seller will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject.

     (e) Furnishing of Information and Inspection of Receivables. The Seller will furnish
to the Administrator and each Purchaser Agent from time to time such information with respect to
the Pool Receivables as the Administrator or any Purchaser Agent may reasonably request. The
Seller will, at the Seller’s expense, during regular business hours with prior written notice (i)
permit the Administrator and/or any Purchaser Agent, or their respective agents or representatives,
(A) to examine and make copies of and abstracts from all books and records relating to the Pool
Receivables or other Pool Assets and (B) to visit the offices and properties of the Seller for the
purpose of examining such books and records, and to discuss matters relating to the Pool
Receivables, other Pool Assets or the Seller’s performance hereunder or under the other

IV-2

 

Transaction Documents to which it is a party with any of the officers, directors, employees or
independent public accountants of the Seller (provided that representatives of the Seller are
present during such discussions) having knowledge of such matters and (ii) without limiting the
provisions of clause (i) above, during regular business hours, at the Seller’s expense,
upon prior written notice from the Administrator and/or such Purchaser Agent, permit certified
public accountants or other auditors acceptable to the Administrator to conduct a review of its
books and records with respect to such Receivables, provided, that the Seller shall be
required to reimburse the Administrator and Purchaser Agents for only one (1) such audit per year,
unless a Termination Event has occurred and is continuing.

     (f) Payments on Receivables, Accounts. The Seller will, and will cause each
Originator and the Transferor to, at all times instruct all Obligors to deliver payments on the
Pool Receivables to a Lock-Box Account. If any such payments or other Collections are received by
the Seller, an Originator or the Transferor, it shall hold such payments in trust for the benefit
of the Administrator and the Purchasers and promptly (but in any event within two Business Days
after receipt) remit such funds into a Lock-Box Account. The Seller will cause each Lock-Box Bank
to comply with the terms of each applicable Lock-Box Agreement. The Seller will not permit the
funds other than Collections on Pool Receivables and other Pool Assets to be deposited into any
Lock-Box Account. If such funds are nevertheless deposited into any Lock-Box Account, the Seller
will promptly identify such funds for segregation. The Seller will not, and will not permit the
Servicer, any Originator or the Transferor or other Person to, commingle Collections or other funds
to which the Administrator, any Purchaser Agent or any Purchaser is entitled with any other funds.
The Seller shall only add, and shall only permit an Originator or the Transferor to add, a Lock-Box
Bank (or the related lock-box or post office box), or Lock-Box Account to those listed on
Schedule II to this Agreement, if the Administrator has received notice of such addition, a
copy of any new Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement in
form and substance acceptable to the Administrator from any such new Lock-Box Bank. The Seller
shall only terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post
office box), with the prior written consent of the Administrator.

     (g) Sales, Liens, etc. Except as otherwise provided herein, the Seller will not sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any
Adverse Claim upon (including, without limitation, the filing of any financing statement) or with
respect to, any Pool Receivable or other Pool Asset, or assign any right to receive income in
respect thereof.

     (h) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Seller will not, and will not permit the Servicer to,
alter the delinquency status or adjust the Outstanding Balance or otherwise modify the terms of any
Pool Receivable in any material respect, or amend, modify or waive, in any material respect, any
term or condition of any related Contract (which term or condition relates to payments under, or
the enforcement of, such Contract). The Seller shall at its expense, timely and fully perform and
comply with all provisions, covenants and other promises required to be observed by it under the
Contracts related to the Pool Receivables, and timely and fully comply with the Credit and

IV-3

 

Collection Policy with regard to each Receivable and the related Contract (which term or
condition relates to payments under, or the enforcement of, such Contract).

     (i) Change in Business. The Seller will not (i) make any change in the character of
its business or (ii) make any change in any Credit and Collection Policy that could reasonably be
expected to have a Material Adverse Effect, in the case of either clause (i) or
(ii) above, without the prior written consent of the Administrator and the Majority
Purchaser Agents. The Seller shall not make any other written change in any Credit and Collection
Policy without giving prior written notice thereof to the Administrator and each Purchaser Agent.

     (j) Fundamental Changes. The Seller shall not, without the prior written consent of
the Administrator and the Majority Purchaser Agents, permit itself (i) to merge or consolidate with
or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now owned or hereafter
acquired) to, any Person or (ii) to be owned by any Person other than Arch Sales and thereby cause
Arch Sales’ percentage of ownership or control of the Seller to be reduced. The Seller shall
provide the Administrator and each Purchaser with at least 30 days’ prior written notice before
making any change in the Seller’s name, location or making any other change in the Seller’s
identity or corporate structure that could impair or otherwise render any UCC financing statement
filed in connection with this Agreement “seriously misleading” as such term (or similar term) is
used in the applicable UCC; each notice to the Administrator and the Purchaser Agents pursuant to
this sentence shall set forth the applicable change and the proposed effective date thereof. The
Seller will also maintain and implement (or cause the Servicer to maintain and implement)
administrative and operating procedures (including an ability to recreate records evidencing Pool
Receivables and related Contracts in the event of the destruction of the originals thereof), and
keep and maintain (or cause the Servicer to keep and maintain) all documents, books, records,
computer tapes and disks and other information reasonably necessary or advisable for the collection
of all Pool Receivables (including records adequate to permit the daily identification of each Pool
Receivable and all Collections of and adjustments to each existing Pool Receivable).

     (k) Change in Payment Instructions to Obligors. The Seller shall not (and shall cause
the Servicer and each Sub-Servicer not to) add to, replace or terminate any of the Lock-Box
Accounts (or any related lock-box or post office box) listed in Schedule II hereto or make
any change in its (or their) instructions to the Obligors regarding payments to be made to the
Lock-Box Accounts (or any related lock-box or post office box), unless the Administrator shall have
received (x) prior written notice of such addition, termination or change and (y) signed and
acknowledged Lock-Box Agreements with respect to such new Lock-Box Accounts (or any related
lock-box or post office box).

     (l) Ownership Interest, Etc. The Seller shall (and shall cause the Servicer to), at
its expense, take all action necessary or reasonably desirable to establish and maintain a valid
and enforceable undivided percentage ownership or security interest, to the extent of the Purchased
Interest, in the Pool Receivables, the Related Security and Collections with respect thereto, and a
first priority perfected security interest in the Pool Assets, in each case free and clear of any
Adverse Claim, in favor of the Administrator (on behalf of the Purchasers), including taking such

IV-4

 

action to perfect, protect or more fully evidence the interest of the Administrator (on behalf
of the Purchasers) as the Administrator or any Purchaser may reasonably request.

     (m) Certain Agreements. Without the prior written consent of the Administrator and the
Majority Purchaser Agents, the Seller will not (and will not permit the Originators or the
Transferor to) amend, modify, waive, revoke or terminate any Transaction Document to which it is a
party or any provision of the Seller’s organizational documents which requires the consent of the
“Independent Director” (as defined in the Seller’s LLC Agreement).

     (n) Restricted Payments. (i) Except pursuant to clause (ii) below, the Seller
will not: (A) purchase or redeem any shares of its capital stock, (B) declare or pay any dividend
or set aside any funds for any such purpose, (C) prepay, purchase or redeem any Debt, (D) lend or
advance any funds or (E) repay any loans or advances to, for or from any of its Affiliates (the
amounts described in clauses (A) through (E) being referred to as “Restricted
Payments”).

     (ii) Subject to the limitations set forth in clause (iii) below, the
Seller may make Restricted Payments so long as such Restricted Payments are made
only in one or more of the following ways: (A) the Seller may make cash payments
(including prepayments) on the Company Notes in accordance with their respective
terms, and (B) if no amounts are then outstanding under any Company Note, the Seller
may declare and pay dividends.

     (iii) The Seller may make Restricted Payments only out of the funds, if any, it
receives pursuant to Sections 1.4(b)(ii) and (iv) and 1.4(d)
of this Agreement. Furthermore, the Seller shall not pay, make or declare: (A) any
dividend if, after giving effect thereto, the Tangible Net Worth of the Seller would
be less than $5,000,000, or (B) any Restricted Payment (including any dividend) if,
after giving effect thereto, any Termination Event or Unmatured Termination Event
shall have occurred and be continuing.

     (o) Other Business. The Seller will not: (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) create, incur or permit to exist any
Debt of any kind (or cause or permit to be issued for its account any letters of credit or bankers’
acceptances) other than pursuant to this Agreement or the Company Notes, or (iii) form any
Subsidiary or make any investments in any other Person.

     (p) Use of Seller’s Share of Collections. The Seller shall apply the Seller’s Share of
Collections to make payments in the following order of priority: (i) the payment of its expenses
(including all obligations payable to the Purchasers, Purchaser Agents and the Administrator under
this Agreement and under the Fee Letters), (ii) the payment of accrued and unpaid interest on the
Company Notes and (iii) other legal and valid organizational purposes.

     (q) Further Assurances; Change in Name or Jurisdiction of Origination, etc. (i) The
Seller hereby authorizes and hereby agrees from time to time, at its own expense, promptly to
execute (if necessary) and deliver all further instruments and documents, and to take all further
actions, that may be necessary or desirable, or that the Administrator may reasonably request, to

IV-5

 

perfect, protect or more fully evidence the purchases or issuances made under this Agreement
and/or security interest granted pursuant to this Agreement or any other Transaction Document, or
to enable the Administrator (on behalf of the Purchasers) to exercise and enforce the Purchasers’
rights and remedies under this Agreement and any other Transaction Document. Without limiting the
foregoing, the Seller hereby authorizes, and will, upon the request of the Administrator, at the
Seller’s own expense, execute (if necessary) and file such financing or continuation statements
(including fixture filings and as extracted collateral filings), or amendments thereto, and such
other instruments and documents, that may be necessary or desirable, or that the Administrator may
reasonably request, to perfect, protect or evidence any of the foregoing.

     (i) The Seller authorizes the Administrator to file financing or continuation
statements, and amendments thereto and assignments thereof, relating to the
Receivables and the Related Security, the related Contracts and the Collections with
respect thereto and the other collateral subject to a lien under any Transaction
Document without the signature of the Seller. A photocopy or other reproduction of
this Agreement shall be sufficient as a financing statement where permitted by law.

     (ii) The Seller shall at all times be organized under the laws of the State of
Delaware and shall not take any action to change its jurisdiction of organization.

     (iii) The Seller will not change its name, location, identity or corporate
structure unless (x) the Administrator and each Purchaser Agent shall have received
at least thirty (30) days’ advance written notice of such change, (y) the Seller, at
its own expense, shall have taken all action necessary or appropriate to perfect or
maintain the perfection of the lien under this Agreement (including, without
limitation, the filing of all financing statements and the taking of such other
action as the Administrator may request in connection with such change or
relocation), and (z) if requested by the Administrator or any Purchaser, the Seller
shall cause to be delivered to the Administrator or any Purchaser Agent, an opinion,
in form and substance satisfactory to the Administrator and such Purchaser Agent as
to such UCC perfection and priority matters as such Person may request at such time.

     (r) Tangible Net Worth. The Seller will not permit its Tangible Net Worth, at any
time, to be less than $5,000,000.

     2. Covenants of the Servicer. At all times from the date hereof until the latest of the
Facility Termination Date, the date on which no Capital of or Discount in respect of the Purchased
Interest shall be outstanding, the date the LC Participation Amount is cash collateralized in full
or the date all other amounts owed by the Seller or the Servicer under this Agreement to any
Purchaser, any Purchaser Agent, the Administrator and any other Indemnified Party or Affected
Person shall be paid in full:

IV-6

 

     (a) Financial Reporting. The Servicer will maintain a system of accounting
established and administered in accordance with generally accepted accounting principles as in
effect in the appropriate jurisdiction, and the Servicer shall furnish to the Administrator and
each Purchaser Agent:

     (i) Compliance Certificates. (a) A compliance certificate promptly
upon completion of the annual report of the Performance Guarantor and in no event
later than 90 days after the close of the Performance Guarantor’s fiscal year, in
form and substance substantially similar to Annex D signed by its chief accounting
officer or treasurer solely in their capacities as officers of the Servicer stating
that no Termination Event or Unmatured Termination Event exists, or if any
Termination Event or Unmatured Termination Event exists, stating the nature and
status thereof, and (b) within 45 days after the close of each fiscal quarter of the
Servicer, a compliance certificate in form and substance substantially similar to
Annex D.

     (ii) Information Packages. As soon as available and in any event not
later than two Business Days prior to the Monthly Settlement Date, an Information
Package as of the most recently completed calendar month.

     (iii) Other Information. Such other information (including
non-financial information) as the Administrator or any Purchaser Agent may from time
to time reasonably request.

     (b) Notices. The Servicer will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A
statement of the chief financial officer or chief accounting officer of the Servicer
setting forth details of any Termination Event or Unmatured Termination Event and
the action which the Servicer proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation
or warranty to be true (when made or at any time thereafter) with respect to the
Pool Receivables.

     (iii) Litigation. The institution of any litigation, arbitration
proceeding or governmental proceeding which could reasonably be expected to have a
Material Adverse Effect on the Servicer.

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon
the Pool Receivables or Collections with respect thereto, (B) any Person other than
the Seller, the Servicer or the Administrator shall obtain any rights or direct any
action with respect to any Lock-Box Account (or related lock-box or

IV-7

 

post office box) or (C) any Obligor shall receive any change in payment
instructions with respect to Pool Receivable(s) from a Person other than the
Servicer or the Administrator.

     (v) ERISA. Promptly after the filing or receiving thereof notice of
and, upon the request of the Administrator, copies of all reports and notices that
ACI or any Affiliate of ACI files under ERISA with the Internal Revenue Service, the
Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that such
Person or any of its Affiliates receives from any of the foregoing or from any
multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which such
Person or any Affiliate of ACI is or was, within the preceding five years, a
contributing employer, in each case in respect of the assessment of withdrawal
liability or an event or condition that could, in the aggregate, result in the
imposition of liability on ACI and/or any such Affiliate.

     (vi) Name Changes. At least thirty days before any change in ACI, any
Originator’s or the Transferor’s name or any other change requiring the amendment of
UCC financing statements, a notice setting forth such changes and the effective date
thereof.

     (vii) Material Adverse Change. A material adverse change in the
business, operations, property or financial or other condition of ACI or any
Originator or the Transferor or any of their respective Subsidiaries.

     (viii) Other Debt Default. A default or any event of default under any
other financing arrangement evidencing $40,000,000 or more of indebtedness pursuant
to which ACI, Arch Sales, any Originator, the Transferor or any of their Affiliates
is a debtor or an obligor.

     (ix) Permitted Merger. No later than 10 Business Days after the
effective date of any Permitted Merger, a notice setting forth, in reasonable
detail, the terms, conditions and Persons involved therein.

     (c) Conduct of Business. The Servicer will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly incorporated, validly existing and in
good standing as a domestic corporation in its jurisdiction of incorporation and maintain all
requisite authority to conduct its business in each jurisdiction in which its business is conducted
if the failure to have such authority could reasonably be expected to have a Material Adverse
Effect.

     (d) Compliance with Laws. The Servicer will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject if the failure
to comply could reasonably be expected to have a Material Adverse Effect.

     (e) Furnishing of Information and Inspection of Receivables. The Servicer will
furnish to the Administrator and each Purchaser Agent from time to time such information with

IV-8

 

respect to the Pool Receivables as the Administrator or any Purchaser Agent may reasonably
request. The Servicer will, at the Servicer’s expense, during regular business hours with prior
written notice, (i) permit the Administrator and/or any Purchaser Agent, or their respective agents
or representatives, (A) to examine and make copies of and abstracts from all books and records
relating to the Pool Receivables or other Pool Assets and (B) to visit the offices and properties
of the Servicer for the purpose of examining such books and records, and to discuss matters
relating to the Pool Receivables, other Pool Assets or the Servicer’s performance hereunder or
under the other Transaction Documents to which it is a party with any of the officers, directors,
employees or independent public accountants of the Servicer (provided that representatives of the
Servicer are present during such discussions) having knowledge of such matters and (ii) without
limiting the provisions of clause (i) above, during regular business hours, at the
Servicer’s expense, upon prior written notice from the Administrator or such Purchaser Agent,
permit certified public accountants or other auditors acceptable to the Administrator to conduct, a
review of its books and records with respect to such Receivables; provided, that the
Servicer shall be required to reimburse the Administrator and the Purchaser Agents for only one (1)
such audit per year unless a Termination Event has occurred and is continuing.

     (f) Payments on Receivables, Accounts. The Servicer will at all times instruct all
Obligors to deliver payments on the Pool Receivables to a Lock-Box Account. If any such payments
or other Collections are received by the Servicer, it shall hold such payments in trust for the
benefit of the Administrator and the Purchasers and promptly (but in any event within two Business
Days after receipt) remit such funds into a Lock-Box Account. The Servicer will cause each
Lock-Box Bank to comply with the terms of each applicable Lock-Box Agreement. The Servicer will
not permit the funds other than Collections on Pool Receivables and other Pool Assets to be
deposited into any Lock-Box Account. If such funds are nevertheless deposited into any Lock-Box
Account, the Servicer will promptly identify such funds for segregation. The Servicer will not
commingle Collections or other funds to which the Administrator, any Purchaser Agent or any
Purchaser is entitled with any other funds. The Servicer shall only add, a Lock-Box Bank (or the
related lock-box or post office box), or Lock-Box Account to those listed on Schedule II to
this Agreement, if the Administrator has received notice of such addition, a copy of any new
Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement in form and
substance acceptable to the Administrator from any such new Lock-Box Bank. The Servicer shall only
terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post office box)
with the prior written consent of the Administrator.

     (g) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Servicer will not alter the delinquency status or adjust
the Outstanding Balance or otherwise modify the terms of any Pool Receivable in any material
respect, or amend, modify or waive, in any material respect any term or condition of any related
Contract (which term or condition relates to payments under, or the enforcement of, such Contract).
The Servicer shall at its expense, timely and fully perform and comply with all provisions,
covenants and other promises required to be observed by it under the Contracts related to the Pool
Receivables, and timely and fully comply with the Credit and Collection Policy with regard to each
Pool Receivable and the related Contract (which term or condition relates to payments under, or the
enforcement of, such Contract).

IV-9

 

     (h) Change in Business. The Servicer will not (i) make any material change in the
character of its business or (ii) make any change in any Credit and Collection Policy that could
reasonably be expected to have a Material Adverse Effect, in the case of either (i) or (ii) above,
without the prior written consent of the Administrator and the Majority Purchaser Agents. The
Servicer shall not make any written change in any Credit and Collection Policy without giving prior
written notice thereof to the Administrator and each Purchaser Agent.

     (i) Records. The Servicer will maintain and implement administrative and operating
procedures (including an ability to recreate records evidencing Pool Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep and maintain all
documents, books, records, computer tapes and disks and other information reasonably necessary or
advisable for the collection of all Pool Receivables (including records adequate to permit the
daily identification of each Pool Receivable and all Collections of and adjustments to each
existing Pool Receivable).

     (j) Change in Payment Instructions to Obligors. The Servicer shall not add to,
replace or terminate any of the Lock-Box Accounts (or any related lock-box or post office box)
listed in Schedule II hereto or make any change in its instructions to the Obligors
regarding payments to be made to the Lock-Box Accounts (or any related lock-box or post office
box), unless the Administrator shall have received (x) prior written notice of such addition,
termination or change and (y) signed and acknowledged Lock-Box Agreements with respect to such new
Lock-Box Accounts (or any related lock-box or post office box).

     (k) Ownership Interest, Etc. The Servicer shall, at its expense, take all action
necessary or reasonably desirable to establish and maintain a valid and enforceable undivided
percentage ownership or security interest, to the extent of the Purchased Interest, in the Pool
Receivables, the Related Security and Collections with respect thereto, and a first priority
perfected security interest in the Pool Assets, in each case free and clear of any Adverse Claim,
in favor of the Administrator (on behalf of the Purchasers), including taking such action to
perfect, protect or more fully evidence the interest of the Administrator (on behalf of the
Purchasers) as the Administrator may reasonably request.

     (l) Further Assurances; Change in Name or Jurisdiction of Origination, etc. The
Servicer hereby authorizes and hereby agrees from time to time, at its own expense, promptly to
execute (if necessary) and deliver all further instruments and documents, and to take all further
actions, that may be necessary or desirable, or that the Administrator may reasonably request, to
perfect, protect or more fully evidence the purchases or issuances made under this Agreement and/or
security interest granted pursuant to this Agreement or any other Transaction Document, or to
enable the Administrator (on behalf of the Purchasers) to exercise and enforce their respective
rights and remedies under this Agreement or any other Transaction Document. Without limiting the
foregoing, the Servicer hereby authorizes, and will, upon the request of the Administrator, at the
Servicer’s own expense, execute (if necessary) and file such financing or continuation statements
(including fixture filings and as extracted collateral filings), or amendments thereto, and such
other instruments and documents, that may be necessary or desirable, or that the Administrator may
reasonably request, to perfect, protect or evidence any of the foregoing.

IV-10

 

     (i) The Servicer authorizes the Administrator to file financing or continuation
statements, and amendments thereto and assignments thereof, relating to the
Receivables and the Related Security, the related Contracts and the Collections with
respect thereto and the other collateral subject to a lien under any Transaction
Document without the signature of the Servicer. A photocopy or other reproduction
of this Agreement shall be sufficient as a financing statement where permitted by
law.

     (ii) The Servicer shall at all times be organized under the laws of the State
of Delaware and shall not take any action to change its jurisdiction of
organization.

     (iii) The Servicer will not change its name, location, identity or corporate
structure unless (x) the Administrator and each Purchaser Agent shall have received
at least thirty (30) days’ advance written notice of such change, (y) the Servicer,
at its own expense, shall have taken all action necessary or appropriate to perfect
or maintain the perfection of the lien under this Agreement (including, without
limitation, the filing of all financing statements and the taking of such other
action as the Administrator may request in connection with such change or
relocation), and (z) if requested by the Administrator or any Purchaser Agent, the
Servicer shall cause to be delivered to the Administrator and each Purchaser Agent,
an opinion, in form and substance satisfactory to the Administrator and each such
Purchaser Agent as to such UCC perfection and priority matters as such Person may
request at such time.

