Document:

exv10w1

Exhibit 10.1

     AMENDMENT AND RESTATEMENT AGREEMENT dated as of December 7, 2010 (this “Amendment and
Restatement Agreement”), to the Credit Agreement dated as of June 1, 2006 and amended and restated
as of February 13, 2007 and as further amended prior to the date hereof (the “Existing ARCA”) among
Education Management LLC, a Delaware limited liability company (“Company”), Education Management
Holdings LLC, a Delaware limited liability company (“Holdings”), certain subsidiaries of Holdings,
as Guarantors, the Designated Subsidiary Borrowers party hereto, the Lenders party hereto, BNP
Paribas (“BNP”), as Administrative Agent and Collateral Agent, and BNP, Bank of America, N.A.,
JPMorgan Chase Bank, N.A. and PNC Bank National Association, each as Issuing Bank. Capitalized
terms used herein and not otherwise defined herein have the meanings assigned to them in the
Amended Agreement (as defined below).

     WHEREAS, the Borrowers have requested an amendment to the Existing ARCA pursuant to which (a)
existing Lenders of Revolving Loans (as defined in the Existing ARCA) (“Revolving Lenders”) agree
to extend the maturity date of all or a portion of their existing Revolving Commitments to June 1,
2015, (b) existing Lenders of Tranche C Term Loans (as defined in the Existing ARCA) (“Tranche C
Lenders”) agree to extend the maturity date of all or a portion of their Tranche C Term Loans to
June 1, 2016, and (c) certain provisions of the Existing ARCA, including provisions relating to
negative covenants and financial covenants, will be amended; and

     WHEREAS, the existing Tranche C Lenders whose Term Loan Commitments are set forth on Appendix
A-1 attached hereto under the heading “Tranche C-2 Term Loan Commitment” (the “Extending Tranche C
Lenders”) have agreed to extend the Term Loan Maturity Date of their Tranche C Term Loans to June
1, 2016 in the amounts reflected for each such Lender under such heading, on the terms and subject
to the conditions set forth herein; and

     WHEREAS, the existing Revolving Lenders whose Revolving Commitments are set forth on Appendix
A-2 attached hereto under the heading “2015 Revolving Commitment” (the “Extending Revolving
Lenders” and, together with the Extending Tranche C Lenders, the “Extending Lenders”) have agreed
to provide Revolving Commitments terminating on June 1, 2015 in the amounts reflected for each such
Lender under such heading on the terms and subject to the conditions set forth herein; and

     WHEREAS, on the Second ARCA Effective Date (as defined in Section 6 hereof), the existing
Tranche C Term Loans of each Extending Tranche C Lender, will be converted into Tranche C-2 Term
Loans, in such principal amounts as correspond to the Tranche C-2 Term Commitments of such Lender
set forth on Appendix A-1 attached hereto, and the portions of the outstanding Tranche C Term Loans
of each Tranche C Lender not so converted will remain outstanding as Tranche C Term Loans; and

 

 

     WHEREAS, on the Second ARCA Effective Date, the Revolving Commitment of each Extending
Revolving Lender will be converted into a 2015 Revolving Commitment in such amount as corresponds
to the 2015 Revolving Commitment of such Extending Revolving Lender set forth on Appendix A-2
attached hereto, and the portion of the Revolving Commitment of such Revolving Lender not so
converted will remain outstanding and will be redesignated as such Revolving Lender’s “2012
Revolving Commitment”; and

     WHEREAS, in order to effect the foregoing, the Borrowers and the other parties hereto desire
to amend and restate, as of the Second ARCA Effective Date, the Existing ARCA and to enter into
certain other agreements herein, in each case subject to the terms and conditions set forth herein;

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

     SECTION 1. Amendment and Restatement of the Existing ARCA. Effective as of the Second ARCA
Effective Date:

     (a) the Existing ARCA is hereby amended and restated in its entirety in the form
of the Second Amended and Restated Credit Agreement set forth as Exhibit A hereto (the Existing
ARCA, as so amended and restated, being referred to as the “Amended Agreement”);

     (b) Appendices A-1 and A-2 and Schedules 4.1 (Jurisdictions of Organization), 4.9
(Environmental Matters), 4.10 (Taxes), 4.11 (ERISA Compliance) and 4.12 (Subsidiaries and Other
Equity Investments) to the Existing ARCA are hereby amended to reflect the information set forth on
Appendices A-1 and A-2 and Schedules 4.1 (Jurisdictions of Organization), 4.9 (Environmental
Matters), 4.10 (Taxes), 4.11 (ERISA Compliance) and 4.12 (Subsidiaries and Other Equity
Investments) hereto, respectively;

     (c) New Exhibits B-4 and B-5 are hereby added to the Existing ARCA in the forms of
Exhibits B-4 and B-5 hereto, respectively.

     Except as set forth above, all appendices, schedules and exhibits to the Existing ARCA, in the
forms thereof immediately prior to the Second ARCA Effective Date, will continue to be schedules
and exhibits to the Amended Agreement.

     SECTION 2. Concerning the Term Loans. (a) On the Second ARCA Effective Date, the existing
Tranche C Term Loans of each Extending Tranche C Lender will be converted into Tranche C-2 Term
Loans in such principal amounts as correspond to such Extending Tranche C Lender’s Tranche C-2 Term
Loan Commitment set forth on Appendix A-1 attached hereto.

2

 

     (b) Each outstanding Tranche C Term Loan of an Extending Tranche C Lender that is
a Eurodollar Rate Loan or a Base Rate Loan will be converted in the same proportion as the amount
of such Extending Tranche C Lender’s Tranche C-2 Commitment bears to the aggregate principal amount
of such Extending Tranche C Lender’s Tranche C Term Loans (immediately prior to the conversion).
The initial Interest Period applicable to each Tranche C-2 Term Loan that is a Eurodollar Rate Loan
shall be the then-current Interest Period applicable to the Term Loan from which it is converted
with no conversion into a different Interest Period, payment or prepayment of such Term Loan being
deemed to have occurred solely due to the Amendment and Restatement Agreement or the transactions
described herein.

     SECTION 3. Concerning the Revolving Commitments and the Revolving Loans. (a) On the Second
ARCA Effective Date, the Revolving Commitment of each Extending Revolving Lender will be converted
into a 2015 Revolving Commitment in such amount as corresponds to the 2015 Revolving Commitment of
such Extending Revolving Lender set forth on Appendix A-2 attached hereto, and the portion of the
Revolving Commitment of such Revolving Lender not so converted will remain outstanding and will be
redesignated as such Revolving Lender’s “2012 Revolving Commitment”;

     (b) On the Second ARCA Effective Date, (i) each Revolving Loan then outstanding
shall be redesignated as a “2012 Revolving Loan” and (ii) immediately thereafter, the 2012
Revolving Loans of each Extending Revolving Lender will be converted into 2015 Revolving Loans in a
principal amount equal to the product of (x) the outstanding principal amount of the 2012 Revolving
Loans of such Extending Revolving Lender immediately prior to such conversion multiplied
by (y) a fraction, the numerator of which is the 2015 Revolving Commitment of such
Extending Revolving Lender and the denominator of which is the aggregate amount of the 2012
Revolving Commitment (if any) and the 2015 Revolving Commitment of such Extending Revolving Lender.

     (c) Each outstanding 2012 Revolving Loan of an Extending Revolving Lender that is
a Eurodollar Rate Loan or a Base Rate Loan will be converted in the same proportion as the amount
of such Extending Revolving Lender’s 2015 Revolving Commitment bears to the aggregate amount of the
2012 Revolving Commitment immediately prior to the conversion) of such Extending Revolving Lender.
The initial Interest Period applicable to each 2015 Revolving Loan that is a Eurodollar Rate Loan
shall be the then-current Interest Period applicable to the 2012 Revolving Loan from which it is
converted with no conversion into a different Interest Period, payment or prepayment of such
Revolving Loan being deemed to have occurred solely due to the Amendment and Restatement Agreement
or the transactions described herein.

     SECTION 4. Representations and Warranties. To induce the other parties hereto to enter into
this Amendment and Restatement Agreement, each Borrower represents and warrants to each other party
hereto that:

3

 

     (a) As of the date hereof and as of the Second ARCA Effective Date, this Amendment
and Restatement Agreement has been duly authorized, executed and delivered by it. This Amendment
and Restatement Agreement (as of the date hereof and as of the Second ARCA Effective Date) and the
Amended Agreement (as of the Second ARCA Effective Date) constitute its legal, valid and binding
obligation, enforceable against it 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.

     (b) The representations and warranties of each Credit Party set forth in Section 4
of the Existing ARCA and in the other Credit Documents that are qualified by materiality are true
and correct, and the representations and warranties that are not so qualified are true and correct
in all material respects, in each case on and as of the date hereof and as of the Second ARCA
Effective Date both before and after giving effect to this Amendment and Restatement Agreement
(other than with respect to any representation and warranty that expressly relates to an earlier
date, in which case such representation and warranty is true and correct in all material respects
as of such earlier date).

     (c) Both before and after giving effect to this Amendment and Restatement
Agreement and the transactions contemplated hereby, no Default or Event of Default has occurred and
is continuing.

     SECTION 5. Effectiveness of this Amendment and Restatement Agreement. This Amendment and
Restatement Agreement shall become effective as of the date hereof, provided Barclays Capital, the
investment banking division of Barclays Bank PLC (the “Lead Arranger”) shall have received duly
executed counterparts hereof that, when taken together, bear the signatures of Company, Holdings,
the Borrowers, the Requisite Lenders, each Extending Revolving Lender, each Extending Tranche C
Lender, the Administrative Agent and each Issuing Bank.

     SECTION 6. Effectiveness of Second Amended and Restated Credit Agreement. The effectiveness
of the amendment and restatement of the Existing ARCA in the form of the Amended Agreement is
subject to the satisfaction of the following conditions precedent (the date on which all of such
conditions shall first be satisfied, the “Second ARCA Effective Date”):

     (a) This Amendment and Restatement Agreement shall have become effective in
accordance with Section 5.

