Document:

exv4wxcy

Exhibit 4(c)

 

 

BERKSHIRE HILLS BANCORP, INC.

Issuer

and

[                                        ]

Trustee

 

Indenture

Dated as of                     

 

SUBORDINATED DEBT SECURITIES

 

 

 

 

BERKSHIRE HILLS BANCORP, INC.

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO

SECTIONS 310 THROUGH 318, INCLUSIVE, OF THE

TRUST INDENTURE ACT OF 1939:

	 	 	 
	Trust Indenture	 	 
	Act Section  	 	Indenture Section
	§310(a)(1)

	 	609 
	(a)(2)

	 	609 
	(a)(3)

	 	Not Applicable 
	(a)(4)

	 	Not Applicable 
	(b)

	 	608; 610 
	§311(a)

	 	613 
	(b)

	 	613 
	§312(a)

	 	701; 702 
	(b)

	 	702 
	(c)

	 	702 
	§313(a)

	 	703 
	(b)

	 	703 
	(c)

	 	703 
	(d)

	 	703 
	§314(a)

	 	704 
	(a)(4)

	 	1004 
	(b)

	 	Not Applicable 
	(c)(1)

	 	102 
	(c)(2)

	 	102 
	(c)(3)

	 	Not Applicable 
	(d)

	 	Not Applicable 
	(e)

	 	102 
	§315(a)

	 	601, 603 
	(b)

	 	602 
	(c)

	 	601 
	(d)

	 	601 
	(e)

	 	514 
	§316(a)

	 	101 
	(a)(1)(A)

	 	502; 512 
	(a)(1)(B)

	 	513 
	(a)(2)

	 	Not Applicable 
	(b)

	 	508 
	(c)

	 	104 
	§317(a)(1)

	 	503 
	(a)(2)

	 	504 
	(b)

	 	1003 
	§318(a)

	 	107 

 

			
	NOTE:	 	This reconciliation and tie shall not, for any purpose, be deemed to be a part of the
Indenture.

-i-

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I

	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 
	 	 	 	 	 	 
	Section 101.

	 	Definitions
	 	 	1	 
	Section 102.

	 	Compliance Certificates and Opinions
	 	 	7	 
	Section 103.

	 	Form of Documents Delivered to Trustee
	 	 	8	 
	Section 104.

	 	Acts of Holders; Record Dates
	 	 	8	 
	Section 105.

	 	Notices, Etc., to Trustee and the Company
	 	 	10	 
	Section 106.

	 	Notice to Holders; Waiver
	 	 	10	 
	Section 107.

	 	Conflict with Trust Indenture Act
	 	 	10	 
	Section 108.

	 	Effect of Headings and Table of Contents
	 	 	11	 
	Section 109.

	 	Successors and Assigns
	 	 	11	 
	Section 110.

	 	Separability Clause
	 	 	11	 
	Section 111.

	 	Benefits of Indenture
	 	 	11	 
	Section 112.

	 	Governing Law
	 	 	11	 
	Section 113.

	 	Legal Holidays
	 	 	11	 
	Section 114.

	 	Language of Notices, Etc.
	 	 	11	 
	Section 115.

	 	Interest Limitation
	 	 	12	 
	Section 116.

	 	No Personal Liability of Officers, Directors, Employees or Shareholders
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE II

	SECURITY FORMS

	 
	 	 	 	 	 	 
	Section 201.

	 	Forms Generally
	 	 	13	 
	Section 202.

	 	Form of Face of Security
	 	 	13	 
	Section 203.

	 	Form of Reverse of Security
	 	 	16	 
	Section 204.

	 	Global Securities
	 	 	20	 
	Section 205.

	 	Form of Trustee’s Certificate and Authorization
	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE III

	THE SECURITIES

	 
	 	 	 	 	 	 
	Section 301.

	 	Amount Unlimited; Issuable in Series
	 	 	22	 
	Section 302.

	 	Denominations
	 	 	25	 
	Section 303.

	 	Execution, Authentication, Delivery and Dating
	 	 	25	 
	Section 304.

	 	Temporary Securities
	 	 	27	 
	Section 305.

	 	Registration, Registration of Transfer and Exchange
	 	 	28	 
	Section 306.

	 	Mutilated, Destroyed, Lost and Stolen Securities
	 	 	29	 
	Section 307.

	 	Payment of Interest; Interest Rights Preserved
	 	 	30	 
	Section 308.

	 	Persons Deemed Owners
	 	 	31	 
	Section 309.

	 	Cancellation
	 	 	32	 
	Section 310.

	 	Computation of Interest
	 	 	32	 
	Section 311.

	 	CUSIP Numbers
	 	 	32	 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE IV

	SATISFACTION AND DISCHARGE

	 
	 	 	 	 	 	 
	Section 401.

	 	Satisfaction and Discharge of Indenture
	 	 	32	 
	Section 402.

	 	Application of Trust Money
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE V

	REMEDIES

	 
	 	 	 	 	 	 
	Section 501.

	 	Events of Default
	 	 	34	 
	Section 502.

	 	Acceleration of Maturity; Rescission and Annulment
	 	 	35	 
	Section 503.

	 	Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	35	 
	Section 504.

	 	Trustee May File Proofs of Claim
	 	 	36	 
	Section 505.

	 	Trustee May Enforce Claims Without Possession of Securities
	 	 	37	 
	Section 506.

	 	Application of Money Collected
	 	 	37	 
	Section 507.

	 	Limitation on Suits
	 	 	37	 
	Section 508.

	 	Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	38	 
	Section 509.

	 	Restoration of Rights and Remedies
	 	 	38	 
	Section 510.

	 	Rights and Remedies Cumulative
	 	 	38	 
	Section 511.

	 	Delay or Omission Not Waiver
	 	 	39	 
	Section 512.

	 	Control by Holders
	 	 	39	 
	Section 513.

	 	Waiver of Past Defaults
	 	 	39	 
	Section 514.

	 	Undertaking for Costs
	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	THE TRUSTEE

	 
	 	 	 	 	 	 
	Section 601.

	 	Certain Duties and Responsibilities
	 	 	40	 
	Section 602.

	 	Notice of Defaults
	 	 	41	 
	Section 603.

	 	Certain Rights of Trustee
	 	 	41	 
	Section 604.

	 	Not Responsible for Recitals or Issuance of Securities
	 	 	43	 
	Section 605.

	 	May Hold Securities
	 	 	43	 
	Section 606.

	 	Money Held in Trust
	 	 	43	 
	Section 607.

	 	Compensation and Reimbursement
	 	 	43	 
	Section 608.

	 	Disqualification; Conflicting Interests
	 	 	44	 
	Section 609.

	 	Corporate Trustee Required; Eligibility
	 	 	44	 
	Section 610.

	 	Resignation and Removal; Appointment of Successor
	 	 	44	 
	Section 611.

	 	Acceptance of Appointment by Successor
	 	 	46	 
	Section 612.

	 	Merger, Conversion, Consolidation or Succession to Business
	 	 	47	 
	Section 613.

	 	Preferential Collection of Claims Against the Company
	 	 	47	 
	Section 614.

	 	Appointment of Authenticating Agent
	 	 	47	 

-iii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VII

	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND THE COMPANY

	 
	 	 	 	 	 	 
	Section 701.

	 	The Company to Furnish Trustee Names and Addresses of Holders
	 	 	48	 
	Section 702.

	 	Preservation of Information; Communications to Holders
	 	 	49	 
	Section 703.

	 	Reports by Trustee
	 	 	49	 
	Section 704.

	 	Reports by the Company
	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

	 
	 	 	 	 	 	 
	Section 801.

	 	The Company May Consolidate, Etc., Only on Certain Terms
	 	 	50	 
	Section 802.

	 	Successor Substituted
	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 	 	 
	Section 901.

	 	Supplemental Indentures Without Consent of Holders
	 	 	51	 
	Section 902.

	 	Supplemental Indentures with Consent of Holders
	 	 	52	 
	Section 903.

	 	Execution of Supplemental Indentures
	 	 	52	 
	Section 904.

	 	Effect of Supplemental Indentures
	 	 	53	 
	Section 905.

	 	Conformity with Trust Indenture Act
	 	 	53	 
	Section 906.

	 	Reference in Securities to Supplemental Indentures
	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE X

	COVENANTS

	 
	 	 	 	 	 	 
	Section 1001.

	 	Payment of Principal, Premium and Interest
	 	 	53	 
	Section 1002.

	 	Maintenance of Office or Agency
	 	 	53	 
	Section 1003.

	 	Money for Securities Payments to Be Held in Trust
	 	 	54	 
	Section 1004.

	 	Statement by Officers as to Default
	 	 	55	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	REDEMPTION OF SECURITIES

	 
	 	 	 	 	 	 
	Section 1101.

	 	Applicability of Article
	 	 	56	 
	Section 1102.

	 	Election to Redeem; Notice to Trustee
	 	 	56	 
	Section 1103.

	 	Selection by Trustee of Securities to be Redeemed
	 	 	56	 
	Section 1104.

	 	Notice of Redemption
	 	 	57	 
	Section 1105.

	 	Deposit of Redemption Price
	 	 	57	 
	Section 1106.

	 	Securities Payable on Redemption Date
	 	 	57	 
	Section 1107.

	 	Securities Redeemed in Part
	 	 	58	 

-iv-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE XII

	SINKING FUNDS

	 
	 	 	 	 	 	 
	Section 1201.

	 	Applicability of Article
	 	 	58	 
	Section 1202.

	 	Satisfaction of Sinking Fund Payments with Securities
	 	 	58	 
	Section 1203.

	 	Redemption of Securities for Sinking Fund
	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE XIII

	DEFEASANCE

	 
	 	 	 	 	 	 
	Section 1301.

	 	Applicability of Article
	 	 	59	 
	Section 1302.

	 	Legal Defeasance
	 	 	59	 
	Section 1303.

	 	Covenant Defeasance
	 	 	61	 
	Section 1304.

	 	Application by Trustee of Funds Deposited for Payment of Securities
	 	 	62	 
	Section 1305.

	 	Repayment to the Company
	 	 	63	 
	Section 1306.

	 	Reinstatement
	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE XIV

	SUBORDINATION OF SECURITIES

	 
	 	 	 	 	 	 
	Section 1401.

	 	Securities Subordinated to Senior Debt
	 	 	63	 

-v-

 

     INDENTURE dated as of                     , between BERKSHIRE HILLS BANCORP, INC., a Delaware
corporation (the “Company”), having its principal office at 24 North Street, Pittsfield
Massachusetts, 01201, and [                    ], a                      corporation (the “Trustee”), having its
principal office at                     .

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured subordinated debentures, notes or other evidences
of indebtedness (the “Securities”), to be issued in one or more series as provided in this
Indenture.

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     This Indenture is subject to the provisions of the Trust Indenture Act that are required to be
a part of this Indenture and, to the extent applicable, shall be governed by such provisions.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the
Securities or of any series thereof, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101. Definitions

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

          (1) the terms defined in this Article have the meanings assigned to them in this Article and
include the plural as well as the singular;

          (2) all other terms used herein which are defined in the Trust Indenture Act, either directly,
or by reference therein, have the meanings assigned to them therein;

          (3) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States, and, except as
otherwise herein expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted in the United States at the date of such computation;

 

 

          (4) the words “herein”, “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other subdivision; and

          (5) the words “Article” and “Section” refer to an Article and Section, respectively, of this
Indenture.

     “Act”, when used with respect to any Holder, has the meaning specified in Section 104.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise, and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 614 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Authorized Newspaper” means a newspaper, in the English language or in an official language
of the country of publication, customarily published on each Business Day, whether or not published
on Saturdays, Sundays or holidays, and of general circulation in the place in connection with which
the term is used or in the financial community of such place.

     “Bankruptcy Law” means Title 11, U.S. Code, or any similar federal or state law for the relief
of debtors or the protection of creditors.

     “Board of Directors” means the board of directors of the Company, or the executive or any
other committee of that board duly authorized to act in respect thereof.

     “Board Resolution” means a copy of a resolution certified by the Corporate Secretary of the
Company, the principal financial officer of the Company or any other authorized officer of the
Company or a Person duly authorized by any of them, to have been duly adopted by the Board of
Directors and to be in full force and effect on the date of such certification, and delivered to
the Trustee.

     “Business Day”, when used with respect to any Place of Payment or other location, means,
except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in that Place of Payment or other location are authorized or obligated by law,
executive order or regulation to close.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Exchange Act or, if at any time after the execution of this instrument such
Commission is not existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

-2-

 

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by the Chairman of the Board, the Vice Chairman, the President or a Vice President of
the Company, and by the Treasurer or Secretary of the Company, and delivered to the Trustee.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which at the date hereof is                     .

     “Corporation” includes corporations, associations, partnerships (general or limited), limited
liability companies, joint-stock companies and business trusts.

     “Covenant defeasance” has the meaning specified in Section 1303.

     “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

     “Debt” means any debt for money borrowed.

     “Default” means, with respect to a series of Securities, any event which is, or after notice
or lapse of time or both would become, an Event of Default with respect to Securities of such
series.

     “Defaulted Interest” has the meaning specified in Section 307.

     “Defeasance” has the meaning specified in Section 1302.

     “Definitive Security” means a Security other than a Global Security or a temporary Security.

     “Depositary” means, with respect to Securities of any series issuable in whole or in part in
the form of one or more Global Securities, a clearing agency registered under the Exchange Act that
is designated to act as Depositary for such Securities as contemplated by Section 301, until a
successor Depositary shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter shall mean or include each Person which is then a Depositary hereunder,
and if at any time there is more than one such Person, shall be a collective reference to such
Persons.

     “Dollar” or “$” means the coin or currency of the United States of America as at the time of
payment is legal tender for the payment of public and private debts.

     “Event of Default” has the meaning specified in Section 501.

-3-

 

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

     “Fiscal Year” means, with respect to the Company, each 12-month period beginning on January 1
and ending on December 31; provided, however, that, with respect to a series of Securities, the
first fiscal year will begin on the date such series of Securities is authenticated and delivered
under this Indenture. The Company will notify the Trustee if its fiscal year changes.

     “Global Security” means a Security in global form that evidences all or part of the Securities
of any series and is registered in the name of the Depositary for such Securities or a nominee
thereof.

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively. The term “Indenture”
also shall include the terms of particular series of Securities established as contemplated by
Section 301.

     “Interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

     “Interest Payment Date”, when used with respect to any Security, means the Stated Maturity of
an installment of interest on such Security.

     “Maturity”, when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

     “Notice of Default” means a written notice of the kind specified in Section 501(3).

     “Officers’ Certificate” of a Person means a certificate signed by any two of the Chairman of
the Board, the Vice Chairman, the President or a Vice President of the Person, or if such Person is
a partnership, of its general partner, and delivered to the Trustee. One of the officers or such
other Persons (as applicable) signing an Officers’ Certificate given pursuant to Section 1004 shall
be the principal executive, financial or accounting officer of the Person, or if such Person is a
partnership, of its general partner.

     “Opinion of Counsel” means a written opinion of legal counsel, who may be an employee of or
counsel for the Company, which opinion shall comply with the provisions of Sections 102 and 103.
Such counsel shall be acceptable to the Trustee, whose acceptance shall not be unreasonably
withheld.

-4-

 

     “Original Issue Discount Security” means any Security which provides for an amount less than
the stated principal amount thereof to be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502.

     “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

          (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

          (ii) Securities for whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set
aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for
the Holders of such Securities; provided, however, that, if such Securities are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or provision therefor has
been made;

          (iii) Securities which have been paid pursuant to Section 306 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company; and

          (iv) Securities, except to the extent provided in Sections 1302 and 1303, with respect to
which the Company has effected defeasance or covenant defeasance as provided in Article XIII;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, (A) the principal amount of an Original Issue Discount Security that shall be
deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable
as of the date of such determination upon acceleration of the Maturity thereof on such date
pursuant to Section 502, (B) the principal amount of a Security denominated in one or more
currencies or currency units other than U.S. dollars shall be the U.S. dollar equivalent of such
currencies or currency units, determined in the manner provided as contemplated by Section 301 on
the date of original issuance of such Security, of the principal amount (or, in the case of an
Original Issue Discount Security, the U.S. dollar equivalent (as so determined) on the date of
original issuance of such Security, of the amount determined as provided in Clause (A) above) of
such Security, and (C) Securities owned by the Company or any other obligor upon the Securities or
any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities which
the Trustee knows to be so owned shall be so disregarded. Securities so owned as described in
Clause (C) above which have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.

-5-

 

     “Paying Agent” means any Person authorized by the Company to pay the principal of or any
premium or interest on any Securities on behalf of the Company.

     “Periodic Offering” means an offering of Securities of a series from time to time, the
specific terms of which Securities, including, without limitation, the rate or rates of interest or
formula for determining the rate or rates of interest thereon, if any, the Stated Maturity or
Stated Maturities thereof, the original issue date or dates thereof, the redemption provisions, if
any, with respect thereto, and any other terms specified as contemplated by Section 301 with
respect thereto, are to be determined by the Company upon the issuance of such Securities.

     “Person” means any individual, corporation, partnership, joint venture, trust, unincorporated
organization or government or any agency or political subdivision thereof.

     “Place of Payment”, when used with respect to the Securities of any series, means, unless
otherwise specifically provided for with respect to such series as contemplated by Section 301, the
office or agency of the Company in                      and such other place or places where, subject to
the provisions of Section 1002, the principal of and any premium and interest on the Securities of
that series are payable as specified as contemplated by Section 301.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same Debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 306 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
Debt as the mutilated, destroyed, lost or stolen Security.

     “Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed
for such redemption by or pursuant to this Indenture.

     “Redemption Price”, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “Regular Record Date” for the interest payable on any Interest Payment Date on the Securities
of any series means the date specified for that purpose as contemplated by Section 301.

     “Securities” has the meaning stated in the first recital of this Indenture and more
particularly means any Securities authenticated and delivered under this Indenture.

     “Security Register” and “Security Registrar” have the respective meanings specified in
Section 305.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 307.

     “Stated Maturity”, when used with respect to the principal of any Security or any installment
of principal thereof or interest thereon, means the date specified in such Security as the fixed
date on which the principal of such Security or such installment of principal or interest is due
and payable.

-6-

 

     “Subsidiary” means, with respect to any Person, any entity of which more than 50% of the total
voting power of the equity interests entitled, without regard to the occurrence of any contingency,
to vote in the election of directors, managers or trustees thereof; or any partnership of which
more than 50% of the partners’ equity interests, considering all partners’ equity interests as a
single class, is at the time owned or controlled, directly or indirectly, by that Person or one or
more of the other Subsidiaries of that Person or combination thereof.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed, except as otherwise provided in Section 905; provided, however,
that if the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means, to
the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series shall mean each Trustee with respect to Securities of that series.

     “U.S. Government Obligations” means securities which are (i) direct obligations of the United
States for the payment of which its full faith and credit is pledged, or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality of the United States,
the payment of which is unconditionally guaranteed as a full faith and credit obligation by the
United States, each of which are not callable or redeemable at the option of the issuer thereof.

     “Vice President”, when used with respect to the Company, means any vice president of the
Company, or when used with respect to the Trustee, means any vice president of the Trustee.

Section 102. Compliance Certificates and Opinions

     Upon any application or request by the Company to the Trustee to take or refrain from taking
any action under any provision of this Indenture, the Company shall furnish to the Trustee an
Officers’ Certificate in form and substance reasonably satisfactory to the Trustee stating that, in
the opinion of the signers, all conditions precedent and covenants, if any, provided for in this
Indenture relating to the proposed action have been complied with, and an Opinion of Counsel in
form and substance reasonably satisfactory to the Trustee stating that, in the opinion of such
counsel, all such conditions precedent have been complied with. Each such certificate or opinion
shall be given in the form of an Officers’ Certificate, if to be given by officers of the Company,
or an Opinion of Counsel, if to be given by counsel, and shall comply with the requirements of the
Trust Indenture Act and any other requirements set forth in this Indenture.

     Every Officers’ Certificate or Opinion of Counsel (except for certificates provided for in
Section 1004) shall include:

          (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

-7-

 

          (2) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

          (3) a statement that, in the opinion of each such individual, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

          (4) a statement as to whether, in the opinion of each such individual, such condition or
covenant has been complied with.

Section 103. Form of Documents Delivered to Trustee

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon a certificate or opinion of, or representations by, counsel, unless such
officer knows, or in the exercise of reasonable care should know, that the certificate or opinion
or representations with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or representations by, an officer or officers of
the Company, stating that the information with respect to such factual matters is in the possession
of the Company, unless such counsel knows that the certificate or opinion or representations with
respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

Section 104. Acts of Holders; Record Dates

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed (either physically or by
means of a facsimile or an electronic transmission, provided that such electronic transmission is
transmitted through the facilities of a Depositary) by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered (either physically or by means of a
facsimile or an electronic transmission, provided that such electronic transmission is transmitted
through the facilities of a Depositary) to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing

-8-

 

any such agent shall be sufficient for any purpose of this Indenture and (subject to Section
315 of the Trust Indenture Act) conclusive in favor of the Trustee and the Company, if made in the
manner provided in this Section.

     Without limiting the generality of the foregoing, a Holder, including a Depositary that is a
Holder of a Global Security, may make, give or take, by a proxy or proxies, duly appointed in
writing, any request, demand, authorization, direction, notice, consent, waiver or other action
provided in this Indenture to be made, given or taken by Holders, and a Depositary that is a Holder
of a Global Security may provide its proxy or proxies to the beneficial owners of interests in any
such Global Security.

     The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

     The ownership, principal amount and serial numbers of Securities held by any Person, and the
date of commencement of such Person’s holding the same, shall be proved by the Security Register.

     Any request, demand, authorization, direction, notice, consent, waiver or other action of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

     Without limiting the foregoing, a Holder entitled hereunder to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the
principal amount of such Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of such principal amount.

     The Company may set any day as the record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give or take any request, demand, authorization,
direction, notice, consent, waiver or other action provided or permitted by this Indenture to be
given or taken by Holders of Securities of such series, but the Company shall have no obligation to
do so. With regard to any record date set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date (or their duly appointed agents), and only
such Persons, shall be entitled to give or take the relevant action, whether or not such Holders
remain Holders after such record date.

-9-

 

Section 105. Notices, Etc., to Trustee and the Company

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

          (1) the Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made in writing and actually received by the Trustee at its office at
                    , or at any other address previously furnished in writing by the Trustee, or

          (2) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class
postage prepaid, to the Company, addressed to it at 24 North Street, Pittsfield, Massachusetts,
01201, to the attention of the Corporate Secretary, or at any other address previously furnished in
writing to the Trustee by the Company.

Section 106. Notice to Holders; Waiver

     Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid (if international mail, by air mail), to each Holder affected by such
event, at his address as it appears in the Security Register, not later than the latest date (if
any), and not earlier than the earliest date (if any), prescribed for the giving of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor
any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Any notice mailed to a Holder in the manner herein
prescribed shall be conclusively deemed to have been received by such Holder, whether or not such
Holder actually receives such notice.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     In case of the suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be made with the
approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

Section 107. Conflict with Trust Indenture Act

     If any provision hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act that is required under such Act to be a part of and govern this Indenture, the latter provision
shall control. If any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or excluded, as the case may be.

-10-

 

Section 108. Effect of Headings and Table of Contents

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 109. Successors and Assigns

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 110. Separability Clause

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 111. Benefits of Indenture

     Nothing in this Indenture or in the Securities, express or implied, shall give to any Person,
other than the parties hereto and their successors hereunder, the holders of Senior Debt and the
Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.

Section 112. Governing Law

     This Indenture and the Securities shall be governed by and construed in accordance with the
law of the state of Delaware.

Section 113. Legal Holidays

     In any case where any Interest Payment Date, Redemption Date or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states that such provision shall apply in lieu of this Section)) payment
of interest or principal (and premium, if any) need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of Payment with the same
force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be.

Section 114. Language of Notices, Etc.

     Any request, demand, authorization, direction, notice, consent, waiver or Act required or
permitted under this Indenture shall be in the English language, except that any published notice
may be in an official language of the country of publication.

-11-

 

Section 115. Interest Limitation

     It is the intention of the Company to conform strictly to all applicable usury laws and any
subsequent revisions, repeals or judicial interpretations thereof. Accordingly, if the
transactions contemplated hereby would be usurious under any applicable law then, in that event,
notwithstanding anything to the contrary in the Securities or this Indenture, it is agreed as
follows: (i) the aggregate of all consideration which constitutes interest under applicable law
with respect to a Security shall under no circumstances exceed the maximum amount allowed by
applicable law, and any excess shall be credited to the principal amount of such Security (or, if
the principal amount of such Security shall have been paid in full, refunded to the Company), to
the extent permitted by applicable law; and (ii) in the event that the maturity of any Security is
accelerated or in the event of any redemption of such Security, then such consideration that
constitutes interest under applicable law may never include more than the maximum amount allowed by
applicable law, and any excess shall be credited to the principal amount of such Security (or, if
the principal amount of such Security shall be paid in full, refunded to the Company), to the
extent permitted by applicable law. All calculations made to compute the rate of interest with
respect to a Security for the purpose of determining whether such rate exceeds the maximum amount
allowed by applicable law shall be made, to the extent permitted by such applicable law, by
allocating and spreading during the period of the full stated term of such Security all interest
any time contracted for, taken, reserved, charged or received by such Holder or by the Trustee on
behalf of any such Holder in connection therewith so that the amount or rate of interest charged
for any and all periods of time during the term of the Security does not exceed the maximum amount
or rate of interest allowed to be charged by law during the relevant period of time.
Notwithstanding any of the foregoing, if at any time applicable laws shall be changed so as to
permit a higher rate or amount of interest to be charged than that permitted prior to such change,
then unless prohibited by law, references in this Indenture or any Security to “applicable law”
when used in the context of determining the maximum interest or rate of interest that can be
charged shall be deemed to refer to such applicable law as so amended to allow the greater amount
or rate of interest.

     The right to accelerate maturity of any Security does not include the right to accelerate any
interest which has not otherwise accrued to the date of such acceleration, provided, however, that
the foregoing shall not prohibit the continuing accrual after acceleration of interest in
accordance with the terms of the Indenture and such Security.

Section 116. No Personal Liability of Officers, Directors, Employees or Shareholders

     Obligations of the Company under this Indenture and the Securities hereunder are payable only
out of cash flow and assets of the Company. The Trustee, and each Holder of a Security by its
acceptance thereof, will be deemed to have agreed in this Indenture that no director, officer,
employee, or shareholder, as such, of the Company, the Trustee, or any Affiliate of any of the
foregoing entities shall have any personal liability in respect of the obligations of the Company
under this Indenture or such Securities by reason of his, her or its status. The agreements set
forth in this Section are part of the consideration for the issuance of the Securities.

-12-

 

Section 117. Applicability of Depositary

     Notwithstanding any other provision of this Indenture, so long as a series of Securities is a
Global Security, the parties hereto will be bound at all times by the applicable procedures of the
Depositary with respect to such series.

ARTICLE II

SECURITY FORMS

Section 201. Forms Generally

     The Securities of each series shall be in substantially the form set forth in this Article, or
in such other form as shall be established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with applicable laws or the rules of any securities exchange
or automated quotation system on which the Securities of such series may be listed or traded or of
any Depositary therefor or as may, consistently herewith, be determined by the officers executing
such Securities, as evidenced by their execution of the Securities. If the form of Securities of
any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate
record of such action shall be certified by an authorized officer or other authorized Person on
behalf of the Company and delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such Securities. Any form of
Security approved by or pursuant to a Board Resolution must be acceptable as to form by the
Trustee, such acceptance to be evidenced by the Trustee’s authentication of Securities in that
form.

     The Definitive Securities shall be printed, lithographed or engraved on steel engraved borders
or may be produced in any other manner, all as determined by the officers executing such
Securities, as evidenced by their execution of such Securities.

Section 202. Form of Face of Security

     [Insert any legend required by the United States Internal Revenue Code and the regulations
thereunder.]

     [If a Global Security, insert legend required by Section 204 of the Indenture]

     [If applicable, insert—UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE

-13-

 

DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

BERKSHIRE HILLS BANCORP, INC.

[TITLE OF SECURITY]

			
	 	 	 
	NO.
	 	U.S.$
	 	 	 
	[CUSIP No.          ]	 	 

     BERKSHIRE HILLS BANCORP, INC., a Delaware corporation (herein called the “Company”, which term
includes any successor Person under the Indenture hereinafter referred to), for value received,
hereby promises to pay to                     , or registered assigns, the principal sum of                     
United States Dollars [state other currency] on                      [if the Security is to bear interest
prior to Maturity, insert—, and to pay interest thereon from                     , or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
                     and                      in each year, commencing                     , at the rate of
                    % per annum, until the principal hereof is paid or made available for payment [if
applicable, insert—, and at the rate of                     % per annum on any overdue principal and
premium and on any overdue installment of interest]. [If applicable, insert — The amount of
interest payable for any period shall be computed on the basis of twelve 30-day months and a
360-day year. The amount of interest payable for any partial period shall be computed on the basis
of a 360-day year of twelve 30-day months and the days elapsed in any partial month. In the event
that any date on which interest is payable on this Security is not a Business Day, then a payment
of the interest payable on such date will be made on the next succeeding day which is a Business
Day (and without any interest or other payment in respect of any such delay) with the same force
and effect as if made on the date the payment was originally payable. A “Business Day” shall mean,
when used with respect to any Place of Payment, each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in that Place of Payment are authorized or
obligated by law, executive order or regulation to close.] The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be
the                      or                      (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided
for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice of which shall be given to Holders of Securities of
this series not less than 10 days prior to such Special Record Date, or be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange or automated
quotation system on which the Securities of this series may be listed or

-14-

 

traded, and upon such notice as may be required by such exchange or automated quotation
system, all as more fully provided in such Indenture].

     [If the Security is not to bear interest prior to Maturity, insert—The principal of this
Security shall not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue principal of this
Security shall bear interest at the rate of                     % per annum, which shall accrue from the
date of such default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any such interest on
any overdue principal that is not so paid on demand shall bear interest at the rate of
                    % per annum, which shall accrue from the date of such demand for payment to the date
payment of such interest has been made or duly provided for, and such interest shall also be
payable on demand.]

     [If a Global Security, insert—Payment of the principal of [(and premium, if any)] and [if
applicable, insert—any such] interest on this Security will be made by transfer of immediately
available funds to a bank account in                      designated by the Holder in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts [state other currency].]

     [If a Definitive Security, insert—Payment of the principal of [(and premium, if any)] and [if
applicable, insert—any such] interest on this Security will be made at the office or agency of the
Company maintained for that purpose in                     , [in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts] [state other currency] [or subject to any laws or regulations applicable thereto and to the
right of the Company (as provided in the Indenture) to rescind the designation of any such Paying
Agent, at the [main] offices of                      in                      and                      in
                    ,
or at such other offices or agencies as the Company may designate, by [United States Dollar] [state
other currency] check drawn on, or transfer to a [United States Dollar] account maintained by the
payee with, a bank in                      (so long as the applicable Paying Agent has received proper
transfer instructions in writing at least                      days prior to the payment date)] [if
applicable, insert—; provided, however, that payment of interest may be made at the option of the
Company by [United States Dollar] [state other currency] check mailed to the addresses of the
Persons entitled thereto as such addresses shall appear in the Security Register] [or by transfer
to a [United States Dollar] [state other currency] account maintained by the payee with a bank in
                     [state other Place of Payment] (so long as the applicable Paying Agent has received
proper transfer instructions in writing by the Record Date prior to the applicable Interest Payment
Date)].]

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

-15-

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 	 	 
	Dated:                                                       
	 	 	 	 	 	 
	 	 	BERKSHIRE HILLS BANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	Section 203.   Form of Reverse of Security
	 	 	 	 	 	 

     This Security is one of a duly authorized issue of securities of the Company (the
“Securities”), issued and to be issued in one or more series under an Indenture dated as of
                    , 2009 (the “Indenture”), between the Company and [                    ], as Trustee
(the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of the Company, the
Trustee, the Holders of the Senior Debt and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. As provided in the
Indenture, the Securities may be issued in one or more series, which different series may be issued
in various aggregate principal amounts, may mature at different times, may bear interest, if any,
at different rates, may be subject to different redemption provisions, if any, may be subject to
different sinking, purchase or analogous funds, if any, may be subject to different covenants and
Events of Default and may otherwise vary as in the Indenture provided or permitted. This Security
is one of the series designated on the face hereof [if applicable, insert—, limited in aggregate
principal amount to U.S.$                     ].

     [If applicable, insert—The Securities of this series are subject to redemption upon not less
than 30 nor more than 60 days’ notice by mail, [if applicable, insert—(1) on in any year
commencing with the year                      and ending with the year                      through operation of
the sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and
(2)] at any time [if applicable, insert—on or after                     ], as a whole or in part, at the
election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [if applicable, insert—on or before                     , ___%, and if
redeemed] during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 	 	 
	Year
	 	Redemption Price
	 	Year
	 	Redemption Price
	 	 	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption [if applicable, insert—(whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, but interest installments whose

-16-

 

Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the Indenture.]

     [If applicable, insert—The Securities of this series are subject to redemption upon not less
than 30 nor more than 60 days’ notice by mail, (1) on                      in any year commencing with the
year                      and ending with the year                      through operation of the sinking fund
for this series at the Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below, and (2) at any
time [if applicable, insert—on or after                     ], as a whole or in part, at the election of
the Company, at the Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in the table below: If
redeemed during the 12-month period beginning                      of the years indicated,

	 	 	 	 	 
	Year
	 	Redemption Price for

Redemption Through Operation

of the Sinking Fund
	 	Redemption Price for Redemption

Otherwise Than Through Operation of

the Sinking Fund
	 	 	 	 	 

and thereafter at a Redemption Price equal to ___% of the principal amount, together in the case
of any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.]

     [If applicable, insert—The sinking fund for this series provides for the redemption on
                     in each year beginning with the year                      and ending with the year
                     of [if applicable,—not less than $                     (“mandatory sinking fund”) and not
more than] $                     aggregate principal amount of Securities of this series. Securities of
this series acquired or redeemed by the Company otherwise than through [if applicable,—mandatory]
sinking fund payments may be credited against subsequent [if applicable,—mandatory] sinking fund
payments otherwise required to be made [if applicable,—in the inverse order in which they become
due].]

     [If the Security is subject to redemption in part of any kind, insert—In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.]

     [If applicable, insert—The Securities of this series are not redeemable prior to Stated
Maturity.]

-17-

 

     [If the Security is not an Original Issue Discount Security, insert—If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.]

     [If the Security is an Original Issue Discount Security, insert—If an Event of Default with
respect to Securities of this series shall occur and be continuing, an amount of principal of the
Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to—insert formula for determining the
amount. Upon payment (1) of the amount of principal so declared due and payable, and (2) of
interest on any overdue principal and overdue interest, all of the Company’s obligations in respect
of the payment of the principal of and interest, if any, on the Securities of this series shall
terminate.]

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of not less than the Holders of a majority in aggregate principal amount
of the Outstanding Securities of all series to be affected (voting as one class). The Indenture
also contains provisions permitting the Holders of a majority in aggregate principal amount of the
Outstanding Securities of all affected series (voting as one class), on behalf of the Holders of
all Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture. The Indenture permits, with certain exceptions as therein provided, the Holders of a
majority in principal amount of Securities of any series then Outstanding to waive past defaults
under the Indenture with respect to such series and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Security.

     As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
reasonable indemnity and the Trustee shall not have received from the Holders of a majority in
principal amount of Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or [any
premium or] interest hereon on or after the respective due dates expressed herein.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall, without the consent of the Holder, alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and [any premium and] interest on this

-18-

 

Security at the times, place(s) and rate, and in the coin or currency, herein prescribed,
except for Section 115 of the Indenture (which limits interest to the maximum amount permissible by
law), the provisions of which are incorporated herein by reference.

     [If a Global Security, insert—This Global Security or portion hereof may not be exchanged for
Definitive Securities of this series except in the limited circumstances provided in the Indenture.

     The holders of beneficial interests in this Global Security will not be entitled to receive
physical delivery of Definitive Securities except as described in the Indenture and will not be
considered the Holders thereof for any purpose under the Indenture.]

     [If a Definitive Security, insert—As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in [if applicable, insert — any place where the principal of and any premium and
interest on this Security are payable] [if applicable, insert—                      [, or, subject to any
laws or regulations applicable thereto and to the right of the Company (limited as provided in the
Indenture) to rescind the designation of any such transfer agent, at the [main] offices of
                     in                      and in                      or at such other offices or agencies as the
Company may designate]], duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.]

     The Securities of this series are issuable only in registered form without coupons in
denominations of U.S.$ [state other currency] and any integral multiple thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     This Security is subordinated in right of payment to Senior Debt, to the extent provided in
the Indenture.

     Obligations of the Company under the Indenture and the Securities thereunder, including this
Security, are payable only out of cash flow and assets of the Company. The Trustee, and each Holder
of a Security by its acceptance hereof, will be deemed to have agreed in the

-19-

 

Indenture that no director, officer, employee, or shareholder, as such, of the Company, the
Trustee, or any Affiliate of any of the foregoing entities shall have any personal liability in
respect of the obligations of the Company under the Indenture or such Securities by reason of his,
her or its status.