     3. Separate Existence. Each of the Seller and the Servicer hereby acknowledges that the
Purchasers, the Purchaser Agents and the Administrator are entering into the transactions
contemplated by this Agreement and the other Transaction Documents in reliance upon the Seller’s
identity as a legal entity separate from ACI and its Affiliates. Therefore, from and after the
date hereof, each of the Seller and ACI shall take all steps specifically required by this
Agreement or reasonably required by the Administrator, any Purchaser Agent or any Purchaser to
continue the Seller’s identity as a separate legal entity and to make it apparent to third Persons
that the Seller is an entity with assets and liabilities distinct from those of ACI and any other
Person, and is not a division of ACI, its Affiliates or any other Person. Without limiting the
generality of the foregoing and in addition to and consistent with the other covenants set forth
herein, each of the Seller and ACI shall take such actions as shall be required in order that:

     (a) The Seller will be a limited liability company whose primary activities are restricted in
its LLC Agreement to: (i) purchasing or otherwise acquiring from the Transferor, owning, holding,
granting security interests or selling interests in Pool Assets, (ii) entering into agreements for
the selling and servicing of the Receivables Pool, and (iii) conducting such other activities as it
deems necessary or appropriate to carry out its primary activities;

     (b) The Seller shall not engage in any business or activity except as set forth in this
Agreement nor, incur any indebtedness or liability other than as expressly permitted by the
Transaction Documents;

IV-11

 

     (c) (i) Not less than one member of the Seller’s board of directors (the “Independent
Director”) shall be a natural person (A) who is not, and has not been at any time during the
five (5) years preceding such person’s initial appointment: (1) a direct, indirect or beneficial
stockholder, equityholder, officer, director (other than the Independent Director), employee,
member, manager, attorney, partner, affiliate, or supplier of Seller, ACI, Arch Sales, any
Originator, the Transferor or any of their respective Affiliates (the “Arch Group”);
provided, that indirect stock ownership of any member of the Arch Group by any person
through a mutual fund or similar diversified investment pool shall not disqualify such person from
being an Independent Director unless such person maintains direct or indirect control of the
investment decisions of such mutual fund or similar diversified investment pool, (2) a customer of,
supplier to or other person who derives more than 1% of its purchases or revenues from its
activities with any member of the Arch Group; (3) a trustee, conservator or receiver for any member
of the Arch Group; (4) a person or other entity controlling, controlled by or under common control
with any such equity holder, partner, member, manager, customer, supplier or other person; or (5) a
member of the immediate family of any such equityholder, director, officer, employee, member,
manager, partner, customer, supplier or other person and (B) (1) who has (x) prior experience as an
independent director for a corporation or an independent manager of a limited liability company
whose charter documents required the unanimous consent of all independent director or independent
managers thereof before such corporation could consent to the institution of bankruptcy or
insolvency proceedings against it or could file a petition seeking relief under any applicable
federal or state law relating to bankruptcy and (y) at least three years of employment experience
with one or more entities that provide, in the ordinary course of their respective businesses,
advisory, management or placement services to issuers of securitization or structured finance
instruments, agreements or securities and (2) is reasonably acceptable to the Administrator and
each Purchaser Agent (such acceptability of any Independent Director appointed after the date
hereof must be evidenced in writing signed by the Administrator and each Purchaser Agent). Under
this clause (c), the term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of management, policies or activities of a Person, whether
through ownership of voting securities, by contract or otherwise. (ii) The operating agreement of
the Seller shall provide that: (A) the Seller’s board of managers or other governing body shall not
approve, or take any other action to cause the filing of, a voluntary bankruptcy petition with
respect to the Seller unless the Independent Director shall approve the taking of such action in
writing before the taking of such action, and (B) such provision and each other provision requiring
an Independent Director cannot be amended without the prior written consent of the Independent
Director.

     (d) The Independent Director shall not at any time serve as a trustee in bankruptcy for the
Seller, ACI, any Originator, the Transferor or any of their respective Affiliates;

     (e) The Seller shall maintain its organizational documents in conformity with this Agreement,
such that it does not amend, restate, supplement or otherwise modify its ability to comply with the
terms and provisions of any of the Transaction Documents, including, without limitation, clause
(i) of Exhibit V;

     (f) The Seller shall conduct its affairs strictly in accordance with its organizational
documents and observe all necessary, appropriate and customary company formalities, including,

IV-12

 

but not limited to, holding all regular and special members’ and board of directors’ meetings
appropriate to authorize all limited liability company action, keeping separate and accurate
minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken
or to be taken, and maintaining accurate and separate books, records and accounts, including, but
not limited to, payroll and intercompany transaction accounts;

     (g) Any employee, consultant or agent of the Seller will be compensated from the Seller’s
funds for services provided to the Seller, and to the extent that Seller shares the same officers
or other employees as ACI (or any other Affiliate thereof), the salaries and expenses relating to
providing benefits to such officers and other employees shall be fairly allocated among such
entities, and each such entity shall bear its fair share of the salary and benefit costs associated
with such common officers and employees. The Seller will not engage any agents other than its
attorneys, auditors and other professionals, and a servicer and any other agent contemplated by the
Transaction Documents for the Receivables Pool, which servicer will be fully compensated for its
services by payment of the Servicing Fee, and a manager, which manager will be fully compensated
from the Seller’s funds;

     (h) The Seller will contract with the Servicer to perform for the Seller all operations
required on a daily basis to service the Receivables Pool. The Seller will pay the Servicer the
Servicing Fee pursuant hereto. The Seller will not incur any indirect or overhead expenses for
items shared with ACI (or any other Affiliate thereof) that are not reflected in the Servicing Fee.
To the extent, if any, that the Seller (or any Affiliate thereof) shares items of expenses not
reflected in the Servicing Fee or the manager’s fee, such as legal, auditing and other professional
services, such expenses will be allocated to the extent practical on the basis of actual use or the
value of services rendered, and otherwise on a basis reasonably related to the actual use or the
value of services rendered; it being understood that ACI shall pay all expenses relating to the
preparation, negotiation, execution and delivery of the Transaction Documents, including legal,
agency and other fees;

     (i) The Seller’s operating expenses will not be paid by ACI, the Transferor or any Originator
or any Affiliate thereof;

     (j) The Seller will have its own separate stationery;

     (k) The Seller’s books and records will be maintained separately from those of ACI and any
other Affiliate thereof and in a manner such that it will not be difficult or costly to segregate,
ascertain or otherwise identify the assets and liabilities of Seller;

     (l) All financial statements of ACI or any Affiliate thereof that are consolidated to include
the Seller will disclose that (i) the Seller’s sole business consists of the purchase or acceptance
through capital contributions of the Receivables and Related Rights from the Transferor and the
subsequent retransfer of or granting of a security interest in such Receivables and Related Rights
to certain purchasers party to this Agreement, (ii) the Seller is a separate legal entity with its
own separate creditors who will be entitled, upon its liquidation, to be satisfied out of the
Seller’s assets prior to any assets or value in the Seller becoming available to the Seller’s

IV-13

 

equity holders and (iii) the assets of the Seller are not available to pay creditors of ACI or
any other Affiliates of ACI or the Originators or the Transferor;

     (m) The Seller’s assets will be maintained in a manner that facilitates their identification
and segregation from those of ACI or any Affiliates thereof;

     (n) The Seller will strictly observe corporate formalities in its dealings with ACI or any
Affiliates thereof, and funds or other assets of the Seller will not be commingled with those of
ACI or any Affiliates thereof except as permitted by this Agreement in connection with servicing
the Pool Receivables. The Seller shall not maintain joint bank accounts or other depository
accounts to which ACI or any Affiliate thereof (other than ACI in its capacity as the Servicer) has
independent access. The Seller is not named, and has not entered into any agreement to be named,
directly or indirectly, as a direct or contingent beneficiary or loss payee on any insurance policy
with respect to any loss relating to the property of ACI or any Subsidiaries or other Affiliates
thereof. The Seller will pay to the appropriate Affiliate the marginal increase or, in the absence
of such increase, the market amount of its portion of the premium payable with respect to any
insurance policy that covers the Seller and such Affiliate;

     (o) The Seller will maintain arm’s-length relationships with ACI (and any Affiliates thereof).
Any Person that renders or otherwise furnishes services to the Seller will be compensated by the
Seller at market rates for such services it renders or otherwise furnishes to the Seller. Neither
the Seller on the one hand, nor ACI, on the other hand, will be or will hold itself out to be
responsible for the debts of the other or the decisions or actions respecting the daily business
and affairs of the other. The Seller and ACI will immediately correct any known misrepresentation
with respect to the foregoing, and they will not operate or purport to operate as an integrated
single economic unit with respect to each other or in their dealing with any other entity;

     (p) The Seller shall have a separate area from ACI for its business (which may be located at
the same address as such entities) and to the extent that any other such entity have offices in the
same location, there shall be a fair and appropriate allocation of overhead costs between them, and
each shall bear its fair share of such expenses; and

     (q) To the extent not already covered in paragraphs (a) through (o) above, Seller shall comply
and/or act in accordance with the provisions of Section 6.4 of the Sale and Contribution Agreement.

     4. Post-Closing Covenant. Each of the Seller and the Servicer hereby covenants and agrees
that it shall cause to be duly recorded in each applicable jurisdiction, within forty-five (45)
days of the Closing Date, amendments and/or releases to mortgages that are effective as financing
statements covering as-extracted collateral as contemplated by the Release Agreement, in each case
in form and substance satisfactory to the Administrator.

IV-14

 

EXHIBIT V

TERMINATION EVENTS

     Each of the following shall be a “Termination Event”:

     (a) (i) the Seller, ACI, any Originator, the Transferor or the Servicer shall fail to perform
or observe any term, covenant or agreement under the Agreement or any other Transaction Document,
and, except as otherwise provided herein, such failure, solely to the extent capable of cure, shall
continue for 30 days, (ii) the Seller or the Servicer shall fail to make when due any payment or
deposit to be made by it under the Agreement or any other Transaction Document and such failure
shall continue unremedied for one Business Day, or (iii) Arch Sales shall resign as Servicer, and
no successor Servicer reasonably satisfactory to the Administrator shall have been appointed;

     (b) Arch Sales (or any Affiliate thereof) shall fail to transfer to any successor Servicer
when required any rights pursuant to the Agreement that Arch Sales (or such Affiliate) then has as
Servicer;

     (c) any representation or warranty made or deemed made by the Seller, ACI, any Originator, the
Transferor or the Servicer (or any of their respective officers) under or in connection with the
Agreement or any other Transaction Document, or any information or report delivered by the Seller,
ACI, any Originator, the Transferor or the Servicer pursuant to the Agreement or any other
Transaction Document, shall prove to have been incorrect or untrue when made or deemed made or
delivered, and shall remain incorrect or untrue for 10 Business Days;

     (d) the Seller or the Servicer shall fail to deliver the Information Package pursuant to the
Agreement, and such failure shall remain unremedied for two Business Days;

     (e) the Agreement or any purchase or reinvestment pursuant to the Agreement shall for any
reason: (i) cease to create, or the Purchased Interest shall for any reason cease to be, a valid
and enforceable perfected undivided percentage ownership or security interest to the extent of the
Purchased Interest in each Pool Receivable, the Related Security and Collections with respect
thereto, free and clear of any Adverse Claim, or (ii) cease to create with respect to the Pool
Assets, or the interest of the Administrator with respect to such Pool Assets shall cease to be, a
valid and enforceable first priority perfected security interest, free and clear of any Adverse
Claim;

     (f) the Seller, ACI, the Transferor or any Originator shall generally not pay its debts as
such debts become due, or shall admit in writing its inability to pay its debts generally, or shall
make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against the Seller, ACI, the Transferor or any Originator seeking to adjudicate it as bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee, custodian or other similar official for it or for any substantial part of
its property and, in the case of any such proceeding instituted against it (but not instituted

V-1

 

by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days,
or any of the actions sought in such proceeding (including the entry of an order for relief
against, or the appointment of a receiver, trustee, custodian or other similar official for, it or
for any substantial part of its property) shall occur; or the Seller, ACI, the Transferor or any
Originator shall take any corporate or organizational action to authorize any of the actions set
forth above in this paragraph;

     (g) (i) the (A) Default Ratio shall exceed 3% or (B) the Delinquency Ratio shall exceed 6%, or
(ii) the average for three consecutive calendar months of: (A) the Default Ratio shall exceed 2%,
(B) the Delinquency Ratio shall exceed 4% or (C) the Dilution Ratio shall exceed 3%, or (iii) Days’
Sales Outstanding shall exceed 48 days;

     (h) a Change in Control shall occur;

     (i) at any time (i) the sum of (A) the Aggregate Capital, plus the Adjusted LC Participation
Amount, plus (B) the Total Reserves exceeds (ii) the sum of (A) the Net Receivables Pool Balance at
such time, plus (B) the Purchasers’ Share of the amount of Collections then on deposit in the
Lock-Box Accounts (other than amounts set aside therein representing Discount and fees), and such
circumstance shall not have been cured within two Business Days;

     (j) ACI or any of its Subsidiaries (other than any Excluded Subsidiary) shall fail to pay any
principal of or premium or interest on any of its Debt that is outstanding in a principal amount of
at least $40,000,000 in the aggregate when the same becomes due and payable (whether by scheduled
maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement, mortgage, indenture or
instrument relating to such Debt (whether or not such failure shall have been waived under the
related agreement), (ii) any other event shall occur or condition shall exist under any agreement,
mortgage, indenture or instrument relating to any such Debt and shall continue after the applicable
grace period, if any, specified in such agreement, mortgage, indenture or instrument (whether or
not such failure shall have been waived under the related agreement), if the effect of such event
or condition is to give the applicable debtholders the right (whether acted upon or not) to
accelerate the maturity of such Debt, or (iii) any such Debt shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required prepayment),
redeemed, purchased or defeased, or an offer to repay, redeem, purchase or defease such Debt shall
be required to be made, in each case before the stated maturity thereof;

     (k) ACI shall fail to perform any of its obligations under the Performance Guaranty;

     (l) (i) a contribution failure shall occur with respect to any Benefit Plan sufficient to give
rise to a lien on any of the assets of Seller, any Originator, the Transferor, ACI or any ERISA
Affiliate under Section 302(f) of ERISA and such failure is not cured and any related lien released
within 10 days or (ii) either the Internal Revenue Service or the Pension Benefit Guaranty
Corporation shall have filed one or more notices of lien asserting a claim or claims pursuant to
the Internal Revenue Code, or ERISA, as applicable, against the assets of (a) the

V-2

 

Seller or (b) the Servicer, the Transferor, any Originator, ACI or any ERISA Affiliate (other
than the Seller) in an amount in excess of $250,000 and such lien is not released within 10 days;

     (m) the Seller or ACI shall fail to (x) provide the Administrator and each Purchaser Agent
with at least ten days’ prior written notice of any replacement or appointment of any director that
is to serve as an Independent Director on the Seller’s board of directors or (y) obtain the prior
written consent of the Administrator and each Purchaser Agent for any replacement or appointment of
any director that is to serve as an Independent Director on the Seller’s board of directors and, in
either case, such failure shall continue for ten days; or

     (n) Any Letter of Credit is drawn upon and, unless as a result of the LC Bank’s failure to
provide the notice required by Section 1.14(b), not fully reimbursed pursuant to
Section 1.14 (including, if applicable, with the proceeds of any funding by any Purchaser)
within two Business Days from the date of such draw.

V-3exv10w17

EXHIBIT 10.17

EXECUTION

 

Third Amended and Restated Credit Agreement

dated as of May 4, 2010

among

STATER BROS. MARKETS,

STATER BROS. HOLDINGS INC.

and

Bank of America, N.A.,

as Administrative Agent and

L/C Issuer

and

The Other Financial

Institutions Party Hereto

Banc of America Securities LLC,

as

Sole Arranger and Sole Book Manager

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Section	 	Page
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	1.01 Defined Terms
	 	 	1	 
	 

	1.02 Other Interpretive Provisions
	 	 	23	 
	 

	1.03 Accounting Terms
	 	 	24	 
	 

	1.04 Rounding
	 	 	24	 
	 

	1.05 Times of Day
	 	 	25	 
	 

	1.06 Letter of Credit Amounts
	 	 	25	 
	 
	 	 	 	 
	ARTICLE II the COMMITMENTS and Credit Extensions
	 	 	25	 
	 
	 	 	 	 
	2.01 Loans
	 	 	25	 
	 

	2.02 Borrowings, Conversions and Continuations of Loans
	 	 	25	 
	 

	2.03 Letters of Credit
	 	 	27	 
	 

	2.04 Prepayments
	 	 	36	 
	 

	2.05 Termination or Reduction of Commitments
	 	 	36	 
	 

	2.06 Repayment of Loans
	 	 	37	 
	 

	2.07 Interest
	 	 	37	 
	 

	2.08 Fees
	 	 	37	 
	 

	2.09 Computation of Interest and Fees
	 	 	38	 
	 

	2.10 Evidence of Debt
	 	 	38	 
	 

	2.11 Payments Generally; Administrative Agent’s Clawback
	 	 	39	 
	 

	2.12 Sharing of Payments by Lenders
	 	 	40	 
	 
	 	 	 	 
	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	41	 
	 
	 	 	 	 
	3.01 Taxes
	 	 	41	 
	 

	3.02 Illegality
	 	 	44	 

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	Section	 	Page
	3.03 Inability to Determine Rates
	 	 	45	 
	 

	3.04 Increased Costs
	 	 	45	 
	 

	3.05 Compensation for Losses
	 	 	47	 
	 

	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	47	 
	 

	3.07 Survival
	 	 	48	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT TO Credit Extensions
	 	 	48	 
	 
	 	 	 	 
	4.01 Conditions of Initial Credit Extension
	 	 	48	 
	 

	4.02 Conditions to all Credit Extensions
	 	 	49	 
	 
	 	 	 	 
	ARTICLE
 V REPRESENTATIONS AND WARRANTIES
	 	 	50	 
	 
	 	 	 	 
	 

	5.01 Existence, Qualification and Power
	 	 	50	 
	 

	5.02 Power; Authorization; Enforceable Obligations
	 	 	50	 
	 

	5.03 No Legal Bar
	 	 	50	 
	 

	5.04 Financial Statements; No Material Adverse Effect
	 	 	51	 
	 

	5.05 Litigation
	 	 	51	 
	 

	5.06 No Default
	 	 	51	 
	 

	5.07 Ownership of Property; Liens
	 	 	51	 
	 

	5.08 Taxes
	 	 	51	 
	 

	5.09 Margin Regulations; Investment Company Act
	 	 	52	 
	 

	5.10 ERISA Compliance
	 	 	52	 
	 

	5.11 Intangible Assets
	 	 	52	 
	 

	5.12 Compliance with Laws
	 	 	53	 
	 

	5.13 Environmental Compliance
	 	 	53	 
	 

	5.14 Insurance
	 	 	53	 
	 

	5.15 Stockholders Agreements
	 	 	53	 
	 

	5.16 Disclosure
	 	 	53	 

-ii-

 

	 	 	 	 	 
	Section	 	Page
	5.17 Subsidiaries; Equity Interests
	 	 	53	 
	 
	 	 	 	 
	ARTICLE VI AFFIRMATIVE COVENANTS OF BORROWER
	 	 	53	 
	 
	 	 	 	 
	 

	6.01 Financial Statements
	 	 	53	 
	 

	6.02 Certificates; Notices and Other Information
	 	 	55	 
	 

	6.03 Payment of Obligations
	 	 	57	 
	 

	6.04 Preservation of Existence, Etc..
	 	 	57	 
	 

	6.05 Maintenance of Properties
	 	 	57	 
	 

	6.06 Maintenance of Insurance
	 	 	57	 
	 

	6.07 Compliance with Laws
	 	 	57	 
	 

	6.08 Inspection Rights
	 	 	57	 
	 

	6.09 Books and Records
	 	 	58	 
	 

	6.10 Compliance with ERISA
	 	 	58	 
	 

	6.11 Compliance With Agreements
	 	 	58	 
	 

	6.12 Use of Proceeds
	 	 	58	 
	 

	6.13 Further Assurances
	 	 	58	 
	 

	6.14 Execution of Guaranty by Future Material Subsidiaries
	 	 	58	 
	 
	 	 	 	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	59	 
	 
	 	 	 	 
	7.01 Indebtedness
	 	 	59	 
	 

	7.02 Liens and Negative Pledges
	 	 	60	 
	 

	7.03 Fundamental Changes
	 	 	61	 
	 

	7.04 Dispositions
	 	 	61	 
	 

	7.05 Investments
	 	 	62	 
	 

	7.06 Lease Obligations
	 	 	62	 
	 

	7.07 Restricted Payments
	 	 	62	 
	 

	7.08 ERISA
	 	 	63	 

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	Section	 	Page
	7.09 Change in Nature of Business
	 	 	63	 
	 

	7.10 Transactions with Affiliates
	 	 	63	 
	 

	7.11 Hostile Acquisitions
	 	 	63	 
	 

	7.12 Financial Covenants
	 	 	63	 
	 

	7.13 Change in Auditors
	 	 	64	 
	 

	7.14 Amendments or Waivers of Senior Note Documents
	 	 	64	 
	 

	7.15 Use of Capital Contributions.
	 	 	64	 
	 

	7.16 Use of Proceeds
	 	 	64	 
	 
	 	 	 	 
	ARTICLE VIII HOLDINGS COVENANTS
	 	 	64	 
	 
	 	 	 	 
	8.01 Indebtedness
	 	 	64	 
	 

	8.02 Restricted Payments
	 	 	65	 
	 

	8.03 Change in Nature of Business; Ownership of Assets
	 	 	65	 
	 

	8.04 Transactions with Affiliates
	 	 	65	 
	 

	8.05 Amendments or Waivers of Senior Note Documents
	 	 	66	 
	 
	 	 	 	 
	ARTICLE IX EVENTS OF DEFAULT AND REMEDIES
	 	 	66	 
	 

	9.01 Events of Default
	 	 	66	 
	 

	9.02 Remedies Upon Event of Default
	 	 	69	 
	 

	9.03 Application of Funds
	 	 	69	 
	 
	 	 	 	 
	ARTICLE X ADMINISTRATIVE AGENT
	 	 	70	 
	 
	 	 	 	 
	10 .01 Appointment and Authority
	 	 	70	 
	 

	10.02 Rights as a Lender
	 	 	71	 
	 

	10.03 Exculpatory Provisions
	 	 	71	 
	 

	10.04 Reliance by Administrative Agent
	 	 	72	 
	 

	10.05 Delegation of Duties
	 	 	72	 
	 

	10.06 Resignation of Administrative Agent
	 	 	72	 

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	Section	 	Page
	10.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	73	 
	 

	10.08 No Other Duties, Etc.
	 	 	73	 
	 

	10.09 Administrative Agent May File Proofs of Claim
	 	 	73	 
	 

	10.10 Guaranty Matters
	 	 	74	 
	 

	10.11 Lender Cash Management Agreements and Lender Hedge Agreements
	 	 	74	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	75	 
	 
	 	 	 	 
	11.01 Amendments, Etc.
	 	 	75	 
	 

	11.02 Notices; Effectiveness; Electronic Communication.
	 	 	76	 
	 

	11.03 No Waiver; Cumulative Remedies; Enforcement
	 	 	78	 
	 

	11.04 Expenses; Indemnity; Damage Waiver.
	 	 	78	 
	 

	11.05 Payments Set Aside
	 	 	80	 
	 

	11.06 Successors and Assigns.
	 	 	81	 
	 

	11.07 Treatment of Certain Information; Confidentiality
	 	 	84	 
	 

	11.08 Right of Setoff
	 	 	85	 
	 

	11.09 Interest Rate Limitation
	 	 	86	 
	 

	11.10 Counterparts; Integration; Effectiveness
	 	 	86	 
	 

	11.11 Survival of Representations and Warranties
	 	 	86	 
	 

	11.12 Severability
	 	 	86	 
	 

	11.13 Replacement of Lenders
	 	 	87	 
	 

	11.14 Governing Law; Jurisdiction; Etc.
	 	 	87	 
	 

	11.15 Waiver of Jury Trial
	 	 	88	 
	 

	11.16 No Advisory or Fiduciary Responsibility
	 	 	89	 
	 

	11.17 Electronic Execution of Assignments and Certain Other Documents
	 	 	89	 
	 

	11.18 USA PATRIOT Act
	 	 	89	 
	 

	11.19 Time of the Essence
	 	 	90	 

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	Section	 	Page
	11.20 California Judicial Reference
	 	 	90	 
	 

	11.21 Amendment and Restatement
	 	 	90	 

SCHEDULES

	 	 	 

	2.01

	 	Commitments and Applicable Percentages
	2.03

	 	Existing Letters of Credit
	5.17

	 	Subsidiaries; Equity Interests
	7.01

	 	Existing Indebtedness
	7.02

	 	Existing Liens
	11.02

	 	Administrative Agent’s Office; Certain Addresses for Notices

EXHIBITS

	 	 	 

	A

	 	Assignment and Assumption
	B

	 	Compliance Certificate
	C

	 	Loan Notice
	D

	 	Note

-vi-

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

     This THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of
May 4, 2010, among STATER BROS. MARKETS, a California corporation (the “Borrower”), STATER
BROS. HOLDINGS INC., a Delaware corporation (“Holdings”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”), and BANK
OF AMERICA, N.A., as Administrative Agent and L/C Issuer.