     (b) The conditions set forth in Sections 3.2(a)(iii) and (a)(iv) of the Amended
Agreement shall be satisfied on and as of the Second ARCA Effective Date, and the Lead Arranger
shall have received a certificate dated as of the Second ARCA Effective Date, and signed by the
President, a Vice President or a Financial Officer of the Company, to such effect.

4

 

     (c) The Lead Arranger shall have received the favorable legal opinions of (i)
Simpson, Thacher & Bartlett LLP, special counsel to the Credit Parties and (ii) J. Devitt Kramer,
general counsel of the Company, in each case addressed to the Lead Arranger, the Lenders, the
Administrative Agent, the Collateral Agent and each Issuing Bank dated the Second ARCA Effective
Date, which opinions shall be reasonably satisfactory to the Lead Arranger. The Company hereby
requests such counsel to deliver such opinions.

     (d) The Lead Arranger shall have received (i) copies of each Organization Document
executed and delivered by each Credit Party, as applicable, and, to the extent applicable,
certified as of a recent date by the appropriate governmental official, each dated the Second ARCA
Effective Date or a recent date prior thereto; (ii) signature and incumbency certificates of the
officers of such Person executing this Agreement; (iii) resolutions of the Board of Directors or
similar governing body of each Credit Party approving and authorizing the execution, delivery and
performance of this Agreement, certified as of the Second ARCA Effective Date by its secretary or
an assistant secretary as being in full force and effect without modification or amendment; and
(iv) a good standing certificate from the applicable Governmental Authority of each Credit Party’s
jurisdiction of incorporation, organization or formation dated a recent date prior to the Second
ARCA Effective Date.

     (e) The Lead Arranger shall have received payment from the Borrowers, for the
account of each Lender that executes and delivers a counterpart signature page to this Amendment
and Restatement Agreement at or prior to 5:00 p.m., New York City time, on December 2, 2010 (or
such later time as the Administrative Agent and the Borrowers shall agree), an amendment fee (the
“Amendment Fee”) in an aggregate amount equal to 0.10% of the sum of (x) the aggregate outstanding
principal amount of the Term Loans of such Lender (if any) plus the Revolving Commitment of
such Lender (if any). The Amendment Fee shall be payable in immediately available funds and, once
paid, such fee or any part thereof shall not be refundable.

     (f) The Borrowers shall have paid (i) all fees and other amounts due and payable
pursuant to this Amendment and Restatement Agreement and the Engagement Letter dated as of November
15, 2010, including, to the extent invoiced, reimbursement or payment of reasonable out-of-pocket
expenses in connection with this Amendment and Restatement Agreement and such Engagement Letter and
(ii) any other out-of-pocket expenses of the Administrative Agent required to be paid or reimbursed
pursuant to the Amended Agreement, including the reasonable fees, charges and disbursements of
counsel for the Administrative Agent.

     The Lead Arranger shall notify the Company, the Administrative Agent and the Lenders of the
Second ARCA Effective Date and such notice shall be conclusive and binding.

5

 

     SECTION 7. Effect of Amendment. (a) Except as expressly set forth herein or in the Amended
Agreement, this Amendment and Restatement Agreement shall not by implication or otherwise limit,
impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the
Agents under the Amended Agreement or any other Credit Document, and shall not alter, modify, amend
or in any way affect any of the terms, conditions, obligations, covenants or agreements contained
in the Existing ARCA or any other provision of the Existing ARCA or of any other Credit Document,
all of which are ratified and affirmed in all respects and shall continue in full force and effect.
Nothing herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Existing ARCA, the Amended Agreement or any other Credit Document in similar or
different circumstances.

     (b) On and after the Second ARCA Effective Date, each reference in the Existing
ARCA to “this Agreement”, “hereunder”, “hereof’, “herein”, or words of like import, and each
reference to the “Credit Agreement” or words of like import in any other Credit Document shall be
deemed a reference to the Amended Agreement. This Amendment and Restatement Agreement shall
constitute a “Credit Document” for all purposes of the Amended Agreement and the other Credit
Documents.

     (c) The changes to the definition of “Applicable Margin” in Section 1.01 of the
Amended Agreement effected pursuant to this Amendment and Restatement Agreement shall apply and be
effective on and after the Second ARCA Effective Date. The definition of “Applicable Margin” in
Section 1.01 of the Existing ARCA shall apply and be effective for the period ending on, but not
including, the Second ARCA Effective Date.

     SECTION 8. Governing Law. THIS AMENDMENT AND RESTATEMENT AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     SECTION 9. Costs and Expenses. The Borrowers agree to reimburse each of the Administrative
Agent and the Lead Arranger for their reasonable out-of-pocket expenses in connection with this
Amendment and Restatement Agreement, including the reasonable fees, charges and disbursements of
counsel for each of the Administrative Agent and the Lead Arranger.

     SECTION 10. Counterparts. This Amendment and Restatement Agreement may be executed in one
or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Delivery by facsimile or other electronic imaging means of
an executed counterpart of a signature page to this Amendment and Restatement

6

 

Agreement shall be effective as delivery of an original executed counterpart of this Amendment
and Restatement Agreement.

     SECTION 11. Headings. Section headings herein are included for convenience of reference
only and shall not affect the interpretation of this Amendment and Restatement Agreement.

[Remainder of page intentionally blank]

7

 

	 	 	 	 	 
	 	EDUCATION MANAGEMENT LLC

 	 
	 	By:  	/s/ Edward H. West 	 
	 	 	Name:  	Edward H. West 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 
	 	EDUCATION MANAGEMENT HOLDINGS LLC

 	 
	 	By:  	/s/ Edward H. West 	 
	 	 	Name:  	Edward H. West 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 
	 	EDUCATION MANAGEMENT FINANCE CORP.

 	 
	 	By:  	/s/ Edward H. West 	 
	 	 	Name:  	Edward H. West 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 

 

 

	 	 	 	 	 
	 	ARGOSY UNIVERSITY FAMILY CENTER, INC.

BROWN MACKIE HOLDING COMPANY

THE CONNECTING LINK, INC.

EDMC MARKETING AND ADVERTISING, INC.

EDMC AVIATION, INC.

HIGHER EDUCATION SERVICES, INC.

MCM UNIVERSITY PLAZA, INC.

AID RESTAURANT, INC.

AIH RESTAURANT, INC.

AIIM RESTAURANT, INC.

EDUCATION FINANCE I LLC

 	 
	 	By:  	/s/ Dorinda A. Pannozzo 	 
	 	 	Name:  	Dorinda A. Pannozzo 	 
	 	 	Title:  	Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS,

as Administrative Agent and as
 Collateral
Agent

 	 
	 	By:  	/s/ Rachel Lanava	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	/s/ Ola Anderssen	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BNP PARIBAS,

as Issuing Bank

 	 
	 	By:  	/s/
Rachel Lanava	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	/s/
Ola Anderssen	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,

as Issuing Bank

 	 
	 	By:  	/s/
John P. Wafford	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK,
 N.A., as Issuing Bank

 	 
	 	By:  	/s/
Mathew H. Maissie	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL
 ASSOCIATION, as Issuing
Bank

 	 
	 	By:  	/s/
D. W. Riefner	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 

	 	 	[LENDERS]
	 
	 	 	 	 	 	 
	 

	 	By:
	 	[On file with Administrative Agent]	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

 

 

Appendix A-1

Term Loan Commitments1

	 	 	 	 	 
	Class	 	Per Lender	 	Aggregate
	Tranche C-2 Term Loan 

Commitment
	 	[On file with

Administrative Agent]
	 	$763,061,849.49
	 	 	 	 	 
	Tranche C Term Loan 

Commitment
	 	[On file with

Administrative Agent]
	 	$348,953,050.51

 

			
	1	 	As of the Second ARCA Effective Date, after giving effect to the conversions set forth herein.

 

 

Appendix A-2

Revolving Commitments2

	 	 	 	 	 
	Class	 	Per Lender	 	Aggregate
	2012 Revolving 

Commitment
	 	[On file with

Administrative Agent]
	 	$114,187,500.00
	 	 	 	 	 
	2015 Revolving 

Commitment
	 	[On file with

Administrative Agent]
	 	$328,312,500.00

 

			
	2	 	As of the Second ARCA Effective Date, after giving effect to the conversions set forth herein.

 

 

EXHIBIT
A

SECOND AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

dated as of February 13, 2007

and

as amended and restated as of December 7, 2010

among

EDUCATION MANAGEMENT LLC,

EDUCATION MANAGEMENT HOLDINGS LLC,

CERTAIN SUBSIDIARIES OF EDUCATION MANAGEMENT HOLDINGS LLC,

as Guarantors,

THE DESIGNATED SUBSIDIARY BORROWERS

REFERRED TO HEREIN,

VARIOUS LENDERS,

CREDIT SUISSE SECURITIES (USA) LLC,

as Syndication Agent,

and

BNP PARIBAS,

as Administrative Agent and Collateral Agent

 

$1,554,514,900 Senior Secured Credit Facilities

 

BARCLAYS CAPITAL,

as Lead Arranger

BARCLAYS CAPITAL,

GOLDMAN SACHS LENDING PARTNERS LLC,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and BNP PARIBAS SECURITIES CORP.,

as Joint Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	SECTION 1. DEFINITIONS AND INTERPRETATION
	 	 	2	 
	1.1. Definitions
	 	 	2	 
	1.2. Accounting Terms
	 	 	40	 
	1.3. Interpretation, etc.
	 	 	41	 
	 
