Document:

exv10w1

 

Exhibit 10.1

 

 

CREDIT AGREEMENT

dated as of

November 7, 2007

among

BRUSH ENGINEERED MATERIALS INC.

WILLIAMS ADVANCED MATERIALS (NETHERLANDS) B.V.

The Other Foreign Subsidiary Borrowers Party Hereto

The Lenders Party Hereto

RBS CITIZENS, NATIONAL ASSOCIATION and KEYBANK NATIONAL ASSOCIATION

as Co-Documentation Agents

FIFTH THIRD BANK and LASALLE BANK NATIONAL ASSOCIATION

as Co-Syndication Agents

and

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION

as Administrative Agent

 

J.P. MORGAN SECURITIES INC.

as Sole Bookrunner and Sole Lead Arranger

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Defined Terms	 	 	1	 
	SECTION 1.01.
	 	Classification of Loans and Borrowings	 	 	20	 
	SECTION 1.02.
	 	Terms Generally	 	 	20	 
	SECTION 1.03.
	 	Accounting Terms; GAAP	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE II The Credits	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 2.01.
	 	Commitments	 	 	21	 
	SECTION 2.02.
	 	Loans and Borrowings	 	 	21	 
	SECTION 2.03.
	 	Requests for Revolving Borrowings	 	 	22	 
	SECTION 2.04.
	 	Determination of Dollar Amounts	 	 	23	 
	SECTION 2.05.
	 	Swingline Loans	 	 	23	 
	SECTION 2.06.
	 	Letters of Credit	 	 	24	 
	SECTION 2.07.
	 	Funding of Borrowings	 	 	28	 
	SECTION 2.08.
	 	Interest Elections	 	 	29	 
	SECTION 2.09.
	 	Termination and Reduction of Commitments	 	 	30	 
	SECTION 2.10.
	 	Repayment of Loans; Evidence of Debt	 	 	31	 
	SECTION 2.11.
	 	Prepayment of Loans	 	 	31	 
	SECTION 2.12.
	 	Fees	 	 	32	 
	SECTION 2.13.
	 	Interest	 	 	33	 
	SECTION 2.14.
	 	Alternate Rate of Interest	 	 	34	 
	SECTION 2.15.
	 	Increased Costs	 	 	34	 
	SECTION 2.16.
	 	Break Funding Payments	 	 	35	 
	SECTION 2.17.
	 	Taxes	 	 	36	 
	SECTION 2.18.
	 	Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of Set-offs	 	 	37	 
	SECTION 2.19.
	 	Mitigation Obligations; Replacement of Lenders	 	 	39	 
	SECTION 2.20.
	 	Expansion Option	 	 	39	 
	SECTION 2.21.
	 	Market Disruption	 	 	40	 
	SECTION 2.22.
	 	Judgment Currency	 	 	41	 
	SECTION 2.23.
	 	Designation of Foreign Subsidiary Borrowers	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE III Representations and Warranties	 	 	42	 
	 
	 	 	 	 	 	 
	SECTION 3.01.
	 	Organization; Powers; Subsidiaries	 	 	42	 
	SECTION 3.02.
	 	Authorization; Enforceability	 	 	42	 
	SECTION 3.03.
	 	Governmental Approvals; No Conflicts	 	 	42	 
	SECTION 3.04.
	 	Financial Condition; No Material Adverse Change	 	 	43	 
	SECTION 3.05.
	 	Properties	 	 	43	 
	SECTION 3.06.
	 	Litigation and Environmental Matters	 	 	43	 
	SECTION 3.07.
	 	Compliance with Laws	 	 	44	 

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	SECTION 3.08.
	 	Investment Company Status	 	 	44	 
	SECTION 3.09.
	 	Taxes	 	 	44	 
	SECTION 3.10.
	 	ERISA	 	 	44	 
	SECTION 3.11.
	 	Disclosure	 	 	44	 
	SECTION 3.12.
	 	Federal Reserve Regulations	 	 	44	 
	SECTION 3.13.
	 	Liens	 	 	44	 
	SECTION 3.14.
	 	No Default	 	 	44	 
	SECTION 3.15.
	 	No Burdensome Restrictions	 	 	44	 
	SECTION 3.16.
	 	Solvency	 	 	44	 
	SECTION 3.17.
	 	Insurance	 	 	45	 
	SECTION 3.18.
	 	Security Interest in Collateral	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE IV Conditions	 	 	45	 
	 
	 	 	 	 	 	 
	SECTION 4.01.
	 	Effective Date	 	 	45	 
	SECTION 4.02.
	 	Each Credit Event	 	 	47	 
	SECTION 4.03.
	 	Designation of a Foreign Subsidiary Borrower	 	 	47	 
	 
	 	 	 	 	 	 
	ARTICLE V Affirmative Covenants	 	 	48	 
	 
	 	 	 	 	 	 
	SECTION 5.01.
	 	Financial Statements and Other Information	 	 	48	 
	SECTION 5.02.
	 	Notices of Material Events	 	 	49	 
	SECTION 5.03.
	 	Existence; Conduct of Business	 	 	49	 
	SECTION 5.04.
	 	Payment of Obligations	 	 	50	 
	SECTION 5.05.
	 	Maintenance of Properties; Insurance	 	 	50	 
	SECTION 5.06.
	 	Books and Records; Inspection Rights	 	 	50	 
	SECTION 5.07.
	 	Compliance with Laws and Material Contractual Obligations	 	 	51	 
	SECTION 5.08.
	 	Use of Proceeds	 	 	51	 
	SECTION 5.09.
	 	Subsidiary Guarantors; Pledges; Additional Collateral; Further Assurances	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE VI Negative Covenants	 	 	52	 
	 
	 	 	 	 	 	 
	SECTION 6.01.
	 	Indebtedness	 	 	52	 
	SECTION 6.02.
	 	Liens	 	 	53	 
	SECTION 6.03.
	 	Fundamental Changes and Asset Sales	 	 	54	 
	SECTION 6.04.
	 	Investments, Loans, Advances, Guarantees and Acquisitions	 	 	55	 
	SECTION 6.05.
	 	Swap Agreements	 	 	57	 
	SECTION 6.06.
	 	Transactions with Affiliates	 	 	57	 
	SECTION 6.07.
	 	Restricted Payments	 	 	57	 
	SECTION 6.08.
	 	Restrictive Agreements	 	 	57	 
	SECTION 6.09.
	 	Subordinated Indebtedness and Amendments to Subordinated Indebtedness Documents	 	 	57	 
	SECTION 6.10.
	 	Sale and Leaseback Transactions	 	 	58	 
	SECTION 6.11.
	 	Financial Covenants	 	 	58	 

ii

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE VII Events of Default	 	 	59
	 
	 	 	 	 	 	 
	ARTICLE VIII The Administrative Agent	 	 	61
	 
	 	 	 	 	 	 
	ARTICLE IX Miscellaneous	 	 	64
	 
	 	 	 	 	 	 
	SECTION 9.01.
	 	Notices	 	 	64
	SECTION 9.02.
	 	Waivers; Amendments	 	 	65
	SECTION 9.03.
	 	Expenses; Indemnity; Damage Waiver	 	 	67
	SECTION 9.04.
	 	Successors and Assigns	 	 	68
	SECTION 9.05.
	 	Survival	 	 	71
	SECTION 9.06.
	 	Counterparts; Integration; Effectiveness	 	 	71
	SECTION 9.07.
	 	Severability	 	 	71
	SECTION 9.08.
	 	Right of Setoff	 	 	71
	SECTION 9.09.
	 	Governing Law; Jurisdiction; Consent to Service of Process	 	 	72
	SECTION 9.10.
	 	WAIVER OF JURY TRIAL	 	 	73
	SECTION 9.11.
	 	Headings	 	 	73
	SECTION 9.12.
	 	Confidentiality	 	 	73
	SECTION 9.13.
	 	USA PATRIOT Act	 	 	73
	SECTION 9.14.
	 	Appointment for Perfection	 	 	74
	 
	 	 	 	 	 	 
	ARTICLE X Cross-Guarantee	 	 	74

iii

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	SCHEDULES:
	 
	Schedule 2.01

	 	—
	 	Commitments	 	 
	Schedule 2.02

	 	—
	 	Mandatory Cost	 	 
	Schedule 2.06

	 	—
	 	Existing Letters of Credit	 	 
	Schedule 3.01

	 	—
	 	Subsidiaries	 	 
	Schedule 6.01

	 	—
	 	Existing Indebtedness	 	 
	Schedule 6.02

	 	—
	 	Existing Liens	 	 
	Schedule 6.04

	 	—
	 	Existing Investments	 	 

EXHIBITS:

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Assumption
	Exhibit B-1

	 	—
	 	Form of Opinion of U.S. Loan Parties’ Counsel
	Exhibit B-2

	 	—
	 	Form of Opinion of Dutch Borrower’s Counsel
	Exhibit C

	 	—
	 	Form of Increasing Lender Supplement
	Exhibit D

	 	—
	 	Form of Augmenting Lender Supplement
	Exhibit E

	 	—
	 	List of Closing Documents
	Exhibit F-1

	 	—
	 	Form of Borrowing Subsidiary Agreement
	Exhibit F-2

	 	—
	 	Form of Borrowing Subsidiary Termination
	Exhibit G

	 	—
	 	Form of Written Money Transfer Instruction

iv

 

          CREDIT AGREEMENT (this “Agreement”) dated as of November 7, 2007 among BRUSH
ENGINEERED MATERIALS INC., WILLIAMS ADVANCED MATERIALS (NETHERLANDS) B.V., the other FOREIGN
SUBSIDIARY BORROWERS from time to time party hereto, the LENDERS from time to time party hereto,
FIFTH THIRD BANK and LASALLE BANK NATIONAL ASSOCIATION, as Co-Syndication Agents and RBS CITIZENS,
NATIONAL ASSOCIATION and KEYBANK NATIONAL ASSOCIATION, as Co-Documentation Agents and JPMORGAN
CHASE BANK, NATIONAL ASSOCIATION, as Administrative Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

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

          “ABR”, when used in reference to any Loan or Borrowing, refers to a Loan, or the Loans
comprising such Borrowing, bearing interest at a rate determined by reference to the Alternate Base
Rate.

          “Acquisition” means any transaction, or any series of related transactions,
consummated on or after the Effective Date, by which the Company or any Subsidiary (a) acquires any
going business or all or substantially all of the assets of any Person, whether through purchase of
assets, merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the
most recent transaction in a series of transactions) at least a majority (in number of votes) of
the Equity Interests of a Person which has ordinary voting power for the election of directors or
other similar management personnel of a Person (other than Equity Interests having such power only
by reason of the happening of a contingency) or a majority of the outstanding Equity Interests of a
Person.

          “Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of
1%) equal to the sum of (i) (a) the LIBO Rate for such Interest Period multiplied by (b) the
Statutory Reserve Rate plus, without duplication, (ii) in the case of Loans by a Lender
from its office or branch in the United Kingdom, the Mandatory Cost.

          “Administrative Agent” means JPMorgan Chase Bank, National Association (including its
branches and affiliates), in its capacity as administrative agent for the Lenders hereunder.

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

          “Affected Foreign Subsidiary” means any Foreign Subsidiary to the extent such Foreign
Subsidiary acting as a Subsidiary Guarantor would cause a Deemed Dividend Problem or a Financial
Assistance Problem.

          “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.

 

 

          “Aggregate Commitment” means the aggregate of the Commitments of all of the Lenders,
as reduced or increased from time to time pursuant to the terms and conditions hereof. As of the
Effective Date, the Aggregate Commitment is $240,000,000.

          “Agreed Currencies” means (i) Dollars, (ii) euro, (iii) Pounds Sterling, (iv) Japanese
Yen and (v) any other Foreign Currency agreed to by the Administrative Agent and each of the
Lenders.

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

          “Applicable Percentage” means, with respect to any Lender, the percentage of the
Aggregate 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.

          “Applicable Pledge Percentage” means 100%, but 65% in the case of a pledge of Equity
Interests of a Foreign Subsidiary to the extent a 100% pledge would cause a Deemed Dividend
Problem.

          “Applicable Rate” means, for any day, with respect to commitment fees payable
hereunder, Eurocurrency Revolving Loans, ABR Revolving Loans or with respect to commissions on
outstanding commercial Letters of Credit payable hereunder, as the case may be, the applicable rate
per annum set forth below under the caption “Commitment Fee Rate”, “Eurocurrency Spread”, “ABR
Spread” or “Commercial L/C Rate”, as the case may be, based upon the Leverage Ratio applicable on
such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Commitment	 	Eurocurrency	 	 	 	 	 	Commercial
	 	 	Leverage Ratio:	 	Fee Rate	 	Spread	 	ABR Spread	 	L/C Rate
	Category 1:
	 	< 1.00 to 1.00	 	 	0.125	%	 	 	0.625	%	 	 	0	%	 	 	0.3125	%
	Category 2:
	 	≥ 1.00 to 1.00	 	 	0.15	%	 	 	0.75	%	 	 	0	%	 	 	0.375	%
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	< 1.50 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 3:
	 	≥ 1.50 to 1.00 but	 	 	0.175	%	 	 	0.875	%	 	 	0	%	 	 	0.4375	%
	 
	 	< 2.00 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 4:
	 	≥ 2.00 to 1.00	 	 	0.20	%	 	 	1.00	%	 	 	0	%	 	 	0.50	%
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	< 2.50 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 5:
	 	≥ 2.50 to 1.00	 	 	0.25	%	 	 	1.25	%	 	 	0.25	%	 	 	0.625	%

     For purposes of the foregoing,

     (i) if at any time the Company fails to deliver the Financials on or before the date
the Financials are due pursuant to Section 5.01, Category 5 shall be deemed applicable for
the period commencing three (3) Business Days after the required date of delivery and ending
on the date which is three (3) Business Days after the Financials are actually delivered,
after which the Category shall be determined in accordance with the table above as
applicable;

2

 

     (ii) adjustments, if any, to the Category then in effect shall be effective three (3)
Business Days after the Administrative Agent has received the applicable Financials (it
being understood and agreed that each change in Category shall apply during the period
commencing on the
effective date of such change and ending on the date immediately preceding the
effective date of the next such change); and

     (iii) notwithstanding the foregoing, Category 2 shall be deemed to be applicable until
the Administrative Agent’s receipt of the applicable Financials for the Company’s first full
or partial Fiscal Quarter ending after the Effective Date (unless such Financials
demonstrate that Category 3, 4 or 5 should have been applicable during such period, in which
case such other Category shall be deemed to be applicable during such period) and
adjustments to the Category then in effect shall thereafter be effected in accordance with
the preceding paragraphs.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

          “Assignment and Assumption” means an assignment and assumption agreement 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 A or any other form
approved by the Administrative Agent.

          “Augmenting Lender” has the meaning assigned to such term in Section 2.20.

          “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.

          “Banking Services” means each and any of the following bank services provided to the
Company or any Subsidiary by any Lender or any of its Affiliates: (a) commercial credit cards, (b)
stored value cards and (c) treasury management services (including, without limitation, controlled
disbursement, automated clearinghouse transactions, return items, overdrafts and interstate
depository network services).

          “Banking Services Agreement” means any agreement entered into by the Company or any
Subsidiary in connection with Banking Services.

          “Banking Services Obligations” means any and all obligations of the Company or any
Subsidiary, whether absolute or contingent and howsoever and whensoever created, arising, evidenced
or acquired (including all renewals, extensions and modifications thereof and substitutions
therefor) in connection with Banking Services.

          “Beryllium Contracts” means any and all agreements or other arrangements (however
styled) for the purchase, procurement or other acquisition of Beryllium, in whatever form
(including, without limitation, Beryl ore, Copper Beryllium Master Alloy, Vacuum Cast Beryllium
Ingot, and Vacuum Hot Pressed Beryllium Billet), entered into from time to time by the Company or
any Subsidiary, but only to the extent that the Dollar Amount of any Indebtedness related thereto
does not exceed $20,000,000 during any consecutive 12-month period.

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

          “Borrower” means the Company or any Foreign Subsidiary Borrower.

3

 

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

          “Borrowing Request” means a request by any Borrower for a Revolving Borrowing in
accordance with Section 2.03.

          “Borrowing Subsidiary Agreement” means a Borrowing Subsidiary Agreement substantially
in the form of Exhibit F-1.

          “Borrowing Subsidiary Termination” means a Borrowing Subsidiary Termination
substantially in the form of Exhibit F-2.

          “Burdensome Restrictions” means any consensual encumbrance or restriction of the type
described in clause (a) or (b) of Section 6.08 (without giving effect to any exceptions described
in clauses (i) through (iv) of such Section 6.08).

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurocurrency Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in Agreed Currencies
in the London interbank market or the principal financial center of the country in which payment or
purchase of such Agreed Currency can be made (and, if the Borrowings or LC Disbursements which are
the subject of a borrowing, drawing, payment, reimbursement or rate selection are denominated in
euro, the term “Business Day” shall also exclude any day on which the TARGET payment system is not
open for the settlement of payments in euro).

          “Capital Expenditures” means, without duplication, any expenditure of money for any
purchase or other acquisition or development of any asset which would be classified as a fixed or
capital asset on a consolidated balance sheet of the Company and its Subsidiaries prepared in
accordance with GAAP.

          “Capitalized Lease” of a Person means any lease of Property by such Person as lessee
which would be capitalized on a balance sheet of such Person prepared in accordance with GAAP.

          “Capitalized Lease Obligations” of a Person means the aggregate amount of the
obligations of such Person under Capitalized Leases which would be shown as a liability on a
balance sheet of such Person prepared in accordance with GAAP.

          “Cash Equivalent Investments” means (a) direct obligations of, or fully guaranteed by,
the U.S. maturing within one year from the date of acquisition thereof, (b) commercial paper rated
A-1 or better by S&P or P-1 or better by Moody’s, (c) demand deposit accounts maintained in the
ordinary course of business, and (d) certificates of deposit issued by and time deposits with any
Lender or any commercial bank (whether domestic or foreign) having capital and surplus in excess of
$100,000,000; provided that, in each case, the same provides for payment of both principal and
interest (and not principal alone or interest alone) and is not subject to any contingency
regarding the payment of principal or interest.

          “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),

4

 

of Equity Interests representing more than 20% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Company; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Company by Persons
who were neither (i) nominated by the board of directors of the Company nor (ii) appointed by
directors so nominated; or (c) the
occurrence of a change in control, or other similar provision, as defined in any agreement or
instrument evidencing any Material Indebtedness (triggering a default or mandatory prepayment,
which default or mandatory prepayment has not been waived in writing).

          “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 (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.

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.

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

          “Co-Documentation Agent” means each of RBS Citizens, National Association and KeyBank
National Association in its capacity as co-documentation agent for the credit facility evidenced by
this Agreement.

          “Collateral” means any and all property owned, leased or operated by a Person covered
by the Collateral Documents and any and all other property of any Loan Party, now existing or
hereafter acquired, that may at any time be or become subject to a security interest or Lien in
favor of Administrative Agent, on behalf of itself and the Holders of Secured Obligations, to
secure the Secured Obligations.

          “Collateral Documents” means, collectively, the Security Agreement, the Mortgages and
all other agreements, instruments and documents executed in connection with this Agreement that are
intended to create or evidence Liens to secure the Secured Obligations, including, without
limitation, all other security agreements, pledge agreements, mortgages, deeds of trust, loan
agreements, notes, guarantees, subordination agreements, pledges, powers of attorney, consents,
assignments, contracts, fee letters, notices, leases, financing statements and all other written
matter whether heretofore, now, or hereafter executed by the Company or any of its Subsidiaries and
delivered to the Administrative Agent.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time pursuant
to Section 2.09, (b) increased from time to time 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.

          “Company” means Brush Engineered Materials Inc., an Ohio corporation.

          “Computation Date” is defined in Section 2.04.

5

 

          “Consolidated EBITDA” means Consolidated Net Income plus, to the extent
deducted from revenues in determining Consolidated Net Income, (a) Consolidated Interest Expense,
(b) Consolidated Tax Expense, (c) depreciation, (d) amortization, (e) depletion expense and (f)
nonrecurring
losses incurred other than in the ordinary course of business, minus, to the extent
included in Consolidated Net Income, nonrecurring gains realized other than in the ordinary course
of business, all calculated for the Company and its Subsidiaries on a consolidated basis.

          “Consolidated Fixed Charges” means, with reference to any period, without duplication,
Consolidated Interest Expense to the extent paid in cash during such period, plus scheduled
principal payments on Indebtedness made during such period, plus Capitalized Lease payments
made during such period, all calculated for the Company and its Subsidiaries on a consolidated
basis.

          “Consolidated Funded Debt” means all Indebtedness for borrowed money and Capitalized
Leases, including, without limitation, current, long-term and Subordinated Indebtedness, for the
Company and its Subsidiaries on a consolidated basis; provided that, for purposes of this
definition, obligations under the following will not be considered in calculating Consolidated
Funded Debt: (a) obligations under Swap Agreements, (b) Permitted Precious Metals Agreements (up to
a maximum outstanding amount of $180,000,000), (c) the Beryllium Contracts, and (d) Indebtedness
under any Sale and Leaseback Transaction.

          “Consolidated Interest Expense” means, with reference to any period, the interest
expense of the Company and its Subsidiaries calculated on a consolidated basis for such period (but
not including any up-front fees paid in connection with this Agreement).

          “Consolidated Net Income” means, with reference to any period, the net income (or
loss) of the Company and its Subsidiaries calculated on a consolidated basis for such period.

          “Consolidated Net Worth” means, on any date, all amounts that would be included under
stockholders’ equity on a consolidated balance sheet of the Company and its consolidated
Subsidiaries, as determined on a consolidated basis in accordance with GAAP.

          “Consolidated Tax Expense” means, with reference to any period, the tax expense of the
Company and its Subsidiaries calculated on a consolidated basis for such period.

          “Consolidated Total Assets” means, as of the date of any determination thereof, total
assets of the Company and its Subsidiaries calculated in accordance with GAAP on a consolidated
basis as of such date.

          “Contingent Obligation” of a Person means any agreement, undertaking or arrangement by
which such Person assumes, guarantees, endorses, contingently agrees to purchase or provide funds
for the payment of, or otherwise becomes or is contingently liable upon, the obligation or
liability of any other Person, or agrees to maintain the net worth or working capital or other
financial condition of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating agreement, take-or-pay
contract or the obligations of any such Person as general partner of a partnership with respect to
the liabilities of the partnership.

          “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.

6

 

          “Co-Syndication Agent” means each of Fifth Third Bank and LaSalle Bank National
Association in its capacity as co-syndication agent for the credit facility evidenced by this
Agreement.

          “Country Risk Event” means:

          (i) any law or action by any Governmental Authority in any Borrower’s or Letter of Credit
beneficiary’s country which has the effect of:

     (a) changing the obligations under the relevant Letter of Credit, the Credit
Agreement or any of the other Loan Documents as originally agreed or otherwise
creating any additional liability, cost or expense to the Issuing Bank, the Lenders
or the Administrative Agent,

     (b) changing the ownership or control by such Borrower or Letter of Credit
beneficiary of its business, or

     (c) preventing or restricting the conversion into or transfer of the applicable
Agreed Currency;

          (ii) force majeure; or

          (iii) any similar event

which, in relation to (i), (ii) and (iii), directly or indirectly, prevents or restricts the
payment or transfer of any amounts owing under the relevant Letter of Credit in the applicable
Agreed Currency to the Administrative Agent or the Issuing Bank and freely available to the
Administrative Agent or the Issuing Bank.

          “Credit Event” means a Borrowing, the issuance of a Letter of Credit, an LC
Disbursement or any of the foregoing.

          “Deemed Dividend Problem” means, with respect to any Foreign Subsidiary, such Foreign
Subsidiary’s accumulated and undistributed earnings and profits being deemed to be repatriated to
the Company or the applicable parent Domestic Subsidiary for U.S. federal income tax purposes and
the effect of such repatriation causing materially adverse tax consequences to the Company or such
parent Domestic Subsidiary, in each case as determined by the Company in its commercially
reasonable judgment acting in good faith and in consultation with its legal and tax advisors.

          “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.

          “Dollar Amount” of any currency at any date shall mean (i) the amount of such currency
if such currency is Dollars or (ii) the equivalent in such currency of Dollars if such currency is
a Foreign Currency, calculated on the basis of the Exchange Rate for such currency, on or as of the
most recent Computation Date provided for in Section 2.04.

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

          “Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction
located in the United States of America.

7

 

          “Dutch Borrower” means Williams Advanced Materials (Netherlands) B. V., a besloten
vennootschap met beperkte aansprakelijkheid incorporated under the laws of the Netherlands having
its corporate seat (statutaire zetel) in Amsterdam, the Netherlands.

          “Dutch Financial Supervision Act” means the Dutch Financial Supervision Act 2007 (Wet
op het Financieel Toezicht 2007), as amended from time to time.

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

          “Eligible Foreign Subsidiary” means any Foreign Subsidiary that is approved from time
to time by the Administrative Agent, which approval shall not be unreasonably withheld.

          “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions 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 or the management, release or threatened release of any Hazardous Material.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the
Company 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.

          “Equivalent Amount” of any currency with respect to any amount of Dollars at any date
shall mean the equivalent in such currency of such amount of Dollars, calculated on the basis of
the arithmetical mean of the buy and sell spot rates of exchange of the Administrative Agent for
such other currency at 11:00 a.m., London time, on the date on or as of which such amount is to be
determined.

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

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with the Company, 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); (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
Company 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 Company or any ERISA Affiliate from the PBGC or a
plan administrator of

8

 

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 Company or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal of the Company or
any of its ERISA Affiliates from any Plan or Multiemployer Plan; or (g) the receipt by the Company
or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from the Company or any ERISA Affiliate of any notice,
concerning the imposition upon the Company or any of its ERISA Affiliates 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.

          “EU” means the European Union.

          “euro” and/or “EUR” means the single currency of the participating member
states of the EU.

          “Eurocurrency”, when used in reference to a currency means an Agreed Currency and,
when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such
Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.

          “Eurocurrency Payment Office” of the Administrative Agent shall mean, for each Foreign
Currency, the office, branch, affiliate or correspondent bank of the Administrative Agent for such
currency as specified from time to time by the Administrative Agent to the Company and each Lender.

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

          “Exchange Rate” means, on any day, with respect to any Foreign Currency, the rate at
which such Foreign Currency may be exchanged into Dollars, as set forth at approximately 11:00
a.m., Local Time, on such date on the Reuters World Currency Page for such Foreign Currency. In
the event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate with
respect to such Foreign Currency shall be determined by reference to such other publicly available
service for displaying exchange rates as may be reasonably selected by the Administrative Agent or,
in the event no such service is selected, such Exchange Rate shall instead be calculated on the
basis of the arithmetical mean of the buy and sell spot rates of exchange of the Administrative
Agent for such Foreign Currency on the London market at 11:00 a.m., Local Time, on such date for
the purchase of Dollars with such Foreign Currency, for delivery two Business Days later;
provided, that if at the time of any such determination, for any reason, no such spot rate
is being quoted, the Administrative Agent, after consultation with the Company, may use any
reasonable method it deems appropriate to determine such rate, and such determination shall be
conclusive absent manifest error.

          “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 Company hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America or any other Governmental Authority, including 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 other Governmental Authority, including any
similar tax imposed by any other jurisdiction in which the Company or any Subsidiary is located
and (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the
Company 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

9

 

receive additional amounts from
the Company with respect to such withholding tax pursuant to Section 2.17(a).

          “Existing Letters of Credit” is defined in Section 2.06(a).

          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 Assistance Problem” means, with respect to any Foreign Subsidiary, the
inability of such Foreign Subsidiary to become a Subsidiary Guarantor or to permit its Equity
Interests from being pledged pursuant to a pledge agreement on account of legal or financial
limitations imposed by the jurisdiction of organization of such Foreign Subsidiary or other
relevant jurisdictions having authority over such Foreign Subsidiary, in each case as determined by
the Company in its commercially reasonable judgment acting in good faith and in consultation with
its legal and tax advisors.

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

          “Financials” means the annual or quarterly financial statements, and accompanying
certificates and other documents, of the Company and its Subsidiaries required to be delivered
pursuant to Section 5.01(a) or 5.01(b).

          “First Tier Foreign Subsidiary” means each Foreign Subsidiary with respect to which
any one or more of the Company and its Domestic Subsidiaries directly owns or controls more than
50% of such Foreign Subsidiary’s issued and outstanding Equity Interests.

          “Fiscal Quarter” means any of the quarterly accounting periods of the Company.

          “Fiscal Year” means any of the annual accounting periods of the Company ending on
December 31st of each year.

          “Fixed Charge Coverage Ratio” means, the ratio, determined as of the end of each
Fiscal Quarter of the Company for the then most-recently ended four Fiscal Quarters of (a)
Consolidated EBITDA, minus cash taxes paid, minus the unfinanced portion of Capital
Expenditures, minus cash dividends, plus cash tax refunds to (b) Consolidated Fixed
Charges, all calculated for the Company and its Subsidiaries on a consolidated basis.

          “Foreign Currencies” means currencies other than Dollars.

          “Foreign Currency LC Exposure” means, at any time, the sum of (a) the Dollar Amount of
the aggregate undrawn and unexpired amount of all outstanding Foreign Currency Letters of Credit at
such time plus (b) the aggregate principal Dollar Amount of all LC Disbursements in respect
of Foreign Currency Letters of Credit that have not yet been reimbursed at such time.

          “Foreign Currency Letter of Credit” means a Letter of Credit denominated in a Foreign
Currency.

10

 

          “Foreign Currency Sublimit” means $20,000,000.

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Company 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 which is not a Domestic Subsidiary.

          “Foreign Subsidiary Borrower” means (i) the Dutch Borrower and (ii) any other Eligible
Foreign Subsidiary that has been designated as a Foreign Subsidiary Borrower pursuant to Section
2.23 and that has not ceased to be a Foreign Subsidiary Borrower pursuant to such Section.

          “Foreign Subsidiary Borrower Sublimit” means $20,000,000.

          “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.

          “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.

          “Holders of Secured Obligations” means the holders of the Secured Obligations from
time to time and shall include (i) each Lender and the Issuing Bank in respect of its Loans and LC
Exposure respectively, (ii) the Administrative Agent, the Issuing Bank and the Lenders in respect
of all other present and future obligations and liabilities of the Company and each Subsidiary of
every type and description arising under or in connection with this Agreement or any other Loan
Document, (iii) each Lender and affiliate of such Lender in respect of Swap Agreements and Banking
Services Agreements entered into with such Person by the Company or any Subsidiary, (iv) each
indemnified party under Section 9.03 in respect of the obligations and liabilities of the Borrowers
to such Person hereunder and under the other Loan Documents, and (v) their respective successors
and (in the case of a Lender, permitted) transferees and assigns.

11

 

          “Hostile Acquisition” means (a) the Acquisition of the Equity Interests of a Person
through a tender offer or similar solicitation of the owners of such Equity Interests which has not
been approved (prior to such Acquisition) by the board of directors (or any other applicable
governing body) of
such Person or by similar action if such Person is not a corporation and (b) any such
Acquisition as to which such approval has been withdrawn.

          “Increasing Lender” has the meaning assigned to such term in Section 2.20.

          “Incremental Term Loan” has the meaning assigned to such term in Section 2.20.

          “Incremental Term Loan Amendment” has the meaning assigned to such term in Section
2.20.

          “Indebtedness” of a Person means, without duplication, such Person’s (a) obligations
for borrowed money, (b) obligations representing the deferred purchase price of Property or
services (other than accounts payable arising in the ordinary course of such Person’s business
payable on terms customary in the trade), (c) obligations, whether or not assumed, secured by Liens
or payable out of the proceeds or production from Property now or hereafter owned or acquired by
such Person, (d) obligations which are evidenced by notes, acceptances, or other similar
instruments, (e) obligations of such Person to purchase securities or other Property arising out of
or in connection with the sale of the same or substantially similar securities or Property or any
other Off-Balance Sheet Liabilities, (f) Capitalized Lease Obligations, (g) Contingent Obligations
for which the underlying transaction constitutes Indebtedness under this definition, (h) the stated
face amount of all letters of credit or bankers’ acceptances issued for the account of such Person
and, without duplication, all reimbursement obligations with respect to such issued letters of
credit, (i) any and all obligations, contingent or otherwise, whether now existing or hereafter
arising, under or in connection with Swap Agreements, including, without limitation, Net
Mark-to-Market Exposure, and (j) obligations of such Person under any Sale and Leaseback
Transaction.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information Memorandum” means the Confidential Information Memorandum dated September
2007 relating to the Company and the Transactions.

          “Intercreditor Agreements” means (a) that certain Intercreditor Agreement dated as of
the date hereof by and among the Administrative Agent, on behalf of itself and the Lenders, and The
Bank of Nova Scotia, on behalf of itself and as collateral agent on behalf of other consignors of
Precious Metal and (b) every other intercreditor agreement related to the Loans entered into by the
Administrative Agent, on behalf of itself and the other Lenders, on or after the Effective Date.

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

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the last day of each March, June, September and December and the Maturity Date, (b) with
respect to any Eurocurrency 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 Eurocurrency 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 the
Maturity Date and (c) with respect to any Swingline Loan, the day that such Loan is required to be
repaid and the Maturity Date.

12

 

          “Interest Period” means with respect to any Eurocurrency 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 applicable 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 Eurocurrency 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 pertaining to a Eurocurrency Borrowing 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, in the case of a Revolving Borrowing, thereafter shall be
the effective date of the most recent conversion or continuation of such Borrowing.

          “Investment” of a Person means any (a) loan or advance, (b) extension of credit (other
than accounts receivable arising in the ordinary course of business on terms customary in the
trade), (c) contribution of capital by such Person, (d) stocks, bonds, mutual funds, partnership
interests, notes, debentures, securities or other Equity Interest owned by such Person, (e) any
deposit accounts and certificate of deposit owned by such Person, and (f) structured notes,
derivative financial instruments and other similar instruments or contracts owned by such Person.

          “Issuing Bank” means JPMorgan Chase Bank, National Association, in its capacity as the
issuer of Letters of Credit hereunder, and its 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.

          “Japanese Yen” means the lawful currency of Japan.

          “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

          “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 Dollar Amount
of all outstanding Letters of Credit at such time plus (b) the aggregate Dollar Amount of
all LC Disbursements that have not yet been reimbursed by or on behalf of the Company 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 Lender hereunder pursuant to Section 2.20 or 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.

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

          “Leverage Ratio” means, the ratio, determined as of the end of each Fiscal Quarter of
the Company for the then most-recently ended four Fiscal Quarters of (a) Consolidated Funded Debt
to (b) Consolidated EBITDA.

13

 

          “LIBO Rate” means, with respect to any Eurocurrency Borrowing for any Interest Period,
the rate appearing on, in the case of Dollars, Reuters BBA Libor Rates Page 3750 and, in the case
of any Foreign Currency, the appropriate page of such service which displays British Bankers
Association
Interest Settlement Rates for deposits in such Foreign Currency (or, in each case, 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 deposits in the relevant Agreed Currency in the London interbank
market) at approximately 11:00 a.m., London time, two (2) Business Days prior to (or, in the case
of Loans denominated in Pounds Sterling, on the day of) the commencement of such Interest Period,
as the rate for deposits in the relevant Agreed Currency 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 Eurocurrency Borrowing for such Interest Period shall
be the rate at which deposits in the relevant Agreed Currency in an Equivalent Amount 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 (2) 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, each Borrowing Subsidiary Agreement, each
Borrowing Subsidiary Termination, any promissory notes issued pursuant to Section 2.10(e) of this
Agreement, any Letter of Credit applications, the Collateral Documents, the Subsidiary Guaranty,
and all other agreements, instruments, documents and certificates identified in Section 4.01
executed and delivered to, or in favor of, the Administrative Agent or any Lenders and including
all other pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit
agreements and all other written matter whether heretofore, now or hereafter executed by or on
behalf of any Loan Party, and delivered to the Administrative Agent or any Lender in connection
with the Agreement or the transactions contemplated thereby. Any reference in the Agreement or any
other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto,
and all amendments, restatements, supplements or other modifications thereto, and shall refer to
the Agreement or such Loan Document as the same may be in effect at any and all times such
reference becomes operative.

          “Loan Parties” means, collectively, the Borrowers and the Subsidiary Guarantors.

          “Loans” means the loans made by the Lenders to the Borrowers pursuant to this
Agreement.

          “Local Time” means (i) Chicago time in the case of a Loan, Borrowing or LC
Disbursement denominated in Dollars to, or for the account of, the Company and (ii) local time at
the place of the relevant Loan, Borrowing or LC Disbursement (or such earlier local time as is
necessary for the relevant funds to be received and transferred to the Administrative Agent for
same day value on the date the relevant reimbursement obligation is due) in the case of a Loan,
Borrowing or LC Disbursement which is denominated in a Foreign Currency or which is to, or for the
account of, a Foreign Subsidiary Borrower.

14

 

          “Mandatory Cost” is described in Schedule 2.02.

          “Material Adverse Effect” means a material adverse effect on (a) the business, assets,
property, condition (financial or otherwise) or prospects of the Company and the Subsidiaries taken
as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan
Documents or the rights or remedies of the Administrative Agent and the Lenders thereunder.

          “Material Indebtedness” means any 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
Company and its Subsidiaries in an aggregate principal amount exceeding $10,000,000 (or the
equivalent thereof in currencies other than Dollars). For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of the Company 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 Company or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

          “Material Subsidiary” means each Subsidiary (i) which, as of the most recent Fiscal
Quarter of the Company, for the period of four consecutive Fiscal Quarters then ended, for which
financial statements have been delivered pursuant to Section 5.01, contributed greater than five
percent (5%) of the Company’s Consolidated EBITDA for such period or (ii) which contributed greater
than five percent (5%) of the Company’s Consolidated Total Assets as of such date; provided
that, if at any time the aggregate amount of the Company’s Consolidated EBITDA or Company’s
Consolidated Total Assets attributable to Subsidiaries (other than Affected Foreign Subsidiaries)
that are not Subsidiary Guarantors exceeds ten percent (10%) of the Company’s Consolidated EBITDA
for any such period or ten percent (10%) of the Company’s Consolidated Total Assets as of the end
of any such Fiscal Quarter, the Company (or, in the event the Company has failed to do so within
ten days, the Administrative Agent) shall designate sufficient Subsidiaries (other than Affected
Foreign Subsidiaries) as “Material Subsidiaries” to eliminate such excess, and such designated
Subsidiaries shall for all purposes of this Agreement constitute Material Subsidiaries.

          “Maturity Date” means November 7, 2012.

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

          “Mortgage” means each mortgage, deed of trust or other agreement which conveys or
evidences a Lien in favor of the Administrative Agent, for the benefit of the Administrative Agent
and the Holders of Secured Obligations, on real property of a Loan Party, including any amendment,
restatement, modification or supplement thereto.

          “Mortgage Instruments” means such title reports, title insurance, opinions of counsel,
surveys, appraisals and environmental reports as are reasonably requested by, and in form and
substance reasonably acceptable to, the Administrative Agent from time to time.

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

          “Net Mark-to-Market Exposure” of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such Person arising from
Swap Agreements. As used in this definition, “unrealized losses” means the fair market value of
the cost to such Person of replacing such Swap Agreement as of the date of determination (assuming
the Swap Agreement were to be terminated as of that date), and “unrealized profits” means the fair
market value of

15

 

the gain to such Person of replacing such Swap Agreement as of the date of determination (assuming
such Swap Agreement were to be terminated as of that date).