RECITALS

     WHEREAS, the parties hereto have heretofore entered into the Second Amended and Restated
Credit Agreement dated as of April 16, 2007 (as heretofore amended, the “Existing Credit
Agreement”).

     WHEREAS, the Borrower has requested that the credit facilities established by the Existing
Credit Agreement be extended and the other terms thereof be amended, all as set forth herein.

     WHEREAS, the parties hereto desire to amend and restate the Existing Credit Agreement in its
entirety with this Agreement.

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

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

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

     “Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02, or such other address or account as
the Administrative Agent may from time to time notify to the Borrower and the Lenders.

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

     “Affiliate” means, with respect to any Person, another Person that directly, or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

     “Aggregate Commitments” means the Commitments of all the Lenders. As of the Closing
Date, the Aggregate Commitments are $100,000,000.

     “Agreement” means this Credit Agreement.

 - 1 - 

 

     “Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 9.02 or
if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be
determined based on the Applicable Percentage of such Lender most recently in effect, giving effect
to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

     “Applicable Rate” means a per annum rate equal to:

	 	(a)	 	with respect to Base Rate Loans, 1.00%;
	 
	 	(b)	 	with respect to Eurodollar Rate Loans, 1.75%;
	 
	 	(c)	 	with respect to the Commitment fees described in Section 2.08(a), 0.25%; and
	 
	 	(d)	 	with respect to standby Letters of Credit Fees, 1.25%.

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

     “Arranger” means Banc of America Securities LLC, in its capacity as sole arranger and
sole book manager.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by
Section 11.06(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit A or any other form approved by the Administrative Agent.

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

     “Audited Financial Statements” means, collectively, (a) the audited consolidated
balance sheet of Holdings and its Subsidiaries for the Fiscal Year ended September, 2009 and the
related consolidated statements of income and cash flows for such Fiscal Year, and (b) the audited
consolidated balance sheet of Borrower and its Subsidiaries for the Fiscal Year ended
September, 2009 and the related consolidated statements of income and cash flows for such Fiscal
Year.

 - 2 - 

 

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.05, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 9.02.

     “Bank of America” means Bank of America, N.A. and its successors.

     “Base Rate” means for any day a fluctuating rate per annum equal to the higher of
(a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a
rate set by Bank of America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such announced rate. Any change in
such rate announced by Bank of America shall take effect at the opening of business on the day
specified in the public announcement of such change.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5
under the Exchange Act, except that in calculating the beneficial ownership of any particular
“person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be
deemed to have beneficial ownership of all securities that such “person” has the right to acquire
by conversion or exercise of other securities, whether such right is currently exercisable or is
exercisable only after the passage of time or upon the occurrence of a subsequent condition. The
terms “Beneficially Owns” and “Beneficially Owned” shall have a corresponding meaning.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Borrower Materials” has the meaning specified in Section 6.02.

     “Borrowing” means a borrowing consisting of simultaneous Loans of the same Type and,
in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Lenders
pursuant to Section 2.01.

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state of
California and, if such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar
market.

     “Cash Collateralize” has the meaning specified in Section 2.03(g).

     “Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, credit or debit card, electronic funds transfer and
other cash management arrangements.

 - 3 - 

 

     “Cash Management Bank” means any Person that, at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party to such
Cash Management Agreement. Bank of America and its Affiliates shall be considered Cash Management
Banks with respect to each Cash Management Agreement with the Borrower existing on the Closing
Date.

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

     “Change of Control” means the occurrence of any of the following:

	 	(1)	 	the direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related transactions, of
all or substantially all of the properties or assets of Holdings and its Subsidiaries
taken as a whole to any “person” or “group” of persons (as such terms are used in
Section 13(d)(3) of the Exchange Act) other than (A) any Permitted Holder, (B) La
Cadena or (C) any La Cadena Successor;
	 
	 	(2)	 	the adoption of a plan relating to the liquidation or dissolution of Holdings;
	 
	 	(3)	 	the consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that any “person” or “group” (as defined
above), other than (A) any Permitted Holder, (B) La Cadena, or (C) any La Cadena
Successor, becomes the Beneficial Owner, directly or indirectly, or more than 50% of
the Voting Stock of Holdings, measured by voting power rather than number of shares;
	 
	 	(4)	 	the first day on which a majority of the members of the Board of Directors of
Holdings are not Continuing Directors;
	 
	 	(5)	 	Holdings consolidates with or merges with or into any Person, or any Person
consolidates with or merges with or into Holdings, in any such event pursuant to a
transaction in which any of the outstanding Voting Stock of Holdings or such other
Person is converted into or exchanged for cash, securities or other property, other
than any such transaction where all or a portion of the Voting Stock of Holdings
outstanding immediately prior to such transaction is converted into or exchanged for
Voting Stock (other than Disqualified Stock) of the surviving or transferee Person
constituting a majority of the outstanding shares of such Voting Stock of such
surviving or transferee Person (immediately after giving effect to such issuance); or
	 
	 	(6)	 	at any time prior to the date that a La Cadena Successor is the Beneficial
Owner of more than 50% of the Voting Stock of Holdings, Permitted Holders shall cease
to (A) have the power to vote the majority of the Equity Interests of La Cadena, (B) be
the Beneficial Owners of at least 35% of the Equity Interests in La Cadena, 

 - 4 - 

 

	 	 	 	or (C) be
the Beneficial Owners of a higher percentage of the Equity Interests in La Cadena than
any other “person” or “group” of persons (as such terms are used in Section 13(d)(3) of
the Exchange Act); or
	 
	 	(7)	 	Holdings at any time ceases to own 100% of the outstanding Voting Stock in
Borrower.

     “Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 11.01.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means, as to each Lender, its obligation to (a) make Loans to the
Borrower pursuant to Section 2.01, and (b) purchase participations in L/C Obligations, in
an aggregate principal amount at any one time outstanding not to exceed the amount set forth
opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant
to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from
time to time in accordance with this Agreement.

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

     “Consolidated EBITDA” means, for any period, for Holdings and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for such period, plus
(a) Consolidated Interest Charges deducted in determining such Consolidated Net Income plus
(b) the amount of taxes, based on or measured by income, deducted in the determining such
Consolidated Net Income, plus (c) the amount of depreciation and amortization expense
deducted in determining such Consolidated Net Income, and minus (d) any extraordinary gains
included in determining such Consolidated Net Income.

     “Consolidated Interest Charges” means, for any period, for Holdings and its
Subsidiaries on a consolidated basis, the sum of (a) all interest, premium payments, fees, charges
and related expenses payable by Holdings and its Subsidiaries in connection with borrowed money
(including capitalized interest) or in connection with the deferred purchase price of assets, in
each case to the extent treated as interest in accordance with GAAP and (b) the portion of rent
payable by Holdings and its Subsidiaries with respect to such period under capital leases that is
treated as interest in accordance with GAAP.

     “Consolidated Net Income” means, for any period, for Holdings and its Subsidiaries on
a consolidated basis, the net income of Holdings and its Subsidiaries from continuing operations
after extraordinary items (excluding gains or losses from Dispositions of assets) for that period.

     “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors of Holdings who:

	 	(1)	 	was a member of such Board of Directors on the Closing Date; or

 - 5 - 

 

     (2) was nominated for election or elected to such Board of Directors with the approval of a
majority of the Continuing Directors who were members of such Board at the time of such nomination
or election.

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

     “Control” means the possession, directly or indirectly, of the power (a) to vote 10%
or more of the securities (on a fully diluted basis) of a Person having ordinary voting power for
the election of directors or managing general partners of such Person; or (b) to direct or cause
the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have
meanings correlative thereto.

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest
rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the
Applicable Rate plus 2% per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Loans or participations in L/C Obligations required to be funded by it hereunder within one
Business Day of the date required to be funded by it hereunder unless such failure has been cured,
(b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other
amount required to be paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or unless such failure has been cured, or (c) has been deemed
insolvent or become the subject of a bankruptcy or insolvency proceeding or a government seizure.

     “Development” means Stater Bros. Development, Inc., a California corporation that is a
Wholly-Owned Subsidiary of Holdings.

 - 6 - 

 

     “Disposition” or “Dispose” means the sale, transfer, license or other
disposition (including any sale and leaseback transaction) of any property by any Person, including
any sale, assignment, transfer or other disposal with or without recourse of any notes or accounts
receivable or any rights and claims associated therewith. For the avoidance of doubt, the issuance
by Borrower, its Subsidiaries or Development of a quit-claim deed, bill of sale or other
documentation confirming the prime-lessor’s ownership of a supermarket building upon completion of
construction thereof shall not be considered to be a “Disposition.”

     “Disqualified Stock” means any capital stock or other Equity Interest that, by its
terms (or by the terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder thereof), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that
is 91 days after the date on which the Loans mature.

     “Dollar” and “$” mean lawful money of the United States.

     “Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 11.06(b)(iii), (v) and (vi) (subject to such consents, if
any, as may be required under Section 11.06(b)(iii)).

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

     “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure
to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests in) such Person, all of the warrants, options or
other rights for the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including
partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are outstanding on any date of
determination.

 - 7 - 

 

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Sections 414(b) or (c) of the Code (and
Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the
Code).

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which might reasonably be expected to
constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; (f) the determination that any
Pension Plan is considered an at-risk plan or a plan in endangered or critical status within the
meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or (g) the
imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.

     “Eurodollar Base Rate” has the meaning specified in the definition of Eurodollar Rate.

     “Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 	 	 

	Eurodollar Rate

	 	=
	 	Eurodollar Base Rate     

1.00 – Eurodollar Reserve Percentage
	 	 

          Where,

     “Eurodollar Base Rate” means, for such Interest Period, the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest Period, for Dollar
deposits (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period. If such rate is not available at such time for any reason, then the
“Eurodollar Base Rate” for such Interest Period shall be the rate per annum determined by
the Administrative Agent to be the rate at which deposits in Dollars for delivery on the
first day of such Interest Period in same day funds in the approximate amount of the
Eurodollar Rate Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London Branch to
major banks in the London interbank eurodollar market at

 - 8 - 

 

their request at approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

     “Eurodollar Reserve Percentage” means, for any day during any Interest Period,
the reserve percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations issued from
time to time by the FRB for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency
funding (currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of the effective date of
any change in the Eurodollar Reserve Percentage.

     “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate.

     “Event of Default” has the meaning specified in Section 9.01.

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

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which the Borrower is located, (c) any backup withholding
tax that is required by the Code to be withheld from amounts payable to a Lender that has failed to
comply with clause (A) of Section 3.01(e)(ii), and (d) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section 11.13), any
United States withholding tax that (i) is required to be imposed on amounts payable to such Foreign
Lender pursuant to the Laws in force at the time such Foreign Lender becomes a party hereto (or
designates a new Lending Office) or (ii) is attributable to such Foreign Lender’s failure or
inability (other than as a result of a Change in Law) to comply with clause (B) of
Section 3.01(e)(ii), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax pursuant to Section
3.01(a)(ii).

     “Existing Credit Agreement” has the meaning set forth in the recitals to this
Agreement.

     “Existing Fixed Rate Senior Notes” means the $525,000,000 aggregate principal amount
of 8.125% fixed rate Senior Notes due 2012 issued pursuant to the Existing Indenture.

     “Existing Indenture” means the Indenture dated as of June 17, 2004, among Holdings,
the guarantors party thereto and The Bank of New York, as Trustee as amended from time to time to
the extent permitted under Section 8.05.

 - 9 - 

 

     “Existing Letter of Credit” means each Letter of Credit (as defined in the Existing
Credit Agreement) outstanding on the Closing Date that has not expired or been cancelled as of the
Closing Date, including, without limitation, the Letters of Credit listed on Schedule 2.03.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
average of the rates on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided that (a) if such day is not
a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative
Agent.

     “Fee Letter” means the letter agreement of even date herewith, between the Borrower
and Bank of America.

     “Financial Plan” has the meaning set forth in Section 6.01(c).

     “Fiscal Quarter” means any of the fiscal quarters ending on or about each December 31,
March 31, June 30 and September 30.

     “Fiscal Year” means the fiscal year of Holdings ending on or about September 30.

     “Foreign Lender” means any Lender that is organized under the Laws of a jurisdiction
other than that in which the Borrower is resident for tax purposes (including such a Lender when
acting in the capacity of the L/C Issuer). For purposes of this definition, the United States,
each State thereof and the District of Columbia shall be deemed to constitute a single
jurisdiction.

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

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

 - 10 - 

 

government (including any supra-national bodies such as the European Union or the European
Central Bank).

     “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related
primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

     “Guaranties” means, collectively, the guaranties of the Obligations executed on the
Closing Date by Holdings, Development and Super Rx, and each other guaranty of the Obligations
which is hereafter executed by any Material Subsidiary of Holdings or the Borrower pursuant to
Section 6.14.

     “Guarantor” means, (a) Holdings, Development and Super Rx, and (b) each other Material
Subsidiary of Holdings or Borrower that hereafter becomes a party to a Guaranty pursuant to
Section 6.14; in each case, until such Person is released from its Guaranty pursuant to the
terms of this Agreement.

     “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

     “Hedge Bank” means any Person that, at the time it enters into a Swap Contract
permitted under this Agreement, is a Lender or an Affiliate of a Lender, in its capacity as a party
to such Swap Contract. Bank of America and its Affiliates shall be considered Hedge Banks with
respect to each Swap Contract with the Borrower existing on the Closing Date.

     “Holdings” has the meaning specified in the introductory paragraph hereto.

 - 11 - 

 

     “Impacted Lender” means any Lender (a) which is a Defaulting Lender, (b) which has, or
as to which Administrative Agent has a good faith belief that such Lender has, defaulted in
fulfilling any one or more of its obligations under any one or more syndicated credit facilities
(other than the facilities provided pursuant to this Agreement) or as to which the Administrative
Agent has a good faith belief that such Lender is at a material risk of not fulfilling its
obligations under this Agreement, or (c) that is Controlled by a Person which (i) has been deemed
insolvent or become subject to a bankruptcy or insolvency proceeding or a government seizure or
(ii) would qualify as an Impacted Lender under clause (b) of this definition.

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business in accordance
with customary trade terms and, in each case, not overdue for a period of more than 60
days);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) capital leases and Synthetic Lease Obligations;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other Person,
valued, in the case of a redeemable preferred interest, at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing;

provided, however, that the “Indebtedness” of Holdings and its Subsidiaries
shall not include (1) any payment, account, credit, award or other obligation pursuant to
the Phantom Stock Plan and (2) payables incurred in connection with the Borrower’s
distribution facilities in San Bernardino, California as described in the final offering
memoranda for the New Fixed Rate Senior Notes.

 - 12 - 

 

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such date.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 11.04(b).

     “Information” has the meaning specified in Section 11.07.

     “Interest Payment Date” means, (a) as to any Base Rate Loan, the first Business Day of
each calendar month; (b) as to any Eurodollar Rate Loan, the first Business Day of each calendar
month, the last day of the relevant Interest Period and any date that such Loan is prepaid in whole
or in part; and (c) as to all Loans, the Maturity Date or any earlier date upon which the Aggregate
Commitments are terminated in accordance with the terms of this Agreement; provided,
further, that interest accruing at the Default Rate shall be payable from time to time at any time
upon demand of Administrative Agent.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan
and ending on the date one, two, three or six months thereafter, as selected by the Borrower in its
Loan Notice; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

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

     (iii) no Interest Period shall extend beyond the Maturity Date.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other
Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions)
of assets of another Person that constitute a business unit. For purposes of covenant compliance,
the amount of any Investment shall be the amount actually invested, without

-13-

 

adjustment for subsequent increases or decreases in the value of such Investment. For the
avoidance of doubt, the issuance by Borrower, its Subsidiaries or Development of a quit-claim deed,
bill of sale or other documentation confirming the prime-lessor’s ownership of a supermarket
building upon completion of construction thereof shall not be considered to be an “Investment.”

     “IRS” means the United States Internal Revenue Service.

     “ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of
Credit.

     “La Cadena” means La Cadena Investments, a California general partnership.

     “La Cadena Successor” means a partnership or limited liability company other than La
Cadena with respect to which (a) a Permitted Holder is a general partner or managing member, (b)
Permitted Holders have the power to vote the majority of the Equity Interests, (c) Permitted
Holders are the Beneficial Owners of at least 35% of the Equity Interests therein, and (d)
Permitted Holders are the Beneficial Owners of a higher percentage of the Equity Interests than any
other “person” or “group” of persons (as such terms are used in Section 13(d) of the Exchange Act).

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having the
force of law.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit
hereunder, or any successor issuer of Letters of Credit hereunder.

-14-

 

     “L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.06. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lender” has the meaning specified in the introductory paragraph hereto.

     “Lender Cash Management Agreement” means any Cash Management Agreement that is entered
into by and between the Borrower and any Cash Management Bank.

     “Lender Hedge Agreement” means any Swap Contract permitted under this Agreement that
is entered into by and between the Borrower and any Hedge Bank.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrower and the Administrative Agent.

     “Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit.

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

     “Letter of Credit Expiration Date” means the day that is one calendar year after the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” has the meaning specified in Section 2.01.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, the Fee
Letter, and the Guaranties.

-15-

 

     “Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Loans from one
Type to the other, or (c) a continuation of Eurodollar Rate Loans, pursuant to Section
2.02(a), which, if in writing, shall be substantially in the form of Exhibit C.

     “Loan Parties” means, collectively, the Borrower, Holdings and each other Guarantor.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent),
condition (financial or otherwise) or prospects of Holdings, the Borrower or the Loan Parties,
individually or taken as a whole; (b) a material impairment of the ability of any Loan Party to
perform its obligations under any Loan Document to which it is a party; or (c) a material adverse
effect upon the legality, validity, binding effect or enforceability against any Loan Party of any
Loan Document to which it is a party.

     “Material Subsidiary” means each Subsidiary of Holdings or Borrower which at any time
has assets having an aggregate fair market value, as reasonably determined by Holdings or Borrower,
which is in excess of $10,000,000.

     “Maturity Date” means April 1, 2013; provided, however, that if such
date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

     “Moseley Trusts” means, collectively, the Marital Trust created under the Moseley
Family Revocable Trust dated May 18, 2000 and the Survivor’s Trust created under the Moseley Family
Revocable Trust dated May 18, 2000.

     “Multiemployer Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to
make contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Negative Pledge” means a Contractual Obligation that restricts Liens on property.

     “New Fixed Rate Senior Notes” means the $285,000,000 aggregate principal amount of 7
3/4% fixed rate Senior Notes due 2015 issued pursuant to the New Indenture.

     “New Indenture” means the Indenture dated as of April 18, 2007, among Holdings, the
guarantors party thereto and The Bank of New York Trust Company, N.A., as Trustee as amended from
time to time to the extent permitted under Section 8.05.

     “Note” means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit D.

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any
Loan, Letter of Credit, Lender Cash Management Agreement or Lender Hedge Agreement, in each case
whether direct or indirect (including those acquired by assumption), absolute or contingent, due or
to become due, now existing or hereafter arising and including interest and fees that accrue after
the commencement by or against any Loan Party or any Affiliate thereof of

-16-

 

any proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

     “Ordinary Course Dispositions” means:

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

(b) Dispositions of cash, cash equivalents, inventory and other property in the ordinary
course of business, other than stores and any inventory or other property Disposed of in
connection with the Disposition of any stores; and

(c) Dispositions of assets or property by any Subsidiary of Borrower to Borrower or a
Wholly-Owned Subsidiary of Borrower; provided that, if the Subsidiary Disposing of
such assets or property is a Guarantor, such Disposition of assets or property must be made
to the Borrower or to another Guarantor;

provided, however, that no such Disposition shall be for less than the fair
market value of the property being disposed of.