	 	 	 	 
	SECTION 2. LOANS AND LETTERS OF CREDIT
	 	 	41	 
	2.1. Term Loans
	 	 	41	 
	2.2. Revolving Loans
	 	 	41	 
	2.3. Swing Line Loans
	 	 	43	 
	2.4. Issuance of Letters of Credit and Purchase of Participations Therein
	 	 	45	 
	2.5. Pro Rata Shares; Availability of Funds
	 	 	51	 
	2.6. Use of Proceeds
	 	 	51	 
	2.7. Evidence of Debt; Register; Lenders’ Books and Records; Notes
	 	 	52	 
	2.8. Interest on Loans
	 	 	53	 
	2.9. Conversion/Continuation
	 	 	55	 
	2.10. Default Interest
	 	 	55	 
	2.11. Fees
	 	 	55	 
	2.12. Scheduled Amortization of Term Loans
	 	 	57	 
	2.13. Voluntary Prepayments/Commitment Reductions
	 	 	57	 
	2.14. Mandatory Prepayments/Commitment Reductions
	 	 	59	 
	2.15. Application of Prepayments/Reductions
	 	 	60	 
	2.16. General Provisions Regarding Payments
	 	 	61	 
	2.17. Ratable Sharing
	 	 	62	 
	2.18. Making or Maintaining Eurodollar Rate Loans
	 	 	63	 
	2.19. Increased Costs; Capital Adequacy
	 	 	65	 
	2.20. Taxes; Withholding, etc.
	 	 	66	 
	2.21. Obligation to Mitigate
	 	 	68	 
	2.22. Defaulting Lenders
	 	 	69	 
	2.23. Removal or Replacement of a Lender
	 	 	70	 
	2.24. Incremental Facilities
	 	 	71	 
	2.25. Designated Subsidiary Borrowers
	 	 	73	 
	2.26. Joint and Several Liability
	 	 	73	 
	 
	 	 	 	 
	SECTION 3. CONDITIONS PRECEDENT
	 	 	75	 
	3.1. Effective Date
	 	 	75	 
	3.2. Conditions to Each Credit Extension
	 	 	76	 
	3.3. Conditions to Effectiveness of this Agreement
	 	 	77	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES
	 	 	77	 
	4.1. Existence, Qualification and Power; Compliance with Laws
	 	 	77	 
	4.2. Authorization; No Contravention
	 	 	77	 
	4.3. Governmental Authorization; Other Consents
	 	 	78	 
	4.4. Binding Effect
	 	 	78	 
	4.5. Financial Statements; No Material Adverse Effect
	 	 	78	 

ii

 

	 	 	 	 	 
	 	 	Page
	4.6. Litigation
	 	 	79	 
	4.7. No Default
	 	 	79	 
	4.8. Ownership of Property; Liens
	 	 	79	 
	4.9. Environmental Compliance
	 	 	79	 
	4.10. Taxes
	 	 	80	 
	4.11. ERISA Compliance
	 	 	81	 
	4.12. Subsidiaries; Equity Interests
	 	 	81	 
	4.13. Margin Regulations; Investment Company Act
	 	 	81	 
	4.14. Disclosure
	 	 	81	 
	4.15. Intellectual Property; Licenses, Etc.
	 	 	82	 
	4.16. Solvency
	 	 	82	 
	4.17. Subordination of Junior Financing
	 	 	82	 
	4.18. Labor Matters
	 	 	82	 
	4.19. Collateral Documents
	 	 	82	 
	4.20. Patriot Act
	 	 	83	 
	 
	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS
	 	 	83	 
	5.1. Financial Statements
	 	 	83	 
	5.2. Certificates; Other Information
	 	 	85	 
	5.3. Notices
	 	 	86	 
	5.4. Payment of Obligations
	 	 	87	 
	5.5. Preservation of Existence, Etc.
	 	 	87	 
	5.6. Maintenance of Properties
	 	 	87	 
	5.7. Maintenance of Insurance
	 	 	87	 
	5.8. Compliance with Laws
	 	 	87	 
	5.9. Books and Records
	 	 	88	 
	5.10. Inspection Rights
	 	 	88	 
	5.11. Compliance with Environmental Laws
	 	 	88	 
	5.12. Subsidiaries
	 	 	88	 
	5.13. Additional Material Real Estate Assets
	 	 	89	 
	5.14. Further Assurances
	 	 	89	 
	5.15. Survey of Closing Date Mortgaged Property
	 	 	89	 
	 
	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS
	 	 	90	 
	6.1. Liens
	 	 	90	 
	6.2. Investments
	 	 	92	 
	6.3. Indebtedness
	 	 	94	 
	6.4. Fundamental Changes
	 	 	98	 
	6.5. Dispositions
	 	 	99	 
	6.6. Restricted Payments
	 	 	101	 
	6.7. Change in Nature of Business
	 	 	103	 
	6.8. Transactions with Affiliates
	 	 	103	 
	6.9. Burdensome Agreements
	 	 	104	 
	6.10. Financial Covenants
	 	 	104	 
	6.11. Accounting Changes
	 	 	106	 
	6.12. Prepayments, Etc. of Indebtedness; Amendment of Agreements
	 	 	106	 
	6.13. Equity Interests of Company and Subsidiaries
	 	 	106	 

iii

 

	 	 	 	 	 
	 	 	Page
	6.14. Holding Company
	 	 	106	 
	6.15. Capital Expenditures
	 	 	107	 
	6.16. Interest Rate Protection
	 	 	107	 
	 
	 	 	 	 
	SECTION 7. GUARANTY
	 	 	108	 
	7.1. Guaranty of the Obligations
	 	 	108	 
	7.2. Contribution by Guarantors
	 	 	108	 
	7.3. Payment by Guarantors
	 	 	108	 
	7.4. Liability of Guarantors Absolute
	 	 	109	 
	7.5. Waivers by Guarantors
	 	 	111	 
	7.6. Guarantors’ Rights of Subrogation, Contribution, etc.
	 	 	111	 
	7.7. Subordination of Other Obligations
	 	 	112	 
	7.8. Continuing Guaranty
	 	 	112	 
	7.9. Authority of Guarantors or Borrowers
	 	 	112	 
	7.10. Financial Condition of Borrowers
	 	 	112	 
	7.11. Bankruptcy, etc.
	 	 	113	 
	7.12. Discharge of Guaranty Upon Sale of Guarantor
	 	 	113	 
	 
	 	 	 	 
	SECTION 8. EVENTS OF DEFAULT AND REMEDIES
	 	 	114	 
	8.1. Events of Default
	 	 	114	 
	8.2. Remedies Upon Event of Default
	 	 	116	 
	8.3. Company’s Right to Cure
	 	 	116	 
	 
	 	 	 	 
	SECTION 9. AGENTS
	 	 	117	 
	9.1. Appointment of Agents
	 	 	117	 
	9.2. Powers and Duties
	 	 	117	 
	9.3. General Immunity
	 	 	118	 
	9.4. Agents Entitled to Act as Lender
	 	 	119	 
	9.5. Lenders’ Representations, Warranties and Acknowledgment
	 	 	119	 
	9.6. Right to Indemnity
	 	 	120	 
	9.7. Successor Administrative Agent, Collateral Agent and Swing Line Lender
	 	 	121	 
	9.8. Collateral Documents and Guaranty
	 	 	122	 
	 
	 	 	 	 
	SECTION 10. MISCELLANEOUS
	 	 	122	 
	10.1. Notices
	 	 	122	 
	10.2. Expenses
	 	 	123	 
	10.3. Indemnity
	 	 	124	 
	10.4. Set-Off
	 	 	125	 
	10.5. Amendments and Waivers
	 	 	125	 
	10.6. Successors and Assigns; Participations
	 	 	127	 
	10.7. Independence of Covenants
	 	 	132	 
	10.8. Survival of Representations, Warranties and Agreements
	 	 	132	 
	10.9. No Waiver; Remedies Cumulative
	 	 	132	 
	10.10. Marshalling; Payments Set Aside
	 	 	132	 
	10.11. Severability
	 	 	133	 
	10.12. Obligations Several; Independent Nature of Lenders’ Rights
	 	 	133	 

iv

 

	 	 	 	 	 
	 	 	Page
	10.13. Headings
	 	 	133	 
	10.14. APPLICABLE LAW
	 	 	133	 
	10.15. CONSENT TO JURISDICTION
	 	 	133	 
	10.16. WAIVER OF JURY TRIAL
	 	 	134	 
	10.17. Confidentiality
	 	 	134	 
	10.18. Usury Savings Clause
	 	 	135	 
	10.19. Counterparts
	 	 	135	 
	10.20. Effectiveness
	 	 	135	 
	10.21. Patriot Act
	 	 	136	 
	10.22. Electronic Execution of Assignments
	 	 	136	 
	10.23. Public-Side Lenders
	 	 	136	 
	10.24. Amendment and Restatement
	 	 	136	 
	10.25. Reaffirmation and Grant of Security Interests
	 	 	137	 

v

 

	 	 	 	 	 	 	 

	APPENDICES:

	 	 	A-1	 	 	Term Loan Commitments
	 

	 	 	A-2	 	 	Revolving Commitments
	 

	 	 	B	 	 	Notice Addresses
	 

	 	 	C	 	 	Original Sections 3.1(g) and 3.1(h)
	 
	 	 	 	 	 	 
	SCHEDULES:

	 	 	3.1(g)		 	Closing Date Mortgaged Properties
	 

	 	 	4.1 
	 	 	Jurisdictions of Organization
	 

	 	 	4.9	 	 	Environmental Matters
	 

	 	 	4.10	 	 	Taxes
	 

	 	 	4.11	 	 	ERISA Compliance
	 

	 	 	4.12	 	 	Subsidiaries and Other Equity Investments
	 

	 	 	6.1(b)		 	Existing Liens
	 

	 	 	6.2(f)	 	 	Existing Investments
	 

	 	 	6.3(b)	 	 	Existing Indebtedness
	 

	 	 	6.5(l)	 	 	Dispositions
	 

	 	 	6.8	 	 	Transactions with Affiliates
	 

	 	 	6.9	 	 	Existing Restrictions
	 
	 	 	 	 	 	 
	EXHIBITS:

	 	 	A-1	 	 	Funding Notice
	 

	 	 	A-2	 	 	Conversion/Continuation Notice
	 

	 	 	A-3	 	 	Issuance Notice
	 

	 	 	B-1	 	 	Tranche C Term Loan Note
	 

	 	 	B-2	 	 	2012 Revolving Loan Note
	 

	 	 	B-3	 	 	Swing Line Note
	 

	 	 	B–4	 	 	Tranche C-2 Term Loan Note
	 

	 	 	B–5	 	 	2015 Revolving Loan Note
	 

	 	 	C	 	 	Compliance Certificate
	 

	 	 	D	 	 	Effective Date Opinions of Counsel
	 

	 	 	E	 	 	Assignment Agreement
	 

	 	 	F	 	 	Certificate Re Non-bank Status
	 

	 	 	G-1	 	 	Effective Date Certificate
	 

	 	 	G-2	 	 	Effective Date Solvency Certificate
	 

	 	 	H	 	 	[Reserved]
	 