          “New Money Credit Event” means with respect to the Issuing Bank, any increase
(directly or indirectly) in the Issuing Bank’s exposure (whether by way of additional credit or
banking facilities or otherwise, including as part of a restructuring) to any Borrower or any
Governmental Authority in any Borrower’s or any applicable Letter of Credit beneficiary’s country
occurring by reason of (i) any law, action or requirement of any Governmental Authority in such
Borrower’s or such Letter of Credit beneficiary’s country, or (ii) any request in respect of
external indebtedness of borrowers in such Borrower’s or such Letter of Credit beneficiary’s
country applicable to banks generally which conduct business with such borrowers, in each case to
the extent calculated by reference to the aggregate Revolving Credit Exposures outstanding prior to
such increase.

          “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any
indebtedness, liability or obligation under any Sale and Leaseback Transaction to which such Person
is a party which is not a Capitalized Lease, (c) any indebtedness, liability or obligation under
any so-called “synthetic lease” transaction entered into by such Person, or (d) any indebtedness,
liability or obligation arising with respect to any other transaction to which such Person is a
party which is the functional equivalent of or takes the place of borrowing but which does not
constitute a liability on the balance sheets of such Person, but excluding obligations with respect
to Operating Leases.

          “Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities
and other obligations of the Loan Parties to the Lenders or to any Lender, the Administrative
Agent, the Issuing Bank or any indemnified party arising under the Loan Documents.

          “Operating Lease” of a Person means any lease of Property (other than a Capitalized
Lease) by such Person as lessee which has an original term (including any required renewals and any
renewals effective at the option of the lessor) of one year or more.

          “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 or
any other Loan Document.

          “Overnight Foreign Currency Rate” means, for any amount payable in a Foreign Currency,
the rate of interest per annum as reasonably determined by the Administrative Agent at which
overnight or weekend deposits in the relevant currency (or if such amount due remains unpaid for
more than three Business Days, then for such other period of time as the Administrative Agent may
reasonably elect) for delivery in immediately available and freely transferable funds would be
offered by the Administrative Agent to major banks in the interbank market upon request of such
major banks for the relevant currency as determined above and in an amount comparable to the unpaid
principal amount of the related Credit Event, plus any taxes, levies, imposts, duties, deductions,
charges or withholdings imposed upon, or charged to, the Administrative Agent by any relevant
correspondent bank in respect of such amount in such relevant currency.

          “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.

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          “Permitted Liens” is defined in Section 6.02.

          “Permitted Precious Metals Agreements” means precious metals agreements and
arrangements (whether styled as debt, a lease, a consignment or otherwise) entered into from time
to time by the Company or any Subsidiary, but only to the extent that the aggregate Dollar Amount
of the precious metals outstanding thereunder does not exceed $180,000,000. For purposes of this
definition, “precious metals” shall include, without limitation, gold, silver, platinum, palladium
and copper (even though copper is not generally deemed to be a precious metal).

          “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 Company 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.

          “Pledge Subsidiary” means (i) each Domestic Subsidiary which is a Material Subsidiary
and (ii) each First Tier Foreign Subsidiary which is a Material Subsidiary.

          “Pounds Sterling” means the lawful currency of the United Kingdom.

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

          “Precious Metals” has the meaning set forth in Section 5.09(b).

          “Property” of a Person means any and all property, whether real, personal, tangible,
intangible, or mixed, of such Person; other assets owned by such Person; and to the extent of such
Person’s interest therein, other assets leased or operated by such Person.

          “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 having Revolving Credit Exposures and
unused Commitments representing more than 50% of the sum of the total Revolving Credit Exposures
and unused Commitments at such time.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Company 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 in the Company or any option, warrant or
other right to acquire any such Equity Interests in the Company.

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          “Revolving 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.

          “Revolving Loan” means a Loan made pursuant to Section 2.01.

          “S&P” means Standard & Poor’s.

          “Sale and Leaseback Transaction” means any sale or other transfer of Property by any
Person with the intent to lease such Property as lessee.

          “Secured Obligations” means all Obligations, together with all Swap Obligations and
Banking Services Obligations owing to one or more Lenders or their respective Affiliates.

          “Security Agreement” means that certain Pledge and Security Agreement (including any
and all supplements thereto), dated as of the date hereof, between the Loan Parties and the
Administrative Agent, for the benefit of the Administrative Agent and the other Holders of Secured
Obligations, and any other pledge or security agreement entered into, after the date of this
Agreement by any other Loan Party (as required by this Agreement or any other Loan Document), or
any other Person, as the same may be amended, restated or otherwise modified from time to time.

          “Solvent” means, in reference to any Borrower, (i) the fair value of the assets of
such Borrower, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent
or otherwise; (ii) the present fair saleable value of the property of such Borrower will be greater
than the amount that will be required to pay the probable liability of its debts and other
liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become
absolute and matured; (iii) such Borrower will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured;
and (iv) such Borrower will not have unreasonably small capital with which to conduct the business
in which it is engaged as such business is now conducted and is proposed to be conducted after the
Effective Date.

          “Statutory Reserve Rate” means, with respect to any currency, 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, liquid asset or similar requirements (including any
marginal, special, emergency or supplemental reserves or other requirements) established by any
central bank, monetary authority, the Board, the Financial Services Authority, the European Central
Bank or other Governmental Authority for any category of deposits or liabilities customarily used
to fund loans in such currency, expressed in the case of each such requirement as a decimal. Such
reserve, liquid asset or similar requirements shall, in the case of Dollar denominated Loans,
include those imposed pursuant to Regulation D of the Board. Eurocurrency Loans shall be deemed to
be subject to such reserve, liquid asset or similar requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any Lender under any
applicable law, rule or regulation, including Regulation D of the Board. The Statutory Reserve
Rate shall be adjusted automatically on and as of the effective date of any change in any reserve,
liquid asset or similar requirement.

          “Subordinated Indebtedness” means any Indebtedness of the Company or any Subsidiary
the payment of which is subordinated to payment of the Secured Obligations to the written
satisfaction of, and the terms and conditions of which are otherwise satisfactory to, the
Administrative Agent.

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          “Subordinated Indebtedness Documents” means any document, agreement or instrument
evidencing any Subordinated Indebtedness or entered into in connection with any Subordinated
Indebtedness.

          “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.

          “Subsidiary” means any subsidiary of the Company.

          “Subsidiary Guarantor” means each Material Subsidiary (other than Affected Foreign
Subsidiaries) that is required to become a party to the Subsidiary Guaranty (including pursuant to
a joinder or supplement thereto). The Subsidiary Guarantors on the Effective Date are identified
as such in Schedule 3.01 hereto.

          “Subsidiary Guaranty” means that certain Guaranty dated as of the Effective Date
(including any and all supplements thereto) and executed by each Subsidiary Guarantor party
thereto, and, in the case of any guaranty by a Foreign Subsidiary, any other guaranty agreements
executed by a Foreign Subsidiary for the benefit of the Administrative Agent and the other Holders
of Secured Obligations, in each case as amended, restated, supplemented or otherwise modified from
time to time.

          “Substantial Portion” means Property which represents more than 10% of the
Consolidated Total Assets of the Company or Property which is responsible for more than 10% of the
consolidated net sales or of the Consolidated Net Income of the Company, in each case, as would be
shown in the consolidated financial statements of the Company as at the beginning of the
four-quarter period ending with the quarter in which such determination is made (or if financial
statements have not been delivered hereunder for that quarter which begins the four quarter period,
then the financial statements delivered hereunder for the quarter ending immediately prior to that
quarter).

          “Swap Agreement” means any transaction (including an agreement with respect thereto)
now existing or hereafter entered into by the Company or any Subsidiary which is a rate swap, basis
swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions) or any combination thereof, whether linked to
one or more interest rates, foreign currencies, commodity prices, equity prices or other financial
measures.

          “Swap Obligations” means any and all obligations of the Company or any Subsidiary,
whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender, and
(b) any and all cancellations, buy backs, reversals, terminations or assignments of any such Swap
Agreement transaction.

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          “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, National Association, in its capacity as
lender of Swingline Loans hereunder.

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

          “TARGET” means the Trans-European Automated Real-time Gross Settlement Express
Transfer (TARGET) payment system (or, if such payment system ceases to be operative, such other
payment system (if any) reasonably determined by the Administrative Agent to be a suitable
replacement) for the settlement of payments in euro.

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

          “Transactions” means the execution, delivery and performance by the Loan Parties of
this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions,
the use of the proceeds thereof and the issuance of Letters of Credit hereunder.

          “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 Alternate Base Rate.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York or any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests.

          “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion
thereof) that are contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in
nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations.

          “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 1.01. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or
by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency
Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a
“Revolving Borrowing”) or by Type (e.g., a “Eurocurrency Borrowing”) or by Class and Type
(e.g., a “Eurocurrency Revolving Borrowing”).

          SECTION 1.02. 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

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construed as referring to such agreement, instrument or other document as from time to time
amended, restated, supplemented or otherwise modified (subject to any restrictions on such
amendments, restatements, 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 1.03. 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 Company notifies the Administrative Agent
that the Company 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 Company 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.

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 Borrowers in Agreed Currencies from time to time
during the Availability Period in an aggregate principal amount that will not result in (a) the
Dollar Amount of such Lender’s Revolving Credit Exposure exceeding the Dollar Amount of such
Lender’s Commitment, (b) subject to Section 2.04, the sum of the Dollar Amount of the total
Revolving Credit Exposures exceeding the Aggregate Commitment, (c) subject to Section 2.04, the
Dollar Amount of the total outstanding Revolving Loans and LC Exposure, in each case denominated in
Foreign Currencies, exceeding the Foreign Currency Sublimit or (d) subject to Section 2.04, the
Dollar Amount of the total Revolving Credit Exposures in respect of Foreign Subsidiary Borrowers
exceeding the Foreign Subsidiary Borrower Sublimit. Within the foregoing limits and subject to the
terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving
Loans.

          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be made as part
of a Borrowing consisting of Revolving 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 ABR
Loans or Eurocurrency Loans as the relevant Borrower may request in accordance herewith;
provided that each ABR Loan shall only be made in Dollars. Each Swingline Loan shall be an
ABR Loan. Each Lender at its option may make any Eurocurrency Loan by causing any domestic or
foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of
such option shall not

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affect the obligation of the relevant Borrower to repay such Loan in accordance with the terms
of this Agreement.

          (c) At the commencement of each Interest Period for any Eurocurrency Revolving Borrowing that
is made to the Company, such Borrowing shall be in an aggregate amount that is an integral multiple
of $1,000,000 and not less than $3,000,000 (or the Equivalent Amount of each such amount if such
Borrowing is denominated in a Foreign Currency). Subject to paragraph (e) of this Section, at the
commencement of each Interest Period for any Eurocurrency Revolving Borrowing that is made to a
Foreign Subsidiary Borrower, such Borrowing shall be in an aggregate amount that is an integral
multiple of $100,000 and not less than $100,000 (or the Equivalent Amount of each such amount if
such Borrowing is denominated in a Foreign Currency). At the time that each ABR Revolving
Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of
$500,000 and not less than $1,000,000; provided that an ABR Revolving Borrowing may be in
an aggregate amount that is equal to the entire unused balance of the Aggregate Commitment 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 $500,000 and not less
than $500,000. Borrowings of more than one Type and Class may be outstanding at the same time;
provided that there shall not at any time be more than a total of eight (8) Eurocurrency
Revolving Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, no Borrower shall be entitled to
request, or to elect to convert or continue, any Borrowing if the Interest Period requested with
respect thereto would end after the Maturity Date.

          (e) The initial borrowing from any Lender to the Dutch Borrower shall at all times exceed
€50,000 (or its equivalent in another currency).

          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing,
the applicable Borrower, or the Company on behalf of the applicable Borrower, shall notify the
Administrative Agent of such request by telephone (a) in the case of a Eurocurrency Borrowing, not
later than 11:00 a.m., Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing
denominated in Dollars to the Company) or four (4) Business Days (in the case of a Eurocurrency
Borrowing denominated in a Foreign Currency or a Eurocurrency Borrowing to a Foreign Subsidiary
Borrower), in each case before the date of the proposed Borrowing or (b) in the case of an ABR
Borrowing, not later than 11:00 a.m., Chicago time, one (1) Business Day before the date of the
proposed Borrowing; provided that any such notice of an ABR Revolving 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., Chicago time, 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 in a form approved by the Administrative
Agent and signed by the applicable Borrower, or the Company on behalf of the applicable Borrower.
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 an ABR Borrowing or a Eurocurrency Borrowing;

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

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     (v) the location and number of the applicable 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, in the case of a Borrowing
denominated in Dollars to the Company, the requested Revolving Borrowing shall be an ABR Borrowing.
If no Interest Period is specified with respect to any requested Eurocurrency Revolving Borrowing,
then the relevant 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. Determination of Dollar Amounts. The Administrative Agent will
determine the Dollar Amount of:

          (a) each Eurocurrency Borrowing as of the date three (3) Business Days prior to the date of
such Borrowing or, if applicable, the date of conversion/continuation of any Borrowing as a
Eurocurrency Borrowing,

          (b) the LC Exposure as of the date of each request for the issuance, amendment, renewal or
extension of any Letter of Credit, and

          (c) all outstanding Credit Events on and as of the last Business Day of each calendar quarter
and, during the continuation of an Event of Default, on any other Business Day elected by the
Administrative Agent in its discretion or upon instruction by the Required Lenders.

Each day upon or as of which the Administrative Agent determines Dollar Amounts as described in the
preceding clauses (a), (b) and (c) is herein described as a “Computation Date” with respect to each
Credit Event for which a Dollar Amount is determined on or as of such day.

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans in Dollars to the Company 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 Dollar Amount of the total Revolving Credit Exposures exceeding the
Aggregate Commitment; 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 Company may borrow, prepay and reborrow Swingline
Loans.

          (b) To request a Swingline Loan, the Company shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 12:00 noon, Chicago 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
Company. The Swingline Lender shall make each Swingline Loan available to the Company by means of
a credit to the general deposit account of the Company 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 3:00 p.m., Chicago 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., Chicago 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

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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 Company 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 Company (or other party on
behalf of the Company) 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 Company for any reason. The
purchase of participations in a Swingline Loan pursuant to this paragraph shall not relieve the
Company of any default in the Company’s repayment of such Swingline Loan.

          SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Company may request the issuance of Letters of Credit denominated
in Agreed Currencies for its own account or any Subsidiary, 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 conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by the Company to, or entered into by the Company with, the Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control;
provided, however, if the Issuing Bank is requested to issue Letters of Credit with respect
to a jurisdiction the Issuing Bank deems, in its reasonable judgment, may at any time subject it to
a New Money Credit Event or a Country Risk Event, the Company shall, at the request of the Issuing
Bank, guaranty and indemnify the Issuing Bank against any and all costs, liabilities and losses to
the extent resulting from such New Money Credit Event or Country Risk Event, in each case in a form
and substance reasonably satisfactory to the Issuing Bank. The letters of credit identified on
Schedule 2.06 (the “Existing Letters of Credit”) shall be deemed to be “Letters of Credit”
issued on the Effective Date for all purposes of the Loan Documents, except that the Issuing Bank
shall not collect any issuance or fronting fee or similar compensation with respect to the deemed
issuance thereof on the Effective Date.

          (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 Company 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

24

 

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
Agreed Currency applicable thereto, 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 Company 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. 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 Company shall be deemed to represent and warrant that),
after giving effect to such issuance, amendment, renewal or extension (i) the Dollar Amount of the
LC Exposure shall not exceed $50,000,000, (ii) subject to Section 2.04, the sum of the Dollar
Amount of the total Revolving Credit Exposures shall not exceed the Aggregate Commitment and (iii)
subject to Section 2.04, the Dollar Amount of the sum of the total outstanding Revolving Loans and
LC Exposure, in each case denominated in Foreign Currencies, shall not exceed the Foreign Currency
Sublimit.

          (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 (5) Business Days prior to the Maturity Date.

          (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 Dollar 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 Company on the date due as provided in paragraph (e) of this Section, or of any
reimbursement payment required to be refunded to the Company for any reason. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this 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 Company shall reimburse such LC Disbursement by paying to the
Administrative Agent in Dollars the Dollar Amount equal to such LC Disbursement, calculated as of
the date the Issuing Bank made such LC Disbursement (or if the Issuing Bank shall so elect in its
sole discretion by notice to the Company, in such other Agreed Currency which was paid by the
Issuing Bank pursuant to such LC Disbursement in an amount equal to such LC Disbursement) not later
than 12:00 noon, Local Time, on the date that such LC Disbursement is made, if the Company shall
have received notice of such LC Disbursement prior to 10:00 a.m., Local Time, on such date, or, if
such notice has not been received by the Company prior to such time on such date, then not later
than 12:00 noon, Local Time, on the Business Day immediately following the day that the Company
receives such notice; provided that, if such LC Disbursement is at least the Dollar Amount
of $1,000,000, the Company may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.03 or 2.05 that such payment be financed with an ABR Revolving Borrowing
or Swingline Loan in an equivalent Dollar Amount of such LC Disbursement and, to the extent so
financed, the Company’s obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing or Swingline Loan. If the Company

25

 

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 Company 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
Company, 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 Company 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 ABR Revolving Loans or a Swingline
Loan as contemplated above) shall not constitute a Loan and shall not relieve the Company of its
obligation to reimburse such LC Disbursement. If the Company’s reimbursement of, or obligation to
reimburse, any amounts in any Foreign Currency would subject the Administrative Agent, the Issuing
Bank or any Lender to any stamp duty, ad valorem charge or similar tax that would not be payable if
such reimbursement were made or required to be made in Dollars, the Company shall, at its option,
either (x) pay the amount of any such tax requested by the Administrative Agent, the Issuing Bank
or the relevant Lender or (y) reimburse each LC Disbursement made in such Foreign Currency in
Dollars, in an amount equal to the Equivalent Amount, calculated using the applicable Exchange
Rates, on the date such LC Disbursement is made, of such LC Disbursement.

          (f) Obligations Absolute. The Company’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
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 Company’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. Notwithstanding
anything to the contrary in this paragraph, nothing herein shall be construed to excuse the Issuing
Bank from liability to the Company to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Company to the extent permitted by
applicable law) suffered by the Company 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 gross
negligence or willful misconduct on the part of the Issuing Bank, 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

26

 

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 Company by
telephone (confirmed 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 Company 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 Company 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 Company reimburses such LC Disbursement,
at the rate per annum then applicable to ABR Revolving Loans (or in the case such LC Disbursement
is denominated in a Foreign Currency, at the Overnight Foreign Currency Rate for such Agreed
Currency plus the then effective Applicable Rate with respect to Eurocurrency Revolving
Loans); provided that, if the Company fails to reimburse such LC Disbursement when due
pursuant to paragraph (e) of this Section, then Section 2.13(c) 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.

          (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Company, 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 Company 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 then outstanding and 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 Company receives notice from the Administrative Agent or the Required
Lenders (or, if the maturity of the Loans has been accelerated, Lenders with LC Exposure
representing greater than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Company shall deposit in an account with the Administrative Agent,
in the name of the Administrative Agent and for the benefit of the Lenders (the “LC Collateral
Account”), an amount in cash equal to 105% of the Dollar Amount of the LC Exposure as of such
date plus any accrued and unpaid interest thereon; provided that (i) the portions of such
amount attributable to undrawn Foreign Currency Letters of Credit or LC Disbursements in a Foreign
Currency that the Company is not late in reimbursing shall be deposited in the applicable Foreign
Currencies in the actual amounts of such undrawn Letters of Credit and LC Disbursements and (ii)
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 Company described in

27

 

clause (h) or (i) of Article VII. For the purposes of this paragraph, the Foreign Currency LC
Exposure shall be calculated using the applicable Exchange Rates on the date notice demanding cash
collateralization is delivered to the Company. The Company also shall deposit cash collateral
pursuant to this paragraph as and to the extent required by Section 2.11(b). Such deposit shall be
held by the Administrative Agent as collateral for the payment and performance of the Secured
Obligations. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account and the Company hereby grants the Administrative
Agent a security interest in the LC Collateral 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 Company’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 Company 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 50% of the total LC Exposure), be applied to
satisfy other Secured Obligations. If the Company 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 Company within three (3) Business Days
after all Events of Default have been cured or waived.

          (k) Conversion. In the event that the Loans become immediately due and payable on
any date pursuant to Article VII, all amounts (i) that the Company is at the time or thereafter
becomes required to reimburse or otherwise pay to the Administrative Agent in respect of LC
Disbursements made under any Foreign Currency Letter of Credit (other than amounts in respect of
which the Company has deposited cash collateral pursuant to paragraph (j) above, if such cash
collateral was deposited in the applicable Foreign Currency to the extent so deposited or applied),
(ii) that the Lenders are at the time or thereafter become required to pay to the Administrative
Agent and the Administrative Agent is at the time or thereafter becomes required to distribute to
the Issuing Bank pursuant to paragraph (e) of this Section in respect of unreimbursed LC
Disbursements made under any Foreign Currency Letter of Credit and (iii) of each Lender’s
participation in any Foreign Currency Letter of Credit under which an LC Disbursement has been made
shall, automatically and with no further action required, be converted into the Dollar Amount,
calculated using the Exchange Rates on such date (or in the case of any LC Disbursement made after
such date, on the date such LC Disbursement is made), of such amounts. On and after such
conversion, all amounts accruing and owed to the Administrative Agent, the Issuing Bank or any
Lender in respect of the obligations described in this paragraph shall accrue and be payable in
Dollars at the rates otherwise applicable hereunder.

          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
(i) in the case of Loans denominated in Dollars to the Company, by 12:00 noon, Chicago time, to the
account of the Administrative Agent most recently designated by it for such purpose by notice to
the Lenders and (ii) in the case of each Loan denominated in a Foreign Currency or to a Foreign
Subsidiary Borrower, by 12:00 noon, Local Time, in the city of the Administrative Agent’s
Eurocurrency Payment Office for such currency and Borrower and at such Eurocurrency Payment Office;
provided that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the relevant Borrower by promptly crediting
the amounts so received, in like funds, to (x) an account of the Company maintained with the
Administrative Agent in New York City or Chicago and designated by the relevant Borrower in the
applicable Borrowing Request, in the case of Loans denominated in Dollars to the Company and (y) an
account of such Borrower maintained with the Administrative Agent in the relevant jurisdiction and
designated by such Borrower in the applicable Borrowing Request, in the case of Loans denominated
in a Foreign Currency or to a Foreign Subsidiary Borrower; provided that ABR

28

 

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 relevant 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 such 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 such 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 (including without limitation the Overnight
Foreign Currency Rate in the case of Loans denominated in a Foreign Currency) or (ii) in the case
of such Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

          SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency
Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the relevant Borrower may elect to convert such Borrowing to a different Type or to
continue such Borrowing and, in the case of a Eurocurrency Revolving Borrowing, may elect Interest
Periods therefor, all as provided in this Section. A 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, a Borrower, or the Company on its behalf,
shall notify the Administrative Agent of such election by telephone by the time that a Borrowing
Request would be required under Section 2.03 if such 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 relevant Borrower, or the Company on
its behalf. Notwithstanding any contrary provision herein, this Section shall not be construed to
permit any Borrower to (i) change the currency of any Borrowing, (ii) elect an Interest Period for
Eurocurrency Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing to a
Borrowing of a Type not available under the Class of Commitments pursuant to which such Borrowing
was made.

          (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);

29

 

     (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 an ABR Borrowing or a Eurocurrency
Borrowing; and

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

If any such Interest Election Request requests a Eurocurrency Borrowing but does not specify an
Interest Period, then the applicable 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 relevant Borrower fails to deliver a timely Interest Election Request with respect
to a Eurocurrency Revolving 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 (i) in
the case of a Borrowing denominated in Dollars, such Borrowing shall be converted to an ABR
Borrowing and (ii) in the case of a Borrowing denominated in a Foreign Currency, such Borrowing
shall automatically continue as a Eurocurrency Borrowing in the same Agreed Currency with an
Interest Period of one month unless (x) such Eurocurrency Borrowing is or was repaid in accordance
with Section 2.11 or (y) such Borrower shall have given the Administrative Agent an Interest
Election Request requesting that, at the end of such Interest Period, such Eurocurrency Borrowing
continue as a Eurocurrency Borrowing for the same or another Interest Period. 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 Company, then, so
long as an Event of Default is continuing (i) no outstanding Revolving Borrowing borrowed by the
Company may be converted to or continued as a Eurocurrency Borrowing and (ii) unless repaid, each
Eurocurrency Revolving Borrowing borrowed by the Company shall be converted to an ABR 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.

          (b) The Company 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 $5,000,000 and not less than $10,000,000 and (ii) the Company shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.11, the Dollar Amount of the sum of the Revolving Credit
Exposures would exceed the Aggregate Commitment.

          (c) The Company 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 Company pursuant to this Section
shall be irrevocable; provided that a notice of termination of the Commitments delivered by
the Company may state that such notice is conditioned upon the effectiveness of other credit
facilities, in which case such notice may be revoked by the Company (by notice to the
Administrative Agent on or prior to the specified effective

30

 

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) Each 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 made to such Borrower on the Maturity Date in
the currency of such Loan and (ii) in the case of the Company, 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 Company shall repay all Swingline Loans then
outstanding.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of each 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 accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class, Agreed Currency and 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 each Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (d) The entries made in the accounts 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 any Borrower to repay the Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it to any Borrower be evidenced by a promissory
note. In such event, the relevant Borrower shall prepare, execute and deliver to such Lender a
promissory note payable to the order of such Lender (or, if requested by such Lender, to such
Lender and its registered assigns) and in a form approved by the Administrative Agent and
consistent with the terms of this Agreement. 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) Any Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with the provisions of this
Section 2.11(a). The applicable Borrower, or the Company on behalf of the applicable 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 Eurocurrency Revolving Borrowing, not later than 11:00 a.m., Local Time, three
Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Revolving
Borrowing, not later than 11:00 a.m., Chicago 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, Chicago time, on
the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment
date and the principal amount of

31

 

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 Revolving Borrowing shall be applied ratably to the Loans
included in the prepaid Borrowing. Prepayments shall be accompanied by (i) accrued interest to the
extent required by Section 2.13 and (ii) break funding payments pursuant to Section 2.16.

          (b) If at any time, (i) other than as a result of fluctuations in currency exchange rates,
the sum of the aggregate principal Dollar Amount of all of the Revolving Credit Exposures
(calculated, with respect to those Credit Events denominated in Foreign Currencies, as of the most
recent Computation Date with respect to each such Credit Event) exceeds the Aggregate Commitment or
such sum in respect of Foreign Subsidiary Borrowers exceeds the Foreign Subsidiary Borrower
Sublimit and (ii) solely as a result of fluctuations in currency exchange rates, the sum of the
aggregate principal Dollar Amount of all of the outstanding Revolving Loans and LC Exposure, in
each case denominated in Foreign Currencies (collectively, “Foreign Currency Exposure”), as
of the most recent Computation Date with respect to each such Credit Event, exceeds 105% of the
Foreign Currency Sublimit or such sum in respect of Foreign Subsidiary Borrowers exceeds the
Foreign Subsidiary Borrower Sublimit, the Borrowers shall immediately repay Borrowings or cash
collateralize LC Disbursements in an account with the Administrative Agent pursuant to Section
2.06(j), as applicable, in an aggregate principal amount sufficient to cause (x) the aggregate
Dollar Amount of all Revolving Credit Exposures (so calculated) to be less than or equal to the
Aggregate Commitment, (y) the Foreign Currency Exposure to be less than or equal to the Foreign
Currency Sublimit and (z) the aggregate Dollar Amount of all Revolving Credit Exposures in respect
of the Foreign Subsidiary Borrowers to be less than the Foreign Subsidiary Borrower Sublimit.

          SECTION 2.12. Fees. (a) The Company agrees to pay to the Administrative Agent for
the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the
average daily unused Dollar Amount of the Commitment of such Lender during the period from and
including the Effective Date to but excluding the date on which such Commitment terminates.
Accrued commitment fees shall be payable in arrears on the third (3rd) Business Day
immediately following 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).
For purposes of computing commitment fees, (i) the Commitment of a Lender (other than the
Swingline Lender) shall be deemed to be used to the extent of the outstanding Revolving Loans and
LC Exposure of such Lender, and (ii) the Commitment of the Lender acting as Swingline Lender shall
be deemed to be used to the extent of the outstanding Revolving Loans, LC Exposure and Swingline
Loans of such Lender.

          (b) The Company 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, in
the case of commercial Letters of Credit, at the Applicable Rate and, in the case of standby
Letters of Credit, at the same Applicable Rate used to determine the interest rate applicable to
Eurocurrency Revolving Loans on the average daily Dollar 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

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shall accrue at the rate of 0.125% per annum on the average daily Dollar Amount of the LC
Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) attributable
to Letters of Credit issued by the Issuing Bank 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 and commissions
(including, without limitation, standard commissions with respect to commercial Letters of Credit,
payable at the time of invoice of such amounts) with respect to the issuance, amendment,
cancellation, negotiation, transfer, presentment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Unless otherwise specified above, 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 (3rd) 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 ten (10) days after
invoice. 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 Company 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 Company and the Administrative
Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in Dollars and 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 commitment 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 ABR Borrowing (including each
Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate.

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

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by any 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% 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% plus the rate applicable to ABR 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, in the case of Revolving Loans, 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 an ABR 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 Eurocurrency 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 (i) computed by reference to the Alternate Base Rate at times when the Alternate Base 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)

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and (ii) for Borrowings denominated in Pounds Sterling shall be computed on the basis of a
year of 365 days, 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 Alternate Base 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 Eurocurrency Borrowing:

     (a) 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

     (b) 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 applicable Borrower and the Lenders
by telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent
notifies the applicable 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 to, or continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a Eurocurrency Revolving Borrowing, such
Borrowing shall be made as an ABR Borrowing; provided that if the circumstances giving rise
to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be
permitted.

          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 Eurocurrency 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 Eurocurrency Loan or of maintaining its obligation to make any such Loan
(including, without limitation, pursuant to any conversion of any Borrowing denominated in an
Agreed Currency into a Borrowing denominated in any other Agreed Currency) or to increase the cost
to such Lender or the Issuing Bank of participating in, issuing or maintaining any Letter of Credit
(including, without limitation, pursuant to any conversion of any Borrowing denominated in an
Agreed Currency into a Borrowing denominated in any other Agreed Currency) 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 (including, without limitation, pursuant to any conversion of any
Borrowing denominated in an Agreed Currency into a Borrowing denominated in any other Agreed
Currency), then the applicable 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, for such additional costs incurred or reduction suffered.

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          (b) If any Lender or the Issuing Bank reasonably 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 with respect thereto 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
applicable 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 for any such reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank describing the Change in Law in reasonable
detail and 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 Company and shall be conclusive absent manifest error. The
Company shall pay, or cause the other Borrowers to pay, such Lender or the Issuing Bank, as the
case may be, the amount shown as due on any such certificate within 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 Company shall not be required to compensate
a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions
incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may
be, notifies the Company 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 270-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 Eurocurrency Loan other than on the last day of an Interest Period applicable
thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to
Section 2.11), (b) the conversion of any Eurocurrency Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any
Eurocurrency 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 Eurocurrency Loan other than on the last day of the Interest Period
applicable thereto as a result of a request by the Company pursuant to Section 2.19, then, in any
such event, the Borrowers shall compensate each Lender for the loss, cost and expense attributable
to such event. 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
deposits in the relevant currency of a comparable amount and period from other banks in the eurocurrency 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 applicable Borrower and shall be conclusive absent manifest
error. The

35

 

applicable Borrower shall pay such Lender the amount shown as due on any such certificate within
ten (10) days after receipt thereof.

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
each Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if any 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) such Borrower shall make such deductions and (iii) such Borrower shall pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) In addition, each Borrower shall pay any Other Taxes related to such Borrower and imposed
on or incurred by the Administrative Agent, a Lender or the Issuing Bank to the relevant
Governmental Authority in accordance with applicable law.

          (c) The relevant Borrower shall indemnify the Administrative Agent, each Lender and the
Issuing Bank, within ten (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 such
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 Company 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 any
Borrower to a Governmental Authority, such 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 a Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to such
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 such 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 reasonable discretion, that it
has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the
Borrowers or with respect to which a Borrower has paid additional amounts pursuant to this Section
2.17, it shall pay over such refund to such Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by such 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 such Borrower,
upon the request of the Administrative Agent or such Lender, agrees to repay the amount paid over
to such Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent or such Lender in

36

 

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 any Borrower or any other Person.

          SECTION 2.18. Payments Generally; Allocations of Proceeds; Pro Rata Treatment; Sharing of
Set-offs.

          (a) Each 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, 2.16 or 2.17, or otherwise) prior to (i) in the case of payments denominated in Dollars by
the Company, 12:00 noon, Chicago time and (ii) in the case of payments denominated in a Foreign
Currency or by a Foreign Subsidiary Borrower, 12:00 noon, Local Time, in the city of the
Administrative Agent’s Eurocurrency Payment Office for such currency, in each case 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 (i) in the same currency in which the applicable Credit Event was made
(or where such currency has been converted to euro, in euro) and (ii) to the Administrative Agent
at its offices at Chase Tower, Chicago, Illinois 60603 or, in the case of a Credit Event
denominated in a Foreign Currency or to a Foreign Subsidiary Borrower, the Administrative Agent’s
Eurocurrency Payment Office for such currency, except payments to be made directly to the Issuing
Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Sections
2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments denominated in the same currency 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.
Notwithstanding the foregoing provisions of this Section, if, after the making of any Credit Event
in any Foreign Currency, currency control or exchange regulations are imposed in the country which
issues such currency with the result that the type of currency in which the Credit Event was made
(the “Original Currency”) no longer exists or any Borrower is not able to make payment to
the Administrative Agent for the account of the Lenders in such Original Currency, then all
payments to be made by such Borrower hereunder in such currency shall instead be made when due in
Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due,
it being the intention of the parties hereto that the Borrowers take all risks of the imposition of
any such currency control or exchange regulations.

          (b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting a
specific payment of principal, interest, fees or other sum payable under the Loan Documents (which
shall be applied as specified by the Company) or (ii) after an Event of Default has occurred and is
continuing and the Administrative Agent so elects or the Required Lenders so direct, such funds
shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements
including amounts then due to the Administrative Agent and the Issuing Bank from any Borrower
(other than in connection with Banking Services Obligations and Swap Obligations), second,
to pay any fees or expense reimbursements then due to the Lenders from any Borrower (other than in
connection with Banking Services Obligations and Swap Obligations), third, to pay interest
then due and payable on the Loans ratably, fourth, to prepay principal on the Loans and
unreimbursed LC Disbursements ratably, fifth, to pay an amount to the Administrative Agent
equal to one hundred five percent (105%) of the aggregate undrawn face amount of all outstanding
Letters of Credit and the aggregate amount of any unpaid LC Disbursements, to be held as cash
collateral for such Obligations, sixth, to payment of any amounts owing with respect to
Banking Services Obligations and Swap Obligations, and seventh, to the payment of any other
Secured Obligation

37

 

due to the Administrative Agent or any Lender by any Borrower. Notwithstanding anything to
the contrary contained in this Agreement, unless so directed by the Company, or unless an Event of
Default is in existence, none of the Administrative Agent or any Lender shall apply any payment
which it receives to any Eurocurrency Loan of a Class, except (a) on the expiration date of the
Interest Period applicable to any such Eurocurrency Loan or (b) in the event, and only to the
extent, that there are no outstanding ABR Loans of the same Class and, in any event, the Borrowers
shall pay the break funding payment required in accordance with Section 2.16. The Administrative
Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and
reapply any and all such proceeds and payments to any portion of the Secured Obligations.

          (c) At the election of the Administrative Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the
Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a
request by a Borrower (or the Company on behalf of a Borrower) pursuant to Section 2.03 or a deemed
request as provided in this Section or may be deducted from any deposit account of such Borrower
maintained with the Administrative Agent. Each Borrower hereby irrevocably authorizes (i) the
Administrative Agent to make a Borrowing for the purpose of paying each payment of principal,
interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and
agrees that all such amounts charged shall constitute Loans (including Swingline Loans) and that
all such Borrowings shall be deemed to have been requested pursuant to Sections 2.03, 2.04 or 2.05,
as applicable and (ii) the Administrative Agent to charge any deposit account of the relevant
Borrower maintained with the Administrative Agent for each payment of principal, interest and fees
as it becomes due hereunder or any other amount due under the Loan Documents.

          (d) 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 any 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 and Swingline Loans to any assignee or participant, other than
to the Company or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph
shall apply). Each 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 such Borrower rights of set-off and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Borrower under this
Agreement in the amount of such participation.

          (e) Unless the Administrative Agent shall have received notice from the relevant 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 such Borrower will not make such payment, the

38

 

Administrative Agent may assume that such 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 such 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 (including without limitation the
Overnight Foreign Currency Rate in the case of Loans denominated in a Foreign Currency).

          (f) If any Lender shall fail to make any payment required to be made by it pursuant to
Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in
its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent for the account of such Lender to satisfy such Lender’s
obligations under such Sections until all such unsatisfied obligations are fully paid.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if any 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
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 Company 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 any 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 defaults in its obligation to fund Loans hereunder, then
the Company 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 the
Loan Documents to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Company shall have
received the prior written consent of the Administrative Agent, 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 Company
(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. 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 Company to require such assignment and
delegation cease to apply.

          SECTION 2.20. Expansion Option. The Company may from time to time elect to increase
the Commitments or enter into one or more tranches of term loans (each an “Incremental Term
Loan”), in each case in minimum increments of $25,000,000 so long as, after giving effect
thereto, the aggregate amount of such increases and all such Incremental Term Loans does not exceed
$50,000,000.

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The Company may arrange for any such increase or tranche to be provided by one or more Lenders
(each Lender so agreeing to an increase in its Commitment, or to participate in such Incremental
Term Loans, an “Increasing Lender”), or by one or more new banks, financial institutions or
other entities (each such new bank, financial institution or other entity, an “Augmenting
Lender”), to increase their existing Commitments, or to participate in such Incremental Term
Loans, or extend Commitments, as the case may be; provided that (i) each Augmenting Lender,
shall be subject to the approval of the Company and the Administrative Agent and (ii) (x) in the
case of an Increasing Lender, the Company and such Increasing Lender execute an agreement
substantially in the form of Exhibit C hereto, and (y) in the case of an Augmenting Lender,
the Company and such Augmenting Lender execute an agreement substantially in the form of
Exhibit D hereto. Increases and new Commitments and Incremental Term Loans created
pursuant to this Section 2.20 shall become effective on the date agreed by the Company, the
Administrative Agent and the relevant Increasing Lenders or Augmenting Lenders and the
Administrative Agent shall notify each Lender thereof. Notwithstanding the foregoing, no increase
in the Commitments (or in the Commitment of any Lender) or tranche of Incremental Term Loans shall
become effective under this paragraph unless, (i) on the proposed date of the effectiveness of such
increase or Incremental Term Loans, (A) the conditions set forth in paragraphs (a) and (b) of
Section 4.02 shall be satisfied or waived by the Required Lenders and the Administrative Agent
shall have received a certificate to that effect dated such date and executed by a Financial
Officer of the Company and (B) the Company shall be in compliance (on a pro forma basis reasonably
acceptable to the Administrative Agent) with the covenants contained in Section 6.11 and (ii) the
Administrative Agent shall have received documents consistent with those delivered on the Effective
Date as to the corporate power and authority of the Borrowers to borrow hereunder after giving
effect to such increase. On the effective date of any increase in the Commitments or any
Incremental Term Loans being made, (i) each relevant Increasing Lender and Augmenting Lender shall
make available to the Administrative Agent such amounts in immediately available funds as the
Administrative Agent shall determine, for the benefit of the other Lenders, as being required in
order to cause, after giving effect to such increase and the use of such amounts to make payments
to such other Lenders, each Lender’s portion of the outstanding Revolving Loans of all the Lenders
to equal its Applicable Percentage of such outstanding Revolving Loans, and (ii) except in the case
of any Incremental Term Loans, the Borrowers shall be deemed to have repaid and reborrowed all
outstanding Revolving Loans as of the date of any increase in the Commitments (with such
reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if
applicable, specified in a notice delivered by the applicable Borrower, or the Company on behalf of
the applicable Borrower, in accordance with the requirements of Section 2.03). The deemed payments
made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by payment
of all accrued interest on the amount prepaid and, in respect of each Eurocurrency Loan, shall be
subject to indemnification by the Borrowers pursuant to the provisions of Section 2.16 if the
deemed payment occurs other than on the last day of the related Interest Periods. The Incremental
Term Loans (a) shall rank pari passu in right of payment with the Revolving Loans, (b) shall not
mature earlier than the Maturity Date
(but may have amortization prior to such date) and (c) shall
be treated substantially the same as (and in any event no more favorably than) the Revolving Loans;
provided that the Incremental Term Loans may be priced differently than the Revolving
Loans. Incremental Term Loans may be made hereunder pursuant to an amendment (an “Incremental
Term Loan Amendment”) to this Agreement and, as appropriate, the other Loan Documents, executed
by the Borrowers, each Augmenting Lender participating in such tranche, if any, and the
Administrative Agent. The Incremental Term Loan Amendment may, without the consent of any other
Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary
or appropriate, in the reasonable opinion of the Administrative Agent, to effect the provisions of
this Section 2.20.