     The Indenture contains provisions that relieve the Company from the obligation to comply with
certain restrictive covenants in the Indenture and for satisfaction and discharge at any time of
the entire indebtedness upon compliance by the Company with certain conditions set forth in the
Indenture.

     This Security shall be governed by and construed in accordance with the laws of the state of
Delaware.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     [If a Definitive Security, insert as a separate page—

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
                     (Please Print or Typewrite Name and Address of Assignee) the within
instrument of BERKSHIRE HILLS BANCORP, INC., and does hereby irrevocably constitute and appoint
                     Attorney to transfer said instrument on the books of the within-named
Company, with full power of substitution in the premises.

Please Insert Social Security or

Other Identifying Number of Assignee:

			
	 	 	 
	Dated:                                                                                 
	 	                                                                                 (Signature)

Signature Guarantee:

(Participant in a Recognized Signature

Guaranty Medallion Program)

     NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without alteration or enlargement or any change
whatever.]

Section 204. Global Securities

     Every Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form:

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR
SECURITIES REGISTERED IN THE

-20-

 

NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH
TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER
OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY
SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

     If Securities of a series are issuable in whole or in part in the form of one or more Global
Securities, as contemplated by Section 301, then, notwithstanding Clause (9) of Section 301 and the
provisions of Section 302, any Global Security shall represent such of the Outstanding Securities
of such series as shall be specified therein and may provide that it shall represent the aggregate
amount of Outstanding Securities from time to time endorsed thereon and that the aggregate amount
of Outstanding Securities represented thereby may from time to time be reduced or increased, as the
case may be, to reflect exchanges. Any endorsement of a Global Security to reflect the amount, or
any reduction or increase in the amount, of Outstanding Securities represented thereby shall be
made in such manner and upon instructions given by such Person or Persons as shall be specified
therein or in a Company Order. Subject to the provisions of Sections 303, 304 and 305, the Trustee
shall deliver and redeliver any Global Security in the manner and upon instructions given by the
Person or Persons specified therein or in the applicable Company Order. Any instructions by the
Company with respect to endorsement or delivery or redelivery of a Global Security shall be in a
Company Order (which need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel).

     The provisions of the last sentence of Section 303 shall apply to any Security represented by
a Global Security if such Security was never issued and sold by the Company and the Company
delivers to the Trustee the Global Security together with a Company Order (which need not comply
with Section 102 and need not be accompanied by an Opinion of Counsel) with regard to the reduction
or increase, as the case may be, in the principal amount of Securities represented thereby,
together with the written statement contemplated by the last sentence of Section 303.

Section 205. Form of Trustee’s Certificate and Authorization

     The Trustee’s certificates of authentication shall be in substantially the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	[                                        ]

As Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

-21-

 

ARTICLE III

THE SECURITIES

Section 301. Amount Unlimited; Issuable in Series

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

     The Securities may be issued in one or more series. There shall be established in or pursuant
to a Board Resolution (and, subject to Section 303, to the extent established pursuant to rather
than set forth in a Board Resolution, in an Officers’ Certificate or Company Order setting forth,
or determining the manner of, such establishment) or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series,

          (1) the form and title of the Securities of the series (which shall distinguish the Securities
of the series from Securities of any other series);

          (2) any limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series
pursuant to Section 304, 305, 306, 906 or 1107 and except for any Securities which, pursuant to
Section 303, are deemed never to have been authenticated and delivered hereunder);

          (3) the Person to whom any interest on a Security of the series shall be payable, if other
than the Person in whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest;

          (4) the date or dates on which the Securities will be issued and on which the principal of,
and premium, if any, on the Securities of the series is payable or the method of determination
thereof;

          (5) the rate or rates (which may be fixed or variable) at which the Securities of the series
shall bear interest, if any, or the method of determination thereof, the date or dates from which
such interest shall accrue, or the method of determination thereof, the Interest Payment Dates on
which any such interest shall be payable and the Regular Record Date for any interest payable on
any Interest Payment Date;

          (6) the place or places where, subject to the provisions of Section 1002, the principal of and
any premium and interest on Securities of the series shall be payable, Securities of the series may
be surrendered for registration of transfer, Securities of the series may be surrendered for
exchange and notices, and demands to or upon the Company in respect of the Securities of the series
and this Indenture may be served;

          (7) the period or periods, if any, within which, the price or prices at which and the terms
and conditions upon which Securities of the series may be redeemed, in whole or in part, at the
option of the Company or otherwise, if the Company is to have that option;

-22-

 

          (8) the obligation, if any, and the option, if any, of the Company to redeem, purchase or
repay Securities of the series pursuant to any sinking fund or analogous provisions or upon the
happening of a specified event or at the option of a Holder thereof and the period or periods
within which, the price or prices at which and the terms and conditions upon which Securities of
the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such
obligation;

          (9) if other than denominations of $1,000 and any integral multiple thereof, the denominations
in which Securities of the series shall be issuable;

          (10) whether payment of principal of and premium, if any, and interest, if any, on the
Securities of the series shall be without deduction for taxes, assessments or governmental charges
paid by Holders of the series;

          (11) the currency, currencies or currency units in which payment of the principal of and any
premium and interest on any Securities of the series shall be denominated, payable, redeemable or
purchasable if other than the currency of the United States of America and the manner of
determining the equivalent thereof in the currency of the United States of America for purposes of
the definition of “Outstanding” in Section 101;

          (12) if the amount of payments of principal of or any premium or interest on any Securities of
the series may be determined with reference to an index, the manner in which such amounts shall be
determined;

          (13) if the principal of or any premium or interest on any Securities of the series is to be
payable, at the election of the Company or a Holder thereof, in one or more currencies or currency
units other than that or those in which the Securities are stated to be payable, the currency,
currencies or currency units in which payment of the principal of and any premium and interest on
Securities of such series as to which such election is made shall be payable, and the periods
within which and the terms and conditions upon which such election is to be made;

          (14) the right, if any, of the Company to defer payments of interest by extending the interest
payment periods and specify the duration of such extension, the Interest Payment Dates on which
such interest shall be payable and whether and under what circumstances additional interest on
amounts deferred shall be payable;

          (15) if other than the principal amount thereof, the portion of the principal amount of
Securities of the series which shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 502 or provable in bankruptcy pursuant to Section 504 or the method of
determination thereof;

          (16) if and as applicable, that the Securities of the series shall be issuable in whole or in
part in the form of one or more Global Securities (and whether in temporary or permanent global
form) and, in such case, the Depositary or Depositaries for such Global Security or Global
Securities and any circumstances other than those set forth in Section 305 in which any such Global
Security may be transferred to, and registered and exchanged for

-23-

 

Securities registered in the name of, a Person other than the Depositary for such Global
Security or a nominee thereof and in which any such transfer may be registered;

          (17) any deletions from, modifications of or additions to the Events of Default set forth in
Section 501 or the covenants of the Company set forth in Article X pertaining to the Securities of
the series;

          (18) if and the terms and conditions upon which any Securities of the series may be converted
into or exchanged for securities, which may include, without limitation, capital stock, of any
class or series of the Company or any other issuer;

          (19) if the amount of payments of principal of or any premium or interest on any Securities of
the series may be determined with reference to an index, including, but not limited to an index
based on a currency or currencies other than that in which the Securities of that series are
payable, or any other type of index, the manner in which such amounts shall be determined;

          (20) if other than as provided in Sections 1302 and 1303, the terms and conditions upon which
and the manner in which such series of Securities may be defeased or discharged;

          (21) if other than the Trustee, the identity of any other trustee, the Security Registrar and
any Paying Agent;

          (22) any restrictions or other provisions with respect to the transfer or exchange of the
Securities; and

          (23) any other terms of the Securities of the series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 901(3)).

     All Securities of any one series shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution or Officers’
Certificate referred to above or in any such indenture supplemental hereto.

     Any such Board Resolution or Officers’ Certificate referred to above with respect to
Securities of any series filed with the Trustee on or before the initial issuance of the Securities
of such series shall be incorporated herein by reference with respect to Securities of such series
and shall thereafter be deemed to be a part of the Indenture for all purposes relating to
Securities of such series as fully as if such Board Resolution or Officers’ Certificate were set
forth herein in full.

     All Securities of any one series need not be issued at the same time and, unless otherwise
provided, a series may be reopened, without the consent of the Holders, for increases in the
aggregate principal amount of such series of Securities and issuances of additional Securities of
such series or for the establishment of additional terms with respect to the Securities of such
series.

-24-

 

     If any of the terms of the series are established by action taken by or pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by an authorized
officer or other authorized person of the Company and delivered to the Trustee at or prior to the
delivery of the Officers’ Certificate setting forth, or providing the manner for determining, the
terms of the series.

     With respect to Securities of a series subject to a Periodic Offering, such Board Resolution
or Officers’ Certificate may provide general terms for Securities of such series and provide either
that the specific terms of particular Securities of such series shall be specified in a Company
Order, or that such terms shall be determined by the Company, or one or more of the Company’s
agents designated in an Officers’ Certificate, in accordance with a Company Order.

Section 302. Denominations

     The Securities of each series shall be issuable only in registered form without coupons in
such denominations as shall be specified as contemplated by Section 301. In the absence of any
such specified denomination with respect to the Securities of any series, the Securities of such
series shall be issuable in denominations of $1,000 and any integral multiple thereof.

Section 303. Execution, Authentication, Delivery and Dating

     The Securities shall be executed on behalf of the Company by the Chairman of the Board, Vice
Chairman, Chief Executive Officer, Chief Financial Officer, President or any Vice President of the
Company and need not be attested. The signature of any of these officers on the Securities may be
manual or facsimile.

     Securities bearing the manual or facsimile signatures of individuals who were at any time the
proper officers of the Company shall bind the Company, notwithstanding that such individuals or any
of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver
such Securities; provided, however, that in the case of Securities offered in a Periodic Offering,
the Trustee shall authenticate and deliver such Securities from time to time in accordance with
such other procedures (including, without limitation, the receipt by the Trustee of oral or
electronic instructions from the Company or its duly authorized agents, thereafter promptly
confirmed in writing) acceptable to the Trustee as may be specified by or pursuant to a Company
Order delivered to the Trustee prior to the time of the first authentication of Securities of such
series. If the form or terms of the Securities of the series have been established in or pursuant
to one or more Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, in addition to any Officers’ Certificate and
Opinion of Counsel required to be furnished to the Trustee pursuant to Section 102, and (subject to
Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating,

-25-

 

          (1) the form and terms (or the manner of determining the terms) of such Securities have been
established by or pursuant to Board Resolution as permitted by Section 201, that such form or forms
have been established in conformity with the provisions of this Indenture;

          (2) if the terms of such Securities have been, or in the case of Securities of a series
offered in a Periodic Offering, will be, established by or pursuant to a Board Resolution as
permitted by Section 301, that such terms have been, or in the case of Securities of a series
offered in a Periodic Offering, will be, established in conformity with the provisions of this
Indenture, subject, in the case of Securities of a series offered in a Periodic Offering, to any
conditions specified in such Opinion of Counsel (which conditions are reasonably acceptable to the
Trustee);

          (3) that such Securities, when authenticated and delivered by the Trustee and issued by the
Company in the manner and subject to any conditions specified in such Opinion of Counsel, which
conditions are reasonably acceptable to the Trustee, will constitute valid and legally binding
obligations of the Company enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors’ rights and to general equity principles and
entitled to the benefits of this Indenture, equally and ratably with all other Securities, if any,
of such series Outstanding; and

          (4) such other matters as the Trustee may reasonably request;

and, if the authentication and delivery relates to a new series of Securities created by an
indenture supplemental hereto, also stating that all conditions precedent to the execution of the
supplemental indenture with respect to that series of Securities have been complied with, the
Company has the power to execute and deliver any such supplemental indenture and has taken all
necessary action for those purposes and any such supplemental indenture has been executed and
delivered and constitutes the legal, valid and binding obligation of the Company enforceable in
accordance with its terms (subject, as to enforcement of remedies, to applicable bankruptcy,
reorganization, insolvency, fraudulent conveyance, moratorium or other laws and legal principles
affecting creditors’ rights generally from time to time in effect and to general equitable
principles, whether applied in an action at law or in equity).

     If such form or forms or terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding the provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 301 or the Company Order
and Opinion of Counsel or Board Resolution or supplemental indenture otherwise required pursuant to
such preceding paragraph at or prior to the time of authentication of each Security of such series
if such documents are delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.

-26-

 

     With respect to Securities of a series not to be originally issued at one time, the Trustee
may rely upon the Opinion of Counsel and the other documents delivered pursuant to Sections 201 and
301 and this Section, as applicable, in connection with the first authentication of Securities of
such series and any subsequent request by the Company to the Trustee to authenticate Securities of
such series upon original issuance shall constitute a representation and warranty by the Company
that as of the date of such request, the statements made in the Officers’ Certificate shall be true
and correct as if made on such date.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form provided for herein executed by the Trustee by manual signature of an authorized
signatory, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company, and the Company
shall deliver such Security to the Trustee for cancellation as provided in Section 309 for all
purposes of this Indenture, such Security shall be deemed never to have been authenticated and
delivered hereunder and shall never be entitled to the benefits of this Indenture.

Section 304. Temporary Securities

     Pending the preparation of Definitive Securities of any series, the Company may execute, and
upon receipt of the documents required by Section 303, together with a Company Order, the Trustee
shall authenticate and deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of
the Definitive Securities of like series in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers executing such Securities
may determine, as evidenced by their execution of such Securities.

     If temporary Securities of any series are issued, the Company will cause Definitive Securities
of that series to be prepared without unreasonable delay. After the preparation of Definitive
Securities of such series, the temporary Securities of such series shall be exchangeable for
Definitive Securities of such series upon surrender of the temporary Securities of such series at
the office or agency of the Company maintained pursuant to Section 1002 for the purpose of
exchanges of Securities of such series, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor one or more Definitive Securities
of the same series, of any authorized denominations and of a like aggregate principal amount and
tenor. Until so exchanged the temporary Securities of any series shall in all respects be entitled
to the same benefits under this Indenture as Definitive Securities of such series and tenor.

-27-

 

Section 305. Registration, Registration of Transfer and Exchange

     The Company shall cause to be kept at the Corporate Trust Office of the Trustee a register
(the register maintained in such office or in any other office or agency of the Company in a Place
of Payment being herein sometimes referred to as the “Security Register”) in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the registration of
Securities and of transfers of Securities. The Company shall, prior to the issuance of any
Securities hereunder, appoint the Trustee as the initial “Security Registrar” for the purpose of
registering Securities and transfers of Securities as herein provided. The Company may at any time
replace such Security Registrar, change such office or agency or act as its own Security Registrar.
The Company will give prompt written notice to the Trustee of any change of the Security Registrar
or of the location of such office or agency. At all reasonable times the Security Register shall
be available for inspection by the Trustee.

     Upon surrender for registration of transfer of any Security of any series at the office or
agency of the Company maintained pursuant to Section 1002 for such purpose, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series, of any authorized denominations and
of a like aggregate principal amount and tenor.

     At the option of the Holder, Securities of any series (except a Global Security) may be
exchanged for other Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the
exchange is entitled to receive.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

     Every Security presented or surrendered for registration of transfer or for exchange shall (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304 or 1107 not involving any transfer.

     Neither the Trustee nor the Company shall be required (1) to issue, register the transfer of
or exchange Securities of any series (or of any series and specified tenor, as the case may be)
during a period beginning at the opening of business 15 days before the day of mailing of a notice
of redemption of Securities of that series selected for redemption under Section 1103 and ending at
the close of business on the day of such mailing, or (2) to register the transfer of or

-28-

 

exchange any Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.

     Notwithstanding any other provision in this Indenture and except as otherwise specified as
contemplated by Section 301, no Global Security may be transferred to, or registered or exchanged
for Securities registered in the name of, any Person other than the Depositary for such Global
Security or any nominee thereof, and no such transfer may be registered, except as provided in this
paragraph. Every Security authenticated and delivered upon registration or transfer of, or in
exchange for or in lieu of, a Global Security shall be a Global Security, except as provided in
this paragraph. If (1) (A) the Depositary for a Global Security notifies the Company that it is
unwilling or unable to continue as Depositary for such Global Security or ceases to be a clearing
agency registered under the Exchange Act, and (B) a successor Depositary is not appointed by the
Company within 90 days, (2) an Event of Default has occurred and is continuing with respect to the
Securities of such series and the Security Registrar has received a request from the Depositary to
issue certificated securities in lieu of all or a portion of the Global Securities of such series
(in which case the Company shall deliver certificated securities within 30 days of such request) or
(3) the Company determines in its sole discretion that Securities of a series issued in global form
shall no longer be represented by a Global Security, then such Global Security may be exchanged by
such Depositary for Definitive Securities of the same series, of any authorized denomination and of
a like aggregate principal amount and tenor, registered in the names of, and the transfer of such
Global Security or portion thereof may be registered to, such Persons as such Depositary shall
direct.

Section 306. Mutilated, Destroyed, Lost and Stolen Securities

     If any mutilated Security is surrendered to the Trustee, together with such security or
indemnity as may be required by the Company or the Trustee to save each of them and any agent of
either of them harmless, the Company shall execute and upon its request the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series and of like tenor
and principal amount and bearing a number not contemporaneously Outstanding.

     If there shall be delivered to the Company and the Trustee (1) evidence to their satisfaction
of the destruction, loss or theft of any Security and (2) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security of the same series
and of like tenor and principal amount and bearing a number not contemporaneously Outstanding. If,
after the delivery of such new Security, a bona fide purchaser of the original Security in lieu of
which such new Security was issued presents for payment or registration such original Security, the
Trustee shall be entitled to recover such new Security from the party to whom it was delivered or
any party taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred
by the Company and the Trustee in connection therewith.

-29-

 

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

     Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith. Every new Security of any series issued pursuant to this Section in exchange for any
mutilated Security or in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the mutilated, destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all other Securities of
that series duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.

Section 307. Payment of Interest; Interest Rights Preserved

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the Regular Record Date for
such interest.

     Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having
been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose
names the Securities of such series (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of such series and the date of
the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this Clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such

-30-

 

Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Securities of such series at his address as it appears in the Security
Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the Securities of such series (or
their respective Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause (2).

          (2) The Company may make payment of any Defaulted Interest on the Securities of any series in
any other lawful manner not inconsistent with the requirements of any securities exchange or
automated quotation system on which such Securities may be listed or traded, and upon such notice
as may be required by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this Clause, such manner of payment shall be deemed practicable by the
Trustee.

     Subject to the foregoing provisions of this Section and Section 305, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security, shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

     For each series of Securities, the Company shall, prior to 10:30 a.m. (                     time) on
each payment date for principal and premium, if any, and interest, if any, deposit with the Trustee
money in immediately available funds sufficient to make cash payments due on the applicable payment
date.

Section 308. Persons Deemed Owners

     Except as otherwise provided as contemplated by Section 301 with respect to any series of
Securities, prior to due presentment of a Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of receiving payment of
principal of and any premium and (subject to Sections 305 and 307) any interest on such Security
and for all other purposes whatsoever, whether or not such Security is overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.

     No holder of any beneficial interest in any Global Security held on its behalf by a Depositary
shall have any rights under this Indenture with respect to such Global Security, and such
Depositary may be treated by the Company, the Trustee and any agent of the Company or the Trustee
as the owner of such Global Security for all purposes whatsoever. None of the Company, the Trustee
nor any agent of the Company or the Trustee will have any responsibility or liability for any
aspect of the records relating to or payments made on account of beneficial ownership interests of
a Global Security or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

-31-

 

Section 309. Cancellation

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the
Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of in
accordance with its customary procedures, and the Trustee shall thereafter, from time to time upon
written request, deliver to the Company a certificate with respect to such disposition.

Section 310. Computation of Interest

     Except as otherwise specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months and interest on the Securities of each series for any partial period shall be
computed on the basis of a 360-day year of twelve 30-day months and the number of days elapsed in
any partial month.

Section 311. CUSIP Numbers

     The Company in issuing the Securities may use “CUSIP” numbers (in addition to the other
identification numbers printed on the Securities), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided, however, that any such
notice may state that no representation is made as to the correctness of such “CUSIP” numbers
either as printed on the Securities or as contained in any notice of a redemption and that reliance
may be placed only on the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such “CUSIP” numbers. The Company
will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE IV

SATISFACTION AND DISCHARGE

Section 401. Satisfaction and Discharge of Indenture

     This Indenture shall upon Company Request cease to be of further effect with respect to
Securities of any series (except as to any surviving rights of registration of transfer or exchange
of such Securities herein expressly provided for), and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with
respect to such Securities, when

          (1) either

-32-

 

               (A) all such Securities theretofore authenticated and delivered (other than (i) such
Securities which have been destroyed, lost or stolen and which have been replaced or paid as
provided in Section 306, and (ii) such Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in Section 1003) have been delivered to the
Trustee for cancellation; or

               (B) all such Securities not theretofore delivered to the Trustee for cancellation

                    (i) have become due and payable,

                    (ii) will become due and payable at their Stated Maturity within one year, or

                    (iii) are to be called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company,

and the Company in the case of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust for this purpose an amount of money in the
currency or currency units in which such Securities are payable sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation,
for principal and any premium and interest to the date of such deposit (in the case of Securities
which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may
be;

          (2) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to such Securities; and

          (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture with respect to such Securities have been complied
with.

     Notwithstanding the satisfaction and discharge of this Indenture with respect to Securities of
any series, (i) the obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and the right of the Trustee to resign
under Section 610 shall survive, and (ii) if money shall have been deposited with the Trustee
pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Company and/or the
Trustee under Sections 402, 606, 701 and 1002 and the last paragraph of Section 1003 shall survive.

Section 402. Application of Trust Money

     Subject to the provisions of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any

-33-

 

Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee.

ARTICLE V

REMEDIES

Section 501. Events of Default

     “Event of Default”, wherever used herein with respect to Securities of any series, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

          (1) default in the payment of any interest upon any Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days (whether or not such
payment is prohibited by the provisions of Article XIV hereof); or

          (2) default in the payment of the principal of (or premium, if any, on) any Security of that
series at its Maturity (whether or not such payment is prohibited by the provisions of Article XIV
hereof); or

          (3) default in the performance, or breach, of any term, covenant or warranty of the Company in
this Indenture (other than a term, covenant or warranty a default in whose performance or whose
breach is elsewhere in this Section specifically dealt with or which has expressly been included in
this Indenture solely for the benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by
Holders of at least 25% in principal amount of the Outstanding Securities of that series a written
notice specifying such default or breach and requiring it to be remedied and stating that such
notice is a “Notice of Default” hereunder; or

          (4) the Company pursuant to or within the meaning of any Bankruptcy Law (A) commences a
voluntary case, (B) consents to the entry of any order for relief against it in an involuntary
case, (C) consents to the appointment of a Custodian of it or for all or substantially all of its
property, or (D) makes a general assignment for the benefit of its creditors; or

          (5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(A) is for relief against the Company in an involuntary case, (B) appoints a Custodian of the
Company or for all or substantially all of its property, or (C) orders the liquidation of the
Company; and the order or decree remains unstayed and in effect for 90 days; or

          (6) any other Event of Default provided as contemplated by Section 301 with respect to
Securities of that series.

-34-

 

Section 502. Acceleration of Maturity; Rescission and Annulment

     If an Event of Default with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal amount of (or, if any
of the Securities of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) all of the Securities
of that series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.

     At any time after such a declaration of acceleration with respect to Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if

          (1) the Company has paid or deposited with the Trustee a sum sufficient to pay

               (A) all overdue interest on all Securities of that series,

               (B) the principal of (and premium, if any, on) any Securities of that series which have become
due otherwise than by such declaration of acceleration and any interest thereon at the rate or
rates prescribed therefor in such Securities,

               (C) to the extent that payment of such interest is lawful, interest upon overdue interest at
the rate or rates prescribed therefor in such Securities, and

               (D) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel;

and

          (2) all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 513.

     No such rescission shall affect any subsequent Default or impair any right consequent thereon.

Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee

     The Company covenants that if

-35-

 

          (1) default is made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days (whether or not such payment is
prohibited by the provisions of Article XIV hereof), or

          (2) default is made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof (whether or not such payment is prohibited by the provisions of Article XIV
hereof),

the Company will, upon demand of the Trustee, pay to it, for the benefit of Holders of such
Securities, the whole amount then due and payable on such Securities for principal and any premium
and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

     If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company, or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company, or any other obligor upon such Securities, wherever situated.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

Section 504. Trustee May File Proofs of Claim

     In case of any judicial proceeding relative to the Company, or any other obligor upon the
Securities, their property or their creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys 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 Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,

-36-

 

adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of Holders, vote for the election of a trustee
in bankruptcy or similar official and be a member of a creditors’ or other similar committee.

Section 505. Trustee May Enforce Claims Without Possession of Securities

     All rights of action and claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the production thereof
in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of Holders of the Securities in
respect of which such judgment has been recovered.

Section 506. Application of Money Collected

     Any money or property collected or to be applied by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money or property on account of principal or any premium or interest, upon
presentation of the Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 607;

     SECOND: Subject to Article XIV, to the payment of the amounts then due and unpaid for
principal of and any premium and interest on the Securities in respect of which or for the benefit
of which such money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal and any premium and
interest, respectively; and

     THIRD: The balance, if any, to the Company.

Section 507. Limitation on Suits

     No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture or a Security, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless

          (1) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities of that series;

          (2) Holders of not less than 25% in principal amount of the Outstanding Securities of that
series shall have made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

-37-

 

          (3) such Holder or Holders have offered and, if requested, provided to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities to be incurred in compliance with
such request;

          (4) the Trustee for 60 days after its receipt of such notice, request and offer and, if
requested, provision of security or indemnity has failed to institute any such proceeding; and

          (5) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by Holders of a majority in principal amount of the Outstanding Securities of
that series;

it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such Holders.

Section 508. Unconditional Right of Holders to Receive Principal, Premium and Interest

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Sections 305 and 307) interest on such Security on the respective Stated
Maturity expressed in such Security (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such rights shall not be impaired
without the consent of such Holder.

Section 509. Restoration of Rights and Remedies

     If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has
been determined adversely to the Trustee or to such Holder, then in every such case, subject to any
determination in such proceeding, the Company, the Trustee and Holders shall be restored severally
and respectively to their former positions hereunder, and thereafter all rights and remedies of the
Trustee and Holders shall continue as though no such proceeding had been instituted.

Section 510. Rights and Remedies Cumulative

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no right or remedy
herein conferred upon or reserved to the Trustee or to Holders is intended to be exclusive of any
other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

-38-

 

Section 511. Delay or Omission Not Waiver

     No delay or omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

Section 512. Control by Holders

     Subject to the provisions of Section 603, Holders of a majority in aggregate principal amount
of the Outstanding Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee, with respect to the Securities of such series; provided,
however, that

          (1) such direction shall not be in conflict with any rule of law or with this Indenture;

          (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction; and

          (3) subject to the provisions of Section 601, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall determine that the proceeding so
directed would involve the Trustee in personal liability or would otherwise be contrary to
applicable law.

Section 513. Waiver of Past Defaults

     Holders of a majority in aggregate principal amount of the Outstanding Securities of any
series may on behalf of Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except

          (1) a continuing default in the payment of the principal of or any premium or interest on any
Security of such series, or

          (2) a default in respect of a covenant or provision hereof which under Article IX cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such series
affected.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

-39-

 

Section 514. Undertaking for Costs

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section nor the Trust Indenture Act shall be
deemed to authorize any court to require such an undertaking or to make such an assessment in any
suit instituted by the Trustee, in any suit instituted by any Holder, or group of Holders, holding
in the aggregate more than 10% in principal amount of the Outstanding Securities of any series to
which the suit relates, or in any suit instituted by any Holder for the enforcement of the payment
of the principal of (or premium, if any) or interest on any Security on or after the respective
Stated Maturity expressed by such Security (or, in the case of redemption or repayment, on or after
the Redemption Date).

ARTICLE VI

THE TRUSTEE

Section 601. Certain Duties and Responsibilities

          (a) Except during the continuance of an Event of Default with respect to any series of
Securities,

          (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture with respect to the Securities of such series, and
no implied covenants or obligations shall read into this Indenture against the Trustee; and

          (2) in the absence of bad faith on its part, the Trustee may, with respect to
Securities of such series, conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to
the Trustee conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform on their face to the requirements of this Indenture.

          (b) In case an Event of Default with respect to any series of Securities has occurred and is
continuing, the Trustee shall exercise with respect to the Securities of such series such rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent Person would exercise or use under the circumstances in the conduct of such
person’s own affairs.

          (c) No provisions of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

-40-

 

          (1) this Subsection shall not be construed to limit the effect of Subsection (a) of
this Section;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a
responsible officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

          (3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders or a majority in
principal amount of the Outstanding Securities of any series relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture with respect
to the Securities of such series; and

          (4) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

          (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

Section 602. Notice of Defaults

     If a Default occurs and is continuing with respect to the Securities of any series, the
Trustee shall, within 90 days after it occurs, transmit, in the manner and to the extent provided
in Section 313(c) of the Trust Indenture Act, notice of all uncured or unwaived Defaults known to
it; provided, however, that, except in the case of a Default in payment on the Securities of any
series, the Trustee shall be protected in withholding the notice if and so long as the board of
directors, the executive committee or a trust committee of directors or responsible officers of the
Trustee determine in good faith that withholding such notice is in the interests of Holders of
Securities of such series; provided, further, however, that, in the case of any default or breach
of the character specified in Section 501(3) with respect to the Securities of such series, no such
notice to Holders shall be given until at least 90 days after the occurrence thereof.

     The Trustee shall not be deemed to have notice or be charged with knowledge of any Default,
except a Default under Sections 501(1) or 501(2) herein, unless the Trustee shall have received
from the Company or from any Holder written notice thereof at its Corporate Trust Office, and such
notice references the Securities in this Indenture. In the absence of any such notice, the Trustee
may conclusively assume that no such Default exists.

Section 603. Certain Rights of Trustee

     Subject to the provisions of Section 601:

-41-

 

          (1) the Trustee may rely on and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

          (2) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order (or in the case of a Periodic
Offering, as agreed in procedures set forth in a Company Order pursuant to Section 303) and any
resolution of the Board of Directors shall be sufficiently evidenced by a Board Resolution;

          (3) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate;

          (4) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;

          (5) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to it
against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction;

          (6) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may, without obligation to do so, make such further inquiry or
investigation into such facts or matters as it may see fit; and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney;

          (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder; and

          (8) the Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any Person
authorized to sign an Officers’ Certificate, including any Person specified as so authorized in any
such certificate previously delivered and not superseded.

-42-

 

          (9) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

Section 604. Not Responsible for Recitals or Issuance of Securities

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee or any
Authenticating Agent assumes no responsibility for their correctness. Neither the Trustee nor any
Authenticating Agent makes any representations as to the validity or sufficiency of this Indenture
or of the Securities. Neither the Trustee nor any Authenticating Agent shall be accountable for
the use or application by the Company of Securities or the proceeds thereof.

Section 605. May Hold Securities

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with the Company with the same
rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar
or such other agent.

Section 606. Money Held in Trust

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

Section 607. Compensation and Reimbursement

     The Company agrees:

          (1) to pay to the Trustee from time to time such compensation for all services rendered by it
hereunder as shall be mutually agreed upon by the Company and the Trustee in writing (which
compensation shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

          (2) to reimburse the Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be attributable to its negligence
or bad faith; and

          (3) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or
expense incurred without gross negligence or bad faith on its part, arising out of or in connection
with the acceptance or administration of the trust or trusts hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.

-43-

 

     The obligations of the Company under this Section to compensate the Trustee and to pay or
reimburse the Trustee for expenses, disbursements and advances shall constitute additional
indebtedness hereunder.

     Without limiting any rights available to the Trustee under applicable law, when the Trustee
incurs expenses or renders services in connection with an Event of Default specified in Section
501(4) or Section 501(5), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for such services are intended to constitute expenses of
administration under any applicable Bankruptcy Law.

     The provisions of this Section shall survive the satisfaction and discharge of this Indenture
and the defeasance of the Securities.

Section 608. Disqualification; Conflicting Interests

     If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

Section 609. Corporate Trustee Required; Eligibility

     There shall at all times be one or more Trustees hereunder with respect to the Securities of
each series, at least one of which shall be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus required by the Trust Indenture
Act. If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of a supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Person shall be deemed to be its combined capital and surplus
as set forth in its most recent report of condition so published. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article.

Section 610. Resignation and Removal; Appointment of Successor

     No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to
this Article shall become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.

     The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 611 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Securities of such
series.

     The Trustee may be removed at any time with respect to the Securities of any series by Act of
the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company. If an instrument of acceptance by a successor Trustee
shall not have been delivered to the Trustee within 30 days after the giving of such

-44-

 

notice of removal, the removed Trustee may petition any court of competent jurisdiction for
the appointment of a successor Trustee.

     If at any time:

          (1) the Trustee shall fail to comply with Section 608 after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

          (2) the Trustee shall cease to be eligible under Section 609 and shall fail to resign after
written request therefor by the Company or by any such Holder, or

          (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent
or a receiver of the Trustee or of its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then, in any such case, (A) the Company, acting pursuant to the
authority of a Board Resolution, may remove the Trustee with respect to all Securities, or (B)
subject to Section 514, any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities and the appointment of a
successor Trustee or Trustees.

     If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of one or more series,
the Company, by a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of such series and
that at any time there shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 611. If, within one year
after such resignation, removal or incapability, or the occurrence of such vacancy, a successor
Trustee with respect to the Securities of any series shall be appointed by Act of Holders of a
majority in principal amount of the Outstanding Securities of such series delivered to the Company
and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section 611, become the
successor Trustee with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities
of any series shall have been so appointed by the Company or Holders and accepted appointment in
the manner required by Section 611, any Holder who has been a bona fide Holder of a Security of
such series for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

     The Company shall give notice of each resignation and each removal of the Trustee with respect
to the Securities of any series and each appointment of a successor Trustee with respect to the
Securities of any series to all Holders of Securities of such series in the manner provided in
Section 106. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

-45-

 

Section 611. Acceptance of Appointment by Successor

          (1) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder.

          (2) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee
with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (A)
shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to
vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (B) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm that all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee, and (C) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one
Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute
such Trustees as co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any
other such Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates, but,
on request of the Company, or any successor Trustee, such retiring Trustee shall, upon payment of
its charges, duly assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.

          (3) Upon request of any such successor Trustee, the Company shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (1) or (2) of this Section, as the case may
be.

          (4) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

-46-

 

Section 612. Merger, Conversion, Consolidation or Succession to Business

     Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the parties hereto. In
case any Securities shall have been authenticated, but not delivered, by the Trustee then in
office, any successor by merger, conversion or consolidation to such authenticating Trustee may
adopt such authentication and deliver the Securities so authenticated with the same effect as if
such successor Trustee had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against the Company

     If and when the Trustee shall be or become a creditor of the Company, or any other obligor
upon the Securities, the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company or any such other obligor.

Section 614. Appointment of Authenticating Agent

     The Trustee (upon notice to the Company) may appoint an Authenticating Agent or Agents with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon original issue (in accordance with
procedures acceptable to the Trustee) and upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any State thereof or the District of Columbia, authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by Federal or State authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to the requirements of
said supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section.

     Any corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any corporation succeeding

-47-

 

to all or substantially all of the corporate agency or corporate trust business of such
Authenticating Agent, shall continue to be an Authenticating Agent, provided such corporation
shall be otherwise eligible under this Section, without the execution or filing of any paper or any
further act on the part of the Trustee or such Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such Authenticating
Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the
rights, powers and duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible
under the provisions of this Section.

     Except with respect to an Authenticating Agent appointed at the request of the Company, the
Trustee agrees to pay to each Authenticating Agent from time to time reasonable compensation for
its services under this Section.

     If an appointment with respect to one or more series is made pursuant to this Section, the
Securities of such series may have endorsed thereon, in addition to the Trustee’s certificate of
authentication, an alternative certificate of authentication in the following form:

     This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	[                                        ]	 	 
	 	 	As Trustee	 	 
	 
	 	 	 	 	 	 
	Date:                                                             

	 	By:	 	 	 	 
	 

	 	 	 	 

As Authenticating Agent
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 	 	 

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND THE COMPANY

Section 701. The Company to Furnish Trustee Names and Addresses of Holders

     The Company will furnish or cause to be furnished to the Trustee

-48-

 

          (1) semi-annually, not later than each Interest Payment Date in each year, a list for each
series of Securities, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities of such series as of the preceding Regular Record Date, and

          (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;

provided, however, that if and so long as the Trustee shall be the Security Registrar for
Securities of a series, no such list need be furnished with respect to such series of Securities.

Section 702. Preservation of Information; Communications to Holders

     The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of the
Trust Indenture Act.