	 	 	I	 	 	Mortgage
	 

	 	 	J	 	 	Counterpart Agreement
	 

	 	 	K	 	 	Intercompany Note
	 

	 	 	L	 	 	Joinder Agreement
	 

	 	 	M	 	 	Election to Participate
	 

	 	 	N	 	 	Election to Terminate

vi

 

SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

     This SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT, dated as of February 13, 2007
and amended and restated as of December 7, 2010, is entered into by and among EDUCATION MANAGEMENT
LLC, a Delaware limited liability company (“Company”), EDUCATION MANAGEMENT HOLDINGS LLC, a
Delaware limited liability company (“Holdings”), CERTAIN SUBSIDIARIES OF HOLDINGS, as Guarantors,
the Designated Subsidiary Borrowers party hereto from time to time (together with Company,
“Borrowers”), the Lenders party hereto from time to time, CREDIT SUISSE SECURITIES (USA) LLC
(“Credit Suisse”), as Syndication Agent (in such capacity, “Syndication Agent”), and BNP PARIBAS
(“BNP”), as Administrative Agent (together with its permitted successors in such capacity,
“Administrative Agent”) and as Collateral Agent (together with its permitted successors in such
capacity, “Collateral Agent”).

RECITALS:

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

     WHEREAS, simultaneously with the consummation of the Transaction, Company, Holdings and
certain subsidiaries of Holdings entered into that certain Credit and Guaranty Agreement, dated as
of June 1, 2006 (as amended, supplemented or otherwise modified from time to time prior to the
Effective Date, the “Original Credit Agreement”), with the lenders party thereto from time to time
(the “Original Lenders”), Credit Suisse, as syndication agent, BNP, as administrative agent and
collateral agent, and Merrill Lynch Capital Corporation and Bank of America, N.A., as documentation
agents, pursuant to which the Original Lenders extended or committed to extend certain credit
facilities to the Borrowers;

     WHEREAS, the Original Credit Agreement was amended and restated in the form of the Amended and
Restated Credit Agreement, dated as of February 13, 2007 (as amended, supplemented or otherwise
modified from time to time, the “Existing ARCA”), among Borrowers, Company, Holdings, the Lenders,
the Syndication Agent and the Administrative Agent;

     WHEREAS, pursuant to the Amendment and Restatement Agreement, and upon satisfaction of the
conditions set forth therein, the Existing ARCA is being further amended and restated in the form
of this Agreement;

     WHEREAS, Company has agreed to secure all of its Obligations by granting to Collateral Agent,
for the benefit of Secured Parties, a First Priority Lien on substantially all of its assets,
including a pledge of all of the Equity Interests in each of its Included Domestic Subsidiaries and
66% of all the Equity Interests in each of its Foreign Subsidiaries;

     WHEREAS, Guarantors have agreed to guarantee the obligations of Borrowers hereunder and to
secure their respective Obligations by granting to Collateral Agent, for the benefit of Secured
Parties, a First Priority Lien on substantially all of their respective assets, including a pledge
of all of the Equity Interests in each of their respective Included Domestic

 

 

Subsidiaries (including each Borrower) and 66% of all the Equity Interests in each of their
respective Foreign Subsidiaries; and

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

SECTION 1. DEFINITIONS AND INTERPRETATION

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

          “2012 Revolving Commitment” means the commitment of a 2012 Revolving Lender to make or
otherwise fund any 2012 Revolving Loan and to acquire participations in Letters of Credit and Swing
Line Loans hereunder, and “2012 Revolving Commitments” means such commitments of all 2012 Revolving
Lenders in the aggregate. The amount of each 2012 Revolving Lender’s 2012 Revolving Commitment is
set forth on Appendix A-2 under the caption “2012 Revolving Commitment” or in the applicable
Assignment Agreement or Joinder Agreement, as applicable, subject to any adjustment or reduction
pursuant to the terms and conditions hereof.

          “2012 Revolving Commitment Period” means the period from the Closing Date to but excluding the
2012 Revolving Commitment Termination Date.

          “2012 Revolving Commitment Termination Date” means the earliest to occur of (i) the sixth
anniversary of the Closing Date, (ii) the date the 2012 Revolving Commitments are permanently
reduced to zero pursuant to Section 2.13(b), and (iii) the date of the termination of the 2012
Revolving Commitments pursuant to Section 8.1.

          “2012 Revolving Exposure” means, with respect to any 2012 Revolving Lender as of any date of
determination, (i) prior to the termination of the 2012 Revolving Commitments, that Lender’s 2012
Revolving Commitment; and (ii) after the termination of the 2012 Revolving Commitments, the sum of
(a) the aggregate outstanding principal amount of the 2012 Revolving Loans of that Lender, (b) the
aggregate amount of all participations by that 2012 Revolving Lender in any outstanding Letters of
Credit or any unreimbursed drawing under any Letter of Credit, and (c) the aggregate amount of all
participations therein by that 2012 Revolving Lender in any outstanding Swing Line Loans.

          “2012 Revolving Lender” means a Lender with a 2012 Revolving Commitment or, if the 2012
Revolving Commitments have terminated or expired, a Lender with 2012 Revolving Exposure.

          “2012 Revolving Loan Note” means a promissory note in the form of Exhibit B-2, as it may be
amended, supplemented or otherwise modified from time to time.

          “2012 Revolving Loans” means a Loan made by a 2012 Revolving Lender pursuant to its 2012
Revolving Commitment.

2

 

          “2015 Revolving Commitment” means the commitment of a 2015 Revolving Lender to make or
otherwise fund any 2015 Revolving Loan and to acquire participations in Letters of Credit and Swing
Line Loans hereunder, and “2015 Revolving Commitments” means such commitments of all 2015 Revolving
Lenders in the aggregate. The amount of each 2015 Revolving Lender’s 2015 Revolving Commitment is
set forth on Appendix A-2 under the caption “2015 Revolving Commitment” or in the applicable
Assignment Agreement or Joinder Agreement, as applicable, subject to any adjustment or reduction
pursuant to the terms and conditions hereof.

          “2015 Revolving Commitment Period” means the period from the Closing Date to but excluding the
2015 Revolving Commitment Termination Date.

          “2015 Revolving Commitment Termination Date” means the earliest to occur of (i) the ninth
anniversary of the Closing Date, (ii) the date the 2015 Revolving Commitments are permanently
reduced to zero pursuant to Section 2.13(b), and (iii) the date of the termination of the 2015
Revolving Commitments pursuant to Section 8.1; provided, however, that such date shall become March
1, 2014 if all the Senior Notes are not repaid in full or extended, renewed or refinanced with a
Permitted Refinancing pursuant to Section 6.3(r) on or prior to March 1, 2014, which Permitted
Refinancing will not mature or require any scheduled amortization or payments of principal prior to
the date that is ninety-one (91) days after the tenth anniversary of the Closing Date.

          “2015 Revolving Exposure” means, with respect to any 2015 Revolving Lender as of any date of
determination, (i) prior to the termination of the 2015 Revolving Commitments, that Lender’s 2015
Revolving Commitment; and (ii) after the termination of the 2015 Revolving Commitments, the sum of
(a) the aggregate outstanding principal amount of the 2015 Revolving Loans of that Lender, (b) the
aggregate amount of all participations by that 2015 Revolving Lender in any outstanding Letters of
Credit or any unreimbursed drawing under any Letter of Credit, (c) in the case of Swing Line
Lender, the aggregate outstanding principal amount of all Swing Line Loans (net of any
participations therein by other Lenders), and (d) the aggregate amount of all participations
therein by that 2015 Revolving Lender in any outstanding Swing Line Loans.

          “2015 Revolving Lender” means a Lender with a 2015 Revolving Commitment or, if the 2015
Revolving Commitments have terminated or expired, a Lender with 2015 Revolving Exposure.

          “2015 Revolving Loan Note” means a promissory note in the form of Exhibit B-5, as it may be
amended, supplemented or otherwise modified from time to time.

          “2015 Revolving Loans” means a Loan made by a 2015 Revolving Lender pursuant to its 2015
Revolving Commitment.

          “Adjusted Eurodollar Rate” means, for any Interest Rate Determination Date with respect to an
Interest Period for a Eurodollar Rate Loan, the rate per annum obtained by
dividing (and rounding upward to the next whole multiple of 1/16 of 1%) (a) (i) the rate per
annum (rounded to the nearest 1/100 of 1%) equal to the rate determined by Administrative

3

 

Agent to
be the offered rate which appears on the page of the Telerate Screen which displays an average
British Bankers Association Interest Settlement Rate (such page currently being page number 3740 or
3750, as applicable) for deposits (for delivery on the first day of such period) with a term
equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London, England
time) on such Interest Rate Determination Date, or (ii) in the event the rate referenced in the
preceding clause (i) does not appear on such page or service or if such page or service shall cease
to be available, the rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate
determined by Administrative Agent to be the offered rate on such other page or other service which
displays an average British Bankers Association Interest Settlement Rate for deposits (for delivery
on the first day of such period) with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (iii)
in the event the rates referenced in the preceding clauses (i) and (ii) are not available, the rate
per annum (rounded to the nearest 1/100 of 1%) equal to the offered quotation rate to first class
banks in the London interbank market by BNP for deposits (for delivery on the first day of the
relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the
applicable Loan of Administrative Agent, in its capacity as a Lender, for which the Adjusted
Eurodollar Rate is then being determined with maturities comparable to such period as of
approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, by (b) an
amount equal to (i) one minus (ii) the Applicable Reserve Requirement.

          “Administrative Agent” as defined in the preamble hereto.

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

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

          “Affiliate” means, as applied to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power (i) to vote 10% or more of the Securities having ordinary voting power for
the election of directors of such Person or (ii) to direct or cause the direction of the management
and policies of that Person, whether through the ownership of voting securities or by contract or
otherwise.