          SECTION 2.21. Market Disruption. Notwithstanding the satisfaction of all conditions
referred to in Article II and Article IV with respect to any Credit Event to be effected in any
Foreign Currency, if (i) there shall occur on or prior to the date of such Credit Event any change
in national or

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international financial, political or economic conditions or currency exchange rates or
exchange controls which would in the reasonable opinion of the Administrative Agent, the Issuing
Bank (if such Credit Event is a Letter of Credit) or the Required Lenders make it impracticable for
the Eurocurrency Borrowings or Letters of Credit comprising such Credit Event to be denominated in
the Agreed Currency specified by the applicable Borrower or (ii) an Equivalent Amount of such
currency is not readily calculable, then the Administrative Agent shall forthwith give notice
thereof to such Borrower, the Lenders and, if such Credit Event is a Letter of Credit, the Issuing
Bank, and such Credit Events shall not be denominated in such Agreed Currency but shall, except as
otherwise set forth in Section 2.07, be made on the date of such Credit Event in Dollars, (a) if
such Credit Event is a Borrowing, in an aggregate principal amount equal to the Dollar Amount of
the aggregate principal amount specified in the related Credit Event Request or Interest Election
Request, as the case may be, as ABR Loans, unless such Borrower notifies the Administrative Agent
at least one Business Day before such date that (i) it elects not to borrow on such date or (ii) it
elects to borrow on such date in a different Agreed Currency, as the case may be, in which the
denomination of such Loans would in the reasonable opinion of the Administrative Agent and the
Required Lenders be practicable and in an aggregate principal amount equal to the Dollar Amount of
the aggregate principal amount specified in the related Credit Event Request or Interest Election
Request, as the case may be or (b) if such Credit Event is a Letter of Credit, in a face amount
equal to the Dollar Amount of the face amount specified in the related request or application for
such Letter of Credit, unless such Borrower notifies the Administrative Agent at least one (1)
Business Day before such date that (i) it elects not to request the issuance of such Letter of
Credit on such date or (ii) it elects to have such Letter of Credit issued on such date in a
different Agreed Currency, as the case may be, in which the denomination of such Letter of Credit
would in the reasonable opinion of the Issuing Bank, the Administrative Agent and the Required
Lenders be practicable and in face amount equal to the Dollar Amount of the face amount specified
in the related request or application for such Letter of Credit, as the case may be.

          SECTION 2.22. Judgment Currency. If for the purposes of obtaining judgment in any
court it is necessary to convert a sum due from any Borrower hereunder in the currency expressed to
be payable herein (the “specified currency”) into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Administrative Agent could
purchase the specified currency with such other currency at the Administrative Agent’s main New
York City office on the Business Day preceding that on which final, non-appealable judgment is
given. The obligations of each Borrower in respect of any sum due to any Lender or the
Administrative Agent hereunder shall, notwithstanding any judgment in a currency other than the
specified currency, be discharged only to the extent that on the Business Day following receipt by
such Lender or the Administrative Agent (as the case may be) of any sum adjudged to be so due in
such other currency such Lender or the Administrative Agent (as the case may be) may in accordance
with normal, reasonable banking procedures purchase the specified currency with such other
currency. If the amount of the specified currency so purchased is less than the sum originally due
to such Lender or the Administrative Agent, as the case may be, in the specified currency, each
Borrower agrees, to the fullest extent that it may effectively do so, as a separate obligation and
notwithstanding any such judgment, to indemnify such Lender or the Administrative Agent, as the
case may be, against such loss, and if the amount of the specified currency so purchased exceeds
(a) the sum originally due to any Lender or the Administrative Agent, as the case may be, in the
specified currency and (b) any amounts shared with other Lenders as a result of allocations of such
excess as a disproportionate payment to such Lender under Section 2.18, such Lender or the
Administrative Agent, as the case may be, agrees to remit such excess to such Borrower.

          SECTION 2.23. Designation of Foreign Subsidiary Borrowers. The Company may at any
time and from time to time designate any Eligible Foreign Subsidiary as a Foreign Subsidiary
Borrower by delivery to the Administrative Agent of a Borrowing Subsidiary Agreement executed by

41

 

such Subsidiary and the Company and the satisfaction of the other conditions precedent set
forth in Section 4.03, and upon such delivery and satisfaction such Subsidiary shall for all
purposes of this Agreement be a Foreign Subsidiary Borrower and a party to this Agreement until the
Company shall have executed and delivered to the Administrative Agent a Borrowing Subsidiary
Termination with respect to such Subsidiary, whereupon such Subsidiary shall cease to be a Foreign
Subsidiary Borrower and a party to this Agreement. Notwithstanding the preceding sentence, no
Borrowing Subsidiary Termination will become effective as to any Foreign Subsidiary Borrower at a
time when any principal of or interest on any Loan to such Borrower shall be outstanding hereunder;
provided that such Borrowing Subsidiary Termination shall be effective to terminate the
right of such Foreign Subsidiary Borrower to make further Borrowings under this Agreement. As soon
as practicable upon receipt of a Borrowing Subsidiary Agreement, the Administrative Agent shall
furnish a copy thereof to each Lender.

ARTICLE III

Representations and Warranties

          Each Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers; Subsidiaries. Each of the Company and its
Subsidiaries is duly organized, validly existing and in good standing (to the extent such concept
is applicable in the relevant jurisdiction) 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 (to the
extent such concept is applicable) in, every jurisdiction where such qualification is required.
Schedule 3.01 hereto (as supplemented from time to time) identifies each Subsidiary, if
such Subsidiary is a Material Subsidiary, the jurisdiction of its incorporation or organization, as
the case may be, the percentage of issued and outstanding shares of each class of its capital stock
or other equity interests owned by the Company and the other Subsidiaries and, if such percentage
is not 100% (excluding directors’ qualifying shares as required by law), a description of each
class issued and outstanding. All of the outstanding shares of capital stock and other equity
interests of each Subsidiary are validly issued and outstanding and fully paid and nonassessable
and all such shares and other equity interests indicated on Schedule 3.01 as owned by the
Company or another Subsidiary are owned, beneficially and of record, by the Company or any
Subsidiary free and clear of all Liens, other than Liens created under the Loan Documents. There
are no outstanding commitments or other obligations of the Company or any Subsidiary to issue, and
no options, warrants or other rights of any Person to acquire, any shares of any class of capital
stock or other equity interests of the Company or any Subsidiary, except pursuant to compensation
plans of the Company and such Subsidiaries.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within each Loan
Party’s corporate powers and have been duly authorized by all necessary corporate and, if required,
shareholder action. The Loan Documents to which each Loan Party is a party have been duly executed
and delivered by such Loan Party and constitute a legal, valid and binding obligation of such Loan
Party, 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
and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will
not violate any

42

 

applicable law or regulation or the charter, by-laws or other organizational documents of the
Company or any of its Subsidiaries or any order of any Governmental Authority, (c) will not violate
or result in a default under any indenture or material agreement or other instrument binding upon
the Company or any of its Subsidiaries or its assets, or give rise to a right thereunder to require
any payment to be made by the Company or any of its Subsidiaries, and (d) will not result in the
creation or imposition of any Lien (other than a Permitted Lien) on any asset of the Company or any
of its Subsidiaries, except Liens created pursuant to the Loan Documents.

          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Company 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, 2006
reported on by Ernst & Young LLP, independent public accountants, and (ii) as of and for the Fiscal
Quarter and the portion of the Fiscal Year ended June 30, 2007, 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 Company 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, 2006, there has been no material adverse change in the business,
assets, operations or condition, financial or otherwise, of the Company and its Subsidiaries, taken
as a whole.

          SECTION 3.05. Properties. (a) Each of the Company 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 Company 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 Company 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.

          SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits,
proceedings or investigations by or before any arbitrator or Governmental Authority pending against
or, to the knowledge of any Borrower, threatened against or affecting the Company 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 or (ii) that question the validity of this Agreement or the
Transactions. There are no labor controversies pending against or, to the knowledge of the
Company, threatened against or affecting the Company or any of its Subsidiaries (i) which could
reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect,
or (ii) that question the validity of this Agreement or the Transactions.

          (b) Except with respect to any matters that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect, neither the Company 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.

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          SECTION 3.07. Compliance with Laws. Each of the Company 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. Furthermore, the Dutch Borrower is in compliance
with the Dutch Financial Supervision Act.

          SECTION 3.08. Investment Company Status. Neither the Company 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 Company and its Subsidiaries has timely filed or
caused to be filed all Tax returns and related 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 Company 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.

          SECTION 3.11. Disclosure. The Company 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 Company or any Subsidiary 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 Borrowers represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

          SECTION 3.12. Federal Reserve Regulations. No part of the proceeds of any Loan have
been used or 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.

          SECTION 3.13. Liens. There are no Liens on any of the real or personal properties of
the Company or any Subsidiary except for Permitted Liens.

          SECTION 3.14. No Default. Each Borrower is in full compliance with this Agreement
and no Default or Event of Default has occurred and is continuing.

          SECTION 3.15. No Burdensome Restrictions. On the date hereof, no Borrower is subject
to any Burdensome Restrictions except Burdensome Restrictions permitted under Section 6.08.

          SECTION 3.16. Solvency.

          (a) Immediately after the consummation of the Transactions to occur on the Effective Date,
the Company and its Subsidiaries, taken as a whole, are and will be Solvent.

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          (b) The Company does not intend to, nor will it permit any of its Subsidiaries to, and the
Company does not believe that it or any of its Subsidiaries will, incur debts beyond its ability to
pay such debts as they mature, taking into account the timing of and amounts of cash to be received
by it or any such Subsidiary and the timing of the amounts of cash to be payable on or in respect
of its Indebtedness or the Indebtedness of any such Subsidiary.

          SECTION 3.17. Insurance. Except as qualified below, the Company maintains, and has
caused each Subsidiary to maintain, with financially sound and reputable insurance companies,
insurance on all their real and personal property in such amounts, subject to such deductibles and
self-insurance retentions and covering such properties and risks as are adequate and customarily
maintained by companies engaged in the same or similar businesses operating in the same or similar
locations. The Company and certain of its Subsidiaries are self-insured for general liability
coverage.

          SECTION 3.18. Security Interest in Collateral. The provisions of this Agreement and
the other Loan Documents create legal and valid Liens on all the Collateral in favor of the
Administrative Agent, for the benefit of the Holders of Secured Obligations, and provided that the
Administrative Agent does what is required to continue the perfection of such Liens under the UCC
or other applicable law, such Liens constitute perfected and continuing Liens on the Collateral,
securing the Secured Obligations, enforceable against the applicable Loan Party and all third
parties, and having priority over all other Liens on the Collateral except in the case of (a)
Permitted Liens, to the extent any such Permitted Liens would have priority over the Liens in favor
of the Administrative Agent pursuant to any applicable law or any Intercreditor Agreements and (b)
Liens perfected only by possession (including possession of any certificate of title) to the extent
the Administrative Agent has not obtained or does not maintain possession of such Collateral.

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 each of the following conditions is satisfied (or waived in accordance with Section 9.02):

     (a) The Administrative Agent (or its counsel) shall have received from (i) each party
hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B)
written evidence satisfactory to the Administrative Agent (which may include telecopy or
electronic transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement and (ii) duly executed copies of the Loan Documents
and such other legal opinions, certificates, documents, instruments and agreements as the
Administrative Agent shall reasonably request in connection with the Transactions, all in
form and substance satisfactory to the Administrative Agent and its counsel and as further
described in the list of closing documents attached as Exhibit E.

     (b) The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders, and dated the Effective Date) of (i)
Jones Day, U.S. counsel for the Loan Parties, substantially in the form of Exhibit
B-1, and (ii) BarentsKrans N.V., Dutch counsel for the Dutch Borrower, substantially in
the form of Exhibit B-2 and in each case covering such other matters relating to the Loan
Parties, the Loan Documents or the Transactions as the Administrative Agent shall reasonably
request. The Company hereby requests such counsel to deliver such opinions.

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     (c) The Administrative Agent shall have received such documents and certificates as
the Administrative Agent or its counsel may reasonably request relating to the organization,
existence and good standing of the initial Loan Parties, the authorization of the
Transactions and any other legal matters relating to such Loan Parties, the Loan Documents
or the Transactions, all in form and substance satisfactory to the Administrative Agent and
its counsel and as further described in the list of closing documents attached as
Exhibit E.

     (d) The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the President, a Vice President or a Financial Officer of the Company,
confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section
4.02, as further described in the list of closing documents attached as Exhibit E.

     (e) The Administrative Agent shall have received evidence satisfactory to it that the
Company’s asset-based credit facility currently in effect shall have been terminated and
cancelled and all indebtedness thereunder shall have been fully repaid (except to the extent
being so repaid with the initial Revolving Loans) and any and all liens thereunder shall
have been terminated, as further described in the list of closing documents attached as
Exhibit E.

     (f) The Administrative Agent shall have received evidence reasonably satisfactory to
it that all governmental and third party approvals necessary or, in the reasonable
discretion of the Administrative Agent, advisable in connection with the Transactions have
been obtained and are in full force and effect.

     (g) The Administrative Agent shall have received 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 Company
hereunder.

     (h) The Administrative Agent shall have received the results of a recent lien search
in each of the jurisdictions where the Loan Parties are organized, and such search shall
reveal no liens on any of the assets of the Loan Parties except for Permitted Liens or
discharged on or prior to the Effective Date pursuant to a pay-off letter or other
documentation satisfactory to the Administrative Agent, as further described in the list of
closing documents attached as Exhibit E.

     (i) The Administrative Agent shall have received (i) the certificates representing
the shares of Equity Interests pledged pursuant to the Security Agreement, together with an
undated stock power for each such certificate executed in blank by a duly authorized officer
of the pledgor thereof and (ii) each promissory note (if any) pledged to the Administrative
Agent pursuant to the Security Agreement endorsed (without recourse) in blank (or
accompanied by an executed transfer form in blank) by the pledgor thereof.

     (j) Each document (including any UCC financing statement) required by the Collateral
Documents or under law or reasonably requested by the Administrative Agent to be filed,
registered or recorded in order to create in favor of the Administrative Agent, for the
benefit of the Holders of Secured Obligations, a perfected Lien on the Collateral described
therein, prior and superior in right to any other Person (other than with respect to
Permitted Liens), shall be in proper form for filing, registration or recordation.

     (k) The Administrative Agent shall have received evidence of insurance coverage in
form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise
in

46

 

compliance with the terms of Section 5.05, as further described in the list of closing
documents attached as Exhibit E.

     (l) The Administrative Agent shall have received from the Dutch Borrower a
confirmation by an authorized signatory of the Dutch Borrower that there is no works council
with jurisdiction over the transactions as envisaged by any Loan Document to which it is a
party and that there is no obligation for the Dutch Borrower to establish a works council
pursuant to the Works Council Act (Wet op de Ondernemingraden), or, if a works council is
established, a confirmation that all consultation obligations in respect of such works
council have been complied with and that positive unconditional advice has been obtained,
attaching a copy of such advice and a copy of the request for such advice.

     (m) The Administrative Agent shall have received from the Company a written money
transfer instruction substantially in the form of Exhibit G hereto.

The Administrative Agent shall notify the Company and the Lenders of the Effective Date, and such
notice shall evidence the satisfaction (or waiver in accordance of Section 9.02) of all of the
conditions in this Section 4.01 and shall be conclusive and binding.

          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:

     (a) The representations and warranties of the Borrowers 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.

     (b) 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, no
Default shall have occurred and be continuing.

     (c) No law or regulation shall prohibit, and no order, judgment or decree of any
Governmental Authority shall enjoin, prohibit or restrain, any Lender from making the
requested Loan or the Issuing Bank or any Lender from issuing, renewing, extending or
increasing the face amount of or participating in the Letter of Credit requested to be
issued, renewed, extended or increased; provided that any of the forgoing shall only
affect or limit a requested Borrowing to the extent of such injunction, prohibition or
restraint.

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 Borrowers on the date thereof as to the
matters specified in paragraphs (a) and (b) of this Section.

          SECTION 4.03. Designation of a Foreign Subsidiary Borrower. The designation of a
Foreign Subsidiary Borrower pursuant to Section 2.23 is subject to the condition precedent that the
Company or such proposed Foreign Subsidiary Borrower shall have furnished or caused to be furnished
to the Administrative Agent:

     (a) Copies, certified by the Secretary or Assistant Secretary (or comparable officer)
of such Subsidiary, of its Board of Directors’ resolutions (and resolutions of other bodies,
if any are deemed necessary by counsel for the Administrative Agent) approving the Borrowing
Subsidiary Agreement and any other Loan Documents to which such Subsidiary is becoming a
party;

47

 

     (b) An incumbency certificate, executed by the Secretary or Assistant Secretary (or
comparable officer) of such Subsidiary, which shall identify by name and title and bear the
signature of the officers of such Subsidiary authorized to request Borrowings hereunder and
sign the Borrowing Subsidiary Agreement and the other Loan Documents to which such
Subsidiary is becoming a party, upon which certificate the Administrative Agent and the
Lenders shall be entitled to rely until informed of any change in writing by the Company or
such Subsidiary;

     (c) Opinions of counsel to such Subsidiary, in form and substance reasonably
satisfactory to the Administrative Agent and its counsel, with respect to the laws of its
jurisdiction of organization and such other matters as are reasonably requested by counsel
to the Administrative Agent and addressed to the Administrative Agent and the Lenders; and

     (d) Any promissory notes requested by any Lender, and any other instruments and
documents reasonably requested by the Administrative Agent.

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 Company
covenants and agrees with the Lenders that:

          SECTION 5.01. Financial Statements and Other Information. The Company will furnish
to the Administrative Agent for distribution to each Lender:

     (a) within ninety (90) days after the end of each Fiscal Year of the Company, 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 Ernst & Young
LLP 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 Company and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied (except as may be described as required by
paragraph (c)(iii) of this Section);

     (b) within forty-five (45) days after the end of each of the first three Fiscal
Quarters of each Fiscal Year of the Company, 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 Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end audit
adjustments, the absence of footnotes and any matters described as required by paragraph
(c)(iii) of this Section;

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     (c) concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of the Company (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 6.11 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;

     (d) concurrently with any delivery of financial statements under clause (a) above, a
certificate of the accounting firm that reported on such financial statements stating
whether they obtained knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent required by
accounting rules or guidelines);

     (e) as soon as available, but in any event not more than thirty (30) days prior to the
end of each Fiscal Year of the Company, a copy of the plan and forecast (including a
projected consolidated and consolidating balance sheet, income statement and funds flow
statement) of the Company for the upcoming Fiscal Year in form reasonably satisfactory to
the Administrative Agent; and

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

          SECTION 5.02. Notices of Material Events. The Company will furnish to the
Administrative Agent for distribution to each Lender prompt written notice of the following:

     (a) the occurrence of any Default;

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

     (c) 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 a Material Adverse
Effect; and

     (d) 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 Company 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 Company 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, qualifications, licenses, permits,
privileges, franchises, governmental authorizations and intellectual property rights material to
the conduct of its business, and maintain all requisite authority to conduct its business in each
jurisdiction in which its business is

49

 

conducted; provided that the foregoing shall not prohibit any merger, consolidation,
liquidation or dissolution permitted under Section 6.03.

          SECTION 5.04. Payment of Obligations. The Company 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
Company 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; Insurance. The Company will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted, and (b) maintain
with financially sound and reputable carriers (i) insurance in such amounts (with no greater risk
retention) and against such risks (including loss or damage by fire and loss in transit; theft,
burglary, pilferage, larceny, embezzlement, and other criminal activities; business interruption;
and general liability) and such other hazards, as is customarily maintained by companies engaged in
the same or similar businesses operating in the same or similar locations and (ii) all insurance
required pursuant to the Collateral Documents; provided, that the Company and its Subsidiaries
shall be entitled to self-insure for general liability in a manner consistent with historical
practices. The Company will furnish to the Administrative Agent, upon request, information in
reasonable detail as to the insurance so maintained. The Company shall deliver to the
Administrative Agent endorsements (x) to all “All Risk” physical damage insurance policies on all
of the Loan Parties’ tangible personal property and assets and business interruption insurance
policies naming the Administrative Agent as lender loss payee, and (y) to all general liability and
other liability policies naming the Administrative Agent an additional insured. In the event the
Company or any of its Subsidiaries at any time or times hereafter shall fail to obtain or maintain
any of the policies or insurance required herein or to pay any premium in whole or in part relating
thereto, then after notice to the Company and a reasonable time to cure, the Administrative Agent,
without waiving or releasing any obligations or resulting Default hereunder, may at any time or
times thereafter (but shall be under no obligation to do so) obtain and maintain such policies of
insurance and pay such premiums and take any other action with respect thereto which the
Administrative Agent deems reasonably advisable. All sums so disbursed by the Administrative Agent
shall constitute part of the Obligations, payable as provided in this Agreement. The Company will
furnish to the Administrative Agent and the Lenders prompt written notice of any casualty or other
insured damage to any material portion of the Collateral or the commencement of any action or
proceeding for the taking of any material portion of the Collateral or interest therein under power
of eminent domain or by condemnation or similar proceeding.

          SECTION 5.06. Books and Records; Inspection Rights. The Company 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 Company 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,
including environmental assessment reports and Phase I or Phase II studies commissioned previously
by the Company or any Subsidiary (it being understood that the Administrative Agent and Lenders
will not be entitled to conduct their own environmental studies with respect to the Company or any
of its Subsidiaries), 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. During
any inspection or examination, the Administrative Agent will make reasonable efforts to cause all
of its representatives to comply in all material respects with all health, safety and security
requirements of general application of the Company or applicable Subsidiary,

50

 

or otherwise applicable to the relevant location. The Company acknowledges that the
Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the
Lenders certain reports pertaining to the Company and its Subsidiaries’ assets for internal use by
the Administrative Agent and the Lenders.

          SECTION 5.07. Compliance with Laws and Material Contractual Obligations. The Company
will, and will cause each of its Subsidiaries to, (i) comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property (including without limitation
Environmental Laws) and (ii) perform in all material respects its obligations under material
agreements to which it is a party, in each case 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. The proceeds of the Loans will be used only to
finance the working capital needs, and for general corporate purposes, of the Company and its
Subsidiaries in the ordinary course of business. 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.

          SECTION 5.09. Subsidiary Guarantors; Pledges; Additional Collateral; Further
Assurances.

          (a) As promptly as possible but in any event within thirty (30) days (or such later date as
may be agreed upon by the Administrative Agent) after any Person becomes, or is designated by the
Company as, or qualifies independently as a Subsidiary Guarantor pursuant to the definitions of
“Material Subsidiary” and “Subsidiary Guarantor”, the Company shall provide the Administrative
Agent with written notice thereof setting forth information in reasonable detail describing the
material assets of such Person and shall cause each such Subsidiary which also qualifies as a
Subsidiary Guarantor to deliver to the Administrative Agent a joinder to the Subsidiary Guaranty
and the Security Agreement (in each case in the form contemplated thereby) pursuant to which such
Subsidiary agrees to be bound by the terms and provisions thereof, such Subsidiary Guaranty and the
Security Agreement to be accompanied by appropriate corporate resolutions, other corporate
documentation and legal opinions in form and substance reasonably satisfactory to the
Administrative Agent and its counsel.

          (b) The Company will cause, and will cause each other Loan Party to cause, all of its owned
property (whether real, personal, tangible, intangible, or mixed; provided that (x) real property
shall be limited to mining property and (y) such owned property shall exclude precious metal, any
and all inventory or work-in-process that contains precious metal and any proceeds of the foregoing
(collectively, “Precious Metal”)), to be subject at all times to first priority, perfected
Liens in favor of the Administrative Agent for the benefit of the Holders of Secured Obligations to
secure the Secured Obligations in accordance with the terms and conditions of the Collateral
Documents, subject in any case to Permitted Liens. Without limiting the generality of the
foregoing, the Company (i) will cause the Applicable Pledge Percentage of the issued and
outstanding Equity Interests of each Pledge Subsidiary directly owned by the Company or any other
Loan Party to be subject at all times to a first priority, perfected Lien in favor of the
Administrative Agent to secure the Secured Obligations in accordance with the terms and conditions
of the Collateral Documents or such other security documents as the Administrative Agent shall
reasonably request and (ii) will, and will cause each Subsidiary Guarantor to, deliver Mortgages
and Mortgage Instruments with respect to real mining Property owned by the Company or such
Guarantor to the extent, and within such time period as is, reasonably required by the
Administrative Agent. Notwithstanding the foregoing, (i) no such Mortgages and Mortgage
Instruments are required to be delivered hereunder until December 15, 2007 or such later date as
the Administrative Agent may agree in the exercise of its reasonable discretion with respect
thereto and (ii) no such pledge

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agreement in respect of the Equity Interests of a Foreign Subsidiary shall be required
hereunder (A) until December 15, 2007 or such later date as the Administrative Agent may agree in
the exercise of its reasonable discretion with respect thereto, and (B) to the extent the
Administrative Agent or its counsel determines that such pledge would not provide material credit
support for the benefit of the Holders of Secured Obligations pursuant to legally valid, binding
and enforceable pledge agreements.

          (c) Without limiting the foregoing, the Company will, and will cause each other Loan Party
to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such
documents, agreements and instruments, and will take or cause to be taken such further actions
(including the filing and recording of financing statements, fixture filings, mortgages, deeds of
trust and other documents and such other actions or deliveries of the type required by Section
4.01, as applicable), which may be required by law or which the Administrative Agent may, from time
to time, reasonably request to carry out the terms and conditions of this Agreement and the other
Loan Documents and to ensure perfection and priority of the Liens created or intended to be created
by the Collateral Documents, all at the expense of the Company.

          (d) If any assets (including any real mining property or improvements thereto or any interest
therein but excluding Precious Metal) are acquired by a Loan Party after the Effective Date (other
than assets constituting Collateral under the Security Agreement that become subject to the Lien in
favor of the Security Agreement upon acquisition thereof), the Company will notify the
Administrative Agent thereof, and, if requested by the Administrative Agent, the Company will cause
such assets to be subjected to a Lien securing the Secured Obligations and will take, and cause the
other Loan Parties to take, such actions as shall be necessary or reasonably requested by the
Administrative Agent to grant and perfect such Liens, including actions described in paragraph (c)
of this Section, all at the expense of the Company.

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 Company covenants and agrees
with the Lenders that:

          SECTION 6.01. Indebtedness. The Company will not, and will not permit any Subsidiary
to, create, incur, assume or permit to exist any Indebtedness, except:

     (a) the Secured Obligations;

     (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01
and extensions, renewals and replacements of any such Indebtedness with Indebtedness of a
similar type that does not increase the outstanding principal amount thereof;

     (c) Indebtedness of (i) any Loan Party to any other Loan Party, (ii) any Subsidiary to
any Loan Party and (iii) any Subsidiary that is not a Loan Party to any other Subsidiary
that is not a Loan Party;

52

 

     (d) Guarantees by (i) any Loan Party of Indebtedness of any other Loan Party, (ii) any
Subsidiary of Indebtedness of any Loan Party and (iii) any Subsidiary that is not a Loan
Party of Indebtedness of any other Subsidiary that is not a Loan Party;

     (e) Indebtedness of the Company or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capitalized 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 the
outstanding principal amount thereof; provided that the aggregate principal amount
of Indebtedness incurred in any Fiscal Year pursuant to this clause (e) shall not exceed
$25,000,000;

     (f) Contingent Obligations (i) by endorsement of instruments for deposit or collection
in the ordinary course of business, (ii) consisting of the reimbursement obligations in
respect of LC Disbursements hereunder, (iii) consisting of the Subsidiary Guaranty and
Guarantees of Indebtedness incurred for the benefit of any other Loan Party if the primary
obligation is expressly permitted elsewhere in this Section 6.01, and (iv) under the
Beryllium Contracts;

     (g) Indebtedness arising under Swap Agreements having a Net Mark-to-Market Exposure
not exceeding $50,000,000, which amount shall include the Swap Agreements in existence on
the Effective Date;

     (h) Indebtedness arising under Permitted Precious Metals Agreements in an aggregate
principal amount not to exceed $180,000,000; and

     (i) other unsecured Indebtedness in an amount not in excess of $50,000,000.

          SECTION 6.02. Liens. The Company will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any Collateral, except the following
(collectively, “Permitted Liens”):

     (a) Liens created pursuant to any Loan Document;

     (b) Liens arising in connection with Permitted Precious Metals Agreements subject to
the Intercreditor Agreement referenced in clause (a) of the definition of “Intercreditor
Agreements” to the extent applicable;

     (c) any Lien on any property or asset of the Company or any Subsidiary existing on the
date hereof and set forth in Schedule 6.02; provided that (i) such Lien
shall not apply to any other property or asset of the Company or any Subsidiary and (ii)
such Lien shall secure only those obligations which it secures on the date hereof and
extensions, renewals and replacements thereof that do not increase the outstanding principal
amount thereof;

     (d) any Lien existing on any property or asset prior to the acquisition thereof by the
Company or any Subsidiary or existing on any property or asset of any Person that becomes a
Subsidiary after the date hereof 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 Company 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

53

 

Subsidiary, as the case may be, and extensions, renewals and replacements thereof that
do not increase the outstanding principal amount thereof;

     (e) Liens on fixed or capital assets acquired, constructed or improved by the Company
or any Subsidiary; provided that (i) such security interests secure Indebtedness
permitted by clause (e) of Section 6.01, (ii) the Indebtedness secured thereby does not
exceed the cost of acquiring, constructing or improving such fixed or capital assets and
(iii) such security interests shall not apply to any other property or assets of the Company
or any Subsidiary;

     (f) Liens for taxes, fees, assessments, or other governmental charges or levies on the
Property of the Company or any Subsidiary if such Liens (a) shall not at the time be
delinquent or (b) subject to the provisions of Section 5.04, do not secure obligations in
excess of $10,000,000 and a stay of enforcement of such Lien is in effect;

     (g) Liens imposed by law, such as carrier’s, warehousemen’s, and mechanic’s Liens and
other similar Liens arising in the ordinary course of business which secure payment of
obligations not more than ten days past due or which are being contested in good faith by
appropriate proceedings diligently pursued and for which adequate reserves shall have been
provided on the Company or such Subsidiary’s books;

     (h) statutory Liens in favor of landlords of real Property leased by the Company or
any Subsidiary; provided that, the Company or such Subsidiary is current with
respect to payment of all rent and other material amounts due to such landlord under any
lease of such real Property;

     (i) Liens arising out of pledges or deposits under worker’s compensation laws,
unemployment insurance, old age pensions, or other social security or retirement benefits,
or similar legislation or to secure the performance of bids, tenders, or contracts (other
than for the repayment of Indebtedness) or to secure indemnity, performance, or other
similar bonds for the performance of bids, tenders, or contracts (other than for the
repayment of Indebtedness) or to secure statutory obligations (other than liens arising
under ERISA or Environmental Laws) or surety or appeal bonds, or to secure indemnity,
performance, or other similar bonds;

     (j) utility easements, building restrictions, and such other encumbrances or charges
against real Property as are of a nature generally existing with respect to properties of a
similar character and which do not in any material way affect the marketability of such real
Property or interfere in any material respect with the use thereof in the business of the
Company or any Subsidiary;

     (k) the equivalent of the types of Liens discussed in clauses (f) through (j) above,
inclusive, in any jurisdiction in which the Company or any Subsidiary is engaged in business
or owns Property or assets;

     (l) Liens arising from judgments or orders under circumstances that do not constitute
an Event of Default under clause (k) of Article VII; and

     (m) other Liens not otherwise permitted above so long as the aggregate principal
amount of the obligations subject to such Liens does not at any time exceed $10,000,000.

          SECTION 6.03. Fundamental Changes and Asset Sales. (a) The Company 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

54

 

transaction or in a series of transactions) any of its assets, (including pursuant to a Sale
and Leaseback Transaction), or any of the Equity Interests of any of its Subsidiaries (in each
case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the
time thereof and immediately after giving effect thereto no Event of Default shall have occurred
and be continuing:

     (i) any Person may merge into the Company in a transaction in which the Company is the
surviving corporation;

     (ii) any Subsidiary may merge into a Loan Party in a transaction in which the
surviving entity is such Loan Party (provided that any such merger involving the Company
must result in the Company as the surviving entity) and any Subsidiary which is not a Loan
Party may merge into another Subsidiary which is not a Loan Party;

     (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to a
Loan Party and any Subsidiary which is not a Loan Party may sell, transfer, lease or
otherwise dispose of its assets to another Subsidiary which is not a Loan Party;

     (iv) the Company and its Subsidiaries may (A) sell inventory in the ordinary course of
business, (B) effect sales, trade-ins or dispositions of equipment that is obsolete or no
longer useful in any meaningful way in its business, (C) enter into licenses of technology
in the ordinary course of business, and (D) make any other sales, transfers, leases or
dispositions that, together with all other Property of the Company and its Subsidiaries
previously leased, sold or disposed of as permitted by this clause (D) during any Fiscal
Year of the Company, does not represent Property with a book value that (1) is greater than
10% of the Consolidated Total Assets of the Company or (2) is responsible for more than 10%
of the consolidated net sales or of the Consolidated Net Income of the Company, in each
case, as would be shown in the consolidated financial statements of the Company as at the
beginning of the four-quarter period ending with the quarter in which such determination is
made (or if financial statements have not been delivered hereunder for that quarter which
begins the four quarter period, then the financial statements delivered hereunder for the
quarter ending immediately prior to that quarter); and

     (v) any Subsidiary may liquidate or dissolve if the Company determines in good faith
that such liquidation or dissolution is in the best interests of the Company 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 6.04.

          (b) The Company will not, and will not permit any of its Subsidiaries to, engage to any
material extent in any business other than businesses of the type conducted by the Company and its
Subsidiaries on the date of execution of this Agreement and businesses reasonably related thereto.

          (c) The Company will not, nor will it permit any of its Subsidiaries to, change its Fiscal
Year from the basis in effect on the Effective Date.

          SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Company
will not, and will not permit any of its 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 other securities (including any option, warrant or
other right to acquire any of the foregoing) of, Guarantee any obligations of, or make or permit to
exist any Investment in, any other Person, or make any Acquisition, except:

55

 

          (a) Cash Equivalent Investments;

          (b) Investments in Subsidiaries existing as of the Effective Date and additional Investments
in Subsidiaries which are Loan Parties;

          (c) other Investments in existence on the Effective Date and described in Schedule
6.04;

          (d) Investments consisting of loans or advances made to employees of the Company or any
Subsidiary on an arms-length basis in the ordinary course of business consistent with past
practices for travel and entertainment expenses, and similar purposes up to a maximum of $50,000 to
any employee and up to a maximum of $250,000 in the aggregate at any one time outstanding;.

          (e) Investments comprised of notes payable, or stock or other securities issued by account
debtors to the Company or any Subsidiary pursuant to negotiated agreements with respect to
settlement of such account debtor’s accounts in the ordinary course of business, consistent with
past practices;

          (f) Investments made in connection with employee compensation arrangements, employee option
plans or deferred director compensation, all in a manner consistent with the Company’s historical
practices;

          (g) Acquisitions; provided, that, at the time of and immediately after giving effect
to any such Acquisition, (i) no Event of Default has occurred and is continuing or would arise
after giving effect thereto, (ii) such Acquisition is not a Hostile Acquisition, (iii) such Person
or division or line of business is engaged in the same or a similar line of business as the Company
and the Subsidiaries or business reasonably related thereto, (iv) all actions required to be taken
with respect to such acquired or newly formed Subsidiary under Section 5.09 shall have been taken,
(v) the Company and the Subsidiaries are in compliance, on a pro forma basis after giving effect to
such Acquisition (but without giving effect to any synergies or cost savings), with the covenants
contained in Section 6.11 recomputed as of the last day of the most recently ended Fiscal Quarter
of the Company for which financial statements are available, as if such Acquisition (and any
related incurrence or repayment of Indebtedness, with any new Indebtedness being deemed to be
amortized over the applicable testing period in accordance with its terms) had occurred on the
first day of each relevant period for testing such compliance and, if the aggregate consideration
paid in respect of such Acquisition exceeds $25,000,000, the Company shall have delivered to the
Administrative Agent a certificate of a Financial Officer of the Company to such effect, together
with all relevant financial information, statements and projections reasonably requested by the
Administrative Agent, (vi) in the case of an Acquisition or merger involving the Company or a
Subsidiary, the Company or such Subsidiary is the surviving entity of such merger and/or
consolidation and (vii) the aggregate cash consideration paid in respect of such Acquisition, when
taken together with the aggregate cash consideration paid in respect of all other Acquisitions,
does not exceed $50,000,000 during any Fiscal Year of the Company; provided,
however, that the foregoing $50,000,000 aggregate limitation for Acquisitions shall not
apply as long as the Leverage Ratio does not exceed 2.50 to 1.00 immediately prior to and
immediately after giving effect to any such Acquisition;

          (h) Investments under Permitted Precious Metal Agreements;

          (i) other Investments in non-Loan Party Subsidiaries (other than non-Loan Party Subsidiaries
of the Dutch Borrower) in an amount not to exceed $20,000,000 at any time; and

          (j) other Investments not to exceed $50,000,000 at any time outstanding.

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          SECTION 6.05. Swap Agreements. The Company will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Company or any Subsidiary has actual exposure (other than those in
respect of Equity Interests of the Company 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 Company or any Subsidiary.

          SECTION 6.06. Transactions with Affiliates. The Company will not, and will not
permit any of its Subsidiaries 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) in the ordinary course of business at prices
and on terms and conditions not less favorable to the Company or such Subsidiary than could be
obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among
the Company and its wholly owned Subsidiaries not involving any other Affiliate and (c) any
Restricted Payment permitted by Section 6.07.