     The rights of the Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and privileges of the Trustee,
shall be as provided by the Trust Indenture Act.

     Every Holder of Securities, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to the names and addresses of Holders
made pursuant to the Trust Indenture Act.

Section 703. Reports by Trustee

     As promptly as practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to July 15 in each year, the Trustee shall mail to each
Holder a brief report dated as of May 15 that complies with Trust Indenture Act Section 313(a). The
Trustee also shall comply with Trust Indenture Act Section 313(b). Prior to delivery to the
Holders, the Trustee shall deliver to the Company a copy of any report it delivers to Holders
pursuant to this Section 703; provided, however, that no recourse may be taken against the Trustee
for its failure to deliver a copy of such report to the Company prior to its delivery of the report
to the Holders.

     A copy of each such report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the Commission and with
the Company. The Company will notify the Trustee when any Securities are listed on any stock
exchange.

Section 704. Reports by the Company

     The Company shall file with the Trustee and the Commission, and transmit to Holders, in
accordance with rules and regulations prescribed from time to time by the Commission, such
information, documents and reports with respect to compliance by the Company with the

-49-

 

conditions and covenants of this Indenture as may be required from time to time by such rules
and regulations.

ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801. The Company May Consolidate, Etc., Only on Certain Terms

     The Company shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to, any Person, unless:

          (1) the Person formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance or transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a corporation, partnership or trust, shall be organized and
validly existing under the laws of the United States of America, any State thereof or the District
of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal
of and any premium and interest on all the Securities and the performance or observance of every
other covenant of this Indenture on the part of the Company to be performed or observed;

          (2) immediately after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company or a Subsidiary as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such transaction, no Event of Default,
and no event which, after notice or lapse of time or both, would become an Event of Default, shall
have happened and be continuing;

          (3) if, as a result of any such consolidation or merger or such conveyance, transfer or lease,
properties or assets of the Company would become subject to a mortgage, pledge, lien, security
interest or other encumbrance which would not be permitted by this Indenture, the Company or such
successor Person, as the case may be, shall take such steps as shall be necessary effectively to
secure the Securities equally and ratably with (or prior to) all indebtedness secured thereby; and

          (4) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and such
supplemental indenture comply with this Article and that all conditions precedent herein provided
for relating to such transaction have been complied with.

Section 802. Successor Substituted

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been

-50-

 

named as the Company herein and thereafter, except in the case of a lease, the predecessor
Person shall be relieved of all obligations and covenants under this Indenture and the Securities
and coupons and may liquidate and dissolve.

ARTICLE IX

SUPPLEMENTAL INDENTURES

Section 901. Supplemental Indentures Without Consent of Holders

     Without the consent of any Holders of Securities, the Company and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes:

          (1) to evidence the succession of another Person to the Company under this Indenture and the
Securities and the assumption by such successor Person of the obligations of the Company hereunder;

          (2) to add covenants and Events of Default for the benefit of the Holders of all or any series
of such Securities or to surrender any right or power conferred by this Indenture upon the Company
or to make any change that does not adversely affect the legal rights hereunder of any Holder in
any material respect;

          (3) to add to, change or eliminate any of the provisions of this Indenture, provided that any
such addition, change or elimination shall become effective only after there are no such Securities
of any series entitled to the benefit of such provision outstanding;

          (4) to establish the forms or terms of the Securities of any series issued hereunder;

          (5) to cure any ambiguity or correct any defect or inconsistency in this Indenture;

          (6) to evidence the acceptance of appointment by a successor Trustee with respect to one or
more series of Securities or otherwise;

          (7) to qualify this Indenture under the Trust Indenture Act;

          (8) to provide for uncertificated securities in addition to certificated securities;

          (9) to supplement any provisions of this Indenture necessary to permit or facilitate the
defeasance and discharge of any series of Securities, provided that such action does not adversely
affect the interests of the Holders of Securities of such series or any other series; and

          (10) to comply with the rules or regulations of any securities exchange or automated quotation
system on which any of the Securities may be listed or traded.

-51-

 

Section 902. Supplemental Indentures with Consent of Holders

     With the consent of the Holders of not less than a majority in aggregate principal amount of
all Outstanding Securities affected by such supplemental indenture (voting as one class), the
Company and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture, or modifying in any manner the rights of Holders of Securities of such series
under this Indenture; provided that the Company and the Trustee may not, without the consent of the
Holder of each Outstanding Security affected thereby,

          (1) change the Stated Maturity of the principal of, or any installment of principal of or
interest, if any, on, any Security, or reduce the principal amount thereof or premium, if any, on
or the rate of interest thereon or adversely affect any right to convert or exchange any Security
into any other security, or alter the method of computation of interest;

          (2) reduce the percentage in principal amount of Securities required for any such supplemental
indenture or for any waiver provided for in this Indenture;

          (3) change the Company’s obligation to maintain an office or agency for payment of Securities
and the other matters specified herein;

          (4) impair the right to institute suit for the enforcement of any payment of principal of,
premium, if any, or interest on, any Security;

          (5) modify the provisions of this Indenture with respect to the subordination of any Security
in a manner adverse to the Holder thereof; or

          (6) modify any of the provisions of this Indenture relating to the execution of supplemental
indentures with the consent of Holders of Securities which are discussed in this Section or modify
any provisions relating to the waiver by Holders of Securities of past defaults and covenants,
except to increase any required percentage or to provide that other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each Outstanding Security
affected thereby.

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which has expressly been included solely for the benefit of one or more particular series
of Securities, or which modifies the rights of the Holders of Securities of such series with
respect to such covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve
the substance thereof.

Section 903. Execution of Supplemental Indentures

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the

-52-

 

Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee shall enter into
any supplemental indenture which does not adversely affect the Trustee’s own rights, duties or
immunities under this Indenture or otherwise. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which adversely affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

Section 905. Conformity with Trust Indenture Act

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

Section 906. Reference in Securities to Supplemental Indentures

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series. Failure to make a notation or issue a new Security shall not affect the validity
and effect of any amendment, supplement or waiver.

ARTICLE X

COVENANTS

Section 1001. Payment of Principal, Premium and Interest

     The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of and any premium and interest on the Securities of that
series in accordance with the terms of the Securities and this Indenture.

Section 1002. Maintenance of Office or Agency

     The Company will maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the

-53-

 

location, and any change in the location, of such office or agency. If at any time the
Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee
as its agent to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes. The Company will
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other office or agency.

     Except as otherwise specified with respect to a series of Securities as contemplated by
Section 301, the Company hereby initially designates as the Place of Payment for each series of
Securities to be the Corporate Trust Office of the Trustee, and initially appoints the Trustee as
Paying Agent at its office at                     , as the Company’s office or agency for each
such purpose in such city.

Section 1003. Money for Securities Payments to Be Held in Trust

     If the Company or any of its Subsidiaries shall at any time act as Paying Agent with respect
to any series of Securities, it will, on or before each due date of the principal of or any premium
or interest on any of the Securities of that series, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal and any premium and interest so
becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, on or prior to each due date of the principal of or any premium or interest on any Securities
of that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be
held as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent will (1) hold all sums
held by it for the payment of the principal of (and premium, if any) or interest, if any, on
Securities of that series in trust for the benefit of the Persons entitled thereto until such sums
shall be paid to such Persons or otherwise disposed of as herein provided; (2) give the Trustee
notice of any default by the Company (or any other obligor upon the Securities of that series) in
the making of any payment of principal (and premium, if any) or interest, if any, on the Securities
of that series; and (3) during the continuance of any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

-54-

 

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent in trust for the payment of the
principal of or any premium or interest on any Security of any series and remaining unclaimed for
two years after such principal, premium or interest has become due and payable shall be paid to the
state which escheat laws control and the Trustee or any Paying Agent shall be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look
only to the state which escheat laws control for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before
being required to make any such payment, may at the expense of the Company cause to be published
once, in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be paid to the state whose escheat laws
control.

Section 1004. Statement by Officers as to Default

     The Company will deliver to the Trustee, within 150 days after the end of each Fiscal Year of
the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the
best knowledge of the signer or signers thereof the Company is in default in the performance and
observance of any of the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company shall be in
default, specifying all such defaults and the nature and status thereof of which they may have
knowledge.

Section 1005. Waiver of Certain Covenants

     The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Sections 1002 through 1004 with respect to the Securities of any series if
before the time for such compliance Holders of at least a majority in aggregate principal amount of
the Outstanding Securities of all affected series (voting as one class) shall, by Act of such
Holders, either waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such term, provision or
condition except to the extent so expressly waived, and, until such waiver shall become effective,
the obligations of the Company and the duties of the Trustee in respect of any such term, provision
or condition shall remain in full force and effect.

     A waiver which changes or eliminates any term, provision or condition of this Indenture which
has expressly been included solely for the benefit of one or more particular series of Securities,
or which modifies the rights of the Holders of Securities of such series with respect to

-55-

 

such term, provision or condition, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

ARTICLE XI

REDEMPTION OF SECURITIES

Section 1101. Applicability of Article

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 301
for Securities of any series) in accordance with this Article.

Section 1102. Election to Redeem; Notice to Trustee

     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution.
In case of any redemption at the election of the Company of less than all the Securities of any
series, the Company shall, not less than 35 nor more than 60 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date, of the principal amount of Securities of such series to be
redeemed and, if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities (1) prior to the expiration of any restriction on such redemption provided
in the terms of such Securities or elsewhere in this Indenture, or (2) pursuant to an election of
the Company which is subject to a condition specified in the terms of such Securities, the Company
shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such restriction
or condition.

Section 1103. Selection by Trustee of Securities to be Redeemed

     If less than all the Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed), the particular Securities to be redeemed
shall be selected not more than 35 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities of such series not previously called for redemption, on a pro rata basis or
by any other method which the Trustee deems fair and appropriate and which complies with any
securities exchange or other applicable requirements for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than the minimum
authorized denomination for Securities of that series.

     The Trustee shall promptly notify the Company in writing of the Securities selected for
redemption and, in the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

-56-

 

Section 1104. Notice of Redemption

     Notice of redemption shall be given by first-class mail (if international mail, by air mail),
postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at his address appearing in the Security Register.

     All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

          (3) if less than all the Outstanding Securities of any series and of a specified tenor are to
be redeemed, the identification (and, in the case of partial redemption of any Securities, the
principal amounts) of the particular Securities to be redeemed,

          (4) that on the Redemption Date the Redemption Price will become due and payable upon each
such Security to be redeemed and that interest thereon will cease to accrue on and after said date,

          (5) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, and

          (6) that the redemption is for a sinking fund, if such is the case.

     Notice of redemption of Securities to be redeemed shall be given by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company.

Section 1105. Deposit of Redemption Price

     On or prior to 10:30 a.m. (Eastern Daylight Savings time) on any Redemption Date, the Company
shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, all the Securities which are to be redeemed on that date.

Section 1106. Securities Payable on Redemption Date

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that, unless otherwise specified as contemplated by Section 301, installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities,

-57-

 

registered as such at the close of business on the relevant Record Dates according to their
terms and the provisions of Section 307.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

Section 1107. Securities Redeemed in Part

     Any Security which is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new
Security or Securities of the same series and of like tenor, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.

ARTICLE XII

SINKING FUNDS

Section 1201. Applicability of Article

     The provisions of this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 301 for Securities
of such series.

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of any series is herein referred to as
an “optional sinking fund payment.” If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided in Section 1202.
Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

Section 1202. Satisfaction of Sinking Fund Payments with Securities

     The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption), and (2) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through

-58-

 

operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

Section 1203. Redemption of Securities for Sinking Fund

     Not less than 45 days prior to each sinking fund payment date for any series of Securities
(unless a shorter period shall be satisfactory to the Trustee), the Company will deliver to the
Trustee an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any, which is to be
satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of that series pursuant to Section 1202 and stating the basis
for such credit and that such Securities have not been previously so credited, and will also
deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1106 and 1107.

ARTICLE XIII

DEFEASANCE

Section 1301. Applicability of Article

     The provisions of this Article shall be applicable to each series of Securities except as
otherwise specified as contemplated by Section 301 for Securities of such series.

Section 1302. Legal Defeasance

     In addition to discharge of the Indenture pursuant to Section 401, the Company shall be deemed
to have paid and discharged the entire indebtedness on all the Securities of such a series on the
91st day after the date of the deposit referred to in Clause (1) below, and the provisions of this
Indenture with respect to the Securities of such series shall no longer be in effect (except as to
(i) rights of registration of transfer and exchange of Securities of such series and the Company’s
right of optional redemption, if any, (ii) substitution of mutilated, destroyed, lost or stolen
Securities, (iii) rights of Holders of Securities to receive payments of principal thereof and
interest thereon, upon the original stated due dates therefor or on the specified redemption dates
therefor (but not upon acceleration), and remaining rights of the holders to receive mandatory
sinking fund payments, if any, (iv) the rights, obligations, duties and immunities of the Trustee
hereunder, and the Company’s obligations in connection therewith (including, but not limited to,
Section 607), (v) the rights, if any, to convert or exchange the Securities of such series, (vi)
the rights of Holders of Securities of such series as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them, and (vii) the obligations of
the Company under Section 1002), and the Trustee, at the expense of the Company, shall, upon a
Company Request, execute proper instruments acknowledging the same, if the conditions set forth
below are satisfied (hereinafter, “defeasance”):

-59-

 

          (1) The Company has irrevocably deposited or caused to be deposited with the Trustee as trust
funds in trust, for the purposes of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefit of Holders of the Securities of such series (A) cash in
an amount, or (B) in the case of any series of Securities the payments on which may only be made in
legal coin or currency of the United States, U.S. Government Obligations, maturing as to principal
and interest at such times and in such amounts as will insure the availability of cash, or (C) a
combination thereof, certified to be sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay (i) the principal and interest and premium, if any, on all Securities of such
series on each date that such principal, interest or premium, if any, is due and payable or on any
Redemption Date established pursuant to Clause (3) below, and (ii) any mandatory sinking fund
payments on the dates on which such payments are due and payable in accordance with the terms of
the Indenture and the Securities of such series;

          (2) The Company has delivered to the Trustee an Opinion of Counsel based on the fact that (A)
the Company has received from, or there has been published by, the Internal Revenue Service a
ruling, or (B) since the date hereof, there has been a change in the applicable federal income tax
law, in either case to the effect that, and such opinion shall confirm that, Holders of the
Securities of such series will not recognize income, gain or loss for federal income tax purposes
as a result of such deposit, defeasance and discharge and will be subject to federal income tax on
the same amount and in the same manner and at the same times, as would have been the case if such
deposit, defeasance and discharge had not occurred;

          (3) If the Securities are to be redeemed prior to Stated Maturity (other than from mandatory
sinking fund payments or analogous payments), notice of such redemption shall have been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee shall have been made;

          (4) No Event of Default or event which with notice or lapse of time or both would become an
Event of Default shall have occurred and be continuing on the date of such deposit;

          (5) Such defeasance shall not cause the Trustee to have a conflicting interest within the
meaning of the Trust Indenture Act (assuming all Securities are in default within the meaning of
such Act);

          (6) Such defeasance shall not result in a breach or violation of, or constitute a default
under, any other agreement or instrument to which the Company is a party or by which it is bound;

          (7) Such defeasance shall not result in the trust arising from such deposit constituting an
investment company within the meaning of the Investment Company Act of 1940, as amended, unless
such trust shall be registered under such Act or exempt from registration thereunder; and

-60-

 

          (8) The Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to the defeasance
contemplated by this provision have been complied with.

     For this purpose, such defeasance means that the Company and any other obligor upon the
Securities of such series shall be deemed to have paid and discharged the entire debt represented
by the Securities of such series, which shall thereafter be deemed to be “Outstanding” only for the
purposes of Section 1304 and the rights and obligations referred to in Clauses (i) through (vii),
inclusive, of the first paragraph of this Section, and to have satisfied all its other obligations
under the Securities of such series and this Indenture insofar as the Securities of such series are
concerned.

Section 1303. Covenant Defeasance

     The Company and any other obligor shall be released on the 91st day after the date of the
deposit referred to in Clause (1) below from its obligations under Sections 704 and 801 with
respect to the Securities of any series on and after the date the conditions set forth below are
satisfied (hereinafter, “covenant defeasance”), and the Securities of such series shall thereafter
be deemed to be not “Outstanding” for the purposes of any request, demand, authorization,
direction, notice, waiver, consent or declaration or other action or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed
Outstanding for all other purposes hereunder. For this purpose, such covenant defeasance means
that, with respect to the Securities of such series, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in any such Section,
whether directly or indirectly by reason of any reference elsewhere herein to such Section or by
reason of any reference in such Section to any other provision herein or in any other document and
such omission to comply shall not constitute a Default or an Event of Default under Section 501,
but, except as specified above, the remainder of this Indenture and the Securities of such series
shall be unaffected thereby. The following shall be the conditions to application of this Section
1303:

          (1) The Company has irrevocably deposited or caused to be deposited with the Trustee as trust
funds in trust for the purpose of making the following payments, specifically pledged as security
for, and dedicated solely to, the benefit of Holders of the Securities of such series, (A) cash in
an amount, or (B) in the case of any series of Securities the payments on which may only be made in
legal coin or currency of the United States, U.S. Government Obligations, maturing as to principal
and interest at such times and in such amounts as will insure the availability of cash, or (C) a
combination thereof, sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, to pay
(i) the principal and interest and premium, if any, on all Securities of such series on each date
that such principal, interest or premium, if any, is due and payable or on any Redemption Date
established pursuant to Clause (2) below, and (ii) any mandatory sinking fund payments on the day
on which such payments are due and payable in accordance with the terms of the Indenture and the
Securities of such series;

          (2) If the Securities are to be redeemed prior to Stated Maturity (other than from mandatory
sinking fund payments or analogous payments), notice of such redemption shall

-61-

 

have been duly given pursuant to this Indenture or provision therefor satisfactory to the
Trustee shall have been made;

          (3) No Event of Default or event which with notice or lapse of time or both would become an
Event of Default shall have occurred and be continuing on the date of such deposit;

          (4) The Company has delivered to the Trustee an Opinion of Counsel which shall confirm that
Holders of the Securities of such series will not recognize income, gain or loss for federal income
tax purposes as a result of such deposit and covenant defeasance and will be subject to federal
income tax on the same amount and in the same manner and at the same time as would have been the
case if such deposit and covenant defeasance had not occurred;

          (5) Such covenant defeasance shall not cause the Trustee to have a conflicting interest within
the meaning of the Trust Indenture Act (assuming all Securities are in default within the meaning
of such Act);

          (6) Such covenant defeasance shall not result in a breach or violation of, or constitute a
default under, any other agreement or instrument to which the Company is a party or by which it is
bound;

          (7) Such covenant defeasance shall not result in the trust arising from such deposit
constituting an investment company within the meaning of the Investment Company Act of 1940, as
amended, unless such trust shall be registered under such Act or exempt from registration
thereunder; and

          (8) The Company has delivered to the Trustee an Officers’ Certificate and Opinion of Counsel
stating that all conditions precedent provided for relating to the covenant defeasance contemplated
by this provision have been complied with.

Section 1304. Application by Trustee of Funds Deposited for Payment of Securities

     Subject to the provisions of the last paragraph of Section 1003, all moneys or U.S. Government
Obligations deposited with the Trustee pursuant to Section 1302 or 1303 (and all funds earned on
such moneys or U.S. Government Obligations) shall be held in trust and applied by it to the
payment, either directly or through any Paying Agent (including the Company acting as its own
Paying Agent), to Holders of the particular Securities of such series for the payment or redemption
of which such moneys have been deposited with the Trustee, of all sums due and to become due
thereon for principal and interest; but such money need not be segregated from other funds except
to the extent required by law. Subject to Sections 1302 and 1303, the Trustee shall promptly pay
to the Company upon Company Order any moneys held by it at any time, which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
delivered to the Trustee, are in excess of the amounts required to effect the defeasance with
respect to the Outstanding Securities in question.

-62-

 

Section 1305. Repayment to the Company

     The Trustee and any Paying Agent promptly shall pay or return to the Company upon Company
Request any money and U.S. Government Obligations held by them at any time that are not required
for the payment of the principal of and any interest on the Securities of any series for which
money or U.S. Government Obligations have been deposited pursuant to Section 1302 or 1303, which,
in the opinion of a nationally recognized firm of independent public accountants expressed in a
written certification delivered to the Trustee, are in excess of the amounts required to effect the
defeasance with respect to the Outstanding Securities in question.

     The provisions of the last paragraph of Section 1003 shall apply to any money held by the
Trustee or any Paying Agent under this Article that remains unclaimed for two years after the
Maturity of any series of Securities for which money or U.S. Government Obligations have been
deposited pursuant to Section 1302 or 1303.

Section 1306. Reinstatement

     If the Trustee or the Paying Agent is unable to apply any money or U. S. Government
Obligations in accordance with this Article by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the obligations of the Company under this Indenture and the
Securities of the applicable series shall be revived and reinstated as though no deposit had
occurred pursuant to this Indenture until such time as the Trustee or the Paying Agent is permitted
to apply all such money or U.S. Government Obligations in accordance with this Article; provided,
however, that if the Company has made any payment of principal of or interest on any Securities of
such series because of the reinstatement of its obligations, the Company shall be subrogated to the
rights of Holders of such Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or the Paying Agent.

ARTICLE XIV

SUBORDINATION OF SECURITIES

Section 1401. Securities Subordinated to Senior Debt

     The payment by the Company of the principal of, premium, if any, and interest, if any, on any
series of Securities issued hereunder shall be subordinated to the extent set forth in an indenture
supplemental hereto relating to such Securities.

-63-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed in
multiple counterparts, each of which so executed shall be deemed to be an original, but all of
which shall together constitute but one and the same instrument, all as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	BERKSHIRE HILLS BANCORP, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[________________________________]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:exv10w1

Exhibit 10.1

Execution Version

 

 

$400,000,000

AMENDED AND RESTATED

REVOLVING CREDIT AGREEMENT

dated as of

November 18, 2009

among

SERVICE CORPORATION INTERNATIONAL,

as Borrower,

The Lenders Party Hereto,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

BBVA COMPASS

and

THE BANK OF NOVA SCOTIA,

as Documentation Agents,

 

J.P. MORGAN SECURITIES INC.

and

BANC OF AMERICA SECURITIES LLC,

as Joint Bookrunners and Joint Lead Arrangers

 

 

Andrews Kurth LLP

Counsel to the Administrative Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.01 Defined Terms
	 	 	1	 
	Section 1.02 Classification of Loans and Borrowings
	 	 	17	 
	Section 1.03 Terms Generally
	 	 	17	 
	Section 1.04 Accounting Terms; GAAP
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	18	 
	Section 2.01 Commitments
	 	 	18	 
	Section 2.02 Revolving Loans and Borrowings
	 	 	18	 
	Section 2.03 Requests for Revolving Borrowings
	 	 	19	 
	Section 2.04 Reserved
	 	 	19	 
	Section 2.05 Swingline Loans
	 	 	19	 
	Section 2.06 Letters of Credit
	 	 	20	 
	Section 2.07 Funding of Borrowings
	 	 	25	 
	Section 2.08 Interest Elections
	 	 	25	 
	Section 2.09 Termination and Reduction of Commitments
	 	 	26	 
	Section 2.10 Repayment of Loans; Evidence of Debt
	 	 	27	 
	Section 2.11 Prepayment of Loans
	 	 	28	 
	Section 2.12 Fees
	 	 	28	 
	Section 2.13 Interest
	 	 	29	 
	Section 2.14 Alternate Rate of Interest
	 	 	30	 
	Section 2.15 Increased Costs
	 	 	31	 
	Section 2.16 Break Funding Payments
	 	 	32	 
	Section 2.17 Taxes
	 	 	32	 
	Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	33	 
	Section 2.19 Mitigation Obligations; Replacement of Lenders
	 	 	35	 
	Section 2.20 Increase in the Commitments
	 	 	36	 
	Section 2.21 Defaulting Lenders
	 	 	37	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	38	 
	Section 3.01 Organization; Powers
	 	 	38	 
	Section 3.02 Authorization; Enforceability
	 	 	39	 
	Section 3.03 Governmental Approvals; No Conflicts
	 	 	39	 
	Section 3.04 Financial Condition; No Material Adverse Change
	 	 	39	 
	Section 3.05 Properties
	 	 	39	 
	Section 3.06 Litigation and Environmental Matters
	 	 	40	 
	Section 3.07 Compliance with Laws and Agreements
	 	 	40	 
	Section 3.08 Investment and Holding Company Status
	 	 	40	 
	Section 3.09 Taxes
	 	 	40	 
	Section 3.10 ERISA
	 	 	40	 
	Section 3.11 Disclosure
	 	 	41	 
	Section 3.12 Subsidiaries
	 	 	41	 

-i-

 

	 	 	 	 	 
	 	 	Page	 
	Section 3.13 Margin Stock
	 	 	41	 
	Section 3.14 Use of Proceeds
	 	 	41	 
	Section 3.15 Solvency
	 	 	41	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS
	 	 	42	 
	Section 4.01 Effective Date
	 	 	42	 
	Section 4.02 Each Credit Event
	 	 	43	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	43	 
	Section 5.01 Financial Statements; Ratings Change and Other Information
	 	 	44	 
	Section 5.02 Notices of Material Events
	 	 	45	 
	Section 5.03 Existence; Conduct of Business
	 	 	45	 
	Section 5.04 Payment of Obligations
	 	 	45	 
	Section 5.05 Maintenance of Properties
	 	 	45	 
	Section 5.06 Books and Records; Inspection Rights
	 	 	46	 
	Section 5.07 Compliance with Laws
	 	 	46	 
	Section 5.08 Use of Proceeds and Letters of Credit
	 	 	46	 
	Section 5.09 Insurance
	 	 	46	 
	Section 5.10 Required Guarantors
	 	 	46	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	47	 
	Section 6.01 Indebtedness Covenant
	 	 	47	 
	Section 6.02 Limit on Preferred Equity Issuance
	 	 	49	 
	Section 6.03 Lien Covenant
	 	 	49	 
	Section 6.04 Sale and Leaseback Transactions
	 	 	50	 
	Section 6.05 Limitation on Fundamental Changes
	 	 	50	 
	Section 6.06 Restrictions on Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	50	 
	Section 6.07 Limitation on Asset Sales
	 	 	52	 
	Section 6.08 Swap Agreements
	 	 	53	 
	Section 6.09 Limitation on Restricted Payments
	 	 	53	 
	Section 6.10 Restrictions on Transactions with Affiliates
	 	 	55	 
	Section 6.11 Restrictions on Restrictive Agreements
	 	 	55	 
	Section 6.12 Financial Covenants
	 	 	56	 
	 
	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	56	 
	 
	 	 	 	 
	ARTICLE VIII THE ADMINISTRATIVE AGENT
	 	 	58	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	60	 
	Section 9.01 Notices
	 	 	60	 
	Section 9.02 Waivers; Amendments; Release of Guarantors
	 	 	61	 
	Section 9.03 Expenses; Indemnity; Damage Waiver
	 	 	62	 
	Section 9.04 Successors and Assigns
	 	 	63	 
	Section 9.05 Survival
	 	 	66	 
	Section 9.06 Counterparts; Integration; Effectiveness
	 	 	66	 
	Section 9.07 Severability
	 	 	67	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	Section 9.08 Right of Setoff
	 	 	67	 
	Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process
	 	 	67	 
	Section 9.10 WAIVER OF JURY TRIAL
	 	 	68	 
	Section 9.11 Headings
	 	 	68	 
	Section 9.12 Confidentiality
	 	 	68	 
	Section 9.13 Interest Rate Limitation
	 	 	69	 
	Section 9.14 USA Patriot Act
	 	 	69	 
	Section 9.15 Amendment and Restatement
	 	 	70	 
	Section 9.16 FINAL AGREEMENT OF THE PARTIES
	 	 	70	 

-iii-

 

	 	 	 
	EXHIBITS:
	 	 
	 
	Exhibit 1.01A
	 	Form of Guarantee Agreement
	Exhibit 1.01B
	 	Form of Revolving Promissory Note
	Exhibit 4.01(h)
	 	Form of Borrowing Request
	Exhibit 5.01
	 	Form of Compliance Certificate
	Exhibit 9.04
	 	Form of Assignment and Assumption
	Annex I
	 	Standard Terms and Conditions for Assignment and Assumption
	 
	 	 
	SCHEDULES:
	 	 
	 
	Schedule 2.01
	 	Commitments
	Schedule 2.06(k)
	 	Existing Letters of Credit
	Schedule 3.06
	 	Disclosed Matters
	Schedule 3.12
	 	List of Subsidiaries
	Schedule 6.01(c)
	 	Existing Indebtedness
	Schedule 6.03(b)
	 	Existing Liens
	Schedule 6.06(b)
	 	Existing Investments
	Schedule 6.11
	 	Restrictive Agreements

-iv-

 

          THIS AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT (this “Agreement”) dated as of
November 18, 2009, is entered into among Service Corporation International, a Texas corporation,
the Lenders party hereto and JPMorgan Chase Bank, N.A., as Administrative Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

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

          “Acquisitions” means, collectively, the Keystone Acquisition and the Palm Acquisition.

          “Adjusted LIBO Rate” means, for any day, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100
of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate.

          “Adjusted One Month LIBO Rate” means an interest rate per annum equal to the sum of
(i) 2.50% per annum plus (ii) the Adjusted LIBO Rate for a one month Interest Period on such day
(or if such day is not a Business Day, the immediately preceding Business Day).

          “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

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

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

          “Applicable Margin” means, for any day, with respect to any CBFR Loan or Eurodollar
Revolving Loan, or with respect to the facility fees payable hereunder, as the case may be, the
Applicable Margin per annum set forth below under the caption “CBFR Spread”, “Eurodollar Spread” or
“Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio:

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	EURODOLLAR	 	 
	CATEGORY	 	LEVERAGE RATIO:	 	CBFR SPREAD	 	SPREAD	 	COMMITMENT FEE RATE
	I
	 	3 4.0 to 1.0
	 	2.50%
	 	3.50%
	 	.625%
	II
	 	3  3.0 to 1.0 but < 4.0 to 1.0
	 	2.00%
	 	3.00%
	 	.500%
	III
	 	3  2.0 to 1.0 but < 3.0 to 1.0
	 	1.50%
	 	2.50%
	 	.500%
	IV
	 	< 2.0 to 1.0
	 	1.00%
	 	2.00%
	 	.500%

          For purposes of the foregoing, each change in the Applicable Margin resulting from a change in
the Leverage Ratio shall be effective during the period commencing on and including the date of
delivery to the Administrative Agent of such consolidated financial statements indicating such
change and ending on the date immediately preceding the effective date of the next such change;
provided that the Leverage Ratio shall be deemed to be in Category I at any time (a) that an Event of Default has occurred and is continuing or
(b) at the option of the Administrative Agent or at the request of the Required Lenders if the
Borrower fails to deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(i) or Section 5.01(ii), during the period from the
expiration of the time for delivery thereof until such consolidated financial statements are
delivered.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the total
Commitments represented by such Lender’s Commitment; provided that in the case of
Section 2.21 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the
percentage of the total Commitments (disregarding any Defaulting Lender’s Commitment) represented
by such Lender’s Commitment. If the Commitments have terminated or expired, the Applicable
Percentages shall be determined based upon the Commitments most recently in effect, giving effect
to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.

          “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
9.04), and accepted by the Administrative Agent, in the form of Exhibit 9.04 or any
other form approved by the Administrative Agent.

          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

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

          “Borrower” means Service Corporation International, a Texas corporation.

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

-2-

 

          “Borrowing Request” means a request by the Borrower for a Revolving Borrowing
substantially in the form of Exhibit 4.01(h).

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in Houston, Texas are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

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

          “Cash Interest Expense” means interest expense determined under GAAP, less
amortization of deferred loan costs and original issue discounts.

          “CB Floating Rate” means the Prime Rate; provided that the CB Floating Rate
shall never be less than the Adjusted One Month LIBO Rate. Any change in the CB Floating Rate due
to a change in the Prime Rate or the Adjusted One Month LIBO Rate shall be effective from and
including the effective date of such change in the Prime Rate or Adjusted One Month LIBO Rate,
respectively.

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

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof) of Equity Interests representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Borrower (including Equity
Interests referenced in (d) below); (b) occupation of a majority of the seats (other than vacant
seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the
board of directors of the Borrower nor (ii) appointed by directors so nominated; (c) the
acquisition of direct or indirect Control of the Borrower by any Person or group, or (d) any event
that gives holders of preferred Equity Interests or other securities issued pursuant to any
shareholders’ rights plan of the Borrower the right to purchase or to convert such securities to
more than 25% of the aggregate (less the percentage of Equity Interests referenced in (a) above
held by the holders of such preferred Equity Interests) voting Equity Interests of the Borrower.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or

-3-

 

(c)compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any
lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any)
with any request, guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

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

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans including the acquisition of participations in Letters of Credit and Swingline Loans
hereunder, as such commitment may be (a) reduced from time to time pursuant to Section
2.09, (b) increased from time to pursuant to Section 2.20 and (c) reduced or increased
from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.
The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption pursuant to which such Lender shall have assumed its Commitment, as
applicable. The initial aggregate amount of the Lenders’ Commitments is $400,000,000.

          “Consolidated EBITDA” means EBITDA for the Borrower and its Subsidiaries on a
consolidated basis.

          “Consolidated Interest Expense” means, for any period, the actual Cash Interest
Expense (including imputed interest expense in respect of Capital Lease Obligations) paid by the
Borrower and the Subsidiaries or accrued during such period.

          “Consolidated Operating Income” means, for any period, the operating income or loss of
the Borrower and the Subsidiaries for such period determined on a consolidated basis in accordance
with GAAP.

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Credit Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline
Exposure at such time.

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

          “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that
has (a) failed to fund any portion of its Revolving Loans or participations in Letters of Credit or
Swingline Loans within three Business Days of the date required to be funded by it hereunder, (b)
notified the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any
Lender in writing that it does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement or under other agreements in which it commits to extend
credit, (c) failed, within three Business Days after request by the

-4-

 

Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund
prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans, (d)
otherwise failed to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within three Business Days of the date when due, unless the
subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become, or has a parent company that has become, the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person charged with reorganization or liquidation
of its business or custodian, appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has
a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar
Person charged with reorganization or liquidation of its business or custodian appointed for it, or
has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence
in any such proceeding or appointment.

          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Domestic Subsidiary” means any Subsidiary that is not a Foreign Subsidiary.

          “EBITDA” means, for any period, without duplication, for the Borrower and its
Subsidiaries, Consolidated Operating Income

     (i) minus any gains or plus any losses on sales and impairments of assets, to the
extent included in Consolidated Operating Income;

     (ii) plus depreciation and amortization (to the extent included in operating expenses
and excluding amortization of deferred loan costs);

     (iii) plus non-cash stock compensation expense/amortization (to the extent included in
operating expenses);

     (iv) plus rent expense in previous periods associated with assets later capitalized
with on-balance sheet debt;

     (v) plus (A) actual non-recurring cash expenses incurred and related to any acquisition
to the extent included in operating expenses and not to exceed $30,000,000 in aggregate in
any 12 month period, including expenses within the first 24 months after the related
acquisition, such as severance of management and employees, termination costs and buyouts of
contracts and lease agreements, conversions of computer systems and networks, transfer of
documents and other assets, legal and advisory fees directly related to such acquisition,
and other items reasonably incurred of a similar nature and (B) non-cash acquisition
expenses that would not otherwise be picked up in other non-cash addbacks to EBITDA;

-5-

 

     (vi) plus royalty income from American Memorial Life Insurance Company;

     (vii) minus expenses attributable to surety premiums;

     (viii) minus Pro Forma Divested EBITDA (to the extent positive and previously included
in operating income) or plus Pro Forma Divested EBITDA (to the extent negative and
previously included in operating income);

     (ix) plus EBITDA of any acquired operations in the period from the beginning of the
period for which EBITDA is to be determined to the date of such acquisition;

     (x) plus EBITDA of discontinued operations still owned (to the extent positive) and
minus EBITDA of discontinued operations still owned (to the extent negative);

     (xi) plus net cash flow from/to non-consolidated joint ventures to the extent
received/paid in cash; and

     (xii) plus non-recurring and non-cash expenses (to the extent included in operating
expenses) and minus non-recurring and non-cash income (to the extent included in operating
income).

          “Effective Date” means the date on which the conditions specified in Section
4.01 are satisfied (or waived in accordance with Section 9.02).

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into
by any Governmental Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, release or threatened release of any Hazardous Material or to
health and safety matters.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Borrower or any Subsidiary 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 shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

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

-6-

 

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

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day
notice period is waived or the Merger and the transactions contemplated thereby); (b) the existence
with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of
the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard
with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by
the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the
Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or
a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

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

          “Event of Default” has the meaning assigned to such term in ARTICLE VII.

          “Excluded Subsidiaries” means Wilson Financial Group, each Subsidiary thereof, SCI
International Limited, Alderwoods Group, LLC and SCI Cerberus, LLC.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction 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 of
America or any similar tax imposed by any other jurisdiction in which the Borrower is located and
(c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.19(b)), any withholding tax that is imposed on amounts payable to such
Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a
new lending office) or is attributable to such Foreign Lender’s failure to comply with Section
2.17(e), 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 2.17(a).