          “Agent” means each of Administrative Agent, Syndication Agent, Auction Managers, Arrangers and
Collateral Agent.

          “Aggregate Amounts Due” as defined in Section 2.17.

          “Aggregate Payments” as defined in Section 7.2.

          “Agreement” means this Second Amended and Restated Credit and Guaranty Agreement, dated as of
December 7, 2010, as it may be amended, supplemented or otherwise modified from time to time.

4

 

          “Amendment and Restatement Agreement” means the Amendment and Restatement Agreement, dated of
December 7, 2010, among the parties thereto.

          “Applicable Margin’’ and “Applicable Revolving Commitment Fee Percentage’’ mean (a) with
respect to Tranche C Term Loans that are Eurodollar Rate Loans, 2.00% per annum, which shall be
reduced to 1.75% per annum if (x) the Total Leverage Ratio then in effect is less than 5.50:1 or
(y) the credit facilities provided hereunder have ratings of at least B1 from Moody’s and at least
B+ from S&P; (b) with respect to Tranche C Term Loans that are Base Rate Loans, an amount equal to
(i) the Applicable Margin for Eurodollar Rate Loans as set forth in clause (a) above, as
applicable, minus (ii) 1.00% per annum; (c) with respect to Tranche C-2 Term Loans that are
Eurodollar Rate Loans, 4.00% per annum, which shall be reduced to 3.50% per annum if the Company
obtains a public corporate family rating of at least Ba3 (stable) from Moody’s and a public
corporate credit rating of at least BB (stable) from S&P; (d) with respect to Tranche C-2 Term
Loans that are Base Rate Loans, an amount equal to (i) the Applicable Margin for Eurodollar Rate
Loans as set forth in clause (c) above, as applicable, minus (ii) 1.00% per annum; (e) with
respect to 2015 Revolving Loans that are Eurodollar Rate Loans, 4.00% per annum, which shall be
reduced to 3.50% per annum if the Company obtains a public corporate family rating of at least Ba3
(stable) from Moody’s and a public corporate credit rating of at least BB (stable) from S&P, and
the Applicable Revolving Commitment Fee Percentage with respect to 2015 Revolving Commitments, a
percentage per annum, determined by reference to the Total Leverage Ratio in effect from time to
time as set forth in the table below; (f) with respect to 2012 Revolving Loans that are Eurodollar
Rate Loans and the Applicable Revolving Commitment Fee Percentage with respect to 2012 Revolving
Commitments, a percentage per annum, determined by reference to the Total Leverage Ratio in effect
from time to time as set forth below

	 	 	 	 	 
	 	 	 	 	Applicable Revolving
	 	 	 	 	Commitment Fee Percentage
	 	 	 	 	with respect to 2012
	Total Leverage	 	Applicable Margin for	 	Revolving Commitments and
	Ratio	 	2012 Revolving Loans	 	2015 Revolving Commitments
	≥ 6.00:1.00
	 	2.25%	 	0.50%
	< 6.00:1.00
	 	 	 	 
	≥ 5.00:1.00
	 	2.00%	 	0.50%
	< 5.00:1.00
	 	 	 	 
	≥ 4.00:1.00
	 	1.75%	 	0.375%
	< 4.00:1.00
	 	1.50%	 	0.375%

; (g) with respect to Swing Line Loans and 2015 Revolving Loans that are Base Rate Loans, an amount
equal to (i) the Applicable Margin for Eurodollar Rate Loans as set forth in clause (e) above, as
applicable, minus (ii) 1.00% per annum, and (h) with respect to 2012 Revolving Loans that
are Base Rate Loans, an amount equal to (i) the Applicable Margin for Eurodollar Rate

5

 

Loans as set forth in clause (f) above, as applicable, minus (ii) 1.00% per annum. No
change in the Applicable Margin or the Applicable Revolving Commitment Fee Percentage shall be
effective until three Business Days after the date on which Administrative Agent shall have
received the applicable financial statements and a Compliance Certificate pursuant to
Section 5.2(b) calculating the Total Leverage Ratio. At any time Company has not submitted to
Administrative Agent the applicable information as and when required under Section 5.2(b), the
Applicable Margin and the Applicable Revolving Commitment Fee Percentage shall be determined, where
applicable, as if the Total Leverage Ratio were in excess of 6.00:1.00. Within one Business Day of
receipt of the applicable information under Section 5.2(b), Administrative Agent shall give each
Lender telefacsimile or telephonic notice (confirmed in writing) of the Applicable Margin and the
Applicable Revolving Commitment Fee Percentage in effect for the applicable Class from such date.

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

          “Arrangers” means, (a) in respect of the Existing ARCA, collectively, Credit Suisse and GSCP
in their capacities as joint lead arrangers and bookrunners and (b) in respect of this Agreement
and the Amendment and Restatement Agreement, collectively, Barclays in its capacity as lead
arranger and a joint bookrunner and GSLP, Merrill Lynch, Pierce, Fenner & Smith Incorporated and
BNPP SC in their capacities as joint bookrunners.

          “Asset Sale” means a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, transfer or other disposition to, or any exchange of property with, any
Person (other than a Credit Party), in one transaction or a series of transactions, of all or any
part of Holdings’ or any of its Subsidiaries’ businesses, assets or properties of any kind, whether
real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter
acquired, including, without limitation, the Equity Interests in any of Holdings’ Subsidiaries,
other than (i) inventory (or other assets) sold or leased in the ordinary course of business
(excluding any such sales by operations or divisions discontinued or to be discontinued),
(ii) sales of assets in one transaction or a series of related transactions for consideration of
less than $1,000,000, and (iii) sales of other assets for aggregate consideration of less than
$5,000,000 in the aggregate during any Fiscal Year.

6

 

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

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

          “Attributable Indebtedness” means, on any date, in respect of any Capitalized Lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared
as of such date in accordance with GAAP.

          “Auction Managers” means GSLP, JPMorgan and BNPP SC.

          “Auction Procedures” means, collectively, the auction procedures, auction notice, return bid
and Company Assignment Agreement in substantially the form set forth as Exhibit O hereto;
provided, that Auction Managers, in consultation with Company, may amend or modify the
procedures, notices, bids and Company Assignment Agreement in connection with any Company Loan
Purchase (including economic terms to the extent no Lenders have validly tendered Tranche C Term
Loans requested in an offer but excluding economic terms of an auction after any Lender has validly
tendered Tranche C Term Loans requested in an offer other than to increase the Auction Amount (as
defined in the Auction Procedures) or raise the Discount Range (as defined in the Auction
Procedures)); and provided further, that no such amendments or modifications may be
implemented after 24 hours prior to the date and time return bids are due.

          “Bank of America” means Bank of America, N.A.

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

          “Barclays” means Barclays Capital, the investment banking division of Barclays Bank PLC.

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

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

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

          “BNP” as defined in the preamble hereto.

          “BNPP SC” means BNP Paribas Securities Corp.

7

 

          “Board of Governors” means the Board of Governors of the Federal Reserve System of the United
States, or any successor thereto.

          “Borrowers” as defined in the preamble hereto.

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

          “Capital Expenditures” means, for any period, the aggregate of all expenditures of Holdings
and its Subsidiaries during such period determined on a consolidated basis that, in accordance with
GAAP, are or should be included in “purchase of property, plant and equipment” or similar items
reflected in the consolidated statement of cash flows of Holdings and its Subsidiaries;
provided that the term “Capital Expenditures” shall not include (i) expenditures made in
connection with the replacement, substitution, restoration or repair of assets to the extent
financed with (x) insurance proceeds paid on account of the loss of or damage to the assets being
replaced, restored or repaired or (y) awards of compensation arising from the taking by eminent
domain or condemnation of the assets being replaced, (ii) the purchase price of equipment that is
purchased simultaneously with the trade-in of existing equipment to the extent that the gross
amount of such purchase price is reduced by the credit granted by the seller of such equipment for
the equipment being traded in at such time, (iii) expenditures that constitute any part of
Consolidated Lease Expense, (iv) expenditures that are accounted for as capital expenditures by
Holdings or any Subsidiary and that actually are paid for by a Person other than Holdings or any
Subsidiary and for which neither Holdings nor any Subsidiary has provided or is required to provide
or incur, directly or indirectly, any consideration or obligation to such Person or any other
Person (whether before, during or after such period), (v) the book value of any asset owned by
Holdings or any Subsidiary prior to or during such period to the extent that such book value is
included as a capital expenditure during such period as a result of such Person reusing or
beginning to reuse such asset during such period without a corresponding expenditure actually
having been made in such period, provided that (A) any expenditure necessary in order to
permit such asset to be reused shall be included as a Capital Expenditure during the period in
which such expenditure actually is made and (B) such book value shall have been included in Capital
Expenditures when such asset was originally acquired, (vi) expenditures that constitute Permitted
Acquisitions or (vii) the purchase of plant, property or equipment to the extent financed with the
proceeds of Dispositions that are not required to be applied to prepay Term Loans pursuant to
Section 2.14.

          “Capitalized Leases” means all leases that have been or should be, in accordance with GAAP,
recorded as capitalized leases; provided that for all purposes hereunder the amount of
obligations under any Capitalized Lease shall be the amount thereof accounted for as a liability in
accordance with GAAP as in effect on the Second ARCA Effective Date.

8

 

          “Cash Equivalents” means, as at any date of determination, (a) marketable securities (i)
issued or directly and unconditionally guaranteed as to interest and principal by the United States
Government or any member nation of the European Union or (ii) issued by any agency of the United
States or any member nation of the European Union, the obligations of which are backed by the full
faith and credit of the United States or such member nation of the European Union, in each case
maturing within one year after such date; (b) marketable direct obligations issued by any state of
the United States of America or any political subdivision of any such state or any public
instrumentality thereof or by any foreign government having an investment grade rating from either
S&P or Moody’s, in each case maturing within one year after such date and having, at the time of
the acquisition thereof, a rating of at least A-2 from S&P or at least P-2 from Moody’s; (c)
commercial paper maturing no more than one year from the date of creation thereof and having, at
the time of the acquisition thereof, a rating of at least A-2 from S&P or at least P-2 from
Moody’s; (d) certificates of deposit or bankers’ acceptances maturing within one year after such
date and issued or accepted by any Lender or by any commercial bank organized under the laws of the
United States of America, any state thereof, the District of Columbia or any member nation of the
Organization for Economic Cooperation and Development that (i) is at least “adequately capitalized”
(as defined in the regulations of its primary Federal banking regulator) and (ii) has Tier 1
capital (as defined in such regulations) of not less than $100,000,000; and (e) shares of any money
market mutual fund that (i) has substantially all of its assets invested continuously in the types
of investments referred to in clauses (a) and (b) above, (ii) has net assets of not less than
$500,000,000, and (iii) has the highest rating obtainable from either S&P or Moody’s.