          SECTION 6.07. Restricted Payments. The Company will not, and will not permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except (a) the Company may declare and pay dividends with respect to its Equity
Interests payable solely in additional shares of its common stock, (b) Subsidiaries may declare and
pay dividends ratably with respect to their Equity Interests, (c) the Company may make Restricted
Payments pursuant to and in accordance with stock option plans or other benefit plans for
management or employees of the Company and its Subsidiaries and (d) the Company and its
Subsidiaries may make any other Restricted Payment so long as no Default or Event of Default has
occurred and is continuing prior to making such Restricted Payment or would arise after giving
effect (including pro forma effect) thereto and the aggregate amount of such Restricted Payments
does not exceed 10% of Consolidated Net Worth as of the most recently ended Fiscal Quarter of the
Company for which Financials have been delivered; provided, that the foregoing aggregate
limitation for Restricted Payments shall not apply as long as the Leverage Ratio does not exceed
2.50 to 1.00 immediately prior to and immediately after giving effect to any such Restricted
Payment.

          SECTION 6.08. Restrictive Agreements. The Company will not, and will not permit any
of its 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
Company or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect
to holders of its Equity Interests or to make or repay loans or advances to the Company or any
other Subsidiary or to Guarantee Indebtedness of the Company or any other Subsidiary;
provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
law or by any Loan Document, (ii) 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, (iii) the foregoing shall not apply to restrictions and
conditions set forth in any Permitted Precious Metals Agreement that is subject to the
Intercreditor Agreement referenced in clause (a) of the definition of “Intercreditor Agreements”,
(iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any
agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness and (v) clause (a) of
the foregoing shall not apply to customary provisions in leases and other contracts restricting the
assignment thereof.

          SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness
Documents. The Company will not, and will not permit any Subsidiary to, directly or

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indirectly voluntarily prepay, defease or in substance defease, purchase, redeem, retire or
otherwise acquire, any Subordinated Indebtedness or any Indebtedness from time to time outstanding
under the Subordinated Indebtedness Documents. Furthermore, the Company will not, and will not
permit any Subsidiary to, amend the Subordinated Indebtedness Documents or any document, agreement
or instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness
Documents (or any replacements, substitutions, extensions or renewals thereof) or pursuant to which
such Indebtedness is issued where such amendment, modification or supplement provides for the
following or which has any of the following effects:

     (a) increases the overall principal amount of any such Indebtedness or increases the
amount of any single scheduled installment of principal or interest;

     (b) shortens or accelerates the date upon which any installment of principal or
interest becomes due or adds any additional mandatory redemption provisions;

     (c) shortens the final maturity date of such Indebtedness or otherwise accelerates the
amortization schedule with respect to such Indebtedness;

     (d) increases the rate of interest accruing on such Indebtedness;

     (e) provides for the payment of additional fees or increases existing fees;

     (f) amends or modifies any financial or negative covenant (or covenant which prohibits
or restricts the Company or any Subsidiary from taking certain actions) in a manner which is
more onerous or more restrictive in any material respect to the Company or such Subsidiary
or which is otherwise materially adverse to the Company, any Subsidiary and/or the Lenders
or, in the case of any such covenant, which places material additional restrictions on the
Company or such Subsidiary or which requires the Company or such Subsidiary to comply with
more restrictive financial ratios or which requires the Company to better its financial
performance, in each case from that set forth in the existing applicable covenants in the
Subordinated Indebtedness Documents or the applicable covenants in this Agreement; or

     (g) amends, modifies or adds any affirmative covenant in a manner which (i) when taken
as a whole, is materially adverse to the Company, any Subsidiary and/or the Lenders or (ii)
is more onerous than the existing applicable covenant in the Subordinated Indebtedness
Documents or the applicable covenant in this Agreement.

          SECTION 6.10. Sale and Leaseback Transactions. The Company shall not, nor shall it
permit any Subsidiary to, enter into any Sale and Leaseback Transaction.

          SECTION 6.11. Financial Covenants.

          (a) Maximum Leverage Ratio. The Company will not permit the Leverage Ratio,
determined as of the end of each of its Fiscal Quarters for the then most-recently ended four
Fiscal Quarters, to be greater than 3.50 to 1.00.

          (b) Minimum Fixed Charge Coverage Ratio. The Company will not permit the Fixed
Charge Coverage Ratio, determined as of the end of each of its Fiscal Quarters for the then
most-recently ended four Fiscal Quarters, to be less than 1.50 to 1.00.

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ARTICLE VII

Events of Default

          If any of the following events (“Events of Default”) shall occur:

          (a) any 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) any 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 three (3) Business Days;

          (c) any representation or warranty made or deemed made by or on behalf of any Loan Party in
or in connection with this Agreement or any other Loan Document or any amendment or modification
hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial
statement or other document furnished pursuant to or in connection with this Agreement or any other
Loan Document or any amendment or modification thereof or waiver thereunder, shall prove to have
been materially incorrect when made or deemed made;

          (d) the Company shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.02, 5.03 (with respect to any Borrower’s existence), 5.08 or 5.09 or in
Article VI or in Article X;

          (e) any Loan Party, as applicable, 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) or any other Loan Document, and such failure shall continue unremedied for a period
of thirty (30) days after notice thereof from the Administrative Agent to the Company (which notice
will be given at the request of any Lender);

          (f) the Company 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 Company or any other Loan
Party or its debts, or of a Substantial Portion 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 Company or any other Loan Party or for a Substantial Portion 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;

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          (i) the Company or any other Loan Party 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 Company or any other Loan Party or for a Substantial Portion 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 Company or any other Loan Party shall 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
$5,000,000 (or the equivalent thereof in currencies other than Dollars) shall be rendered against
the Company, any Subsidiary or any combination thereof and the same shall remain undischarged for a
period of thirty (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
Company 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 a Material Adverse Effect;

          (m) a Change in Control shall occur;

          (n) the occurrence of any “Default”, as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document (other than this
Agreement), which default or breach continues beyond any period of grace therein provided;

          (o) any material provision of any Loan Document for any reason ceases to be valid, binding
and enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability
of any Loan Document or shall assert in writing, or engage in any action or inaction based on any
such assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is
not valid, binding and enforceable in accordance with its terms); or

          (p) any Collateral Document shall for any reason fail to create a valid and perfected first
priority security interest in any portion of the Collateral purported to be covered thereby, except
as permitted by the terms of any Loan Document;

then, and in every such event (other than an event with respect to the Company 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
Company, 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 Borrowers 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 Borrowers; and in case of any event with respect to any
Borrower described in clause (h) or (i) of this Article, the Commitments shall

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automatically terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and all fees and other Secured Obligations accrued hereunder and under the other
Loan Documents, shall automatically become due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by the Borrowers. Upon the occurrence and
during the continuance of an Event of Default, the Administrative Agent may, and at the request of
the Required Lenders shall, exercise any rights and remedies provided to the Administrative Agent
under the Loan Documents or at law or equity, including all remedies provided under the UCC.

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, including
execution of the other Loan Documents, and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, 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 Company 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 in the Loan Documents. 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 by the Loan Documents 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 in the Loan Documents, 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 Company or any of its Subsidiaries that is communicated to or obtained by the bank
serving as 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 Company 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 any Loan
Document, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection with any Loan Document, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, (v) the satisfaction of any condition set forth in Article IV or elsewhere
in any Loan Document, other than to confirm receipt of items expressly required to be delivered to
the Administrative Agent or (vi) the creation, perfection or priority of Liens on the Collateral or
the existence of the Collateral.

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          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
Company), 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 Company. Upon any such resignation, the Required Lenders shall have the right
(with the consent of the Company, such consent not to be unreasonably withheld or delayed; provided
that no such consent shall be required if an Event of Default has occurred and is continuing) 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
New York, New York, 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 payable by any Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between such 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 other Loan Document or related agreement or any document furnished
hereunder or thereunder.

          None of the Lenders, if any, identified in this Agreement as a Co-Syndication Agent or
Co-Documentation Agent shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than those applicable to all Lenders as such. Without limiting the
foregoing, none of such Lenders shall have or be deemed to have a fiduciary relationship with any
Lender. Each Lender hereby makes the same acknowledgments with respect to the relevant Lenders in
their respective capacities as Co-Syndication Agents or Co-Documentation Agents, as applicable, as
it makes with respect to the Administrative Agent in the preceding paragraph.

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          Except with respect to the exercise of setoff rights of any Lender, in accordance with Section
9.08, the proceeds of which are applied in accordance with this Agreement, each Lender agrees that
it will not take any action, nor institute any actions or proceedings, against any Loan Party or
with respect to any Loan Document, without the prior written consent of the Required Lenders or, as
may be provided in this Agreement or the other Loan Documents, with the consent of the
Administrative Agent.

          The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or
omissions of, or (except as otherwise set forth herein in case of the Administrative Agent)
authorized to act for, any other Lender. The Administrative Agent shall have the exclusive right
on behalf of the Lenders to enforce the payment of the principal of and interest on any Loan after
the date such principal or interest has become due and payable pursuant to the terms of this
Agreement.

          In its capacity, the Administrative Agent is a “representative” of the Holders of Secured
Obligations within the meaning of the term “secured party” as defined in the UCC. Each Lender
authorizes the Administrative Agent to enter into each of the Collateral Documents to which it is a
party and to take all action contemplated by such documents. Each Lender agrees that no Holder of
Secured Obligations (other than the Administrative Agent) shall have the right individually to seek
to realize upon the security granted by any Collateral Document, it being understood and agreed
that such rights and remedies may be exercised solely by the Administrative Agent for the benefit
of the Holders of Secured Obligations upon the terms of the Collateral Documents. In the event
that any Collateral is hereafter pledged by any Person as collateral security for the Secured
Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney,
to execute and deliver on behalf of the Holders of Secured Obligations any Loan Documents necessary
or appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent
on behalf of the Holders of Secured Obligations. The Lenders hereby authorize the Administrative
Agent, at its option and in its discretion, to release any Lien granted to or held by the
Administrative Agent upon any Collateral (i) as described in Section 9.02(c); (ii) as permitted by,
but only in accordance with, the terms of the applicable Loan Document; or (iii) if approved,
authorized or ratified in writing by the Required Lenders, unless such release is required to be
approved by all of the Lenders hereunder. Upon request by the Administrative Agent at any time,
the Lenders will confirm in writing the Administrative Agent’s authority to release particular
types or items of Collateral pursuant hereto. Upon any sale or transfer of assets constituting
Collateral which is permitted pursuant to the terms of any Loan Document, or consented to in
writing by the Required Lenders or all of the Lenders, as applicable, and upon at least five
Business Days’ prior written request by the Company to the Administrative Agent shall (and is
hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to
evidence the release of the Liens granted to the Administrative Agent for the benefit of the
Holders of Secured Obligations herein or pursuant hereto upon the Collateral that was sold or
transferred; provided, however, that (i) the Administrative Agent shall not be
required to execute any such document on terms which, in the Administrative Agent’s reasonable
opinion, would expose the Administrative Agent to liability or create any obligation or entail any
consequence other than the release of such Liens without recourse or warranty, and (ii) such
release shall not in any manner discharge, affect or impair the Secured Obligations or any Liens
upon (or obligations of the Loan Parties in respect of) all interests retained by any Loan Party,
including (without limitation) the proceeds of the sale, all of which shall continue to constitute
part of the Collateral.

          Each Borrower, on its behalf and on behalf of its Subsidiaries, and each Lender, on its behalf
and on the behalf of its affiliated Holders of Secured Obligations, hereby irrevocably constitute
the Administrative Agent as the holder of an irrevocable power of attorney (fondé de pouvoir within
the meaning of Article 2692 of the Civil Code of Québec) in order to hold hypothecs and security
granted by each Borrower or any Subsidiary on property pursuant to the laws of the Province of
Quebec to secure obligations of any Borrower or any Subsidiary under any bond, debenture or similar
title of indebtedness issued by any Borrower or any Subsidiary in connection with this Agreement,
and agree that the

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Administrative Agent may act as the bondholder and mandatary with respect to any bond,
debenture or similar title of indebtedness that may be issued by any Borrower or any Subsidiary and
pledged in favor of the Holders of Secured Obligations in connection with this Agreement.
Notwithstanding the provisions of Section 32 of the An Act respecting the special powers of legal
persons (Quebec), JPMorgan Chase Bank, National Association as Administrative Agent may acquire and
be the holder of any bond issued by any Borrower or any Subsidiary in connection with this
Agreement (i.e., the fondé de pouvoir may acquire and hold the first bond issued under any deed of
hypothec by any Borrower or any Subsidiary).

          The Administrative Agent is hereby authorized to execute and deliver any documents necessary
or appropriate to create and perfect the rights of pledge for the benefit of the Holders of Secured
Obligations including a right of pledge with respect to the entitlements to profits, the balance
left after winding up and the voting rights of the Company as ultimate parent of any Subsidiary
which is organized under the laws of the Netherlands and the Equity Interests of which are pledged
in connection herewith (a “Dutch Pledge”). Without prejudice to the provisions of this
Agreement and the other Loan Documents, the parties hereto acknowledge and agree with the creation
of parallel debt obligations of the Company or any relevant Subsidiary as will be described in any
Dutch Pledge (the “Parallel Debt”), including that any payment received by the
Administrative Agent in respect of the Parallel Debt will — conditionally upon such payment not
subsequently being avoided or reduced by virtue of any provisions or enactments relating to
bankruptcy, insolvency, preference, liquidation or similar laws of general application — be deemed
a satisfaction of a pro rata portion of the corresponding amounts of the Obligations, and any
payment to the Holders of Secured Obligations in satisfaction of the Obligations shall -
conditionally upon such payment not subsequently being avoided or reduced by virtue of any
provisions or enactments relating to bankruptcy, insolvency, preference, liquidation or similar
laws of general application — be deemed as satisfaction of the corresponding amount of the Parallel
Debt. The parties hereto acknowledge and agree that, for purposes of a Dutch Pledge, any
resignation by the Administrative Agent is not effective until its rights under the Parallel Debt
are assigned to the successor Administrative Agent.

          The Administrative Agent shall administer any Collateral Document which is governed by German
law and is a pledge (Pfandrecht) or otherwise transferred to any Holder of Secured
Obligations under an accessory security right (akzessorische Sicherheit) in the name and on
behalf of the Holders of Secured Obligations. In relation to any Collateral Document governed by
the laws of Germany, each party hereby authorizes the Administrative Agent to accept as its
representative any pledge or other creation of any accessory security right made to such party in
relation to this Agreement and to agree to and execute on its behalf as its representative
amendments, supplements and other alterations to any Collateral Document governed by the laws of
Germany which creates a pledge or any other accessory security right and to release on behalf of
such party any Collateral Document governed by the laws of Germany in accordance with the
provisions herein and/or the provisions in the relevant German law governed pledge agreement.

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, as follows:

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     (i) if to any Borrower, to it c/o Brush Engineered Materials Inc., 17876 St. Clair
Avenue, Cleveland, Ohio 44110, Attention of Michael C. Hasychak (Telecopy No. (216)
481-2523; Telephone No. (216) 383-6823);

     (ii) if to the Administrative Agent, to (A) in the case of Borrowings by the Company
denominated in Dollars, JPMorgan Chase Bank, National Association, JPMorgan Loan Services,
10 South Dearborn Street, 7th Floor, Chicago, Illinois 60603, Attention:
LaDesiree Williams (Facsimile No. (312) 732-4864) and (B) in the case of Borrowings by any
Foreign Subsidiary Borrower or denominated in Agreed Currencies other than Dollars, J.P.
Morgan Europe Limited, 125 London Wall, Floor 9, London EC2Y 5AJ, United Kingdom, Attention
of Mark Satchel (Telecopy No. 44 207 777 2360), and in each case with a copy to JPMorgan
Chase Bank, National Association, 1300 East Ninth Street, 13th Floor, Cleveland,
Ohio 44114, Attention: Maribeth Echan (Facsimile No. (216) 781-2271);

     (iii) if to the Issuing Bank, to it at JPMorgan Chase Bank, National Association,
JPMorgan Loan Services, 10 South Dearborn Street, 7th Floor, Chicago, Illinois
60603, Attention: LaDesiree Williams (Facsimile No. (312) 732-4864);

     (iv) if to the Swingline Lender, to it at JPMorgan Chase Bank, National Association,
JPMorgan Loan Services, 10 South Dearborn Street, 7th Floor, Chicago, Illinois
60603, Attention: LaDesiree Williams (Facsimile No. (312) 732-4864); and

     (v) 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 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 Company may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

          (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. (a) No failure or delay by the Administrative
Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other
Loan Document 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 and
under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of any Loan Document or consent to any
departure by any Loan Party therefrom 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

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Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default at the time.

          (b) Except as provided in Section 2.20 with respect to an Incremental Term Loan Amendment,
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 Borrowers and the Required Lenders or
by the Borrowers 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 directly 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 directly affected
thereby, (iv) change Section 2.18(b) or (d) in a manner that would alter the pro rata sharing of
payments required thereby, without the written consent of each Lender, (v) 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 (it being understood that, solely with the consent of the parties prescribed by Section
2.20 to be parties to an Incremental Term Loan Amendment, Incremental Term Loans may be included in
the determination of Required Lenders on substantially the same basis as the Commitments and the
Revolving Loans are included on the Effective Date), (vi) release the Company or all or
substantially all of the Subsidiary Guarantors from their obligations under Article X or the
Subsidiary Guaranty, or (vii) except as provided in clause (d) of this Section or in any Collateral
Document, release all or substantially all of the Collateral, 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 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 the foregoing, this Agreement and any other Loan Document may be amended
(or amended and restated) with the written consent of the Required Lenders, the Administrative
Agent and each Borrower to each relevant Loan Document (x) to add Incremental Term Loans to share
ratably in the benefits of this Agreement and the other Loan Documents with the Revolving Loans and
the accrued interest and fees in respect thereof and (y) to include appropriately the Lenders
holding such Incremental Term Loans in any determination of the Required Lenders and Lenders.

          (d) The Lenders hereby irrevocably authorize the Administrative Agent, at its option and in
its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties
on any Collateral (i) upon the termination of all the Commitments, payment and satisfaction in full
in cash of all Secured Obligations (other than Unliquidated Obligations), and the cash
collateralization of all Unliquidated Obligations in a manner satisfactory to the Administrative
Agent, (ii) constituting property being sold or disposed of if the Company certifies to the
Administrative Agent that the sale or disposition is made in compliance with the terms of this
Agreement (and the Administrative Agent may rely conclusively on any such certificate, without
further inquiry), (iii) constituting property leased to the Company or any Subsidiary under a lease
which has expired or been terminated in a transaction permitted under this Agreement, or (iv) as
required to effect any sale or other disposition of such Collateral in connection with any exercise
of remedies of the Administrative Agent and the Lenders pursuant to Article VII. Any such release
shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those
expressly being released) upon (or obligations of the Loan Parties in respect of) all

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interests retained by the Loan Parties, including the proceeds of any sale, all of which shall
continue to constitute part of the Collateral.

          (e) If, in connection with any proposed amendment, waiver or consent requiring the consent
of “each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is
obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent
is necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then
the Company may elect to replace a Non-Consenting Lender as a Lender party to this Agreement;
provided that, concurrently with such replacement, (i) another bank or other entity which
is reasonably satisfactory to the Company and the Administrative Agent shall agree, as of such
date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender
pursuant to an Assignment and Assumption and to become a Lender for all purposes under this
Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such
date and to comply with the requirements of clause (b) of Section 9.04, and (ii) each Borrower
shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all
interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by such
Borrower hereunder to and including the date of termination, including without limitation payments
due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to
the payment which would have been due to such Lender on the day of such replacement under Section
2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the
replacement Lender.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Company 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 and distribution (including, without limitation, via the
internet or through a service such as Intralinks) of the credit facilities provided for herein, the
preparation and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable 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 and
any other Loan Document, including its rights under this Section, or in connection with the Loans
made or Letters of Credit issued hereunder, including all such reasonable out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of
Credit.

          (b) The Company 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 reasonable 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 any Loan Document or any
agreement or instrument contemplated thereby, the performance by the parties hereto of their
respective obligations thereunder 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 therefrom
(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 Company or any of its Subsidiaries, or any
Environmental Liability related in any way to the Company or any of its Subsidiaries,

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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, 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 Company fails to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, 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
(it being understood that the Company’s failure to pay any such amount shall not relieve the
Company of any default in the payment thereof); 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.

          (d) To the extent permitted by applicable law, no Borrower shall assert, and each Borrower
hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, 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 not later than fifteen (15) days
after written demand therefor.

          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) no Borrower may 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 any 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.

     (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 Company; provided that no consent of the Company shall be
required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund
or, if an Event of Default has occurred and is continuing, any other assignee;

     (B) the Administrative Agent; and

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     (C) the Issuing Bank.

     (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 Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, 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 Company
and the Administrative Agent otherwise consent; provided that no such
consent of the Company shall be required if an Event of Default 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;
provided that this clause shall not be construed to prohibit the assignment
of a proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans;

     (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;

     (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and

     (E) other than assignments to an existing Lender, assignments shall always be
in an amount exceeding €50.000 or the equivalent thereof in a foreign currency.

          For the purposes of this Section 9.04(b), the term “Approved Fund” means any Person
(other than a natural person) that is engaged in making, purchasing, holding or investing in bank
loans and similar extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender.

          (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
Sections 2.15, 2.16, 2.17 and 9.03). 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 each 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

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from time to time (the “Register”). The entries in the Register shall be conclusive,
and the Borrowers, 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 Company, 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), 2.06(d) or (e), 2.07(b), 2.18(d) or 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 Company, 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 Borrowers, 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 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, each Borrower agrees that each Participant shall be entitled
to the benefits of Sections 2.15, 2.16 and 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
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 Company’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.17 unless the Company is notified
of the participation sold to such Participant and such Participant agrees, for the benefit of the
Company, 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

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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 Loan Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents 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 or any other Loan Document 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 Sections 2.15, 2.16, 2.17 and 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 other Loan
Document or any provision hereof or thereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Loan Documents and any separate letter agreements with respect
to fees payable to the Administrative 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 any Loan Document 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 thereof; 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 and in whatever currency denominated) 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 any Borrower or any Subsidiary Guarantor against any of and all the Secured
Obligations held by such Lender, irrespective of whether or not such Lender shall have made any
demand under the Loan Documents 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.

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          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 New York.

          (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in
New York County and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, 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 New York 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 or any other Loan
Document 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 or any other Loan
Document against any Loan Party or its properties in the courts of any jurisdiction.

          (c) Each Borrower 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 or any other
Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by 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. Each Foreign Subsidiary Borrower irrevocably designates and
appoints the Company, as its authorized agent, to accept and acknowledge on its behalf, service of
any and all process which may be served in any suit, action or proceeding of the nature referred to
in Section 9.09(b) in any federal or New York State court sitting in New York City. The Company
hereby represents, warrants and confirms that the Company has agreed to accept such appointment
(and any similar appointment by a Subsidiary Guarantor which is a Foreign Subsidiary). Said
designation and appointment shall be irrevocable by each such Foreign Subsidiary Borrower until all
Loans, all reimbursement obligations, interest thereon and all other amounts payable by such
Foreign Subsidiary Borrower hereunder and under the other Loan Documents shall have been paid in
full in accordance with the provisions hereof and thereof and such Foreign Subsidiary Borrower
shall have been terminated as a Borrower hereunder pursuant to Section 2.23. Each Foreign
Subsidiary Borrower hereby consents to process being served in any suit, action or proceeding of
the nature referred to in Section 9.09(b) in any federal or New York State court sitting in New
York City by service of process upon the Company as provided in this Section 9.09(d);
provided that, to the extent lawful and possible, notice of said service upon such agent
shall be mailed by registered or certified air mail, postage prepaid, return receipt requested, to
the Company and (if applicable to) such Foreign Subsidiary Borrower at its address set forth in the
Borrowing Subsidiary Agreement to which it is a party or to any other address of which such Foreign
Subsidiary Borrower shall have given written notice to the Administrative Agent (with a copy
thereof to the Company). Each Foreign Subsidiary Borrower irrevocably waives, to the fullest
extent permitted by law, all claim of error by reason of any such service in such manner and agrees
that such service shall be deemed in every respect effective service of process upon such Foreign
Subsidiary Borrower in any such suit, action or proceeding and shall, to the fullest extent
permitted by law, be taken and held to be valid and personal service upon and personal delivery to
such Foreign Subsidiary Borrower. To the extent any Foreign Subsidiary Borrower 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 Foreign

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Subsidiary Borrower hereby irrevocably waives such immunity in respect of its obligations
under the Loan Documents. Nothing in this Agreement or any other Loan Document 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, ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER 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), and that the disclosing
Administrative Agent, Issuing Bank or Lender will be responsible for any unauthorized disclosure by
any of its foregoing affiliated Persons), (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 any other Loan
Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to any Borrower and its obligations, (g) with the consent of the
Company 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 Company. For the purposes of
this Section, “Information” means all information received from the Company or any
Subsidiary relating to the Company, any of its Subsidiaries or its 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 Company. 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. 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
“Act”) hereby notifies each Borrower that pursuant to the requirements of the Act, it is
required to obtain, verify and record information that identifies such Borrower, which information
includes the name and address of

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such Borrower and other information that will allow such Lender to identify such Borrower in
accordance with the Act.

          SECTION 9.14. Appointment for Perfection. Each Lender hereby appoints each other
Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative
Agent and the Holders of Secured Obligations, in assets which, in accordance with Article 9 of the
UCC or any other applicable law can be perfected only by possession. Should any Lender (other than
the Administrative Agent) obtain possession of any such Collateral, such Lender shall notify the
Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall
deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in
accordance with the Administrative Agent’s instructions.

ARTICLE X

Cross-Guarantee

          In order to induce the Lenders to extend credit to the other Borrowers hereunder, but subject
to the last sentence of this Article X, each Borrower hereby irrevocably and unconditionally
guarantees, as a primary obligor and not merely as a surety, the payment when and as due of the
Obligations of such other Borrowers. Each Borrower further agrees that the due and punctual
payment of such Obligations may be extended or renewed, in whole or in part, without notice to or
further assent from it, and that it will remain bound upon its guarantee hereunder notwithstanding
any such extension or renewal of any such Obligation.

          Each Borrower waives presentment to, demand of payment from and protest to any Borrower of any
of the Obligations, and also waives notice of acceptance of its obligations and notice of protest
for nonpayment. The obligations of each Borrower hereunder shall not be affected by (a) the
failure of the Administrative Agent, the Issuing Bank or any Lender to assert any claim or demand
or to enforce any right or remedy against any Borrower under the provisions of this Agreement, any
other Loan Document or otherwise; (b) any extension or renewal of any of the Obligations; (c) any
rescission, waiver, amendment or modification of, or release from, any of the terms or provisions
of this Agreement, or any other Loan Document or agreement; (d) any default, failure or delay,
willful or otherwise, in the performance of any of the Obligations; (e) the failure of the
Administrative Agent to take any steps to perfect and maintain any security interest in, or to
preserve any rights to, any security or collateral for the Obligations, if any; (f) any change in
the corporate, partnership or other existence, structure or ownership of any Borrower or any other
guarantor of any of the Obligations; (g) the enforceability or validity of the Obligations or any
part thereof or the genuineness, enforceability or validity of any agreement relating thereto or
with respect to any collateral securing the Obligations or any part thereof, or any other
invalidity or unenforceability relating to or against any Borrower or any other guarantor of any of
the Obligations, for any reason related to this Agreement, any Swap Agreement, any other Loan
Document, or any provision of applicable law, decree, order or regulation of any jurisdiction
purporting to prohibit the payment by such Borrower or any other guarantor of the Obligations, of
any of the Obligations or otherwise affecting any term of any of the Obligations; or (h) any other
act, omission or delay to do any other act which may or might in any manner or to any extent vary
the risk of such Borrower or otherwise operate as a discharge of a guarantor as a matter of law or
equity or which would impair or eliminate any right of such Borrower to subrogation.

          Each Borrower further agrees that its agreement hereunder constitutes a guarantee of payment
when due (whether or not any bankruptcy or similar proceeding shall have stayed the accrual or
collection of any of the Obligations or operated as a discharge thereof) and not merely of
collection, and waives any right to require that any resort be had by the Administrative Agent, the
Issuing Bank or any

74

 

Lender to any balance of any deposit account or credit on the books of the Administrative
Agent, the Issuing Bank or any Lender in favor of any Borrower or any other Person.

          The obligations of each Borrower hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason, and shall not be subject to any defense or set-off,
counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or
unenforceability of any of the Obligations, any impossibility in the performance of any of the
Obligations or otherwise.

          Each Borrower further agrees that its obligations hereunder shall continue to be effective or
be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation
is rescinded or must otherwise be restored by the Administrative Agent, the Issuing Bank or any
Lender upon the bankruptcy or reorganization of any Borrower or otherwise.

          In furtherance of the foregoing and not in limitation of any other right which the
Administrative Agent, the Issuing Bank or any Lender may have at law or in equity against any
Borrower by virtue hereof, upon the failure of any other Borrower to pay any Obligation when and as
the same shall become due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each Borrower hereby promises to and will, upon receipt of written demand by the
Administrative Agent, the Issuing Bank or any Lender, forthwith pay, or cause to be paid, to the
Administrative Agent, the Issuing Bank or any Lender in cash an amount equal to the unpaid
principal amount of such Obligations then due, together with accrued and unpaid interest thereon.
Each Borrower further agrees that if payment in respect of any Obligation shall be due in a
currency other than Dollars and/or at a place of payment other than New York, Chicago or any other
Eurocurrency Payment Office and if, by reason of any Change in Law, disruption of currency or
foreign exchange markets, war or civil disturbance or other event, payment of such Obligation in
such currency or at such place of payment shall be impossible or, in the reasonable judgment of the
Administrative Agent, the Issuing Bank or any Lender, disadvantageous to the Administrative Agent,
the Issuing Bank or any Lender in any material respect, then, at the election of the Administrative
Agent, such Borrower shall make payment of such Obligation in Dollars (based upon the applicable
Equivalent Amount in effect on the date of payment) and/or in New York, Chicago or such other
Eurocurrency Payment Office as is designated by the Administrative Agent and, as a separate and
independent obligation, shall indemnify the Administrative Agent, the Issuing Bank and any Lender
against any losses or reasonable out-of-pocket expenses that it shall sustain as a result of such
alternative payment.

          Upon payment by any Borrower of any sums as provided above, all rights of such Borrower
against any Borrower arising as a result thereof by way of right of subrogation or otherwise shall
in all respects be subordinated and junior in right of payment to the prior indefeasible payment in
full in cash of all the Obligations owed by such Borrower to the Administrative Agent, the Issuing
Bank and the Lenders.

          Nothing shall discharge or satisfy the liability of any Borrower hereunder except the full
performance and payment of the Obligations.

          Notwithstanding anything contained in this Article X to the contrary, no Foreign Subsidiary
Borrower which is and remains an Affected Foreign Subsidiary shall be liable hereunder for any of
the Loans made to, or any other Obligation incurred solely by or on behalf of, the Company or any
Subsidiary Guarantor which is a Domestic Subsidiary.

[Signature Pages Follow]

75

 

     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.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC., 

as the Company

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Treasurer and Secretary 	 
	 

	 	 	 	 	 
	 	WILLIAMS ADVANCED MATERIALS 

(NETHERLANDS) B.V., as the Dutch Borrower

 	 
	 	By:  	/s/ Cynthia H. Friedman
 	 
	 	 	Name:  	Cynthia H. Friedman 	 
	 	 	Title:  	Class A Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                         /s/ James P. Marrotte
 	 
	 	 	Name:  	James P. Marrotte 	 
	 	 	Title:  	Class A Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                         /s/ Bernard van Polanen, /s/ Barbara Visser
 	 
	 	 	Name:  	Bernard van Polansen, Barabara Visser 	 
	 	 	Title:  	Class B Director 	 
	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, individually as a Lender, as Swingline Lender,
as Issuing Bank and as Administrative Agent

 	 
	 	By:  	/s/ William P. McGreehan
 	 
	 	 	Name:  	William P. McGreehan 	 
	 	 	Title:  	Senior Vice President, Division Manager	 
	 
	 	 	[OTHER AGENTS AND LENDERS]EX-10-P

 

Exhibit 10-P

HUMAN RESOURCES MANAGEMENT AND ADMINISTRATION

MASTER SERVICES AGREEMENT

between

DANA CORPORATION

and

INTERNATIONAL BUSINESS MACHINES CORPORATION

Dated March 31, 2005

Amended and restated as of September 30, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 1. DEFINITIONS	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 2. TERM	 	 	2	 
	 

	 	 	2.1	 	 	Initial Term
	 	 	2	 
	 

	 	 	2.2	 	 	First Extension Period
	 	 	2	 
	 

	 	 	2.3	 	 	Second Extension Period
	 	 	2	 
	 

	 	 	2.4	 	 	Term
	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 3. SERVICES GENERALLY	 	 	2	 
	 

	 	 	3.1	 	 	Scope of Services
	 	 	2	 
	 

	 	 	3.2	 	 	Dana Group
	 	 	3	 
	 

	 	 	3.3	 	 	Right to Change Service Volumes; Variable Fees
	 	 	5	 
	 

	 	 	3.4	 	 	Governmental Approvals and Consents
	 	 	5	 
	 

	 	 	3.5	 	 	No Exclusivity; Insourcing
	 	 	5	 
	 

	 	 	3.6	 	 	Knowledge Sharing
	 	 	6	 
	 

	 	 	3.7	 	 	Compliance with Internal IT Standards
	 	 	6	 
	 

	 	 	3.8	 	 	Reports
	 	 	7	 
	 

	 	 	3.9	 	 	Procurement
	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 4. TRANSFORMATION SERVICES	 	 	7	 
	 

	 	 	4.1	 	 	Transformation Services
	 	 	7	 
	 

	 	 	4.2	 	 	Completion and Acceptance of Transformation Services
	 	 	7	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 5. PROJECTS AND NEW SERVICES	 	 	8	 
	 

	 	 	5.1	 	 	Existing Projects
	 	 	8	 
	 

	 	 	5.2	 	 	Projects
	 	 	8	 
	 

	 	 	5.3	 	 	New Services
	 	 	9	 
	 

	 	 	5.4	 	 	Third Party Services
	 	 	10	 
	 

	 	 	5.5	 	 	Cooperation
	 	 	10	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 6. SERVICE LEVELS	 	 	11	 
	 

	 	 	6.1	 	 	Service Levels
	 	 	11	 
	 

	 	 	6.2	 	 	New Service Levels
	 	 	11	 
	 

	 	 	6.3	 	 	Adjustment of Service Levels
	 	 	11	 
	 

	 	 	6.4	 	 	Measurement and Monitoring Tools
	 	 	12	 

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	 	 	6.5	 	 	Root-Cause Analysis
	 	 	13	 
	 

	 	 	6.6	 	 	Continuous Improvement and Best Practices
	 	 	13	 
	 

	 	 	6.7	 	 	Performance Credits
	 	 	13	 
	 

	 	 	6.8	 	 	Deliverable Credits
	 	 	14	 
	 

	 	 	6.9	 	 	Performance Information
	 	 	14	 
	 

	 	 	6.10	 	 	Customer Satisfaction Surveys
	 	 	14	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 7. TECHNOLOGY	 	 	14	 
	 

	 	 	7.1	 	 	Retained Systems and Retained Processes
	 	 	15	 
	 

	 	 	7.2	 	 	Process and Technology Evolution
	 	 	16	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 8. INTERNATIONAL SERVICES	 	 	17	 
	 

	 	 	8.1	 	 	Worldwide Agreement
	 	 	17	 
	 

	 	 	8.2	 	 	Assignment
	 	 	17	 
	 

	 	 	8.3	 	 	Local Country Agreements
	 	 	17	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 9. CONTRACT ADMINISTRATION 	 	 	17	 
	 

	 	 	9.1	 	 	Assigned Agreements
	 	 	18	 
	 

	 	 	9.2	 	 	Assigned Agreement Invoices
	 	 	18	 
	 

	 	 	9.3	 	 	Managed Agreements
	 	 	18	 
	 

	 	 	9.4	 	 	Managed Agreement Invoices
	 	 	18	 
	 

	 	 	9.5	 	 	Performance Under Managed Agreements
	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 10. SERVICE LOCATIONS	 	 	19	 
	 

	 	 	10.1	 	 	Service Locations
	 	 	19	 
	 

	 	 	10.2	 	 	Physical Safety and Security Procedures
	 	 	19	 
	 

	 	 	10.3	 	 	Information Security
	 	 	19	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 11. HUMAN RESOURCES	 	 	20	 
	 

	 	 	11.1	 	 	Human Resources
	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 12. PROJECT STAFF	 	 	20	 
	 

	 	 	12.1	 	 	Project Staff Matters
	 	 	20	 
	 

	 	 	12.2	 	 	Subcontractors
	 	 	21	 
	 

	 	 	12.3	 	 	Conduct of Project Staff
	 	 	21	 

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	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 13. CONTINUED PROVISION OF SERVICES	 	 	22	 
	 

	 	 	13.1	 	 	Disaster Recovery Plan
	 	 	22	 
	 

	 	 	13.2	 	 	Force Majeure
	 	 	22	 
	 

	 	 	13.3	 	 	Alternate Source
	 	 	23	 
	 

	 	 	13.4	 	 	No Payment for Unperformed Services
	 	 	23	 
	 

	 	 	13.5	 	 	Allocation of Resources
	 	 	23	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 14. DANA RESPONSIBILITIES	 	 	23	 
	 

	 	 	14.1	 	 	Dana Operational Responsibilities
	 	 	23	 
	 

	 	 	14.2	 	 	Dana Resources
	 	 	24	 
	 

	 	 	14.3	 	 	Management of Issues
	 	 	25	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 15. FEES AND PAYMENT	 	 	25	 
	 

	 	 	15.1	 	 	Fees
	 	 	25	 
	 

	 	 	15.2	 	 	Variable Fees
	 	 	25	 
	 

	 	 	15.3	 	 	Invoices
	 	 	26	 
	 

	 	 	15.4	 	 	INTENTIONALLY BLANK
	 	 	26	 
	 

	 	 	15.5	 	 	Refundable Items; Prepaid Expenses
	 	 	26	 
	 

	 	 	15.6	 	 	Adjustments to Fees
	 	 	26	 
	 

	 	 	15.7	 	 	Expenses
	 	 	26	 
	 

	 	 	15.8	 	 	Disputed Charges
	 	 	26	 
	 

	 	 	15.9	 	 	Rights of Set-Off
	 	 	27	 
	 

	 	 	15.10	 	 	Unused Credits
	 	 	27	 
	 

	 	 	15.11	 	 	Benchmarking
	 	 	27	 
	 

	 	 	15.12	 	 	Unforeseen Technology Improvements
	 	 	30	 
	 

	 	 	15.13	 	 	Gainsharing
	 	 	30	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 16. TAXES	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 17. AUDITS	 	 	31	 
	 

	 	 	17.1	 	 	Service Audits
	 	 	32	 
	 

	 	 	17.2	 	 	Fees Audits
	 	 	33	 
	 

	 	 	17.3	 	 	Service Provider Audits
	 	 	33	 
	 

	 	 	17.4	 	 	Record Retention
	 	 	33	 

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	 	 	17.5	 	 	Facilities
	 	 	33	 
	 