-7-

 

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

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

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the United
States of America, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

          “Foreign Subsidiary” means any Subsidiary organized under the laws of a jurisdiction
other than the United States or any of its territories or possessions or any political subdivision
thereof. For the avoidance of doubt, the Commonwealth of Puerto Rico is not a territory,
possession or political subdivision of the United States.

          “GAAP” means generally accepted accounting principles in the United States of America.

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

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or lease property,
securities or services for the purpose of assuring the owner of such Indebtedness or other
obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation;
provided, that the term Guarantee shall not include endorsements for collection or deposit
in the ordinary course of business.

-8-

 

          “Guarantee Agreement” means the Amended and Restated Guarantee of the Guarantors,
substantially in the form of Exhibit 1.01A hereto, guarantying the Obligations of Borrower
under this Agreement and the Loan Documents and all other Indebtedness of the Borrower to any of
the Agents or Lenders in respect of any hedging obligations, any overdrafts or treasury,
depository, cash management, or similar services.

          “Guarantors” means all Domestic Subsidiaries of the Borrower other than the Excluded
Subsidiaries and any other Subsidiary required to execute a Guaranty Agreement pursuant to
Section 5.10.

          “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.

          “Increasing Lender” has the meaning set forth in Section 2.20.

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

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Interest Coverage Ratio” means the ratio of Consolidated EBITDA to Consolidated
Interest Expense, in each case, for the immediately preceding four (4) fiscal quarters.

          “Interest Election Request” means a request by the Borrower to convert or continue a
Revolving Borrowing in accordance with Section 2.08.

          “Interest Payment Date” means (a) with respect to any CBFR Loan (other than a
Swingline Loan), the last day of each March, June, September and December, (b) with respect to

-9-

 

any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three
months’ duration, each day prior to the last day of such Interest Period that occurs at intervals
of three months’ duration after the first day of such Interest Period, and (c) with respect to any
Swingline Loan, the day that such Loan is required to be repaid.

          “Interest Period” means with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower may elect;
provided, that (i) if any Interest Period would end on a day other than a Business Day,
such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a
Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar month,
in which case such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period that commences on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the last calendar month of such Interest Period) shall
end on the last Business Day of the last calendar month of such Interest Period. For purposes
hereof, the date of a Borrowing initially shall be the date on

           which such Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

          “Issuing Bank” means JPMorgan Chase Bank, N.A., and any Lender that is an issuing bank
with respect to those Letters of Credit described in Section 2.06(k) hereof, each in its
capacity as the issuer of Letters of Credit hereunder, and their successors in such capacity as
provided in Section 2.06(i). The Issuing Bank may, in its discretion, arrange for one or
more Letters of Credit to be issued by Affiliates of the Issuing Bank, in which case the term
“Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

          “Keystone” means Keystone North America, Inc. and its Subsidiaries.

          “Keystone Acquisition” means the acquisition of Equity Interests in Keystone by the
Borrower pursuant to the Support Agreement dated October 14, 2009 among the Borrower, SCI Alliance
Acquisition Corporation and Keystone, together with advances by the Borrower to Keystone and its
Subsidiaries to repay their existing Indebtedness.

          “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of
any Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that
shall have become a party hereto pursuant to an Assignment and Assumption, other than any such
Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the
context otherwise requires, the term “Lenders” includes the Swingline Lender.

-10-

 

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “Leverage Ratio” means, on any date, the ratio of (a) the difference of (1) Total Debt
minus (2) all unrestricted cash on hand of said Persons in excess of $25,000,000 to (b)
Consolidated EBITDA for the immediately preceding four (4) fiscal quarters.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Reuters Screen LIBOR1 Page (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided on such page of such service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not available at such
time for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for
such Interest Period shall be the rate rounded upwards, if necessary, to the next 1/100 of 1% at
which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are
offered by the principal London office of the Administrative Agent in immediately available funds
in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period.

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

          “Loan Documents” means this Agreement, the Notes, the Guarantee Agreement and any
other documents executed in connection herewith or therewith.

          “Loan Parties” means the Borrower and the Guarantors.

          “Loans” means the Revolving Loans and the Swingline Loans.

          “Marketed EBITDA” means the trailing 12-month EBITDA figure disclosed to potential
buyers preceding the sale of an operation or a Subsidiary.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
operations, prospects or condition, financial or otherwise, of the Borrower and the Subsidiaries
taken as a whole, (b) the ability of the Borrower to perform any of its obligations under this
Agreement or (c) the rights of or benefits available to the Lenders under this Agreement.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Borrower and its Subsidiaries in an aggregate principal amount exceeding $15,000,000. For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of the

 -11-

 

Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary
would be required to pay if such Swap Agreement were terminated at such time.

          “Maturity Date” means November 28, 2013.

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

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

          “Note” means the promissory notes substantially in the form of Exhibit 1.01B
executed by the Borrower to the order of a Lender, partially evidencing the Obligations.

          “Obligations” means all of the Borrower’s obligations and duties under this Agreement
and each of the other Loan Documents.

          “Other Taxes” means any and 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 from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

          “Palm” means Palm Mortuary, Inc. and its Subsidiaries.

          “Palm Acquisition” means the acquisition of Equity Interests in Palm by the Borrower
pursuant to the Equity Purchase Agreement, dated as of August 5, 2009, by and among Alderwoods
(Nevada), Inc., Palm Mortuary, Inc, its stockholders party thereto, Knauss Enterprises Limited
Liability Company, Knauss Holdings, LLC and its members party thereto, together with advances by
the Borrower to Palm and its Subsidiaries to repay their existing Indebtedness.

          “Participant” has the meaning set forth in Section 9.04.

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

          “Permitted Acquisition” means any acquisition (by merger or otherwise) by the Borrower
or a Subsidiary of all or substantially all the assets of, or all the Equity Interests in, a Person
or division or line of business of a Person, if (a) immediately after giving effect thereto, no
Default has occurred and is continuing or would result therefrom, (b) the business of such acquired
Person, or such acquired business, is reasonably related to the business of the Borrower on the
date hereof, (c) the requirements of Section 5.10 shall have been satisfied within the time
periods specified therein, (d) the Borrower and the Subsidiaries are in compliance, on a pro forma
basis after giving effect to such acquisition, with Section 6.12 to the extent then
applicable, as if such acquisition had occurred on the first day of the relevant period for testing
compliance with such Section, (e) such acquisition has been approved by all necessary corporate and
other action by the Person so acquired or the Person selling the assets or other property so
acquired by the Borrower or such Subsidiary and (f) in the case of any acquisition in which the

 -12-

 

aggregate consideration paid by the Borrower and the Subsidiaries exceeds $10,000,000, the
Borrower has delivered to the Administrative Agent an officer’s certificate to the effect set forth
in clauses (a), (b), (c), (d) and (e) above, together with all financial information reasonably
requested by the Administrative Agent relating to the Person or assets acquired and reasonably
detailed calculations demonstrating satisfaction of the requirement set forth in clause (d) above.

          “Permitted Encumbrances” means:

          (a) liens imposed by law for taxes that are not yet due or are being contested in good faith,
with adequate reserves, and the failure of such contest could not reasonably be expected to result
in a Material Adverse Effect;

          (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like liens
imposed by law, arising in the ordinary course of business and securing obligations that are not
overdue by more than 30 days or are being contested in good faith, with adequate reserves and the
failure of such contest could not reasonably be expected to result in a Material Adverse Effect;

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

          (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in
each case in the ordinary course of business;

          (e) judgment liens in respect of judgments that do not constitute an event of default; and

          (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real property
imposed by law or arising in the ordinary course of business that do not secure any monetary
obligations and do not materially detract from the value of the affected property or interfere with
the ordinary conduct of business of the Borrower or any Subsidiary.

provided that the term “Permitted Encumbrances” shall not include any lien securing
Indebtedness.

          “Permitted Investments” means:

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

          (b) investments in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, a rating of A2 or better by S&P, P2 or better by
Moody’s, or R1 “mid” or better by The Dominion Bond Rating Service;

 -13-

 

          (c) investments in certificates of deposit, banker’s acceptances and time deposits (including
eurodollar deposits) maturing within 180 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or offered by, any Lender or
any domestic office of any commercial bank organized under the laws of the United States of America
or Canada or any State or Province thereof which has a combined capital and surplus and undivided
profits of not less than $500,000,000;

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

          (e) money market funds that (i) comply with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P or Aaa by
Moody’s and (iii) have portfolio assets of at least $5,000,000,000;

          (f) investments in corporate debt securities (including loan participations) that (a) mature
within 60 days from the date of acquisition, and (b) are rated BBB or better by S&P or Baa2 or
better by Moody’s at the date of acquisition;

          (g) investments in municipal securities or auction rate securities that are rated AA or better
by S&P or Aa or better by Moody’s, provided that the Borrower has the right to put such
securities back to the issuer or seller thereof at least once every 60 days; and

          (h) other investments in an amount not to exceed $10,000,000 in the aggregate at any one time
by Foreign Subsidiaries in certificates of deposit, banker’s acceptances and time deposits (or
other substantially similar investments) maturing within 180 days from the date of acquisition
thereof issued or guaranteed by or placed with, and money market deposit accounts (or other
substantially similar deposit accounts) issued or offered by, any foreign commercial bank not
organized under the laws of the United States of America or Canada or any state or province
thereof.

          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by JPMorgan Chase Bank, N.A., as its prime rate in effect at its principal office in Houston,
Texas; each change in the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

          “Private Placement Notes” means the Floating Rate Series B Senior Notes due November
28, 2011, in the aggregate principal amount of $150,000,000 issued pursuant to that

 -14-

 

certain Note Purchase Agreement dated as of November 28, 2006, by and among the Borrower and
the noteholders party thereto.

          “Pro Forma Divested EBITDA” means the total Marketed EBITDA from divested operations
included in Consolidated Operating Income in the preceding four quarters before consideration of
divestures.

          “Register” has the meaning set forth in Section 9.04.

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

          “Required Lenders” means, at any time, Lenders holding more than 50% of the sum of the
total Commitments (or, if the Commitments have terminated or expired, the Credit Exposures) at such
time, as adjusted pursuant to Section 2.21.

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

          “Revolving Borrowing” means a Borrowing made pursuant to Section 2.02.

          “Revolving Loan” means a Loan made pursuant to Section 2.02.

          “Sale and Leaseback Transaction” means any arrangement whereby the Borrower or a
Subsidiary shall sell or transfer any property, real or personal, used or useful in its business,
whether now owned or hereinafter acquired, and thereafter rent or lease from the buyer or
transferee of the sold or transferred property that it intends to use for substantially the same
purpose or purposes as the property sold or transferred.

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

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding
and to be subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable

 -15-

 

regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

          “Subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent. Unless otherwise indicated, “Subsidiary”
shall mean a Subsidiary of the Borrower.

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

          “Swingline Exposure” means, at any time, the aggregate principal amount of all
Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall
be its Applicable Percentage of the total Swingline Exposure at such time.

          “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Total Debt” means the consolidated total Indebtedness of the Borrower and each of its
Subsidiaries.

          “Transportation Equipment Transactions” has the meaning assigned such term in
Section 6.01(f).

          “Transactions” means the execution, delivery and performance by the Borrower of this
Agreement, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of
Credit hereunder.

 -16-

 

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the CB Floating Rate.

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

          Section 1.02 Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Type (e.g., a “Eurodollar Loan”). Borrowings also may
be classified and referred to by Type (e.g., a “Eurodollar Borrowing”).

          Section 1.03 Terms Generally. The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights.

          Section 1.04 Accounting Terms; GAAP. Except as otherwise expressly provided herein, all
terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect
from time to time; provided that, if the Borrower notifies the Administrative Agent that the
Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request
an amendment to any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then such provision shall
be interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in
accordance herewith.

 -17-

 

ARTICLE II

The Credits

          Section 2.01 Commitments. Subject to the terms and conditions set forth herein, each
Lender agrees to make Revolving Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (a) such Lender’s Credit Exposure
exceeding such Lender’s Commitment as set forth on Schedule 2.01 or (b) the sum of the total Credit
Exposures exceeding the total Commitments. Within the foregoing limits and subject to the terms
and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans.

          Section 2.02 Revolving Loans and Borrowings.

          (a) Each Revolving Loan shall be made as part of a Borrowing consisting of Loans made by the
Lenders ratably in accordance with their respective Commitments. The failure of any Lender to make
any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required.

          (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of
CBFR Loans or Eurodollar Loans as the Borrower may request in accordance herewith; provided
that all new Borrowings made on the Effective Date or conversions of existing CBFR Loans must be
made as CBFR Borrowings, unless the Borrower shall have notified the Administrative Agent in
writing not later than 10:00 a.m., Houston time, three (3) Business Days before the Effective Date
of its election for the initial Borrowing to be a Eurodollar Borrowing. Each Swingline Loan shall
be a CBFR Loan. Each Lender at its option may make any Eurodollar Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Revolving Loan; provided that any
exercise of such option shall not affect the obligation of the Borrower to repay such Revolving
Loan in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less
than $5,000,000. At the time that each CBFR Revolving Borrowing is made, such Borrowing shall be
in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000;
provided that a CBFR Revolving Borrowing may be in an aggregate amount that is equal to the
entire unused balance of the total Commitments or that is required to finance the reimbursement of
an LC Disbursement as contemplated by Section 2.06(e). Each Swingline Loan shall be in an
amount that is an integral multiple of $100,000 and not less than $1,000,000. Borrowings of more
than one Type may be outstanding at the same time; provided that there shall not at any
time be more than a total of 10 Eurodollar Revolving Borrowings outstanding.

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

 -18-

 

          Section 2.03 Requests for Revolving Borrowings. To request a Revolving Borrowing, the
Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a
Eurodollar Borrowing, not later than 10:00 a.m., Houston time, three Business Days before the date
of the proposed Borrowing or (b) in the case of a CBFR Borrowing, not later than 11:00 a.m.,
Houston time, on the date of the proposed Borrowing; provided that any such notice of a CBFR
Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may
be given not later than 10:00 a.m., Houston, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery
or telecopy to the Administrative Agent of a written Borrowing Request. Each such telephonic and
written Borrowing Request shall specify the following information in compliance with Section
2.02:

(i) the aggregate amount of the requested Borrowing;

(ii) the date of such Borrowing, which shall be a Business Day;

(iii) whether such Borrowing is to be a CBFR Borrowing or a Eurodollar Borrowing;

(iv) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the
term “Interest Period”; and

(v) the location and number of the Borrower’s account to which funds are to be
disbursed, which shall comply with the requirements of Section 2.07.

          If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be a CBFR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Borrowing, then the Borrower shall be deemed to have selected an Interest
Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance
with this Section, the Administrative Agent shall advise each Lender of the details thereof and of
the amount of such Lender’s Loan to be made as part of the requested Borrowing.

          Section 2.04  Reserved.

          Section 2.05  Swingline Loans.

          (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrower from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the aggregate principal amount
of outstanding Swingline Loans exceeding $25,000,000 or (ii) the sum of the total Credit Exposures
exceeding the total Commitments; provided that the Swingline Lender shall not be required
to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits
and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Swingline Loans.

          (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 3:00 p.m., Houston

 -19-

 

time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable and
shall specify the requested date (which shall be a Business Day) and amount of the requested
Swingline Loan. The Administrative Agent will promptly advise the Swingline Lender of any such
notice received from the Borrower. The Swingline Lender shall make each Swingline Loan available
to the Borrower by means of a credit to the general deposit account of the Borrower with the
Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.06(e), by remittance to the Issuing Bank) by 4:00
p.m., Houston time, on the requested date of such Swingline Loan.

          (c) The Swingline Lender may by written notice given to the Administrative Agent not later
than 10:00 a.m., Houston time, on any Business Day require the Lenders to acquire participations on
such Business Day in all or a portion of the Swingline Loans outstanding. Such notice shall
specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to each Lender,
specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans.
Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above,
to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that
its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or reduction or termination of the Commitments, and that
each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.
Each Lender shall comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.07 with respect to Loans made
by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations
of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the
amounts so received by it from the Lenders. The Administrative Agent shall notify the Borrower of
any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter
payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party
on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of
the proceeds of a sale of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the
Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph
and to the Swingline Lender, as their interests may appear; provided that any such payment
so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable,
if and to the extent such payment is required to be refunded to the Borrower for any reason. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the
Borrower of any default in the payment thereof.

          Section 2.06 Letters of Credit.

          (a) General. Subject to the terms and conditions set forth herein, the Borrower may
request the issuance of Letters of Credit for its own account, in a form reasonably acceptable to
the Administrative Agent and the Issuing Bank, at any time and from time to time during the
Availability Period. In the event of any inconsistency between the terms and

 -20-

 

conditions of this Agreement and the terms and conditions of any form of letter of credit
application or other agreement submitted by the Borrower to, or entered into by the Borrower with,
the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall
control.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication,
if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal
or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance, amendment, renewal
or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire
(which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the
Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in
connection with any request for a Letter of Credit; provided that (a) in the event of any
conflict between such application and this Agreement, this Agreement shall control, and (b) any
grant of a Lien contained in such application shall be ineffective so long as this Agreement
remains in place. A Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or
extension (i) the LC Exposure shall not exceed $175,000,000 and (ii) the total Credit Exposures
shall not exceed the total Commitments.

     (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five Business Days prior to the Maturity Date
provided, a Letter of Credit may provide for a later expiration date if, simultaneously
with the issuance (or if applicable, the renewal) thereof, the Borrower pledges to the Issuing
Bank, in a manner reasonably satisfactory to it, funds in an account with the Issuing Bank equal to
105% of the face amount of such Letter of Credit.

     (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Lenders, the Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.
In consideration and in furtherance of the foregoing, each Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by the Issuing Bank and not
reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any
reimbursement payment required to be refunded to the Borrower for any reason. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this

-21-

 

paragraph in respect of Letters of Credit is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative
Agent an amount equal to such LC Disbursement not later than 11:00 a.m., Houston time, on the date
that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 9:00 a.m., Houston time, on such date, or, if such notice has not been
received by the Borrower prior to such time on such date, then not later than 11:00 a.m., Houston
time, on (i) the Business Day that the Borrower receives such notice, if such notice is received
prior to 9:00 a.m., Houston time, on the day of receipt, or (ii) the Business Day immediately
following the day that the Borrower receives such notice, if such notice is not received prior to
such time on the day of receipt; provided that, if such LC Disbursement is not less than
$1,000,000, the Borrower may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.03 or Section 2.05 that such payment be financed with a
CBFR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed,
the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting
CBFR Revolving Borrowing or Swingline Loan. If the Borrower fails to make such payment when due,
the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender’s Applicable Percentage thereof.
Promptly following receipt of such notice, each Lender shall pay to the Administrative Agent its
Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in
Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the Administrative Agent
shall promptly pay to the Issuing Bank the amounts so received by it from the Lenders. Promptly
following receipt by the Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to the
extent that Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank,
then to such Lenders and the Issuing Bank as their interests may appear. Any payment made by a
Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than
the funding of CBFR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute
a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

          (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as
provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and
shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any
Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any
respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by the
Issuing Bank under a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance

-22-

 

whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this Section, constitute a legal or equitable discharge of, or provide a right of setoff
against, the Borrower’s obligations hereunder. Neither the Administrative Agent, the Lenders nor
the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to consequential damages,
claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable
law) suffered by the Borrower that are caused by the Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of Credit comply with the
terms thereof. The parties hereto expressly agree that, in the absence of negligence or willful
misconduct on the part of the Issuing Bank (as finally determined by a court of competent
jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion,
either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by
telephone (confirmed electronically or by telecopy) of such demand for payment and whether the
Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure
to give or delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to CBFR Revolving Loans; provided that,
if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph
shall be for the account of the Issuing Bank, except that interest accrued on and after the date of
payment by any Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall
be for the account of such Lender to the extent of such payment.

-23-

 

          (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of the Issuing Bank. At the time any such replacement shall become effective, the Borrower shall
pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section
2.12(b). From and after the effective date of any such replacement, (i) the successor Issuing
Bank shall have all the rights and obligations of the Issuing Bank under this Agreement with
respect to Letters of Credit to be issued thereafter and (ii) references herein to the term
“Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall require. After the replacement
of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrower receives notice from the Administrative Agent or the Lenders
holding at least fifty percent (50%) of the Commitments (or, if the maturity of the Loans has been
accelerated, Lenders with LC Exposure representing greater than 25% of the total LC Exposure)
demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in
an account with the Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued
and unpaid interest thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately due and payable,
without demand or other notice of any kind, upon the occurrence of any Event of Default with
respect to the Borrower described in clause (h) or (i) of ARTICLE VII. Such deposit shall
be held by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such account. Other than
any interest earned on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such
deposits shall not bear interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to
reimburse the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the
extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the
Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Lenders with LC Exposure representing greater than 25% of the total
LC Exposure), be applied to satisfy other obligations of the Borrower to the Lenders under this
Agreement. If the Borrower is required to provide an amount of cash collateral hereunder as a
result of the occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after all Events of Default
have been cured or waived.

          (k) Existing Letters of Credit. The letters of credit described on Schedule
2.06(k) will for all purposes be considered Letters of Credit under this Credit Agreement.

-24-

 

          Section 2.07 Funding of Borrowings.

          (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds by 2:00 p.m., Houston time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice to the Lenders;
provided that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the Borrower by promptly crediting the
amounts so received, in like funds, to an account of the Borrower maintained with the
Administrative Agent in Houston and designated by the Borrower in the applicable Borrowing Request;
provided that CBFR Revolving Loans made to finance the reimbursement of an LC Disbursement
as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the Issuing
Bank.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any 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 paragraph (a) of this Section 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 with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest
rate applicable to such Borrowing (without any obligation to pay any break funding payment under
Section 2.16 in connection with such payment). If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing. If the Borrower pays such amount to the Administrative Agent, it shall not relieve the
defaulting Lender of its legal responsibility for its default.

          Section 2.08 Interest Elections.

          (a) Each Borrowing initially shall be of the Type specified in the applicable Borrowing
Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as
specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing
to a different Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing, may
elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing. This Section
shall not apply to Swingline Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would

-25-

 

be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing
of the Type resulting from such election to be made on the effective date of such election. Each
such telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by
hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a
form approved by the Administrative Agent and signed by the Borrower.

          (c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

(i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions
thereof to be allocated to each resulting Borrowing (in which case the information
to be specified pursuant to clauses (iii) and (iv) below shall be specified for each
resulting Borrowing);

(ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be a CBFR Borrowing or a Eurodollar
Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower fails to deliver a timely Interest Election Request with respect to a
Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such
Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
converted to a CBFR Borrowing. Notwithstanding any contrary provision hereof, if an Event of
Default has occurred and is continuing and the Administrative Agent, at the request of the Required
Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless
repaid, each Eurodollar Borrowing shall be converted to a CBFR Borrowing at the end of the Interest
Period applicable thereto.

          Section 2.09 Termination and Reduction of Commitments.

          (a) Unless previously terminated, the Commitments shall terminate on the Maturity Date.

-26-

 

          (b) The Borrower may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Revolving Loans in accordance with Section 2.11, the Credit Exposure would exceed the total
Commitments; provided that for purposes of this paragraph, the LC Exposure shall be deemed
to be zero if there exists either cash collateral equal to 105% of the LC Exposure or one or more
back-up letters of credit for the benefit of the Issuing Bank in form and substance and issued by
issuer(s) satisfactory to the Issuing Bank in its sole discretion. Upon the provision of such cash
collateral or back-up letters of credit and the payment in full of all Obligations, then the
Lenders shall be released from their obligations under Section 2.06(d), and all letter of
credit fees accruing after the termination of the Commitments shall be for the account of the
Issuing Bank.

          (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce
the Commitments under paragraph (b) of this Section at least three Business Days prior to the
effective date of such termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Borrower may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent. Each reduction of
the Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

          Section 2.10 Repayment of Loans; Evidence of Debt.

          (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for
the account of each Lender the then-unpaid principal amount of each Revolving Loan on the Maturity
Date and (ii) subject to Section 2.05, to the Swingline Lender the then unpaid principal
amount of each Swingline Loan on the earlier of the Maturity Date and the first date after such
Swingline Loan is made that is the 15th or last day of a calendar month and is at least two
Business Days after such Swingline Loan is made; provided that on each date that a
Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice a record evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including
the amounts of principal and interest payable and paid to such Lender from time to time hereunder.

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

-27-

 

by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share
thereof.

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

          (e) Any Lender may request that Loans made by it be evidenced by a Note. In such event, the
Borrower shall prepare, execute and deliver to such Lender a Note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its registered assigns). Thereafter,
the Loans evidenced by such promissory note and interest thereon shall at all times (including
after assignment pursuant to Section 9.04) be represented by one or more promissory notes
in such form payable to the order of the payee named therein (or, if such promissory note is a
registered note, to such payee and its registered assigns).

          Section 2.11 Prepayment of Loans.

          (a) The Borrower shall have the right at any time and from time to time to prepay any
Revolving Borrowing in whole or in part, subject to prior notice in accordance with paragraph (c)
of this Section.

          (b) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment
hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m.,
Houston time, three Business Days before the date of prepayment, (ii) in the case of prepayment of
a CBFR Revolving Borrowing, not later than 11:00 a.m., Houston time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00
noon, Houston time, on the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or portion thereof to be
prepaid; provided that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09, then such notice
of prepayment may be revoked if such notice of termination is revoked in accordance with
Section 2.09. Promptly following receipt of any such notice relating to a Revolving
Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Each partial
prepayment of any Revolving Borrowing shall be in an amount that would be permitted in the case of
an advance of a Revolving Borrowing of the same Type as provided in Section 2.02. Each
prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
Prepayments shall be accompanied by accrued interest to the extent required by Section
2.13.

          Section 2.12 Fees.

          (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the Commitment Fee Rate described in the definition of
“Applicable Margin” on the daily undrawn amount of the Commitment of such

-28-

 

Lender during the period from and including the Effective Date to but excluding the date on
which such Commitment terminates. The face amount of any outstanding Letters of Credit shall be
considered to be drawn under the Commitment for purposes of calculating commitment fees. Accrued
commitment fees shall be payable in arrears on the last day of March, June, September and December
of each year and on the date on which the Commitments terminate, commencing on the first such date
to occur after the date hereof. All commitment fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

          (b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender
a participation fee with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Margin used to determine the interest rate applicable to Eurodollar Revolving
Loans on the average daily amount of such Lender’s LC Exposure (excluding any portion thereof
attributable to unreimbursed LC Disbursements) during the period from and including the Effective
Date to but excluding the later of the date on which such Lender’s Commitment terminates and the
date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting
fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC
Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the
period from and including the Effective Date to but excluding the later of the date of termination
of the Commitments and the date on which there ceases to be any LC Exposure, as well as the Issuing
Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any Letter of
Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through
and including the last day of March, June, September and December of each year shall be payable on
the third Business Day following such last day, commencing on the first such date to occur after
the Effective Date; provided that all such fees shall be payable on the date on which the
Commitments terminate and any such fees accruing after the date on which the Commitments terminate
shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph
shall be payable within 10 days after demand. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual number of days
elapsed (including the first day but excluding the last day).

          (c) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable
in the amounts and at the times separately agreed upon between the Borrower and the Administrative
Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of facility fees and participation fees, to the Lenders. Fees paid shall
not be refundable under any circumstances.

          Section 2.13 Interest.

          (a) The Loans comprising each CBFR Borrowing (including each Swingline Loan) shall bear
interest at the CB Floating Rate plus the Applicable Margin.

-29-

 

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Margin.

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2.0% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2.0% plus the rate applicable to CBFR Loans as provided in
paragraph (a) of this Section.

          (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Commitments; provided that (i) interest accrued
pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any
repayment or prepayment of any Loan (other than a prepayment of a CBFR Revolving Loan prior to the
end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall
be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of
any Eurodollar Revolving Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

          (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the CB Floating Rate at times when the CB Floating Rate is based
on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable CB Floating Rate, Adjusted LIBO Rate or LIBO Rate
shall be determined by the Administrative Agent, and such determination shall be conclusive absent
manifest error.

          Section 2.14 Alternate Rate of Interest. If prior to the commencement of any Interest
Period for a Eurodollar Borrowing:

     (i) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

     (ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period will not adequately and
fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or
its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer
exist, (i) any Interest Election Request that requests the conversion of any Revolving Borrowing

-30-

 

to, or continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be ineffective, and
(ii) any request for a new Eurodollar Borrowing shall be made as a CBFR Borrowing.

Section 2.15 Increased Costs.

(a) If any Change in Law shall:

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

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

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank, as the case may be, or an after-tax basis for such
additional costs incurred or reduction suffered.

          (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or
the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company on an after-tax
basis for any such reduction suffered.

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

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrower shall not be

-31-

 

required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased
costs or reductions incurred more than one hundred eighty (180) days prior to the date that such
Lender or the Issuing Bank, 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 Issuing Bank’s intention to
claim compensation therefor; provided further that, if the Change in Law giving
rise to such increased costs or reductions is retroactive, then the 180-day period referred to
above shall be extended to include the period of retroactive effect thereof.

          Section 2.16 Break Funding Payments.
In the event of (a) the payment of any principal of
any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including
as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.11(b) and is revoked in
accordance therewith), or (d) the assignment of any Eurodollar Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section
2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and
expense attributable to such event. In the case of a Eurodollar Loan, such loss, cost or expense
to any Lender shall be deemed to include an amount determined by such Lender to be the excess, if
any, of (i) the amount of interest which would have accrued on the principal amount of such Loan
had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then current Interest
Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that
would have been the Interest Period for such Loan), over (ii) the amount of interest which would
accrue on such principal amount for such period at the interest rate which such Lender would bid
were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the Eurodollar market. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after receipt
thereof.

          Section 2.17 Taxes.

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

          (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

-32-

 

          (c) The Borrower shall indemnify the Administrative Agent, each Lender and the Issuing Bank,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of the Borrower hereunder (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) 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. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender or the Issuing Bank, or by the Administrative Agent
on its own behalf or on behalf of a Lender or the Issuing Bank, shall be conclusive absent manifest
error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent the
original or a certified copy of a receipt issued by such Governmental Authority evidencing such
payment, a copy of the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower as will permit such payments to be made without withholding or at a
reduced rate.

          (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received 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
2.17, it shall pay over such refund to the Borrower (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section 2.17 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses
of the Administrative Agent or such Lender 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 or such Lender, 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 or such Lender in the event the Administrative
Agent or such Lender is required to repay such refund to such Governmental Authority. This Section
shall not be construed to require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

          Section 2.18 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) The Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under
Section 2.15, Section 2.16 or Section 2.17, or otherwise) prior to 12:00

-33-

 

noon, Houston time, on the date when due, in immediately available funds, without set off or
counterclaim. Any amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative
Agent at its offices at 712 Main Street, Houston, Texas, except payments to be made directly to the
Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to
Section 2.15, Section 2.16 or Section 2.17 and Section 9.03 shall
be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the appropriate recipient
promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in
the case of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars.

          (b) If at any time insufficient funds are received by and available to the Administrative
Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then
due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest
and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed
LC Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with
the amounts of principal and unreimbursed LC Disbursements then due to such parties.

          (c) If any Lender shall, by exercising any right of set off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any
other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving Loans and participations in LC Disbursements and Swingline
Loans of other Lenders to the extent necessary 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 Revolving Loans and participations in LC Disbursements and Swingline
Loans; provided that (i) if any such participations are purchased and all or any portion of
the payment giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and (ii) the provisions
of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to
and in accordance with the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements to any assignee or participant, other than to the Borrower or
any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph 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 set-off 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.

-34-

 

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

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05(c), Section 2.06(d), Section 2.06(e), Section 2.07(b),
Section 2.18(d), or Section 9.03(c) then the Administrative Agent may, in its
discretion and notwithstanding any contrary provision hereof, (i) apply any amounts thereafter
received by the Administrative Agent for the account of such Lender and for the benefit of the
Administrative Agent, the Swingline Lender or the Issuing Bank to satisfy such Lender’s obligations
under such Sections until all such unsatisfied obligations are fully paid, and/or (ii) hold any
such amounts in a segregated account as cash collateral for, and application to, any future funding
obligations of such Lender under such Sections; in the case of each of (i) and (ii) above, in any
order as determined by the Administrative Agent in its discretion.

          Section 2.19 Mitigation Obligations; Replacement of Lenders.

          (a) If any Lender requests compensation under Section 2.15, 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 2.17, then such Lender shall 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, such designation or assignment (i) would eliminate or reduce amounts
payable pursuant to Section 2.15 or Section 2.17, as the case may be, in the future
and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.15, 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 2.17, or if any Lender becomes 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 Section 9.04), all its interests, rights and obligations
under this Agreement to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall
have received the prior written consent of the Administrative Agent (and, if a

-35-

 

Commitment is being assigned, the Issuing Bank), which consent shall not unreasonably be
withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and Swingline Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, 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) and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section
2.17, such assignment will result in a reduction in such compensation or payments in the
future. A Lender shall not be required to make any such assignment and 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.

          (c) If any Lender fails to consent to an issue requiring approval in an instance where Lenders
holding greater than 50% of the aggregate amount of the Loans and unused Commitments have provided
a consent, then the Borrower may require such non-consenting Lender to assign all of its
outstanding Loans and unused Commitments, at par, to another lender acceptable to the Borrower and
the Administrative Agent which is not an Affiliate of the Borrower.

          Section 2.20 Increase in the Commitments. The Borrower may on no more than two occasions
during the period beginning on the date hereof to and including the date that is six months prior
to the Maturity Date, by written notice to the Administrative Agent executed by the Borrower and
one or more financial institutions (any such financial institution referred to in this Section
being called an “Increasing Lender”), which may include any Lender, cause the Commitments to be
extended by the Increasing Lenders (or cause the Commitments of the Increasing Lenders to be
increased, as the case may be) in an amount for each Increasing Lender set forth in such notice;
provided, that (i) each extension of new Commitments or increase in existing Commitments pursuant
to this paragraph shall result in the aggregate Commitments being increased by no less than
$10,000,000, (ii) no extension of new Commitments or increase in existing Commitments pursuant to
this paragraph may result in the aggregate Commitments exceeding $500,000,000, (iii) each
Increasing Lender, if not already a Lender hereunder, shall be subject to the approval of the
Administrative Agent (which approval shall not be unreasonably withheld) and (iv) each Increasing
Lender, if not already a Lender hereunder, shall become a party to this Agreement by completing and
delivering to the Administrative Agent a duly executed accession agreement in a form reasonably
satisfactory to the Administrative Agent and the Borrower (an “Accession Agreement”). New
Commitments and increases in Commitments shall become effective on the date specified in the
applicable notices delivered pursuant to this paragraph. Upon the effectiveness of any Accession
Agreement to which any Increasing Lender is a party, (i) such Increasing Lender shall thereafter be
deemed to be a party to this Agreement and shall be entitled to all rights, benefits and privileges
accorded a Lender hereunder and subject to all obligations of a Lender hereunder and (ii) Schedule
2.01 shall be deemed to have been amended to reflect the Commitment of such Increasing Lender as
provided in such Accession Agreement. Upon the effectiveness of any increase pursuant to this
Section in the Commitment of a Lender already a party hereto, Schedule 2.01 shall be deemed to have
been amended to reflect the increased Commitment of such Lender. Notwithstanding the foregoing, no
increase in the aggregate Commitments (or in the Commitment of any Lender) shall become effective
under this Section unless, on the date of such increase, the Administrative Agent shall

-36-

 

have received a certificate, dated as of the effective date of such increase and executed
by a Financial Officer of the Borrower, to the effect that the conditions set forth in paragraphs
(i) and (ii) of Section 4.02 shall be satisfied (with all references in such paragraphs to a
Borrowing being deemed to be references to such increase and attaching resolutions of the Borrower
approving such increase). Following any extension of a new Commitment or increase of a Lender’s
Commitment pursuant to this paragraph, any Revolving Loans outstanding prior to the effectiveness
of such increase or extension shall continue to be outstanding until the ends of the respective
Interests Periods applicable thereto, and shall then be repaid and, if the Borrower shall so elect,
refinanced with new Revolving Loans made pursuant to Section 2.01 ratably in accordance with the
Commitments in effect following such extension or increase.