     “Ordinary Course Indebtedness” means:

(a) Indebtedness under the Loan Documents;

(b) intercompany Guarantees of Borrower or any of its Subsidiaries guarantying Indebtedness
otherwise permitted hereunder of Borrower or any Wholly-Owned Subsidiary of Borrower that is
a Guarantor; and

(c) Indebtedness arising from the honoring of a check, draft or similar instrument against
insufficient funds.

“Ordinary Course Investments” means:

(a) Investments consisting of cash and cash equivalents;

(b) Investments of Borrower in any of its Subsidiaries and Investments of any Subsidiary of
Borrower in Borrower or another Subsidiary of Borrower;

(c) Investments consisting of or evidencing the extension of credit to customers or
suppliers of Borrower and its Subsidiaries in the ordinary course of business and any
Investments received in satisfaction or partial satisfaction thereof; and

(d) Investments consisting of Guarantees permitted by Section 7.01.

     “Ordinary Course Liens” means:

(a) Liens pursuant to any Loan Document;

-17-

 

(b) Liens for taxes not yet due or which are being contested in good faith and by
appropriate proceedings, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

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

(d) pledges or deposits in connection with worker’s compensation, unemployment insurance and
other social security legislation;

(e) 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;

(f) Liens on deposits made in the ordinary course of business and Liens in favor of
collecting banks having a right of setoff, revocation, refund or chargeback with respect to
money or instruments of Borrower or any Subsidiary on deposit with or in possession of such
banks;

(g) easements, rights-of-way, restrictions 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 any Person;

(h) Liens arising from UCC financing statements filed solely with respect to leases
permitted by this Agreement; and

(i) any attachment, judgment or other similar Lien arising in connection with litigation or
other legal proceedings (and not otherwise a Default hereunder) in the ordinary course of
business that is currently being contested in good faith by appropriate proceedings,
provided that adequate reserves have been set aside with respect to such Liens, no material
property is subject to a material risk of loss or forfeiture in connection with such Liens
and the claims in respect of such Liens are fully covered by insurance (subject to ordinary
and customary deductibles).

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

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     “Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

     “Outstanding Amount” means (i) with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and prepayments or
repayments of Loans occurring on such date; and (ii) with respect to any L/C Obligations on any
date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit
Extension occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements by the Borrower of
Unreimbursed Amounts.

     “Participant” has the meaning specified in Section 11.06(d).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Pension Act” means the Pension Protection Act of 2006.

     “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum
required contributions (including any installment payment thereof) to Pension Plans and set forth
in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412
of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter,
Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

     “Permitted Holders” means (a) Jack H. Brown and his spouse and immediate family
members, (b) any trust, corporation, partnership or other entity, the beneficial interests of which
are owned exclusively by the Persons referred to in clause (a), and (c) any trustee, executor or
receiver appointed to manage or administer the assets of any Person referred to in clause (a)
following the death or incapacity of such Person and the heirs of any such Person referred to in
clause (a).

     “Permitted Tax Distributions” means, for or in respect of any Fiscal Year or other tax
period of the Borrower (each a “Tax Period”), a distribution by the Borrower to Holdings,
in an amount equal to the product of (x) the amount of taxable income or gain of Borrower for such
Tax Period multiplied by (y) the Tax Rate with respect to each such amount.

     “Permitted Workers Compensation Letters of Credit” means standby Letters of Credit
issued to secure workers’ compensation and other insurance coverages for Borrower and its
Subsidiaries not to exceed the minimum amount required by Holdings’, Borrower’s, or any of
Borrower’s Subsidiaries’ insurance carriers or applicable regulatory agencies.

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     “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

     “Phantom Stock Plan” means, collectively, the Stater Bros. Holdings Inc. Phantom Stock
Plan effective as of June 27, 2000 and any related documents or instruments executed or to be
executed in connection therewith (including, without limitation, any Phantom Stock Award Agreement
thereunder), in each case as amended, modified, renewed, or replaced from time with the exception
of any amendment, modification, renewal or replacement that would expand the definition of
“Eligible Employee” thereunder to include any shareholder of Holdings or any partner in La Cadena.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by any Loan Party or, with respect to any such plan that is subject to Section
412 of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.02.

     “Public Lender” has the meaning specified in Section 6.02.

     “Quarterly Payment Date” means the last Business Day of each March, June, September
and December.

     “Register” has the meaning specified in Section 11.06(c).

     “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees and advisors of such Person and of such
Person’s Affiliates.

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice, and (b) with respect to an L/C Credit Extension, a Letter of
Credit Application.

     “Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 9.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations being deemed “held” by such Lender for purposes of this definition); provided
that the Commitment of, and the portion of the Total Outstandings held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, secretary, treasurer, assistant treasurer or controller of a Loan Party. Any document
delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively
presumed

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to have been authorized by all necessary corporate, partnership and/or other action on the
part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party.

     “Restricted Payment” means:

(a) the declaration or payment of any dividend or distribution by Holdings or any of its
Subsidiaries, either in cash or property, on any shares of the capital stock of any class or
other Equity Interest of Holdings or any of its Subsidiaries (except dividends or other
distributions payable solely in shares of capital stock of Holdings or any of its
Subsidiaries and dividends or other distributions payable (including dividends payable in
cash) by a Subsidiary to Borrower or another Wholly-Owned Subsidiary of Holdings that is a
Guarantor);

(b) the purchase, redemption or retirement by Holdings or any of its Subsidiaries of any
shares of any class of the capital stock of Holdings or any of its Subsidiaries or any
warrants, rights or options to purchase or acquire any shares of any class of the capital
stock of Holdings or any of its Subsidiaries whether directly or indirectly;

(c) any other payment or distribution by Holdings or any of its Subsidiaries in respect of
any class of capital stock of Holdings or any of its Subsidiaries, either directly or
indirectly (except dividends or other distributions payable solely in shares of capital
stock of Holdings or any of its Subsidiaries and dividends or other distributions payable
(including dividends payable in cash) by a Subsidiary to Borrower or another Wholly-Owned
Subsidiary of Holdings that is a Guarantor);

(d) any Investment other than an Investment otherwise permitted under any Loan Document; and

(e) the prepayment, repayment, redemption, defeasance or other acquisition or retirement for
value prior to any scheduled maturity, scheduled repayment or scheduled sinking fund payment
of any of the Senior Notes;

provided however that any payment, account, credit, award or other obligations
pursuant to the Phantom Stock Plan shall not be considered to be a “Restricted Payment.”

     “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

     “Senior Note Documents” means, collectively, (a) the Senior Note Indentures, (b) the
Senior Notes and (c) each guarantee thereof executed by any Subsidiary of Holdings.

     “Senior Note Indentures” means, collectively, the Existing Indenture and the New
Indenture.

     “Senior Notes” means, collectively, the Existing Fixed Rate Senior Notes and the New
Fixed Rate Senior Notes.

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     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity (or deficit) of Holdings and its Subsidiaries as of that date determined in
accordance with GAAP.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Borrower.

     “Super Rx” means Super Rx, Inc., a California corporation.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

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

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

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     “Tax Rate” means, for or in respect of any Tax Period (as defined in the definition of
“Permitted Tax Distribution”) and any item of income, the combined United States federal and
California state income tax rate applicable during such Tax Period to such item of income if
included as taxable income by a corporation doing business in California.

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Type” means, with respect to a Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

     “Unfunded Pension Liability” means, with respect to any Pension Plan at any time, the
excess (if any) of (i) the present value of projected benefit obligations based upon the actuarial
assumptions used for accounting purposes (i.e., used in preparing the plan sponsor’s financial
statements in accordance with FASB Statement No. 87 and 158, and related amendments), over (ii) the
fair market value of all Pension Plan assets.

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “Voting Stock” of any Person as of any date means the capital stock or other Equity
Interests of such Person that is at the time entitled to vote in the election of the Board of
Directors or other similar management body of such Person.

     “Wholly-Owned Subsidiary” of any specified Person means any Subsidiary of such Person
all the outstanding shares of capital stock and other Equity Interests (other than directors’
qualifying shares, if applicable) of which are owned directly by such Person or another
Wholly-Owned Subsidiary of such Person, provided that Borrower shall be considered a
Wholly-Owned Subsidiary of Holdings so long as Holdings owns all of the outstanding shares of
Voting Stock of Borrower.

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan Document,
unless otherwise specified herein or in such other Loan Document:

     (a) 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, (i) any definition of or reference to
any agreement, instrument or other document (including any Organization Document) 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

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modifications
set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used in any Loan
Document, shall be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending, replacing or
interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to
time, and (vi) 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.

     (b) In the computation of periods of time from a specified date to a later specified date,
the word “from” means “from and including;” the words “to” and
“until” each mean “to but excluding;” and the word “through” means
“to and including.”

     (c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

     1.03 Accounting Terms. (a) Generally. All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to this Agreement shall
be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time,
applied in a manner consistent with that used in preparing the Audited Financial Statements,
except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower
shall negotiate in good faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall continue to
be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall
provide to the Administrative Agent and the Lenders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to such
change in GAAP.

     1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall
be calculated by dividing the appropriate component by the other component, carrying the result to
one place more than the number of places by which such ratio is expressed herein and rounding the
result up or down to the nearest number (with a rounding-up if there is no nearest number).

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

     1.06 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit
at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any Issuer Document related thereto, provides for one or more automatic
increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be
the maximum stated amount of such Letter of Credit after giving effect to all such increases,
whether or not such maximum stated amount is in effect at such time.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Loans.

     (a) Subject to the terms and conditions set forth herein, each Lender severally agrees to
make loans (each such loan, a “Loan”) to the Borrower from time to time, on any Business
Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding
the amount of such Lender’s Commitment; provided, however, that after giving
effect to any Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Commitments,
and (ii) the aggregate Outstanding Amount of the Loans of any Lender, plus such Lender’s
Applicable Percentage of the Outstanding Amount of all L/C Obligations shall not exceed such
Lender’s Commitment. Within the limits of each Lender’s Commitment, and subject to the other
terms and conditions hereof, the Borrower may borrow under this Section 2.01, prepay
under Section 2.04, and reborrow under this Section 2.01. Loans may be Base Rate
Loans or Eurodollar Rate Loans, as further provided herein.

     (b) Anything contained in this Agreement to the contrary notwithstanding, the Loans and the
Aggregate Commitments shall be subject to the following limitations:

     (i) for ten consecutive days during each calendar year, there shall be no Loans
outstanding (although Letters of Credit may continue to be outstanding during such period);
and

     (ii) the Total Outstandings shall not, on any date of determination, exceed an amount
equal to 50% of the aggregate book value of the inventory of Borrower and its Subsidiaries
on such day. Borrower’s compliance with the foregoing limitation shall be measured on the
last day of each Fiscal Quarter (or on such more frequent intervals as may be requested by
the Administrative Agent or the Required Lenders) on a consolidated basis, using the
first-in, first out method, in accordance with GAAP.

     2.02 Borrowings, Conversions and Continuations of Loans.

     (a) Each Borrowing, each conversion of Loans from one Type to the other, and each
continuation of Eurodollar Rate Loans shall be made upon the Borrower’s irrevocable notice to the
Administrative Agent, which may be given by telephone. Each such notice must be received by the
Administrative Agent not later than (i) 10:00 a.m. three Business Days

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prior to the requested
date of any Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any
conversion of Eurodollar Rate Loans to Base Rate Loans, and (ii) 8:30 a.m. on the requested date
of any Borrowing of Base Rate Loans. Each telephonic notice by the Borrower pursuant to this
Section 2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a
written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower.
Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a
principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof. Except as
provided in Section 2.03(c), each Borrowing of or conversion to Base Rate Loans shall be
in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Loan
Notice (whether telephonic or written) shall specify (i) whether the Borrower is requesting a
Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate
Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be
(which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or
continued, (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted,
and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower
fails to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be made as, or converted
to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of
the last day of the Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurodollar
Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to
have specified an Interest Period of one month.

     (b) Following receipt of a Loan Notice, the Administrative Agent shall promptly notify each
Lender of the amount of its Applicable Percentage of the applicable Loans, and if no timely
notice of a conversion or continuation is provided by the Borrower, the Administrative Agent
shall notify each Lender of the details of any automatic conversion to Base Rate Loans described
in the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of
its Loan available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 11:00 a.m. on the Business Day specified in the
applicable Loan Notice. Upon satisfaction of the applicable
conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit
Extension, Section 4.01), the Administrative Agent shall make all funds so received
available to the Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of the Borrower on the books of Bank of America with the amount of such
funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided
to (and reasonably acceptable to) the Administrative Agent by the Borrower; provided,
however, that if, on the date the Loan Notice with respect to such Borrowing is given by
the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing,
first, shall be applied to the payment in full of any such L/C Borrowings, and
second, shall be made available to the Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate Loan. During the
existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar
Rate Loans without the consent of the Required Lenders.

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     (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of
such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such change.

     (e) After giving effect to all Borrowings, all conversions of Loans from one Type to the
other, and all continuations of Loans as the same Type, there shall not be more than ten Interest
Periods in effect with respect to Loans.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in
reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from
time to time on any Business Day during the period from the Closing Date until the Maturity
Date, to issue Letters of Credit for the account of the Borrower or its Subsidiaries, and to
amend or extend Letters of Credit previously issued by it, in accordance with subsection (b)
below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally
agree to participate in Letters of Credit issued for the account of the Borrower or its
Subsidiaries and any drawings thereunder; provided that:

(x) after giving effect to any L/C Credit Extension with respect to any
Letter of Credit, (i) the Total Outstandings shall not exceed the Aggregate
Commitments; and (ii) the aggregate Outstanding Amount of the Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations shall not exceed such Lender’s
Commitment; and (iii) the Outstanding Amount of the L/C Obligations under
all Letters of Credit other than Permitted Workers Compensation Letters of
Credit shall not exceed $25,000,000;

(y) standby Letters of Credit shall be requested and issued only for
the purpose of (i) securing workers’ compensation and other insurance
coverages for Borrower and its Subsidiaries in an amount not at any time to
exceed the minimum amount required by Holdings’, Borrower’s, or any of
Borrower’s Subsidiaries’ insurance carriers or applicable regulatory
agencies and (ii) supporting obligations of Borrower and its Subsidiaries
incurred in the construction of distribution centers, stores and related
shopping centers; and

(z) commercial Letters of Credit shall be requested and issued only for the
purpose of supporting the purchase of inventory by Borrower and its
Subsidiaries.

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Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be
deemed to be a representation by the Borrower that the L/C Credit Extension so requested
complies with the conditions set forth in the proviso to the preceding sentence. Within the
foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to
obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during
the foregoing period, obtain Letters of Credit to replace Letters of Credit that have
expired or that have been drawn upon and reimbursed. All Existing Letters of Credit shall
be deemed to have been issued pursuant hereto, and from and after the Closing Date shall be
subject to and governed by the terms and conditions hereof. All unpaid reimbursement
obligations owed in respect of amounts drawn on Existing Letters of Credit shall be
reimbursement obligations hereunder.

     (ii) The L/C Issuer shall not issue any Letter of Credit, if:

     (A) subject to Section 2.03(b)(iii), the expiry date of such requested
standby Letter of Credit would occur more than twelve months after the date of
issuance or last extension, unless the Required Lenders have approved such expiry
date; or

     (B) the expiry date of such requested commercial Letter of Credit would occur
more than 180 days after the date of issuance, unless the Required Lenders have
approved such expiry date; or

     (C) the expiry date of such requested Letter of Credit would occur after the
Letter of Credit Expiration Date, unless all the Lenders have approved such expiry
date.

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit
if:

     (A) any order, judgment or decree of any Governmental Authority or arbitrator
shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such
Letter of Credit, or any Law applicable to the L/C Issuer or any request or
directive (whether or not having the force of law) from any Governmental Authority
with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer
refrain from, the issuance of letters of credit generally or such Letter of Credit
in particular or shall impose upon the L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which the L/C Issuer is
not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not
applicable on the Closing Date and which the L/C Issuer in good faith deems material
to it;

     (B) the issuance of such Letter of Credit would violate one or more policies of
the L/C Issuer applicable to letters of credit generally;

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer
and except for the Existing Letters of Credit, such Letter of Credit is in

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an
initial stated amount less than $100,000, in the case of a commercial Letter of
Credit, or $500,000, in the case of a standby Letter of Credit;

     (D) such Letter of Credit is to be denominated in a currency other than
Dollars; or

     (E) a default of any Lender’s obligations to fund under Section 2.03(c)
exists or any Lender is at such time an Impacted Lender hereunder, unless the L/C
Issuer has entered into arrangements satisfactory to the L/C Issuer with the
Borrower or such Impacted Lender to eliminate the L/C Issuer’s risk with respect to
such Lender.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be
permitted at such time to issue such Letter of Credit in its amended form under the terms
hereof.

     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A)
the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does
not accept the proposed amendment to such Letter of Credit.

     (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of
Credit issued by it and the documents associated therewith, and the L/C Issuer shall have
all of the benefits and immunities (A) provided to the Administrative Agent in Article
X with respect to any acts taken or omissions suffered by the L/C Issuer in connection
with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents
pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used
in Article X included the L/C Issuer with respect to such acts or omissions, and (B)
as additionally provided herein with respect to the L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters
of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the
request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative
Agent) in the form of a Letter of Credit Application, appropriately completed and signed by
a Responsible Officer of the Borrower. Such Letter of Credit Application must be received
by the L/C Issuer and the Administrative Agent not later than 10:00 a.m. at least five
Business Days (or such later date and time as the Administrative Agent and the L/C Issuer
may agree in a particular instance in their sole discretion) prior to the proposed issuance
date or date of amendment, as the case may be. In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested
Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry
date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing

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thereunder; (G) the
purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C
Issuer may require. In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail satisfactory to
the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment
thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D)
such other matters as the L/C Issuer may require. Additionally, the Borrower shall furnish
to the L/C Issuer and the Administrative Agent such other documents and information
pertaining to such requested Letter of Credit issuance or amendment, including any Issuer
Documents, as the L/C Issuer or the Administrative Agent may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit Application from the Borrower and, if
not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the
L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in Article
IV shall not then be satisfied, then, subject to the terms and conditions hereof, the
L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the
Borrower (or the applicable Subsidiary) or enter into the applicable amendment, as the case
may be, in each case in accordance with the L/C Issuer’s usual and customary business
practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C
Issuer a risk participation in such Letter of Credit in an amount equal to the product of
such Lender’s Applicable Percentage times the amount of such Letter of Credit.

     (iii) If the Borrower so requests in any applicable Letter of Credit Application, the
L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit
that has automatic extension provisions (each, an “Auto-Extension Letter of
Credit”); provided that any such Auto-Extension Letter of Credit must permit the
L/C Issuer to prevent any such extension at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior notice to
the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in
each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.
The L/C Issuer may, in its sole discretion, elect not to permit any Auto-Extension Letter
of Credit to be extended or renewed. Unless otherwise directed by the L/C Issuer, the
Borrower shall not be required to make a specific request to the L/C Issuer for any such
extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be
deemed to have authorized (but may not require) the L/C Issuer to permit the extension of
such Letter of Credit at any time to an expiry date not later than the Letter of Credit
Expiration Date; provided, however, that the L/C Issuer shall not permit any
such extension if (A) the L/C Issuer has determined that it would not be permitted, or would
have no obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of
Section 2.03(a) or otherwise), or (B) it has received notice (which may be by
telephone or in

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writing) on or before the day that is seven Business Days before the
Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders have
elected not to permit such extension or (2) from the Administrative Agent, any Lender or the
Borrower that one or more of the applicable conditions specified in Section 4.02 is
not then satisfied, and in each such case directing the L/C Issuer not to permit such
extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true and complete
copy of such Letter of Credit or amendment.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a
drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower and the
Administrative Agent thereof. Not later than 11:00 a.m. on the date of any payment by the
L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrower
shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the
amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time,
the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of
the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such
Lender’s Applicable Percentage thereof. In such event, the Borrower shall be deemed to have
requested a Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in
Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount
of the unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Loan Notice). Any notice given by the
L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be
given by telephone if immediately confirmed in writing; provided that the lack of
such an immediate confirmation shall not affect the conclusiveness or binding effect of such
notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer at the
Administrative Agent’s Office in an amount equal to its Applicable Percentage of the
Unreimbursed Amount not later than 11:00 a.m. on the Business Day specified in such notice
by the Administrative Agent, whereupon, subject to the provisions of Section
2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a
Base Rate Loan to the Borrower in such amount. The Administrative Agent shall remit the
funds so received to the L/C Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot
be satisfied or for any other reason, the Borrower shall be deemed to have incurred from the
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so
refinanced, which L/C Borrowing shall be due and payable on demand (together with interest)
and shall bear interest at the Default Rate. In such event, each Lender’s payment

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to the
Administrative Agent for the account of the L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C
Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

     (iv) Until each Lender funds its Loan or L/C Advance pursuant to this Section
2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit,
interest in respect of such Lender’s Applicable Percentage of such amount shall be solely
for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Loans or L/C Advances to reimburse the L/C Issuer
for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any circumstance, including
(A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have
against the L/C Issuer, the Borrower or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or condition,
whether or not similar to any of the foregoing; provided, however, that each
Lender’s obligation to make Loans pursuant to this Section 2.03(c) is subject to the
conditions set forth in Section 4.02 (other than delivery by the Borrower of a Loan
Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation
of the Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C
Issuer under any Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account
of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing
provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), the L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the greater of the
Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking
industry rules
on interbank compensation, plus any administrative, processing or similar fees
customarily charged by the L/C Issuer in connection with the foregoing. If such Lender pays
such amount (with interest and fees as aforesaid), the amount so paid shall constitute such
Lender’s Loan included in the relevant Borrowing or L/C Advance in respect of the relevant
L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this clause (vi)
shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and
has received from any Lender such Lender’s L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent receives for the
account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or
interest thereon (whether directly from the Borrower or otherwise, including proceeds of

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Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will
distribute to such Lender its Applicable Percentage thereof in the same funds as those
received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the L/C
Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the
circumstances described in Section 11.05 (including pursuant to any settlement
entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such demand to
the date such amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect. The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of this Agreement.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the L/C
Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be
absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms
of this Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that the
Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), the L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under
such Letter of Credit;

     (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

     (v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower or any Subsidiary.