	 	 	17.6	 	 	General
	 	 	33	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 18. RELATIONSHIP MANAGEMENT	 	 	34	 
	 

	 	 	18.1	 	 	Governance Guidelines and Principles
	 	 	34	 
	 

	 	 	18.2	 	 	Responsibilities
	 	 	34	 
	 

	 	 	18.3	 	 	Dana Appointments
	 	 	34	 
	 

	 	 	18.4	 	 	Service Provider Appointments
	 	 	34	 
	 

	 	 	18.5	 	 	Role of Relationship Managers
	 	 	34	 
	 

	 	 	18.6	 	 	Senior Executives
	 	 	35	 
	 

	 	 	18.7	 	 	Escalation Procedure for Relationship Issues
	 	 	35	 
	 

	 	 	18.8	 	 	Executive Level Meeting
	 	 	35	 
	 

	 	 	18.9	 	 	Quarterly Budgeting
	 	 	35	 
	 

	 	 	18.10	 	 	Aligning Project Staff with Dana Objectives
	 	 	35	 
	 

	 	 	18.11	 	 	Continuity of Services
	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 19. CONTRACT MANAGEMENT	 	 	36	 
	 

	 	 	19.1	 	 	Policies and Procedures Manual
	 	 	36	 
	 

	 	 	19.2	 	 	Change Control Procedures
	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 20. PROPRIETARY RIGHTS	 	 	36	 
	 

	 	 	20.1	 	 	Dana Software and Dana Tools
	 	 	36	 
	 

	 	 	20.2	 	 	Service Provider Software and Tools
	 	 	37	 
	 

	 	 	20.3	 	 	Work Product
	 	 	38	 
	 

	 	 	20.4	 	 	Interface Information
	 	 	39	 
	 

	 	 	20.5	 	 	Residual Information
	 	 	39	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 21. DATA	 	 	39	 
	 

	 	 	21.1	 	 	Ownership of Dana Data
	 	 	39	 
	 

	 	 	21.2	 	 	Return of Data
	 	 	39	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 22. CONFIDENTIALITY	 	 	39	 
	 

	 	 	22.1	 	 	Use and Disclosure
	 	 	39	 
	 

	 	 	22.2	 	 	Required Disclosure
	 	 	40	 
	 

	 	 	22.3	 	 	Unauthorized Acts
	 	 	40	 

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	 	 	22.4	 	 	Return of Confidential Information
	 	 	40	 
	 

	 	 	22.5	 	 	Business Associate Agreement
	 	 	41	 
	 

	 	 	22.6	 	 	Data Protection Laws
	 	 	41	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 23. REPRESENTATIONS AND WARRANTIES	 	 	42	 
	 

	 	 	23.1	 	 	By Dana
	 	 	42	 
	 

	 	 	23.2	 	 	By Service Provider
	 	 	43	 
	 

	 	 	23.3	 	 	DISCLAIMER
	 	 	43	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 24. ADDITIONAL COVENANTS	 	 	44	 
	 

	 	 	24.1	 	 	By Dana
	 	 	44	 
	 

	 	 	24.2	 	 	By Service Provider
	 	 	45	 
	 

	 	 	24.3	 	 	Changes in Laws
	 	 	47	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 25. TERMINATION	 	 	47	 
	 

	 	 	25.1	 	 	Termination for Convenience
	 	 	47	 
	 

	 	 	25.2	 	 	Termination for Change in Control of Dana
	 	 	47	 
	 

	 	 	25.3	 	 	Termination for Change in Control of Service Provider
	 	 	47	 
	 

	 	 	25.4	 	 	Termination by Dana for Cause
	 	 	48	 
	 

	 	 	25.5	 	 	Termination for Failure to Complete Transformation
	 	 	48	 
	 

	 	 	25.6	 	 	Service Level Termination Event
	 	 	48	 
	 

	 	 	25.7	 	 	Termination for Failure to Provide Adequate Assurance of Due Performance
	 	 	48	 
	 

	 	 	25.8	 	 	Termination by Service Provider for Cause
	 	 	48	 
	 

	 	 	25.9	 	 	Termination for Insolvency Event
	 	 	49	 
	 

	 	 	25.10	 	 	Termination for Failure to Maintain Adequate Controls
	 	 	49	 
	 

	 	 	25.11	 	 	Other Terminations
	 	 	49	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 26. TERMINATION FEES	 	 	49	 
	 

	 	 	26.1	 	 	Termination Fees
	 	 	49	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 27. TERMINATION ASSISTANCE	 	 	49	 
	 

	 	 	27.1	 	 	Termination Assistance Services
	 	 	49	 
	 

	 	 	27.2	 	 	Exit Rights
	 	 	51	 
	 

	 	 	27.3	 	 	Right to Hire Project Staff
	 	 	52	 

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	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	27.4	 	 	Termination Assistance upon Change in Services Volumes or
Insourcing or Resourcing
	 	 	52	 
	 

	 	 	27.5	 	 	Injunctive Relief
	 	 	52	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 28. INDEMNITIES	 	 	52	 
	 

	 	 	28.1	 	 	Indemnities by Dana
	 	 	52	 
	 

	 	 	28.2	 	 	Indemnities by Service Provider
	 	 	54	 
	 

	 	 	28.3	 	 	Indemnification Procedures
	 	 	56	 
	 

	 	 	28.4	 	 	Injunctions Affecting Services
	 	 	57	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 29. DAMAGES	 	 	57	 
	 

	 	 	29.1	 	 	Direct Damages
	 	 	57	 
	 

	 	 	29.2	 	 	Consequential Damages
	 	 	57	 
	 

	 	 	29.3	 	 	Exceptions
	 	 	58	 
	 

	 	 	29.4	 	 	Interpretation of Cap
	 	 	59	 
	 

	 	 	29.5	 	 	Injunctive Relief
	 	 	59	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 30. INSURANCE	 	 	59	 
	 

	 	 	30.1	 	 	Insurance
	 	 	59	 
	 

	 	 	30.2	 	 	Period of Insurance
	 	 	60	 
	 

	 	 	30.3	 	 	Insurance Documentation
	 	 	61	 
	 

	 	 	30.4	 	 	Risk of Loss
	 	 	61	 
	 

	 	 	30.5	 	 	Deductibles or Self Insurance
	 	 	61	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 31. MISCELLANEOUS PROVISIONS	 	 	61	 
	 

	 	 	31.1	 	 	Assignment
	 	 	61	 
	 

	 	 	31.2	 	 	Notices
	 	 	61	 
	 

	 	 	31.3	 	 	Counterparts
	 	 	62	 
	 

	 	 	31.4	 	 	Relationship
	 	 	62	 
	 

	 	 	31.5	 	 	Consents, Approvals and Requests
	 	 	62	 
	 

	 	 	31.6	 	 	Waivers
	 	 	63	 
	 

	 	 	31.7	 	 	Remedies Cumulative
	 	 	63	 
	 

	 	 	31.8	 	 	Amendments
	 	 	63	 
	 

	 	 	31.9	 	 	Survival
	 	 	63	 

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	 	 	31.10	 	 	Third Party Beneficiaries
	 	 	63	 
	 

	 	 	31.11	 	 	Covenant of Further Assurances
	 	 	63	 
	 

	 	 	31.12	 	 	Negotiated Terms
	 	 	63	 
	 

	 	 	31.13	 	 	Export
	 	 	63	 
	 

	 	 	31.14	 	 	Non-Solicitation
	 	 	63	 
	 

	 	 	31.15	 	 	Conflict of Interest
	 	 	64	 
	 

	 	 	31.16	 	 	Publicity
	 	 	64	 
	 

	 	 	31.17	 	 	Liens
	 	 	64	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE 32. CONSTRUCTION	 	 	64	 
	 

	 	 	32.1	 	 	Background
	 	 	64	 
	 

	 	 	32.2	 	 	Incorporation and References
	 	 	64	 
	 

	 	 	32.3	 	 	Headings
	 	 	65	 
	 

	 	 	32.4	 	 	Severability
	 	 	65	 
	 

	 	 	32.5	 	 	Sole and Exclusive Venue
	 	 	65	 
	 

	 	 	32.6	 	 	Section 365(n)
	 	 	65	 
	 

	 	 	32.7	 	 	Governing Law
	 	 	65	 
	 

	 	 	32.8	 	 	Waiver of Jury Trial
	 	 	66	 
	 

	 	 	32.9	 	 	Entire Agreement
	 	 	66	 
	 

	 	 	32.10	 	 	Interpretation Consistent with Law; Conflicts
	 	 	66	 

-vii-

 

 

			
	***	 	indicates where a confidential portion has been omitted and filed separately with the Commission

SCHEDULES

	 	 	 
	Schedule 1

	 	— Definitions
	Schedule 2

	 	— Statement of Work
	Schedule 3

	 	— Transformation
	Schedule 4

	 	— Governance
	Schedule 5

	 	— Service Levels and Performance Credits
	Schedule 6

	 	— Fees
	Schedule 7

	 	— Reports
	Schedule 8

	 	— Dana Operational Responsibilities and Resources
	Schedule 9

	 	— Outline of Policies and Procedures Manual
	Schedule 10

	 	— Existing Projects
	Schedule 11

	 	— Approved Subcontractors
	Schedule 12

	 	— Service Locations
	Schedule 13

	 	— Form of Confidentiality Agreement
	Schedule 14

	 	— Dana Information Security Requirements
	Schedule 15

	 	— Dana Technology Standards
	Schedule 16

	 	— Software and Tools
	Schedule 17

	 	— Business Associate Agreement
	Schedule 18

	 	— Human Resources
	Schedule 19

	 	— Dana Policies and Procedures
	Schedule 20

	 	— Disaster Recovery and Business Continuity Requirements
	Schedule 21

	 	— Customer Satisfaction Surveys
	Schedule 22

	 	— Form of Work Order
	Schedule 23

	 	— Assigned Agreements and Managed Agreements
	Schedule 24

	 	— Benchmarkers

viii

 

*** indicates where a confidential portion has been omitted and filed separately with the Commission

HUMAN RESOURCES MANAGEMENT AND ADMINISTRATION

MASTER SERVICES AGREEMENT

     This Human Resources Management and Administration Master Services Agreement, dated March 31,
2005 (the “Effective Date”), is between Dana Corporation (“Dana”) and International Business
Machines Corporation (“Service Provider”).

     This Agreement has been amended and restated as of September 30, 2007 (the “Restatement
Date”), and all prior versions of the Agreement are superseded by, and integrated in, this version
of the Agreement.

     The Parties acknowledge that the changes to the Agreement set forth in the First Amendment to
the Human Resource Management and Administration Master Services Agreement Between Dana Corporation
and International Business Machines Corporation, dated as of November 23, 2005, the Second
Amendment to the Human Resource Management and Administration Master Services Agreement Between
Dana Corporation and International Business Machines Corporation, dated as of November 30, 2005,
and the Third Amendment to the Human Resource Management and Administration Master Services
Agreement Between Dana Corporation and International Business Machines Corporation, dated as of
December 5, 2005, have been incorporated into this amended and restated Agreement as of the
Restatement Date and shall have no further force and effect.

     The Parties further acknowledge that the changes to the Agreement set forth in the Fourth
Amendment to the Human Resource Management and Administration Master Services Agreement Between
Dana Corporation and International Business Machines Corporation, dated September 29, 2006, Change
1 to Fourth Amendment to the Human Resource Management and Administration Master Services Agreement
Between Dana Corporation and International Business Machines Corporation, dated March 14, 2007,
Omnibus Amendment to (1) The Human Resource Management and Administration Master Services Agreement
Between Dana Corporation and International Business Machines Corporation and (2) Certain Local
Country Agreements, dated December 22, 2006, and Change 1 to the Omnibus Amendment to (1) The Human
Resource Management and Administration Master Services Agreement Between Dana Corporation and
International Business Machines Corporation and (2) Certain Local Country Agreements, dated August
30, 2007, have also been incorporated into this amended and restated Agreement as of the
Restatement Date and shall have no further force and effect.

BACKGROUND

Dana issued a Request for Proposal seeking a service provider or service providers of human
resources management and administration services and conducted a competitive bid process for the
provision of such services.

Dana and Service Provider assert that the goals and objectives of this Agreement are to:

	 	(A)	 	provide first class human resource management and administration to Dana’s
current and former employees, managers and business partners;

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	 	(B)	 	deliver economic value to Dana through innovative, efficient and effective
service delivery;
	 
	 	(C)	 	achieve cost reductions with respect to Dana’s human resource operations
through process transformation and standardization;
	 
	 	(D)	 	provide human resource management and administration services that enable Dana
to attract, develop and retain best talent;
	 
	 	(E)	 	deliver services at a cost, for a price, and at a standard that is competitive
with other providers of human resource management and administration services in the
market;
	 
	 	(F)	 	provide service that is customer-focused and reflects Dana’s business
imperatives;
	 
	 	(G)	 	allow Dana to acquire services with flexibility that is consistent with Dana’s
changing business needs while minimizing the operational risk to which Dana and Service
Provider are exposed;
	 
	 	(H)	 	proactively work to reduce human resource management and administration costs
and increase efficiency; and
	 
	 	(I)	 	ensure a smooth, efficient and timely transition from Dana’s internal Human
Resources Department without materially disrupting Dana’s business operations.

Based on these goals and objectives, Dana has agreed to engage Service Provider, and Service
Provider has agreed to be engaged, as a provider of human resource management and administration
services to Dana.

Dana will acquire services from Service Provider and Service Provider will provide those services
on the terms set forth in this Agreement.

ARTICLE 1. DEFINITIONS

Capitalized terms used in this Agreement have the meanings set forth in Schedule 1 (Definitions).

ARTICLE 2. TERM

	2.1	 	Initial Term. The initial term of this Agreement (the “Initial Term”) will commence
on the Effective Date and, unless this Agreement is earlier terminated in accordance with its
terms or extended under Section 2.2, will expire at 11:59 p.m. Eastern Time on December 31,
2012 (the “Initial Agreement Expiration Date”).

	2.2	 	First Extension Period. Twelve months before the Initial Agreement Expiration Date,
Service Provider will present Dana with a written proposal setting forth terms and conditions
on which Service Provider proposes to continue providing the Services for an additional
period. If the Parties are unable to agree upon the terms and conditions for the 

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	 	 	renewal of this Agreement after the Initial Term, Dana may, by notifying Service Provider in writing no
later than 30 days before the Initial Agreement Expiration Date, elect to extend the
effectiveness of this Agreement, for a period of time designated by Dana that will not exceed
twelve months from the Initial Agreement Expiration Date (the “First Extension Period”), which
renewal will be at the then current terms and conditions, including pricing. If Dana does not
elect to extend this Agreement under this Section, then this Agreement will expire at the end
of the Initial Term.

	2.3	 	Second Extension Period. Six months before the end of the First Extension Period,
Service Provider will present Dana with a written proposal setting forth terms and conditions
on which Service Provider proposes to continue providing the Services for an additional
period. If the Parties are unable to agree upon the terms and conditions for the renewal of
this Agreement after the First Extension Period, Dana may, by notifying Service Provider in
writing no later than 30 days before the end of the First Extension Period, elect to extend
the effectiveness of this Agreement, for a period of time designated by Dana that will not
exceed twelve months from the end of the First Extension Period (such period, together with
the First Extension Period, the “Extension Periods”), which renewal will be at the then
current terms and conditions, including pricing. If Dana does not elect to extend this
Agreement under this Section, then this Agreement will expire at the end of the First
Extension Period.

	2.4	 	Term. The “Term” of this Agreement consists of the Initial Term and all Extension
Periods. The Termination Assistance Period may extend beyond the Term as set forth in Article
27.

ARTICLE 3. SERVICES GENERALLY

	3.1	 	Scope of Services. Service Provider will provide the following services to the Dana
Group Companies, as the Dana Group Companies may evolve during the Term and as such services
may be supplemented, enhanced, modified or replaced (collectively, the “Services”):

	 	(A)	 	the human resource management and administration services, functions and
responsibilities set forth in this Agreement, in Schedule 2 (Statement of Work), as
complemented by the Base Case defined therein, and in the other Schedules to this
Agreement;
	 
	 	(B)	 	services, functions and responsibilities reasonably related to the Services
identified in subsection (A) above and routinely performed by the Affected Employees
and any other Dana personnel and contractors who are transitioned to Service Provider,
displaced or whose functions were displaced as a result of this Agreement, even if not
specifically described in this Agreement;

	 	(C)	 	human resource management and administration services, functions and
responsibilities that are of a nature and type that, within a company in the automotive
industry, would ordinarily be performed by the organization or the 

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	 	 	 	part of the organization performing services similar to those specifically described in this
Agreement, even if not specifically described in this Agreement;

	 	(D)	 	Transformation Services;
	 
	 	(E)	 	services, functions and responsibilities identified in Work Orders adopted by
the Parties for Projects undertaken under this Agreement;
	 
	 	(F)	 	New Services upon Dana’s approval of Service Provider’s New Services Schedule;
	 
	 	(G)	 	Technology Evolution;
	 
	 	(H)	 	Termination Assistance Services; and
	 
	 	(I)	 	services, functions and responsibilities not specifically described in this
Agreement, the Schedules, any New Service Schedule or any Work Order, but that are
required for the proper performance and delivery, or are an inherent part, of the
services, functions or responsibilities specifically described in such documents.

	3.2	 	Dana Group.

	 	(A)	 	Service Provider will provide the Services to (1) Dana and any other member of
the Dana Group Companies designated by Dana, irrespective of Dana’s corporate structure
and (2) any New Entity as directed by Dana under subsection (B) of this Section.
Service Provider will provide the Services to such authorized users at the sites at
which such entities operate as of the Effective Date and any additional sites that Dana
may request during the Term. Fees for Services at any such new sites will be as set
forth in Schedule 6 (Fees), unless a material cost differential justifies specific
alternative rates or charges.
	 
	 	(B)	 	If as a result of a Restructure or otherwise an entity that is not a Dana Group
Company (a “New Entity”) is acquired by Dana or acquires or becomes responsible for
some of the business, assets, operations or management of a Dana Group Company, then,
at Dana’s discretion and in accordance with its directions, Service Provider will
provide the Services to the New Entity. In such directions, Dana may require Service
Provider to provide the Services to a New Entity under this Agreement or, provided that
the party to such separate agreement with Service Provider is a creditworthy entity,
under a separate agreement on the same terms. A party will be a creditworthy entity if
such party meets Service Provider’s then current generally applicable requirements for
outsourcing customer credit worthiness or if such party’s credit rating is
substantially comparable with or better than Dana’s credit rating as of the Effective
Date. If the Services are provided under a separate agreement, Dana will have no
obligation to pay, or
guarantee the payment of, any fees in relation to those Services provided to the New
Entity. The Services provided to the Dana Group Companies or any New Entity under a
separate agreement will be included in the calculation of actual 

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	 	 	 	service volumes, if
any, under this Agreement. For the avoidance of doubt, Dana has no obligation to
obtain Services from Service Provider with respect to any New Entity.

	 	(C)	 	If a Restructure includes the divestiture of an entity, a business unit or
assets of Dana, Service Provider will, at Dana’s request, for a period of up to 18
months from the effective date of such Restructure, continue to provide the Services to
such divested entity or business unit, or to the purchaser of such assets, at the
applicable Fees then in effect; provided that Dana or the entity, unit or purchaser
agrees to be responsible for the payment of such Fees. If Service Provider is requested
to continue to provide the Services pursuant the foregoing sentence, Service Provider
will, at Dana’s request, enter into good faith negotiations with such entity, unit or
purchaser with respect to an agreement regarding the payment of such Fees
	 
	 	(D)	 	Service Provider will, at no additional cost to Dana (to the extent such
assistance and information can be provided using the personnel resources Service
Provider is then using to provide the Services without adversely affecting its ability
to provide the Services and meet the Service Levels), provide to Dana all reasonable
assistance and information as may be necessary, in the opinion of Dana, where Dana
indicates that it is considering or intends a Restructure, including:

	 	(1)	 	responding promptly to requests for information relating to the
Services and Fees for the Services;
	 
	 	(2)	 	if requested by Dana, assisting in discussions with third
parties relating to any equipment, licenses or contracts relevant to the
proposed New Entity;
	 
	 	(3)	 	providing acquisition support (including assessments,
transition planning and migration support);
	 
	 	(4)	 	cooperating in good faith with Dana in relation to the
Restructure;
	 
	 	(5)	 	providing any Termination Assistance Services that may be
necessary in the circumstances in accordance with Article 27; and
	 
	 	(6)	 	such other assistance as may be necessary or reasonable at the
time.

	3.3	 	Right to Change Service Volumes; Variable Fees.

	 	(A)	 	During the Term and the Termination Assistance Period, Dana may from time to
time increase or decrease service volumes within the Services, including by adding or
removing members of the Dana Group Companies or locations, by giving Service Provider
ten days’ notice thereof. Such change in Services volumes will be handled in accordance
with the Additional Resource Charge and Reduced
Resource Charge methodology, and Minimum Revenue Commitment requirement as set forth
in Section 3.5(C) and Schedule 6 (Fees). Such notice provision does 

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	 	 	 	not apply to
ordinary fluctuations in service volumes in the normal course of business.

	 	(B)	 	To the extent that such increased or decreased service volumes are within the
Services and parameters associated with Variable Fees, then the Fees for such Services
will be adjusted in accordance with the Variable Fees defined in Schedule 6 (Fees).

	3.4	 	Governmental Approvals and Consents.

	 	(A)	 	Service Provider will, at its own expense, (1) obtain and maintain all Service
Provider Governmental Approvals, (2) obtain, maintain and comply all of the Service
Provider Consents and (3) adhere to Dana’s instructions in order to comply with the
Dana Consents.
	 
	 	(B)	 	Dana will, at its own expense, (1) obtain and maintain all Dana Governmental
Approvals and (2) obtain, maintain and comply with the Dana Consents.
	 
	 	(C)	 	Each Party will cooperate with the other Party, as requested, in the other
Party’s obtaining Governmental Approvals and Consents that such other Party is required
to obtain under this Section.

	3.5	 	No Exclusivity; Insourcing.

	 	(A)	 	Nothing in this Agreement requires Dana to purchase any of the Services from
Service Provider. Dana may obtain services similar to the Services from a third party
or third parties in Dana’s sole discretion or perform such Services internally subject
to the Minimum Revenue Commitment set forth in Section 3.5(C) and Schedule 6 (Fees).
	 
	 	(B)	 	Dana will not be obligated to obtain any of the Services from Service Provider
with respect to any additional entity or business unit, including an entity or business
unit acquired by Dana. However, Dana will have the option to direct Service Provider to
provide Services under and in accordance with the terms of this Agreement with respect
to any such additional entity or business unit and such Services will be chargeable in
accordance with Schedule 6 (Fees). If such additional entity or business unit has an
agreement with Service Provider for human resource management or administration
services at the time of such acquisition, Service Provider will not impose any
termination fees on Dana or such entity in connection with the termination of such
agreement but will add any remaining termination fees under such agreement to the
applicable years of Termination Fees under this Agreement.

	 	(C)	 	Upon at least 45 days’ notice to Service Provider, Dana may insource or obtain
from a third party any portion of the Services. No termination fee will be payable by
Dana in connection with any insourcing or resourcing under this subsection
provided such action does not reduce Service Provider’s anticipated revenue under
this Agreement below the Minimum Revenue Commitment defined in Schedule 6 

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	 	 	 	(Fees).
Upon Dana’s exercise of any of its rights under this subsection, the Fees will be
adjusted in accordance with Schedule 6 (Fees), based upon the scope of the Services
Dana will continue to receive thereafter. This subsection (C) does not apply to
changes in service volumes that are governed by Section 3.3. Furthermore, the notice
requirement of this subsection does not apply to changes in the Services during the
Termination Assistance Period.

	 	(D)	 	Service Provider will provide Dana with information related to the Services
that Dana reasonably requests during the Term to enable Dana to draft a request for
proposal relating to the Services and to provide due diligence information for
recipients of such request for proposal, even if Service Provider is not one of the
recipients of the request for proposal. This provision does not require Service
Provider to disclose or permit disclosure of any Service Provider Confidential
Information to any Service Provider Competitor.

	3.6	 	Knowledge Sharing. At least once every Contract Year, or on request upon at least 30
days’ prior notice from Dana, Service Provider will meet with representatives of Dana in order
to (A) explain how the Services are provided, (B) explain how the Service Provider Systems
work and should be operated and (C) provide such training and documentation as Dana may
require for Dana to (1) provide services that interact with or interface with the Services and
(2) understand and operate the Service Provider Systems and understand and provide the
Services after the expiration or termination of this Agreement.

	3.7	 	Compliance with Internal IT Standards. Service Provider will comply with Dana’s
information management technical architecture and product standards, as such may be modified
by Dana from time to time during the Term. Dana’s information management technical
architecture and product standards are, as of the Effective Date, as set forth in Schedule 15
(Dana Technology Standards). Dana remains responsible for promulgation, interpretation and
distribution of the Dana Technology Standards.

	3.8	 	Reports. Service Provider will provide to Dana, in a form acceptable to Dana, the
reports set forth in Schedule 7 (Reports), including appropriate and accurate asset inventory
capture and management reports.

	3.9	 	Procurement. At Dana’s request and in accordance with the Policies and Procedures
Manual, Service Provider will obtain on behalf of Dana equipment, software and services to be
used by Dana in connection with its receipt or use of the Services. Dana will pay to Service
Provider, or the third-party supplier, lessor or licensor, as applicable, the purchase price,
leasing fees or license fees, as applicable, due for such equipment, software or services.

ARTICLE 4.TRANSFORMATION SERVICES

	4.1	 	Transformation Services.

	 	(A)	 	Beginning on the Effective Date, Service Provider will perform all functions
and services (except those responsibilities designated as Dana responsibilities in
Schedule 3 (Transformation)) (the “Transformation Services”) necessary to 

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	 	 	 	accomplish
the migration of Dana’s human resource management and administration operations and
capabilities from Dana to Service Provider, and thereafter to undertake the
transformation of such human resource management and administration processes and
systems, as described in Schedule 3 (Transformation) (the “Transformation”).

	 	(B)	 	The Transformation will be implemented in staggered phases with overlapping
timeframes as to each of the Service function groups or geographic areas specified in
Schedule 3 (Transformation) (each group or area, a “Phased Service Component”). The
Transformation of each Phased Service Component will be completed on or before the date
set forth for each such Phased Service Component in Schedule 3 (Transformation) (each,
a “Transformation Date”). Dana will perform those responsibilities designated as Dana
responsibilities in Schedule 3 (Transformation) in accordance with the Transformation
Plan.
	 
	 	(C)	 	Service Provider will perform the Transformation Services in accordance with
Schedule 3 (Transformation) without causing a material disruption to Dana’s business.
	 
	 	(D)	 	Until the completion of the Transformation Services, each Party will update the
other Party regarding the status of the Transformation Services as often as may be
reasonably requested by such other Party, but in any event no less frequently than
weekly.

	4.2	 	Completion and Acceptance of Transformation Services.

	 	(A)	 	The Transformation of each Phased Service Component will not be complete until
Service Provider has successfully completed the Transformation Services applicable to
such Phased Service Component (in accordance with the process set forth in the
Transformation Plan) and acceptance takes place in accordance with this Section.
	 
	 	(B)	 	Subject to the Change Control Procedures, from time to time, Dana may postpone
the Transformation Date for one or more Phased Service Components or change the order
of implementation of the Phased Service Components. Any such Change requested by Dana
will not affect Dana’s right to Deliverable Credits or prejudice Dana’s right to seek
other remedies that have accrued as of the date of the Change request. At the time any
such Change is reviewed in accordance with the Change Control Procedures, the financial
impacts of the proposed Change will be reviewed and assessed as contemplated by the
Change Control Procedures.

	 	(C)	 	Upon successful completion of the Transformation as to each of the Phased
Service Components (i.e., the completion of the last milestone in the Transformation
Plan for such Phased Service Component), Service Provider will
convene a meeting with the Dana Relationship Manager in which the Service Provider
Relationship Manager will present in person to the Dana Relationship Manager notice
of successful completion of the Transformation as to such Phased 

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	 	 	 	Service Component
as specified in the Transformation Plan. Dana will, within 10 business days after
presentation of such notice, notify Service Provider whether it accepts or rejects
such Transformation Services as complete. If Dana does not notify Service Provider
within such 10-day period, the Transformation will be deemed complete as to such
Phased Service Component the day after such 10-business-day period has expired.

	 	(D)	 	If Service Provider has not successfully completed the Transformation of a
Phased Service Component by the Transformation Date specified therefor in the
Transformation Plan, without affecting Dana’s right to Deliverable Credits or
prejudicing Dana’s right to seek other remedies, Dana may:

	 	(1)	 	postpone the applicable Transformation Date, in which case (a)
Service Provider will submit a plan to Dana for Dana’s approval that sets forth
how and when Transformation of any incomplete parts of the Phased Service
Component will be completed and (b) once Dana has approved the plan, Service
Provider will execute such Transformation in accordance with the plan; or
	 
	 	(2)	 	notify Service Provider that Dana accepts the Transformation of
such Phased Service Component as complete.

ARTICLE 5. PROJECTS AND NEW SERVICES

	5.1	 	Existing Projects. Service Provider will perform each Project set forth in Schedule
10 (Existing Projects), completing all Project Milestones and providing all Deliverables in
accordance with the applicable Work Order. If the Fees for any such existing Project are based
on time and materials, then the Project rates set forth in Schedule 6 (Fees) will apply to
such Project.

	5.2	 	Projects. From time to time during the Term, Dana may engage Service Provider to
perform a Project in accordance with the Project work order set forth in Schedule 22 (Form of
Work Order). Service Provider will comply with Schedule 4 (Governance) and perform each
Project, complete all Project Milestones and provide all Deliverables in accordance with the
Work Order.

	5.3	 	New Services.

	 	(A)	 	From time to time during the Term, Dana may wish to add one or more ongoing New
Services (contrasted with Projects, which are non-recurring) to the scope of the
Services. Dana will provide Service Provider with a description of such New Service
setting forth the services, functions and responsibilities constituting the New
Service.
	 
	 	(B)	 	Service Provider will prepare a proposal to Dana setting forth:

	 	(1)	 	how it would perform the New Service;

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	 	(2)	 	the Fees for the New Service, including terms and conditions
regarding any Variable Fees;
	 
	 	(3)	 	when appropriate, a transition plan, including a schedule for
commencing the New Service;
	 
	 	(4)	 	New Service Levels and Performance Credits (unless Service
Provider demonstrates to Dana’s reasonable satisfaction that Performance
Credits should not be applicable) for the New Service;
	 
	 	(5)	 	Key Personnel (unless Service Provider demonstrates to Dana’s
reasonable satisfaction that additional Key Personnel are not necessary) for
the New Service;
	 
	 	(6)	 	when appropriate, a resource model for the New Service;
	 
	 	(7)	 	when appropriate, a description of any new Software or
Equipment to be provided by Service Provider in connection with the New
Service;
	 
	 	(8)	 	when appropriate, the Software and Equipment and run-time
requirements necessary to develop and operate any new Software;
	 
	 	(9)	 	a description of the human resources necessary to provide the
New Service;
	 
	 	(10)	 	when appropriate, a list of any existing Software or Equipment
included in or to be used in connection with the New Service;
	 
	 	(11)	 	when appropriate, acceptance test criteria and procedures for
any new Software or any products, packages or components of the New Service;
	 
	 	(12)	 	an outline of a Disengagement Plan for the New Service, or an
update or supplement to the then current Disengagement Plan for the Services,
which will be prepared following the procedures set forth in Section 27.1;
	 
	 	(13)	 	when appropriate, a plan to update or supplement to the then
current disaster recovery plan and Policies and Procedures Manual for the New
Service; and
	 
	 	(14)	 	any other information related to the New Service requested by
Dana.

	 	(C)	 	Pricing of a New Service will be agreed and will be consistent with the then
current mechanisms in this Agreement. In any event, Service Provider’s pricing of the
New Service will be no more than the fees Service Provider generally charges similar
customers for similar services. The price for such New Service will also
take into account resources and expenses of Service Provider for then-existing
Services that would no longer be required if the New Service were implemented.

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	 	(D)	 	Dana will review Service Provider’s proposal and may request changes. Service
Provider will consider and the Parties will negotiate in good faith any such requested
changes. Once the proposal is agreed, Dana will prepare a New Service Schedule
incorporating the agreed proposal.
	 
	 	(E)	 	Once both Parties agree upon the New Service Schedule, the New Service will
form part of the Services and the New Service Schedule will be added to this Agreement.
	 
	 	(F)	 	Dana will not be obligated to pay for any New Service or any other service that
falls outside the scope of this Section unless Dana has approved the service in
accordance with this Section.

	5.4	 	Third Party Services. Notwithstanding any request made to Service Provider by Dana
under Section 5.2 or Section 5.3 or any other provision in this Agreement, Dana may contract
with a third party to perform any Project or New Service. Upon Dana’s request, Service
Provider will assist Dana in identifying qualified third-party service providers to provide
such Project or New Service, if Service Provider is unwilling or unable to provide such
Project or New Service.

	5.5	 	Cooperation. To the extent that Dana performs any services itself or retains a third
party to do so, Service Provider will, to the extent reasonably necessary for Dana or such
third party to perform such services or to interface with the Services and, if such third
party will have access to Confidential Information of Service Provider, subject to such third
party executing a confidentiality agreement in the form set forth in Schedule 13 (Form of
Confidentiality Agreement):

	 	(A)	 	cooperate with third parties and Dana, including by providing access to design
characteristics of Software and Equipment and related data to the extent required to
facilitate interoperability;
	 
	 	(B)	 	provide any information regarding the operating environment, system
constraints, protocol, interfaces, architecture and other operating parameters
reasonably required by Dana or the third party to perform the services;
	 
	 	(C)	 	provide any reasonable interface resources (including Equipment or Software)
necessary to enable Equipment to interface or be compatible with the Retained Systems;
	 
	 	(D)	 	use commercially reasonable efforts to ensure that there is no degradation in
the provision of the Services caused by adjustments made by Service Provider
transferring services to a third party or to Dana; and
	 
	 	(E)	 	agree on procedures with Dana and any third parties providing services to Dana
for the division of responsibilities in relation to services and functions that may
overlap between Service Provider and the third party.

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Service Provider will provide such cooperation, information and resources at no additional cost to
Dana, unless Service Provider notifies Dana, in advance, that it cannot perform such functions
using the personnel resources Service Provider is then using to provide the Services without
adversely affecting its ability to provide the Services and meet the Service Levels.

ARTICLE 6. SERVICE LEVELS

	6.1	 	Service Levels. Service Provider will perform the Services in accordance with the
Service Levels set forth in Schedule 5 (Service Levels and Performance Credits). Service
Provider will provide all Services without expressly defined Service Levels at service levels
that equal or exceed the level of service being provided by Dana before the Commencement Date.

	6.2	 	New Service Levels. Service Provider will perform any New Service in accordance with
the New Service Levels applicable to such New Service.

	6.3	 	Adjustment of Service Levels.

	 	(A)	 	The Lead Executive Team (1) will review the Service Levels for the preceding 12
months during the last calendar quarter of every Contract Year and (2) with respect to
those Service Levels that require periodic adjustment under Schedule 5 (Service Levels
and Performance Credits) or the applicable New Service Schedule or Work Order or are no
longer appropriate because of an increase, decrease or change to the Services, will
adjust the Service Levels for the subsequent Contract Year in accordance with Schedule
5 (Service Levels and Performance Credits). In addition, either Party may, at any time
upon notice to the other Party, initiate negotiations to review and, upon agreement by
the Lead Executive Team, adjust a Service Level that such Party in good faith believes
is inappropriate at the time.
	 
	 	(B)	 	Dana may, from time to time, in accordance with Schedule 5 (Service Levels and
Performance Credits), change the Service Levels to reflect its changing business needs,
including adding or removing a Service Level. If Service Provider can demonstrate to
Dana’s reasonable satisfaction that such new Service Level will materially increase
Service Provider’s cost of performing the Services in accordance with the new Service
Level, Dana may only add that new Service Level if:

	 	(1)	 	Service Provider agrees; or
	 
	 	(2)	 	Service Provider does not agree, but:

	 	(a)	 	Dana removes an existing Service Level at the
same time as introducing the new Service Level and the Parties agree
that the aggregate cost of providing the Services in accordance with
the
new Service Level plus the cost of measuring and reporting on such
new Service Level is not materially higher than the aggregate cost of
providing the Services under the existing Service Level 

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	 	 	 	plus the cost
of measuring and reporting on the existing Service Level; or

	 	(b)	 	Dana agrees to pay Service Provider for its
incremental cost of providing the Services under the new Service Level
plus the cost of measuring and reporting on the new Service Level.

Any disputes about such incremental cost will be subject to the dispute resolution
provisions of Schedule 4 (Governance) and this Agreement.

	6.4	 	Measurement and Monitoring Tools.

	 	(A)	 	As of each Transformation Date (or other date specified in Schedule 5 (Service
Levels and Performance Credits) with respect to any Service Level), Service Provider
will implement the measurement and monitoring tools and procedures required to measure
and report (as contemplated by Schedule 5 (Service Levels and Performance Credits))
Service Provider’s performance of the Services against the applicable Service Levels.
Such measurement and monitoring and procedures will (1) permit reporting at a level of
detail specified by Dana that is sufficient to verify compliance with the Service
Levels and (2) be subject to audit by Dana or its designee.
	 
	 	(B)	 	Service Provider will provide Dana with on-line access to such measurement and
monitoring tools and information, so that Dana is able to access the same information
as soon as it is available on-line to Service Provider.
	 
	 	(C)	 	In addition to on-line access to such measurement and monitoring tools and
information, Service Provider will provide Dana with periodic reports on Service
Provider’s compliance with the Service Levels as set forth in Schedule 5 (Service
Levels and Performance Credits).
	 
	 	(D)	 	In addition to on-line access to such measurement and monitoring tools and
information and such periodic reports, Service Provider will provide Dana and its
designees access to and information concerning such measurement and monitoring tools
and procedures upon request, for inspection and verification purposes.

	6.5	 	Root-Cause Analysis.

	 	(A)	 	With respect to Service Provider’s failure to provide the Services in
accordance with the Service Levels, Service Provider will (1) promptly investigate,
perform a root cause analysis on the failure in accordance with Schedule 4
(Governance), identify the problem causing the failure and report to Dana, (2) correct
the problem as soon as practicable and resume meeting the Service Levels, (3) advise
Dana of the status of the problem at stages determined by Dana and (4)
demonstrate to Dana that all reasonable action has been taken to prevent any
recurrence of such default or failure.

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	 	(B)	 	Service Provider will, at any time at which Service Provider anticipates that
it will fail to meet a Service Level, advise Dana of the status of the problem at time
intervals determined by Dana.

	6.6	 	Continuous Improvement and Best Practices. Service Provider will, on a continuous
basis, identify ways to improve the Service Levels. Service Provider will, from time to time,
include updates with respect to such improvements in the reports provided to Dana under
Section 3.8.

	6.7	 	Performance Credits.

	 	(A)	 	In the event of a failure to provide the Services in accordance with the
applicable Critical Service Levels, Service Provider will incur the Performance Credits
identified in and according to the terms set forth in Schedule 5 (Service Levels and
Performance Credits) or a New Service Schedule.
	 
	 	(B)	 	Performance Credits will be allocated among the Critical Service Levels and
calculated in accordance with the procedure set forth in Schedule 5 (Service Levels and
Performance Credits). Dana may from time to time reallocate the Performance Credit
percentages assigned to the Critical Service Levels as set forth in Schedule 5 (Service
Levels and Performance Credits).
	 
	 	(C)	 	The Performance Credits will not limit Dana’s right to recover, in accordance
with this Agreement, other damages incurred by Dana as a result of a Service Level
failure.
	 
	 	(D)	 	In addition to Dana’s right to receive Performance Credits and any damages to
which Dana may be entitled for a Service Level default, Dana may terminate this
Agreement for certain Service Level defaults as set forth in Section 25.6.
	 
	 	(E)	 	Nothing in this Section will be deemed to limit or obviate Dana’s right to
terminate this Agreement under Section 25.4.

	6.8	 	Deliverable Credits.

	 	(A)	 	Deliverable Credits apply to those Critical Deliverables specified in Schedule
5, Exhibit C, to this Agreement, as it may be amended by the Parties from time to time.
	 