          “Cash Management Obligations” means obligations owed by Holdings, Company or any of its
Subsidiaries to any Lender or any Affiliate of a Lender in respect of any overdraft and related
liabilities arising from treasury, depository and cash management services or any automated
clearing house transfers of funds.

          “Casualty Event” means any event that gives rise to the receipt by Holdings, Company or any of
its Subsidiaries of any insurance proceeds or condemnation awards in respect of any equipment,
fixed assets or real property (including any improvements thereon) to replace or repair such
equipment, fixed assets or real property.

          “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as subsequently amended.

          “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency.

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

          “Change of Control” means, at any time, (a) (i) prior to the consummation of a Qualifying IPO
of Holdings or any direct or indirect parent of Holdings, including without limitation, Education
Management (each of Holdings and any such parent, a “Parent”), the Sponsors shall cease to
beneficially own and control at least 51% on a fully diluted basis of the voting interests in the
Equity Interests of each such Parent and (ii) after the consummation of a

9

 

Qualifying IPO of any Parent, the Sponsors shall cease to beneficially own and control on a
fully diluted basis at least 35% of the voting interests in the Equity Interests of such Parent;
(b) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange
Act) other than the Sponsors (i) shall have acquired beneficial ownership of 35% or more on a fully
diluted basis of the voting interest in the Equity Interests of such Parent, and the percentage of
the voting interest in the Equity Interests of such Parent acquired by such person or group
exceeds, in the aggregate, the percentage held by the Sponsors taken as a whole or (ii) shall have
obtained the power (whether or not exercised) to elect a majority of the members of the board of
directors (or similar governing body) of such Parent; (c) the majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of any Parent shall cease to be
occupied by Persons who either (i) were members of the board of directors of such Parent on the
Closing Date (after giving effect to the Transaction) or (ii) were nominated for election by the
board of directors of such Parent, a majority of whom were directors on the Closing Date (after
giving effect to the Transaction) or whose election or nomination for election was previously
approved by a majority of such directors; (d) Holdings shall cease to beneficially own and control
100% on a fully diluted basis of the voting interests in the Equity Interests of Company; or (e)
any “change of control” (or any comparable term) in the Senior Notes Indenture or the Senior
Subordinated Notes Indenture.

          “Class” means (a) with respect to Lenders, each of the following classes of Lenders: (i)
Lenders having Tranche C Term Loan Exposure, (ii) Lenders having Tranche C-2 Term Loan Exposure,
(iii) Lenders having 2012 Revolving Exposure, (iv) Lenders having 2015 Revolving Exposure
(including Swing Line Lender) and (v) Lenders having New Term Loan Exposure of each applicable
Series, (b) with respect to Loans, each of the following classes of Loans: (i) Tranche C Term
Loans, (ii) Tranche C-2 Term Loans, (iii) 2012 Revolving Loans, (iv) 2015 Revolving Loans
(including Swing Line Loans) and (v) each Series of New Term Loans and (c) with respect to
Revolving Commitments, each of the following classes of Revolving Commitments: (i) 2012 Revolving
Commitments and (ii) 2015 Revolving Commitments.

          “Closing Date” means the date of the initial Credit Extension under the Original Credit
Agreement, which occurred on June 1, 2006.

          “Closing Date Mortgaged Property” as defined in Original Section 3.1(g).

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

          “Collateral Agent” as defined in the preamble hereto.

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

          “Commitment” means any Revolving Commitment or Term Loan Commitment.

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          “Company” as defined in the preamble hereto.

          “Company Assignment Agreement” means, with respect to any assignment to Company pursuant to
Section 10.6(i) hereof, an Assignment and Acceptance Agreement substantially in the form of Annex C
to the Auction Procedures (as may be modified from time to time as set forth in the definition of
Auction Procedures).

          “Company Assignment Effective Date” means, for any Company Loan Purchase, the date on which
such Company Loan Purchase is recorded in the Register.

          “Company Loan Purchase” means any purchase of Tranche C Term Loans by Company pursuant to
Section 10.6(i) hereof.

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

          “Consolidated EBITDA” means, for any period, the Consolidated Net Income for such period,
plus:

          (a) without duplication and to the extent already deducted (and not added back) in arriving at
such Consolidated Net Income, the sum of the following amounts for such period:

          (i) total interest expense and, to the extent not reflected in such total interest
expense, any losses on hedging obligations or other derivative instruments entered into for
the purpose of hedging interest rate risk, net of interest income and gains on such hedging
obligations, and costs of surety bonds in connection with financing activities,

          (ii) provision for taxes based on income, profits or capital of Holdings and its
Subsidiaries, including state, franchise and similar taxes (such as the Pennsylvania capital
tax) and foreign withholding taxes paid or accrued during such period,

          (iii) depreciation and amortization,

          (iv) other non-cash charges, including non-cash asset impairment charges and write-offs
(but excluding any non-cash charge to the extent that it represents an accrual or reserve
for potential cash items in any future period or amortization of a prepaid cash item that
was paid in a prior period),

          (v) severance, relocation costs and curtailments or modifications to pension and
post-retirement employee benefit plans,

          (vi) restructuring charges or reserves (including restructuring costs related to
acquisitions after the Closing Date and to closure or consolidation of facilities),

          (vii) other unusual or non-recurring charges during such period identified in
reasonable detail in the applicable Compliance Certificate,

          (viii) any losses attributable to minority interests,

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          (ix) the amount of management, monitoring, consulting and advisory fees and related
expenses paid to the Sponsors,

          (x) any costs or expenses incurred by Holdings or any of its Subsidiaries pursuant to
any management equity plan or stock option plan or any other management or employee benefit
plan or agreement or any stock subscription or shareholder agreement, to the extent that
such costs or expenses are funded with cash proceeds contributed to the capital of Holdings
or net cash proceeds of an issuance of Equity Interests of Holdings (other than Disqualified
Equity Interests),

          (xi) cash fees and expenses incurred in connection with the Transaction,

          (xii) any non-cash purchase accounting adjustment and any step-ups with respect to
re-valuing assets and liabilities in connection with the Transaction or any Investment
permitted under Section 6.2, and

          (xiii) any non-cash compensation costs or expenses under Statement of Financial
Accounting Standards No 123(R), “Share Based payment”, pursuant to any management equity
plan or stock option plan or any other employee benefit plan or agreement or any stock or
shareholder agreement, less

          (b) without duplication and to the extent included in arriving at such Consolidated Net
Income, the sum of the following amounts for such period:

          (i) unusual or non-recurring gains,

          (ii) non-cash gains (excluding any non-cash gain to the extent it represents the
reversal of an accrual or reserve for a potential cash item that reduced Consolidated EBITDA
in any prior period),

          (iii) gains on asset sales (other than asset sales in the ordinary course of business),

          (iv) any net after-tax income from the early extinguishment of Indebtedness or hedging
obligations or other derivative instruments, and

          (v) all gains attributable to minority interests.

          “Consolidated Excess Cash Flow” means, for any period, an amount (if positive) equal to: (a)
the sum, without duplication, of the amounts for such period of (i) Consolidated EBITDA,
plus (ii) the Consolidated Working Capital Adjustment, plus (iii) the IPO Net Cash
Proceeds to the extent applied to prepay Indebtedness for borrowed money and any premium,
make-whole or penalty payments actually paid in cash in connection with such prepayment,
minus (b) the sum, without duplication, of the amounts for such period of (i) repayments of
Indebtedness for borrowed money (including (A) the principal component of payments in respect of
Capitalized Leases and (B) the amount of any mandatory prepayment of Term Loans pursuant to Section
2.14(a) to the extent required due to a Disposition that resulted in an increase to Consolidated
Net Income and not in excess of the amount of such increase, but excluding (1) all

12

 

other prepayments of Term Loans and (2) all repayments of Revolving Loans or Swing Line Loans
except to the extent the Revolving Commitments are permanently reduced in connection with such
repayments), (ii) Capital Expenditures (net of any proceeds of any related financings with respect
to such expenditures), other than Capital Expenditures financed with Cumulative Excess Cash Flow
that is Not Otherwise Applied pursuant to Section 6.15(a)(y), (iii) Consolidated Interest Expense,
(iv) provisions for current taxes based on income of Holdings and its Subsidiaries and payable in
cash with respect to such period, (v) the amount of Investments and acquisitions made during such
period pursuant to Section 6.2 (other than Section 6.2(a)) to the extent that such Investments and
acquisitions were financed with internally generated cash flow of Holdings and its Subsidiaries,
(vi) cash payments by Holdings and its Subsidiaries during such period in respect of long-term
liabilities of Holdings and its Subsidiaries other than Indebtedness, and (vii) the aggregate
amount of any premium, make-whole or penalty payments actually paid in cash by Holdings and its
Subsidiaries during such period that are required to be made in connection with any prepayment of
Indebtedness.

          “Consolidated Interest Expense” means, for any period, total interest expense (including that
portion attributable to Capitalized Leases in accordance with GAAP and capitalized interest), net
of cash interest income, of Holdings and its Subsidiaries on a consolidated basis with respect to
all outstanding Indebtedness of Holdings and its Subsidiaries (but excluding the effects of any
discounting of Indebtedness resulting from the application of purchase accounting in connection
with the Transaction or any Permitted Acquisition), including all commissions, discounts and other
fees and charges owed with respect to letters of credit and net costs under Swap Agreements, but
excluding, however, (i) any amount not payable in cash and (ii) any amounts referred to in Section
2.11(d) payable on or before the Closing Date.