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          The Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s
instructions or other irregularity, the Borrower will immediately notify the L/C Issuer. The
Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its
correspondents unless such notice is given as aforesaid.

          (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant
or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted
in connection herewith at the request or with the approval of the Lenders or the Required
Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or
willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Issuer Document. The Borrower hereby
assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its
use of any Letter of Credit; provided, however, that this assumption is not
intended to, and shall not, preclude the Borrower’s pursuing such rights and remedies as it may
have against the beneficiary or transferee at law or under any other agreement. None of the L/C
Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters
described in clauses (i) through (v) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding, the Borrower may
have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrower, to the
extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the Borrower which the Borrower proves were caused by the L/C Issuer’s willful
misconduct or gross negligence or the L/C Issuer’s willful failure to pay
under any Letter of Credit after the presentation to it by the beneficiary of a sight draft
and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the
validity or sufficiency of any instrument transferring or assigning or purporting to transfer or
assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or
in part, which may prove to be invalid or ineffective for any reason.

          (g) Cash Collateral. The Borrower shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations, (i) upon the request of the
Administrative Agent, if the L/C Issuer has honored any full or partial drawing request under any
Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) automatically and
without further act of the Administrative Agent or the L/C Issuer, if any L/C Obligation for any
reason remains outstanding as of the Maturity Date. Sections 2.04 and 9.02(c)
set forth certain additional requirements to deliver Cash Collateral hereunder. For purposes of
this Section 2.03, Section 2.04 and Section 9.02(c), “Cash
Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for
the benefit of the L/C Issuer and the

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Lenders, as collateral for the L/C Obligations, cash or
deposit account balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the L/C Issuer (which documents are hereby consented to by the Lenders).
Derivatives of such term have corresponding meanings. The Borrower hereby grants to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in
all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in blocked, non-interest bearing deposit accounts at Bank of
America.

          (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when a Letter of Credit is issued (including any such agreement
applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby
Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits,
as most recently published by the International Chamber of Commerce at the time of issuance shall
apply to each commercial Letter of Credit.

          (i) Standby Letter of Credit Fees. The Borrower shall pay to the Administrative
Agent, for the account of each Lender in accordance with its Applicable Percentage, a Letter of
Credit fee (the “Letter of Credit Fee”) for each standby Letter of Credit equal to the
Applicable Rate times the daily amount available to be drawn under such standby Letter of
Credit. For purposes of computing the daily amount available to be drawn under any standby
Letter of Credit, the amount of such standby Letter of Credit shall be determined in accordance
with Section 1.06. Letter of Credit Fees shall be (i) due and payable on each Quarterly
Payment Date, commencing with the first such date to occur after the issuance of such standby
Letter of Credit, on the Maturity Date, on the Letter of Credit Expiration Date (or on any
earlier date upon which the Aggregate Commitments are terminated in accordance with this
Agreement) and thereafter on demand and (ii) computed on a quarterly basis in arrears. If there
is any change in the Applicable Rate during any quarter, the daily amount available to be drawn
under each standby Letter of Credit shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate
was in effect. Notwithstanding anything to the contrary contained herein, upon the request
of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall
accrue at the Default Rate.

          (j) Fronting Fee, Issuance Fee and Documentary and Processing Charges Payable to L/C
Issuer. Concurrently with the issuance, extension or renewal of each Letter of Credit, the
Borrower shall pay directly to the L/C Issuer for its own account a fronting fee in an amount set
forth in the Fee Letter and, in the case of each commercial Letter of Credit, a fee based on the
L/C Issuer’s standard schedule of fees for the issuance of commercial letters of credit as then
in effect. In addition, the Borrower shall pay directly to the L/C Issuer for its own account
the customary issuance, presentation, amendment and other processing fees, and other standard
costs and charges, of the L/C Issuer relating to letters of credit as from time to time in
effect. Such fronting fees, issuance fees, customary fees and standard costs and charges are due
and payable on demand and are nonrefundable for any reason whatsoever.

          (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

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          (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any
and all drawings under such Letter of Credit. The Borrower hereby acknowledges that the issuance
of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower, and
that the Borrower’s business derives substantial benefits from the businesses of such
Subsidiaries.

          2.04 Prepayments.

          (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to
time voluntarily prepay Loans in whole or in part without premium or penalty; provided
that (i) such notice must be received by the Administrative Agent not later than (A) 10:00 a.m.
three Business Days prior to any date of prepayment of Eurodollar Rate Loans and (B) 8:30 a.m. on
the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be
in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof; and
(iii) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount
thereof then outstanding. Each such notice shall specify the date and amount of such prepayment
and the Type(s) of Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the
Interest Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of
its receipt of each such notice, and of the amount of such Lender’s Applicable Percentage of such
prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and
the payment amount specified in such notice shall be due and payable on the date specified
therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest
on the amount prepaid, together with any additional amounts required pursuant to Section
3.05.
Each such prepayment shall be applied to the Loans of the Lenders in accordance with their
respective Applicable Percentages.

          (b) If for any reason the Outstanding Amount of Loans or the Total Outstandings exceed (i)
the limitations set forth in Section 2.01(b), (ii) the Aggregate Commitments or (iii) any
other limitation set forth in any other provision of this Agreement, Borrower shall immediately
prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such
excess.

          2.05 Termination or Reduction of Commitments. The Borrower may, upon notice to the Administrative
Agent, terminate the Aggregate Commitments, or from time to time permanently reduce the Aggregate
Commitments; provided that (i) any such notice shall be received by the Administrative
Agent not later than 10:00 a.m. two Business Days prior to the date of termination or reduction,
(ii) any such partial reduction shall be in an aggregate amount of $1,000,000 or any whole multiple
of $500,000 in excess thereof, and (iii) the Borrower shall not terminate or reduce the Aggregate
Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total
Outstandings would exceed the Aggregate Commitments. The Administrative Agent will promptly notify
the Lenders of any such notice of termination or reduction of the Aggregate Commitments. Any
reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according
to its Applicable

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Percentage. All commitments fees (as described in Section 2.08(a)) accrued until
the effective date of any termination of the Aggregate Commitments shall be paid on the effective
date of such termination.

          2.06 Repayment of Loans. The Borrower shall repay to the Lenders on or before the Maturity Date
the aggregate principal amount of Loans outstanding on such date.

          2.07 Interest.

          (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and
(ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the
applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable
Rate.

          (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

          (ii) If any amount (other than principal of any Loan) payable by the Borrower under any
Loan Document is not paid when due (without regard to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon the
request of the Required Lenders, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest extent
permitted by applicable Laws.

          (iii) Upon the request of the Required Lenders, while any Event of Default exists, the
Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder
at a fluctuating interest rate per annum at all times equal to the Default Rate to the
fullest extent permitted by applicable Laws.

          (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

          (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall
be due and payable in accordance with the terms hereof before and after judgment, and before and
after the commencement of any proceeding under any Debtor Relief Law.

          2.08 Fees. In addition to certain fees described in subsections (i) and (j) of
Section 2.03:

          (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to
the Applicable Rate times the actual daily amount by which the Aggregate Commitments

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exceed the sum of (i) the Outstanding Amount of Loans and (ii) the Outstanding Amount of L/C
Obligations with respect to standby Letters of Credit. The commitment fee shall accrue at all
times during the Availability Period, including at any time during which one or more of the
conditions in Article IV is not met, and shall be due and payable quarterly in arrears on
each Quarterly Payment Date, commencing with the first such date to occur after the Closing Date,
and on the last day of the Availability Period. The commitment fee shall be calculated quarterly
in arrears, and if there is any change in the Applicable Rate during any quarter, the actual
daily amount shall be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

          (b) Other Fees. The Borrower shall pay to the Arranger and the Administrative Agent
for their own respective accounts fees in the amounts and at the times specified in the Fee
Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

          2.09 Computation of Interest and Fees. All computations of interest for Base Rate Loans when the
Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis of a year of
365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and
interest shall be made on the basis of a 360-day year and actual days elapsed (which results in
more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year).
Interest shall accrue on
each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided that any Loan that
is repaid on the same day on which it is made shall, subject to Section 2.11(a), bear
interest for one day. Each determination by the Administrative Agent of an interest rate or fee
hereunder shall be conclusive and binding for all purposes, absent manifest error.

          2.10 Evidence of Debt.

          (a) The Credit Extensions made by each Lender shall be evidenced by one or more accounts or
records maintained by such Lender and by the Administrative Agent in the ordinary course of
business. The accounts or records maintained by the Administrative Agent and each Lender shall
be conclusive absent manifest error of the actual amount of the Credit Extensions made by the
Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower
hereunder to pay any amount owing with respect to the Obligations. In the event of any conflict
between the accounts and records maintained by any Lender and the accounts and records of the
Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. Upon the request of any Lender made
through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through
the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such
accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date,
Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

          (b) In addition to the accounts and records referred to in subsection (a), each Lender and
the Administrative Agent shall maintain in accordance with its usual practice

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accounts or records
evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the
event of any conflict between the accounts and records maintained by the Administrative Agent and
the accounts and records of any Lender in respect of such matters, the accounts and records of
the Administrative Agent shall control in the absence of manifest error.

          2.11 Payments Generally; Administrative Agent’s Clawback.

          (a) General. All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise
expressly provided herein, all payments by the Borrower hereunder shall be made to the
Administrative Agent, for the account of the respective Lenders to which such payment is owed, at
the Administrative Agent’s Office in Dollars and in immediately available funds not later than
11:00 a.m. on the date specified herein. The Administrative Agent will promptly distribute to
each Lender its Applicable Percentage (or other applicable share as provided herein) of such
payment in like funds as received by wire transfer to such Lender’s Lending Office. All payments
received by the Administrative Agent after 11:00 a.m. shall be
deemed received on the next succeeding Business Day and any applicable interest or fee shall
continue to accrue. If any payment to be made by the Borrower shall come due on a day other than
a Business Day, payment shall be made on the next following Business Day, and such extension of
time shall be reflected in computing interest or fees, as the case may be.

          (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing of Eurodollar Rate Loans (or, in the case of any Borrowing of Base Rate Loans, prior to
10:00 a.m. on the date of such Borrowing) that such Lender will not make available to the
Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with Section
2.02 (or, in the case of a Borrowing of Base Rate Loans, that such Lender has made such share
available in accordance with and at the time required by Section 2.02) 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 Borrowing 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 in immediately available funds
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 (A) in the case
of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation, plus any administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be
made by the Borrower, the interest rate applicable to 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 Borrowing to the
Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in
such Borrowing. Any payment by the Borrower shall be without prejudice to any

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claim the Borrower
may have against a Lender that shall have failed to make such payment to the Administrative
Agent.

          (ii) 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 L/C
Issuer 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 L/C Issuer, 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 L/C Issuer, 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
L/C Issuer, in immediately available funds 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 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 this subsection (b) shall be conclusive, absent manifest error.

          (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 Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, 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 Loans, to fund participations in Letters of Credit and to make payments pursuant to
Section 11.04(c) are several and not joint. The failure of any Lender to make any Loan,
to fund any such participation or to make any payment under Section 11.04(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 11.04(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.

          2.12 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the
Loans made by it, or the participations in L/C Obligations held by it resulting in such Lender’s
receiving payment of a proportion of the aggregate amount of such Loans or 

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participations and
accrued interest thereon greater than its pro rata share thereof as provided
herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent
of such fact, and (b) purchase (for cash at face value) participations in the Loans and
subparticipations in L/C Obligations of the other Lenders, or make such other adjustments as shall
be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective Loans
and other amounts owing them, provided that:

          (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

          (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or subparticipations in L/C
Obligations to any assignee or participant, other than to Holdings or any of its
Subsidiaries (as to which the provisions of this Section shall apply).

          The Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

          3.01 Taxes.

          (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.
(i) Any and all payments by or on account of any obligation of the Borrower hereunder or under
any other Loan Document shall to the extent permitted by applicable Laws be made free and clear
of and without reduction or withholding for any Taxes. If, however, applicable Laws require the
Borrower or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld or
deducted in accordance with such Laws as determined by the Borrower or the Administrative Agent,
as the case may be, upon the basis of the information and documentation to be delivered pursuant
to subsection (e) below.

          (ii) If the Borrower or the Administrative Agent shall be required by the Code to
withhold or deduct any Taxes, including both United States Federal backup withholding and
withholding taxes, from any payment, then (A) the Administrative Agent shall withhold or
make such deductions as are determined by the Administrative Agent to be required based upon
the information and documentation it has received pursuant to subsection (e) below, (B) the
Administrative Agent shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with

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the Code, and (C) to the extent that the
withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by the Borrower shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer,
as the case may be, receives an amount equal to the sum it would have received had no such
withholding or deduction been made.

          (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable Laws.

          (c) Tax Indemnifications. (i) Without limiting the provisions of subsection (a) or
(b) above, the Borrower shall, and does hereby, indemnify the Administrative Agent, each
Lender and the L/C Issuer, and shall make payment in respect thereof within 10 days after
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes either withheld or
deducted by the Borrower for the account of a Lender or the L/C Issuer or paid on behalf of
Borrower by the Administrative Agent, a Lender or the L/C Issuer, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority.

          (ii) Without limiting the provisions of subsection (a) or (b) above, each Lender and the
L/C Issuer shall, and does hereby, indemnify the Borrower and the Administrative Agent, and
shall make payment in respect thereof within 10 days after demand therefor, against any and
all Taxes and any and all related losses, claims, liabilities, penalties, interest and
expenses (including the fees, charges and disbursements of any counsel for the Borrower or
the Administrative Agent) incurred by or asserted against the Borrower or the Administrative
Agent by any Governmental Authority as a result of the failure by such Lender or the L/C
Issuer, as the case may be, to deliver, or as a result of the inaccuracy, inadequacy or
deficiency of, any documentation required to be delivered by such Lender or the L/C Issuer,
as the case may be, to the Borrower or the Administrative Agent pursuant to subsection (e).
Each Lender and the L/C Issuer hereby authorizes the Administrative Agent to set off and
apply any and all amounts at any time owing to such Lender or the L/C Issuer, as the case
may be, under this Agreement or any other Loan Document against any amount due to the
Administrative Agent under this clause (ii). The agreements in this clause (ii) shall
survive the resignation and/or replacement of the Administrative Agent, any assignment of
rights by, or the replacement of, a Lender or the L/C Issuer, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all other Obligations.

          (d) Evidence of Payments. Upon request by the Borrower or the Administrative Agent,
as the case may be, after any payment of Taxes by the Borrower or by the Administrative Agent to
a Governmental Authority as provided in this Section 3.01, the Borrower shall deliver to
the Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the case
may be, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of any return required by Laws to

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report such payment or other
evidence of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as
the case may be.

          (e) Status of Lenders; Tax Documentation. (i) Each Lender shall deliver to the
Borrower and to the Administrative Agent, at the time or times prescribed by applicable Laws or
when reasonably requested by the Borrower or the Administrative Agent, such properly completed
and executed documentation prescribed by applicable Laws or by the taxing authorities of any
jurisdiction and such other reasonably requested information as will permit the Borrower or the
Administrative Agent, as the case may be, to determine (A) whether or not payments made hereunder
or under any other Loan Document are subject to Taxes, (B) if applicable, the required rate of
withholding or deduction, and (C) such Lender’s entitlement to any available exemption from, or
reduction of, applicable Taxes in respect of all payments to be made to such Lender by the
Borrower pursuant to this Agreement or otherwise to establish such Lender’s status for
withholding tax purposes in the applicable jurisdiction.

          (ii) Without limiting the generality of the foregoing, if the Borrower is resident for
tax purposes in the United States,

          (A) any Lender that is a “United States person” within the meaning of Section
7701(a)(30) of the Code shall deliver to the Borrower and the Administrative Agent
executed originals of Internal Revenue Service Form W-9 or such other documentation
or information prescribed by applicable Laws or reasonably requested by the Borrower
or the Administrative Agent as will enable the Borrower or the Administrative Agent,
as the case may be, to determine whether or not such Lender is subject to backup
withholding or information reporting requirements; and

          (B) each Foreign Lender that is entitled under the Code or any applicable
treaty to an exemption from or reduction of withholding tax with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter upon the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

          (I) executed originals of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States
is a party,

          (II) executed originals of Internal Revenue Service Form W-8ECI,

          (III) executed originals of Internal Revenue Service Form W-8IMY and
all required supporting documentation,

          (IV) in the case of a Foreign Lender claiming the benefits of the
exemption for portfolio interest under section 881(c) of the Code, (x) a

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certificate to the effect that such Foreign Lender is not (A) a “bank”
within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent
shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in section
881(c)(3)(C) of the Code and (y) executed originals of Internal Revenue
Service Form W-8BEN, or

          (V) executed originals of any other form prescribed by applicable Laws
as a basis for claiming exemption from or a reduction in United States
Federal withholding tax together with such supplementary documentation as
may be prescribed by applicable Laws to permit the Borrower or the
Administrative Agent to determine the withholding or deduction required to
be made.

          (iii) Each Lender shall promptly (A) notify the Borrower and the Administrative Agent of
any change in circumstances which would modify or render invalid any claimed exemption or
reduction, and (B) take such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws of any
jurisdiction that the Borrower or the Administrative Agent make any withholding or deduction
for taxes from amounts payable to such Lender.

          (f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any
refund of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C
Issuer, as the case may be. If the Administrative Agent, any Lender or the L/C Issuer receives a
refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with
respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay
to the Borrower an amount equal to such refund (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses incurred by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such
refund), provided that the Borrower, upon the request of the Administrative Agent, such
Lender or the L/C Issuer, agrees to repay the amount paid over to the Borrower (plus any
penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the L/C Issuer in the event the Administrative Agent, such
Lender or the L/C Issuer is required to repay such refund to such Governmental Authority. This
subsection shall not be construed to require the Administrative Agent, any Lender or the L/C
Issuer to make available its tax returns (or any other information relating to its taxes that it
deems confidential) to the Borrower or any other Person.

          3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable

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Lending
Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates
based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on
the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base
Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of
such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such
Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar
Rate Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest
on the amount so prepaid or converted.

          3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar market
for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly
reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so
notify the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of
the Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke
any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or,
failing that, will be deemed to have converted such request into a request for a Borrowing of Base
Rate Loans in the amount specified therein.

          3.04 Increased Costs.

          (a) Increased Costs Generally. If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
reflected in the Eurodollar Rate) or the L/C Issuer;

          (ii) subject any Lender or the L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any Eurodollar Rate Loan made by it, or change the basis of taxation of payments to such
Lender or the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 3.01 and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the L/C Issuer); or

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          (iii) impose on any Lender or the L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining
any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer
hereunder (whether of principal, interest or any other amount) then, upon request of such
Lender or the L/C Issuer, the Borrower will pay to such Lender or the L/C Issuer, as the case may
be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case
may be, for such additional costs incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or the L/C Issuer determines that any
Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or
such Lender’s or the L/C Issuer’s holding company, if any, regarding capital requirements has or
would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital
or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by, or participations in
Letters of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a
level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding
company could have achieved but for such Change in Law (taking into consideration such Lender’s
or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding
company with respect to capital adequacy), then from time to time the Borrower will pay to such
Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will
compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for
any such reduction suffered.

          (c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such
Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate
within 10 days after receipt thereof.

          (d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute
a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that the Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or the L/C Issuer, as the case may be,
notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and
of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if
the Change in Law giving rise to such increased costs or reductions is retroactive, then the
nine-month period referred to above shall be extended to include the period of retroactive effect
thereof).

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          3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative Agent)
from time to time, the Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

          (a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

          (b) any failure by the Borrower (for a reason other than the failure of such Lender to make
a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date
or in the amount notified by the Borrower; or

          (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to
Section 11.13;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the
Eurodollar Base Rate used in determining the Eurodollar Rate for such Loan by a matching deposit or
other borrowing in the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

          3.06 Mitigation Obligations; Replacement of Lenders.

          (a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 3.04, or the Borrower is required to pay any additional amount to any
Lender, the L/C Issuer, or any Governmental Authority for the account of any Lender or the L/C
Issuer pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section
3.02, then such Lender or the L/C Issuer shall, as applicable, use reasonable efforts to
designate a different Lending Office for funding or booking its Loans hereunder or to assign its
rights and obligations hereunder to another of its offices, branches or affiliates, if, in the
judgment of such Lender or the L/C Issuer, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in
the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable,
and (ii) in each case, would not subject such Lender or the L/C Issuer, as the case may be, to
any unreimbursed cost or expense.

          (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04, or if the Borrower is required to pay any additional amount to any Lender
or any Governmental Authority for the account of any Lender pursuant to Section 3.01, the
Borrower may replace such Lender in accordance with Section 11.13.

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          3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and
resignation of the Administrative Agent.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

          4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each Lender to
make its initial Credit Extension hereunder is subject to satisfaction of the following conditions
precedent:

          (a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly executed by
a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent and each of the Lenders:

          (i) counterparts of this Agreement executed by Borrower and Holdings, sufficient in
number for distribution to the Administrative Agent, each Lender and the Borrower;

          (ii) the Guaranties executed by each of the Guarantors;

          (iii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of each Loan Party as the Administrative Agent
may require evidencing the identity, authority and capacity of each Responsible Officer
thereof authorized to act as a Responsible Officer in connection with this Agreement and the
other Loan Documents to which such Loan Party is a party;

          (iv) such documents and certifications as the Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, validly existing, in
good standing and qualified to engage in business in each jurisdiction where its ownership,
lease or operation of properties or the conduct of its business requires such qualification;

          (v) a favorable opinion of Varner & Brandt LLP, counsel to the Loan Parties, addressed
to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties
and the Loan Documents as the Administrative Agent may reasonably request;

          (vi) a certificate of a Responsible Officer of each Loan Party either (A) attaching
copies of all consents, licenses and approvals required in connection with the execution,
delivery and performance by such Loan Party and the validity against such Loan Party of the
Loan Documents to which it is a party, and such consents, licenses and approvals shall be in
full force and effect, or (B) stating that no such consents, licenses or approvals are so
required;

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          (vii) a certificate signed by a Responsible Officer of the Borrower certifying (A) that
the conditions specified in Sections 4.02(a) and (b) have been satisfied and
(B) that there has been no event or circumstance since the date of the Audited Financial
Statements that has had or could be reasonably expected to have, either individually or
in the aggregate, a Material Adverse Effect; and

          (viii) such other assurances, certificates, documents, consents or opinions as the
Administrative Agent, the L/C Issuer or the Required Lenders reasonably may require.