	 	(B)	 	Deliverable Credits for Critical Deliverables are specified in Schedule 5,
Exhibit C, to this Agreement or, in the case of Projects, in the Work Order for the
Project. Amounts for other Critical Deliverables required during the Term will be
agreed on a case-by-case basis.
	 
	 	(C)	 	A Deliverable Credit payable for a Critical Deliverable earned in a particular
month will be credited by Service Provider to Dana on the next invoice.

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	 	(D)	 	Deliverable Credits will not limit Dana’s right to recover, in accordance with
this Agreement, other damages incurred by Dana as a result of failure to provide
Critical Deliverables that are subject to a Deliverable Credit by the time or in the
manner agreed.
	 
	 	(E)	 	Nothing in this Section will be deemed to limit or obviate Dana’s right to
terminate this Agreement under Section 25.4.
	 
	 	(F)	 	In the event that Dana fails to fulfill any of the responsibilities set forth
in Schedule 8 (Dana Operational Responsibilities and Resources), Schedule 3
(Transformation Plan), or to provide any Dana Resources, and such failure is the direct
cause of Service Provider’s inability to timely deliver a Critical Deliverable, Service
Provider will be excused from the payment of any resulting Deliverable Credit(s), only
for so long as such failure remains the direct cause of such inability, provided
that, the advance notice procedures set forth in Section 14.3 of this Agreement
have been timely followed by Service Provider.

	6.9	 	Performance Information. The raw data and detailed supporting information and reports
relating to Service Levels and performance (“Performance Information”) will be Confidential
Information of both Parties; provided that Dana may disclose the Performance Information in
connection with obtaining a successor service provider for the Services and Service Provider
may disclose the Performance Information in a manner that, if aggregated with performance
information from its other customers, does not identify (or enable the identification of) Dana
as the recipient of the applicable Services. Service Provider will provide material containing
the Performance Information to Dana promptly on request.

	6.10	 	Customer Satisfaction Surveys. Service Provider will conduct customer satisfaction
surveys in accordance with this Section 6.10 and Schedule 21 (Customer Satisfaction Surveys).

	 	(A)	 	Service Provider will select an independent third party and finalize a process
for conducting customer satisfaction surveys, both subject to Dana’s prior approval.
The selected third party will conduct a baseline customer satisfaction survey before
December 31, 2005. A second survey will be conducted by the selected third party no
later than June 30, 2006 with annual surveys thereafter every calendar fourth quarter
starting with the fourth quarter of 2006, unless otherwise mutually agreed.
	 
	 	(B)	 	Additional customer satisfaction measurements will be performed monthly.
Measurement criteria and reporting will be jointly developed and reported by IBM and
Dana.
	 
	 	(C)	 	Increasing measures of customer satisfaction will be used by Service Provider
as a key performance factor in determining the incentive compensation of Key Personnel
and such other Project Staff as Dana may reasonably request.

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	 	(D)	 	Service Provider will be responsible for all costs associated with conducting
customer satisfaction surveys under this Section 6.10 and Schedule 21 (Customer
Satisfaction Surveys).

ARTICLE 7.TECHNOLOGY

	7.1	 	Retained Systems and Retained Processes.

	 	(A)	 	Service Provider will use commercially reasonable efforts to ensure that (1) in
providing the Services it does not by any act or omission adversely affect or alter the
operation, functionality or technical environment of Dana’s Retained Systems and
Retained Processes without the consent of Dana; and (2) Systems and processes used to
provide the Services interface and integrate with the current Retained Systems and
Retained Processes as of the Effective Date. Upon a change to the Retained Systems and
Retained Processes, Service Provider will make changes to its Systems and Services as
necessary to maintain such interfaces and integration at no additional charge unless
Service Provider notifies Dana, in advance, that it cannot make such changes using the
personnel resources Service Provider is then using to provide the Services without
adversely affecting its ability to provide the Services and meet the Service Levels.
	 
	 	(B)	 	As necessary for Service Provider to perform the Services and comply with its
obligations under this Section, the Parties will cooperate in good faith to keep each
other informed about all aspects of the existing and future Retained Systems and
Retained Processes. Dana will provide documentation, information and other cooperation
regarding any existing and future Retained Systems and Retained Processes, as
reasonably necessary for Service Provider to perform the Services and comply with this
Section. Dana will also provide training with respect to any Retained Systems and
Retained Processes that are proprietary to Dana as reasonably required by Service
Provider to comply with its obligations under this Section.
	 
	 	(C)	 	Service Provider will provide Dana on request with services in relation to
Retained Systems affected by the Services, including liaising with Dana, its
outsourcing partners or third parties on the impact of any alterations to such Retained
Systems and vice versa.

	7.2	 	Process and Technology Evolution.

	 	(A)	 	Service Provider acknowledges that Dana’s business model and the human resource
management and administration processes employed throughout the Dana Group will
continue to evolve over the Term and, at a minimum, the Parties will collaborate to
ensure that the technology used to perform the Services will remain consistent with the
Dana Group Companies’ then current business and
human resource objectives and competitive needs. Service Provider will refresh
Service Provider owned Equipment and Service Provider licensed Software, and Dana
licensed software for PeopleSoft from time to time during the Term as 

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	 	 	 	necessary to
maintain all applicable Service Levels. In addition, as part of the Services,
Service Provider will complete the installation and implementation of PeopleSoft
Version 8.9 as described in Schedule 3. In addition, Service Provider will perform
one additional technical upgrade to the PeopleSoft software during the Term with the
version specified by Dana. Service Provider will give Dana reasonable prior notice
of any significant changes associated with refresh and Dana may waive any such
changes that may involve risk to Dana’s business, increased Fees or other costs to
Dana.

	 	(B)	 	Service Provider will continually introduce and implement Technology Evolution
to improve the quality and cost effectiveness of the Services and to keep pace with
technological advancements or improvements throughout the Term, which may include
implementing proven technology or processes that Service Provider is using in similar
environments anywhere in the world or are consistent with industry best practices. In
implementing any new technology or process under this subsection (B), Service Provider
will obtain any Dana approvals required by this Agreement.
	 
	 	(C)	 	Subject to any Dana approvals required by this Agreement, Service Provider,
without increasing the Fees, will cause the Services to evolve and to be modified,
enhanced, supplemented and replaced as necessary for the Services to keep pace with
improvements in practices and methodologies for the delivery of human resource
management and administration services and to support Dana’s efforts to maintain
competitiveness in the markets in which it competes.
	 
	 	(D)	 	In addition to Service Provider’s obligations under subsection (B) and
subsection (C), Service Provider will (1) monitor, analyze, and report to Dana annually
on new technologies, practices and methodologies and emerging trends in the field of
human resource management and administration services; (2) if requested by Dana,
demonstrate how Service Provider would integrate the new technologies, practices or
methodologies into the Services and what effect (if any) the integration would have on
the direction of Dana’s then current strategy; and (3) identify and, with Dana’s
approval, implement new technologies, practices and methodologies that are intended (a)
to improve the efficiency and effectiveness of the Services (including cost savings),
(b) to result in cost savings to the Dana Group, (c) to enhance the Dana Group
Companies’ ability to conduct their business and serve their employees or (d) to
achieve Dana’s business objectives faster or more efficiently than the then current
strategies.

ARTICLE 8. INTERNATIONAL SERVICES

	8.1	 	Worldwide Agreement. In executing this Agreement Dana engages Service Provider for
the provision of Services within the United States and for the benefit of selected non-US
Affiliates of Dana. The Parties agree to cooperate in good faith to effectuate any changes
in terms necessary as a result of any legally mandated consultation process with employees.

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	8.2	 	Assignment. Either Party may assign its rights and delegate its obligations under
this Agreement, in whole or in part, to one or more Affiliates without the consent of the
other Party (each such Affiliate an “Assignee”), provided that the assigning Party shall
remain responsible to the other Party for the assignee’s performance. The assigning Party
shall provide the other with prompt notice of such assignment. To the extent Service Provider
assigns its rights and delegates its obligations under the Agreement with respect to Services
performed in a specific country, such Affiliate may invoice Dana’s local Affiliate for the
Fees associated with the Services performed in that country. Alternatively, Dana may direct
such Assignee to send such invoice to a designated Dana Affiliate in such country.

	8.3	 	Local Country Agreements. In order to conform to Laws and practices outside the
United States, Dana or selected Dana Affiliates and Service Provider or Affiliates of Service
Provider will, prior to Service Provider providing any Services in countries outside the
United States, enter into mutually agreeable local country agreements with respect to
countries outside the United States (each a “Local Country Agreement”). Each Local Country
Agreement will contain, as applicable:

	 	(A)	 	variations to the terms and conditions of this Agreement required by Local Law;
	 
	 	(B)	 	human resource provisions required by Local Law or as a result of a
consultation process with employees concerning the transfer of Transferred Employees to
Service Provider; and
	 
	 	(C)	 	lists of Transferred Employees to be transferred to Service Provider, Dana
contracts to be assigned to Service Provider or managed by Service Provider, variations
in the scope of Services or manner in which Services are provided, applicable billing
practices (which will otherwise be presumed to be between local Affiliates), and such
other matters as are agreed by the Parties.

ARTICLE 9. CONTRACT ADMINISTRATION

	9.1	 	Assigned Agreements. The Assigned Agreements will be, as of the Effective Date or
such later date as may be specified for an Assigned Agreement in Schedule 23 (Assigned
Agreements and Managed Agreements) (the “Assigned Agreement Effective Date”), assigned to
Service Provider. Effective upon the applicable Assigned Agreement Effective Date, Service
Provider will assume all responsibility for each Assigned Agreement. Dana will retain
responsibility for all obligations with respect to the Assigned Agreements before the
applicable Assigned Agreement Effective Date. From and after the applicable Assigned Agreement
Effective Date, Service Provider may, to the extent permitted by the Assigned Agreements,
renew, modify, terminate or cancel, or request or grant any consents or waivers under, any
such Assigned Agreements; provided that Service Provider will remain responsible for all
Services to Dana that are provided, related to or supported by all such Assigned Agreements,
regardless of any such renewal, modification, termination, cancellation, consent or waiver. Any fees or charges imposed upon
Dana in connection with any modification, termination or cancellation of, or

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consent or waiver under, the Assigned Agreements obtained or given after the Assigned Agreement
Effective Date will be paid by Service Provider.

	9.2	 	Assigned Agreement Invoices. Service Provider will (1) pay the invoices submitted by
third parties in connection with the Assigned Agreements allocable to the period commencing on
the applicable Assigned Agreement Effective Date and (2) be responsible for any late fees with
respect to such third-party invoices (except for periods before the Assigned Agreement
Effective Date) unless, with respect to any such invoice that Dana receives in a timely manner
from a third party, Dana fails to forward such invoice to Service Provider for payment within
a reasonable period of time before the date such invoice is due.

	9.3	 	Managed Agreements. From and after the Effective Date or such later date as may be
specified for a Managed Agreement in Schedule 23 (Assigned Agreements and Managed Agreements)
(the “Managed Agreement Effective Date”), Service Provider will, on behalf of Dana and Dana
Affiliates, manage, administer and maintain each Managed Agreement. Service Provider may not
renew, modify, terminate or cancel, or request or grant any consents or waivers under, any
Managed Agreements without the prior written consent of Dana. Any fees or charges or other
liability or obligation imposed upon Dana in connection with any such renewal, modification,
termination or cancellation of, or consent or waiver under, the Managed Agreements, obtained
or given by Service Provider without the consent of Dana, will be paid or discharged, as
applicable, by Service Provider.

	9.4	 	Managed Agreement Invoices.

	 	(A)	 	Except as otherwise provided herein, Dana will remain financially responsible
for all amounts payable under Managed Agreements.
	 
	 	(B)	 	Service Provider will (a) receive all Managed Agreement invoices, (b) review
and have the third party correct any errors in any such Managed Agreement invoices in a
timely manner and (c) provided Service Provider has received the Managed Agreement
invoice sufficiently in advance of the payment due date, submit such Managed Agreement
invoices to Dana for approval within a reasonable period of time before the due date
or, if a discount for prompt payment is offered and Dana notifies Service Provider that
Dana desires to take advantage of such discount, the date by which Dana must pay such
Managed Agreement invoice to receive the discount.
	 
	 	(C)	 	Dana will not be required to pay Service Provider any amounts in addition to
the Fees, for management, administration, maintenance and other Services with respect
to the Managed Agreements.
	 
	 	(D)	 	If Service Provider fails to submit any Managed Agreement invoice to Dana for
approval within a reasonable period of time before the date on which the
Managed Agreement invoice is due, Service Provider will be responsible for any late
fees incurred by Dana due to such delay, unless Service Provider did not

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receive the invoice far enough in advance to permit delivery within a reasonable period of time
before such due date.

	9.5	 	Performance Under Managed Agreements. Service Provider will monitor and manage any
service levels or other similar performance terms of the Managed Agreements and will notify
Dana of any service level failures under the Managed Agreements. Service Provider will
promptly notify Dana of any breach of, or misuse or fraud in connection with, any Managed
Agreements of which Service Provider becomes aware and will cooperate with Dana to prevent or
stay any such breach, misuse or fraud. To the extent necessary to enable Service Provider to
perform its obligations under this Agreement with respect to the Managed Agreements, Dana will
promptly notify Service Provider of any breach of, or misuse or fraud in connection with, any
Managed Agreements of which Dana becomes aware.

ARTICLE 10. SERVICE LOCATIONS

	10.1	 	Service Locations. The Services will be provided to Dana from the Service Locations
specified in Schedule 12 (Service Locations) and any other location for which Service Provider
has received Dana’s approval, to be given in Dana’s sole discretion. Any incremental expenses
incurred by Dana as a direct result of a relocation to, or use of, any location other than the
Service Locations initially set forth in Schedule 12 (Service Locations) (unless such
relocation is undertaken at Dana’s request) will, at Dana’s sole discretion, either be paid by
Service Provider or reimbursed to Dana by Service Provider. Service Provider and Service
Provider Agents may not provide or market services to a third party from a location owned or
controlled by Dana without Dana’s consent, to be given in Dana’s sole discretion.
	 
	10.2	 	Physical Safety and Security Procedures.

	 	(A)	 	Service Provider will maintain and enforce at the Service Locations physical
safety and security procedures that are at least equal to industry standards for
locations similar to the Service Locations and any higher standard agreed upon by the
Parties.
	 
	 	(B)	 	When providing Services from locations owned or controlled by Dana, Service
Provider will comply with the physical safety and security procedures that are
applicable to such locations as set forth in Schedule 19 (Dana Policies and Procedures)
and as modified from time to time.

	10.3	 	Information Security.

	 	(A)	 	Service Provider acknowledges that Dana has established, and during the Term
may amend, minimum appropriate levels of security for information residing on Dana
systems and for Dana Data residing on the Service Provider Systems.
	 
	 	(B)	 	Dana’s information security policies as of the Effective Date are set forth in
Schedule 14 (Dana Information Security Requirements). Dana may amend these security
policies on 30 days’ notice to Service Provider or such shorter notice

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period as required in order to comply with Law, utilizing the Change Control Procedures.

	 	(C)	 	Service Provider will, and will cause each member of the Project Staff to,
comply with Schedule 14 (Dana Information Security Requirements) at all locations,
whether Dana premises or Service Provider premises, to which they have access in
connection with the performance of Services hereunder.
	 
	 	(D)	 	If Service Provider or any Service Provider Agent discovers or is notified of a
breach or potential breach of security relating to Dana Data, Service Provider will
immediately (1) notify the Dana Relationship Manager of such breach or potential breach
and (2) if the applicable Dana Data was in the possession of Service Provider or a
Service Provider Agent at the time of such breach or potential breach, Service Provider
will (a) investigate and remedy the cause of the breach or potential breach and (b)
provide Dana with assurance satisfactory to Dana that such breach or potential breach
will not recur.
	 
	 	(E)	 	Without limiting the foregoing, Service Provider agrees to administer adequate
safeguards, as determined by Dana, regarding the transfer of personal data used or
accessed in the course of performing the Services, including any safeguards required
under the 1995 EU Privacy Directive as enacted in local jurisdictions, and will ensure
that its agreements with third parties involving the use or access of such data include
such safeguards.

ARTICLE 11. HUMAN RESOURCES

	11.1	 	Human Resources. All terms and conditions relating to the offer of employment to the
Affected Employees, and the employment of the Transferred Employees, are set forth in Schedule
18 (Human Resources) and, if applicable, the Local Country Agreements.

ARTICLE 12. PROJECT STAFF

	12.1	 	Project Staff Matters. Schedule 18 (Human Resources) sets forth terms and conditions
regarding the selection, replacement and reassignment of Project Staff, including Key
Personnel, and certain restrictions on the assignment of Key Personnel to Service Provider
accounts with Excluded Companies.
	 
	12.2	 	Subcontractors.

	 	(A)	 	Other than subcontracts of $250,000 or less in annual value, Service Provider
will not subcontract any of the Services to a third party (including to a Service
Provider Affiliate) without Dana’s prior consent. Approved subcontractors as of the
Effective Date are set forth in Schedule 11 (Approved Subcontractors).
	 
	 	(B)	 	Regardless of subcontract value, at least 30 days before entering into a
subcontract with a third party to perform any Services under this Agreement, Service
Provider will give Dana written notice specifying the identity,

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qualifications and scope of the Services to be provided by the proposed subcontractor.

	 	(C)	 	Each subcontract between Service Provider and a third party for the provision
of any Services will provide Dana with rights and protections equivalent to those
provided by this Agreement, including with respect to the use, licensing and ownership
of intellectual property, the use of Dana Resources, audit of Services, protection of
Confidential Information and warranties regarding Services and Deliverables.
	 
	 	(D)	 	No subcontracting will release Service Provider from its responsibility for its
obligations under this Agreement. Service Provider will be responsible for the work and
activities of each of the Service Provider Agents and members of the Project Staff
employed by Service Provider Agents, including compliance with the terms of this
Agreement. Service Provider will be responsible for all payments to its subcontractors.
	 
	 	(E)	 	Service Provider will promptly pay for all services, materials, Equipment and
labor used by Service Provider in providing the Services and Service Provider will
promptly cause any Service Provider Agent to promptly remove any lien on Dana’s
premises by such Service Provider Agent for work performed under this Agreement.

	12.3	 	Conduct of Project Staff.

	 	(A)	 	While at the Dana premises, Service Provider and Service Provider Agents will
(1) comply with the requests, standard rules and regulations of Dana regarding safety
and health, personal and professional conduct (including adhering to general safety
practices or procedures) generally applicable to such Dana premises, including those
set forth in Schedule 19 (Dana Policies and Procedures) and (2) otherwise conduct
themselves in a businesslike manner.
	 
	 	(B)	 	Service Provider will cause Service Provider Agents and members of the Project
Staff to maintain and enforce the confidentiality provisions of this Agreement.
	 
	 	(C)	 	If Dana notifies Service Provider that a particular member of the Project Staff
is not conducting himself or herself in accordance with this Section, Service Provider
will promptly (1) investigate the matter and take appropriate action, which may include
(a) removing the applicable person from the Project Staff and providing Dana with
prompt notice of such removal and (b) replacing the applicable person with a similarly
qualified individual or (2) take other appropriate disciplinary action to prevent a
recurrence. If Dana is dissatisfied with Service Provider’s investigation or action or
continues to be dissatisfied with the
conduct of a particular member of the Project Staff, Service Provider will promptly
remove the individual from the Project Staff at Dana’s request.

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ARTICLE 13. CONTINUED PROVISION OF SERVICES

	13.1	 	Disaster Recovery Plan.

	 	(A)	 	Service Provider will implement and maintain disaster recovery plans and
business continuity plans for Service Provider Service Locations and Service Provider’s
business that, at a minimum, address the matters set forth in Schedule 20 (Disaster
Recovery and Business Continuity Requirements), and support Dana in their
implementation of Dana disaster recovery plans and Dana business continuity plans for
Dana Service Locations and will comply with Schedule 14 (Dana Information Security
Requirements) in connection with such plans. For Service Provider Service Locations,
Service Provider will (1) update and test the operability of any applicable Service
Provider recovery plan annually and upon any significant change to the Systems or
procedures constituting or affecting the Services, (2) certify to Dana upon each such
test that each such plan is fully operational and provide Dana with a summary of any
report regarding the results of such test and (3) implement each such plan upon the
occurrence of a disaster.
	 
	 	(B)	 	Service Provider will reinstate the Services within the time periods set forth
in Schedule 20 (Disaster Recovery and Business Continuity Requirements) (or if not set
forth in Schedule 20, the recovery time periods set forth in Service Provider’s
recovery plan) after the occurrence of a disaster.
	 
	 	(C)	 	In the event of a disaster (as such term is defined in the applicable recovery
plan), Service Provider will not increase its Fees under this Agreement or charge Dana
any declaration, usage or other fees in addition to such Fees.

	13.2	 	Force Majeure. If and to the extent that a Party’s performance of any of its
obligations under this Agreement is prevented, hindered or delayed by a cause beyond the
reasonable control of such Party, which may include fire, flood, earthquake, elements of
nature or acts of God, acts of war, terrorism, riots, civil disorders, rebellions or
revolutions (each, a “Force Majeure Event”), and such non-performance, hindrance or delay
could not have been prevented by reasonable precautions, then the non-performing, hindered or
delayed Party will be excused for such non-performance, hindrance or delay, as applicable, of
those obligations affected by the Force Majeure Event for as long as such Force Majeure Event
continues and such Party continues to use commercially reasonable efforts to resume
performance whenever and to whatever extent possible without delay, including through the use
of alternate sources, workaround plans or other means. The Party whose performance is
prevented, hindered or delayed by a Force Majeure Event will immediately notify the other
Party of the occurrence of the Force Majeure Event and describe in reasonable detail the
nature of the Force Majeure Event. The occurrence of a Force Majeure Event does not excuse,
limit or otherwise affect Service Provider’s obligation to provide either normal recovery
procedures or any other disaster recovery services described in Section 13.1, except to the
extent the Force Majeure Event prevents
execution of the disaster recovery plan itself. The failures of subcontractors or
third-party providers of services to Service Provider will not be considered Force Majeure
Events.

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	13.3	 	Alternate Source. If any Force Majeure Event or disaster prevents, hinders or delays
performance of Services for more than seventy-two (72) hours after the inception of the Force
Majeure Event or disaster, Dana may procure such Services from an alternate source and Service
Provider will reimburse Dana for the reasonable and actual costs and expenses incurred by Dana
in procuring such Services from an alternate source, to the extent that those costs and
expenses exceed the Fees for such Services for so long as the delay in performance will
continue, but in no event longer than the earlier of (a) 180 days from the start of such
delay, or (b) the remaining Term, provided that Dana continues to pay Service Provider for
such Services. If the Force Majeure Event or disaster continues to prevent, hinder or delay
performance of the Services for more than 14 calendar days after the inception of the Force
Majeure Event or disaster or, if a different time period is specified for Service
reinstatement in Schedule 20 (Disaster Recovery and Business Continuity Requirements), such
time period, Dana may at its sole discretion, effective as of a date specified by Dana in a
termination notice to Service Provider, without observing the cure period required by Section
25.4, (1) terminate any portion of this Agreement affected by the nonperformance and the Fees
will be equitably adjusted or (2) terminate the entire Agreement without liability to Dana
except as set forth in Schedule 6 (Fees); provided that, if Service Provider succeeds in
reinstating the Services, Dana must exercise such termination rights within 30 days after such
reinstatement.

	13.4	 	No Payment for Unperformed Services. If Service Provider fails to provide the
Services in accordance with this Agreement due to the occurrence of a Force Majeure Event, the
Fees will be adjusted in a manner such that Dana is not responsible for the payment of any
Fees for Services that Service Provider fails to provide.

	13.5	 	Allocation of Resources. Whenever a Force Majeure Event or a disaster causes Service
Provider to allocate limited resources between or among Service Provider’s customers, Dana
will receive at least the same treatment as other Service Provider customers who are receiving
an allocation of resources. In addition, in no event will Service Provider redeploy or
reassign any Key Personnel to another account in the event of a Force Majeure Event.

ARTICLE 14. DANA RESPONSIBILITIES

	14.1	 	Dana Operational Responsibilities. Dana will have the operational responsibilities
set forth in Schedule 8 (Dana Operational Responsibilities and Resources) and, for a Project,
set forth in the Work Order.

	14.2	 	Dana Resources. Dana will make available to Service Provider the resources,
facilities, equipment, furnishings, fixtures and support set forth in Schedule 8 (Dana
Operational Responsibilities and Resources) and, for a Project, set forth in the Work Order
(“Dana Resources”) in accordance with the following provisions:

	 	(A)	 	the terms specified in Schedule 8 (Dana Operational Responsibilities and
Resources) or any other terms agreed between Dana and Service Provider in writing from
time to time will apply to the Dana Resources;

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	 	(B)	 	Service Provider will comply with any procedures specified in Schedule 8 (Dana
Operational Responsibilities and Resources) in relation to the Dana Resources;
	 
	 	(C)	 	except as expressly provided in this Agreement, Service Provider will use the
Dana Resources for the sole and exclusive purpose of providing the Services to Dana;
	 
	 	(D)	 	use by Service Provider of facilities that are included in the Dana Resources
does not constitute a leasehold interest in favor of Service Provider or any of Service
Provider’s customers;
	 
	 	(E)	 	Service Provider will use the facilities that are included in the Dana
Resources in a reasonably efficient manner, and to the extent that Service Provider
operates such a facility in a manner that unnecessarily increases facility costs
incurred by Dana, Dana reserves the right to set-off the excess utility costs of such
practices;
	 
	 	(F)	 	Service Provider will (and will ensure that Service Provider Agents) keep
facilities that are included in the Dana Resources in good order, not commit or permit
waste or damage to such facilities, not use such facilities for any unlawful purpose or
act and comply with all of Dana’s standard policies and procedures as in effect from
time to time as communicated to Service Provider, including procedures for the physical
security of such facilities;
	 
	 	(G)	 	Service Provider will be responsible for damages to, and fines arising from use
of, the Dana Resources to the extent caused by Service Provider, its agents,
subcontractors, employees or invitees;
	 
	 	(H)	 	Service Provider will permit Dana and Dana agents to enter into those portions
of facilities that are included in the Dana Resources that are occupied by Project
Staff at any time to perform facility-related services;
	 
	 	(I)	 	Service Provider will not make any improvements or changes involving
structural, mechanical or electrical alterations to facilities that are included in the
Dana Resources without Dana’s approval; and
	 
	 	(J)	 	when any facility that is included in the Dana Resources is no longer required
for performance of the Services for Dana, Service Provider will return such facility to
Dana in substantially the same condition as when Service Provider began using such
facilities, ordinary wear and tear excepted.

	14.3	 	Management of Issues.

	 	(A)	 	Notwithstanding anything contained in this Article, Service Provider will
proactively manage issues in a manner that ensures all tasks required to be
performed under this Agreement are performed in a timely manner. Each member of the
Project Staff will promptly escalate an issue if the performance of any such Project
Staff member’s obligation is directly impacted by the failure of Dana to perform a
prerequisite task. Service Provider will not have met its obligation with

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respect to the hindered task unless and until the Dana Relationship Manager (or other relevant
Dana team member identified in Schedule 4 (Governance)) has been notified of such
failure to perform.

	 	(B)	 	Dana’s failure to perform any of its stated operational responsibilities or
provide any Dana Resources will not constitute a breach of this Agreement or give rise
to any right to terminate this Agreement. If Dana fails to fulfill any of the
responsibilities set forth in Schedule 8 (Dana Operational Responsibilities and
Resources) or provide any Dana Resources, Service Provider will be excused from the
performance of its obligations under this Agreement adversely affected by such failure
to the extent and only for so long as Dana’s failure is the direct cause of Service
Provider’s non-performance, but only:

	 	(1)	 	if Service Provider promptly notifies the Dana Relationship
Manager of Dana’s failure and if, after notifying the Dana Relationship
Manager, Dana fails to promptly rectify the failure; and
	 
	 	(2)	 	with respect to such specific obligations for which no
reasonable workaround exists.

ARTICLE 15. FEES AND PAYMENT

	15.1	 	Fees. In consideration of Service Provider providing the Services under this
Agreement, Dana will pay to Service Provider:

	 	(A)	 	the Fees set forth in Schedule 6 (Fees);
	 
	 	(B)	 	for Projects, Fees determined in accordance with Schedule 6 (Fees) and the
applicable Work Order; and
	 
	 	(C)	 	for a New Service, the Fees set forth in the applicable New Service Schedule.
	 

	 	 	Except as expressly set forth in this Agreement, there will be no charge or Fees payable by
Dana for Service Provider’s performance of its obligations under this Agreement. Service
Provider will extend the Fees to other members of the Dana Group Companies as requested by
Dana.
	 
	15.2	 	Variable Fees. At the end of every month, Service Provider will review the volume of
those Services used by Dana during the preceding month that, as designated in Schedule 6
(Fees), are subject to Variable Fees. If the volume of Dana’s use of a Service subject to
Variable Fees (1) increases above the applicable resource baseline set forth in Schedule 6
(Fees), Dana will pay Service Provider, in addition to the Fees otherwise due for such
Service, an amount equal to the corresponding Additional Resource Charge or (2) decreases
below the applicable resource baseline set forth in Schedule 6 (Fees), Service
Provider will credit Dana an amount equal to the corresponding Reduced Resource Credit. All
such payments and credits will be effected in accordance with Section 15.3.
	 
	15.3	 	Invoices. Invoices will adhere to the provisions of Schedule 6 (Fees).

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	15.4	 	[INTENTIONALLY BLANK]

	15.5	 	Refundable Items; Prepaid Expenses. If Service Provider receives during the Term any
refund, credit or other rebate (including deposits) in connection with any Assigned Agreement,
and such refund, credit or other rebate is attributable to a period before the Assigned
Agreement Effective Date, as applicable, then Service Provider will promptly (1) notify Dana
of such refund, credit or rebate and (2) pay to Dana the full amount of such refund, credit or
rebate. Service Provider will reimburse Dana for all prepaid amounts related to the Services.

	15.6	 	Adjustments to Fees. There will be no periodic adjustments to the Fees except as
expressly set forth in Schedule 6 (Fees).

	15.7	 	Expenses. Except as expressly set forth in Schedule 6 (Fees), all travel and other
costs and expenses relating to the Services are included in the Fees and will not be charged
to or reimbursed by Dana. To the extent that this Agreement or Schedule 6 (Fees) specifically
identifies Pass-Through Expenses to be paid by Dana, such expenses will be passed through by
Service Provider with no mark-up. Service Provider will use commercially reasonable efforts to
(1) identify and obtain any Pass-Through Expenses that a third-party vendor may not provide to
Service Provider in a timely manner, and (2) ensure that all Pass-Through Expenses incurred in
each month will be included in the invoice issued in the following month. Service Provider
will report each month to Dana on the status of late third-party vendor invoices and Service
Provider’s efforts to obtain them.

	15.8	 	Disputed Charges.

	 	(A)	 	Dana may withhold payment of any portion of an invoice that it disputes in good
faith, not to exceed *** (the “Withholding Cap”). In addition, Dana may, in lieu of
payment to Service Provider, pay into an escrow account up to an additional *** in
excess of the Withholding Cap for any portion of an invoice that it disputes in good
faith. Notwithstanding the preceding two sentences, if Dana disputes in good faith any
portion of an invoice relating to a Project, Dana may withhold payment of up to *** for
such Project (the “Project Withholding Cap”).
	 
	 	(B)	 	No later than the date on which such withheld Fees or expenses are due, Dana
will provide Service Provider with a statement specifying the portion of Fees or
expenses being withheld or escrowed and a reasonably detailed explanation of the
reasons for withholding or escrowing such Fees or expenses.
	 
	 	(C)	 	Whenever Dana withholds or escrows payment of a disputed portion of any
invoice, the Parties will negotiate expeditiously and in good faith to resolve any such
disputes in accordance with Schedule 4 (Governance). All amounts held in
escrow at the conclusion of the dispute resolution process will be disbursed to
Service Provider or to Dana, or allocated between them, in accordance with the
resolution.

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	 	(D)	 	Payment disputes will not affect Service Provider’s obligation to provide the
Services in accordance with the Service Levels or any other Service Provider obligation
under this Agreement.

	15.9	 	Rights of Set-Off. With respect to any amount that (A) should be reimbursed to Dana
or (B) is otherwise payable to Dana under this Agreement, Dana may deduct the entire amount
owed to Dana from the Fees or from the expenses owed by Dana to Service Provider under this
Agreement.

	15.10	 	Unused Credits. Any unused credits against future payments (including Reduced
Resource Credits, Performance Credits and Deliverable Credits) owed to either Party by the
other under this Agreement will be paid to the applicable Party within 30 days after the
expiration or termination of this Agreement.

	15.11	 	Benchmarking. Dana may elect to engage a third party benchmark organization (the
“Benchmarker”) to compare the Fees in the aggregate for some or all of the Services (the
“Benchmarked Services”) and prices charged by other top tier service providers for similar
services, on an average total charges basis based on the processes included in the Benchmarked
Services (each such comparison a “Benchmark”) pursuant to this Section. Benchmarking will be
governed by the following terms:

	 	(A)	 	The Benchmark process may commence no earlier than ***.
	 
	 	(B)	 	The agreed upon Benchmarkers will be set forth in Schedule 24 (Benchmarkers) as
of the Effective Date. The Parties will update this list as necessary on an annual
basis. *** Within *** days of receipt of such list, Dana will elect a Benchmarker from
such list and engage such Benchmarker by entering into a *** written agreement with the
Benchmarker that, at a minimum, shall reflect the requirements set forth in this
Section. Notwithstanding the above, Dana shall not engage any Benchmarker for which the
engagement would result in a violation of any applicable laws or regulations or
otherwise violate Dana’s then current audit service conflict policies. ***
	 
	 	(C)	 	Dana shall pay all charges, expenses and costs incurred by the Benchmarker in
performing the benchmarking described in this Section. The Service Provider will

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at its sole cost and expenses cooperate fully with the Benchmarker and provide the
data requested by the Benchmarker relating to the provision of the Services. Only
Dana may exercise a right to conduct a Benchmark.

	 	(D)	 	Prior to receiving any information from the Parties regarding the Services or
the Fees the Benchmarker shall execute a confidentiality agreement reasonably
satisfactory to both Service Provider and Dana that at a minimum specifies that the
data provided by Dana and Service Provider may not be used for any other purpose than
conducting the referenced Benchmark.
	 
	 	(E)	 	It is the intent of the Parties that the Benchmark be a collaborative process.
In this regard, each Party shall cooperate with reasonable requests by the Benchmarker
for any information or data related to the Agreement to the extent necessary for the
Benchmarker to perform the Benchmark; provided, however, in no event shall Service
Provider be required to provide the Benchmarker with Service Provider cost data or data
relating to other Service Provider customers.
	 
	 	(F)	 	The Benchmarker shall perform a price-based benchmark, using reasonably current
data, comparing the total Fees for all Services included, in the aggregate, in the
Benchmarked Services, against the total charges applicable to similar services with
respect to the selected entities in the Representative Sample as such term is defined
below. ***
	 
	 	(G)	 	For the purposes of this Section:

	 	(1)	 	“Representative Sample” for Benchmarked Services shall mean ***

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	 	(2)	 	“Benchmarked Level” shall mean the average total charges
attributable to the Benchmarked Services based among those entities comprising
the Representative Sample.
	 
	 	(3)	 	Prior to performing the comparison, the Benchmarker shall meet
with the Parties to review and explain its Benchmark methodology ***. The
Benchmarker shall provide a written summary of the Benchmark methodology and
shall perform the Benchmark in adherence thereto in all material respects.
	 
	 	(4)	 	The Benchmarker shall deliver the results of the Benchmark in a
written report no later than *** days following its engagement by Dana (the
“Benchmark Results”) to the designated representatives of the Parties. ***

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	 	(5)	 	***. The report of the Benchmarker including the Benchmark
Results shall be treated as Confidential Information of each Party.
	 
	 	(6)	 	***
	 
	 	(7)	 	***

	15.12	 	Unforeseen Technology Improvements. Service Provider will pass through to Dana
reductions in the cost of delivery of the Services resulting from significant changes in
technology or extraordinary reductions in the costs of delivering technology services that
could not reasonably have been foreseen as of the Effective Date but that occur during the
Term and would be generally available to other users of similar technology and services.

	15.13	 	Gainsharing. The parties will cooperate in good faith to establish, within 60 days
after the Effective Date, mutually-agreeable terms to identify and equitably share
unanticipated cost savings opportunities.

ARTICLE 16. TAXES

	 	(A)	 	Service Provider will be responsible for any Service Taxes imposed by any
Governmental Authority based on or measured by the cost of acquiring goods or services
used by Service Provider in performing the Services. Service Provider will assume any
and all responsibility (including the payment of interest and penalty assessments
levied by a Governmental Authority) for failure to remit a tax that Service Provider is
liable to pay under this subsection.

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	 	(B)	 	Dana will be responsible for any Service Taxes imposed by any Governmental Authority
on the provision of the Services as of the Effective Date. If new or higher Service
Taxes become applicable to the Services after the Effective Date as a result of
either Party moving all or part of its operations to a different jurisdiction (e.g.,
Dana’s opening a new office or Service Provider relocating its performance of the
Services to a new service center), the Party initiating such move will be
responsible for such new or higher Service Taxes to the extent they are not
recoverable by the other Party under applicable tax law. If new or higher Service
Taxes become applicable to the Services after the Effective Date for any other
reason (e.g., under changes in Law, but not volume changes) the Party otherwise
responsible for such Service Taxes as set forth in this Section 16 will be
responsible for such new or higher Service Taxes.
	 
	 	(C)	 	Dana and Service Provider will each be responsible for any franchise,
privilege, income, gross receipts or business activity taxes based upon its own gross
or net income, net worth or business activities. Neither Party will be responsible for
any real or personal property taxes assessed on tangible or intangible property owned
or leased by the other Party.
	 
	 	(D)	 	Dana and Service Provider will each reasonably cooperate with the other to more
accurately determine a Party’s tax liability and to minimize such liability, to the
extent legally permissible. Dana and Service Provider will each provide and make
available to the other any resale certificates, information regarding out-of-state
sales or use of equipment, materials or services, and any other exemption certificates
or information requested by a Party.

ARTICLE 17. AUDITS

	17.1	 	Service Audits. Upon notice from Dana, Service Provider and Service Provider Agents
will provide Dana, and any Governmental Authority or other third parties who are not Service
Provider Competitors and who are not hired on a contingency fee basis (“Dana Auditors”) with
access to and any assistance that they may require with respect to the Service Locations and
the Service Provider Systems for the purpose of performing audits or inspections of the
Services and the business of Dana relating to the Services (excluding other Service Provider
customer data and records or Service Provider’s cost data or internal cost analysis),
including (1) audits and examinations required by Governmental Authorities, (2) audit of
Service Provider’s compliance with the terms of this Agreement, (3) audit of Service
Provider’s operational and security-related procedures with respect to the Services, (4)
confirming that control procedures are suitably designed to provide reasonable assurance that
the stated internal control objectives will be achieved if the procedures operate as designed
and (5) confirming that those control procedures, in fact, operated effectively and
continuously at all times during the audited period. If any audit by a Dana Auditor results in
Service Provider being notified that Service Provider or Service Provider Agents are not in
compliance with any Law, audit requirement or other requirement set forth in this Agreement,
Service Provider will, and will cause Service Provider Agents to, promptly take actions to
comply with such Law, audit requirement or other requirement.

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	17.2	 	Fees Audits. Upon notice from Dana, Service Provider will provide Dana and Dana
Agents with access to such financial records and supporting documentation as may be requested
by Dana. Dana and Dana Agents may audit the Fees charged to Dana to determine if such Fees are
accurate and in accordance with this Agreement.