          “Consolidated Lease Expense” means, for any period, all rental expenses of Holdings and its
Subsidiaries during such period under operating leases for real or personal property, excluding
real estate taxes, insurance costs and common area maintenance charges and net of sublease income,
other than (a) obligations under vehicle leases entered into in the ordinary course of business,
(b) all such rental expenses associated with assets acquired pursuant to a Permitted Acquisition to
the extent such rental expenses relate to operating leases in effect at the time of (and
immediately prior to) such acquisition and related to periods prior to such acquisition and (c) all
obligations under Capitalized Leases, all as determined on a consolidated basis in accordance with
GAAP.

          “Consolidated Net Income” means, for any period, (a) the net income (or loss) of Holdings and
its Subsidiaries on a consolidated basis for such period taken as a single accounting period
determined in conformity with GAAP, minus (b) (i) the income (or loss) of any entity (other
than a Subsidiary of Holdings) in which any other Person (other than Holdings or any of its
Subsidiaries) has a joint interest to the extent that the declaration or payment of dividends or
similar distributions by such entity of that income is not at the time permitted by operation of
the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule,
governmental regulation or Education Law applicable to such entity, (ii) the income (or loss) of
any Person accrued prior to the date it becomes a Subsidiary of Holdings or is merged into or
consolidated with Holdings or any of its Subsidiaries or that Person’s assets are acquired by
Holdings or any of its Subsidiaries, (iii) the income of any Subsidiary of Holdings to the extent
that the declaration or payment of dividends or similar distributions by that Subsidiary

13

 

of that income is not at the time permitted by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule, governmental regulation or Education
Law applicable to that Subsidiary, and (iv) (to the extent not included in clauses (i) through
(iii) above) any net extraordinary gains or net extraordinary losses.

          “Consolidated Total Debt” means, as of any date of determination, (a) the aggregate principal
amount of Indebtedness of Holdings and its Subsidiaries outstanding on such date, determined on a
consolidated basis in accordance with GAAP (but excluding the effects of any discounting of
Indebtedness resulting from the application of purchase accounting in connection with the
Transaction or any Permitted Acquisition), consisting of Indebtedness for borrowed money,
obligations in respect of Capitalized Leases and debt obligations evidenced by promissory notes or
similar instruments, minus (b) the aggregate amount of cash and Cash Equivalents (in each
case, free and clear of all Liens, other than nonconsensual Liens permitted by Section 6.1 and
Liens permitted by Section 6.1(s) and clauses (i) and (ii) of Section 6.1(t)) that are included in
the consolidated balance sheet of Holdings and its Subsidiaries as of such date.

          “Consolidated Working Capital” means, at any date, the excess of (a) the sum of all amounts
(other than cash and Cash Equivalents) that would, in conformity with GAAP, be set forth opposite
the caption “total current assets” (or any like caption) on a consolidated balance sheet of
Holdings and its Subsidiaries at such date over (b) the sum of all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current liabilities” (or any like
caption) on a consolidated balance sheet of Holdings and its Subsidiaries on such date, including
deferred revenue but excluding, without duplication, (i) the current portion of any Funded Debt,
(ii) all Indebtedness consisting of Loans and Letter of Credit Usage to the extent otherwise
included therein, (iii) the current portion of interest and (iv) the current portion of current and
deferred income taxes.

          “Consolidated Working Capital Adjustment” means, for any period on a consolidated basis, the
amount (which may be a negative number) by which Consolidated Working Capital as of the beginning
of such period exceeds (or is less than) Consolidated Working Capital as of the end of such period.

          “Continuing Lender” means each Original Lender that has delivered a Lender Consent Letter
agreeing to convert all of the Original Term Loans made by such Original Lender to Tranche C Term
Loans.

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

          “Contributing Guarantors” as defined in Section 7.2.

          “Control” as set forth in the definition of “Affiliate.”

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

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

          “Counterpart Agreement” means a Counterpart Agreement substantially in the form of Exhibit J
delivered by a Credit Party pursuant to Section 5.12.

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

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

          “Credit Extension” means the making of a Loan or the issuing of a Letter of Credit.

          “Credit Party” means each Person (other than any Agent, Issuing Bank or any Lender or any
other representative thereof) from time to time party to a Credit Document.

          “Credit Suisse” as defined in the preamble hereto.

          “Cumulative Excess Cash Flow” as defined in Section 6.6(i).

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

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

          “Defaulting Lender” means any Lender that has (a) failed to fund any portion of Loans or
participations in any Letter of Credit within one (1) Business Day of the date required to be
funded by it hereunder, (b) notified the Borrower, the Administrative Agent or any Issuing Bank in
writing that it does not intend to comply with any of its obligations to fund any portion of Loans
or participations in any Letter of Credit under this Agreement or has made a public statement to
the effect that it does not intend to comply with such funding obligations under this Agreement or
under any other agreement in which it commits to extend credit, (c) failed, within five (5)
Business Days after a request by the Administrative Agent or any Issuing Bank (with a copy to the
Company) to confirm that it will comply with the terms of this Agreement relating to its
obligations to fund prospective Loans and participations in then outstanding Letters of Credit
(provided that such request may not be sent unless the Administrative Agent or the relevant Issuing
Bank are aware that such Lender has recently failed to comply with its funding obligations under
another syndicated loan facility or otherwise has a reasonable, good faith belief that such Lender
will not comply with its funding obligations under this Agreement), (d)

15

 

otherwise failed to pay over to the Administrative Agent, any Issuing Bank or any other Lender
any other amount required to be paid by it hereunder within one (1) Business Day of the date when
due, or (e) become or is insolvent or has a parent company that has become or is insolvent or
become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance of, or has indicated
its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent
company that has become the subject of a bankruptcy or insolvency proceeding or has had a receiver,
conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or
has indicated its consent to, approval of or acquiescence in any such proceeding or appointment.

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

          “Designated Non-Cash Consideration” means the fair market value of non-cash consideration
received by Company or a Subsidiary in connection with a Disposition pursuant to Section 6.5(k)
that is designated as Designated Non-Cash Consideration pursuant to a certificate of a Responsible
Officer, setting forth the basis of such valuation (which amount will be reduced by the fair market
value of the portion of the non-cash consideration converted to cash within 180 days following the
consummation of the applicable Disposition).

          “Designated Subsidiary Borrower” means any Qualified Subsidiary as to which an Election to
Participate shall have been delivered to Administrative Agent in accordance with Section 2.25;
provided that the status of any of the foregoing as a Designated Subsidiary Borrower shall
terminate if and when an Election to Terminate is delivered to Administrative Agent in accordance
with Section 2.25.

          “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition
(including any sale and leaseback transaction and any sale of Equity Interests) of any property by
any Person, including any sale, assignment, transfer or other disposal, with or without recourse,
of any notes or accounts receivable or any rights and claims associated therewith; provided
that “Disposition” and “Dispose” shall not be deemed to include any issuance by Holdings of any of
its Equity Interests to another Person.

          “Disqualified Equity Interests” means any Equity Interest which, by its terms (or by the terms
of any security or other Equity Interests into which it is convertible or for which it is
exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily
redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund
obligation or otherwise (except as a result of a change of control or asset sale so long as any
rights of the holders thereof upon the occurrence of a change of control or asset sale event shall
be subject to the prior repayment in full of the Loans and all other Obligations that are accrued
and payable and the termination of the Commitments), (b) is redeemable at the option of the holder
thereof (other than solely for Qualified Equity Interests), in whole or in part, (c) provides for
the scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable
for Indebtedness or any other Equity Interests that would constitute Disqualified

16

 

Equity Interests, in each case, prior to the date that is 180 days after the Tranche C-2 Term
Loan Maturity Date or, if later, the latest New Term Loan Maturity Date.

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

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

          “Education Laws” as defined in Section 5.8.

          “Education Management” means Education Management Corporation, a Pennsylvania corporation.

          “Effective Date” means February 13, 2007.

          “Effective Date Certificate” means an Effective Date Certificate substantially in the form of
Exhibit G-1.

          “Election to Participate” means an Election to Participate substantially in the form of
Exhibit M hereto.

          “Election to Terminate” means an Election to Terminate substantially in the form of Exhibit N
hereto.

          “Eligible Assignee” means (i) any Lender, any Affiliate of any Lender and any Related Fund
(any two or more Related Funds being treated as a single Eligible Assignee for all purposes
hereof), (ii) any commercial bank, insurance company, investment or mutual fund or other entity
that is an “accredited investor” (as defined in Regulation D under the Securities Act) and which
extends credit or buys loans, and (iii) solely for purposes of Company Loan Purchases, Company;
provided, that except as set forth in clause (iii) of this definition, no Affiliate of (x)
Holdings or (y) any Sponsor shall be an Eligible Assignee.

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

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

17

 

          “Environmental Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law.

          “Equity Contributions” means, collectively, (a) the contribution by the Equity Investors on or
prior to the Closing Date of an aggregate amount of cash of not less than 27.5% of the total
capitalization of Holdings and its Subsidiaries on a consolidated basis (excluding for the
avoidance of doubt any Letters of Credit issued on the Closing Date) to EM Acquisition Corporation,
Holdings or one or more direct or indirect holding company parents of Holdings, and (b) the further
contribution to Company of any portion of such cash contribution proceeds not directly received by
Company or used by Holdings to pay Transaction Expenses.

          “Equity Interests” means, with respect to any Person, all of the shares, interests, rights,
participations or other equivalents (however designated) of capital stock of (or other ownership or
profit interests or units in) such Person and all of the warrants, options or other rights for the
purchase, acquisition or exchange from such Person of any of the foregoing (including through
convertible securities).

          “Equity Investors” means the Sponsors and the Management Stockholders.

          “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 is under
common control with any Credit Party within the meaning of Section 414 of the Internal Revenue Code
or Section 4001 of ERISA.

          “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by
any Credit Party or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during
a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by any Credit Party or any ERISA Affiliate from a Multiemployer Plan
or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of
intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or
4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or
Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than for
PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Credit Party or any
ERISA Affiliate.

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

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

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

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          “Excluded Information” as defined in Section 10.6(i)(ii).