          Section 2.21
Defaulting Lenders. Notwithstanding any provision of this Agreement to the
contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for
so long as such Lender is a Defaulting Lender:

          (a) fees shall cease to accrue on the unfunded portion of the Commitment of such Defaulting
Lender pursuant to Section 2.12(a);

          (b) the Commitment and Credit Exposure of such Defaulting Lender shall not be included in
determining whether all Lenders or the Required Lenders have taken or may take any action hereunder
(including any consent to any amendment or waiver pursuant to Section 9.02),
provided that any waiver, amendment or modification requiring the consent of all Lenders or
each affected Lender which affects such Defaulting Lender differently than other affected Lenders
shall require the consent of such Defaulting Lender, unless the effect of same is to eliminate the
Defaulting Lender’s Commitment (which shall require only the consent of the Lenders that are not
Defaulting Lenders);

          (c) if any Swingline Exposure or LC Exposure exists at the time a Lender becomes a Defaulting
Lender then:

     (i) all or any part of such Swingline Exposure and LC Exposure shall be reallocated
among the non-Defaulting Lenders in accordance with their respective Applicable Percentages
but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving Credit Exposures
plus such Defaulting Lender’s Swingline Exposure and LC Exposure does not exceed the total
of all non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section
4.02 are satisfied at such time;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Borrower shall within one Business Day following notice by the
Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash
collateralize such Defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the procedures set forth in
Section 2.06(j) for so long as such LC Exposure is outstanding;

     (iii) if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC
Exposure pursuant to Section 2.21(c), the Borrower shall not be required to pay any
fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such

-37-

 

Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure
is cash collateralized;

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to
Section 2.21(c), then the fees payable to the Lenders pursuant to Section
2.12(a) and Section 2.12(b) shall be adjusted in accordance with such
non-Defaulting Lenders’ Applicable Percentages; and

     (v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor
reallocated pursuant to Section 2.21(c), then, without prejudice to any rights or
remedies of the Issuing Bank or any Lender hereunder, all facility fees that otherwise would
have been payable to such Defaulting Lender (solely with respect to the portion of such
Defaulting Lender’s Commitment that was utilized by such LC Exposure) and letter of credit
fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC
Exposure shall be payable to the Issuing Bank until such LC Exposure is cash collateralized
and/or reallocated; and

          (d) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required
to fund any Swingline Loan and the Issuing Bank shall not be required to issue, amend or increase
any Letter of Credit, unless it is reasonably satisfied that the related exposure will be 100%
covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by
the Borrower in accordance with Section 2.21(c), and participating interests in any such
newly issued or increased Letter of Credit or newly made Swingline Loan shall be allocated among
non-Defaulting Lenders in a manner consistent with Section 2.21(c)(i) (and Defaulting
Lenders shall not participate therein).

          In the event that the Administrative Agent, the Borrower, the Issuing Bank and the Swingline
Lender each agrees that a Defaulting Lender has adequately remedied all matters that caused such
Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall
be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender
shall purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the
Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans
in accordance with its Applicable Percentage.

ARTICLE III

Representations and Warranties

The Borrower represents and warrants to the Lenders that:

          Section 3.01
Organization; Powers. Each of the Borrower and its Subsidiaries is duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as now conducted and,
except where the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

-38-

 

          Section 3.02
Authorization; Enforceability. The Transactions are within the Borrower’s
corporate powers and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by the Borrower and
constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law.

          Section 3.03
Governmental Approvals; No Conflicts. The Transactions (a) do not require
any consent or approval of, registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and effect, (b) will not
violate any applicable law or regulation or the charter, by-laws or other organizational documents
of the Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) will not
violate or result in a default under any indenture, agreement or other instrument binding upon the
Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require
any payment to be made by the Borrower or any of its Subsidiaries, and (d) will not result in the
creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.

          Section 3.04 
Financial Condition; No Material Adverse Change.

          (a) The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended
December 31, 2008, reported on by PriceWaterhouseCoopers LLP, independent public accountants, and
(ii) as of and for the fiscal quarter ended September 30, 2009 and the nine months then ended
certified by its chief financial officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash flows of the Borrower
and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year end audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above.

          (b) Since December 31, 2008, there has been no material adverse change in the business,
assets, operations, prospects or condition, financial or otherwise, of the Borrower and its
Subsidiaries, taken as a whole.

          Section 3.05 Properties.

          (a) Each of the Borrower and its Subsidiaries has good title to, or valid leasehold interests
in, all its real and personal property material to its business, except for minor defects in title
that do not interfere with its ability to conduct its business as currently conducted or to utilize
such properties for their intended purposes.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property material to its business, and the
use thereof by the Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

-39-

 

          Section 3.06 Litigation and Environmental Matters.

          (a) There are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any of its Subsidiaries (i) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii)
that involve this Agreement or the Transactions.

          (b) Except with respect to any other matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, neither the Borrower nor any of its
Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental Liability.

          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in, or materially increased the
likelihood of, a Material Adverse Effect.

          Section 3.07
Compliance with Laws and Agreements. Each of the Borrower and its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

          Section 3.08
Investment and Holding Company Status. Neither the Borrower nor any of its
Subsidiaries is an “investment company” as defined in, or subject to regulation under, the
Investment Company Act of 1940.

          Section 3.09
Taxes. Each of the Borrower and its Subsidiaries has timely filed or caused
to be filed all Tax returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable, has
set aside on its books adequate reserves or (b) to the extent that the failure to do so could not
reasonably be expected to result in a Material Adverse Effect.

          Section 3.10
ERISA. No ERISA Event has occurred or is reasonably expected to occur that,
when taken together with all other such ERISA Events for which liability is reasonably expected to
occur, could reasonably be expected to result in a Material Adverse Effect. The present value of
all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of
Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent
financial statements reflecting such amounts, exceed by more than $30,000,000 the fair market value
of the assets of such Plan, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for

-40-

 

purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of
the most recent financial statements reflecting such amounts, exceed by more than $50,000,000 the
fair market value of the assets of all such underfunded Plans.

          Section 3.11
Disclosure. The Borrower has disclosed to the Lenders all agreements,
instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject,
and all other matters known to it, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect. Neither the Information Memorandum nor any of the
other reports, financial statements, certificates or other information furnished by or on behalf of
the Borrower to the Administrative Agent or any Lender in connection with the negotiation of this
Agreement or delivered hereunder (as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

          Section 3.12
Subsidiaries. Schedule 3.12 sets forth the name of, and the ownership
interest of the Borrower and any Subsidiary in, each Subsidiary of the Borrower and identifies
which are Foreign Subsidiaries, Excluded Subsidiaries and Guarantors as of the date hereof. The
shares of capital stock or other ownership interests of each Subsidiary are owned by the Borrower,
directly or indirectly, free and clear of all Liens.

          Section 3.13
Margin Stock. Neither the Borrower nor any Subsidiary is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose of buying or carrying Margin Stock (as defined in Registration U of the Board). The
proceeds of the Loans and the Letters of Credit will not be used in a way that will result in any
of the Loans or the Letters of Credit under this Agreement being violative of Regulation U or
Regulation X of the Board.

          Section 3.14
Use of Proceeds. The proceeds of the Loans shall be used to repay existing
Indebtedness, to finance, in part, the Merger, for working capital and for general corporate
purposes of, in each case, the Borrower and its Subsidiaries. The Borrower represents and warrants
to the Lenders and the Administrative Agent that all Loans will be for business, commercial,
investment or other similar purpose and not primarily for personal, family, household or
agricultural use, as such terms are used in the Texas Finance Code.

          Section 3.15
Solvency. Immediately following the making of each Loan on the Effective
Date and after giving effect to the application of the proceeds of each Loan, (a) the fair market
value of the assets of each Loan Party (individually and on a consolidated basis) will exceed its
debts and liabilities; (b) the present fair saleable value of the property of each Loan Party
(individually and on a consolidated basis) will be greater than the amount that will be required to
pay the probable liability of its debts and other liabilities; (c) each Loan Party (individually
and on a consolidated basis) will be able to pay its debts and liabilities as they become absolute
and mature; and (d) each Loan Party (individually and on a consolidated basis the Borrower and each
of its Subsidiaries) will not have unreasonably small capital with which to

-41-

 

conduct its business as such business is now conducted and is proposed to be conducted
following the Effective Date.

ARTICLE IV

Conditions

          Section 4.01
Effective Date. The obligations of the Lenders to make Loans and of the
Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on
which the Administrative Agent (or its counsel) shall have received from each Loan Party, in form
and substance satisfactory to it:

          (a) either (i) a counterpart of this Agreement signed by the Borrower or (ii) written evidence
satisfactory to the Administrative Agent (which may include electronic or telecopy transmission of
signed signature pages) that the Borrower has signed a counterpart of this Agreement;

          (b) a Note for each Lender requesting a Note;

          (c) the executed Guarantee Agreement (or electronic or telecopy copy of a signed signature
page thereof) from each Domestic Subsidiary other than the Excluded Subsidiaries and all Foreign
Subsidiaries or Excluded Subsidiaries as required by Section 5.10;

          (d) favorable written opinions (addressed to the Administrative Agent and the Lenders and
dated the Effective Date) of Locke Lord Bissell & Liddell LLP, counsel for the Borrower and the
Guarantors and the general counsel of the Borrower and covering such matters relating to the
Borrower, the Guarantors, this Agreement or the Transactions as the Required Lenders shall
reasonably request. The Borrower hereby requests such counsel to deliver such opinion;

          (e) such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of the Borrower, the
authorization of the Transactions and any other legal matters relating to the Borrower, this
Agreement or the Transactions, all in form and substance satisfactory to the Administrative Agent
and its counsel;

          (f) a certificate, dated the Effective Date and signed by the President, a Vice President or a
Financial Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (i) and (ii) of Section 4.02;

          (g) (i) satisfactory audited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows of the Borrower for the two most recent fiscal years ended
prior to the Effective Date as to which such financial statements are available and (ii)
satisfactory unaudited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows of the Borrower for each quarterly period ended subsequent to
the date of the latest financial statements delivered pursuant to clause (i) of this Section
4.01(g) as to which such financial statements are available;

-42-

 

          (h) Borrowing Request (substantially in the form of Exhibit 4.01(h) hereto);

          (i) evidence of liability and hazard insurance for each Loan Party in such amounts and on such
terms as are standard and customary in the industry in which said entities conduct their
operations;

          (j) all information regarding the Borrower and its Subsidiaries that it is required to collect
pursuant to the USA Patriot Act;

          (k) all fees and other amounts due and payable on or prior to the Effective Date, including,
to the extent invoiced, reimbursement or payment of all out of pocket expenses required to be
reimbursed or paid by the Borrower hereunder;

          (l) evidence reasonably satisfactory to the Administrative Agent as to the payment in full of
the Private Placement Notes, before or concurrently with the effectiveness of this Agreement; and

          (m) such other documents or items as the Administrative Agent may reasonably request.

          Section 4.02
Each Credit Event. The obligation of each Lender to make a Loan on the
occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the satisfaction of the following conditions:

     (i) The representations and warranties of the Borrower set forth in this Agreement
shall be true and correct on and as of the date of such Borrowing or the date of issuance,
amendment, renewal or extension of such Letter of Credit, as applicable.

     (ii) At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, (i) no
Default shall have occurred and be continuing and (ii) there shall have been no events that
have, or could reasonably be expected to cause, a Material Adverse Effect since the date of
the last such issuance or Borrowing.

     (iii) A Borrowing Request.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date thereof as to the
matters specified in paragraphs (i) and (ii) of this Section.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, the Borrower
covenants and agrees with the Lenders that:

-43-

 

          Section 5.01
Financial Statements; Ratings Change and Other
Information. The Borrower
will furnish to the Administrative Agent (in electronic or hard copy form):

     (i) within 90 days after the end of each fiscal year of the Borrower, its audited
consolidated balance sheet and related statements of operations, stockholders’ equity and
cash flows as of the end of and for such year, setting forth in each case in comparative
form the figures for the previous fiscal year, all reported on by PriceWaterhouseCoopers or
other independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or exception as to
the scope of such audit) to the effect that such consolidated financial statements present
fairly in all material respects the financial condition and results of operations of the
Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP
consistently applied;

     (ii) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Borrower, its consolidated balance sheet and related statements of
operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter
and the then elapsed portion of the fiscal year, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by one of its Financial
Officers as presenting fairly in all material respects the financial condition and results
of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes;

     (iii) concurrently with any delivery of financial statements under clause (i) or (ii)
above, a certificate of a Financial Officer of the Borrower (i) certifying as to whether a
Default has occurred and, if a Default has occurred, specifying the details thereof and any
action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Section 3.10, Section
6.01, Section 6.07, Section 6.09 and Section 6.12 (in the form
of compliance certificate attached hereto as Exhibit 5.01) and (iii) stating whether
any change in GAAP or in the application thereof has occurred since the date of the audited
financial statements referred to in Section 3.04 and, if any such change has
occurred, specifying the effect of such change on the financial statements accompanying such
certificate;

     (iv) concurrently with any delivery of financial statements under clause (i) above, an
annual budget of the Borrower and the Subsidiaries for such fiscal year;

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

     (vi) promptly following the occurrence thereof, notice of any change in any rating of
the Borrower by Moody’s or S&P; and

-44-

 

     (vii) promptly following any request therefor, such other information regarding the
operations, business affairs and financial condition of the Borrower or any Subsidiary, or
compliance with the terms of this Agreement, as the Administrative Agent or any Lender may
reasonably request.

          Section 5.02
Notices of Material Events. The Borrower will furnish to the Administrative
Agent prompt written notice of the following:

     (i) the occurrence of any Default;

     (ii) the filing or commencement of any action, suit or proceeding by or before any
arbitrator or Governmental Authority against or affecting the Borrower or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result in a Material
Adverse Effect;

     (iii) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in liabilities of the
Borrower and its Subsidiaries increasing after the Effective Date in an aggregate amount
exceeding $5,000,000; and

     (iv) any other development that results in, or could reasonably be expected to result
in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect thereto.

          Section 5.03 Existence; Conduct of Business. The Borrower will, and will cause each of
its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business unless the failure to do so could not reasonably
be expected to have a Material Adverse Effect; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 6.05.

          Section 5.04 Payment of Obligations. The Borrower will, and will cause each of its
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in
a Material Adverse Effect before the same shall become delinquent or in default, except where (a)
the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect.

          Section 5.05 Maintenance of Properties. The Borrower will, and will cause each of its
Subsidiaries to keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted.

-45-

 

          Section 5.06 Books and Records; Inspection Rights. The Borrower will, and will cause each
of its Subsidiaries to, keep proper books of record and account in which full, true and correct
entries are made of all dealings and transactions in relation to its business and activities. The
Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by
the Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and as often as reasonably requested.

          Section 5.07 Compliance with Laws. The Borrower will, and will cause each of its
Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority
applicable to it or its property, including, without limitation, Environmental Laws, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

          Section 5.08 Use of Proceeds and Letters of Credit. The proceeds of the Loans will be
used only to pay the Private Placement Notes, to finance the Acquisitions and for working capital
and general corporate purposes. No part of the proceeds of any Loan will be used, whether directly
or indirectly, for any purpose that entails a violation of any of the Regulations of the Board,
including Regulations T, U and X. Letters of Credit will be issued only to support the general
corporate purposes of the Borrower and its Subsidiaries.

          Section 5.09 Insurance. The Borrower will, and will cause each of the Subsidiaries to,
maintain, with financially sound and reputable insurance companies, insurance in such amounts (with
no greater risk retention) and against such risks as are customary among companies of established
reputation engaged in the same or similar businesses and operating in the same or similar
locations. The Borrower will furnish to the Lenders, upon request of the Administrative Agent,
information in reasonable detail as to the insurance so maintained.

          Section 5.10 Required Guarantors.

          (a) If any Domestic Subsidiary (other than an Excluded Subsidiary, subject to paragraph (b)
below) is formed or acquired (including, without limitation, pursuant to the Acquisitions) after
the Effective Date, the Borrower will, within ten (10) Business Days, notify the Administrative
Agent and the Lenders thereof and promptly but in no event later than twenty (20) Business Days
after such formation or acquisition cause the Subsidiary to execute a Guarantee Agreement; provided
that, any Domestic Subsidiary of Keystone North America, Inc. shall not be required to execute a
Guarantee Agreement until such time as it is a wholly-owned Subsidiary of the Borrower.

          (b) If, at any time, (i) the aggregate consolidated revenues of Foreign Subsidiaries and
Excluded Subsidiaries exceed twenty percent (20%) of the aggregate total consolidated revenue for
the most recently ended period of four (4) fiscal quarters of the Borrower or (ii) the aggregate
consolidated assets of Foreign Subsidiaries and Excluded Subsidiaries exceeds twenty percent (20%)
of the aggregate total consolidated assets as of the end of the most recently ended fiscal quarter
of the Borrower and all of its Subsidiaries, the Borrower shall promptly cause one or more of said
Foreign Subsidiaries or Excluded

-46-

 

Subsidiaries to execute a Guarantee Agreement such that, after giving effect to such Guarantee
Agreement, both the aggregate consolidated revenue and the aggregate consolidated assets (measured
according to book value basis), of all Foreign Subsidiaries and all Excluded Subsidiaries that have
not executed a Guaranty, are less than twenty percent (20%) of the total consolidated revenue and
total assets of the Borrower and all of its Subsidiaries.

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees payable hereunder have been paid in full and all Letters of Credit have expired
or terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and
agrees with the Lenders that:

          Section 6.01 Indebtedness Covenant. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness, except:

          (a) Indebtedness created under the Loan Documents;

          (b) Intentionally Deleted;

          (c) Indebtedness existing on the Effective Date and set forth on Schedule 6.01(c)
hereto and extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount or change the parties directly or indirectly responsible for the
payment thereof; provided that any such refinancing Indebtedness (A) shall be unsecured and
(B) shall not mature before the earlier of (x) the maturity date of the Indebtedness refinanced and
(y) the date six months following the Maturity Date;

          (d) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or
any other Subsidiary; provided that Indebtedness of any Subsidiary that is not a Guarantor
to the Borrower or any other Loan Party shall be subject to Section 6.06 below;

          (e) Unsecured Guarantees by the Borrower of Indebtedness of any Subsidiary and Guarantees by
any Guarantor of Indebtedness of any other Guarantor, to the extent said Indebtedness is permitted
hereunder; provided that such Guarantees of Indebtedness of any Subsidiary that is not a
Guarantor shall be subject to Section 6.06 below;

          (f) Indebtedness of the Borrower or any Subsidiary incurred after the Effective Date under
purchase money financings meeting the requirements of Section 6.01(g) other than proviso
(ii) therein and leases (collectively, “Transportation Equipment Transactions”), in each
case of motor vehicles (including off-road vehicles) and aircraft;

          (g) (A) Indebtedness of the Borrower or any Subsidiary incurred after the Effective Date to
finance the acquisition, construction or improvement of any fixed or capital assets, including
Capital Lease Obligations and any Indebtedness assumed in connection with the acquisition of any
such assets, or secured by a Lien on any such assets prior to the acquisition thereof, and
extensions, renewals and replacements of any such Indebtedness that do not increase

-47-

 

the outstanding principal amount or change the parties directly or indirectly responsible for
the payment thereof, (B) Attributable Debt (as defined below) of the Borrower or any Subsidiary
incurred after the date hereof pursuant to Sale and Leaseback Transactions permitted by Section
6.04 and (C) Indebtedness represented by seller notes executed by the Borrower or any
Subsidiary incurred after the date hereof in connection with Permitted Acquisitions;
provided that (i) the Indebtedness in clause (A) hereof is incurred prior to or within 120
days (or such longer period if necessary solely to obtain any permits or licenses required in
connection with such acquisition, construction or improvement) after such acquisition or the
completion of such construction or improvement and (ii) the aggregate principal amount of the
Indebtedness permitted by this clause (g) in excess of Attributable Debt shall not exceed
$75,000,000 at any time outstanding. “Attributable Debt” means, with respect to any Sale
and Leaseback Transaction, the present value (computed in accordance with GAAP as if the
obligations incurred in connection with such Sale and Leaseback Transaction were Capital Lease
Obligations) of the total obligations of the lessee for rental payments during the remaining term
of the lease included in such Sale and Leaseback Transaction (including any period for which such
lease has been extended). In the case of any lease which is terminable by the lessee upon payment
of a penalty, the Attributable Debt shall be the lesser of (i) the Attributable Debt determined
assuming termination upon the first date such lease may be terminated (in which case the
Attributable Debt shall also include the amount of the penalty, but no rent shall be considered as
required to be paid under such lease subsequent to the first date upon which it may be so
terminated) and (ii) the Attributable Debt determined assuming no such termination. Any
determination of any rate implicit in the terms of the lease included in such Sale and Leaseback
Transaction made in accordance with generally accepted financial practices by the Borrower shall be
binding and conclusive absent manifest error;

          (h) Unsecured Indebtedness incurred under a third party credit facility by any one or more
Foreign Subsidiaries of the Borrower, provided that the aggregate principal amount of such
Indebtedness permitted by this clause does not exceed $100,000,000;

          (i) Unsecured Indebtedness of any Subsidiary, provided that the aggregate principal
amount of all Indebtedness permitted by this clause shall not exceed the aggregate principal amount
of $20,000,000 at any time outstanding;

          (j) Obligations incurred in connection with covenants not to compete to the extent such
obligations are treated as indebtedness under GAAP, provided that the aggregate principal
amount of all Indebtedness permitted by this clause shall not exceed $50,000,000 at any time
outstanding;

          (k) Indebtedness of any Subsidiary of the Borrower in existence (but not incurred or created
in connection with an acquisition) on the date on which such Subsidiary is acquired by the
Borrower, provided (i) neither the Borrower nor any of its other Subsidiaries has any
obligation with respect to such Indebtedness, (ii) none of the properties of the Borrower or any of
its other Subsidiaries is bound with respect to such Indebtedness and (iii) the Borrower is in
compliance with the financial covenants after such acquisition; and

          (l) Unsecured Indebtedness of the Borrower not permitted by any other clause of this
Section 6.01; provided that (i) no Default exists at the time, or is created as a
result of, the

-48-

 

incurrence of such Indebtedness, (ii) for all Indebtedness in excess of $100,000,000, such
Indebtedness does not have a maturity date before the date six months following the Maturity Date,
and (iii) the terms of such unsecured Indebtedness are not more restrictive than the terms of the
Loan Documents.

          Section 6.02 Limit on Preferred Equity Issuance. The Borrower will not, nor will it
permit any Subsidiary to, issue any preferred stock or other preferred Equity Interests, other than
(a) preferred Equity Interests of the Borrower issued (i) without any mandatory redemption
provisions or (ii) pursuant to any shareholders’ rights plan of the Borrower; and (b) preferred
Equity Interests issued by any Subsidiary to the extent, and only to the extent, that such
preferred Equity Interests are owned by the Borrower or another Subsidiary.

          Section 6.03 Lien Covenant. The Borrower will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter
acquired by it, or assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

          (a) Permitted Encumbrances;

          (b) Any Lien on any property or asset of the Borrower or any Subsidiary existing on the
Effective Date and set forth on Schedule 6.03(b); provided that (i) such Lien shall
not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien shall
secure only those obligations which it secures on the Effective Date hereof;

          (c) Any Lien existing on any property or asset prior to the acquisition thereof by the
Borrower or any Subsidiary or existing on any property or asset of any person that becomes a
Subsidiary after the Effective Date prior to the time such Person becomes a Subsidiary;
provided that (i) such Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not
apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall
secure only those obligations which it secures on the date of such acquisition or the date such
Person becomes a Subsidiary, as the case may be;

          (d) Liens on property subject to Transportation Equipment Transactions, provided that
the Indebtedness secured by any Transportation Equipment Transactions does not exceed the cost of
acquiring the property subject thereto;

          (e) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any
Subsidiary; provided that (i) such Liens secure permitted Indebtedness, (ii) such Liens and
the Indebtedness secured thereby are incurred prior to or within 120 days (or such longer period if
necessary solely to obtain any permits or licenses required in connection with such acquisition,
construction or improvement) after such acquisition or the completion of such construction or
improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring,
constructing or improving such fixed or capital assets and (iv) such Liens shall not apply to any
other property or assets of the Borrower or any Subsidiary; and

          (f) Liens in cash collateral pursuant to Section 2.06(j).

-49-

 

          Section 6.04 Sale and Leaseback Transactions. The Borrower will not, and will not permit
any of the Subsidiaries to, enter into any Sale and Leaseback Transaction; provided that the
Borrower or any Subsidiary may enter into (a) Sale and Leaseback Transactions if the aggregate
outstanding Attributable Debt in respect of Sale and Leaseback Transactions permitted by this
clause (a) shall at no time exceed $125,000,000 and (b) any Transportation Equipment Transaction;
and provided further that all Attributable Debt associated with any such Sale and Leaseback
Transaction shall be treated as Indebtedness of the Borrower and shall be subject to the
limitations of the Indebtedness covenant.

          Section 6.05 Limitation on Fundamental Changes.

          (a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate with it, or sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) assets
(including capital stock of Subsidiaries) constituting all or substantially all the assets of the
Borrower and the Subsidiaries on a consolidated basis (whether now owned or hereafter acquired),
or, in the case of the Borrower or any Guarantor, liquidate or dissolve, except that, if at the
time thereof and immediately after giving effect thereto no Default shall have occurred and be
continuing (i) any Subsidiary may merge into the Borrower in a transaction in which the Borrower is
the surviving corporation, (ii) any Subsidiary may merge into any other Subsidiary in a transaction
in which the surviving entity is a Subsidiary; provided, however, that (A) no
Guarantor may merge into a Foreign Subsidiary or an Excluded Subsidiary (unless prior to such
merger, such Foreign Subsidiary or Excluded Subsidiary was also a Guarantor), and (B) after giving
effect to such transaction, the surviving Subsidiary is a Guarantor if either of such Subsidiaries
was previously a Guarantor, (iii) any permitted asset disposition and involving the sale of a
Subsidiary may be effected by a merger of such Subsidiary, (iv) any Subsidiary may sell, transfer,
lease or otherwise dispose of its assets to the Borrower or to another Subsidiary;
provided, however, that (A) no Guarantor may sell, transfer, lease or otherwise dispose of
its assets to any Foreign Subsidiary or Excluded Subsidiary (unless prior to such sale, transfer,
lease or disposition such Foreign Subsidiary or Excluded Subsidiary was also a Guarantor), and (B)
after giving effect to such transaction, the surviving Subsidiary is a Guarantor if either of such
Subsidiaries was previously a Guarantor, and (v) any Subsidiary may liquidate or dissolve if the
Borrower determines in good faith that such liquidation or dissolution is in the best interests of
the Borrower and is not materially disadvantageous to the Lenders; provided that any such
merger involving a Person that is not a wholly owned Subsidiary immediately prior to such merger
shall not be permitted unless also permitted by Section 6.06 regarding Restrictions on
Investments.

          (b) The Borrower will not, and will not permit any of the Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Borrower and the
Subsidiaries on the Effective Date and businesses reasonably related thereto.

          Section 6.06 Restrictions on Investments, Loans, Advances, Guarantees and Acquisitions.
The Borrower will not, and will not permit any of the Subsidiaries to, purchase, hold or acquire
(including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to
such merger) any capital stock, evidences of Indebtedness or securities (including any option,
warrant or other right to acquire any of the foregoing) of, make or permit

-50-

 

to exist any loans or advances to, guarantee any obligations of, or make or permit to
exist any investment or any other interest in, any other Person, or purchase or otherwise acquire
(in one transaction or a series of transactions) any assets of any other Person constituting a
business unit, except:

          (a) Permitted Investments;

          (b) Investments, guarantees and loans existing on the Effective Date and set forth on
Schedule 6.06(b);

          (c) In addition to the investments described in (b) above, investments by the Borrower and the
Subsidiaries in Equity Interests in their respective Subsidiaries; provided that the
aggregate amount of investments made by Borrower or any Guarantor to Subsidiaries that are not
Guarantors, together with all loans and advances and Guarantees made pursuant to clauses (d) and
(f) below, shall not exceed $50,000,000 at any time outstanding;

          (d) In addition to the loans described in (b) above, loans or advances made by the Borrower to
any Subsidiary or made by any Subsidiary to the Borrower or any other Subsidiary; provided
that the amount of such loans and advances made by Borrower or any Guarantor to Subsidiaries that
are not Guarantors, together with investments and Guarantees made pursuant to clause (c) above and
clause (f) below by Borrower or any Guarantor to Subsidiaries that are not Guarantors, shall not
exceed $50,000,000 at any time outstanding;

          (e) Obligations of the Borrower to any Subsidiary, or of any Subsidiary to the Borrower or any
other Subsidiary, arising from the management and investment of cash on a pooled basis in the
ordinary course of business;

          (f) Guarantees constituting permitted Indebtedness; provided that (i) a Subsidiary
shall not Guarantee any Indebtedness of the Borrower unless such Subsidiary also has Guaranteed the
Loans and (ii) the aggregate principal amount of Indebtedness of Subsidiaries that are not
Guarantors that is Guaranteed by any Borrower or Guarantor pursuant to this clause (f), together
with investments and loans and advances made by Borrower or any Guarantor to Subsidiaries that are
not Guarantors pursuant to clauses (c) and (d) above, shall not exceed $50,000,000 at any time
outstanding (exclusive of investments, guaranties and loans described in clause (b) immediately
above);

          (g) Guarantees by the Borrower of accounts payable of Subsidiaries in the ordinary course of
business;

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

          (i) Investments in perpetual care trusts, pre-need trusts or similar transactions made (a) in
the ordinary course of such Person’s business and (b) subject to applicable Federal, state or local
regulations;

-51-

 

          (j) Permitted Acquisitions for consideration consisting of common stock of the Borrower, and
other consideration to the extent the amount or fair market value of such other consideration paid
by the Borrower and the Subsidiaries therefor (including Indebtedness assumed pursuant to
Section 6.01(l) above) does not exceed (A) $50,000,000 for any single Permitted
Acquisition, and (B) $100,000,000 for all Permitted Acquisitions within a 12 month period;

          (k) Equity Interests and debt obligations owned by the Borrower or any Subsidiary following a
transaction described in Section 6.07;

          (l) Equity Interests in Persons owned by the Borrower or any Subsidiary following the sale of
Equity Interests in Subsidiaries in transactions constituting asset dispositions permitted under
Section 6.07 and other investments in joint ventures engaged in businesses reasonably
related to the business of the Borrower as of the date of this Agreement; provided that no
investment shall be permitted pursuant to this clause (l) that, together with all other investments
permitted under this clause (l), would at any time have a book value exceeding $50,000,000 in the
aggregate;

          (m) Investments not permitted by any other clause of this Section; provided that no
investment shall be made pursuant to this clause (m) that, together with all other investments made
pursuant to this clause (m) after the date hereof, would exceed $10,000,000 in the aggregate;

          (n) Other Permitted Acquisitions, which, when combined with the Permitted Acquisitions allowed
under clause (j), above, do not exceed a total consideration (other than common stock) of
$300,000,000 or more in any twelve (12) month period (including Indebtedness assumed pursuant to
Section 6.01(l) above); provided that both before and immediately after giving
effect to any such Permitted Acquisition (other than those allowed under clause (j)), the Borrower
has at least $50,000,000 in liquidity in the form of unrestricted cash and Permitted Investments
and at least $150,000,000 of total liquidity, including (A) unrestricted cash, (B) Permitted
Investments and (C) the difference between the aggregate Commitments as of such date and the
aggregate Credit Exposure as of such date; and

          (o) Investments in Keystone and Palm in an aggregate amount not to exceed $400,000,000 at any
time.

          Section 6.07 Limitation on Asset Sales. The Borrower will not, and will not permit any of
the Subsidiaries to, sell, transfer, lease or otherwise dispose of any asset, including any Equity
Interest, owned by it, nor will the Borrower permit any of the Subsidiaries to issue any additional
Equity Interest in such Subsidiary, except:

          (a) sales of inventory (including parcels in developed cemetery properties), used or surplus
equipment and Permitted Investments in the ordinary course of business;

          (b) sales, transfers and dispositions to the Borrower or a Subsidiary; provided that
any such sales, transfers or dispositions involving a Subsidiary that is not a Guarantor shall be
made in compliance with Section 6.10 regarding Restrictions on Transactions with Affiliates
below;

-52-

 

          (c) following the completion of the sales described in clause (d) below, sales, transfers,
leases and other dispositions of assets (other than accounts receivable or inventory) the sale of
which is not otherwise permitted by any other clause; provided that (i) the aggregate book
value of all assets sold, transferred or otherwise disposed of in reliance upon this clause (c)
shall not exceed 20% of the consolidated total assets of the Borrower and its Subsidiaries as of
December 31, 2008, as provided by the Borrower, in the aggregate during the term hereof (as of
December 31, 2008, such calculation of total net assets will result in an amount equal to
$1,622,177,000), (ii) all sales, transfers, leases and other dispositions permitted pursuant to
this clause (c) shall be made for fair value and (iii) the aggregate, non-cash consideration
received in connection with all such sales shall not exceed $200,000,000 during the term hereof;
and

          (d) asset sales up to $90,000,000 contemplated by the Borrower as a result of the
Acquisitions, whether or not required by the Federal Trade Commission.

          For purposes of this Section and Section 6.06, any transaction which is a “like kind
exchange” under Section 1031 of the Code shall be considered a disposition (if the Borrower or one
of its Subsidiaries receives cash consideration upon the completion thereof) or an acquisition (if
the Borrower or one of its Subsidiaries pays cash consideration upon the completion thereof) only
upon the completion of such transaction, and then only to the extent of the cash received or paid.

          Section 6.08 Swap Agreements. The Borrower will not, and will not permit any of the
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks (including foreign exchange risks) to which the Borrower or any Subsidiary has
actual exposure (other than in respect of equity interests or Indebtedness of the Borrower or any
of its Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating rate to another floating
rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or
any Subsidiary.

          Section 6.09 Limitation on Restricted Payments.

          (a) The Borrower will not, and will not permit any of the Subsidiaries to, declare or make, or
agree to pay or make, directly or indirectly, any Restricted Payment except (i) that any Subsidiary
may make any Restricted Payment to the Borrower or any other Subsidiary (provided that
neither the Borrower nor any Guarantor may make any Restricted Payment to a Subsidiary that is not
a Guarantor) and (ii) as otherwise provided herein. At any time the Leverage Ratio on the date of
the declaration of a dividend is greater than 3.75 to 1.0, and so long as no Default or Event of
Default exists at the time, or is created as a result of any such dividend, the Borrower may
declare and pay dividends with respect to its Equity Interests not to exceed $75,000,000 in the
aggregate in any calendar year (excluding any dividend in excess of a rate of $18,750,000 per
fiscal quarter declared when, on the date of its declaration, the Leverage Ratio was less than or
equal to 3.75 to 1.0). At any time the Leverage Ratio on the date of declaration of a dividend or
following the making of any other Restricted Payment is less than or equal to 3.75 to 1.0, and so
long as no Default or Event of Default exists at the time or is created as a result of any such
Restricted Payment, the provisions of this Section will not apply to Restricted Payments. The
Leverage Ratio will be determined pursuant to the most recent

-53-

 

quarterly compliance certificate; provided, that if such ratio decreases below 3.75 to
1.0 during any quarter solely as a result of a decrease in Total Debt or an increase in
unrestricted cash of the Borrower and all of its Subsidiaries, then such ratio, until the next
quarterly compliance certificate, for purposes of this subsection (a) may, at the Borrower’s
option, be determined pursuant to a certificate calculating such ratio and executed by an officer
of the Borrower.

          (b) The Borrower will not, nor will it permit any of the Subsidiaries to, make or agree to
make, directly or indirectly, any payment or other distribution (whether in cash, securities or
other property) in respect of principal of or interest on any Indebtedness, or any payment or other
distribution (whether in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, defeasance, acquisition, cancellation
or termination of any Indebtedness, except:

     (i) payment of Indebtedness created hereunder;

     (ii) regularly scheduled and other mandatory interest and principal payments as and
when due in respect of any Indebtedness permitted under Section 6.01;

     (iii) refinancings of permitted Indebtedness, including the payment of customary fees,
costs and expenses in connection therewith;

     (iv) the payment of secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness to the extent such
sale or transfer is permitted;

     (v) the payment of Indebtedness of any person acquired by the Borrower or any
Subsidiary that exists on the date of such acquisition; provided that such Person
becomes a Subsidiary as a result of such acquisition;

     (vi) payment of Indebtedness that matures prior to the Maturity Date; provided there
are no outstanding Revolving Loans;

     (vii) payment of Indebtedness that matures after the Maturity Date; provided
that (A) no Indebtedness described in clause (vi) above is outstanding, other than (1)
non-public Indebtedness disclosed on the Effective Date or (2) other non-public Indebtedness
incurred after the Effective Date in an aggregate amount not to exceed $10,000,000, and (B)
there are no outstanding Revolving Loans;

     (viii) prepayments and redemptions of Indebtedness of the Borrower or any Subsidiary
with proceeds of any issuance and sale of common stock of the Borrower;

     (ix) exchanges of common stock of the Borrower for Indebtedness of the Borrower or any
Subsidiary;

     (x) other prepayments by the Borrower or any Subsidiary not permitted by any other
clause of this Section 6.09; provided that no Default exists at the time and
no such prepayment or redemption shall be made unless as of the date of the most recently
delivered financial statements, the Borrower has at least $50,000,000 in liquidity in the

-54-

 

form of unrestricted cash and Permitted Investments and at least $150,000,000 of total
liquidity, including (A) unrestricted cash, (b) Permitted Investments and (C) the difference
between the aggregate Commitments as of such date and the aggregate Credit Exposure as of
such date, and the Borrower or any Subsidiary has made such other prepayments permitted
under this clause (including the proposed prepayment) in excess of $400,000,000 in the
aggregate;

     (xi) prepayment of the Private Placement Notes in accordance with the terms thereof;
and

     (xii) the payment of borrowed money Indebtedness of Keystone outstanding on the date of
the Keystone Acquisition and of Palm outstanding on the date of the Palm Acquisition.