	 	(A)	 	If, as a result of such audit, Dana determines that Service Provider has
overcharged Dana, Dana will notify Service Provider of the amount of such overcharge
and unless Service Provider disputes the amount in accordance with the dispute
resolution process set forth in Schedule 4 (Governance), Service Provider will promptly
pay to Dana the amount of the overcharge, plus Interest calculated from the date of
receipt by Service Provider of the overcharged amount until the date of payment to
Dana.
	 
	 	(B)	 	In addition, if any such audit reveals an overcharge to Dana of five percent or
more during the period audited and Service Provider does not successfully dispute the
amount revealed by such audit in accordance with the dispute resolution process set
forth in Schedule 4 (Governance), Service Provider will, at Dana’s option, issue to
Dana a credit against the Fees, or reimburse Dana, for the actual and reasonable cost
of such audit.

	17.3	 	Service Provider Audits.

	 	(A)	 	Service Provider will (1) promptly notify Dana if the results of any
independent audit or other report of Service Provider’s or any Service Provider Agent’s
operations relating to the Services, except to the extent that any such report deals
with Service Provider’s costing structures (in which event information about Service
Provider’s cost structure will be redacted), indicate (or Service Provider otherwise
becomes aware) that any failure by Service Provider to comply with its obligations
under this Agreement (i) has impacted or reasonably could impact the maintenance of
Dana’s financial integrity or internal controls, the accuracy of Dana’s financial,
accounting or human resource records and reports; or (ii) has had, or reasonably could
have, any other material adverse impact on the applicable Services or the impacted
business operations of Dana and (2) promptly take corrective action to rectify (a) any
error identified in any such report that could reasonably be expected to have an
adverse impact on the Services and (b) any control deficiencies identified in the
report.
	 
	 	(B)	 	Service Provider will have performed, and provide to Dana by December 31 of
each year a copy of, a SAS 70 Type II audit on Service Provider’s common controls
(Encompasses Service Provider’s internal control environment in support of services
provided across clients, including Dana, serviced in a location and includes those
items identified by Service Provider on a yearly basis to the Service Provider’s
independent public accountants as common controls that require testing. Service
Provider will provide timely (e.g., 30 days) notification to Dana of any material
changes in the common controls from those reported previously.) performed by the
Service Provider’s independent public accountants on the Service Provider’s primary
facilities where this type of audit is being

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performed for itself or other clients and which are utilized by Service Provider for
the provision of the Services. *** The SAS 70 Type II audit will be performed in
accordance with Statement of Auditing Standards (SAS) 70 “Services Organizations” as
amended by SAS 88 “Services Organizations and Reporting on Consistency” and as
otherwise consistent with U.S. GAAP and Statements of Auditing Standards on the
control procedures used by Service Provider in the performance of the Services. ***

	17.4	 	Record Retention. Service Provider will comply with Dana’s record retention policies
in effect from time to time during the Term as communicated in writing to Service Provider,
and provide Dana access upon request to the records, documents and other information required
to meet Dana’s audit rights under this Agreement. Dana will notify Service Provider of changes
in its record retention policies so that Service Provider can make any necessary changes to
the Policies and Procedures Manual in accordance with the Change Control Procedures.

	17.5	 	Facilities. Service Provider will provide to Dana Auditors, on Service Provider’s
premises (or, if the audit is being performed of a Service Provider Agent, the Service
Provider Agent’s premises if necessary), space, office furnishings (including lockable
cabinets), telephone and facsimile services, utilities and office-related equipment and
duplicating services as such Dana Auditors may reasonably require to perform the audits
described in this Article.
	 
	17.6	 	General.

	 	(A)	 	In performing audits, Dana will endeavor to avoid unnecessary disruption of
Service Provider’s operations and unnecessary interference with Service Provider’s
ability to perform the Services in accordance with the Service Levels.
	 
	 	(B)	 	Following any audit, Dana’s will conduct (in the case of an internal audit), or
request the Dana Auditors to conduct, an exit conference with Service Provider to
obtain factual concurrence with issues identified in the review.
	 
	 	(C)	 	Dana will provide Service Provider with notice at least seventy-two (72) hours
prior to any operational or financial audit by Dana or the Dana Auditors; provided that
such notice will be waived if waiver is required by Law.
	 
	 	(D)	 	Prior to receiving access to Service Provider Proprietary Information, the Dana
Auditors (other than government auditors and examiners) will execute a confidentiality
agreement substantially in the form attached hereto as Schedule 13 (Form of
Confidentiality Agreement).

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ARTICLE 18. RELATIONSHIP MANAGEMENT

	18.1	 	Governance Guidelines and Principles. Governance of the Parties’ relationship under
this Agreement will follow the guidelines and principles set forth in Schedule 4 (Governance),
as such guidelines and principles are amended or supplemented by the Parties from time to time
during the Term.

	18.2	 	Responsibilities. Each of Dana and Service Provider will make management decisions in
a timely manner and perform its responsibilities set forth in this Agreement.
	 
	18.3	 	Dana Appointments. Dana will appoint:

	 	(A)	 	a Dana Relationship Manager to manage the operation of this Agreement, in
accordance with its terms, for Dana. Wherever Dana’s approval is required under this
Agreement, Dana will only give that approval through the Dana Relationship Manager or a
duly authorized delegate of the Dana Relationship Manager, except as contemplated by
this Article or Schedule 4 (Governance). Service Provider agrees that it will not rely
on the apparent or ostensible authority of any other Dana personnel in relation to this
Agreement, except as contemplated by this Article or Schedule 4 (Governance); and
	 
	 	(B)	 	a Dana Operational Executive to manage day-to-day operations.

	18.4	 	Service Provider Appointments. Service Provider will appoint:

	 	(A)	 	a Service Provider Relationship Manager to manage the operation of this
Agreement, in accordance with its terms, for Service Provider. Wherever Service
Provider’s approval is required under this Agreement, Service Provider will only give
that approval through Service Provider Relationship Manager or a duly authorized
delegate of Service Provider Relationship Manager, except as contemplated by this
Article or Schedule 4 (Governance). Dana agrees that it will not rely on the apparent
or ostensible authority of any other Project Staff in relation to this Agreement,
except as contemplated by this Article or Schedule 4 (Governance). Service Provider
will ensure that the Service Provider Relationship Manager is the single point of
contact for Dana for the purposes of this Agreement, has the authority and will be
given the responsibility to perform for Service Provider each of the tasks referred to
in Section 18.5 and is a full-time employee of Service Provider; and
	 
	 	(B)	 	a Service Provider Operational Executive to manage day-to-day operations.

	18.5	 	Role of Relationship Managers. The Relationship Managers (A) will meet at times as
set forth in Schedule 4 (Governance) or as otherwise agreed by the Parties, (B) will review
and discuss reports submitted by Service Provider, proposed changes to the Services or any
part of this Agreement, any audit or Benchmarking exercises, the status of individual
existing or planned Projects and financial performance, (C) as contemplated by Schedule 4
(Governance), will prepare a monthly executive summary report for Dana and Service Provider
reviewing Service Provider’s performance of the Services, (D) may raise any

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	 	 	issues of
concern or interest relating to this Agreement and (E) will work in good faith to resolve
any issues of concern in accordance with the procedures as set forth in Schedule 4
(Governance) and, if they are unable to resolve any issue, refer the matter to senior
management for resolution in accordance with Section 18.7.
	 
	18.6	 	Senior Executives. At Dana’s discretion, the GM, Global HR BTO of Service Provider
will meet with Dana’s VP, Human Resources to do any of the following:

	 	(A)	 	formally review this Agreement and discuss high level relationship and
performance issues; and
	 
	 	(B)	 	discuss the achievement of Dana’s business objectives and how Service Provider
is assisting Dana to achieve those objectives.

	18.7	 	Escalation Procedure for Relationship Issues. The Parties will follow the escalation
procedure set forth in Schedule 4 (Governance) to resolve any issues concerning this
Agreement.
	 
	18.8	 	Executive Level Meeting.

	 	(A)	 	Dana may convene a meeting, at Dana’s offices, with the VP, Global Industrial
Sector — BTO of Service Provider upon the occurrence of the following events (an
“Executive Level Meeting”):

	 	(1)	 	the customer satisfaction surveys described in Section 6.10 are
below the minimum acceptable level to be set forth in Schedule 5 (Service
Levels and Performance Credits); or
	 
	 	(2)	 	Service Provider fails to meet any single Service Level for any
three months out of any rolling six-month period.

	 	(B)	 	Any Executive Level Meeting will take place within 48 hours after notice by
Dana to Service Provider that it is invoking this subsection.

	18.9	 	Quarterly Budgeting. Within 90 days after the Effective Date and annually thereafter,
Service Provider will assist Dana in developing Dana’s annual and quarterly financial
objectives and budgets.

	18.10	 	Aligning Project Staff with Dana Objectives. A key performance measurement in
determining the incentive compensation for each of the Key Personnel, including the Service
Provider Relationship Manager and the Service Provider Operational Executive, will be based
upon mutually agreed alignment with, and achievement of, increased Dana satisfaction with
Service Provider’s performance of the Services as such satisfaction will be determined in
accordance with Section 6.10.

	18.11	 	Continuity of Services. Service Provider acknowledges that the timely and complete
performance of its obligations under this Agreement is critical to the business and operations
of Dana. Accordingly, in the event of a dispute between Dana and Service 

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	 	 	Provider, subject to
Dana’s compliance with Section 15.8, Service Provider will not interrupt its provision of
Services to Dana, refuse to perform any obligations related to termination, disable any
Equipment or Software used to provide Services or engage in any act or omission that prevents,
impedes or reduces in any way the provision of Services or Dana’s ability to conduct its
business, unless and until this Agreement expires or is terminated in accordance with its
terms or until such action has been authorized by the final and non-appealable judgment of a
court of competent jurisdiction.

ARTICLE 19. CONTRACT MANAGEMENT

	19.1	 	Policies and Procedures Manual. No less than 30 days prior to each Transformation
Date for each Phased Service Component Service Provider will create and deliver to Dana a
draft of the policies and procedures that apply to the Phased Service Component (collectively,
the “Policies and Procedures Manual”). The final Policies and Procedure Manual will be
delivered no later than 30 days after the Transformation Date. The content of the Policies and
Procedures Manual will be as outlined in Schedule 9 (Outline of Policies and Procedures
Manual). Service Provider will periodically prepare and provide to Dana updates to such
Policies and Procedures Manual to reflect any changes in the procedures described therein as
soon as practicable after such changes are made; provided that any changes to the form and
scope of the Policies and Procedures Manual will be agreed upon by Dana and Service Provider
in accordance with the Change Control Procedures. Service Provider will update the Policies
and Procedures Manual to address changes required by the addition of New Services.

	19.2	 	Change Control Procedures. The Parties will comply with the Change Control Procedures
set forth in Schedule 4 (Governance). Any change in the manner in which Services are provided
will be subject to the Change Control Procedures.

ARTICLE 20. PROPRIETARY RIGHTS

	20.1	 	Dana Software and Dana Tools.

	 	(A)	 	As between the Parties, Dana is the exclusive owner of the Dana Proprietary
Software and the Dana Proprietary Tools and Service Provider will have no rights or
interests in the Dana Proprietary Software or the Dana Proprietary Tools except as set
forth in this Agreement.
	 
	 	(B)	 	Dana hereby grants to Service Provider, during the Term and the Termination
Assistance Period and solely to provide the Services, a non-exclusive,
non-transferable, limited right to have access to and (1) Use (and as required to
provide the Services, to maintain, modify, enhance or create derivative works of) the
Dana Proprietary Software and the Dana Proprietary Tools, (2) Use (and as required to
provide the Services, to maintain, modify, enhance or create derivative works of) the
Dana Third Party Software and the Dana Third Party Tools, to the
extent permissible under the applicable third-party agreements, and (3) Use (and as
required to provide the Services, to maintain, modify, enhance or create derivative
works of) any Related Documentation in Dana’s possession on or after 

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	 	 	 	the Commencement Date, to the extent permissible under the applicable third-party
agreements. Schedule 16 (Software and Tools) sets forth the Dana Software and the
Dana Tools that Service Provider will use to provide the Services as of the
Commencement Date. Service Provider may sublicense, to the extent permissible under
the applicable third-party agreements, to Service Provider Agents the right to have
access to and Use (and as required to provide the Services, to maintain, modify,
enhance or create derivative works of) the Dana Software and the Dana Tools solely
to provide those Services that such Service Provider Agents are responsible for
providing.

	20.2	 	Service Provider Software and Tools.

	 	(A)	 	As between the Parties, Service Provider is the exclusive owner of the Service
Provider Proprietary Software and the Service Provider Proprietary Tools and the Dana
Group will have no rights or interests in the Service Provider Proprietary Software or
the Service Provider Proprietary Tools except as set forth in this Agreement. Schedule
16 (Software and Tools) sets forth the Service Provider Software and Service Provider
Tools that Service Provider anticipates Service Provider will use to provide the
Services as of the Effective Date.
	 
	 	(B)	 	During the Term and during the Termination Assistance Period, Service Provider
will provide the Dana Group with such access to the Service Provider Software and the
Service Provider Tools as necessary or appropriate to enable the Dana Group Companies
to receive the benefit of the Services.
	 
	 	(C)	 	Service Provider will grant to the Dana Group Companies, effective upon the End
Date, to the extent necessary for Dana to achieve continuity of Service delivery:

	 	(1)	 	a global, perpetual, non-exclusive, non-transferable (except to
Affiliates of Dana or under a Restructure or Change in Control of Dana) license
to Use, and sublicense, and to permit a third party to Use solely in connection
with providing services to the Dana Group, the commercially available Service
Provider Proprietary Software and Service Provider Proprietary Tools, on
Service Provider’s customary terms but without payment of any one-time
licensing fees; and
	 
	 	(2)	 	a global, perpetual, non-exclusive, non-transferable (except to
Affiliates of Dana or under a Restructure or Change in Control of Dana), fully
paid-up license to Use, solely in connection with providing services to the
Dana Group, Service Provider Proprietary Software and Service Provider
Proprietary Tools that are not commercially available, on an AS-IS basis.

	 	(D)	 	Service Provider will grant to the Dana Group Companies, effective upon the End
Date, to the extent necessary for Dana to achieve continuity of Service delivery, a
perpetual, non-exclusive license for Dana and its designees to Use the Service
Provider Third Party Software and Service Provider Third Party Tools then being used
to provide Services at no additional charge to Dana (other than the recurring

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	 	 	 	license or maintenance fees then being paid to the supplier of such Software or
Tools by Service Provider). The license set forth in this subsection (D) will not
apply to any Service Provider Third Party Software or Service Provider Third Party
Tools to the extent Dana has consented under subsection (E) below to the use of such
Software and Tools in providing Services after notice from Service Provider that
Service Provider cannot procure sufficient rights from the supplier to grant the
foregoing license.
	 
	 	(E)	 	Before employing any third-party products in providing the Services, other than
the Service Provider Third Party Software and Service Provider Third Party Tools
identified in Schedule 16 (Software and Tools), Service Provider will to the extent
necessary for Dana to achieve continuity of Service delivery (1) obtain sufficient
rights from the supplier to grant the licenses set forth in subsection (D) above; and
(2) verify that Dana and its designees, for the purpose of providing services to Dana,
have the right to purchase ongoing maintenance and support for such products on
commercially reasonable terms. To the extent that Service Provider is unable to obtain
such rights, Service Provider will only introduce such third-party products for use in
providing the Services with Dana’s prior written consent as to the specific product to
be introduced.

	20.3	 	Work Product. Work Product will be owned by Dana. Dana will have all right, title and
interest, including worldwide ownership of copyrights, in and to the Work Product and all
copies made from them. Service Provider hereby irrevocably assigns, transfers and conveys, and
will cause Service Provider Agents to assign, transfer and convey, to Dana without further
consideration all of its and their right, title and interest in and to such Work Product,
including all rights of copyright, in and to such materials. Service Provider acknowledges,
and will cause Service Provider Agents to acknowledge, that Dana and the successors and
permitted assigns of Dana may obtain and hold in their own name any intellectual property
rights in and to such Work Product. Service Provider agrees to execute, and will cause Service
Provider Agents to execute, any documents or take any other actions as may reasonably be
necessary, or as Dana may reasonably request, to perfect Dana’s ownership of any such Work
Product. In the case of Work Product constituting Software, Service Provider will deliver to
Dana a complete copy of the Software source code. With respect to each disclosure, Service
Provider will indicate any features or concepts that it believes to be new or different.
Service Provider retains a global, perpetual, irrevocable and non-exclusive license to Use,
modify and create derivative works of Code Fragments contained in a Work Product. A “Code
Fragment” means a sub-routine or immaterial portion of its source code (determined in relation
to the functionality of the Work Product as a whole). Service Provider will not combine Code
Fragments to create a product functionally equivalent to the Work Product containing such Code
Fragments.

	20.4	 	Interface Information. During the Term of this Agreement, Service Provider will
provide Dana with appropriate interface information to enable Dana to develop or replace any
Software used to provide the Services that is not commercially available. After the
termination or expiration of this Agreement, Service Provider will provide Dana with
appropriate interface information available from Service Provider to enable Dana to

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	 	 	develop
or replace any Service Provider Software if necessary for Dana to exercise any of the rights
granted to it under this Agreement.
	 
	20.5	 	Residual Information. Nothing contained in this Agreement will restrict either Party
from using Residual Information; provided that the use does not (1) infringe or misappropriate
any patents or copyrights of the other Party or any third parties, (2) disclose any
Confidential Information that identifies or may be used to identify the other Party to any
third parties or (3) ***.

ARTICLE 21. DATA

	21.1	 	Ownership of Dana Data. All Dana Data is, or will be, and will remain the property of
Dana. Without Dana’s approval (in its sole discretion), Dana Data will not be (A) used by
Service Provider or Service Provider Agents other than in connection with providing the
Services, (B) disclosed, sold, assigned, leased or otherwise provided to third parties by
Service Provider or Service Provider Agents or (C) commercially exploited by or on behalf of
Service Provider or Service Provider Agents. Service Provider hereby irrevocably assigns,
transfers and conveys, and will cause Service Provider Agents to assign, transfer and convey,
to Dana without further consideration all of its and their right, title and interest in and to
Dana Data. Upon request by Dana, Service Provider will execute and deliver, and will cause
Service Provider Agents to execute and deliver, any documents that may be necessary or
desirable under any Law to preserve, or enable Dana to enforce, its rights with respect to
Dana Data.

	21.2	 	Return of Data. Upon request by Dana at any time during the Term and upon expiration
or termination of this Agreement, Service Provider will (A) promptly return to Dana, in the
format and on the media reasonably requested by Dana, all or any part of Dana Data and (B)
erase or destroy all or any part of Dana Data in Service Provider’s possession, in each case
to the extent so requested by Dana and as permitted by applicable Law.

ARTICLE 22. CONFIDENTIALITY

	22.1	 	Use and Disclosure. All Confidential Information relating to a Party will be held in
confidence by the other Party to the same extent and with at least the same degree of care as
such Party protects its own confidential or proprietary information of like kind and import,
but in no event using less than a reasonable degree of care or that which is required by law.
Neither Party will disclose, duplicate, publish, release, transfer or otherwise make available
Confidential Information of the other Party in any form to, or for the use or benefit of, any
person or entity without the other Party’s consent. Each Party will, however, be permitted to
disclose relevant aspects of the other Party’s Confidential Information to its officers,
agents, subcontractors and employees to the extent that such disclosure is reasonably
necessary for the performance of its duties and obligations or the exercise of its rights
under this Agreement and such disclosure is not prohibited by applicable Law. Each Party will
establish commercially reasonable controls

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	 	 	to ensure that Confidential Information is not disclosed contrary to the provisions of this
Agreement or any applicable Laws. To the extent that any duties and responsibilities under
this Agreement are delegated to an Agent, the delegating Party will ensure that such Agent
adheres to the requirements of this Section.
	 
	22.2	 	Required Disclosure. If either Party or an agent of either Party is requested or
required by any Governmental Authority, whether by oral question, interrogatories, requests
for information or documents, subpoenas, civil investigation or similar process, to disclose
any of the Confidential Information of the other Party, such Party will, to the extent
permitted, provide the other Party with prompt notice of such requests so that the other Party
may seek an appropriate protective order or similar relief or, if appropriate, waive
compliance with the provisions of this Article. Such Party will use all commercially
reasonable efforts to obtain, or assist the other Party in obtaining, such a protective order
or relief.
	 
	22.3	 	Unauthorized Acts. Without limiting either Party’s rights as to a breach of this
Article, each Party will:

	 	(A)	 	promptly notify the other Party of any unauthorized possession, use or
knowledge, or attempt thereof, of the other Party’s Confidential Information by any
person or entity that may become known to such Party;
	 
	 	(B)	 	promptly furnish to the other Party full details of the unauthorized
possession, use or knowledge, or attempt thereof, and assist the other Party in
investigating or preventing the recurrence of any unauthorized possession, use or
knowledge, or attempt thereof, of Confidential Information;
	 
	 	(C)	 	cooperate with the other Party in any litigation and investigation against
third parties deemed necessary by the other Party to protect its proprietary rights to
the extent such litigation or investigation relates to the Services; and
	 
	 	(D)	 	promptly use its best efforts to prevent a recurrence of any such unauthorized
possession, use or knowledge, or attempt thereof, of Confidential Information.

	 	 	Each Party will bear the cost it incurs as a result of compliance with this Section.
	 
	22.4	 	Return of Confidential Information. Upon request at expiration or termination of this
Agreement, each Party will (A) promptly return to the other Party all of the Confidential
Information of the other Party and (B) erase or destroy all of the Confidential Information of
the other Party in its possession, except, with respect to Dana, such Confidential Information
of Service Provider contained in the Service Provider Software or the Service Provider Tools
licensed to the Dana Group Companies after such expiration or termination.
	 
	22.5	 	Business Associate Agreement. Service Provider may be considered a “Business
Associate” of Dana as defined in the HIPAA privacy and security standards. The Parties agree
to execute the business associate agreement attached as Schedule 17 (Business Associate
Agreement) on or before the Effective Date, to apply to the extent Service

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	 	 	Provider is a Business Associate. The Parties
further agree to revise the business associate
agreement from time to time to reflect changes
necessary (as reasonably determined by Dana) to
maintain compliance with applicable HIPAA
privacy and security requirements.
	 
	22.6	 	Data Protection Laws.

	 	(A)	 	Dana retains sole authority for determining and approving the purposes of
Service Provider’s processing of Dana Data, and Dana is responsible for obtaining all
necessary consents in order to transfer data to, and to have such data processed by,
Service Provider and Service Provider Agents for processing by them in accordance with
this Agreement. It is the intention of the Parties that Dana and the applicable Dana
Affiliates are the data controllers, and Service Provider and the Service Provider
Agents are the data processors.
	 
	 	(B)	 	Service Provider and each Service Provider Agent shall comply with the
following obligations in respect of any Dana Data transferred to Service Provider or
the Service Provider Agent under this Agreement:

	 	(1)	 	Service Provider or the Service Provider Agent shall process
Dana Data only for the purpose of providing the Services.
	 
	 	(2)	 	Service Provider and each Service Provider Agent shall:

	 	(a)	 	to the extent required of Service Provider or
Service Provider Agent under applicable data protection Laws, maintain
at all times a valid, up to date notification/registration covering all
of processing of personal data contained in the Dana Data;
	 
	 	(b)	 	take the agreed-upon operational and technical
security measures, as approved by Dana, to ensure that the Dana Data is
secure from unauthorized access or disclosure and take all other
operational and technical security measures required of Service
Provider or Service Provider Agent by applicable Law;
	 
	 	(c)	 	not transfer to nor direct any person to
process any Dana Data without the specific prior written approval of
Dana;
	 
	 	(d)	 	ensure that the Dana Data is only accessible to
employees of Service Provider and Service Provider Agent employees (and
authorized subcontractors), who reasonably need such access for the
purpose of providing the Services;
	 
	 	(e)	 	ensure that Dana Data received from Dana or a
Dana Affiliate in the European Economic Area is only processed in
accordance with the Policies and Procedures Manual, including any
geographical restrictions on the processing of such Data;

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	 	(f)	 	inform Dana immediately if Service Provider or
a Service Provider Agent receives any inquiry from any governmental
official charged with the enforcement of data protection Laws relating
to the provision of the Services; and
	 
	 	(g)	 	timely provide to Dana reasonable support in
responding to any request for information from a data subject in
accordance with the requirements of applicable data protection Laws
and, to the extent required under applicable Law, Service Provider and
Service Provider Agent will timely respond to any such request.

As used in this Section 22.6, the terms “process”, “data controller”, “data
processor” and “data subject” shall have the meanings given to them in the 1995 EU
Privacy Directive. The Parties will enter into data protection agreements to the
extent necessary to comply with applicable Laws.

ARTICLE 23. REPRESENTATIONS AND WARRANTIES

	23.1	 	By Dana. Dana represents and warrants that as of the Effective Date:

	 	(A)	 	it is a corporation duly incorporated, validly existing and in good standing
under the Laws of the Commonwealth of Virginia;
	 
	 	(B)	 	Dana has all requisite corporate power and authority to execute, deliver and
perform its obligations under this Agreement;
	 
	 	(C)	 	the execution, delivery and performance of this Agreement by Dana (1) has been
duly authorized by Dana and (2) will not conflict with, result in a breach of or
constitute a default under any other agreement to which Dana is a party or by which
Dana is bound;
	 
	 	(D)	 	Dana is duly licensed, authorized or qualified to do business and is in good
standing in every jurisdiction in which a license, authorization or qualification is
required for the ownership or leasing of its assets or the transaction of business of
the character transacted by it, except where the failure to be so licensed, authorized
or qualified would not have a material adverse effect on Dana’s ability to fulfill its
obligations under this Agreement;
	 
	 	(E)	 	Dana is in compliance with all Laws applicable to Dana, and has obtained all
applicable permits and licenses required of Dana, in connection with its obligations
under this Agreement; and
	 
	 	(F)	 	there is no outstanding litigation, arbitrated matter or other dispute to which
Dana is a party that, if decided unfavorably to Dana, would reasonably be expected to
have a material adverse effect on Service Provider’s or Dana’s ability to fulfill their
respective obligations under this Agreement.

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	23.2	 	By Service Provider. Service Provider represents and warrants that as of the
Effective Date:

	 	(A)	 	Service Provider is a corporation duly incorporated, validly existing and in
good standing under the Laws of the State of New York;
	 
	 	(B)	 	Service Provider has all requisite corporate power and authority to execute,
deliver and perform its obligations under this Agreement;
	 
	 	(C)	 	the execution, delivery and performance of this Agreement by Service Provider
(1) has been duly authorized by Service Provider and (2) will not conflict with, result
in a breach of or constitute a default under any other agreement to which Service
Provider is a party or by which Service Provider is bound;
	 
	 	(D)	 	Service Provider is duly licensed, authorized or qualified to do business and
is in good standing in every jurisdiction in which a license, authorization or
qualification is required for the ownership or leasing of its assets or the transaction
of business of the character transacted by it, except where the failure to be so
licensed, authorized or qualified would not have a material adverse effect on Service
Provider’s ability to fulfill its obligations under this Agreement;
	 
	 	(E)	 	Service Provider is in compliance with all Laws applicable to Service Provider,
and has obtained all applicable permits and licenses required of Service Provider, in
connection with its obligations under this Agreement;
	 
	 	(F)	 	the Service Provider Proprietary Software, the Service Provider Proprietary
Tools and the Service Provider Equipment do not infringe upon or misappropriate the
proprietary rights of any third party;
	 
	 	(G)	 	there is no claim or proceeding pending or, to Service Provider’s knowledge,
threatened alleging that any of the Service Provider Proprietary Software, the Service
Provider Proprietary Tools or the Service Provider Equipment infringes or
misappropriates the proprietary rights of any third party which would reasonably be
expected to have a material adverse effect on Service Provider’s ability to fulfill its
obligations under this Agreement;
	 
	 	(H)	 	to Service Provider’s knowledge, there is no claim or proceeding pending or
threatened alleging that any of the Service Provider Third Party Software or the
Service Provider Third Party Tools identified in Schedule 16 (Software and Tools)
infringes or misappropriates the proprietary rights of any third party which would
reasonably be expected to have a material adverse effect on Service Provider’s ability
to fulfill its obligations under this Agreement;
	 
	 	(I)	 	there is no outstanding litigation, arbitrated matter or other dispute to which
Service Provider is a party that, if decided unfavorably to Service Provider, would
reasonably be expected to have a material adverse effect on Dana’s or Service
Provider’s ability to fulfill their respective obligations under this Agreement;

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	 	(J)	 	there is no code in the Service Provider Proprietary Software or the Service
Provider Proprietary Tools that would have the effect of disabling or otherwise
shutting down all or any portion of the Services or any such Software or Tools;
	 
	 	(K)	 	to Service Provider’s knowledge, there is no code in the Service Provider Third
Party Software or the Service Provider Third Party Tools that would have the effect of
disabling or otherwise shutting down all or any portion of the Services or any such
Software or Tools;
	 
	 	(L)	 	each Deliverable provided under this Agreement (including Work Product) will be
free from material errors in operation and performance, comply with applicable
documentation and specifications in all material respects and provide the functions and
features, and operate in the manner, described in the Schedule, Work Order or other
document applicable to such Deliverable for 12 months after installation, testing and
acceptance, or such other period as may be specified in the Schedule, Work Order or
other document applicable to such Deliverable;
	 
	 	(M)	 	the Services and any Deliverables provided by Service Provider under this
Agreement are and will be capable of supporting the Euro as a main or additional
currency; and
	 
	 	(N)	 	Service Provider has not violated any applicable Law, or any Dana policies of
which Service Provider has been given notice, regarding the offering of unlawful
inducements in connection with this Agreement.

	23.3	 	DISCLAIMER. EXCEPT AS SPECIFIED IN SECTION 23.1 or SECTION 23.2, NEITHER DANA NOR
SERVICE PROVIDER MAKES ANY OTHER WARRANTIES AND EACH EXPLICITLY DISCLAIMS ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 24. ADDITIONAL COVENANTS

	24.1	 	By Dana. Dana covenants and agrees with Service Provider that during the Term and the
Termination Assistance Period:

	 	(A)	 	Dana will comply with all Laws applicable to its performance of the
responsibilities set forth in Schedule 8 (Dana Operational Responsibilities and
Resources) and otherwise to Dana in connection with its obligations under this
Agreement.
	 
	 	(B)	 	Except as otherwise provided in this Agreement, Dana will obtain all applicable
permits and licenses, including the Dana Governmental Approvals and the Dana Consents,
required of Dana in connection with its obligations under this Agreement.

	24.2	 	By Service Provider. Service Provider covenants and agrees with Dana that during the
Term and the Termination Assistance Period:

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	 	(A)	 	Service Provider will comply with all Laws applicable to its provision of the
Services and otherwise to Service Provider in connection with its obligations under
this Agreement; provided that Service Provider will not be liable under this subsection
(A):

	 	(1)	 	for a violation of Law during the Transformation Period, caused
by Service Provider’s performing any Service in the same manner in which the
Service was performed by Dana before the Commencement Date for the applicable
Phased Service Component, unless another manner of performing the Service is
specified in Schedule 2 (Statement of Work) or expressly requested by Dana (but
Service Provider will promptly notify Dana of any such non-compliance
identified by Service Provider and Service Provider will take affirmative
steps, in accordance with the terms of this Agreement, to remedy such
non-compliance on an expedited basis);
	 
	 	(2)	 	for a violation of Law caused by Service Provider’s complying
with any Dana Compliance Directive; or
	 
	 	(3)	 	for a violation of Law by Dana in performing its retained
responsibilities of Schedule 2 (Statement of Work) or violation of Laws by Dana
in the operation of Dana’s business.

	 	 	 	For purposes of this subsection (A), “Dana Compliance Directive” means written
instructions to Service Provider regarding compliance with any Law, and any changes
to the Services required to maintain or achieve such compliance. Dana may issue Dana
Compliance Directives from time to time on its own initiative and, in any event,
will issue a Dana Compliance Directive within 30 days after receiving Service
Provider’s written request for a Dana Compliance Directive as to how one or more
specific responsibilities, tasks, procedures or processes should be carried out or
modified in order to comply with applicable Law. In such request, Service Provider
shall include a reasonable level of detail regarding available alternatives and
Service Provider’s recommended course of action and reasons therefor.
	 
	 	(B)	 	If any change in Law prevents Service Provider from performing its obligations
under this Agreement, Service Provider will develop and, upon Dana’s approval,
implement a suitable workaround until such time as Service Provider can implement
appropriate changes to the Services or otherwise perform its obligations under this
Agreement without such workaround. Service Provider will implement any workarounds or
changes to the Services required by a change in Law at no additional charge to Dana, if
the workaround or change (1) is required as a consequence of the outsourced nature of
the Services, and is generally applicable to Service Provider’s other customers, (2)
would result in no net cost to Service Provider due to cost savings from implementing
the change or (3) can be implemented using the resources then being used to provide the
Services without adversely affecting its ability to provide the Services and meet the
Service Levels. If the workaround or change will require the payment of additional
Fees, then

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	 	 	 	Dana may terminate the affected portion of the Services without observing the cure
period otherwise required by Section 25.4 and the Parties will negotiate and
implement an equitable reduction in the Fees.
	 
	 	(C)	 	Service Provider will obtain all applicable permits and licenses, including the
Service Provider Governmental Approvals and the Service Provider Consents, required of
Service Provider in connection with its obligations under this Agreement.
	 
	 	(D)	 	Without limiting any other Service Provider obligations, in providing the
Services Service Provider will comply at all times with all applicable terms and
conditions of Dana’s collective bargaining agreements and other agreements affecting
Dana’s labor relations as they are communicated in writing to Service Provider to the
extent that Service Provider received such communication prior to implementing the
Services.
	 
	 	(E)	 	If any Deliverable fails to perform in accordance with the warranties set forth
in this Agreement, a Work Order, a New Service Schedule or other applicable document,
Service Provider will correct any non-conformance of a Deliverable (and redeliver such
corrected Deliverable) as soon as possible using appropriate resources which will not
be charged to Dana and with no material adverse impact on the performance of other
Services.
	 
	 	(F)	 	Service Provider (1) will not intentionally code or introduce any virus or
similar items into the Dana Software, the Retained Systems, the Work Product or the
Service Provider Systems and (2) will use commercially reasonable efforts to screen the
Dana Software, the Work Product and the Service Provider Systems for the purpose of
avoiding the coding or introduction of any virus or similar items into the Dana
Software, the Work Product and the Service Provider Systems. If a virus or similar item
is found to have been introduced into the Dana Software, the Retained Systems, the Work
Product or the Service Provider Systems, Service Provider will assist Dana in reducing
the effects of the virus or similar item and, if the virus or similar item causes a
loss of operational efficiency or loss of data or creates a security risk, will assist
Dana to the same extent to mitigate and restore such losses and mitigate such risk.
	 
	 	(G)	 	Without the consent of Dana, Service Provider will not insert into (1) the Dana
Software or the Retained Systems, (2) the Work Product, (3) the Service Provider
Software or the Service Provider Tools that Dana has the right to access or Use or (4)
the Software or Tools used to provide the Services any code that would have the effect
of disabling or otherwise shutting down all or any portion of the Services, any such
Software or Tools or the Retained Systems.
	 
	 	(H)	 	With respect to any disabling code that may be part of (a) the Service Provider
Software or the Service Provider Tools that Dana has the right to access or Use or (b)
the Software or Tools used to provide the Services, Service Provider will not

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	 	 	 	invoke such disabling code at any time during the Term or the Termination Assistance
Period without Dana’s consent.
	 
	 	(I)	 	Service Provider will maintain Equipment and Software used to provide the
Services so that they operate in accordance with their specifications, including (1)
maintaining Equipment in good operating condition, subject to normal wear and tear, (2)
undertaking repairs and preventive maintenance on Equipment in accordance with the
applicable Equipment manufacturer’s recommendations and (3) performing Software
maintenance in accordance with the applicable Software vendor’s documentation and
recommendations.
	 
	 	(J)	 	Service Provider will perform the Services and develop the Deliverables with
promptness, diligence and in a workmanlike manner, in accordance with the practices and
professional standards used in well-managed operations providing services similar to
the Services.
	 
	 	(K)	 	Service Provider will use adequate numbers of qualified individuals with
suitable training, education, experience and skill to perform the Services.

	24.3	 	Changes in Laws. Each Party will use reasonable efforts to promptly advise the other
Party of any changes in Laws of which such Party becomes aware that affect the performance
and/or receipt of Services under this Agreement. This Section 24.3 does not impose on either
Party an affirmative obligation of inquiry or relieve either Party of its obligations
hereunder.

ARTICLE 25. TERMINATION

	25.1	 	Termination for Convenience. Effective as of any time after the Effective Date, Dana
may terminate this Agreement for convenience by giving Service Provider at least *** days’
notice of such termination, provided that prior to the first Commencement Date, only *** day’s
notice of termination need be given.

	25.2	 	Termination for Change in Control of Dana. In the event of a Change in Control of
Dana, Dana may, by giving Service Provider at least *** days’ notice of such termination,
terminate this Agreement in its sole discretion, provided that such notice must be given
within *** days after the Change in Control occurs.

	25.3	 	Termination for Change in Control of Service Provider. In the event of a Change in
Control of Service Provider, Dana may, by giving Service Provider at least *** days’ notice of
such termination, terminate this Agreement in its sole discretion if Dana reasonably believes
the new ownership would negatively impact Dana’s reputation in the marketplace or the Change
in Control involves a Dana Competitor, provided that such notice must be given within *** days
after the Change in Control occurs.

	25.4	 	Termination by Dana for Cause. If Service Provider (1) materially breaches any of its
material duties or obligations under this Agreement and fails to cure such breach within the
Default Cure Period, (2) materially breaches any of its material duties or obligations under
this Agreement and the breach is not reasonably susceptible to cure within the

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	 	 	Default Cure Period or (3) commits numerous breaches of its duties or obligations under this
Agreement that in the aggregate are material, then Dana may, by giving notice to Service
Provider, terminate this entire Agreement or the Services affected by the breach effective
as of the termination date specified in the notice of termination. If Dana terminates only
the Services affected by the breach under this Section 25.4, the Fees will be equitably
adjusted to reflect those Services that are not terminated.
	 
	25.5	 	Termination for Failure to Complete Transformation. If (i) Service Provider has not
successfully completed the Transformation of the first two Phased Service Components by ***,
or (ii) Service Provider has not successfully completed the Transformation of all of the
Phased Service Components by ***, then Dana may, by giving notice to Service Provider,
terminate, as of the termination date specified in the notice of termination, this Agreement
or, at Dana’s option, the uncompleted Phased Service Components.
	 
	25.6	 	Service Level Termination Event. If Service Provider falls below *** of the Minimum
Service Level as defined in Schedule 5 (Service Levels and Performance Credits) for ***, then
Dana may, by giving notice to Service Provider, terminate this Agreement as of the termination
date specified in the notice of termination.
	 
	25.7	 	Termination for Failure to Provide Adequate Assurance of Due Performance. Dana may
terminate this Agreement by giving *** days’ notice to Service Provider if Dana has reasonable
grounds to determine that Service Provider may fail to perform its material obligations under
this Agreement and Service Provider cannot provide Dana with adequate assurance as to Service
Provider’s ability to perform its obligations under this Agreement consistently and in a
sustained manner within such *** day period.
	 
	25.8	 	Termination by Service Provider for Cause. Service Provider may terminate this
Agreement, effective as of a date specified in a written notice of termination, if and only if
Dana breaches its duty to pay undisputed Fees, or to escrow any disputed Fees as required by
Section 15.8, and fails to cure the breach within *** days following its receipt of Service
Provider’s notice of termination.
	 