          (b) Unless waived by the Administrative Agent, the Borrower shall have paid all fees,
charges and disbursements of counsel to the Administrative Agent (directly to such counsel if
requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date,
plus such additional amounts of such fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not thereafter preclude a
final settling of accounts between the Borrower and the Administrative Agent).

          Without limiting the generality of the provisions of the last paragraph of Section
10.03, for purposes of determining compliance with the conditions specified in this Section
4.01, 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 unless the Administrative
Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its
objection thereto.

          4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request for
Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type,
or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent:

          (a) The representations and warranties of the Borrower contained in Article V or any
other Loan Document, or which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct on and as of the date of such Credit
Extension, except to the extent that such representations and warranties specifically refer to an
earlier date, in which case they shall be true and correct as of such earlier date, and except
that for purposes of this Section 4.02, the representations and warranties contained in
Section 5.04(a) shall be deemed to refer to the most recent statements furnished pursuant
to Section 6.01.

          (b) No Default shall exist, or would result from such proposed Credit Extension or from the
application of the proceeds thereof.

          (c) The Administrative Agent and, if applicable, the L/C Issuer shall have received a
Request for Credit Extension in accordance with the requirements hereof.

          Each Request for Credit Extension (other than a Loan Notice requesting only a conversion of
Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrower shall
be deemed to be a representation and warranty that the conditions specified in

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Sections 4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

          As of the Closing Date, each of Holdings and the Borrower represents and warrants to the
Administrative Agent and the Lenders and, as of each subsequent date, Borrower represents and
warrants to the Administrative Agent and the Lenders that:

          5.01 Existence, Qualification and Power. Each Loan Party is duly organized or formed, validly
existing and in good standing under the Laws of the state of its incorporation or organization, has
the power and authority and the legal right to own and operate its properties, to lease the
properties it operates and to conduct its business, is duly qualified and in good standing under
the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct
of its business requires such qualification, and is in compliance with all Laws except to the
extent that noncompliance could not reasonably be expected to have a Material Adverse Effect.

          5.02 Power; Authorization; Enforceable Obligations. Each Loan Party has the power and authority
and the legal right to make, deliver and perform each Loan Document to which it is a party. The
Borrower has the power and authority to borrow hereunder and has taken all necessary action to
authorize the borrowings on the terms and conditions of this Agreement. Each Loan Party has taken
all necessary action to authorize the execution, delivery and performance of this Agreement and the
other Loan Documents to which it is a party. No consent or authorization of, filing with, or other
act by or in respect of any Governmental Authority, is required in connection with the borrowings
hereunder or with the execution, delivery, performance, validity or enforceability of this
Agreement or any of the other Loan Documents. The Loan Documents have been duly executed and
delivered by each applicable Loan Party and constitute a legal, valid and binding obligation of
each applicable Loan Party, enforceable against each applicable Loan Party in accordance with their
respective terms.

          5.03 No Legal Bar. The execution, delivery, and performance by each Loan Party of the Loan
Documents to which it is a party and compliance with the provisions thereof have been duly
authorized by all requisite action on the part of such Loan Party and do not and will not (a)
violate or conflict with, or result in a breach of, or require any consent under (i) any
Organization Documents of such Loan Party or any of its Subsidiaries, (ii) any applicable Laws,
rules, or regulations or any order, writ, injunction, or decree of any Governmental Authority or
arbitrator, or (iii) any Contractual Obligation of such Loan Party or any of its Subsidiaries or by
which any of them or any of their property is bound or subject (including without limitation the
Senior Note Documents), (b) constitute a default under any such agreement or instrument, or (c)
result in, or require, the creation or imposition of any Lien on any of the properties of such Loan
Party or any of its Subsidiaries.

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          5.04 Financial Statements; No Material Adverse Effect.

          (a) The Audited Financial Statements (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present the consolidated financial condition of Holdings and Borrower, respectively, as of
the date thereof, and their results of operations for the period covered thereby in accordance
with GAAP consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; and (iii) show all material indebtedness and other liabilities, direct
or contingent, of Holdings and its Subsidiaries and Borrower and its Subsidiaries, respectively,
as of the date thereof, including liabilities for taxes, material commitments and Indebtedness in
accordance with GAAP consistently applied throughout the period covered thereby.

          (b) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be
expected to have a Material Adverse Effect.

          5.05 Litigation. No litigation, investigation or proceeding of or before an arbitrator or
Governmental Authority is pending or, to the knowledge of Borrower after due and diligent
investigation, threatened by or against any Loan Party or any of its Subsidiaries or against any of
their properties or revenues that (a) purport to affect or pertain to this Agreement or any other
Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the
aggregate, if determined adversely, could reasonably be expected to have a Material Adverse Effect.

          5.06 No Default. Neither any Loan Party nor any Subsidiary thereof is in default under or with
respect to any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing or will result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document or the making of the Credit Extensions hereunder.

          5.07 Ownership of Property; Liens. Each Loan Party and its Subsidiaries have valid fee simple to,
or valid leasehold interests in, all real property which they use in their respective businesses,
and each Loan Party and its Subsidiaries have good and marketable title to all of the other
property necessary or used in the ordinary conduct of their business, and none of such property is
subject to any Lien, except as permitted in Section 7.02.

          5.08 Taxes. Each Loan Party and its Subsidiaries have filed all tax returns which are
required to be filed, and have paid, or made provision for the payment of, all taxes with respect
to the periods,
property or transactions covered by said returns, or pursuant to any assessment received by
such Loan Party or its respective Subsidiaries, except (a) such taxes, if any, as are being
contested in good faith by appropriate proceedings and as to which adequate reserves have been
established and maintained in accordance with GAAP, and (b) immaterial taxes; provided,
however, that in each case no material item or portion of property of any Loan Party or any of its
Subsidiaries is in jeopardy of being seized, levied upon or forfeited.

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          5.09 Margin Regulations; Investment Company Act.

          (a) No Loan Party is engaged or will engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock. No part of the proceeds of any Credit Extensions hereunder will be used for
“purchasing” or “carrying” “margin stock” as so defined or for any purpose which violates, or
which would be inconsistent with, the provisions of Regulations U or X of the FRB.

          (b) No Loan Party, any Person Controlling a Loan Party, or any Subsidiary of any Loan Party
is or is required to be registered as an “investment company” under the Investment Company Act of
1940.

          5.10 ERISA Compliance.

          (a) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other Federal or state Laws. Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from the IRS or an
application for such a letter is currently being processed by the IRS with respect thereto and,
to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the
loss of, such qualification. The Borrower and each ERISA Affiliate have made all required
contributions to each Plan in compliance with the Pension Funding Rules, and no application for a
funding waiver or an extension of any amortization period pursuant to the Pension Funding Rules
has been made with respect to any Plan.

          (b) There are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to any Plan that has
resulted or could reasonably be expected to result in a Material Adverse Effect.

          (c) (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) the aggregate
amount of Unfunded Pension Liability among all Pension Plans does not exceed $35,000,000; (iii)
neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (iv) neither the
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would
result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that
could be subject to Sections 4069 or 4212(c) of ERISA.

          5.11 Intangible Assets. Each Loan Party and its Subsidiaries own, or possess the right to use, all
trademarks, trade names, copyrights, patents, patent rights, franchises, licenses and other
intangible assets that are used in the conduct of their respective businesses as now operated, and
none of such items, to the best knowledge of Borrower, conflicts with the valid

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trademark, trade
name, copyright, patent, patent right or intangible asset of any other Person to the extent that
such conflict could reasonably be expected to have a Material Adverse Effect.

          5.12 Compliance with Laws. Each Loan Party and its Subsidiaries are in compliance with all Laws
and all orders, writs, injunctions and decrees applicable to them or their respective properties,
except in such instances in which the failure to comply therewith, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

          5.13 Environmental Compliance. Each Loan Party and its Subsidiaries conduct in the ordinary course
of business a review of the effect of existing Environmental Laws and claims alleging potential
liability or responsibility for violation of any Environmental Law on their respective businesses,
operations and properties, and as a result thereof the Borrower has reasonably concluded that such
Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

          5.14 Insurance. The properties of each Loan Party and its Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Borrower, in such
amounts, with such deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where such Loan Party or
such Subsidiary operates.

          5.15 Stockholders Agreements. As of the Closing Date, there are no stockholder agreements with
respect to stock of Holdings or Borrower to which Holdings, Borrower or any members of their senior
management are parties.

          5.16 Disclosure. No statement, information, report, representation, or warranty made by any Loan Party in any
Loan Document or furnished to Administrative Agent or any Lender in connection with any Loan
Document contains any untrue statement of a material fact or omits to state any material fact
necessary to make the statements herein or therein not misleading.

          5.17 Subsidiaries; Equity Interests. As of the Closing Date, the Loan Parties do not have any
Subsidiaries other than those specifically disclosed on Schedule 5.17, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and
nonassessable and are owned by a Loan Party in the amounts specified on Schedule 5.17 free
and clear of all Liens.

ARTICLE VI

AFFIRMATIVE COVENANTS OF BORROWER

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01
and 6.02) cause each Subsidiary to:

          6.01 Financial Statements. Deliver to the Administrative Agent in form and detail satisfactory to
the Administrative Agent and the Required Lenders, with sufficient copies for each Lender:

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     (a) as soon as available, but in any event within 120 days after the end of each Fiscal
Year:

          (i) a consolidated balance sheet of Holdings and its Subsidiaries as at the end of such
Fiscal Year, and the related consolidated statements of income and cash flows for such
Fiscal Year, all in reasonable detail, setting forth in comparative form, in the case of the
balance sheet and income statement, the results of operation from the preceding Fiscal Year;
and

          (ii) a consolidated balance sheet of Borrower and its Subsidiaries as at the end of
such Fiscal Year, and the related consolidated statements of income and cash flows for such
Fiscal Year, setting forth in comparative form, in the case of the balance sheet and income
statement, the results of operation from the preceding Fiscal Year.

Each of the financial statements delivered pursuant to this clause (a) shall be audited and
accompanied by a report and opinion of an independent certified public accountant of nationally
recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall
be prepared in accordance with GAAP and shall not be subject to any qualifications or exceptions as
to the scope of the audit nor to any qualifications and exceptions not reasonably acceptable to the
Required Lenders;

     (b) as soon as available, but in any event within 60 days after the end of each of the first
three Fiscal Quarters of each Fiscal Year, a consolidated balance sheet of Holdings and its
Subsidiaries as at the end of such Fiscal Quarter, and the related consolidated statements of
income and cash flows for such Fiscal Quarter and for the portion of the Fiscal Year then ended,
setting forth in each case in comparative form the figures for the corresponding Fiscal Quarter
of the previous Fiscal Year, the corresponding portion of the previous Fiscal Year and the
corresponding figures from the projections delivered to the Lenders on or prior to the Closing
Date or from the Financial Plan, as applicable, for the Fiscal Quarter and portion of the Fiscal
Year then ended covered by such financial statements, all in reasonable detail and certified by
the chief executive officer, chief financial officer, treasurer or controller of Holdings as
fairly presenting the financial condition, results of operations and cash flows of Holdings and
its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and
the absence of footnotes; and

     (c) as soon as practicable and in any event no later than 90 days after the end of each
Fiscal Year, a consolidated plan and financial forecast for such Fiscal Year and the next two
succeeding Fiscal Years (the “Financial Plan” for such Fiscal Years), including without
limitation (i) forecasted consolidated balance sheets and forecasted consolidated statements of
income and cash flows of Holdings and its Subsidiaries for each of the next three Fiscal Years,
and projected capital expenditures for such Fiscal Year, and (ii) such other information and
projections as any Lender may reasonably request.

As to any information contained in materials furnished pursuant to Section 6.02(c), the
Loan Parties shall not be separately required to furnish

such information under clause (a)(i) or
(b) above, but the foregoing shall not be in derogation of the obligation of the Borrower to
furnish
 

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the information and materials described in clauses (a)(i) and (b) above at the times
specified therein.

     6.02 Certificates; Notices and Other Information. Deliver to Administrative Agent in form and
detail satisfactory to Administrative Agent and the Required Lenders, with sufficient copies for
each Lender:

     (a) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by the
chief executive officer, chief financial officer, treasurer or controller of the Borrower and
Holdings and a reconciliation of intercompany transactions between Holdings and Borrower and
Borrower’s Subsidiaries;

     (b) promptly after any request by the Administrative Agent or any Lender, copies of any
detailed audit reports, management letters or recommendations submitted to the board of directors
(or the audit committee of the board of directors) of Holdings or Borrower by independent
accountants in connection with the accounts or books of Holdings or any of its Subsidiaries, or
any audit of any of them;

     (c) promptly after request by Administrative Agent or any Lender, copies of any annual,
regular, periodic and special reports and registration statements which Holdings may file or be
required to file with the SEC under Sections 13 or 15(d) of the Exchange Act;

     (d) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation
or possible investigation or other inquiry by such agency regarding financial or other
operational results of any Loan Party or any Subsidiary thereof;

     (e) promptly after the occurrence thereof, notice of any Default or Event of Default;

     (f) notice of any material change in accounting policies or financial reporting practices by
any Loan Party or any of its Subsidiaries;

     (g) promptly after the commencement thereof, notice of any litigation, investigation or
proceeding involving any Loan Party where the amount involved exceeds $7,500,000, or in which
injunctive relief or similar relief is sought, which relief, if granted, could reasonably be
expected to result in a Material Adverse Effect;

     (h) promptly after the occurrence thereof, notice of any ERISA Event;

     (i) promptly after the occurrence thereof, notice of any matter or circumstance that has
resulted or could reasonably be expected to result in a Material Adverse Effect;

     (j) promptly after the execution thereof, copies of all amendments, waivers and supplemental
indentures made with respect to the Senior Note Indentures or the Senior Notes;

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     (k) promptly after the receipt by Borrower or any of its Subsidiaries thereof, notice of
claim or notice to the effect that Borrower of any of its Subsidiaries is in default under any of
its leases of real property; and

     (l) promptly, such other data and information as from time to time may be reasonably
requested by Administrative Agent, or, through Administrative Agent or any Lender.

     Each notice pursuant to clauses (d) through (i) and (k) of this Section 6.02 shall be
accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the
occurrence referred to therein and stating what action the Borrower has taken and proposes to take
with respect thereto.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on
the Borrower’s website on the Internet at the website address listed on Schedule 11.02; or
(ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or
any Lender that requests the Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower
shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein,
in every instance the Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative Agent. Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery
or to maintain copies of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such
documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will
make available to the Lenders and the L/C Issuer materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to the Borrower or its Affiliates, or the
respective securities of any of the foregoing, and who may be engaged in investment and other
market-related activities with respect to such Persons’ securities. The Borrower hereby agrees
that (w) all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrower shall be deemed to have authorized the Administrative

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Agent, the Arranger,
the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for purposes of United States
Federal and state securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth in Section
11.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available
through a portion of the Platform designated “Public Side Information;” and (z) the Administrative
Agent and the Arranger shall be entitled to treat any Borrower Materials that are not marked
“PUBLIC” as being suitable only for posting on a portion of the Platform that is not designated
“Public Side Information.”

     6.03 Payment of Obligations. Pay and discharge when due all taxes, assessments, governmental
charges, Ordinary Course Liens or levies imposed on any Loan Party or its Subsidiaries or on its
income or profits or any of its property, except for any such tax, assessment, charge, or levy
which is an Ordinary Course Lien under subsection (a) or (b) of the definition of such term,
provided that the failure to pay any such taxes, assessments, governmental charges,
Ordinary Course Liens or levies shall not be deemed to violate this covenant if the amount involved
is less than $5,000,000.

     6.04 Preservation of Existence, Etc. Preserve and maintain its existence, good standing, licenses,
permits, rights, franchises and privileges necessary or desirable in the normal conduct of its
business, except where failure to do so could not reasonably be expected to have a Material Adverse
Effect.

     6.05 Maintenance of Properties. Maintain, preserve and protect all of its material properties and
equipment necessary in the operation of its business in good order and condition, subject to wear
and tear in the ordinary course of business, and not permit any waste of its properties.

     6.06 Maintenance of Insurance. Maintain liability and casualty insurance with financially sound
and reputable insurance companies which are not affiliated with the Borrower in such amounts and
against such risks as is customary for similarly situated businesses.

     6.07 Compliance with Laws.

     (a) Comply with the requirements of all applicable Laws and orders of any Governmental
Authority, noncompliance with which could reasonably be expected to have a Material Adverse
Effect.

     (b) Conduct its operations and keep and maintain its property in material compliance with
all Environmental Laws.

     6.08 Inspection Rights. At any time during regular business hours and as often as reasonably
requested, permit Administrative Agent or any Lender, or any employee, agent or representative
thereof, to examine, audit and make copies and abstracts from the Loan Parties’ records and books
of account and to visit and inspect their properties and to discuss their affairs, finances and
accounts with any of their officers and key employees, and, upon request, furnish promptly to
Administrative Agent or any Lender true copies of all financial information and internal management
reports made available to their senior management; provided, however, that

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when an
Event of Default exists the Administrative Agent or any Lender (or any of their respective
employees, agents or representatives) may do any of the foregoing at the expense of the Borrower.

     6.09 Books and Records. Keep adequate records and books of account reflecting all financial
transactions in conformity with GAAP, consistently applied, and in material conformity with all
applicable requirements of any Governmental Authority having regulatory jurisdiction over any Loan
Party or any of its Subsidiaries.

     6.10 Compliance with ERISA. Cause, and cause each of its ERISA Affiliates to: (a) maintain each
Plan in compliance in all material respects with the applicable provisions of ERISA, the Code and
other federal or state law; (b) cause each Plan which is qualified under Section 401(a) of the Code
to maintain such qualification; and (c) make all required contributions to any Plan in compliance
with the Pension Funding Rules.

     6.11 Compliance With Agreements. Promptly and fully comply with all Contractual Obligations under
all material agreements, indentures, leases and/or instruments to which any Loan Party or any one
or more of them is a party, except for any such Contractual Obligations (a) the performance of
which would cause a Default, or (b) if the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect.

     6.12 Use of Proceeds. Use the proceeds of Credit Extensions for lawful working capital and general
corporate purposes of Borrower and its Subsidiaries not otherwise in contravention of this
Agreement, including the making of Restricted Payments which are expressly permitted hereby.

     6.13 Further Assurances. Execute and file all such further instruments, and perform such other acts, as the
Administrative Agent or the Required Lenders may determine are reasonably necessary to effectuate
the intent of the Loan Documents.

     6.14 Execution of Guaranty by Future Material Subsidiaries.

     (a) In the event that any Person becomes a Material Subsidiary of Holdings or Borrower after
the date hereof, Borrower will promptly notify Administrative Agent of that fact and promptly
(and in any event within 30 days) cause such Subsidiary to execute and deliver to Administrative
Agent a Guaranty of the Obligations.

     (b) Borrower shall deliver or cause to be delivered to Administrative Agent, together with
such Guaranty, (i) certified copies of such Subsidiary’s Certificate or Articles of
Incorporation, Organization or Formation, together with a good standing certificate from the
Secretary of State of the jurisdiction of its incorporation, organization or formation and each
other state in which such Person is qualified as a foreign corporation to do business and, to the
extent generally available, a certificate or other evidence of good standing as to payment of any
applicable franchise or similar taxes from the appropriate taxing authority of each of such
jurisdictions, each to be dated a recent date prior to their delivery to Administrative Agent,
(ii) a copy of such Subsidiary’s bylaws, operating agreement, partnership agreement or other
similar Organization Document, certified by its secretary or an assistant secretary or other
Responsible Officer as of a recent date prior to their delivery to Administrative Agent, (iii) a

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certificate executed by the secretary or an assistant secretary or other Responsible Officer of
such Subsidiary certifying (a) that the resolutions attached to such certificate of such
Subsidiary approving and authorizing the execution, delivery and performance of the Guaranty are
in full force and effect and have not been modified or amended and (b) the incumbency and
signatures of the officers of such Subsidiary executing such Guaranty, and (iv) a favorable
opinion of counsel to such Subsidiary, in form and substance satisfactory to Administrative Agent
and its counsel, as to (a) the due organization and good standing of such Subsidiary, (b) the due
authorization, execution and delivery by such Subsidiary of such Guaranty, (c) the enforceability
of such Guaranty against such Subsidiary, (d) such other matters as Administrative Agent may
reasonably request, all of the foregoing to be satisfactory in form and substance to
Administrative Agent and its counsel.

ARTICLE VII

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly:

     7.01 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness hereunder and under the other Loan Documents;

     (b) Guarantees issued in respect of the Senior Notes by Borrower and by the Subsidiaries of
Borrower which have issued Guaranties in respect of the Obligations under this Agreement and the
other Loan Documents;

     (c) Obligations in respect of Ordinary Course Indebtedness;

     (d) Indebtedness outstanding on the date hereof and listed on Schedule 7.01; and any
refinancings, refundings, renewals or extensions thereof (in whole or in part), provided
that the amount of such Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to the premium or other amount paid, and fees and
expenses incurred, in connection with such refinancing and by an amount equal to any utilized
commitments thereunder;

     (e) Indebtedness owed by Borrower or any of its Subsidiaries under or in respect of
(i) capital leases or (ii) Indebtedness incurred for the acquisition, construction or refinance
of real property constructed or acquired within the 12-month period preceding the incurrence of
such Indebtedness, and (iii) any refinancings, refundings, renewals or extensions of any
Indebtedness permitted under this clause (e), provided that the amount of any such
Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to the premium or other amount paid, and fees and expenses incurred, in
connection with such refinancing and by an amount equal to any utilized commitments thereunder;
and provided, further, that the aggregate principal amount of all Indebtedness
permitted under this clause (e) (including, for this purpose, the aggregate principal amount of
all Indebtedness described in this clause (e) listed on Schedule 7.01 or otherwise
permitted under clause (d) above) shall not at any time exceed $50,000,000;

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     (f) Indebtedness owed under Swap Contracts entered into for the purpose of hedging against
fluctuations in interest rates payable in respect of the Obligations owed hereunder;

     (g) Indebtedness owed to Borrower or any Wholly-Owned Subsidiary of Borrower that is a
Guarantor; and

     (h) other unsecured Indebtedness not exceeding $5,000,000 in the aggregate at any time.