          Section 6.10 Restrictions on Transactions with Affiliates. The Borrower will not, and
will not permit any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) transactions in the ordinary course of
business at prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
transactions between or among the Borrower and one or more Subsidiaries that are Guarantors not
involving any other affiliate, (c) any investment, loan or advance involving a Subsidiary that is
permitted hereunder, (d) any Restricted Payment permitted by Section 6.09 and (e) issuances of
Equity Interests of the Borrower in satisfaction of obligations under retirement plans.

          Section 6.11 Restrictions on Restrictive Agreements. The Borrower will not, and will not
permit any of the Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the
ability of the Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of
its properties or assets, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its capital stock or to make or repay loans or advances
to the Borrower or any other Subsidiary or to guarantee Indebtedness of the Borrower or any other
Subsidiary that are, in each case in this clause (b), more restrictive than that which exists as of
the date hereof; provided that the foregoing shall not apply to (i) restrictions and conditions
imposed by law or by any Loan Document, (ii) restrictions and conditions existing on the date
hereof identified on Schedule 6.11 (but shall apply to any extension or renewal of, or any
amendment or modification expanding the scope of, any such restriction or commitment), (iii)
restrictions and conditions contained in any extension, renewal, replacement, amendment or
modification of each indenture (including any supplemental indentures entered into pursuant to the
terms thereof) to which the Borrower is a party on the date hereof and that is identified on the
schedule referenced in clause (ii) above, so long as such restrictions and conditions are not more
restrictive than those in the indenture being extended, renewed, replaced, amended or modified and
(iv) the foregoing shall not apply to customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions
apply only to the Subsidiary that is to be sold and such sale is permitted hereunder.

-55-

 

          Section 6.12 Financial Covenants.

          (a) The Borrower will not permit the Leverage Ratio as of the last day of each fiscal quarter
to be greater than the following:

	 	 	 
	Each Fiscal Quarter Ending	 	Maximum Ratio
	December ’09 — June ’10

	 	4.25 to 1.00
	Thereafter

	 	4.00 to 1.00

          (b) The Borrower will not permit the Interest Coverage Ratio as of the last day of each fiscal
quarter to be less than:

	 	 	 
	Each Fiscal Quarter Ending	 	Minimum Ratio
	December ’09 — June ’10

	 	2.75 to 1.00
	Thereafter

	 	3.00 to 1.00

ARTICLE VII

Events of Default

          If any of the following events (“Events of Default”) shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;

          (b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in clause (a) of this Article) payable under this Agreement, when
and as the same shall become due and payable, and such failure shall continue unremedied for a
period of five Business Days;

          (c) any representation or warranty made or deemed made by or on behalf of the Borrower or any
Subsidiary in or in connection with this Agreement or any amendment or modification hereof or
waiver hereunder, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any amendment or modification hereof or waiver
hereunder, shall prove to have been incorrect when made or deemed made;

          (d) the Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, Section 5.03 (with respect to the Borrower’s existence)
or Section 5.08, Section 5.10 or in ARTICLE VI;

          (e) the Borrower shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those specified in clause (a), (b) or (d) of this Article),
and such failure shall continue unremedied for a period of 30 days after notice thereof from the
Administrative Agent to the Borrower (which notice will be given at the request of any Lender);

-56-

 

          (f) the Borrower or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable;

          (g) any event or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent
on its or their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing such Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Borrower or any
Subsidiary or its debts, or of a substantial part of its assets, under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Borrower or any Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or decree approving or
ordering any of the foregoing shall be entered;

          (i) the Borrower or any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for the Borrower or any
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of effecting any of the
foregoing;

          (j) the Borrower or any Subsidiary shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due;

          (k) one or more judgments for the payment of money in an aggregate amount in excess of
$15,000,000 shall be rendered against the Borrower, any Subsidiary or any combination thereof and
the same shall remain undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or
levy upon any assets of the Borrower or any Subsidiary to enforce any such judgment;

          (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and its Subsidiaries increasing after the Effective Date in an
aggregate amount exceeding (i) $15,000,000 in any year or (ii) $40,000,000 for all periods; or

-57-

 

          (m) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Borrower described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become
due and payable immediately, without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower
described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and
the principal of the Loans then outstanding, together with accrued interest thereon and all fees
and other obligations of the Borrower accrued hereunder, shall automatically become due and
payable, without presentment, demand, protest or other notice of any kind, all of which are hereby
waived by the Borrower, and (iii) take such other steps to collect the Loans and protect the
interest of the Lenders as shall be allowed by law or in equity.

ARTICLE VIII

The Administrative Agent

          Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
as its agent 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, together
with such actions and powers as are reasonably incidental thereto.

          The bank 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 such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth herein. Without limiting the generality of the foregoing, (a) the Administrative Agent shall
not be subject to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary rights and powers
expressly contemplated hereby that the Administrative Agent is required to exercise in writing as
directed by the Required Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.02), and (c) except as expressly
set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower or any of its
Subsidiaries that is communicated to or obtained by the bank serving as

-58-

 

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 with the consent or at the request of the
Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02) or 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 written notice thereof is given to the Administrative Agent by the Borrower or a
Lender, and 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, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the covenants, agreements or
other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or
genuineness of this Agreement or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in ARTICLE IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the 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 believed by it to be genuine and to have been signed or sent 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 be made by the proper Person, and shall not incur any liability for relying
thereon. 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.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of 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.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrower. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Borrower, to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative
Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent
which shall be a bank with an office in Houston, Texas, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder. The fees

-59-

 

payable by the Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such successor. After the
Administrative Agent’s resignation hereunder, the provisions of this Article and Section
9.03 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 it was acting as Administrative Agent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall 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 related agreement or any document furnished hereunder or thereunder.

ARTICLE IX

Miscellaneous

          Section 9.01 Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given by
telephone (and subject to paragraph (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 telecopy or electronic mail, as follows:

     (i) if to the Borrower, to it at 1929 Allen Parkway, Houston, Texas 77019, Attention of
Chief Financial Officer (Phone No. (713) 525-7768; Telecopy No. (713) 525-7581; E-Mail
Address eric.tanzberger@sci-us.com), with a copy to Director of Treasury (Phone No. (713)
525-7564; Telecopy No. (713) 525-5591; E-Mail Address rick.orlando@sci-us.com);

     (ii) if to the Administrative Agent, Issuing Bank or Swingline Lender, to JPMorgan
Chase Bank, Loan and Agency Services Group, 10 South Dearborn, 19th Floor,
Chicago, Illinois 60603-2003, Attention Lillian Arroyo (Phone No. (312) 385-7014; Telecopy
No. (312) 732-1544; E-Mail Address lillian.arroyo@jpmchase.com), and a copy to JPMorgan
Chase Bank, 711 Travis Street, 8N-78, Houston, Texas 77002, Attention Debra Harris (Phone
No. (713) 216-5733; Telecopy No. (713) 215-4651; E-Mail Address debra.m.harris@chase.com);
and

     (iii) if to any other Lender, to it at its address (or telecopy number) set forth in
its Administrative Questionnaire.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the

-60-

 

Administrative Agent; provided that the foregoing shall not apply to notices pursuant
to ARTICLE II unless otherwise agreed by the Administrative Agent and the applicable
Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices
and other communications to it hereunder by electronic communications pursuant to procedures
approved by it; provided that approval of such procedures may be limited to particular
notices or communications.

          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          Section 9.02 Waivers; Amendments; Release of Guarantors.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the exercise of
any other right or power. The rights and remedies of the Administrative Agent, the Issuing Bank
and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they
would otherwise have. No waiver of any provision of this Agreement or consent to any departure by
the Borrower there from shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or the Issuing
Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower and the Required
Lenders or by the Borrower and the Administrative Agent with the consent of the Required Lenders;
provided that no such agreement shall (i) increase the Commitment of any Lender without
the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement
or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the
principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled
date of expiration of any Commitment, without the written consent of each Lender affected thereby,
(iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata
sharing of payments required thereby, without the written consent of each Lender, (v) permit an
Interest Period with a duration in excess of six (6) months, (vi) change any provisions of
Section 2.21 or the definition of “Defaulting Lender”, or (vii) change any of the
provisions of this Section or the definition of “Required Lenders” or any other provision hereof
specifying the number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder, without the written consent of
each Lender; provided further that no such agreement shall amend, modify or
otherwise affect the rights or duties of the

-61-

 

Administrative Agent, the Issuing Bank or the Swingline Lender hereunder without the prior
written consent of the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case
may be.

          (c) Notwithstanding any contrary position in this Agreement or any other Loan Document, if (a)
a Guarantor is no longer a Subsidiary and (b) at the time such Guarantor became a non-subsidiary,
no Event of Default then existed, then such Guarantor shall be automatically released from its
obligations under the Guarantee Agreement to which it is a party, without need for any formal
action by the Administrative Agent or any Lender; and the Administrative Agent will confirm such
release by a notice to the Borrower upon receipt of a request therefor.

          Section 9.03 Expenses; Indemnity; Damage Waiver.

          (a) 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 and administration of this Agreement or any
amendments, modifications or waivers of the provisions hereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the Issuing Bank 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, the Issuing Bank or any Lender, including the fees, charges
and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement,
including its rights under this Section, or 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) The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
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 or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement
or instrument contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds there from
(including any refusal by the Issuing Bank 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 the Borrower or any of its Subsidiaries, or any
Environmental Liability related in any way to the Borrower 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 and regardless of whether any
Indemnitee is a party thereto; provided that such indemnity shall not,

-62-

 

as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses 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.

          (c) To the extent that the Borrower fails to pay any amount required to be paid by it to (i)
the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to the Issuing Bank or the Swingline Lender, as the 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, the Issuing Bank or the Swingline Lender
in its capacity as such, and (ii) the Administrative Agent under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay its pro-rata share of such amount to the
Administrative Agent.

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

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

          WITHOUT LIMITING ANY PROVISION OF THIS AGREEMENT, IT IS THE EXPRESS INTENTION OF THE PARTIES
HERETO THAT EACH PERSON TO BE INDEMNIFIED HEREUNDER SHALL BE INDEMNIFIED AND HELD HARMLESS AGAINST
ANY AND ALL LOSSES, LIABILITIES, CLAIMS AND DAMAGES ARISING OUT OF OR RESULTING FROM THE ORDINARY,
SOLE AND CONTRIBUTORY NEGLIGENCE OF SUCH PERSON.

          Section 9.04 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may
not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the Borrower without
such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section. 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 (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

-63-

 

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may 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 at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

          (A) the Borrower, provided that no consent of the Borrower shall be required
for an assignment to a Lender, an Affiliate of a Lender or, if an Event of Default has
occurred and is continuing, any other assignee;

          (B) the Administrative Agent, provided that no consent of the Administrative
Agent shall be required for an assignment to an assignee that is a Lender or an Affiliate of
a Lender; and

          (C) the Issuing Bank and Swingline Lender.

          (ii) Assignments shall be subject to the following additional conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the
amount of the Commitment or 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) shall not be less than $5,000,000 unless each of the
Borrower and the Administrative Agent otherwise consent, provided that no such
consent of the Borrower shall be required if an Event of Default under clause (a), (b), (h)
or (i) of ARTICLE VII has occurred and is continuing;

          (B) 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;

          (C) the parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Assumption, together with a processing and recordation fee of
$3,500; and

          (D) the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto 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 Section 2.15, Section
2.16, Section 2.17 and Section 9.03; provided that such release

-64-

 

shall not affect any legal responsibility for such Lender’s actions and failures to act
occurring before the effective date of such Assignment and Assumption). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with paragraph (c) of
this Section.

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

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by an
assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire
(unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the Register;
provided that if either the Assigning Lender or the assignee shall have failed to
make any payment required to be made by it pursuant to Section 2.05(c), Section
2.06(d), Section 2.06(e), Section 2.07(b), Section 2.18(d), or
Section 9.03(c), the Administrative Agent shall have no obligation to accept such
Assignment and Assumption and record the information therein in the Register unless and
until such payment shall have been made in full, together with all accrued interest thereon.
No assignment shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrower, the Administrative Agent, the
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent, the Issuing Bank and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any

-65-

 

amendment, modification or waiver described in the first proviso to Section 9.02(b)
that affects such Participant. Subject to paragraph (c)(ii) of this Section, the Borrower agrees
that each Participant shall be entitled to the benefits of Section 2.15, Section
2.16 and Section 2.17 to the same extent as if it were a Lender and had acquired its
interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 9.08 as though it were a
Lender, provided such Participant agrees to be subject to Section 2.18(c) as though
it were a Lender.

(ii) A Participant shall not be entitled to receive any greater payment under
Section 2.15 or Section 2.17 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
express 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 2.17 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
2.17(e) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          Section 9.05 Survival. All covenants, agreements, representations and warranties made by
the Borrower herein and in the certificates or other instruments delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto
and shall survive the execution and delivery of this Agreement and the making of any Loans and
issuance of any Letters of Credit, regardless of any investigation made by any such other party or
on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may
have had notice or knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement
is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments
have not expired or terminated. The provisions of Section 2.15, Section 2.16, Section 2.17,
Section 9.03 and ARTICLE VIII, shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or
termination of the Letters of Credit and the Commitments or the termination of this Agreement or
any provision hereof.

          Section 9.06 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which may be
delivered by electronic or telecopy transmission and each of which shall constitute an original,
but all of which when taken together shall constitute a single contract. The Loan Documents and
any separate letter agreements with respect to fees payable to the Administrative

-66-

 

Agent 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 which, when taken together, bear the signatures of
each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

          Section 9.07 Severability. Any provision of this Agreement held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

          Section 9.08 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other obligations at any
time owing by such Lender or Affiliate to or for the credit or the account of the Borrower against
any of and all the obligations of the Borrower now or hereafter existing under this Agreement held
by such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including other rights of setoff) which such
Lender may have.

          
Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement shall be construed in accordance with and governed by the law of the State
of Texas.

          (b) The Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of the District Courts of the State of Texas sitting in Houston,
Harris County, Texas and of the United States District Court of the Southern District of Texas, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such Texas State or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement against the Borrower or its properties in the courts of any
jurisdiction.

-67-

 

          (c) Each party hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement 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 law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

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

          Section 9.10 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          Section 9.11 Headings. Article and Section headings and the Table of Contents used herein
are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

          Section 9.12 Confidentiality. Each of the Administrative Agent, the Issuing Bank and the
Lenders agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (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, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or the enforcement of rights hereunder, (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,
(ii) any pledgee referred to in Section 9.04(d), or (iii) any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes
publicly available other than as a result of a breach of this Section or (ii) becomes available to
the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source
other than the Borrower. For the purposes of this Section, “Information” means all information
received from the Borrower relating to the Borrower or its

-68-

 

business, other than any such information that is available to the Administrative Agent,
the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by the Borrower;
provided that, in the case of information received from the Borrower 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.

          Section 9.13 Interest Rate Limitation. Notwithstanding anything herein to the contrary,
in no event whatsoever shall the amount contracted for, charged, paid or otherwise agreed to be
paid to or received by the Agent or any Lender for the use, forbearance or detention of money under
this Agreement or any Loan Document or otherwise exceed the maximum non-usurious rate pursuant to
applicable law (the “Maximum Rate”), and if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest on such Loan under
applicable law (collectively the “Charges”), shall exceed the Maximum Rate, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of the operation of this
Section shall be cumulated and the interest and Charges payable to such Lender in respect of other
Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender. Anything in this Agreement or any other Loan
Document to the contrary notwithstanding, the Borrower shall not be required to pay unearned
interest and shall never be required to pay interest at a rate in excess of the Maximum Rate, and
if the effective rate of interest which would otherwise be payable under this Agreement and the
other Loan Documents would exceed the Maximum Rate, or if the Agent or any Lender shall receive any
unearned interest or shall receive monies that are deemed to constitute interest which would
increase the effective rate of interest payable by the Borrower under this Agreement or Loan
Document to a rate in excess of the Maximum Rate, then (a) the amount of interest which would
otherwise be payable by the Borrower under this Agreement or any Loan Document shall be reduced to
the amount allowed under applicable law, and (b) any unearned interest paid by the Borrower or any
interest paid by the Borrower in excess of the Maximum Rate shall be credited on the principal of
(or, if the principal amount shall have been paid in full, refunded to the Borrower). It is
further agreed that, without limitation of the foregoing, all calculations of the rate of interest
contracted for, charged or received by any Lender under this Agreement or any Loan Document, are
made for the purpose of determining whether such rate exceeds the Maximum Rate, and shall be made
by amortizing, prorating and spreading in equal parts during the period of the full stated term of
the Loans evidenced by said Notes all interest at any time contracted for, charged or received by
such Lender in connection therewith.

          Section 9.14 USA Patriot Act. Each Lender that is subject to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”)
hereby notifies the Borrower that pursuant to the requirements of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower, which

-69-

 

information includes the name and address of the Borrower and other information that will
allow such Lender to identify the Borrower in accordance with the Patriot Act.

          Section 9.15 Amendment and Restatement. This Agreement is an amendment and restatement of
that certain Credit Agreement (as amended and supplemented to the date hereof, the “2006 Credit
Agreement”) dated November 28, 2006 by and among the Borrower, the Administrative Agent, Bank of
America, N.A., as Syndication Agent for the revolving loans thereunder and the lenders party
thereto. Any Request for Borrowing submitted under the 2006 Credit Agreement for any Revolving
Loan to be made on or after the Effective Date shall be a Request for Borrowing hereunder. The
Lenders and the Administrative Agent hereby release SCI International Limited, Alderwoods Group,
LLC and SCI Cerberus, LLC from any guaranty related to the 2006 Credit Agreement.

          Section 9.16 FINAL AGREEMENT OF THE PARTIES. THIS WRITTEN AGREEMENT (INCLUDING THE
EXHIBITS AND SCHEDULES HERETO) AND THE OTHER LOAN DOCUMENTS CONSTITUTE A “LOAN AGREEMENT” AS
DEFINED IN SECTION 26.02(a) OF THE TEXAS BUSINESS AND COMMERCE CODE, AND REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF
AND THEREOF. Any previous agreement among the parties with respect to the subject matter hereof is
superseded by this Agreement. Nothing in this Agreement, expressed or implied, is intended to
confer upon any party other than the parties hereto any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

-70-

 

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

BORROWER:

	 	 	 	 	 
	 	SERVICE CORPORATION INTERNATIONAL

 	 
	 	By:  	/s/ Eric D. Tanzberger
 	 
	 	 	Eric D. Tanzberger 	 
	 	 	Senior Vice President, Chief Financial

Officer and Treasurer 	 
	 

 

 

Signature Page to Credit Agreement

 

 

ADMINISTRATIVE AGENT
AND LENDER:

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Robert L. Mendoza
 	 
	 	 	Name:  	Robert L. Mendoza 	 
	 	 	Title:  	Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Gary L. Mingle
 	 
	 	 	Name:  	Gary L. Mingle 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	COMPASS BANK

 	 
	 	By:  	/s/ Collis Sanders
 	 
	 	 	Name:  	Collis Sanders 	 
	 	 	Title:  	Executive Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ Michelle C. Phillips
 	 
	 	 	Name:  	Michelle C. Phillips 	 
	 	 	Title:  	Director 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Melinda N. Jackson
 	 
	 	 	Name:  	Melinda N. Jackson 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	RAYMOND JAMES BANK, FSB

 	 
	 	By:  	/s/ Garrett McKinnon
 	 
	 	 	Name:  	Garrett McKinnon 	 
	 	 	Title:  	Senior Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	REGIONS BANK

 	 
	 	By:  	/s/ William Bobbora
 	 
	 	 	Name:  	William Bobbora 	 
	 	 	Title:  	Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Michael Silverman
 	 
	 	 	Name:  	Michael Silverman 	 
	 	 	Title:  	Managing Director 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ John T. Prigge
 	 
	 	 	Name:  	John T. Prigge 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A.

 	 
	 	By:  	/s/ Terry Dallas
 	 
	 	 	Name:  	Terry Dallas 	 
	 	 	Title:  	Executive Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	BANK OF TEXAS, N.A.

 	 
	 	By:  	/s/ Robbie Shackouls
 	 
	 	 	Name:  	Robbie Shackouls 	 
	 	 	Title:  	Assistant Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	FIFTH THIRD BANK

 	 
	 	By:  	/s/ Randal S. Wolffis
 	 
	 	 	Name:  	Randal S. Wolffis 	 
	 	 	Title:  	Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

LENDER:

	 	 	 	 	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ William M. Ginn
 	 
	 	 	Name:  	William M. Ginn 	 
	 	 	Title:  	Executive Officer 	 
	 

 

 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL CORPORATION

 	 
	 	By:  	/s/ Karen A. Browning
 	 
	 	 	Name:  	Karen A. Browning 	 
	 	 	Title:  	Vice President 	 
	 

 

 

Signature Page to Credit Agreement

 

 

EXHIBIT 1.01A

FORM OF GUARANTY AGREEMENT

Exhibit 1.01A-1

 

Exhibit 1.01A

AMENDED AND RESTATED

GUARANTEE AGREEMENT

     THIS AMENDED AND RESTATED GUARANTEE AGREEMENT (this “Guarantee”) dated as of November
___, 2009, made by each of the undersigned Subsidiaries of the Borrower (as defined below) and such
other Subsidiaries of the Borrower which hereafter become parties to this Guarantee (each, a
“Guarantor,” and collectively, the “Guarantors”), in favor of JPMorgan Chase Bank,
N.A. as Administrative Agent (the “Agent”) for the benefit of the Lenders pursuant to that
certain Amended and Restated Revolving Credit Agreement dated as of even date herewith (the
“Credit Agreement”), by and among the Borrower, the Agent and the Lenders.

WITNESSETH

     WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make Loans to Service
Corporation International, a Texas corporation (the “Borrower”) in a manner and upon the
terms and conditions set forth therein;

     WHEREAS, in accordance with the Credit Agreement, the Agent requires that the Guarantors
execute a guarantee agreement guaranteeing the Obligations of the Borrower under the Credit
Agreement;

     NOW, THEREFORE, in consideration of the premises and agreements herein and in order to induce
the Lenders to make the Loans pursuant to the Credit Agreement, the Guarantors hereby agree as
follows:

     Section 1. Definitions. Capitalized terms used herein and not otherwise defined shall
have the respective meanings assigned thereto in the Credit Agreement.

     Section 2. Guarantee of Payment. Each Guarantor (not merely as a surety or guarantor of
collection) hereby jointly, severally, unconditionally and irrevocably, guarantees the punctual
payment and performance when due, whether at stated maturity, as an installment, by prepayment or
by demand, acceleration or otherwise, of all Obligations of the Borrower heretofore or hereafter
existing. If any or all of the Obligations become due and payable under the Credit Agreement, the
Guarantors jointly and severally and unconditionally promise to pay such Obligations, on demand,
together with any and all expenses (including reasonable counsel fees and expenses), which may be
incurred by the Agent in collecting any of the Obligations and in connection with the protection,
defense and enforcement of any rights under the Credit Agreement or under any other Loan Document
(the “Expenses”). The Guarantors guarantee that the Obligations shall be paid strictly in
accordance with the terms of the Credit Agreement. The Obligations include, without limitation,
interest accruing after the commencement of a proceeding under bankruptcy, insolvency or similar
laws of any jurisdiction at the rate or rates provided in the Credit Agreement. The Agent shall
not be required to exhaust any right or remedy or take any action against the Borrower or any other
person or entity or any collateral prior to any demand or other action hereunder against the
Guarantors. The Guarantors agree that, as between the Guarantors and the Agent, the Obligations
may be declared to be due and payable for the purposes of this Guarantee notwithstanding any stay,
injunction or other

 

 

prohibition which may prevent, delay or vitiate any declaration as regards the Borrower
and that in the event of a declaration or attempted declaration, the Obligations shall immediately
become due and payable by the Guarantors for the purposes of this Guarantee and each Guarantor
shall forthwith pay the Obligations specified by the Agent to be paid as provided in the Credit
Agreement without further notice or demand. Notwithstanding anything contained herein or in the
Credit Agreement, any Loan Document or any other document or any other agreement, security document
or instrument relating hereto or thereto to the contrary, the maximum liability of each Guarantor
hereunder shall never exceed the maximum amount that said Guarantor could pay without having such
payment set aside as a fraudulent transfer or fraudulent conveyance or similar action under the
U.S. Bankruptcy Code or applicable state or foreign law.

     Section 3. Guarantee Absolute. The liability of each Guarantor under this Guarantee is
absolute and unconditional irrespective of: (a) any change in the time, manner or place of payment
of, or in any other term of, the Credit Agreement or the Obligations, or any other amendment or
waiver of or any consent to departure from any of the terms of the Credit Agreement or the
Obligations, including any increase or decrease in the rate of interest thereon; (b) any release or
amendment or waiver of, or consent to departure from, any other guarantee or support document, or
any exchange, release or non-perfection of any collateral, for the Credit Agreement or the
Obligations; (c) any present or future law, regulation or order of any jurisdiction or of any
agency thereof purporting to reduce, amend, restructure or otherwise affect any term of the Credit
Agreement or the Obligations; (d) without being limited by the foregoing, any lack of validity or
enforceability of the Credit Agreement or the Obligations; (e) any other setoff, defense or
counterclaim whatsoever (in any case, whether based on contract, tort or any other theory) with
respect to the Credit Agreement or the transactions contemplated thereby which might constitute a
legal or equitable defense available to, or discharge of, the Borrower or other Guarantors and (f)
any claim or assertion that any payment by any Guarantor hereunder should be set aside pursuant to
Section 2 in connection with any stay, injunction or other prohibition or event, in which case each
Guarantor shall be unconditionally required to pay all amounts demanded of it hereunder prior to
any determination of the maximum liability of each Guarantor hereunder in accordance with Section 2
and the recipient of such payment, if so required by a final non-appealable court of competent
jurisdiction by a final and non-appealable judgment, shall then be liable for the refund of any
excess amounts. If any such rebate or refund is ever required, all other Guarantors shall be fully
liable for the repayment thereof to the maximum extent allowed by applicable law.

     Section 4. Guarantee Irrevocable. This Guarantee is a continuing guarantee of the payment
of all Obligations now or hereafter existing under the Credit Agreement and shall remain in full
force and effect until payment in full of all Obligations and other amounts payable under this
Guarantee and until all Commitments of the Lenders to make Loans under the Credit Agreement shall
be terminated in accordance with the terms thereof and the Credit Agreement is no longer in
effect.

     Section 5. Reinstatement. This Guarantee shall continue to be effective, or be
automatically reinstated, as the case may be, if at any time any payment of any of the Obligations
is rescinded or must otherwise be returned by the Agent on the insolvency, bankruptcy, dissolution,
liquidation or reorganization of any of the Borrower, any Guarantor, or any Person that is a party
to the Loan Documents, or upon or as a result of the appointment of a custodian,

 

 

receiver, trustee or other officer with similar powers with respect to any of the
Borrower, any Guarantor or any other Person that is a party to the Loan Documents, or otherwise,
all as though the payment had not been made.

     Section 6. Subrogation. Each Guarantor hereby agrees that it shall not exercise any
rights which it may acquire by way of subrogation, by any payment made under this Guarantee or
otherwise, until all the Obligations have been paid in full and the Credit Agreement is no longer
in effect. Any amounts paid to a Guarantor on account of subrogation rights under this Guarantee
at any time when all the Obligations have not been paid in full, shall be held in trust for the
benefit of the Agent and shall promptly be paid to the Agent to be credited and applied to the
Obligations, whether matured or unmatured or absolute or contingent, in accordance with the terms
of the Credit Agreement. If a Guarantor has made a payment to the Agent hereunder of all or any
part of the Obligations and all the Obligations are paid in full and the Credit Agreement is no
longer in effect, the Agent shall, at such Guarantor’s request, execute and deliver to the
Guarantor the appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to the Guarantor of an interest in the
Obligations resulting from the payment.

     Section 7. Subordination. Any liabilities owed by the Borrower to the Guarantors in
connection with any extension of credit or financial accommodation by the Guarantors to or for the
account of the Borrower, including but not limited to interest accruing at the agreed contract rate
after the commencement of a bankruptcy or similar proceeding, are hereby subordinated to the
Obligations, and such liabilities of the Borrower to the Guarantors, if the Agent so requests,
shall be collected, enforced and received by the Guarantors as trustee for the Agent and shall be
paid over to the Agent on account of the Obligations.

     Section 8. Certain Taxes. The Guarantors further agree that all payments to be made
hereunder shall be made without setoff or counterclaim and free and clear of, and without deduction
for Taxes. If any Taxes are required to be withheld from any amounts payable to the Agent
hereunder, the amounts so payable to the Agent shall be increased to the extent necessary to yield
to the Agent (after payment of all Taxes) the amounts payable hereunder in the full amounts so to
be paid. Whenever any Tax is paid by a Guarantor, as promptly as possible thereafter, such
Guarantor shall send the Agent an official receipt showing payment thereof, together with such
additional documentary evidence as may be required from time to time by the Agent.

     Section 9. Representations and Warranties. Each of the Guarantors represents and warrants
that: (a) this Guarantee (i) has been authorized by all necessary action; (ii) does not violate
any agreement, instrument, law, regulation or order applicable to it; (iii) does not require the
consent or approval of any Person, or any filing or registration of any kind; and (iv) is the
legal, valid and binding obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, except to the extent that enforcement may be limited by applicable
bankruptcy, insolvency and other similar laws affecting creditors’ rights generally; and (b) in
executing and delivering this Guarantee, such Guarantor has not relied and will not rely upon any
representations or warranties of the Agent not embodied herein or any acts heretofore or hereafter
taken by the Agent (including but not limited to any review by the Agent of the affairs of the
Borrower).

 

 

     Section 10. Remedies Generally. The remedies provided in this Guarantee are cumulative
and not exclusive of any remedies provided by law.

     Section 11. Setoff. Each Guarantor agrees that, in addition to (and without limitation
of) any right of setoff, banker’s lien or counterclaim the Agent or the Lenders may otherwise have,
the Agent and each of the Lenders shall be entitled, at their option, to offset balances (general
or special, time or demand, provisional or final) held by them for the accounts of the Guarantors
at any of the Agent’s or any Lender’s offices, in U.S. dollars or in any other currency, against
any amount payable by the Guarantors under this Guarantee which is not paid when due, in which case
it shall promptly notify the Guarantors thereof; provided that the Agent’s or any Lender’s failure
to give such notice shall not affect the validity thereof.

     Section 12. Formalities. Each Guarantor hereby waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Obligations, the Credit Agreement and
this Guarantee and any liability to which the Credit Agreement and this Guarantee applies or may
apply, and waives presentment, demand of payment, notice of intent to accelerate, notice of
acceleration, notice of dishonor or nonpayment, and any requirement that the Agent institute suit,
collection proceedings or take any other action to collect the Obligations, including any
requirement that the Agent protect, secure, perfect or insure any security interest or Lien against
any Property subject thereto or exhaust any right or take any action against the Borrower or any
other Person (including the other Guarantors) or any Collateral (it being the intention of the
Agent and each Guarantor that the obligations of such Guarantor under this Guarantee are to be a
guarantee of payment and not of collection) or that the Borrower or any other Person (including the
other Guarantors) be joined in any action hereunder. Each Guarantor hereby waives marshaling of
assets and liabilities, notice by the Agent of the creation of any Indebtedness or liability to
which it applies or may apply, any amounts received by the Agent, notice of disposition or
substitution of Collateral and of the creation, advancement, increase, existence, extension,
renewal, rearrangement and/or modification of the Obligations.

     Section 13. Amendments and Waivers. No amendment or waiver of any provision of this
Guarantee, nor consent to any release by any Guarantor therefrom, shall be effective unless it is
in writing and signed by the Agent and such Guarantor, and then the waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given. No failure
on the part of the Agent to exercise, and no delay in exercising, any right under this Guarantee
shall operate as a waiver or preclude any other or further exercise thereof or the exercise of any
other right.

     Section 14. Expenses. The Guarantors shall reimburse the Agent on demand for all Expenses
without duplication of any reimbursements affected under the Credit Agreement. The obligations of
the Guarantors under this Section shall survive the termination of this Guarantee.

     Section 15. Assignment. This Guarantee shall be binding on, and shall inure to the
benefit of the Guarantors, the Agent and their respective successors and assigns; provided that the
Guarantors may not assign or transfer their respective rights or obligations under this Guarantee.
Without limiting the generality of the foregoing: (a) the obligations of the Guarantors under this
Guarantee shall continue in full force and effect and shall be binding on any successor partnership
and on previous partners and their respective estates if any of the

 

 

Guarantors is a partnership, regardless of any change in the partnership as a result of
death, retirement or otherwise; and (b) the Agent may assign, or otherwise transfer its rights
under the Credit Agreement to any other person or entity in accordance with the terms and
conditions thereof, and the other person or entity shall then become vested with all the rights
granted to the Agent in this Guarantee or otherwise. Guarantor may merge into the Borrower or
another Guarantor as provided in the Credit Agreement.

     Section 16. Captions. The headings and captions in this Guarantee are for convenience
only and shall not affect the interpretation or construction of this Guarantee.

     Section 17. Governing Law, Etc. THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS. EACH GUARANTOR CONSENTS TO THE NONEXCLUSIVE
JURISDICTION AND VENUE OF THE STATE OR FEDERAL COURTS LOCATED IN THE CITY OF HOUSTON. SERVICE OF
PROCESS BY THE AGENT IN CONNECTION WITH ANY SUCH DISPUTE SHALL BE BINDING ON EACH GUARANTOR IF SENT
TO SUCH GUARANTOR BY REGISTERED MAIL AT THE ADDRESS SPECIFIED BELOW OR AS OTHERWISE SPECIFIED BY
SUCH GUARANTOR FROM TIME TO TIME. EACH GUARANTOR WAIVES ANY RIGHT IT MAY HAVE TO JURY TRIAL IN ANY
ACTION RELATED TO THIS GUARANTEE OR THE TRANSACTIONS CONTEMPLATED HEREBY AND FURTHER WAIVES ANY
RIGHT TO INTERPOSE ANY COUNTERCLAIM RELATED TO THIS GUARANTEE OR THE TRANSACTIONS CONTEMPLATED
HEREBY IN ANY SUCH ACTION. TO THE EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE,
ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR
OTHERWISE), EACH SUCH GUARANTOR HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS
OBLIGATIONS UNDER THIS GUARANTEE.

     Section 18. Integration; Effectiveness. This Guarantee alone sets forth the entire
understanding of the Guarantors and the Agent relating to the guarantee of the Obligations and
constitutes the entire contract between the parties relating to the subject matter hereof and
supersedes any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. This Guarantee shall become effective when it shall have been executed and
delivered by the Guarantors to the Agent. Delivery of an executed signature page of this Guarantee
by telecopy shall be effective as delivery of a manually executed signature page of this
Guarantee.

     Section 19. Automatic Release. As provided in Section 9.02 of the Credit Agreement, a
Guarantor shall be automatically released from its obligations under this Guarantee upon the
satisfaction of the conditions set forth therein.

     Section 20. Amendment and Restatement. This Guarantee is an amendment and restatement of
that certain Guarantee Agreement dated November 28, 2006, by each of the Subsidiaries of the
Borrower party thereto in favor of the Administrative Agent under that certain Credit Agreement
dated November 28, 2006, by and among the Borrower, the Administrative

 

 

Agent, Bank of America, N.A., as Syndication Agent for the revolving loans thereunder and
the lenders party thereto.

END OF TEXT

 

 

EXHIBIT 1.01B

FORM OF PROMISSORY NOTE

Exhibit 1.01B-1

 

Exhibit 1.01B

AMENDED AND RESTATED

REVOLVING PROMISSORY NOTE

			
	$                    
	 	November ___, 2009
	 	 	 

     FOR VALUE RECEIVED, the undersigned, SERVICE CORPORATION INTERNATIONAL, a Texas corporation,
the Borrower under that certain Amended and Restated Revolving Credit Agreement dated as of
November ___, 2009 (as may be amended or otherwise modified from time to time, the “Credit
Agreement”) among the Borrower, the Lenders named therein and JPMorgan Chase Bank, N.A., as
Administrative Agent for the Lenders, HEREBY PROMISES TO PAY to the order of                     
(“Lender”), the amount as may be advanced from time to time under the Credit Agreement by
the Lender in accordance with such Lender’s Commitment outstanding from time to time. All
capitalized terms used herein and not otherwise defined shall have the meanings as defined in the
Credit Agreement.

     The Borrower promises to pay interest on the unpaid principal amount of this Note outstanding
from time to time from the date hereof until the principal amount hereof has been paid in full and
the Commitments are terminated, at the place and at such times and at such interest rates as are
specified in the Credit Agreement. Payments made by the Borrower in respect of the amounts due
hereunder shall be allocated to the Lender by the Administrative Agent on the terms specified in
the Credit Agreement.