	25.9	 	Termination for Insolvency Event. Either Party may, by giving notice to the other
Party, terminate this Agreement upon the occurrence of an Insolvency Event affecting the other
Party.
	 
	25.10	 	Termination for Failure to Maintain Adequate Controls. Without limiting Dana’s
termination rights under Section 25.4, in the event Service Provider fails to provide annually
a current unqualified Type II report as required in Section 17.3(B), ***.

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	25.11	 	Other Terminations. In addition to the
provisions of this Article, this Agreement
or the applicable portions of the Services
under this Agreement may be terminated as
provided in Section 13.3, Section 15.11
and subsection (B) of Section 24.2.

ARTICLE 26. TERMINATION FEES

	26.1	 	Termination Fees. If Dana terminates this Agreement, Service Provider will be
entitled to such fee (“Termination Fee”) as determined in accordance with Schedule 6 (Fees).
Except for the Termination Fee or as set forth in Schedule 6 (Fees), no fee or other
compensation will be payable by Dana in connection with any expiration or termination of this
Agreement (in its entirety or as to selected Services), any change in Service volumes under
Section 3.3 or any insourcing or resourcing of Services under Section 3.5.

ARTICLE 27. TERMINATION ASSISTANCE

	27.1	 	Termination Assistance Services.

	 	(A)	 	No less than 30 days prior to each Transformation Milestone, Service Provider
will provide to Dana for its approval a draft plan for the disengagement and transfer
of that Transformation Milestone upon the expiration, termination, insourcing or
resourcing of such Services (including any terminations resulting from the Dana’s
divestiture of an entity, business unit or assets), (collectively, the “Disengagement
Plan”). Once approved, the document will be the Disengagement Plan for such Services.
The Disengagement Plan will, as reasonably foreseeable:

	 	(1)	 	specify Key Personnel and other resources that will be used to
perform Termination Assistance Services;
	 
	 	(2)	 	provide an estimate of incremental Fees for the additional
resources required to provide the Termination Assistance Services;
	 
	 	(3)	 	specify substantially all activities necessary to carry out the
Termination Assistance Services as efficiently as reasonably possible;
	 
	 	(4)	 	specify such training and documentation reasonably required for
Dana to understand and operate the Software and Tools used by Service Provider
to provide the Services, including (a) configuration data for such Software and
Tools and (b) scripts and customizations of such Software and Tools; and

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	 	(5)	 	set out a timetable and process for effecting Termination Assistance
Services that will enable Dana to have completed disengagement as quickly as
reasonably possible without materially disrupting the quality of the
Services and without limiting Service Provider’s obligation to meet the
Service Levels during the Termination Assistance Period.

	 	(B)	 	Service Provider will keep the Disengagement Plan up to date during the Term by
updating the Disengagement Plan, from time to time, as necessary to take into account
changes to the Services and New Services and submitting such updates to Dana for
approval. Upon approval such updates will be incorporated into the Disengagement Plan.
	 
	 	(C)	 	Upon the expiration or termination of this Agreement or Service Provider
ceasing to provide the Services for any reason, or the insourcing or resourcing of
Services under this Agreement, Service Provider will provide the Termination Assistance
Services in accordance with the Disengagement Plan. Termination Assistance Services
constituting the continuance of existing Services that do not specifically relate to
such expiration, termination, insourcing or resourcing will be performed during the
Termination Assistance Period at the same rates as during the Term. Termination
Assistance Services that relate specifically to the expiration, termination, insourcing
or resourcing, and that cannot be provided by Key Personnel or other existing resources
without unreasonably risking, in Dana’s opinion, adverse impact to Service Provider’s
ability to provide the Services, will be provided at the applicable rates set forth
therefor in Schedule 6 (Fees) or, if the applicable rates are not set forth in Schedule
6 (Fees), at Service Provider’s rates in effect for such services immediately before
the expiration, termination, insourcing or resourcing. Dana’s determination to accept
risks of adverse impact will relieve Service Provider from any consequences of such
adverse impact.
	 
	 	(D)	 	The quality and level of performance of the applicable Services during the
Termination Assistance Period will not be degraded as compared to the quality and level
of performance of such Services before such Termination Assistance Period. Without
limiting the foregoing, during the Termination Assistance Period, Service Provider will
(1) provide to Dana and potential successors designated by Dana such information as
Dana may reasonably request relating to the number and respective functions of the
members of the Project Staff performing Services, (2) not make any material changes to
the level of Service and (3) not reassign Service Provider’s employees or contractors
away from performance of functions under this Agreement (until Dana has had an
opportunity to meet with and attempt to hire such personnel as described in Section
27.3 and except to the extent otherwise mutually agreed by the Parties in order to
mitigate Termination Fees).
	 
	 	(E)	 	After the expiration of the Termination Assistance Period, Service Provider
will (1) answer questions from Dana regarding the terminated, insourced or resourced
Services on an “as needed” basis at Service Provider’s then-standard billing rates and
(2) deliver to Dana any remaining Dana-owned reports and documentation

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	 	 	 	relating to the terminated, insourced or resourced services still in Service
Provider’s possession.

	27.2	 	Exit Rights. Upon the later of (A) the expiration or termination of this Agreement
and (B) the last day of any Termination Assistance Period (the “End Date”):

	 	(A)	 	The rights granted to Service Provider and Service Provider Agents in Section
20.1 will immediately terminate and Service Provider will, and, to the extent Dana does
not possess a current copy of the Dana Software, will cause Service Provider Agents to
(1) deliver to Dana, at no cost to Dana, a current copy of the Dana Software in the
form in use as of the End Date and (ii) destroy or erase all other copies of the Dana
Software in Service Provider’s or Service Provider Agents’ possession. Service Provider
will, upon Dana’s request, certify to Dana that all such copies have been destroyed or
erased.
	 
	 	(B)	 	Upon Dana’s request, Service Provider will sell to Dana or its designee, free
and clear of all liens, security interests or other encumbrances, at the then current
fair market value any Equipment owned by Service Provider and being used by Service
Provider or Service Provider Agents primarily to perform the Services as of the End
Date.
	 
	 	(C)	 	Service Provider will, and will cause Service Provider Agents to, deliver to
Dana a copy of all Work Product, in the form in use as of the End Date.
	 
	 	(D)	 	Upon Dana’s request, Service Provider will, and will cause Service Provider
Agents to, transfer or assign to Dana or its designee, on terms and conditions
acceptable to all applicable parties, any agreements with third parties for the leasing
of Equipment, licensing of Software, maintenance services, disaster recovery services
or other third-party products or services, being used by Service Provider or Service
Provider Agents primarily to provide the Services as of the End Date (including any
Assigned Agreements), and Dana will assume the ongoing obligations under such
agreements that relate to periods after the End Date.
	 
	 	(E)	 	As to Service Provider Software and Service Provider Tools to be licensed to
Dana as provided in subsections (C) and (D) of Section 20.2, Service Provider will
deliver to Dana a copy of the Service Provider Software and Service Provider Tools, in
the form in use as of the End Date.

	27.3	 	Right to Hire Project Staff.

	 	(A)	 	Upon the delivery of a notice of intent to terminate or not renew this
Agreement, or upon an insourcing of part of the Services, as to the then current
members of the Project Staff providing the affected Services under this Agreement (each
an “Affected Project Staff Member”), Service Provider will, to the extent not
prohibited by applicable Law, (1) provide Dana with the name of each Affected Project
Staff Member and a description of job responsibilities, (2) provide Dana and its
designees, at their option, reasonable access, in a manner agreed upon by

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	 	 	 	the Parties to minimize any interference with Service Provider’s ability to provide
the Services and conduct its business, to such Affected Project Staff Members and
(3) allow Dana to meet with, solicit and hire, in a manner agreed upon by the
Parties to minimize any interference with Service Provider’s ability to conduct its
business, such Affected Project Staff Members as of the End Date.
	 
	 	(B)	 	Service Provider will waive any restrictions that may prevent any Affected
Project Staff Member from being hired by Dana or its designees under this Section.

	27.4	 	Termination Assistance upon Change in Services Volumes or Insourcing or Resourcing.
If there is (1) a change in Service volumes under Section 3.3, (2) an insourcing or resourcing
under Section 3.5, (3) any termination of Services under this Agreement under subsection (D)
of Section 6.7, (4) any termination of Services under this Agreement under Section 13.3 or (5)
any termination of Services under this Agreement under subsection (B) of Section 24.2, then
Section 27.2 and Section 27.3 will apply only in relation to those resources and other items
referred to in Section 27.2 (“Affected Resources”), and those Affected Project Staff Members,
that are associated with the Services to be changed, insourced, resourced or terminated. As
soon as practicable after Dana exercises any such right, Service Provider will notify Dana if
any such Affected Resources, or any such Affected Project Staff Members, are necessary for the
provision of the remaining Services and cannot be duplicated; whereupon Dana and Service
Provider will agree upon an appropriate allocation of such Affected Resources and Affected
Project Staff Members.

	27.5	 	Injunctive Relief. Without limiting the foregoing, Service Provider acknowledges and
agrees that Dana may be irreparably harmed if Service Provider were to fail or threaten not to
provide Dana with Termination Assistance Services, and that Dana may proceed directly to court
in any such case without observing any cure period otherwise applicable under this Agreement.

ARTICLE 28. INDEMNITIES

	28.1	 	Indemnities by Dana. Dana will indemnify Service Provider and its Affiliates against,
and defend and hold Service Provider and its Affiliates harmless from and against, any Losses
suffered, incurred or sustained by Service Provider or its Affiliates or to which Service
Provider or its Affiliates becomes subject, resulting from, arising out of or relating to any
third party claim:

	 	(A)	 	that the Dana Software or Dana Tools infringe upon or misappropriate the
proprietary or other rights of any third party; provided that Dana will not have any
indemnity obligation under this subsection (A) to the extent any infringement or
misappropriation relates to:

	 	(1)	 	any item of Dana Third Party Software or Dana Third Party Tool
that, with Service Provider’s specific prior written consent, is excluded from
indemnification under this subsection (A);

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	 	(2)	 	modifications made or authorized by Service Provider or a
Service Provider Agent, without the approval of Dana;
	 
	 	(3)	 	Service Provider’s use of the Dana Software or Dana Tools in
combination with products or services not furnished or approved by Dana and not
contemplated by this Agreement;
	 
	 	(4)	 	a breach of the Dana Consents by Service Provider; or
	 
	 	(5)	 	the failure of Service Provider to use corrections or
modifications provided by Dana on a timely basis.

	 	(B)	 	based on the violation of a Law for the protection of persons or members of a
protected class or category of persons by Dana or Dana Agents, including unlawful
discrimination;
	 
	 	(C)	 	relating to personal injury, bodily injury, death or property loss or damage
caused by the acts or omissions of Dana or Dana Agents (and Dana hereby waives, as to
the defense of Service Provider, any immunity defense it may have to such claim under
Laws related to workers’ compensation or employee injuries);
	 
	 	(D)	 	any employment actions resulting from misrepresentations, oral or written, made
by Dana or Dana Agents to Affected Employees or other Dana employees that were not
authorized by Service Provider;
	 
	 	(E)	 	any action taken by Dana with respect to the Affected Employees, including any
claims arising from Dana’s decisions, acts or omissions relating to screening,
interviewing, hiring, assignment, evaluation, compensation, termination and/or
transfer;
	 
	 	(F)	 	relating to any amounts, including taxes, interest and penalties, assessed
against Service Provider that are the obligation of Dana under Article 16;
	 
	 	(G)	 	for government penalties and fines resulting from Dana’s breach of its
covenants in Section 24.1;
	 
	 	(H)	 	relating to (1) any duties or obligations of Dana or Dana Agents with respect
to one another, (2) liability under any Assigned Agreement based on acts or omissions
of Dana or Dana Agents before the applicable Assigned Agreement Effective Date and (3)
liability under any Managed Agreement based on acts or omissions of Dana or Dana Agents
for which Dana is not entitled to indemnification under clause (3) of subsection (H) of
Section 28.2.
	 
	 	(I)	 	by a Non-US Employee (as defined in Schedule 18 (Human Resources)) or a non-US
Governmental Authority to the extent the claim arises from a breach of Dana’s
responsibilities, or constitutes a liability for which Dana has agreed to be
responsible, under the terms of Schedule 18 (Human Resources);

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	 	(J)	 	relating to Dana’s failure to obtain, maintain or comply with the Dana Consents
and the Dana Governmental Approvals or to comply with the Service Provider Consents;
	 
	 	(K)	 	relating to use by Dana of any Service Provider Third Party Software or Service
Provider Third Party Tools outside of the licenses granted in Article 20; or
	 
	 	(L)	 	resulting from a disclosure of Service Provider’s Confidential Information due
to Dana’s breach of Section 22.1.

	 	 	Dana will indemnify Service Provider against any costs and expenses incurred in connection
with the enforcement of this Section.
	 
	28.2	 	Indemnities by Service Provider. Service Provider will indemnify Dana and its
Affiliates against, and defend and hold Dana and its Affiliates harmless from and against, any
Losses suffered, incurred or sustained by Dana or its Affiliates or to which Dana or its
Affiliates become subject, resulting from, arising out of or relating to any third party
claim:

	 	(A)	 	that the Services, the Deliverables, the Work Product, the Service Provider
Software, the Service Provider Tools, the Service Provider Equipment, any enhancements
or modifications to the Dana Software performed by Service Provider or Service Provider
Agents or any other resources or items provided to Dana by Service Provider or Service
Provider Agents infringe upon or misappropriate the proprietary or other rights of any
third party; provided that Service Provider will not have any indemnity obligation
under this subsection (A) to the extent any infringement or misappropriation relates
to:

	 	(1)	 	any item of Service Provider Third Party Software or Service
Provider Third Party Tool that, with Dana’s specific prior written consent, is
excluded from indemnification under this subsection (A);
	 
	 	(2)	 	modifications made by Dana or a Dana Agent (other than Service
Provider and Service Provider Agents), without the approval of Service
Provider;
	 
	 	(3)	 	Dana’s use of any such materials in combination with products
or services not furnished or approved by Service Provider and not contemplated
by this Agreement;
	 
	 	(4)	 	a breach of the Service Provider Consents by Dana;
	 
	 	(5)	 	the failure of Dana to use corrections or modifications
provided by Service Provider on a timely basis; or
	 
	 	(6)	 	the infringement results from Service Provider’s adherence to
Dana’s directions or procedures.

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	 	(B)	 	based on the violation of a Law for the protection of persons or members of a
protected class or category of persons by Service Provider or Service Provider Agents,
including unlawful discrimination;
	 
	 	(C)	 	relating to personal injury, bodily injury, death or property loss or damage
caused by the acts or omissions of Service Provider or Service Provider Agents (and
Service Provider hereby waives, as to the defense of Dana, any immunity defense it may
have to such claim under Laws related to workers’ compensation or employee injuries);
	 
	 	(D)	 	relating to accrued employee benefits expressly assumed by Service Provider;
	 
	 	(E)	 	relating to any employment actions resulting from misrepresentations, oral or
written, made by Service Provider or Service Provider Agents to Affected Employees or
other Dana employees that were not authorized by Dana;
	 
	 	(F)	 	relating to any action taken by Service Provider with respect to the Affected
Employees, including any claims arising from Service Provider’s decisions, acts or
omissions relating to screening, interviewing, hiring, assignment, evaluation,
compensation, termination and/or transfer;
	 
	 	(G)	 	relating to any other aspect of the Project Staff’s employment relationship
with Service Provider or the termination of the employment relationship with Service
Provider (including claims for breach of an express or implied contract of employment);
	 
	 	(H)	 	relating to (1) any duties or obligations of Service Provider or Service
Provider Agents with respect to one another, (2) liability under any Assigned Agreement
based on acts or omissions of Service Provider or Service Provider Agents on or after
the applicable Assigned Agreement Effective Date and (3) liability under any Managed
Agreement based on acts or omissions of Service Provider or Service Provider Agents on
or after the applicable Managed Agreement Effective Date that constitute a breach or
default of Service Provider’s obligations under Article 9;
	 
	 	(I)	 	relating to Service Provider’s failure to obtain, maintain or comply with the
Service Provider Consents and the Service Provider Governmental Approvals or to comply
with the Dana Consents;
	 
	 	(J)	 	by any of Service Provider’s partners or subcontractors arising from or in
connection with their provision of Services;
	 
	 	(K)	 	resulting from a disclosure of Dana’s Confidential Information due to Service
Provider’s breach of Section 10.3 or Section 22.1;
	 
	 	(L)	 	relating to any amounts, including taxes, interest and penalties, assessed
against Dana that are the obligation of Service Provider under Article 16;

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	 	(M)	 	relating to use by Service Provider of any Dana Third Party Software or Dana
Third Party Tools outside the scope of the licenses granted in Article 20;
	 
	 	(N)	 	for government penalties and fines resulting from Service Provider’s breach of
its covenants in Section 24.2;
	 
	 	(O)	 	by a Non-US Employee (as defined in Schedule 18 (Human Resources)) or a non-US
Governmental Authority to the extent the claim arises from a breach of Service
Provider’s responsibilities, or constitutes a liability for which Service Provider has
agreed to be responsible, under the terms of Schedule 18 (Human Resources); or
	 
	 	(P)	 	based on the processing or transfer of Dana Data in violation of Service
Provider’s or a Service Provider Agent’s obligations under the terms of Section 22.6 or
a Local Country Agreement.

	 	 	Service Provider will indemnify Dana against any costs and expenses incurred in connection
with the enforcement of this Section.
	 
	28.3	 	Indemnification Procedures. If any third-party claim is commenced against a Party
entitled to indemnification under Section 28.1 or Section 28.2 (the “Indemnified Party”),
notice thereof will be given to the Party that is obligated to provide indemnification (the
“Indemnifying Party”) as promptly as practicable. If, after such notice, the Indemnifying
Party will acknowledge that this Agreement applies with respect to such claim, then the
Indemnifying Party will be entitled, if it so elects, in a notice promptly delivered to the
Indemnified Party, but in no event less than 10 days before the date on which a response to
such claim is due, to immediately take control of the defense and investigation of such claim
and to employ and engage attorneys reasonably acceptable to the Indemnified Party to handle
and defend the same, at the Indemnifying Party’s sole cost and expense. The Indemnified Party
will cooperate, at the cost of the Indemnifying Party, in all reasonable respects with the
Indemnifying Party and its attorneys in the investigation, trial and defense of such claim and
any appeal arising therefrom; provided that the Indemnified Party may, at its own cost and
expense, participate, through its attorneys or otherwise, in such investigation, trial and
defense of such claim and any appeal arising therefrom. No settlement of a claim that involves
a remedy other than the payment of money by the Indemnifying Party will be entered into
without the consent of the Indemnified Party. After notice by the Indemnifying Party to the
Indemnified Party of its election to assume full control of the defense of any such claim, the
Indemnifying Party will not be liable to the Indemnified Party for any legal expenses incurred
thereafter by such Indemnified Party in connection with the defense of that claim. If the
Indemnifying Party does not assume full control over the defense of a claim subject to such
defense as provided in this Section, the Indemnifying Party may participate in such defense,
at its sole cost and expense, and the Indemnified Party will have the right to defend the
claim in such manner as it may deem appropriate, at the cost and expense of the Indemnifying
Party.
	 
	28.4	 	Injunctions Affecting Services. If any product or service provided by Service
Provider and used by Service Provider to provide the Services becomes, or in Service
Provider’s

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	 	 	reasonable opinion is likely to
become, the subject of an
infringement or misappropriation
claim or proceeding, then
Service Provider will promptly
notify Dana of such claim or
proceeding and, at Service
Provider’s expense (1) secure
the royalty-free right to
continue using the product or
service or (2) replace or modify
the product or service to make
it non-infringing, provided that
any such replacement or
modification will not degrade
the performance or quality of
the affected component of the
Services in any material way. If
neither (1) nor (2) is available
to Service Provider, Service
Provider will remove the product
or service from the Services and
the Fees will be equitably
adjusted to adequately reflect
such removal. If any product or
service provided by Dana and
used by Service Provider to
provide the Services becomes, or
in Dana’s reasonable opinion is
likely to become, the subject of
an infringement or
misappropriation claim or
proceeding, then Dana will
promptly notify Service Provider
of such claim or proceeding, and
unless and until Dana secures
the right to continue using the
product or service, or replaces
or modifies the product or
service to make if
non-infringing, Service Provider
will be relieved of the Services
that require the enjoined
product or service, without
affecting Dana’s payment
obligations.

ARTICLE 29. DAMAGES

	29.1	 	Direct Damages. Each Party will be liable to the other Party for any direct damages
arising out of or relating to such Party’s performance or failure to perform under this
Agreement; provided that the liability of a Party to the other Party, whether based on an
action or claim in contract, equity, negligence, tort or otherwise, will not in the aggregate
exceed ***.
	 
	29.2	 	Consequential Damages.

	 	(A)	 	***
	 
	 	(B)	 	Notwithstanding the foregoing, the following damages are agreed to be included
within direct damages and not excluded by this Section 29.2: ***.

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	29.3	 	Exceptions.

	 	(A)	 	***

	 	(1)	 	***
	 
	 	(2)	 	***
	 
	 	(3)	 	***

	 	(B)	 	***

	 	(1)	 	***

	 	(C)	 	***

	 	(1)	 	***
	 
	 	(2)	 	***

	 	(D)	 	***

	29.4	 	***

	 	(A)	 	***

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	 	(B)	 	***
	 
	 	(C)	 	***
	 
	 	(D)	 	***

	29.5	 	Injunctive Relief. A Party may seek immediate injunctive relief for a breach of this
Agreement by the other Party if the breach would result in irreparable harm to the Party for
which monetary damages would provide an inadequate remedy. A Party filing a pleading seeking
immediate injunctive relief that is not awarded in substantial part will pay all reasonable
costs and attorneys’ fees of the other Party.

ARTICLE 30. INSURANCE

	30.1	 	Insurance. Except as specifically provided otherwise in this Agreement, Service
Provider will obtain and maintain at its own expense, and require Service Provider Agents to
obtain and maintain at their own expense or Service Provider’s expense, insurance of the type
and in the minimum amounts set forth below, with reputable carriers satisfactory to Dana:

	 	(A)	 	for U.S. citizens and foreign nationals working in the U.S. or its territories
and entitled to state workers’ compensation insurance or benefits, statutory workers’
compensation in accordance with all state and local requirements, including employers’
liability, with limits not less than ***;
	 
	 	(B)	 	for foreign nationals working outside the U.S. or its territories, or working
in the U.S. or its territories but not entitled to workers’ compensation insurance or
benefits, employee injury insurance or benefits usual, customary and/or required in the country in which such foreign national is employed or domiciled, whichever is
applicable, which insurance or benefit may be provided through a non-U.S. government
sponsored program or social welfare program or private insurance, as is usual,
customary and/or required in the employee’s country of employment or domicile,
whichever is applicable;
	 
	 	(C)	 	commercial general liability insurance for an insured amount of not less than
*** per occurrence and *** aggregate;
	 
	 	(D)	 	automobile liability insurance covering use of all owned, non-owned and hired
automobiles for bodily injury, property damage, with a minimum combined single limit
per accident of *** or the minimum limit required by Law, whichever limit is greater;

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	 	(E)	 	professional errors and omissions liability insurance covering loss (other than
bodily injury or property damage) which may result from any rendering or failure to
render any professional services under this Agreement subject to the terms and
conditions of the policy, with a minimum limit of *** per occurrence and *** in
aggregate. Certificate will state policy limits are in effect in full force;
	 
	 	(F)	 	fidelity bond/crime insurance, naming Dana as a loss payee, ***;
	 
	 	(G)	 	all risk property coverage, including flood and earthquake and business
interruption insurance, covering property and operations of Service Provider or
property in its care, custody or control; and
	 
	 	(H)	 	umbrella and/or excess liability coverage, applying over the employer’s
liability, commercial general liability and automobile liability, in minimum amounts of
*** per occurrence and *** in the aggregate. This layer may be self insured.

	 	 	The above coverages will apply on a worldwide basis regardless of where the event that
creates the liability occurs or where the suit or claim for the liability is brought. The
above coverages, meaning (C) and (D) only, will be written or endorsed so that they are
primary coverages and not excess or contributory to any coverages maintained by Dana.
Service Provider’s obligations under this Section will in no way limit or diminish its
indemnification obligations, or liability for claims covered, under the terms of this
Agreement.
	 
	30.2	 	Period of Insurance. Service Provider will take out and maintain the insurance
policies referred to in Section 30.1 for the following periods:

	 	(A)	 	***
	 
	 	(B)	 	***

	 	 	For any coverage written on a claims made basis, the retrospective date must be no later
than the Effective Date of this Agreement.
	 
	30.3	 	Insurance Documentation. For all insurance required under Section 30.1, Service
Provider will, on the Effective Date and prior to each coverage renewal date, or upon Dana’s
request from time to time, furnish to Dana certificates of insurance or other

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	 	 	appropriate documentation (including evidence of renewal of insurance) evidencing all
coverages referenced in Section 30.1 and naming Dana as an additional insured with regard to
the commercial general liability coverage as respects bodily injury or property damage
resulting from the Project Staff’s act or omissions. In the event of cancellation,
non-renewal or material alteration, Service Provider shall cause its insurers to endeavor to
provide 30 days’ prior written notice to Dana. With regard to the coverages referenced in
Section 30.1.(E) and 30.1.(F), Service Provider will provide Dana as much notice as is
reasonably possible under the circumstances prior to any cancellation, non-renewal or
material alteration. Such cancellation or material alteration will not relieve Service
Provider of its continuing obligation to maintain insurance coverage in accordance with this
Article. With regard to the Professional Errors and Omissions Liability insurance, on the
Effective Date and prior to each coverage renewal date, or upon Dana’s request from time to
time, Service Provider will provide a written certification from its insurance broker that
the coverage maintained by Service Provider covers all Services under this Agreement,
subject to the terms and conditions of the policy, and that the limits are in full force and
effect. If Service Provider or its broker cannot provide such written certification, then
Service Provider will provide (i) a written statement that the limits are in full force and
effect, (ii) a written summary of the coverage provided by either the Service Provider or
the Service Provider’s insurance broker detailing the terms and conditions including the
covered and excluded perils, as previously provided and (iii) a written statement, if there
are any changes that need to be made to the summary provided by the Service Provider.
Otherwise Parties understand this summary is still current to the best of Service Provider’s
knowledge.
	 
	30.4	 	Risk of Loss. Subject to the terms of this Agreement, each Party is responsible for
the risk of loss of, or damage to, any property of the other that is caused by the acts or
omissions of such Party.
	 
	30.5	 	Deductibles or Self Insurance. Unless Service Provider maintains an investment grade
credit rating by Moody’s Investors Services, the foregoing coverages may not be changed to
increase any deductibles or other self insurance provisions in excess of the respective
amounts in existence on the Effective Date

ARTICLE 31. MISCELLANEOUS PROVISIONS

	31.1	 	Assignment. Neither Party will, without the consent of the other Party, assign this
Agreement or otherwise transfer its rights or obligations under this Agreement; provided that
Dana may assign or otherwise transfer its rights and obligations under this Agreement to any
Affiliate of Dana, to an entity that acquires all or substantially all of Dana’s assets or
Dana’s successor by way of merger or acquisition. The consent of a Party to any assignment of
this Agreement will not constitute such Party’s consent to further assignment. This Agreement
will be binding on the Parties and their respective successors and permitted assigns. Any
assignment in contravention of this subsection will be void.
	 
	31.2	 	Notices. Except as otherwise specified in this Agreement, all notices, requests,
consents, approvals, agreements, authorizations, acknowledgements, waivers and other

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	 	 	communications required or permitted under this Agreement will be in writing and will be
deemed given when sent by telecopy to the telecopy number specified below or delivered by
hand to the address specified below. A copy of any such notice will also be sent by express
air mail on the date such notice is transmitted by telecopy to the address specified below:

In the case of Dana:

Dana Corporation

4500 Dorr Street

Toledo, Ohio 43615

Attention: Vice President, Human Resources

Telecopy No.: 419-535-4790

With a copy to:

Dana Corporation

4500 Dorr Street

Toledo, Ohio 43615

Attention: General Counsel

Telecopy No.: 419-535-4790

In the case of Service Provider:

IBM Corporation

Rt. 100, Bldg. 2

Somers, NY 10589

Attention: VP, BTO Industrial

Telecopy No.: (914) 766-2500

With a copy to:

IBM Corporation

Rt. 100, Bldg. 2

Somers, NY 10589

Attention: Associate General Counsel

Telecopy No.: (914) 766-4344

	 	 	Either Party may change its address or telecopy number for notification purposes by giving
the other Party 15 days’ notice of the new address or telecopy number and the date upon
which it will become effective.
	 
	31.3	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which will be deemed an original, but all of which taken together will constitute one single
agreement between the Parties.
	 
	31.4	 	Relationship. The Parties intend to create an independent contractor relationship and
nothing contained in this Agreement will be construed to make either Dana or Service Provider
partners, joint venturers, principals, agents or employees of the other. No officer, director,
employee, agent, affiliate or contractor retained by Service Provider to perform work on
Dana’s behalf under this Agreement will be deemed to be an employee,

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	 	 	agent or contractor of Dana. Neither Party will have any right, power or authority, express
or implied, to bind the other.
	 
	31.5	 	Consents, Approvals and Requests. Except as specifically set forth in this Agreement,
all consents and approvals to be given by either Party under this Agreement will not be
unreasonably withheld or delayed and each Party will make only reasonable requests under this
Agreement.
	 
	31.6	 	Waivers. No delay or omission by either Party to exercise any right or power it has
under this Agreement will impair or be construed as a waiver of such right or power. A waiver
by any Party of any breach or covenant will not be construed to be a waiver of any succeeding
breach or any other covenant. All waivers must be signed by the Party waiving its rights.
	 
	31.7	 	Remedies Cumulative. No right or remedy herein conferred upon or reserved to either
Party is intended to be exclusive of any other right or remedy, and each right and remedy will
be cumulative and in addition to any other right or remedy under this Agreement, or under
applicable Law, whether now or hereafter existing.
	 
	31.8	 	Amendments. No change or addition to any provision of this Agreement will be valid
unless in writing and signed by an authorized representative of each of the Parties.
	 
	31.9	 	Survival. The terms of Sections 6.7(C), 6.8(D), 12.2(D) and (E), 14.2(G), 15.3 (as to
outstanding Fees), 15.10, , 17.2, 17.3(B), 17.4, 27.1(C), (D) and (E), 27.2(A) and (D), 27.3,
30.2, 31.7, 31.9, 31.10, 31.11 and 31.12; Articles 16, 20, 22, 26, 28, 29 and 32; and the
notice requirements for reassignment of Key Personnel set forth in Schedule 18 (Human
Resources) will survive the expiration or termination of this Agreement.
	 
	31.10	 	Third Party Beneficiaries. Each Party intends that this Agreement will not benefit,
or create any right or cause of action in or on behalf of, any person or entity other than the
Parties.
	 
	31.11	 	Covenant of Further Assurances. Subsequent to the execution and delivery of this
Agreement and without any additional consideration, each of Dana and Service Provider will
execute and deliver any further legal instruments and perform any acts that are or may become
necessary to effectuate the purposes of this Agreement.
	 
	31.12	 	Negotiated Terms. The Parties agree that the terms and conditions of this Agreement
are the result of negotiations between the Parties and that this Agreement will not be
construed in favor of or against any Party by reason of the extent to which any Party or its
professional advisors participated in the preparation of this Agreement.
	 
	31.13	 	Export. Dana and Service Provider will not knowingly export or re-export any
personal computer system, part, technical data or sub-elements under this Agreement, directly
or indirectly, to any destinations prohibited by the United States Government. The term
“technical data” in this context, means such data as is defined as technical data by
applicable United States export regulations.

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	31.14	 	Non-Solicitation. Except as permitted under Section 27.3, during the Term neither
Party will solicit or hire any individual while that individual is an employee of the other
Party. This Section will not restrict the right of either Party to solicit or recruit
generally in the media or prohibit either Party from hiring an employee of the other who
answers any advertisement or who otherwise voluntarily applies for hire without having been
initially solicited or recruited by the hiring Party.
	 
	31.15	 	Conflict of Interest. Neither Party will pay any salaries, commissions, fees or make
any payments or rebates to any employee of the other Party, or to any designee of such
employee, or favor any employee of the other Party, or any designee of such employee, with
gifts or entertainment of significant cost or value or with services or goods sold at less
than full market value. Obligation under this Section will also be binding upon the Parties
respective agents.
	 
	31.16	 	Publicity. Neither Party will use the other Party’s name or mark, or use language
from which the connection of such name or mark may be inferred, without the other Party’s
prior written consent, in the other Party’s sole discretion. Neither Party may make, without
the prior written approval of authorized representatives of the other Party, any public
disclosures relating to this Agreement, except for internal announcements or disclosures
required to meet legal or regulatory requirements that are beyond the reasonable control of
the disclosing Party.
	 
	31.17	 	Liens. Service Provider will keep all real and personal property of Dana, and the
Services, free and clear of all liens or lien claims. If any lien or lien claim is asserted
for any reason, Dana may at its sole discretion (1) pay the amount of the lien or lien claim,
(2) deduct the amount paid from Fees due to Service Provider and/or (3) require Service
Provider to obtain a properly executed release of lien satisfactory to Dana.

ARTICLE 32. CONSTRUCTION

	32.1	 	Background. The statement of background and objectives set forth in the introductory
portion of this Agreement are intended to be a general introduction to this Agreement and are
not intended to expand the scope of the Parties’ obligations or to alter the plain meaning of
this Agreement’s terms and conditions. However, to the extent the terms and conditions of this
Agreement do not address a particular circumstance or are otherwise unclear or ambiguous, such
terms and conditions are to be interpreted and construed so as to give the fullest possible
effect to the goals and objectives set forth in the statement of background and objectives.
	 
	32.2	 	Incorporation and References. In this Agreement and the Schedules and Local Country
Agreements to this Agreement:

	 	(A)	 	the Schedules and Local Country Agreements to this Agreement are hereby
incorporated into and deemed part of this Agreement and all references to this
Agreement will include the Schedules to this Agreement;
	 
	 	(B)	 	references to a Schedule, Section or Article will be to such Schedule to, or
Section or Article of, this Agreement unless otherwise provided;

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	 	(C)	 	references to any Law means references to such Law in changed or supplemented
form or to a newly adopted Law replacing a previous Law; and
	 
	 	(D)	 	references to and mentions of the word “including” or the phrase “e.g.” means
“including, without limitation.”

	32.3	 	Headings. The Article and Section headings, Table of Contents and Table of Schedules
are for reference and convenience only and will not be considered in the interpretation of
this Agreement.
	 
	32.4	 	Severability. If any provision of this Agreement is held by a court of competent
jurisdiction to be contrary to Law, then the remaining provisions of this Agreement, if
capable of substantial performance, will remain in full force and effect.
	 
	32.5	 	Sole and Exclusive Venue. Each Party irrevocably agrees that any legal action, suit
or proceeding brought by it in any way arising out of this Agreement must be brought solely
and exclusively in the United States District Court for the Northern District of Ohio or Court
of Common Pleas for Lucas County located in Toledo, Ohio and irrevocably accepts and submits
to the sole and exclusive jurisdiction of each such court in personam, generally and
unconditionally, with respect to any action, suit or proceeding brought by it or against it by
the other Party; provided that this Section will not prevent a Party against whom any legal
action, suit or proceeding is brought by the other Party in the state courts of the State of
Ohio from seeking to remove such legal action, suit or proceeding, under applicable federal
Law, to the district court of the United States for the district and division embracing the
place where the action is pending in the state courts of the State of Ohio, and if an action
is so removed each Party irrevocably accepts and submits to the jurisdiction of that district
court. Each Party hereto further irrevocably consents to the service of process from any of
such courts by mailing copies thereof by registered or certified mail, postage prepaid, to
such Party at its address designated under this Agreement, with such service of process to
become effective 30 days after such mailing.
	 
	32.6	 	Section 365(n). All rights and licenses granted under or under this Agreement by
Service Provider to the Dana Group Companies are, and will otherwise be deemed to be, for
purposes of Section 365(n) of Title 11 of the United States Code, as amended from time to time
(the “Bankruptcy Code”), licenses to rights to “intellectual property” as defined under the
Bankruptcy Code. The Parties agree that the Dana Group Companies, as licensee of such rights
under this Agreement, will retain and may fully exercise all of its rights and remedies
available to it under the Bankruptcy Code including Section 365(n) thereof.
	 
	32.7	 	Governing Law.

	 	(A)	 	This Agreement and the rights and obligations of the Parties under this
Agreement will be governed by and construed in accordance with the Laws of the State of
Ohio, without giving effect to the principles thereof relating to the conflicts of
Laws.

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	 	(B)	 	The Parties agree that, to the extent no expressly permitted by Law, the United
Nations Convention on Contracts for the International Sale of Goods 1980, and all
international and domestic legislation implementing such Convention, will not apply to
this Agreement.
	 
	 	(C)	 	The Parties further agree that their respective rights and obligations under
this Agreement will be solely and exclusively as set forth in this Agreement and that
the Uniform Computer Information Transactions Act (“UCITA”), whether enacted in whole
or in part by any state or applicable jurisdiction, regardless of how codified, will
not apply to this Agreement and is hereby disclaimed. The Parties further agree to
amend this Agreement as may be necessary to comply with any mandatory disclaimer
language required by UCITA in any applicable jurisdiction.

	32.8	 	Waiver of Jury Trial. The Parties hereby irrevocably waive any right to jury trial
with respect to any action relating to this Agreement or the Services.
	 
	32.9	 	Entire Agreement. This Agreement and the Schedules to this Agreement represent the
entire agreement between the Parties with respect to its subject matter, and there are no
other representations, understandings or agreements between the Parties relative to such
subject matter.
	 
	32.10	 	Interpretation Consistent with Law; Conflicts.

	 	(A)	 	If any provision of this Agreement is subject to an interpretation which would
be invalid, illegal, or unenforceable, the remaining provisions of this Agreement will
not in any way be affected or impaired, and the invalid, illegal, or unenforceable
provision will be interpreted to reflect the Parties’ original intent under this
Agreement as nearly as possible in accordance with applicable Laws.
	 
	 	(B)	 	If there is a conflict among the terms in the various documents within this
Agreement:

	 	(1)	 	to the extent the conflicting provisions can reasonably be
interpreted so that such provisions are consistent with each other, such
consistent interpretation will prevail; and
	 
	 	(2)	 	to the extent this Section 32.10(B) does not resolve such
conflict, the following order of precedence will prevail:

	 	(a)	 	the provisions of a Local Country Agreement
will prevail over a conflicting term in this Agreement with respect to
Services performed within the jurisdiction of such Local Country
Agreement;
	 
	 	(b)	 	this Agreement (exclusive of its Schedules)
will prevail over a conflicting term in its Schedules; and

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	 	(c)	 	a Schedule will prevail over a conflicting term
in the Exhibits.

          Each of Dana and Service Provider has caused this Agreement to be signed and delivered by its
duly authorized representative on this 26th day of September, 2007.

	 	 	 	 	 
	 	DANA CORPORATION

 	 
	 	By:  	/s/ Dean Wilson
 	 
	 	 	Name:  	Dean Wilson 	 
	 	 	Title:  	VP HR Transformation 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	INTERNATIONAL BUSINESS MACHINES CORPORATION

 	 
	 	By:  	/s/ Michael A Paez
 	 
	 	 	Name:  	Michael A Paez 	 
	 	 	Title:  	IBM Project Executive 	 
	 

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