     7.02 Liens and Negative Pledges. Create, incur, assume or suffer to exist, any Lien or Negative
Pledge upon any of its property, assets or revenues, whether now owned or hereafter acquired,
except:

     (a) Liens and Negative Pledges in favor of the Administrative Agent or the Lenders under
this Agreement or the Loan Documents;

     (b) The Negative Pledge set forth in the Senior Note Indentures as of the Closing Date,
provided that the same shall not prohibit the granting of Liens to the Administrative
Agent and the Lenders to secure the Obligations;

     (c) Liens and Negative Pledges existing on the date hereof and listed on
Schedule 7.02 and any renewals or extensions thereof; provided that the
obligations secured or benefited thereby or the property covered thereby are not increased,
except as permitted by Section 7.01(d);

     (d) Ordinary Course Liens;

     (e) Liens securing the Indebtedness permitted under Section 7.01(e);
provided that (i) any Liens securing Indebtedness permitted under clause (i) of
Section 7.01(e) shall only extend to the property subject to the capital lease under
which such Indebtedness is owed, (ii) any Liens securing Indebtedness permitted under clause
(ii) of Section 7.01(e) shall only extend to the real property constructed, acquired or
refinanced during the 12-month period preceding the incurrence of such Indebtedness; and
(iii) any Liens securing Indebtedness permitted under clause (iii) of
Section 7.01(e) shall only extend to the property securing the Indebtedness being
refinanced, refunded, renewed or extended;

      (f) Negative Pledges set forth in the agreements or instruments governing the Indebtedness
permitted under Section 7.01(e); provided that (i) any such Negative Pledge with
respect to Indebtedness permitted under clause (i) of Section 7.01(e) shall only extend
to the property subject to the capital lease under which such Indebtedness is owed, (ii) any such
Negative Pledge with respect to Indebtedness permitted under clause (ii) of
Section 7.01(e) shall only extend to the real property constructed, acquired or
refinanced during the 12-month period preceding the incurrence of such Indebtedness; and
(iii) any such Negative Pledge with respect to Indebtedness permitted under clause (iii) of
Section 7.01(e) shall only extend to the property securing the Indebtedness being
refinanced, refunded, renewed or extended;

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     (g) Liens on property of a Person existing at the time such Person is merged with or into or
consolidated with Borrower or any Subsidiary of Borrower; provided that such Liens were
in existence prior to the contemplation of such merger or consolidation and do not extend to any
assets other than those of the Person merged into or consolidated with Borrower or the applicable
Subsidiary of Borrower;

     (h) Liens on property existing at the time of acquisition thereof by Borrower or any
Subsidiary of Borrower; provided that such Liens were in existence prior to the
contemplation of such acquisition and do not extend to any assets other than such acquired
property; and Liens incurred in the ordinary course of business to secure the payment of all or a
portion of the purchase price of goods held for sale; provided that such Liens do not
extend to any assets other than such goods;

     (i) Liens and Negative Pledges in favor of Borrower or any Subsidiary of Borrower; and

     (j) other Liens securing, and Negative Pledges relating to, Indebtedness in an aggregate
principal amount not to exceed $5,000,000 at any time.

     7.03 Fundamental Changes. Merge or consolidate with or into any Person or liquidate, wind-up or
dissolve itself, or permit or suffer to exist any liquidation or dissolution of any of its
Subsidiaries, except, that so long as no Default or Event of Default exists or would result
therefrom, any Subsidiary of Borrower may merge with (i) Borrower provided that Borrower shall be
the continuing or surviving corporation, (ii) with any one or more Subsidiaries of Borrower, and
(iii) with any joint ventures, partnerships and other Persons, so long as such joint ventures,
partnerships and other Persons will, as a result of making such merger and all other
contemporaneous related transactions, become a Subsidiary of Borrower; provided that when
any Wholly-Owned Subsidiary of Borrower is merging with another Subsidiary of Borrower or any other
Person (other than the Borrower or Holdings), the Wholly-Owned Subsidiary of Borrower shall be the
continuing or surviving Person; provided further that when any Subsidiary that is a
Guarantor is merging with another Subsidiary of Borrower or any other Person (other than the
Borrower or Holdings), the Guarantor shall be the continuing or surviving Person.

     7.04 Dispositions. Make any Dispositions, except:

     (a) Ordinary Course Dispositions;

     (b) Dispositions permitted by Section 7.03;

     (c) any Subsidiary of Borrower may sell all or substantially all of its assets (upon
voluntary liquidation or otherwise), to Borrower or any of its Subsidiaries; provided
that when any Wholly-Owned Subsidiary of Borrower is selling all or substantially all of its
assets to another Subsidiary of Borrower, the Subsidiary acquiring such assets shall be a
Wholly-Owned Subsidiary of Borrower; provided further that when any Subsidiary that is a
Guarantor is selling all or substantially all of its assets to another Subsidiary of Borrower,
the Subsidiary acquiring such assets shall be a Guarantor;

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     (d) Borrower and its Subsidiaries may make Dispositions in the ordinary course of business
(including, without limitation, Dispositions in the ordinary course of business of stores, the
inventory located therein and other property used in connection therewith) of assets having an
aggregate fair market value of not more than $25,000,000 in each four consecutive Fiscal Quarter
period; and

     (e) Dispositions of the proceeds from the sale of Santee Dairies, Inc., as required by the
Senior Note Indentures.

     7.05 Investments. Make any Investments, except:

     (a) Investments existing on the date hereof;

     (b) Ordinary Course Investments;

     (c) Investments consisting of advances to officers, directors and employees of Borrower and
its Subsidiaries for travel, entertainment, relocation and analogous ordinary business purposes
not exceeding $500,000 in the aggregate;

     (d) Investments permitted by Section 7.03; and

     (e) other Investments not exceeding $5,000,000 in the aggregate.

     7.06 Lease Obligations. Create or suffer to exist any obligations for the payment of rent for any
property under lease or agreement to lease, except:

     (a) leases in existence on the date hereof and any renewal, extension or refinancing thereof
to the extent such renewal, extension or refinancing is not prohibited by Section 7.01;

     (b) leases (other than capital leases) entered into or assumed by Borrower or any of its
Subsidiaries after the date hereof in the ordinary course of business; and

     (c) capital leases to the extent the Indebtedness thereunder is not prohibited by
Section 7.01.

     7.07 Restricted Payments. Make any Restricted Payments, except:

     (a) Borrower may make distributions to Holdings in an amount sufficient to make regularly
scheduled payments of interest on the Senior Notes as and when the same become due;

     (b) Borrower may make other distributions to Holdings in the amounts required to pay for
Holdings’ corporate overhead and similar expenses, not to exceed $2,000,000 in the aggregate in
any Fiscal Year;

     (c) Borrower may make Permitted Tax Distributions to Holdings; and

     (d) Borrower may make distributions to Holdings (other than those described in clauses (a)
through (c) above), provided that (i) after giving effect thereto no Default or Event of
Default has occurred and is continuing, (ii) after giving pro forma effect thereto and to any

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other distributions made since the last day of the then most recently ended Fiscal Quarter,
Borrower remains in pro forma compliance with Section 7.12; and (iii) such distributions
to Holdings, when aggregated with all other distributions made to Holdings (other than those
described in clauses (a) through (c) above) following June 30, 2004, do not in the aggregate
exceed the sum of (A) $25,000,000, plus (B) 50% of Consolidated Net Income for the period from
June 27, 2004 through the then most recently ended Fiscal Quarter.

     7.08 ERISA. At any time engage in a transaction which could be subject to Sections 4069 or
4212(c) of ERISA, or permit any Pension Plan to (a) engage in any non-exempt “prohibited
transaction” (as defined in Section 4975 of the Code); (b) fail to comply with ERISA or any other
applicable Laws; or (c) incur any material “accumulated funding deficiency” (as defined in Section
302 of ERISA), which, with respect to each event listed above, could reasonably be expected to have
a Material Adverse Effect.

     7.09 Change in Nature of Business. Make any material change in the nature of the business of any
Loan Party as conducted and as proposed to be conducted as of the date hereof.

     7.10 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of
the Borrower other than arm’s-length transactions with Affiliates that are otherwise permitted
hereunder; provided that the foregoing restriction shall not apply to transactions between
Borrower and any of its Wholly-Owned Subsidiaries that are Guarantors or between any Wholly-Owned
Subsidiaries of the Borrower that are Guarantors.

     7.11 Hostile Acquisitions. Use the proceeds of any Credit Extension in connection with the
acquisition of a voting interest of five percent or more in any Person if such acquisition is
opposed by the board of directors or management of such Person unless (a) Borrower has
given Administrative Agent (who shall promptly notify each Lender) five Business Days’ prior notice
thereof and (b) no Lender shall have, within that period, notified Administrative Agent (who shall
promptly notify Borrower) that it does not consent to the use of the proceeds of such Credit
Extension for that purpose.

     7.12 Financial Covenants.

     (a) Shareholders’ Equity. Permit Shareholders’ Equity, as of the last day of any
Fiscal Quarter (the “Test Date”), to be less than the sum of (i) Shareholders’ Equity as of the
Fiscal Quarter ended on or about June 28, 2009 minus $50,000,000 plus (ii) 50% of the cumulative
amount of Consolidated Net Income for each Fiscal Quarter which has then occurred since the
Fiscal Quarter ended on or about June 28, 2009, as of the Test Date (with no deduction for a net
loss in any such Fiscal Quarter) plus (iii) 100% of the net cash proceeds to Holdings and its
Subsidiaries from any issuance of their equity securities following the Closing Date.

     (b) Consolidated EBITDA. Permit Consolidated EBITDA for the period of four
consecutive Fiscal Quarters ending on the last day of any Fiscal Quarter to be less than
$140,000,000.

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     (c) Loan Limitations. Permit the Outstanding Amount of the Loans or the Total
Outstandings, as applicable, to exceed, as of any date described in Section 2.01(b) the
amounts set forth in Section 2.01(b).

     7.13 Change in Auditors. Change the certified public accountants auditing the books of Borrower
without the consent of Required Lenders, other than any change to another independent certified
public accountant of nationally recognized standing reasonably acceptable to the Required Lenders.

     7.14 Amendments or Waivers of Senior Note Documents. Agree to any material amendment to, or agree
to waive any of its material rights under, any Senior Note Document, without in each case obtaining
the prior written consent of Required Lenders to such amendment or waiver.

     7.15 Use of Capital Contributions. Use any cash contributions to Borrower’s capital made by
Holdings for any purpose other than general corporate purposes, including working capital and short
term financing of capital expenditures.

     7.16 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or indirectly,
and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the
meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such purpose.

ARTICLE VIII

HOLDINGS COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding:

     8.01 Indebtedness. Holdings shall not create, incur, assume or suffer to exist, or permit any of
its Subsidiaries to create, incur, assume or suffer to exist, any Indebtedness, except:

     (a) Indebtedness owed under the Senior Notes in an aggregate principal amount not to exceed
$810,000,000, and Guarantees issued in respect thereof by Borrower and by
other Subsidiaries of Holdings which have issued Guaranties in respect of the Obligations
under this Agreement and the other Loan Documents;

     (b) Indebtedness incurred by or owed to Borrower or any Subsidiary of Borrower (but only to
the extent that the Borrower or its Subsidiaries are permitted to incur such Indebtedness under
Article VII), and Indebtedness owed to Development or any Subsidiary of Development;

     (c) The Guaranty by Development and Holdings of the Obligations under the Loan Documents;

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     (d) Indebtedness of the Loan Parties associated with the development of stores in an amount
not to exceed $20,000,000 per store, or $60,000,000 in the aggregate at any one time outstanding;
and

     (e) Indebtedness of Borrower and its Subsidiaries which is permitted by Section
7.01.

     8.02 Restricted Payments. Holdings shall not make any Restricted Payments, except that:

     (a) Holdings (i) may distribute to La Cadena or any La Cadena Successor any distributions
made to Holdings pursuant to Sections 7.07(c) and 7.07(d), and (ii) may redeem
shares of Holdings held by the Moseley Trusts with any distributions made to Holdings pursuant to
Section 7.07(d);

     (b) Holdings may make Restricted Payments to purchase, prepay, redeem or otherwise acquire
for value the Senior Notes from the proceeds of any distributions made to Holdings pursuant to
Section 7.07(d); and

     (c) Holdings may repurchase, redeem, acquire or retire for value any capital stock of
Holdings held by any key employee of Holdings or its Subsidiaries (other than any employee that
is a partner of or otherwise holds any equity interest in La Cadena or any La Cadena Successor)
upon any such person’s death, disability or termination of employment and pursuant to any
management equity subscription agreement, stock option agreement or other incentive compensation
plan or agreement entered into in the ordinary course of business; provided that the
aggregate price paid for all such repurchased, redeemed, acquired or retired capital stock shall
not exceed $1,000,000, which aggregate amount shall increase by $1,000,000 on each anniversary of
the Closing Date.

     8.03 Change in Nature of Business; Ownership of Assets. Holdings shall not:

     (a) engage in any business other than entering into and performing its obligations under and
in accordance with the Loan Documents and Senior Note Documents to which it is a party and
contracts or agreements to which it is a party on the Closing Date;

     (b) own any assets other than (i) the capital stock of Borrower and Development, (ii) cash
and cash equivalents, and (iii) promissory notes payable by Borrower to Holdings that are
otherwise permitted to be issued by Borrower hereunder; or

     (c) permit Development to engage in substantial business other than construction management
services and the development and construction of new stores and distribution centers (including
the ownership of prospective sites for new stores and activities ancillary thereto), or in any
event permit Development to engage in the wholesale or retail grocery business.

     8.04 Transactions with Affiliates. Holdings shall not enter into any transaction of any kind with
any Affiliate of Holdings other than arm’s-length transactions with Affiliates that are otherwise
permitted hereunder; provided that the foregoing restriction shall not apply to

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transactions between (i) Holdings and the Borrower, (ii) Holdings and any of its Wholly-Owned
Subsidiaries that are Guarantors, or (iii) any of Holdings’ Wholly-Owned Subsidiaries that are
Guarantors.

     8.05 Amendments or Waivers of Senior Note Documents. Holdings shall not amend or otherwise change
the terms of any Senior Note Document, if the effect of such amendment or change is to:

     (a) increase the interest rate on Senior Notes;

     (b) change (to earlier dates) any dates upon which payments of principal or interest are due
thereon;

     (c) change any event of default or condition to an event of default with respect thereto
(other than to eliminate any such event of default or increase any grace period related thereto);

     (d) change the redemption, prepayment or defeasance provisions thereof;

     (e) change or permit any of its Subsidiaries to change any collateral therefor (other than
to release such collateral);

     (f) add any Negative Pledge thereto or modify any Negative Pledge therein that would in
either case restrict the ability of any Loan Party to grant liens to secure the Obligations of
such Loan Party; or

     (g) when together with all other amendments or changes made, materially increases the
obligations of the obligor thereunder or confers any additional rights on the holders of such
Senior Notes (or a trustee or other representative on their behalf) which would be adverse to
Holdings or the Lenders.

Notwithstanding any other provision of this Section 8.05, the addition of any new guarantor of the
Senior Notes in accordance with the terms of the Existing Indenture or the New Indenture, as
applicable, shall be permitted hereunder.

ARTICLE IX

EVENTS OF DEFAULT AND REMEDIES

     9.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii)
within three days after the same becomes due, any interest on any Loan or on any L/C Obligation,
or any Commitment fee due hereunder, or (iii) within five days after the same becomes due, any
other fee or amount payable hereunder or under any other Loan Document; or

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     (b) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.01, 6.02, Article VII or
Article VIII; or

     (c) Other Defaults.

     (i) The occurrence of an Event of Default (as such term is or may hereafter be
specifically defined in any other Loan Document) under any Loan Document other than this
Agreement; or

     (ii) any Loan Party fails to perform or observe any other covenant or agreement (not
specified in subsection (a) or (b) above or in clause (i) of this subsection (c)) contained
in any Loan Document on its part to be performed or observed and such failure continues for
30 days after the earlier of (i) the date upon which a Responsible Officer has knowledge of
such failure and (ii) the date the Administrative Agent provides notice of such failure to
the Borrower; or

     (d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party
herein, in any other Loan Document, or in any document delivered in connection herewith or
therewith shall be incorrect or misleading when made or deemed made; or

     (e) Cross-Default. (i) Holdings or any other Loan Party (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and
Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) of more than $7,500,000, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or Guarantee or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the
effect of which default or other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or
beneficiaries of such Guarantee (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 be demanded or to become due or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable or
cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract
an Early Termination Date (as defined in such Swap Contract) resulting from (A) any event of
default under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting
Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such
Swap Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by the Borrower or such Subsidiary as a
result thereof is greater than $7,500,000; or

     (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes
an assignment for the benefit of creditors; or applies for or consents to the appointment

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of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or
for all or any material part of its property; or any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer is appointed without the application or consent of
such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or any material part
of its property is instituted without the consent of such Person and continues undismissed or
unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits
in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ
or warrant of attachment or execution or similar process is issued or levied against all or any
material part of the property of any such Person and is not released, vacated or fully bonded
within 30 days after its issue or levy; or

     (h) Judgments. There is entered against any Loan Party (i) one or more final
judgments or orders for the payment of money in an aggregate amount (as to all such judgments or
orders) exceeding $7,500,000, or (ii) any one or more non-monetary final judgments that, in the
aggregate, have a Material Adverse Effect and, in either case, (A) enforcement proceedings are
commenced by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive
days during which a stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, is not in effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in liability of
the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an
aggregate amount in excess of $1,000,000; (ii) the aggregate amount of Unfunded Pension Liability
among all Pension Plans at any time exceeds $35,000,000; or (iii) the Borrower or any ERISA
Affiliate fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section
4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $1,000,000; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its
execution and delivery and for any reason other than as expressly permitted hereunder or
thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect
or is declared by a court of competent jurisdiction to be null and void, invalid or unenforceable
in any respect; or any Loan Party or any other Person contests in any manner the validity or
enforceability of any Loan Document; or any Loan Party denies that it has any or further
liability or obligation under any Loan Document, or purports to revoke, terminate or rescind any
Loan Document; or

     (k) Material Adverse Effect. Any event occurs which has a Material Adverse Effect.

     (l) Change of Control. Any Change of Control occurs.

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     (m) Failure to Refinance or Pay in Full Existing Fixed Rate Senior Notes. The Loan
Parties fail to refinance in full (on terms and conditions satisfactory to the Administrative
Agent and the Required Lenders) or otherwise pay in full the Existing Fixed Rate Senior Notes on
or prior to December 15, 2011.

     9.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall
be terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrower;

     (c) require that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to
the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and
all interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall
automatically become effective, in each case without further act of the Administrative Agent or any
Lender.

     9.03 Application of Funds. After the exercise of remedies provided for in Section 9.02 (or
after the Loans have automatically become immediately due and payable and the L/C Obligations have
automatically been required to be Cash Collateralized as set forth in the proviso to Section
9.02), any amounts received on account of the Obligations shall be applied by the
Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and amounts payable under Article III) payable to the Administrative
Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders
and the L/C Issuer (including fees, charges and disbursements of counsel to the respective

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Lenders
and the L/C Issuer and amounts payable under Article III), ratably among them in proportion
to the respective amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, L/C Borrowings and Obligations then owing under Lender Hedge Agreements and Lender Cash
Management Agreements, ratably among the Lenders, the L/C Issuer, the Hedge Banks and the Cash
Management Banks in proportion to the respective amounts described in this clause Fourth
held by them;

     Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters
of Credit; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Borrower or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral
after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, if any, in the order set forth above.

Notwithstanding the foregoing, Obligations arising under Lender Cash Management Agreements and
Lender Hedge Agreements shall be excluded from the application described above if the
Administrative Agent has not received written notice thereof, together with such supporting
documentation as the Administrative Agent may request, from the applicable Cash Management Bank or
Hedge Bank, as the case may be. Each Cash Management Bank or Hedge Bank not a party to the Credit
Agreement that has given the notice contemplated by the preceding sentence shall, by such notice,
be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to
the terms of Article X hereof for itself and its Affiliates as if a “Lender” party hereto.

ARTICLE X

ADMINISTRATIVE AGENT

     10.01 Appointment and Authority. Each of the Lenders and the L/C Issuer hereby irrevocably
appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and neither the Borrower nor Holdings shall have rights as a third party
beneficiary of any of such provisions.

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     10.02 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as
though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include the Person serving
as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any other advisory
capacity for and generally engage in any kind of business with any Loan Party or any of its
Subsidiaries or other Affiliates as if such Person were not the Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

     10.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein and in the other Loan Documents. Without limiting the
generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that the Administrative Agent is required to exercise as directed in writing by the
Required Lenders (or such other number or percentage of the Lenders as shall be expressly
provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action that, in its opinion
or the opinion of its counsel, may expose the Administrative Agent to liability or that is
contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to the Loan Parties or any of their Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 11.01 and 9.02) or (ii)
in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower, a Lender or the L/C Issuer.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV

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or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

     10.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon,
and shall not incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may
rely upon any statement made to it orally or by telephone and believed by it to have been made by
the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C
Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender
or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The
Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be liable for any action
taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

     10.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and
powers hereunder or under any other Loan Document by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform
any and all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the
Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Administrative Agent.

     10.06 Resignation of Administrative Agent. The Administrative Agent may at any time give notice of
its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of any such notice
of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to
appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of
any such bank with an office in the United States. If no such successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the Administrative Agent shall
notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then
such resignation shall nonetheless become effective in accordance with such notice and (1) the
retiring Administrative Agent shall be discharged from its duties and obligations hereunder and
under the other Loan Documents (except that in the case of any collateral security held by the
Administrative Agent on behalf of the Lenders or the L/C Issuer under any of the Loan Documents,
the retiring Administrative Agent shall continue to hold such collateral security until such time
as a successor Administrative Agent is appointed) and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and the L/C Issuer directly,

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until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Borrower to a successor
Administrative Agent shall be no greater than those payable to its predecessor unless otherwise
agreed between the Borrower and such successor. After the retiring Administrative Agent’s
resignation hereunder and under the other Loan Documents, the provisions of this Article and
Section 11.04 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

     Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also
constitute its resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of the retiring L/C Issuer, (b) the
retiring L/C Issuer shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of
the retiring L/C Issuer with respect to such Letters of Credit.