     This Note is one of the Notes in respect of the Revolving Loans referred to in, and this Note
and all provisions herein are entitled to the benefits of, the Credit Agreement, which such Notes
amend and restate in their entirety those certain revolving promissory notes executed in connection
with that certain Credit Agreement dated November 28, 2006, by and among the Borrower, the
Administrative Agent, Bank of America, N.A., as Syndication Agent for the revolving loans
thereunder and the lenders party thereto. The Credit Agreement, among other things, (a) provides
for the making of Revolving Loans by the Lender and other Lenders to the Borrower from time to
time, and (b) contains provisions for acceleration of the maturity hereof upon the happening of
certain stated events, for prepayments on account of principal hereof prior to the maturity hereof
upon the terms and conditions therein specified, and for limitations on the amount of interest paid
such that no provision of the Credit Agreement or this Note shall require the payment or permit the
collection of interest in excess of the Maximum Rate.

     The Borrower and any and all endorsers, guarantors and sureties severally waive grace (except
to the extent expressly provided in the Credit Agreement), demand, presentment for payment, notice
of dishonor or default, acceleration, intent to accelerate, protest and notice of protest and
diligence in collecting and bringing of suit against any party hereto, and agree to all renewals,
extensions or partial payments hereon and to any release or substitution of security herefor, in
whole or in part, with or without notice, before or after maturity.

     This Note shall be governed by and construed under the laws of the State of Texas and the
applicable laws of the United States of America.

Credit Agreement

Exhibit 1.01B

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed and
delivered by its duly authorized officer as of the date first written above.

	 	 	 	 	 
	 	BORROWER:

SERVICE CORPORATION INTERNATIONAL

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Credit Agreement

Exhibit 1.01B

 

 

EXHIBIT 4.01(h)

FORM OF BORROWING REQUEST

Exhibit 4.01(h)-1

 

EXHIBIT 4.01(h)

FORM OF REQUEST FOR BORROWING

JPMorgan Chase Bank, N.A.

Loan and Agency Services Group

10 South Dearborn, 19th Floor

Chicago, Illinois 60603-2003

Attention:   Lillian Arroyo

Telecopy:   (312) 732-1544

	 	Re:	 	Amended and Restated Revolving Credit Agreement dated as of November ___, 2009,
by and among Service Corporation International (the “Borrower”), JPMorgan Chase
Bank, N.A., as Administrative Agent and the Lenders party to the Credit Agreement

Ladies and Gentlemen:

     Pursuant to the Credit Agreement, the Borrower hereby makes the requests indicated below:

	 	(a)	 	Amount of Loan: $                    
	 
	 	(b)	 	Requested funding date:                           
	 
	 	(c)	 	Type of Loan:
	 
	 	 	 	                     CBFR Loan;
	 
	 	 	 	                     Eurodollar Loan; or
	 
	 	 	 	                     Swing Line Loan
	 
	 	(d)	 	Requested Interest Period for Eurodollar Loan:                     
	 
	 	(e)	 	Location and number of the Borrower’s account to which funds are to be
disbursed:
	 
	 	 	 	                    
	 
	 	 	 	                    

     The undersigned certifies that [s]he is an authorized officer of the Borrower and as such
[s]he is authorized to execute this request on behalf of the Borrower. The Borrower represents and
warrants that (i) the Borrower is entitled to receive the requested Borrowing under the terms and
conditions of the Credit Agreement and that no Default or Event of Default shall exist or will

Credit Agreement

Exhibit 4.01(h)

 

 

occur as a result of the making of such requested Borrowing; and (ii) the representations and
warranties contained in Article VII of the Credit Agreement are correct as of the date of the
Borrowing requested hereby, after giving effect to such Borrowing.

     Each capitalized term used but not defined herein shall have the meaning assigned to such term
in the Credit Agreement.

	 	 	 	 	 
	 	Very truly yours,

SERVICE CORPORATION
INTERNATIONAL,

a Texas corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Credit Agreement

Exhibit 4.01(h)

 

 

EXHIBIT 5.01

FORM OF COMPLIANCE CERTIFICATE

Exhibit 5.01-1

 

EXHIBIT 5.01

FORM OF COMPLIANCE CERTIFICATE

     The undersigned hereby certifies that [s]he is the [Chief Financial Officer]/[Vice President
and Treasurer] of Service Corporation International, a Texas corporation (the “Borrower”)
and that as such [s]he is authorized to execute this certificate on behalf of the Company. With
reference to the Amended and Restated Revolving Credit Agreement dated as of November ___, 2009,
(together with all amendments or supplements thereto being the “Credit Agreement”), among
the Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent and the Lenders (as defined in the
Credit Agreement), the undersigned represents and warrants as follows (each capitalized term used
herein having the same meaning given to it in the Credit Agreement unless otherwise specified):

	 	(a)	 	The representations and warranties of the Borrower and its Subsidiaries
contained in Article III of the Credit Agreement and in the Loan Documents were
true and correct in all material respects when made, and are repeated at and as of the
time of delivery hereof and to the best of the undersigned’s knowledge are true and
correct in all material respects at and as of the time of such delivery, except for
such representations and warranties as are by their express terms limited to a specific
date. Calculations demonstrating compliance with the representation contained in
Section 3.10 are set forth on the worksheet attached hereto as Exhibit
A.
	 
	 	(b)	 	The worksheet attached hereto as Exhibit B sets forth all permitted
Indebtedness, which is subject to dollar limitations, of the Borrower and its
Subsidiaries pursuant to Section 6.01.
	 
	 	(c)	 	The worksheet attached hereto as Exhibit C sets forth all asset sales
necessary to demonstrate compliance with Sections 6.07(c) and (d) of
the Credit Agreement.
	 
	 	(d)	 	The worksheet attached hereto as Exhibit D sets forth all Restricted
Payments of the Borrower and its Subsidiaries and demonstrates compliance with
Section 6.09 of the Credit Agreement.
	 
	 	(e)	 	The Borrower hereby certifies that no Event of Default or Default has occurred
or is continuing.
	 
	 	(f)	 	Calculations for all financial covenants contained in the Credit Agreement are
set forth in the worksheet attached hereto as Exhibit E.
	 
	 	(g)	 	Except as set forth on Exhibit F attached hereto, there have been no
changes in GAAP or in the application thereof, as used in the preparation of the
Borrower’s consolidated financial statements, since the date of the audited financial
statements referred to in Section 3.04 of the Credit Agreement.

Credit Agreement

Exhibit 5.01

 

 

     EXECUTED AND DELIVERED this ___ day of                                         , 2009.

	 	 	 	 	 
	 	BORROWER:

SERVICE CORPORATION INTERNATIONAL

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Credit Agreement

Exhibit 5.01

 

 

EXHIBIT A to

EXHIBIT 5.01

CALCULATION WORKSHEET FOR

ERISA REPRESENTATION

(SECTION 3.10 OF CREDIT AGREEMENT)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	C. Fair Market	 	 	 	 
	 	 	B. Present Value of Accumulated	 	 	Value of Plan	 	 	 	 
	A. Each Plan	 	Benefit Obligations	 	 	Assets	 	 	Difference between B and C	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	C. Fair Market	 	 	 	 
		 	B. Present Value of Accumulated	 	 	Value of Plan	 	 	 	 
	A. Each Under-funded Plan	 	Benefit Obligations	 	 	Assets	 	 	Difference between B and C	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	 	 	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 

 

			
	1	 	must not exceed $30,000,000
	 
	2	 	must not exceed $50,000,000

Credit Agreement

Exhibit A to Exhibit 5.01

 

 

EXHIBIT B to

EXHIBIT 5.01

INDEBTEDNESS

     As of the date of the attached financial statements:

	 	 	 	 	 	 	 	 	 
	Indebtedness of the Type	 	 	 	 	 	 
	Described in the Credit Agreement	 	Actual Amount	 	 	Covenant Amount	 
	Section 6.01(g) (purchase money,
etc.)
	 	$_____________	 	 	 	 	≤ $75,000,000	 
	 
	 	 	 	 	 	 	 
	Section 6.01(h) (Canadian)
	 	$_____________	 	 	 	 	≤ $100,000,000	 
	 
	 	 	 	 	 	 	 
	Section 6.01(i) (subsidiaries)
	 	$_____________	 	 	 	 	≤ $20,000,000	 
	 
	 	 	 	 	 	 	 
	Section 6.01(j) (covenants not to
compete)
	 	$_____________	 	 	 	 	≤  $50,000,000	 
	 
	 	 	 	 	 	 	 
	Section 6.01(l) (other)
	 	$____________	 	 	 	 	≤ $100,000,000	 
	 
	 	 	 	 	 	 	 

Credit Agreement

Exhibit B to Exhibit 5.01

 

 

EXHIBIT C to

EXHIBIT 5.01

ASSET SALES

(Section 6.07 of Credit Agreement)

	 	 	 	 	 	 	 
	(a)

	 	Asset sales contemplated as a result of the Acquisitions
	 	$	
	1 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(b)

	 	Transfers, leases and other dispositions of assets (excluding accounts
receivable, inventory, used or surplus equipment, Permitted Investments in the ordinary
course of business and any sales, transfers and dispositions to the Borrower or a
Subsidiary):	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	[list dispositions, dates, book value and non-cash consideration]	 	 	 	 
	 
	 	 	 	 	 	 
	(c)

	 	Aggregate book value of all asset dispositions not related to the Acquisitions
described in (b) above.
	 	$	
	2 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(d)

	 	Aggregate maximum book value of all asset dispositions described in (b) above
	 	$	1,622,177,000	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	(e)

	 	Aggregate, non-cash consideration received in connection with assets
dispositions described in (b) above
	 	$	
	3 
	 

	 	 	 	 	 	 

 

			
	1	 	Cannot exceed $90,000,000
	 
	2	 	Cannot exceed $1,622,177,000
	 
	3	 	Cannot exceed $200,000,000

Credit Agreement

Exhibit C to Exhibit 5.01

 

 

EXHIBIT D to

EXHIBIT 5.01

RESTRICTED PAYMENTS

(Section 6.09 of Credit Agreement)

          [Complete Section A if the Leverage Ratio as of the date of the attached financial statements
is greater than 3.75 to 1.0]

          A. (i) List all dividends made by Borrower during the calendar year including the date of the
attached financial statements:

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

               (ii) Minus any dividend in excess of a rate of $18,750,000 per fiscal quarter declared when,
on the date of its declaration, the Leverage Ratio was less than or equal to 3.75 to 1.0:

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

Total: $______________1

          B. List all Borrower dividends and other Restricted Payments during the term of the Credit
Agreement during any period that the Leverage Ratio is less than or equal to 3.75 to 1.0

Total: $______________2

 

			
	1	 	Must not exceed $75,000,000 in the aggregate in any calendar year

	 
	2	 	Unlimited

Credit Agreement

Exhibit D to Exhibit 5.01

 

 

EXHIBIT E to

EXHIBIT 5.01

FINANCIAL COVENANT CALCULATION WORKSHEET

	 	 	 	 	 	 	 	 	 
	 	 	Pro Forma	 	 	Covenant	 
	 	 	Calculation	 	 	Requirement	 
	Interest Coverage Ratio:
	 	 	 	 	 	 	 	 
	(i) Consolidated EBITDA
	 	 	 	 	 	 	 	 
	To
	 	 	 	 	 	 	 	 
	(ii) Consolidated Interest Expense:
	 	 	 	 	 	 	 	 
	the actual Cash Interest Expense (including
imputed interest expense in respect of Capital
Lease Obligations)
	 	 	 	 	 	 	 	 
	Leverage Ratio:
	 	 	 	 	 	 	 	 
	The difference of:
	 	 	 	 	 	 	 	 
	(i) Total Indebtedness
	 	 	 	 	 	 	 	 
	minus
	 	 	 	 	 	 	 	 
	(ii) unrestricted cash on hand in excess of
$25,000,000
	 	 	 	 	 	 	 	 
	To
	 	 	 	 	 	 	 	 
	Consolidated EBITDA
	 	 	 	 	 	 	 	 

Calculation of Consolidated EBITDA

	 	 	 	 	 
	A. Consolidated Operating Income
	 	$	 	 
	 
	 	 	 	 

     (i) minus any gains or plus any losses on sales and impairments of assets, to the extent
included in Consolidated Operating Income;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (ii) plus depreciation and amortization (to the extent included in operating expenses and
excluding amortization of deferred loan costs);

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (iii) plus non-cash stock compensation expense/amortization (to the extent included
in operating expenses);

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (iv) plus rent expense in previous periods associated with assets later capitalized with
on-balance sheet debt;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

Credit Agreement

Exhibit E to Exhibit 5.01

 

 

     (v) plus (A) actual non-recurring cash expenses incurred and related to any acquisition to the
extent included in operating expenses and not to exceed $40,000,000 in aggregate in any 12 month
period, including expenses within the first 24 months after the related acquisition, such as
severance of management and employees, termination costs and buyouts of contracts and lease
agreements, conversions of computer systems and networks, transfer of documents and other assets,
legal and advisory fees directly related to such acquisition, and other items reasonably incurred
of a similar nature and (B) non-cash acquisition expenses that would not otherwise be picked up in
other non-cash addbacks to EBITDA;1

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (vi) plus royalty income from American Memorial Life Insurance Company;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (vii) minus expenses attributable to surety premiums;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (viii) minus Pro Forma Divested EBITDA (to the extent positive and previously included in
operating income) or plus Pro Forma Divested EBITDA (to the extent negative and previously included
in operating income)2;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (ix) plus EBITDA of any acquired operations in the period from the beginning of the period for
which EBITDA is to be determined to the date of such acquisition3;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (x) plus EBITDA of discontinued operations still owned (to the extent positive) and minus
EBITDA of discontinued operations still owned (to the extent negative);

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (xi) plus net cash flow from/to non-consolidated joint ventures to the extent received/paid in
cash; and

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (xii) plus non-recurring and non-cash expenses (to the extent included in operating expenses)
and minus non-recurring and non-cash income (to the extent included in operating income).

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Equals Consolidated EBITDA
	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 

Credit Agreement

Exhibit E to Exhibit 5.01

 

 

B. Calculation of Total Indebtedness

     (i) obligations for borrowed money, deposits, advances, bonds, debentures, notes and any
obligations upon which interest is commonly paid;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (ii) obligations under conditional sale or other title retention agreements relating to
property acquired by the Borrower or its Subsidiaries;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (iii) obligations in respect of deferred purchase price of property or services (excluding
current accounts payable incurred in the ordinary course of business);

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (iv) indebtedness of others secured by any Lien on property owned or acquired by the Borrower
or its Subsidiaries;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (v) Guarantees;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (vi) Capital Lease Obligations;

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (vii) obligations in respect of letters of credit and letters of guaranty; and

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 

     (viii) obligations in respect of banker’s acceptances.

	 	 	 	 	 	 	 	 	 
	 
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Equals Total Indebtedness
	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 

 

			
	1	 	Detail of expenses related to acquisition(s) attached
	 
	2	 	Detail of Pro Forma Divested EBITDA attached
	 
	3	 	Detail of acquired EBITDA attached

Credit Agreement

Exhibit E to Exhibit 5.01

 

 

EXHIBIT F to

EXHIBIT 5.01

CHANGES

Credit Agreement

Exhibit F to Exhibit 5.01

 

 

EXHIBIT 9.04

FORM OF ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1
attached hereto are hereby agreed to and incorporated herein by reference and made a part of this
Assignment and Assumption as if set forth herein in full.

          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii)
above being referred to herein collectively as the “Assigned Interest”). Such sale and assignment
is without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.
	 	Assignor:	 	 
	 
	 	 	 
	 
	 	 	 	 
	2.
	 	Assignee:	 	 
	 
	 	 	 
	 
	 	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1 ]
	 
	 	 	 	 
	3.
	 	Borrower(s):	 	 
	 
	 	 	 
	 
	 	 	 	 
	4.
	 	Administrative Agent:	 	______________________, as the administrative agent under the Credit Agreement

 

			
	1	 	Select as applicable.

Exhibit 9.04-1

 

	 	 	 	 	 
	5.

	 	Credit Agreement:   
	 	[The [amount] Credit Agreement dated as of November 18, 2009 among [name of
Borrower(s)], the Lenders parties thereto, [name of Administrative Agent], as Administrative
Agent, and the other agents parties thereto]
	 
	 	 	 	 
	6.

	 	Assigned Interest:   	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	Amount of	 	 
	 	 	Commitment/Loans	 	Commitment/Loans	 	Percentage Assigned of
	Facility Assigned2	 	for all Lenders	 	Assigned	 	Commitment/Loans3
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 

Effective Date: _________, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

			
	2	 	Fill in the appropriate terminology for the types of
facilities under the Credit Agreement that are being assigned under this
Assignment (e.g. “Revolving Commitment,” “Tranche A Commitment,” “Tranche B
Commitment,” etc.)
	 
	3	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Loans of all Lenders thereunder.

Exhibit 9.04-2

 

	 	 	 	 	 
	[Consented to and]4 Accepted:

[NAME OF ADMINISTRATIVE AGENT], as

Administrative Agent

 	 	 
	By  	 	 	 
	 	Title: 	 	 
	 

	 	 	 	 	 
	[Consented to:]5

[NAME OF RELEVANT PARTY]

 	 	 
	By  	 	 	 
	 	Title: 	 	 
	 

 

			
	4	 	To be added only if the consent of the Administrative
Agent is required by the terms of the Credit Agreement.
	 
	5	 	To be added only if the consent of the Borrower and/or
other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of
the Credit Agreement.

Exhibit 9.04-3

 

ANNEX 1

[__________________]6

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document,7 (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the
financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower,
any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations
under any Loan Document.

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender8, attached to the Assignment and Assumption is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the
Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative
Agent, the Assignor or any other Lender, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

 

			
	6	 	Describe Credit Agreement at option of Administrative
Agent.
	 
	7	 	The term “Loan Document” should be conformed to that
used in the Credit Agreement.
	 
	8	 	The concept of “Foreign Lender” should be conformed to
the section in the Credit Agreement governing withholding taxes and gross-up.

Annex 1 - 1

 

          2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to the Assignee for amounts which have accrued from and after the Effective Date.

          3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment and
Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Texas.

Annex 1 - 2

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 
	LENDER	 	COMMITMENT	 
	JPMorgan Chase Bank, N.A.
	 	$	40,000,000	 
	Compass Bank
	 	$	35,000,000	 
	The Bank of Nova Scotia
	 	$	35,000,000	 
	Amegy Bank National Association
	 	$	30,000,000	 
	Raymond James Bank, FSB
	 	$	30,000,000	 
	Regions Bank
	 	$	30,000,000	 
	SunTrust Bank
	 	$	30,000,000	 
	U.S. Bank National Association
	 	$	30,000,000	 
	Wells Fargo Bank, N.A.
	 	$	30,000,000	 
	Bank of Texas
	 	$	25,000,000	 
	Fifth Third Bank
	 	$	25,000,000	 
	Bank of America, N.A.
	 	$	22,750,000	 
	Sumitomo Mitsui Banking Corporation
	 	$	20,000,000	 
	Merrill Lynch Capital Corporation
	 	$	17,250,000	 
	 
	 	 	 
	TOTAL
	 	$	400,000,000	 
	 
	 	 	 

Schedule 2.01-1

 

SCHEDULE 2.06(k)

EXISTING LETTERS OF CREDIT

Schedule 2.06(k)-1

 

Schedule 2.06(k)

Letters of Credit

Letters Of Credit

	 	 	 	 	 
	Lumberman’s Mutual Casualty Co.
	 	 	6,050,000	 
	Reliance National Indemnity Co.
	 	 	5,769,466	 
	Old Republic Insurance
	 	 	25,737,142	 
	Old Republic Insurance Company of Canada
	 	 	1,431,000	 
	CNA Insurance Cos.
	 	 	1,792,000	 
	American Home Assurance, et al
	 	 	6,600,000	 
	 
	 	 	 
	 
	 
	 	$	47,379,608	 
	 
	 	 	 

 

 

SCHEDULE 3.06

DISCLOSED MATTERS

Schedule 3.06-1

 

Schedule 3.06

Note: As used herein, “SCI”, “Company”, “we”, “our”, and “us” refer to Service Corporation
International and companies owed directly or indirectly by Service Corporation International,
unless the context requires otherwise.

Litigation

     We are a party to various litigation matters, investigations, and proceedings. For each of our
outstanding legal matters, we evaluate the merits of the case, our exposure to the matter, possible
legal or settlement strategies, and the likelihood of an unfavorable outcome. We intend to
vigorously defend ourselves in the lawsuits described herein; however, if we determine that an
unfavorable outcome is probable and can be reasonably estimated, we establish the necessary
accruals. We hold certain insurance policies that may reduce cash outflows with respect to an
adverse outcome of certain of these litigation matters. We accrue such insurance recoveries when
they become probable of being paid and can be reasonably estimated.

     Conley Investment Counsel v. Service Corporation International, et al.; Civil Action
04-MD-1609; in the United States District Court for the Southern District of Texas, Houston
Division (the “2003 Securities Lawsuit”). The 2003 Securities Lawsuit resulted from the transfer
and consolidation by the Judicial Panel on Multidistrict Litigation of three lawsuits —  Edgar
Neufeld v. Service Corporation International, et al. ; Cause No. CV-S-03-1561-HDM-PAL; in the
United States District Court for the District of Nevada; and Rujira Srisythemp v. Service
Corporation International, et al .; Cause No. CV-S-03-1392-LDG-LRL; in the United States District
Court for the District of Nevada; and Joshua Ackerman v. Service Corporation International, et al .; Cause No. 04-CV-20114; in the United States District Court for the Southern District of Florida.
The 2003 Securities Lawsuit names as defendants SCI and several of SCI’s current and former
executive officers or directors. The 2003 Securities Lawsuit is a purported class action alleging
that the defendants failed to disclose the unlawful treatment of human remains and burial sites at
two cemeteries in Fort Lauderdale and West Palm Beach, Florida. No discovery has occurred, and we
cannot quantify our ultimate liability, if any, for the payment of damages.

     Burial Practices Claims. We are named as a defendant in various lawsuits alleging improper
burial practices at certain of our cemetery locations. These lawsuits include the Garcia and
Sands lawsuits described in the following paragraphs.

     Reyvis Garcia and Alicia Garcia v. Alderwoods Group, Inc., Osiris Holding of Florida, Inc, a
Florida corporation, d/b/a Graceland Memorial Park South, f/k/a Paradise Memorial Gardens, Inc. ,
was filed in December 2004, in the Circuit Court of the Eleventh Judicial Circuit in and for
Miami-Dade County, Florida, Case No.: 04-25646 CA 32. Plaintiffs are the son and sister of the
decedent, Eloisa Garcia, who was buried at Graceland Memorial Park South in March 1986, when the
cemetery was owned by Paradise Memorial Gardens, Inc. Initially, the suit sought damages on the
individual claims of the plaintiffs relating to the burial of Eloisa Garcia. Plaintiffs claimed
that due to poor record keeping, spacing issues and maps, and the fact that the family could not
afford to purchase a marker for the grave, the burial location of the decedent could not be readily
located. Subsequently, the decedent’s grave was located and verified. In July 2006, plaintiffs
amended their complaint, seeking to certify a class of all persons buried at

 

 

this
cemetery whose burial sites cannot be located, claiming that this was due to poor record keeping,
maps, and surveys at the cemetery. Plaintiffs subsequently filed a third amended class action
complaint and added two additional named plaintiffs. The plaintiffs are seeking unspecified
monetary damages, as well as equitable and injunctive relief. No class has been certified in this
matter. Since the action is in its preliminary stages, we cannot quantify our ultimate liability,
if any, for the payment of any damages.

     F. Charles Sands, individually and on behalf of all others similarly situated, v. Eden
Memorial Park, et al.; Case No. BC421528; in the Superior Court of the State of California for the
County of Los Angeles — Central District. This case was filed in September 2009 against SCI and
certain subsidiaries regarding our Eden Memorial Park cemetery in Mission Hills, California. The
plaintiff seeks to certify a class of cemetery plot owners and their families. The plaintiff claims
the cemetery damaged and desecrated burials in order to make room for subsequent burials. Since the
case is in its preliminary stages, we cannot quantify our ultimate liability, if any, for the
payment of any damages.

     Antitrust Claims. We are named as a defendant in an antitrust case filed in 2005. The case is
Cause No 4:05-CV-03394; Funeral Consumers Alliance, Inc. v. Service Corporation International, et
al .; in the United States District Court for the Southern District of Texas — Houston (“Funeral
Consumers Case”). This was a purported class action on behalf of casket consumers throughout the
United States alleging that we and several other companies involved in the funeral industry
violated federal antitrust laws and state consumer laws by engaging in various anti-competitive
conduct associated with the sale of caskets. Based on the case proceeding as a class action, the
plaintiffs filed an expert report indicating that the damages sought from all defendants range from
approximately $950 million to $1.5 billion, before trebling. We deny that we engaged in
anticompetitive practices related to our casket sales and we have filed reports of our experts,
which vigorously dispute the validity of the plaintiffs’ damages theories and calculations.

     To date, we have successfully contested the class action allegations. In November 2008, the
Magistrate Judge issued recommendations that motions for class certification be denied in the
Funeral Consumers Case. In March 2009, the District Court affirmed the Magistrate Judge’s
recommendations and denied class certification. In June 2009, the Fifth Circuit Court of Appeals
denied the plaintiffs’ motion requesting permission to appeal the District Court’s ruling denying
class certification. Also in June 2009, the Fifth Circuit Court of Appeals denied plaintiffs motion
requesting that the court reconsider its ruling.

     In addition to the Funeral Consumers Case, we received Civil Investigative Demands, dated
August 2005 and February 2006, from the Attorney General of Maryland on behalf of itself and other
state attorneys general, who commenced an investigation of alleged anticompetitive practices in the
funeral industry. We also received similar Civil Investigative Demands from the Attorneys General
of Florida and Connecticut. In the second and third quarters of 2009, we received notice that the
Attorneys General of Conneticut, Maryland, and Florida had closed their respective investigations.

     Wage and Hour Claims. We are named a defendant in various lawsuits alleging violations of
federal and state laws regulating wage and hour overtime pay, including the Prise, Bryant, Bryant,
Stickle , and Welch lawsuits described in the following paragraphs.

     Prise, et al., v. Alderwoods Group, Inc., and Service Corporation International; Cause No.

 

 

06-164; in the United States District Court for the Western District of Pennsylvania (the “Wage and
Hour Lawsuit”). The Wage and Hour Lawsuit was filed by two former Alderwoods (Pennsylvania), Inc.,
employees in December 2006 and purports to have been brought under the Fair Labor Standards Act
(“FLSA”) on behalf of all Alderwoods and SCI-affiliated employees who performed work for which they
were not fully compensated, including work for which overtime pay was owed. The court has
conditionally certified a class of claims as to certain job positions for Alderwoods employees.

     Plaintiffs allege causes of action for violations of the FLSA, failure to maintain proper
records, breach of contract, violations of state wage and hour laws, unjust enrichment, fraud and
deceit, quantum meruit, negligent misrepresentation, and negligence. Plaintiffs seek injunctive
relief, unpaid wages, liquidated, compensatory, consequential and punitive damages, attorneys’ fees
and costs, and pre- and post-judgment interest. We cannot quantify our ultimate liability, if any,
in this lawsuit.

     Bryant, et al. v. Alderwoods Group, Inc., Service Corporation International, et al.; Case No.
3:07-CV-5696-SI; in the U.S. District Court for the Northern District of California. This lawsuit
was filed on November 8, 2007 against SCI and various subsidiaries and individuals. It too is
related to the Wage and Hour Lawsuit, raising similar claims and brought by the same attorneys.
This lawsuit has been transferred to the U.S. District Court for the Western District of
Pennsylvania and is now Case No. 08-CV-00891-JFC. We cannot quantify our ultimate liability, if
any, in this lawsuit.

     Bryant, et al. v. Service Corporation International, et al.; Case No. RG-07359593; and Helm,
et al. v. AWGI & SCI; Case No. RG-07359602; in the Superior Court of the State of California,
County of Almeda. These cases were filed on December 5, 2007 by counsel for plaintiffs in the Wage
and Hour Lawsuit. These cases assert state law claims similar to the federal claims asserted in the
Wage and Hour Lawsuit. These cases were removed to federal court in the U.S. District Court for the
Northern District of California, San Francisco/Oakland Division. The Bryant case is now Case No.
3:08-CV-01190-SI and the Helm case is now Case No. 2:-CV-01184- SI. We cannot quantify our
ultimate liability, if any, in these lawsuits.

     Stickle, et al. v. Service Corporation International, et al.; Case No. 08-CV-83; in the U.S.
District Court for Arizona, Phoenix Division. Counsel for plaintiffs in the Wage and Hour Lawsuit
filed this case on January 17, 2008, against SCI and various related entities and individuals
asserting FLSA and other ancillary claims based on the alleged failure to pay for overtime. In
September 2009, the Court conditionally certified a class of claims as to certain job positions of
SCI affiliated employees. We cannot quantify our ultimate liability, if any, in this lawsuit.

     Shauna Welch v. California Cemetery & Funeral Services, LLC; Case No. BC 396793; in the
Superior Court of the State of California, for the County of Los Angeles. In August 2008, the
plaintiff filed a class action on behalf of employees of a subsidiary in California for alleged
violations of the California Labor Code and the Business & Professions Code. The plaintiff
specifically alleges that she and the putative class are unable to negotiate their paychecks
without paying a fee and/or without being subject to a waiting period since paychecks are issued
from an out-of-state bank. We cannot quantify our ultimate liability, if any, in this lawsuit.

     The ultimate outcome of the matters described above cannot be determined at this time. We
intend to vigorously defend all of the above lawsuits; however, an adverse decision in one or

 

 

more of such matters could have a material effect on us, our financial condition, results of
operations, and cash flows.

’09.10Q.Litigation Insert.Schedule 3.06.Master 11.6

 

 

SCHEDULE 3.12

LIST OF SUBSIDIARIES

See attached.

Schedule 3.12-1

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	CA

	 	ADVANCE FUNERAL INSURANCE SERVICES
	 	Alderwoods Group (California), Inc.
	 	 	100.00	%
	IN

	 	ADVANCE PLANNING OF AMERICA, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	AL

	 	ADVANCED PLANNING (ALABAMA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	GA

	 	ADVANCED PLANNING OF GEORGIA, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	ALDERWOODS (ALABAMA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	AK

	 	ALDERWOODS (ALASKA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	AZ

	 	ALDERWOODS (ARIZONA), INC.
	 	Alderwoods Group, LLC
	 	 	55.00	%
	 

	 	ALDERWOODS (ARIZONA), INC.
	 	Osiris Holding Corporation
	 	 	45.00	%
	AR

	 	ALDERWOODS (ARKANSAS), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IL

	 	ALDERWOODS (CHICAGO CENTRAL), INC.
	 	Alderwoods (Illinois), Inc.
	 	 	71.00	%
	 

	 	ALDERWOODS (CHICAGO NORTH), INC.
	 	RG Memorial Chapels, Inc.
	 	 	56.25	%
	 

	 	ALDERWOODS (CHICAGO NORTH), INC.
	 	Alderwoods Group, LLC
	 	 	43.65	%
	CO

	 	ALDERWOODS (COLORADO), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	CT

	 	ALDERWOODS (CONNECTICUT), INC.
	 	Alderwoods Group, LLC
	 	 	51.80	%
	 

	 	ALDERWOODS (CONNECTICUT), INC.
	 	Alderwoods (New York), Inc.
	 	 	48.20	%
	DE

	 	ALDERWOODS (DELAWARE), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	GA

	 	ALDERWOODS (GEORGIA) HOLDINGS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	GA

	 	ALDERWOODS (GEORGIA), INC.
	 	Alderwoods Group, LLC
	 	 	37.00	%
	 

	 	ALDERWOODS (GEORGIA), INC.
	 	Carothers Holding Company, Inc.
	 	 	55.00	%
	 

	 	ALDERWOODS (GEORGIA), INC.
	 	Poteet Holdings, Inc.
	 	 	8.00	%
	ID

	 	ALDERWOODS (IDAHO), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IL

	 	ALDERWOODS (ILLINOIS), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IN

	 	ALDERWOODS (INDIANA), INC.
	 	Alderwoods Group, LLC
	 	 	88.50	%
	 

	 	ALDERWOODS (INDIANA), INC.
	 	Alderwoods (Tennessee), LLC
	 	 	11.50	%
	KS

	 	ALDERWOODS (KANSAS), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MD

	 	ALDERWOODS (MARYLAND), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MA

	 	ALDERWOODS (MASSACHUSETTS), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MI

	 	ALDERWOODS (MICHIGAN), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MN

	 	ALDERWOODS (MINNESOTA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	ALDERWOODS (MISSISSIPPI), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	MO

	 	ALDERWOODS (MISSOURI), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MT

	 	ALDERWOODS (MONTANA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NV

	 	ALDERWOODS (NEVADA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NM

	 	ALDERWOODS (NEW MEXICO), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NY

	 	ALDERWOODS (NEW YORK), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NC

	 	ALDERWOODS (NORTH CAROLINA), INC.
	 	Alderwoods Group, LLC
	 	 	48.80	%
	 

	 	ALDERWOODS (NORTH CAROLINA), INC.
	 	Carothers Holding Company, Inc.
	 	 	50.70	%
	 

	 	ALDERWOODS (NORTH CAROLINA), INC.
	 	Lineberry Group, Inc
	 	 	0.50	%
	OH

	 	ALDERWOODS (OHIO) FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	OK

	 	ALDERWOODS (OKLAHOMA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	OR

	 	ALDERWOODS (OREGON), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	KY

	 	ALDERWOODS (PARTNER), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	PA

	 	ALDERWOODS (PENNSYLVANIA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	RI

	 	ALDERWOODS (RHODE ISLAND), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	SC

	 	ALDERWOODS (SOUTH CAROLINA), INC.
	 	Alderwoods Group, LLC
	 	 	44.00	%
	 

	 	ALDERWOODS (SOUTH CAROLINA), INC.
	 	Carothers Holding Company, Inc.
	 	 	56.00	%
	TN

	 	ALDERWOODS (TENNESSEE), LLC
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	ALDERWOODS (TEXAS) CEMETERY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	ALDERWOODS (TEXAS) L.P.
	 	Alderwoods (Partner), Inc.
	 	General Partner

	CA

	 	ALDERWOODS (TEXAS), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	VA

	 	ALDERWOODS (VIRGINIA), INC.
	 	Alderwoods Group, LLC
	 	 	52.90	%
	 

	 	ALDERWOODS (VIRGINIA), INC.
	 	Carothers Holding Company, Inc.
	 	 	0.50	%
	 

	 	ALDERWOODS (VIRGINIA), INC.
	 	Lineberry Group, Inc
	 	 	46.60	%
	WA

	 	ALDERWOODS (WASHINGTON), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	WV

	 	ALDERWOODS (WEST VIRGINIA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	WI

	 	ALDERWOODS (WISCONSIN), INC.
	 	Alderwoods Group, LLC
	 	 	99.00	%
	 

	 	ALDERWOODS (WISCONSIN), INC.
	 	Osiris Holding Corporation
	 	 	1.00	%
	CA

	 	ALDERWOODS GROUP (CALIFORNIA), INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	ALDERWOODS GROUP, LLC
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	ALDERWOODS LIFE INSURANCE GROUP, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	AMERICAN BURIAL AND CREMATION CENTERS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MI

	 	AMG, INC.
	 	Alderwoods (Delaware), Inc.
	 	 	100.00	%
	OH

	 	BENNETT-EMMERT-SZAKOVITS FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	PA

	 	BRIGHT UNDERTAKING COMPANY
	 	Alderwoods Group, LLC
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	NC

	 	CAROTHERS HOLDING COMPANY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IL

	 	CHAPEL HILL MEMORIAL GARDENS & FUNERAL HOME LTD.
	 	Alderwoods (Illinois), Inc.
	 	 	100.00	%
	IL

	 	CHICAGO CEMETERY CORPORATION
	 	Alderwoods (Illinois), Inc.
	 	 	100.00	%
	FL

	 	CORAL RIDGE FUNERAL HOME AND CEMETERY, INC.
	 	Alderwoods (Minnesota), Inc.
	 	 	100.00	%
	DE

	 	DIRECTORS (TEXAS) L.P.
	 	DSP General Partner, Inc.
	 	General Partner

	TX

	 	DIRECTORS CEMETERY (TEXAS), INC.
	 	Directors Succession Planning, Inc
	 	 	100.00	%
	CA

	 	DIRECTORS SUCCESSION PLANNING II, INC.
	 	Directors Succession Planning, Inc
	 	 	100.00	%
	CA

	 	DIRECTORS SUCCESSION PLANNING, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MA

	 	DOBA-HABY INSURANCE AGENCY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	DRMP HOLDINGS, INC.
	 	Directors Cemetery (Texas), Inc.
	 	 	100.00	%
	CA

	 	DSP GENERAL PARTNER II, INC.
	 	DSP General Partner, Inc.
	 	 	100.00	%
	TX

	 	DSP GENERAL PARTNER, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	DUNWOOD CEMETERY SERVICE COMPANY
	 	Alderwoods Group, LLC
	 	 	80.00	%
	 

	 	DUNWOOD CEMETERY SERVICE COMPANY
	 	Jackson’s-Burks-Walker-Tippitt
	 	 	20.00	%
	TN

	 	EAGLE FINANCIAL ASSOCIATES, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	EARTHMAN HOLDINGS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	CA

	 	EARTHMAN LP, INC.
	 	Earthman Holdings, Inc.
	 	 	100.00	%
	IL

	 	ELMWOOD ACQUISITION CORPORATION
	 	Osiris Holding Corporation
	 	 	100.00	%
	WA

	 	EVERGREEN FUNERAL HOME AND CEMETERY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MS

	 	FAMILY CARE, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	FUNERAL SERVICE, INC.
	 	SCI Texas
	 	 	100.00	%
	FL

	 	FUNERAL SERVICES ACQUISITION GROUP, LLC
	 	MHI Group, LLC
	 	 	100.00	%
	FL

	 	GARDEN SANCTUARY ACQUISITION, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	SC

	 	GRACELAND CEMETERY DEVELOPMENT CO.
	 	Alderwoods (Georgia) Holdings, Inc.
	 	 	100.00	%
	WA

	 	GREEN SERVICE CORPORATION
	 	Alderwoods Group, LLC
	 	 	100.00	%
	PA

	 	H. SAMSON, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	H.P. BRANDT FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	HFCC HOLDINGS, INC.
	 	Earthman Holdings, Inc.
	 	 	100.00	%
	TX

	 	HFJC HOLDINGS, INC.
	 	Earthman Holdings, Inc.
	 	 	100.00	%
	FL

	 	KADEK ENTERPRISES OF FLORIDA, INC.
	 	Alderwoods (Minnesota), Inc.
	 	 	100.00	%
	PA

	 	KNEE FUNERAL HOME OF WILKINSBURG, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NC

	 	LINEBERRY GROUP, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NC

	 	MFH, L.L.C.
	 	Carothers Holding Company, Inc.
	 	 	100.00	%
	FL

	 	MHI GROUP, LLC
	 	Alderwoods Group, LLC
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	IL

	 	MOUNT AUBURN MEMORIAL PARK, INC.
	 	Alderwoods (Illinois), Inc.
	 	 	100.00	%
	FL

	 	NAPLES MEMORIAL GARDENS, INC.
	 	Security Trust Plans, Inc.
	 	 	100.00	%
	PA

	 	NINETEEN THIRTY-FIVE HOLDINGS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NY

	 	NORTHEAST MONUMENT COMPANY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	WI

	 	NORTHERN LAND COMPANY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	PA

	 	OAK WOODS MANAGEMENT COMPANY
	 	Osiris Holding Corporation
	 	 	100.00	%
	DE

	 	OSIRIS HOLDING CORPORATION
	 	Alderwoods Group, LLC
	 	 	100.00	%
	FL

	 	OSIRIS HOLDING OF FLORIDA, INC.
	 	Osiris Holding Corporation
	 	 	100.00	%
	TX

	 	PANOLA COUNTY RESTLAND MEMORIAL PARK, INC.
	 	Directors Cemetery (Texas), Inc.
	 	 	100.00	%
	AR

	 	PHOENIX MEMORIAL PARK ASSOCIATION
	 	Osiris Holding Corporation
	 	 	100.00	%
	IL

	 	PINEVIEW MEMORIAL PARK, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	PIONEER FUNERAL PLANS, INC.
	 	Directors (Texas) L.P.
	 	 	100.00	%
	GA

	 	POTEET HOLDINGS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NC

	 	REEVES, INC.
	 	Alderwoods (Georgia) Holdings, Inc.
	 	 	100.00	%
	FL

	 	RG MEMORIAL CHAPELS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	RH CEMETERY CORP.
	 	Rose Hills Company
	 	 	100.00	%
	CA

	 	RH MORTUARY CORPORATION
	 	Rose Hills Company
	 	 	100.00	%
	IL

	 	RIDGEWOOD CEMETERY COMPANY, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	NH

	 	ROBERT DOUGLAS GOUNDREY FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	DE

	 	ROSE HILLS COMPANY
	 	Rose Hills Holdings Corp.
	 	 	100.00	%
	DE

	 	ROSE HILLS HOLDINGS CORP.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IL

	 	RUZICH FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	TX

	 	S & H PROPERTIES AND ENTERPRISES, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	FL

	 	SECURITY TRUST PLANS, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	GA

	 	SOUTHEASTERN FUNERAL HOMES, INC.
	 	Alderwoods (Georgia) Holdings, Inc.
	 	 	100.00	%
	MS

	 	STEPHENS BURIAL ASSOCIATION, INC.
	 	Alderwoods (Mississippi), Inc.
	 	 	100.00	%
	MS

	 	STEPHENS FUNERAL BENEFIT ASSOCIATION, INC.
	 	Alderwoods (Mississippi), Inc.
	 	 	100.00	%
	MS

	 	STEPHENS FUNERAL FUND, INC.
	 	Alderwoods (Mississippi), Inc.
	 	 	100.00	%
	NH

	 	ST. LAURENT FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MS

	 	THE FRANK J. FISHER FUNERAL INSURANCE COMPANY
	 	Alderwoods (Mississippi), Inc.
	 	 	100.00	%
	MS

	 	THWEATT FUNERAL INSURANCE COMPANY, INC.
	 	Alderwoods (Mississippi), Inc.
	 	 	100.00	%
	TX

	 	TYLER MEMORIAL FUNERAL HOME AND CHAPEL, INC.
	 	DSP General Partner, Inc.
	 	 	100.00	%
	OR

	 	UNIVERSAL MEMORIAL CENTERS I, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%
	OR

	 	UNIVERSAL MEMORIAL CENTERS II, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	OR

	 	UNIVERSAL MEMORIAL CENTERS III, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%
	CA

	 	UNIVERSAL MEMORIAL CENTERS V, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%
	CA

	 	UNIVERSAL MEMORIAL CENTERS VI, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%
	TX

	 	VANCOUVER FUNERAL CHAPEL, INC.
	 	S & H Properties and Enterprises, Inc.
	 	 	100.00	%
	TX

	 	WACO MEMORIAL PARK, INC.
	 	Alderwoods (Georgia) Holdings, Inc.
	 	 	100.00	%
	NC

	 	WESTMINSTER GARDENS, INC.
	 	Alderwoods (North Carolina), Inc.
	 	 	100.00	%
	MI

	 	WMP, INC.
	 	Alderwoods (Delaware), Inc.
	 	 	100.00	%
	IL

	 	WOODLAWN CEMETERY OF CHICAGO, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	IL

	 	WOODLAWN MEMORIAL PARK, INC.
	 	Alderwoods (Chicago Central), Inc.
	 	 	100.00	%
	CA

	 	WORKMAN MILL INVESTMENT COMPANY
	 	RH Cemetery Corp.
	 	 	100.00	%
	NH

	 	ZS ACQUISITION, INC.
	 	Alderwoods (Massachussetts) ,Inc.
	 	 	100.00	%
	MA

	 	AFFILIATED FAMILY FUNERAL SERVICE, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	PA

	 	AUMAN FUNERAL HOME, INC.
	 	SCI Pennsylvania Funeral Services, Inc.
	 	 	100.00	%
	PA

	 	AUMAN’S, INC.
	 	Theo C. Auman, Inc.
	 	 	100.00	%
	MD

	 	BAMFH, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	BURGEE-HENSS-SEITZ FUNERAL HOME, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	CALIFORNIA CEMETERY AND FUNERAL SERVICES, LLC
	 	SCI California Funeral Services, Inc.
	 	 	5.00	%
	 

	 	CALIFORNIA CEMETERY AND FUNERAL SERVICES, LLC
	 	ECI Capital Corporation
	 	 	95.00	%
	DE

	 	CEMCARE, INC.
	 	SCI Texas Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	CHARLES S. ZEILER & SON, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	NY

	 	CHAS. PETER NAGEL INC.
	 	SCI Funeral Services of New York, Inc.
	 	 	100.00	%
	DE

	 	CHRISTIAN FUNERAL SERVICES, INC.
	 	Service Corporation International
	 	 	100.00	%
	MD

	 	DANZANSKY-GOLDBERG MEMORIAL CHAPELS, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	DIGNITY MEMORIAL NETWORK, INC.
	 	SCI Management L.P.
	 	 	100.00	%
	AL

	 	ECI ALABAMA SERVICES, LLC
	 	SCI Georgia Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	ECI CAPITAL CORPORATION
	 	SCI California Funeral Services, Inc.
	 	 	100.00	%
	GA

	 	ECI CEMETERY SERVICES OF GEORGIA, LLC
	 	SCI Georgia Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	ECI CEMETERY SERVICES OF MARYLAND, LLC
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	ECI SERVICES OF MAINE, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	ECI SERVICES OF NEW HAMPSHIRE, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	ECI SERVICES OF SOUTH DAKOTA, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	ECI SERVICES OF VERMONT, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	ECI-CHAPEL HILL, INC.
	 	ECI Alabama Services, LLC
	 	 	100.00	%
	PA

	 	ED MELENYZER CO.
	 	SCI Pennsylvania Funeral Services, Inc.
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	MD

	 	EDWARD SAGEL FUNERAL DIRECTION, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	PA

	 	ENSURE AGENCY OF PENNSYLVANIA, INC.
	 	Memorial Guardian Plans, Inc.
	 	 	100.00	%
	TX

	 	FHC REALTY, INC.
	 	SCI Texas Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	FLECK FUNERAL HOME, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	FL

	 	FLORIDA MARKER, LLC
	 	SCI Funeral Services of Florida, Inc.
	 	 	100.00	%
	FL

	 	FOUNTAINHEAD MEMORIAL PARK, LLC
	 	SCI Funeral Services of Florida, Inc.
	 	 	100.00	%
	PA

	 	FRANCIS F. SEIDEL, INC.
	 	Theo C. Auman, Inc.
	 	 	100.00	%
	PA

	 	FUNERAL CORPORATION PENNSYLVANIA
	 	SCI Pennsylvania Funeral Services, Inc.
	 	 	100.00	%
	NJ

	 	GARDEN STATE CREMATORY, INC.
	 	SCI New Jersey Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	GARY L. KAUFMAN FUNERAL HOME AT MEADOWRIDGE MEMORIAL
PARK, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	GARY L. KAUFMAN FUNERAL HOME SOUTHWEST, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	GEORGE WASHINGTON CEMETERY COMPANY, LLC
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	PA

	 	HAROLD B. MULLIGAN CO., INC.
	 	SCI Pennsylvania Funeral Services, Inc.
	 	 	100.00	%
	HI

	 	HAWAIIAN MEMORIAL LIFE PLAN, LTD.
	 	SCI Hawaii Funeral Services, Inc.
	 	 	100.00	%
	NY

	 	I. J. MORRIS, INC.
	 	SCI Funeral Services of New York, Inc.
	 	 	100.00	%
	TX

	 	INVESTMENT CAPITAL CORPORATION
	 	SCI Capital Corporation
	 	 	100.00	%
	DC

	 	JOSEPH GAWLER’S SONS, LLC
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	LAKE VIEW MANAGEMENT COMPANY, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	PA

	 	LAUGHLIN FUNERAL HOME, LTD.
	 	Funeral Corporation Pennsylvania
	 	 	100.00	%
	MD

	 	LEMMON FUNERAL HOME OF DULANEY VALLEY, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	LORING BYERS FUNERAL DIRECTORS, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	MAKING EVERLASTING MEMORIES, LLC
	 	SCI Financial Services, Inc.
	 	 	80.00	%
	 

	 	MAKING EVERLASTING MEMORIES, LLC
	 	G. Scott Mindrum
	 	 	20.00	%
	NH

	 	MCHUGH FUNERAL HOME, INC.
	 	Alderwoods Group, LLC
	 	 	100.00	%
	MO

	 	MEMORIAL GUARDIAN PLANS, INC.
	 	SCI Missouri Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	MEMORIAL GUARDIAN PLANS, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	MD

	 	MILLER-DIPPEL FUNERAL HOME, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	MORAN-ASHTON FUNERAL HOME, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	CA

	 	MOUNT VERNON MEMORIAL PARK
	 	SCI California Funeral Services, Inc.
	 	 	100.00	%
	MD

	 	NATIONAL CREMATION SERVICE, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	NY

	 	NEW YORK FUNERAL CHAPELS, INC.
	 	SCI Funeral Services of New York, Inc.
	 	 	100.00	%
	NY

	 	NEW YORK MARKER, LLC
	 	SCI Funeral Services of New York, Inc.
	 	 	100.00	%
	DE

	 	PINEY GROVE, LLC
	 	SCI Special, Inc.
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	DE

	 	PSI FUNDING, INC.
	 	SCI Texas Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	REMEMBRANCE MEMORIAL TRADITIONS, LLC
	 	SCI Special, Inc.
	 	 	100.00	%
	PA

	 	ROBERT L. HENDRICKS FUNERAL HOME, INC.
	 	Funeral Corporation Pennsylvania	 	 	 	 
	PA

	 	ROHLAND FUNERAL HOME
	 	Funeral Corporation Pennsylvania
	 	 	100.00	%
	WV

	 	ROSEDALE CEMETERY COMPANY
	 	SCI West Virginia Funeral Services, Inc.
	 	 	100.00	%
	WV

	 	ROSEDALE FUNERAL CHAPEL, INC.
	 	SCI West Virginia Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	SALVATORE AIR TRANSPORTATION CORP.
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	SAUL-GABAUER FUNERAL HOME, INC.
	 	SCI Pennsylvania Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	SCI ADMINISTRATIVE SERVICES, LLC
	 	SCI Special, Inc.
	 	 	100.00	%
	AL

	 	SCI ALABAMA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	AK

	 	SCI ALASKA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	AZ

	 	SCI ARIZONA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	AR

	 	SCI ARKANSAS FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	CA

	 	SCI CALIFORNIA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	SCI CAPITAL CORPORATION
	 	SCI Special, Inc.
	 	 	100.00	%
	DE

	 	SCI CERBERUS, LLC
	 	SCI International Limited
	 	 	100.00	%
	CO

	 	SCI COLORADO FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	CT

	 	SCI CONNECTICUT FUNERAL SERVICES, LLC
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	TX

	 	SCI EASTERN MARKET SUPPORT CENTER, L.P.
	 	SCI Management L.P.
	 	Limited Partner

	 

	 	SCI EASTERN MARKET SUPPORT CENTER, L.P.
	 	SCI Eops HQ, Inc.
	 	General Partner

	NY

	 	SCI EOPS HQ, INC.
	 	SCI Management L.P.
	 	 	100.00	%
	DE

	 	SCI EXECUTIVE SERVICES, INC.
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	SCI FINANCIAL SERVICES, INC.
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	SCI FUNERAL & CEMETERY PURCHASING COOPERATIVE, INC.
	 	SCI Eastern Market Support Center, L.P.
	 	 	25.00	%
	 

	 	SCI FUNERAL & CEMETERY PURCHASING COOPERATIVE, INC.
	 	SCI Western Market Support Center, Inc.
	 	 	25.00	%
	 

	 	SCI FUNERAL & CEMETERY PURCHASING COOPERATIVE, INC.
	 	SCI Houston Market Support Center, L.P.
	 	 	25.00	%
	 

	 	SCI FUNERAL & CEMETERY PURCHASING COOPERATIVE, INC.
	 	Service Corporation International (Canada) Limited
	 	 	25.00	%
	FL

	 	SCI FUNERAL SERVICES OF FLORIDA, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NY

	 	SCI FUNERAL SERVICES OF NEW YORK, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	IA

	 	SCI FUNERAL SERVICES, LLC
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	SCI GEORGIA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	GA

	 	SCI GEORGIA LAND, INC.
	 	SCI Georgia Funeral Services, Inc.
	 	 	100.00	%
	TX

	 	SCI HOUSTON HUB, INC.
	 	SCI Management L.P.
	 	 	100.00	%
	TX

	 	SCI HOUSTON MARKET SUPPORT CENTER, L.P.
	 	SCI Management L.P.
	 	Limited Partner

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	 

	 	SCI HOUSTON MARKET SUPPORT CENTER, L.P.
	 	SCI Houston Hub, Inc.
	 	General Partner

	IL

	 	SCI ILLINOIS SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	SCI INDIANA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	SCI INTERNATIONAL LIMITED
	 	Service Corporation International
	 	 	100.00	%
	DE

	 	SCI INVESTMENT SERVICES, INC.
	 	SCI Financial Services, Inc.
	 	 	100.00	%
	DE

	 	SCI IOWA FINANCE COMPANY
	 	SCI Iowa Funeral Services, Inc.
	 	 	100.00	%
	IA

	 	SCI IOWA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	KS

	 	SCI KANSAS FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	KY

	 	SCI KENTUCKY FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	99.00	%
	DE

	 	SCI LOAN SERVICES, LLC
	 	SCI Virginia Funeral Services, Inc.
	 	 	100.00	%
	LA

	 	SCI LOUISIANA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	SCI MANAGEMENT L.P.
	 	SCI Administrative Services, LLC
	 	General Partner

	 

	 	SCI MANAGEMENT L.P.
	 	Remembrance Memorial Traditions, LLC
	 	Limited Partner

	MD

	 	SCI MARYLAND FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	MI

	 	SCI MICHIGAN FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	MN

	 	SCI MINNESOTA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	MS

	 	SCI MISSISSIPPI FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	MO

	 	SCI MISSOURI FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NE

	 	SCI NEBRASKA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NJ

	 	SCI NEW JERSEY FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NM

	 	SCI NEW MEXICO FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NC

	 	SCI NORTH CAROLINA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	OH

	 	SCI OHIO FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	OK

	 	SCI OKLAHOMA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	OR

	 	SCI OREGON FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	PA

	 	SCI PENNSYLVANIA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	RI

	 	SCI RHODE ISLAND FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	SC

	 	SCI SOUTH CAROLINA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	DE

	 	SCI SPECIAL, INC.
	 	Service Corporation International
	 	 	100.00	%
	TN

	 	SCI TENNESSEE FUNERAL SERVICES, LLC
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	NV

	 	SCI TEXAS FINANCE COMPANY
	 	SCI Texas Funeral Services, Inc.
	 	 	100.00	%
	DE

	 	SCI TEXAS FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	UT

	 	SCI UTAH FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	VA

	 	SCI VIRGINIA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	WA

	 	SCI WASHINGTON FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	WV

	 	SCI WEST VIRGINIA FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	CA

	 	SCI WESTERN MARKET SUPPORT CENTER, INC.
	 	SCI Management L.P.
	 	 	100.00	%
	WI

	 	SCI WISCONSIN FUNERAL SERVICES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	VA

	 	SENTINEL SECURITY PLANS, INC.
	 	Memorial Guardian Plans, Inc.
	 	 	100.00	%
	MD

	 	STERLING-ASHTON-SCHWAB FUNERAL HOME, INC.
	 	SCI Maryland Funeral Services, Inc.
	 	 	100.00	%
	 

	 	STERLING-ASHTON-SCHWAB-WITZKE-FUNERAL HOME OF
CATONSVILLE, INC.
	 	SCI Maryland Funeral Services, Inc.	 	 	 	 
	DE

	 	STORMY SKY, LLC
	 	SCI Capital Corporation
	 	 	100.00	%
	TX

	 	TEXAS MARKER, L.P.
	 	Professional Funeral Traditions, LLC
	 	Limited Partner

	 

	 	TEXAS MARKER, L.P.
	 	SCI Texas Funeral Services, Inc.
	 	General Partner

	OH

	 	THE KNOLLWOOD CEMETERY COMPANY
	 	SCI Ohio Funeral Services, Inc.
	 	 	100.00	%
	PA

	 	THEO C. AUMAN, INC.
	 	Funeral Corporation Pennsylvania
	 	 	100.00	%
	NY

	 	THOMAS M. QUINN & SONS, INC.
	 	SCI Funeral Services of New York, Inc.
	 	 	100.00	%
	TX

	 	TMJ LAND, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	OR

	 	UNISERVICE CORPORATION
	 	SCI Oregon Funeral Services, Inc.
	 	 	100.00	%
	UT

	 	WASATCH LAND AND IMPROVEMENT COMPANY
	 	SCI Utah Funeral Services, Inc.
	 	 	100.00	%
	TX

	 	WFG LIQUIDATION CORPORATION
	 	SCI Texas Funeral Services, Inc.
	 	 	100.00	%
	NJ

	 	WIEN & WIEN, INC.
	 	SCI New Jersey Funeral Services, Inc.
	 	 	100.00	%
	DC

	 	WITZKE FUNERAL HOMES, INC.
	 	SCI Funeral Services, LLC
	 	 	100.00	%
	FL

	 	WPALM, INC.
	 	SCI Funeral Services of Florida, Inc.
	 	 	100.00	%
	DE

	 	WILSON FINANCIAL GROUP, INC.
	 	Investment Capital Corporation
	 	 	53.30	%
	TX

	 	WILSON HOLDINGS, INC.
	 	Wilson Financial Group, Inc.
	 	 	100.00	%
	DE

	 	AMISTAD CORPORATION
	 	Wilson Financial Group, Inc.
	 	 	100.00	%
	CA

	 	COOLEY & RIOLO MORTUARY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	CA

	 	THOMPSON FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	CA

	 	WFG-FULLER FUNERALS, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	CA

	 	WILSON-BANNON MORTUARY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	CA

	 	WILSON CAMELLIA MEMORIAL LAWN, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	DE

	 	M.J. EDWARDS HILLSIDE CHAPEL, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	FL

	 	A.B. COLEMAN MORTUARY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	FL

	 	HOLMES FUNERAL DIRECTORS, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	GA

	 	COLLEGE PARK CEMETERY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	GA

	 	CREST LAWN MEMORIAL PARK, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%

 

 

	 	 	 	 	 	 	 	 	 
	Domestic	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership
	GA

	 	FOREST LAWN MEMORIAL GARDENS, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	GA

	 	KENNEDY MEMORIAL GARDENS, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	GA

	 	SHERWOOD MEMORIAL PARK & MAUSOLEUM, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TN

	 	SOUTHERN FUNERAL HOME, INC.
	 	Wilson Financial Group, Inc.
	 	 	100.00	%
	TN

	 	FRANKLIN-STRICKLAND FUNERAL HOME, INC.
	 	Amistad Corporation
	 	 	100.00	%
	TN

	 	M.J. EDWARDS & SONS FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TN

	 	M.J. EDWARDS-WHITEHAVEN FUNERAL CHAPEL, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	CARL BARNES FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	CEDAR CREST FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	FULLER-SHEFFIELD FUNERAL SERVICES, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	LINCOLN FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	MAINLAND FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	MORRIS-BATES FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	PARADISE FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	PARADISE INVESTMENT CORPORATION
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	PARADISE CEMETERY SOUTH, INC.
	 	Paradise Investment Corporation
	 	 	100.00	%
	TX

	 	WARFORD-WALKER MORTUARY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	WFG-CRISTO REY FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	WFG-LOCKWOOD FUNERAL HOME, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	WFG-NAT CLARK, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	WILSON-LINCOLN CEMETERY, INC.
	 	Wilson Holdings, Inc.
	 	 	100.00	%
	TX

	 	CARVER MEMORIAL PARK, INC.
	 	Wilson-Lincoln Cemetery, Inc.
	 	 	100.00	%

	 	 	 	 	 	 	 	 	 
	FOREIGN SUBSIDIARIES	 	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership	 
	 
	 	 	 	 	 	 	 	 
	Puerto Rico
	 	SCI PUERTO RICO FUNERAL AND CEMETERY SERVICES, INC.	 	Alderwoods Group, LLC	 	 	100.00	%
	United Kingdom
	 	ALDERWOODS UK HOLDINGS LTD.	 	Alderwoods Group, LLC	 	 	100.00	%
	Alberta
	 	247663 ALBERTA LTD.	 	Alderwoods Group Canada, Inc.	 	 	90.00	%
	 
	 	247663 ALBERTA LTD.	 	Don Thackeray	 	 	10.00	%
	Alberta
	 	SERVICE CORPORATION INTERNATIONAL CAPITAL FUNDING L.P.	 	3056269 NOVA SCOTIA COMPANY	 	General 

Partner
	 
	 	SERVICE CORPORATION INTERNATIONAL CAPITAL FUNDING L.P.	 	3056271 NOVA SCOTIA COMPANY	 	Limited 

Partner
	Saskatchewan
	 	COMMUNITY CREMATORIUM SERVICES LIMITED	 	Alderwoods Group Canada Inc.	 	 	50.00	%

 

 

	 	 	 	 	 	 	 	 	 
	FOREIGN SUBSIDIARIES	 	 	 	 	 	 	 
	Jurisdiction of	 	 	 	 	 	 	 
	Organization	 	Entity Name	 	Owner(s)	 	% of Ownership	 
	 
	 	 	 	 	 	 	 	 
	 
	 	COMMUNITY CREMATORIUM SERVICES LIMITED	 	Speers Funeral Chapel Inc.	 	 	50.00	%
	Saskatchewan
	 	ADVANCE FUNERAL PLANNING LTD.	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	British Columbia
	 	GREGORY’S WILLIAMS LAKE FUNERAL HOME LTD.	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	Quebec
	 	GUAYCO INVESTMENTS INC./INVESTISSEMENTS GUAYCO	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	Quebec
	 	LES SALONS FUNERAIRES GUAY INC.	 	Guayco Investments Inc.	 	 	100.00	%
	Nova Scotia
	 	JAYNE’S FUNERAL HOME (1984) LIMITED	 	Alderwoods Group Canada Inc.	 	 	90.00	%
	Nova Scotia
	 	NAFCANCO ULC	 	Alderwoods Group, LLC	 	 	100.00	%
	Nova Scotia
	 	3056269 NOVA SCOTIA COMPANY	 	SCI International Limited	 	 	100.00	%
	Nova Scotia
	 	3056271 NOVA SCOTIA COMPANY	 	SCI International Limited	 	 	100.00	%
	Manitoba
	 	P. COUTU FUNERAL CHAPELS LTD.	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	Canadian Federal
	 	ALDERWOODS GROUP CANADA INC.	 	Alderwoods Group, LLC	 	 	100.00	%
	Canadian Federal
	 	SERVICE CORPORATION INTERNATIONAL (CANADA) LIMITED	 	SCI International Limited	 	 	1.00	%
	 
	 	SERVICE CORPORATION INTERNATIONAL (CANADA) LIMITED	 	ECI Capital Corporation	 	 	1.00	%
	 
	 	SERVICE CORPORATION INTERNATIONAL (CANADA) LIMITED	 	SCI Cerberus LLC	 	 	88.00	%
	 
	 	SERVICE CORPORATION INTERNATIONAL (CANADA) LIMITED	 	Service Corporation International Canada Funding L.P.	 	 	10.00	%
	Canadian Federal
	 	SSPI (CANADA) LTD.	 	Service Corporation International (Canada) Limited	 	 	100.00	%
	Cayman Islands
	 	SCI LATIN AMERICA LTD.	 	SCI International Limited	 	 	100.00	%
	Cayman Islands
	 	SCI CAYMAN II LTD.	 	SCI Latin America Ltd.	 	 	100.00	%
	Barbados
	 	LOEWEN FINANCIAL CORPORATION	 	Loewen International Holdings Ltd.	 	 	100.00	%
	Barbados
	 	LOEWEN INSURANCE HOLDINGS INC.	 	Loewen International Holdings Ltd.	 	 	100.00	%
	Barbados
	 	LOEWEN INTERNATIONAL HOLDINGS LTD.	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	Barbados
	 	LOEWEN TRADING CORPORATION	 	Alderwoods Group Canada Inc.	 	 	100.00	%
	Germany
	 	SCI D GmbH	 	SCI International Limited	 	 	100.00	%
	Germany
	 	BESTATTUNGSINSTITUT BARBEL BRAND GmbH	 	SCI D GmbH	 	 	100.00	%
	Germany
	 	NORDDEUTSCHE BESTATTUNGSGESELLSCHAFT mbH	 	SCI D GmbH	 	 	100.00	%
	Germany
	 	BREIDENSTEIN BESTATTUNGEN GMBH	 	SCI D GmbH	 	 	100.00	%
	Germany
	 	THOMAS AMM GMBH	 	SCI D GmbH	 	 	100.00	%
	Luxembourg
	 	SCI LUXEMBOURG SARL	 	SCI International Limited	 	 	100.00	%
	Malaysia
	 	ENLIGHTENED TRANSITION Sdn Bhd	 	SCI International Limited	 	 	100.00	%
	Malaysia
	 	BAHUA FUNERAL SERVICES Sdn Bhd	 	SCI International Limited	 	 	33.33	%
	Switzerland
	 	OSEFI HOLDINGS SA	 	SCI International Limited	 	 	100.00	%
	United Kingdom
	 	SCI UK INVESTMENTS LIMITED	 	SCI Administrative Services, LLC	 	 	100.00	%

 

 

SCHEDULE 6.01(c)

EXISTING INDEBTEDNESS

See attached.

Schedule 6.01(c)-1

 

Schedule 6.01(c)

Existing Indebtedness

Proforma’d for Private Placement Notes Extinguishment,

issuance of 8.000% senior notes (2021) and

draw on the Revolving Credit Facility

October 31, 2009

(USD)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	31-Oct-09	 	SENIOR	 	SENIOR	 	SUBORDINATED	 	 	 	 
	 	 	Maturity	 	Borrower	 	Guarantor	 	Security	 	Issue Date	 	Indenture	 	Total	 	Unsecured	 	Secured	 	Unsecured	 	Parent	 	Subsidiary
	Revolving Credit Lines
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$300M Revolving Credit Facility (2011)
	 	 	11/28/2011	 	 	Service Corp Intl	 	None	 	None	 	 	 	 	 	None	 	 	149,333,333	 	 	 	149,333,333	 	 	 	0	 	 	 	0	 	 	 	149,333,333	 	 	 	0	 
	 	 	 
	Total Revolving Credit Lines
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	149,333,333	 	 	 	149,333,333	 	 	 	0	 	 	 	0	 	 	 	149,333,333	 	 	 	0	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Publicly Traded Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7.375% senior notes (2014)
	 	 	10/3/2014	 	 	Service Corp Intl	 	None	 	None	 	 	2006	 	 	1993 Senior	 	 	245,000,000	 	 	 	245,000,000	 	 	 	0	 	 	 	0	 	 	 	245,000,000	 	 	 	0	 
	6.750% senior notes (2015)
	 	 	4/1/2015	 	 	Service Corp Intl	 	None	 	None	 	 	2007	 	 	1993 Senior	 	 	160,250,000	 	 	 	160,250,000	 	 	 	0	 	 	 	0	 	 	 	160,250,000	 	 	 	0	 
	6.750% senior notes (2016)
	 	 	4/1/2016	 	 	Service Corp Intl	 	None	 	None	 	 	2004	 	 	1993 Senior	 	 	233,143,000	 	 	 	233,143,000	 	 	 	0	 	 	 	0	 	 	 	233,143,000	 	 	 	0	 
	7.000% senior notes (2017)
	 	 	6/15/2017	 	 	Service Corp Intl	 	None	 	None	 	 	2005	 	 	1993 Senior	 	 	295,000,000	 	 	 	295,000,000	 	 	 	0	 	 	 	0	 	 	 	295,000,000	 	 	 	0	 
	7.625% senior notes (2018)
	 	 	10/3/2018	 	 	Service Corp Intl	 	None	 	None	 	 	2006	 	 	1993 Senior	 	 	250,000,000	 	 	 	250,000,000	 	 	 	0	 	 	 	0	 	 	 	250,000,000	 	 	 	0	 
	8.000% senior notes (2021)
	 	 	11/15/2021	 	 	Service Corp Intl	 	None	 	None	 	 	2009	 	 	1993 Senior	 	 	150,000,000	 	 	 	150,000,000	 	 	 	0	 	 	 	0	 	 	 	150,000,000	 	 	 	0	 
	7.500% senior notes (2027)
	 	 	4/1/2027	 	 	Service Corp Intl	 	None	 	None	 	 	2007	 	 	1993 Senior	 	 	200,000,000	 	 	 	200,000,000	 	 	 	0	 	 	 	0	 	 	 	200,000,000	 	 	 	0	 
	 	 	 
	Total Publicly Traded Notes
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,533,393,000	 	 	 	1,533,393,000	 	 	 	0	 	 	 	0	 	 	 	1,533,393,000	 	 	 	0	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debentures
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Acquisition Debentures (USD)
	 	 	6/30/2013	 	 	Service Corp Intl	 	None	 	None	 	 	1993	 	 	1992 Debenture	 	 	1,575,000	 	 	 	1,575,000	 	 	 	0	 	 	 	0	 	 	 	1,575,000	 	 	 	0	 
	7.875% debentures (2013)
	 	 	2/1/2013	 	 	Service Corp Intl	 	None	 	None	 	 	1993	 	 	1993 Senior	 	 	32,127,000	 	 	 	32,127,000	 	 	 	0	 	 	 	0	 	 	 	32,127,000	 	 	 	0	 
	Other Debentures (USD)
	 	Various	 	Various	 	None	 	None	 	Various	 	None	 	 	638,611	 	 	 	638,611	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	638,611	 
	 	 	 
	Total Debentures
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	34,340,611	 	 	 	34,340,611	 	 	 	0	 	 	 	0	 	 	 	33,702,000	 	 	 	638,611	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Debt
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	United States (USD): Unsecured
	 	Various	 	Various Subs	 	None	 	None	 	 	 	 	 	None	 	 	33,944,548	 	 	 	33,944,548	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	33,944,548	 
	United States (USD): Secured
	 	Various	 	Various Subs	 	None	 	Various	 	 	 	 	 	None	 	 	2,009,716	 	 	 	0	 	 	 	2,009,716	 	 	 	0	 	 	 	0	 	 	 	2,009,716	 
	Aircraft Deposit Liability
	 	 	 	 	 	 	 	 	 	None	 	None	 	 	 	 	 	None	 	 	30,500,000	 	 	 	30,500,000	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	30,500,000	 
	US & Canada (USD): Capital Leases
	 	Various	 	Various Subs	 	Service Corp Intl	 	Aircraft & Vehicles	 	 	 	 	 	None	 	 	108,081,039	 	 	 	0	 	 	 	108,081,039	 	 	 	0	 	 	 	0	 	 	 	108,081,039	 
	Wilson Financial Group (USD): Capital Leases
	 	Various	 	Various Subs	 	Service Corp Intl	 	Vehicles	 	 	 	 	 	None	 	 	2,328,233	 	 	 	0	 	 	 	2,328,233	 	 	 	0	 	 	 	0	 	 	 	2,328,233	 
	Wilson Financial Group (USD): Unsecured
	 	Various	 	Various Subs	 	None	 	None	 	 	 	 	 	None	 	 	383,165	 	 	 	383,165	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	383,165	 
	Wilson Financial Group (USD): Secured
	 	Various	 	Various Subs	 	None	 	None	 	 	 	 	 	None	 	 	708,872	 	 	 	0	 	 	 	708,872	 	 	 	0	 	 	 	0	 	 	 	708,872	 
	 	 	 
	Total Other Debt
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	177,955,573	 	 	 	64,827,713	 	 	 	113,127,860	 	 	 	0	 	 	 	0	 	 	 	177,955,573	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Unamortized Discounts & Hedge Costs
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(3,627,477	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Net Debt
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1,891,395,040	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

SCHEDULE 6.03(b)

EXISTING LIENS

Schedule 6.03(b)-1

 

Schedule 6.03(b)

Existing Liens

USD (000 omitted)

	 	 	 	 	 
	Total Purchase Money and Acquisition Debt
	 	$	1,575	 

 

 

SCHEDULE 6.06(b)

EXISTING INVESTMENTS

Schedule 6.06(b)-1

 

Schedule 6.06(b)

Existing Investments

	 	 	 	 	 
	 	 	(000, omitted)	 
	Equity Investments
	 	 	 	 
	Boston Financial Group
	 	$	1,605	 
	Kenyon International Emergency Services Fund
	 	$	264	 
	Wilson Financial Group
	 	$	836	 
	 
	 	 	 
	 
	 	$	2,705	 
	 
	 	 	 
	 
	 	 	 	 
	Notes Receivable
	 	 	 	 
	Other Notes Receivable
	 	$	14,671	 
	 
	 	 	 
	 
	 	$	14,671	 
	 
	 	 	 

 

 

SCHEDULE 6.11

RESTRICTIVE AGREEMENTS

Schedule 6.11-1

 

Schedule 6.11

Restrictive Agreements

Senior Indenture, dated as of February 1, 1993, between Service Corporation International and The
Bank of New York Mellon Trust Company, N.A., as successor to The Bank of New York, as trustee, as
amended and supplemented.

Documents and agreements pertaining to Wilson Financial Group, Inc. and its subsidiaries.

‘09 Misc. Schedule 6.11 Restrictive Agreements

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]