     10.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer
acknowledges that it has, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon
the Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

     10.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the Book
Manager or Arranger listed on the cover page hereof shall have any powers, duties or
responsibilities under this Agreement or any of the other Loan Documents, except in its capacity,
as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.

     10.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall
then be due and payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

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     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and
unpaid and to file such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and
the Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(i) and
(j), 2.08 and 11.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, in the event that the Administrative Agent shall consent
to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.08 and 11.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the
L/C Issuer to authorize the Administrative Agent to vote in respect of the claim of any Lender or
the L/C Issuer in any such proceeding.

     10.10 Guaranty Matters. The Lenders (including in its capacities as a potential Cash Management
Bank and a potential Hedge Bank) and the L/C Issuer irrevocably authorize the Administrative Agent,
at its option and in its discretion, to release any Guarantor from its obligations under the
Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.
Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing
the
Administrative Agent’s authority to release any Guarantor from its obligations under the Guaranty
pursuant to this Section 10.10.

     10.11 Lender Cash Management Agreements and Lender Hedge Agreements. No Cash Management Bank or
Hedge Bank that obtains the benefits of Section 9.03 or any Guaranty by virtue of the provisions
hereof or of any Guaranty shall have any right to notice of any action or to consent to, direct or
object to any action hereunder or under any other Loan Document other than in its capacity as a
Lender and, in such case, only to the extent expressly provided in the Loan Documents.
Notwithstanding any other provision of this Article X to the contrary, the Administrative Agent
shall not be required to verify the payment of, or that other satisfactory arrangements have been
made with respect to, Obligations arising under Lender Cash Management Agreements and Lender Hedge
Agreements unless the Administrative Agent has received written notice of such Obligations,
together with such supporting documentation as the Administrative Agent may request, from the
applicable Cash Management Bank or Hedge Bank, as the case may be.

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ARTICLE XI

MISCELLANEOUS

     11.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by any Loan Party therefrom, shall be effective unless in
writing signed by the Required Lenders and the applicable Loan Party, as the case may be, and
acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 9.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment or
mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of
them) hereunder or under any other Loan Document without the written consent of each Lender
directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iii) of the second proviso to this Section 11.01) any
fees or other amounts payable hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby; provided, however, that only
the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate”
or to waive any obligation of the Borrower to pay interest or Letter of Credit Fees at the
Default Rate;

     (e) change Section 2.12 or Section 9.03 in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender;

     (f) change any provision of this Section or the definition of “Required Lenders” or any
other provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender; or

     (g) release any Guarantor from the Guaranty without the written consent of each Lender,
except to the extent the release of such Guarantor is permitted pursuant to Section 10.10
(in which case such release may be made by the Administrative Agent acting alone);

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Administrative Agent in addition to the Lenders required above, affect the rights
or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iii)
the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed
only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting

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Lender
shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except
that the Commitment of such Lender may not be increased or extended without the consent of such
Lender.

     11.02 Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (b) below),
all notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
telecopier as follows, and all notices and other communications expressly permitted hereunder to
be given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrower, Holdings, the Administrative Agent or the L/C Issuer, to the
address, telecopier number, electronic mail address or telephone number specified for such
Person on Schedule 11.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices and other communications sent by hand or overnight courier service, or mailed by certified
or registered mail, shall be deemed to have been given when received; notices and other
communications sent by telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have been given at the
opening of business on the next business day for the recipient). Notices and other communications
delivered through electronic communications to the extent provided in subsection (b) below, shall
be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer 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 or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has
notified the Administrative Agent that it is incapable of receiving notices under such Article by
electronic communication. The Administrative Agent, the Borrower or Holdings 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

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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.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS
OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM
THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY
RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION
WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any
of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan
Party, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or
expenses of any kind (whether in tort, contract or otherwise) arising out of any Loan Party’s or
the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in
no event shall any Agent Party have any liability to any Loan Party, any Lender, the L/C Issuer
or any other Person for indirect, special, incidental, consequential or punitive damages (as
opposed to direct or actual damages).

     (d) Change of Address, Etc. Each of the Borrower, Holdings, the Administrative
Agent and the L/C Issuer may change its address, telecopier or telephone number for notices and
other communications hereunder by notice to the other parties hereto. Each other Lender may
change its address, telecopier or telephone number for notices and other communications
hereunder by notice to the Borrower, Holdings, the Administrative Agent and the L/C Issuer.
In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure
that the Administrative Agent has on record (i) an effective address, contact name, telephone
number, telecopier number and electronic mail address to which notices and other communications
may be sent and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender
agrees to cause at least one individual at or on behalf of such Public Lender to at all times
have selected the “Private Side Information” or similar designation on the content declaration
screen of the Platform in order to enable such Public Lender or its delegate, in accordance with
such Public Lender’s compliance procedures and applicable Law, including United States Federal
and state securities Laws, to make reference to Borrower Materials that are not made available
through the “Public Side Information” portion of the Platform and that may contain material
non-public information with respect to the Borrower, Holdings or their securities for purposes of
United States Federal or state securities laws.

     (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Loan Notices) purportedly given by or on behalf of the

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Borrower even if (i)
such notices were not made in a manner specified herein, were incomplete or were not preceded or
followed by any other form of notice specified herein, or (ii) the terms thereof, as understood
by the recipient, varied from any confirmation thereof. The Borrower shall indemnify the
Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from
all losses, costs, expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

     11.03 No Waiver; Cumulative Remedies; Enforcement. No failure by any Lender, the L/C Issuer or the
Administrative Agent to exercise, and no delay by any such Person in exercising, 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.

     Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law
in connection with such enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 9.02 for the benefit of all the Lenders and
the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies that inure to its
benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan
Documents, (b) the L/C Issuer from exercising the rights and remedies that inure to its benefit
(solely in its capacity as L/C Issuer) hereunder and under the other Loan Documents, (c) any
Lender from exercising setoff rights in accordance with Section 11.08 (subject to the
terms of Section 2.12), or (d) any Lender from filing proofs of claim or appearing and
filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party
under any Debtor Relief Law; and provided, further, that if at any time there is no
Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the
Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to
Section 9.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of
the preceding proviso and subject to Section 2.12, any Lender may, with the consent of the
Required Lenders, enforce any rights and remedies available to it and as authorized by the Required
Lenders.

     11.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Borrower shall pay (i) all reasonable out-of-pocket
expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for the Administrative Agent), in connection with the
syndication of the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable

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out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer
(including the fees, charges and disbursements of any counsel for the Administrative Agent, any
Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

     (b) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses (including the fees, charges and disbursements
of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee
by any third party or by the Borrower or any other Loan Party arising out of, in connection with,
or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any
agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of
their respective obligations hereunder or thereunder, the consummation of the transactions
contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Agreement and the other Loan
Documents (including in respect of any matters addressed in Section 3.01), (ii) any Loan
or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal
by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any
property owned or operated by any
Loan Party or any of its Subsidiaries, or any Environmental Liability related in any way to
any Loan Party or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by the Borrower or any other Loan Party,
and regardless of whether any Indemnitee is a party thereto; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or (y) result from a claim brought by the Borrower or any other Loan Party
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under
any other Loan Document, if the Borrower or such other Loan Party has obtained a final and
nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails
to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by
it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party of
any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any
such sub-agent), the L/C Issuer or such Related Party, as the

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case may be, such Lender’s
Applicable Percentage (determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount, provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C
Issuer in its capacity as such, or against any Related Party of any of the foregoing acting for
the Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the provisions of
Section 2.11(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or as a result of,
this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the
proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any
damages arising from the use by unintended recipients of any information or other materials
distributed to such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this Agreement or the
other Loan Documents or the transactions contemplated hereby or thereby other than for direct or
actual damages resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent jurisdiction.

     (e) Payments. All amounts due under this Section shall be payable not later than
ten Business Days after demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent and the L/C Issuer, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

     11.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made
to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the L/C
Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set
aside or required (including pursuant to any settlement entered into by the Administrative Agent,
the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the
extent of such recovery, the obligation or part thereof originally intended to be satisfied shall
be revived and continued in full force and effect as if such payment had not been made or such
setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect. The obligations of

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the Lenders and the L/C Issuer under clause (b) of the
preceding sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

     11.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that neither the Borrower nor Holdings may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of subsection (f) of this Section (and any other attempted assignment
or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

     (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment and the Loans at the time owing to it or in the case
of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $1,000,000 unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee

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Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met;

     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans or the Commitment assigned;

     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

     (A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required if such assignment is to a
Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with
respect to such Lender;

     (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the obligation of
the assignee to participate in exposure under one or more Letters of Credit (whether
or not then outstanding).

In the event the Borrower’s consent is required to an assignment pursuant to clause
(A) above, the Borrower may withhold its consent if such assignment is not to (i) a
financial institution organized under the laws of the United States, or any
state thereof, and having a combined capital and surplus of at least $100,000,000;
or (ii) a commercial bank organized under the laws of any other country which is a
member of the Organization for Economic Cooperation and Development, or a political
subdivision of any such country, and having a combined capital and surplus of at
least $100,000,000, provided that such bank is acting through a branch or agency
located in the United States.

     (iv) Assignment and Assumption. The assignors and assignees to each assignment
shall execute and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee in the amount of $3,500; provided,
however, that the Administrative Agent may, in its sole discretion, elect to waive
such processing and recordation fee in the case of any assignment. The assignee, if it is
not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire;

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower, Holdings or any of the Borrower’s or Holdings’ Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

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Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05, and 11.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, the Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with subsection (d) of
this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent
of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”). The
entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.
The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice
to, the Borrower, Holdings or the Administrative Agent, sell participations to any Person (other
than a natural person or the Borrower, Holdings or any of the Borrower’s or Holdings’ Affiliates
or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Commitment and/or the
Loans (including such Lender’s participations in L/C Obligations) owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender
shall remain solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrower, Holdings, the Administrative Agent, the Lenders and the L/C
Issuer shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to
Section 11.01 that affects such Participant. Subject to subsection (e) of this Section,
the Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and

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3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 11.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.12 as
though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.01 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.01(e) as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including under its Note, if
any) to secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall
release such Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

     (g) Resignation as L/C Issuer after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans
pursuant to subsection (b) above, Bank of America may, upon 30 days’ notice to the Borrower and
the Lenders, resign as L/C Issuer. In the event of any such resignation as L/C
Issuer, the Borrower shall be entitled to appoint from among the Lenders a successor L/C
Issuer hereunder; provided, however, that no failure by the Borrower to appoint
any such successor shall affect the resignation of Bank of America as L/C Issuer. If Bank of
America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of
the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the
right to require the Lenders to make Loans or fund risk participations in Unreimbursed Amounts
pursuant to Section 2.03(c)). Upon the appointment of a successor L/C Issuer, (a) such
successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer, and (b) the successor L/C Issuer shall issue letters of credit
in substitution for the Letters of Credit, if any, outstanding at the time of such succession or
make other arrangements satisfactory to Bank of America to effectively assume the obligations of
Bank of America with respect to such Letters of Credit.

     11.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the
Lenders and the L/C Issuer 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, trustees, advisors and
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

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Association of
Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, provided that, to the extent practical and legally permissible,
such Person disclosing such Information shall give advance notice of such disclosure to the
Borrower, (d) to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights
or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to any Loan Party and its obligations, (g)
with the consent of the Borrower or (h) 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 L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrower.

     For purposes of this Section, “Information” means all information received from the
Loan Parties or any of their Subsidiaries relating to the Loan Parties or any of their Subsidiaries
or any of their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the L/C Issuer on a nonconfidential basis prior to disclosure
by any Loan Party or any of its Subsidiaries, provided that, in the case of information
received from the Loan Parties or any of their Subsidiaries after the date hereof, such information
is clearly identified at the time of delivery as confidential. 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.

     Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a)
the Information may include material non-public information concerning the Loan Parties or any of their
Subsidiaries, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public
information and (c) it will handle such material non-public information in accordance
with applicable Law, including United States Federal and state securities Laws.

     11.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and
from time to time, after obtaining the prior written consent of the Administrative Agent, to the
fullest extent permitted by applicable law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, the L/C Issuer or any such
Affiliate to or for the credit or the account of the Borrower or any other Loan Party against any
and all of the obligations of the Borrower or such Loan Party now or hereafter existing under this
Agreement or any other Loan Document to such Lender or the L/C Issuer, irrespective of whether or
not such Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan
Document and although such obligations of the Borrower or such Loan Party may be contingent or
unmatured or are owed to a branch or office of such Lender or the L/C Issuer different from the
branch or office holding such deposit or obligated on such indebtedness.

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The rights of each
Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other
rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their
respective Affiliates may have. Each Lender and the L/C Issuer agrees to notify the Borrower and
the Administrative Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and application.

     11.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan
Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the
total amount of interest throughout the contemplated term of the Obligations hereunder.

     11.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts
(and by different parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties relating to the
subject matter hereof and supersede any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. Except as provided in Section 4.01, this
Agreement shall become effective when it shall have been executed by the Administrative Agent and
when the Administrative Agent shall have received counterparts hereof that, when taken together,
bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a
signature page of this Agreement by
telecopy or other electronic imaging means shall be effective as delivery of a manually executed
counterpart of this Agreement.

     11.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.

     11.12 Severability. If any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining
provisions of this Agreement and the other Loan Documents shall not be affected or

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impaired thereby
and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a
provision in a particular jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

     11.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04, or
if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a
Defaulting Lender, 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 11.06), all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee specified in
Section 11.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal
of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder and under the other Loan Documents (including any amounts under
Section 3.05) 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);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable Laws.

     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.

     11.14 Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF CALIFORNIA.

     (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF CALIFORNIA AND OF THE UNITED STATES DISTRICT COURT OF THE CENTRAL
DISTRICT, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION

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OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS
IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES
HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY
BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY
LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ANY
OTHER LOAN PARTY OR THEIR RESPECTIVE PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B)
OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02. NOTHING IN THIS AGREEMENT
WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY
APPLICABLE LAW.

     11.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES
HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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     11.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Loan Document), the
Borrower and each other Loan Party acknowledges and agrees, and acknowledges its Affiliates’
understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by
the Administrative Agent and the Arranger are arm’s-length commercial transactions between the
Borrower, each other Loan Party and their respective Affiliates, on the one hand, and the
Administrative Agent and the Arranger, on the other hand, (B) each of the Borrower and the other
Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it
has deemed appropriate, and (C) the Borrower and each other Loan Party is capable of evaluating,
and understands and accepts, the terms, risks and conditions of the transactions contemplated
hereby and by the other Loan Documents; (ii) (A) the Administrative Agent and the Arranger each is
and has been acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary
for the Borrower, any other Loan Party or any of their respective Affiliates, or any other Person
and (B) neither the Administrative Agent nor the Arranger has any obligation to the Borrower, any
other Loan Party or any of their respective Affiliates with respect to the transactions
contemplated hereby except those obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent and the Arranger and their respective Affiliates may
be engaged in a broad range of transactions that involve interests that differ from those of the
Borrower, the other Loan Parties and their respective Affiliates, and neither the Administrative
Agent nor the Arranger has any obligation to disclose any of such interests to the Borrower, any
other Loan Party or any of their respective Affiliates. To the fullest extent permitted by law,
each of the Borrower and the other Loan Parties hereby waives and releases any claims that it may
have against the Administrative Agent and the Arranger with respect to any breach or alleged breach
of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

     11.17 Electronic Execution of Assignments and Certain Other Documents. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and
Assumption or in any amendment or other modification hereof (including waivers and consents) shall
be deemed to include electronic signatures or the keeping of records in electronic form, each of
which shall be of the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and
as provided for in any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other
similar state laws based on the Uniform Electronic Transactions Act.

     11.18 USA PATRIOT Act. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent
(for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information that identifies
the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender or the Administrative Agent, as applicable, to identify the
Borrower in accordance with the Act. The Borrower shall, promptly following a request by the
Administrative Agent or any Lender, provide all documentation and other information that the
Administrative Agent or such Lender requests in

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order to comply with its ongoing obligations under
applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

     11.19 Time of the Essence. Time is of the essence of the Loan Documents.

     11.20 California Judicial Reference. If any action or proceeding is filed in a court of the State of California by or against any
party hereto in connection with any of the transactions contemplated by this Agreement or any other
Loan Document, (a) the court shall, and is hereby directed to, make a general reference pursuant to
California Code of Civil Procedure Section 638 to a referee (who shall be a single active or
retired judge) to hear and determine all of the issues in such action or proceeding (whether of
fact or of law) and to report a statement of decision, provided that at the option of any
party to such proceeding, any such issues pertaining to a “provisional remedy” as defined in
California Code of Civil Procedure Section 1281.8 shall be heard and determined by the court, and
(b) without limiting the generality of Section 11.04, the Borrower shall be solely
responsible to pay all fees and expenses of any referee appointed in such action or proceeding.

     11.21 Amendment and Restatement. This Agreement amends and restates the Existing Credit
Agreement in its entirety, without constituting a novation thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGES FOLLOW]

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

	 	 	 	 	 	 	 

	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	STATER BROS. MARKETS,

a California corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Phillip J. Smith
 

Phillip J. Smith
	 	 
	 

	 	Title:
	 	Executive Vice President, Chief Financial	 	 
	 

	 	 	 	Office and Chief Accounting Officer	 	 
	 
	 	 	 	 	 	 
	 	 	HOLDINGS:	 	 
	 
	 	 	 	 	 	 
	 	 	STATER BROS. HOLDINGS INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Bruce D. Varner
 

Bruce D. Varner
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Matthew Koenig
 

Matthew Koenig
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as a Lender and L/C Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Matthew Koenig
 

Matthew Koenig
	 	 
	 

	 	Title:
	 	Senior Vice President	 	 

S - 1

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable
	Lender	 	Commitment	 	Percentage
	Bank of America, N.A.
	 	$	100,000,000	 	 	 	100.000000000	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	$	100,000,000	 	 	 	100.000000000	%

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SCHEDULE 2.03

EXISTING LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Liability
	 	 	LC	 	 	 	 	 	Expiry	 	Original	 	Amount as of
	Name	 	Number	 	Issue Date	 	Date	 	Amount	 	3/29/2010
	Standby — Financial
	 	 	223317	 	 	 	06/05/1996	 	 	 	02/16/2011	 	 	$	243,378.00	 	 	$	33,000.00	 
	Standby — Financial
	 	 	223967	 	 	 	06/07/1996	 	 	 	09/30/2010	 	 	$	12,911,782.16	 	 	$	11,879,264.71	 
	Standby — Financial
	 	 	3044835	 	 	 	12/19/2001	 	 	 	10/01/2010	 	 	$	15,000,000.00	 	 	$	15,000,000.00	 
	Standby — Financial
	 	 	3052630	 	 	 	11/26/2002	 	 	 	10/01/2010	 	 	$	10,000,000.00	 	 	$	10,000,000.00	 
	Standby — Financial
	 	 	3055095	 	 	 	03/27/2003	 	 	 	10/01/2010	 	 	$	10,000,000.00	 	 	$	10,000,000.00	 
	Standby — Financial
	 	 	3073095	 	 	 	01/28/2005	 	 	 	12/31/2010	 	 	$	800,000.00	 	 	$	500,000.00	 
	Standby — Financial
	 	 	3081177	 	 	 	03/28/2006	 	 	 	12/31/2010	 	 	$	800,000.00	 	 	$	2,350,000.00	 

-1-

 

SCHEDULE 5.17

SUBSIDIARIES AND EQUITY INTERESTS

Borrower owns 100% of the Equity Interests in the following Subsidiaries and has no other
Subsidiaries:

STATER BROS. DEVELOPMENT, INC.

SBM DAIRIES, INC.

SUPER RX, INC.

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SCHEDULE 7.01

EXISTING INDEBTEDNESS

	 	 	 

	7.01(d)
	 	Indebtedness (other than capital lease):
	 
	 
	 	 
	 
	 	Note payable due by Stater Bros. Markets to Stater Bros. Holdings, Inc. in the principal
	 
	 	amount of $50,000,000.00
	 
	 	 
	7.01(e)
	 	Indebtedness in respect of capital leases:
	 
	 
	 	 
	 
	 	$4,461,615.00

-1-

 

SCHEDULE 7.02

EXISTING LIENS

	 	 	 

	7.02 (c)
	 	$0.00

-1-

 

SCHEDULE 11.02

ADMINISTRATIVE AGENT’S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

BORROWER AND HOLDINGS:

                                                                                

                                                                                

                                                                                

Attention:

Telephone:

Telecopier:

Electronic Mail:                     @___

Website Address: www.                                        

U.S. Taxpayer Identification Number:                                         

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions of Base Rate Loans):

Bank of America, N.A.

275 Valencia Ave.

Brea, California 92823-6340

Attention: Sheryl Blevins

Telephone: (888) 841-8159 ext 61670

Telecopier: (877) 859-6304

Electronic Mail: sheryl.a.blevins@bankofamerica.com

Administrative Agent’s Office

(for payments and Requests for Credit Extensions of Eurodollar Rate Loans):

Bank of America, N.A.

Electronic Mail: creditservicesops-ratelocks@bankofamerica.com

Other Notices as Administrative Agent:

Bank of America, N.A.

Agency Management

333 South Hope Street, 13th Floor

Los Angeles, California 90071

Attention: Matthew Koenig

Telephone: (213) 621-7190

Telecopier: (312) 453-5583

Electronic Mail: matthew.koenig@bankofamerica.com

1

 

L/C ISSUER:

Bank of America, N.A.

333 South Hope Street, Suite 1300,

Los Angeles, California 90071

Mailcode: CA9-193-13-01

Attention: Racquel Saika

Telephone: (213) 621-7161

Telecopier: (415) 796-5741

Electronic Mail: racquel.saika@bankofamerica.com

2

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