          “Excluded Subsidiary” means (a) any Subsidiary that directly owns or operates a school and as
such is restricted by applicable Law or applicable accreditation requirements or other Education
Laws from guaranteeing the Obligations, (b) any Domestic Subsidiary that is a Subsidiary of a
Foreign Subsidiary and (c) any inactive Subsidiary having less than $100,000 of assets.

          “Existing ARCA” has the meaning provided in the recitals to this Agreement.

          “Existing Indebtedness” means Indebtedness and other obligations outstanding under that
certain Second Amended and Restated Credit Agreement dated as of August 18, 2003 between Education
Management and the lenders and agents party thereto, as amended prior to the Closing Date.

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

          “Fair Share” as defined in Section 7.2.

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

          “First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is
subject, other than any Lien permitted pursuant to Section 6.1.

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

          “Fiscal Year” means the fiscal year of Holdings and its Subsidiaries ending on June 30 of each
calendar year, subject to Section 6.11.

          “Forecasts” as defined in Section 4.5(c).

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

          “Funded Debt” means all Indebtedness of Holdings and its Subsidiaries on a consolidated basis
for borrowed money that matures more than one year from the date of its creation or matures within
one year from such date that is renewable or extendable, at the option of such Person, to a date
more than one year from such date or arises under a revolving credit or

19

 

similar agreement that obligates the lender or lenders to extend credit during a period of
more than one year from such date, including Indebtedness in respect of the Loans.

          “Funding Default” as defined in Section 2.22.

          “Funding Guarantors” as defined in Section 7.2.

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

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

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

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

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

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

          “GSCP” as defined in the preamble hereto.

          “GSLP” means Goldman Sachs Lending Partners LLC.

          “Guarantee” means, as to any Person, without duplication, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other monetary obligation payable or performable by another Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of such
Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness or other monetary obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of such Indebtedness or
monetary other obligation of the payment or performance of such Indebtedness or other monetary
obligation, (iii) to maintain working capital, equity capital or any other financial statement
condition or liquidity or level of income or cash flow of the primary obligor so as to enable the
primary obligor to pay such Indebtedness or other monetary obligation, or (iv) entered into for the
purpose of assuring in any other manner the obligee in respect of such Indebtedness or other
monetary obligation of the payment or performance thereof or to protect such obligee against loss
in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any
Indebtedness or other monetary obligation of any other Person, whether or not such Indebtedness or
monetary other obligation is assumed by such Person (or any right, contingent or otherwise, of any
holder of such Indebtedness to obtain any such Lien); provided that the term “Guarantee”
shall not include endorsements for collection or deposit, in

20

 

either case in the ordinary course of business, or customary and reasonable indemnity
obligations in effect on the Closing Date or entered into in connection with any acquisition or
disposition of assets permitted under this Agreement (other than such obligations with respect to
Indebtedness). The amount of any Guarantee shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in respect of which such
Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof as determined by the guaranteeing Person in good faith. The term “Guarantee” as
a verb has a corresponding meaning.

          “Guaranteed Obligations” as defined in Section 7.1.

          “Guarantor Subsidiary” means each Guarantor other than Holdings.

          “Guarantors” means each of Holdings, Company (in the case of Obligations of the Designated
Subsidiary Borrowers) and each other Domestic Subsidiary of Holdings (other than Excluded
Subsidiaries and the relevant Designated Subsidiary Borrower in the case of its Obligations).

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

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or 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.

          “Hazardous Materials Activity” means any past, current, proposed or threatened activity, event
or occurrence involving any Hazardous Materials, including the use, manufacture, possession,
storage, holding, presence, existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement, removal, remediation,
disposal, disposition or handling of any Hazardous Materials, and any corrective action or response
action with respect to any of the foregoing.

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

          “Historical Financial Statements” means as of the Closing Date, (i) the audited financial
statements of Holdings and its Subsidiaries, for the immediately preceding three Fiscal Years,
consisting of a consolidated balance sheet and the related consolidated statements of income,
stockholders’ equity and cash flows for such Fiscal Years, and (ii) the unaudited financial
statements of Holdings and its Subsidiaries as at the most recently ended Fiscal Quarter,
consisting of a consolidated balance sheet and the related consolidated statements of income,
stockholders’ equity and cash flows for the three-, six- or nine-month period, as applicable,
ending on such date, and, in the case of clauses (i) and (ii), certified by the chief financial
officer or treasurer of Company that they fairly present, in all material respects, the

21

 

financial condition of Holdings and its Subsidiaries as at the dates indicated and the results
of their operations and their cash flows for the periods indicated, subject to changes resulting
from audit and normal year-end adjustments.

          “Holdings” as defined in the preamble hereto.

          “Holdings Restricted Payments Election” as defined in Section 6.6(c).

          “Included Domestic Subsidiary” means a Domestic Subsidiary that is not an Excluded Subsidiary.

          “Increased Amount Date” as defined in Section 2.24.

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

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

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

          (b) the maximum amount (after giving effect to any prior drawings or reductions which may have
been reimbursed) of all letters of credit (including standby and commercial), bankers’ acceptances,
bank guaranties, surety bonds, performance bonds and similar instruments issued or created by or
for the account of such Person;

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

          (d) all obligations of such Person to pay the deferred purchase price of property or services
(other than (i) trade accounts payable in the ordinary course of business and (ii) any earn-out
obligation until such obligation becomes a liability on the balance sheet of such Person in
accordance with GAAP);

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

          (f) all Attributable Indebtedness;

          (g) all obligations of such Person in respect of Disqualified Equity Interests; and

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

For all purposes hereof, the Indebtedness of any Person shall (A) include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited

22

 

liability company) in which such Person is a general partner or a joint venturer, except to the
extent such Person’s liability for such Indebtedness is otherwise limited and only to the extent
such Indebtedness would be included in the calculation of Consolidated Total Debt and (B) in the
case of Holdings and its Subsidiaries, exclude all Indebtedness of a Credit Party having a term not
exceeding 364 days (inclusive of any roll-over or extensions of terms) and made in the ordinary of
business consistent with past practice. The amount of any net obligation under any Swap Agreement
on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount
of Indebtedness of any Person for purposes of clause (e) shall be deemed to be equal to the lesser
of (i) the aggregate unpaid amount of such Indebtedness and (ii) the fair market value of the
property encumbered thereby as determined by such Person in good faith.

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

          “Indemnitee” as defined in Section 10.3.

          “IPO Net Cash Proceeds” means the Net Cash Proceeds of the initial public offering of the
common stock of Education Management consummated on October 7, 2009 which have been contributed to
Holdings or the Company.

          “Installment” as defined in Section 2.12.

          “Intercompany Note” means a global promissory note substantially in the form of Exhibit K
evidencing Indebtedness owed among the Credit Parties.

          “Interest Coverage Ratio” means, with respect to Holdings and its Subsidiaries on a
consolidated basis, as of the end of any fiscal quarter of Holdings for the Test Period ending on
such date, the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense.

23

 

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

          “Interest Period” means, in connection with a Eurodollar Rate Loan, an interest period of
one-, two-, three- or six-months (or nine- or twelve-months if available to all Lenders), as
selected by a Borrower in the applicable Funding Notice or Conversion/Continuation Notice, (i)
initially, commencing on the Credit Date or Conversion/Continuation Date thereof, as the case may
be; and (ii) thereafter, commencing on the day on which the immediately preceding Interest Period
expires; provided, (a) if an Interest Period would otherwise expire on a day that is not a
Business Day, such Interest Period shall expire on the next succeeding Business Day unless no
further Business Day occurs in such month, in which case such Interest Period shall expire on the
immediately preceding Business Day; (b) any Interest Period that begins on the last Business Day of
a calendar month (or on a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period) shall, subject to clauses (c) and (d), of this
definition, end on the last Business Day of a calendar month; (c) no Interest Period with respect
to any portion of any Class of Term Loans shall extend beyond such Class’s Term Loan Maturity Date;
and (d) no Interest Period with respect to any portion of any Class of Revolving Loans shall extend
beyond such Class’s Revolving Commitment Termination Date.

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

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

          “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the date hereof
and from time to time hereafter, and any successor statute.

          “Investment” means, as to any Person, any direct or indirect acquisition or investment by such
Person, whether by means of (a) the purchase or other acquisition of Equity Interests or debt or
other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of Indebtedness of, or purchase or other acquisition of any other debt or equity
participation or interest in, another Person, including any partnership or joint venture interest
in such other Person (excluding, in the case of Holdings and its Subsidiaries, loans, advances, or
Indebtedness having a term not exceeding 364 days (inclusive of any roll-over or extensions of
terms) and made to a Credit Party in the ordinary course of business consistent with past practice)
or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or
substantially all of the property and assets or business of another Person or assets constituting a
business unit, line of business or division of such Person. For purposes of covenant compliance,
the amount of any Investment shall be the amount actually

24

 

invested, without adjustment for subsequent increases or decreases in the value of such
Investment.

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

          “Issuing Bank” shall mean, as the context may require, any or each of (a) BNP as Issuing Bank
hereunder, together with its permitted successors and assigns in such capacity, with respect to
Letters of Credit issued by BNP, (b) Bank of America as Issuing Bank hereunder, together with its
permitted successors and assigns in such capacity, with respect to Letters of Credit issued by Bank
of America, (c) JPMorgan Chase as Issuing Bank hereunder, together with its permitted successors
and assigns in such capacity, with respect to Letters of Credit issued by JPMorgan Chase, (d) PNC
as Issuing Bank hereunder, together with its permitted successors and assigns in such capacity,
with respect to Letters of Credit issued by PNC and (e) any other financial institution that has or
may become an Issuing Bank pursuant to Section 2.4(h), with respect to Letters of Credit issued by
such financial institution and its successors and assigns in such capacity.

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

          “JPMorgan” means J.P. Morgan Securities Inc.

          “JPMorgan Chase” means JPMorgan Chase Bank, N.A.

          “Junior Financing” as defined in Section 6.12.

          “Junior Financing Documentation” means any documentation governing any Junior Financing.

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

          “Lender” means each financial institution with a Revolving Commitment or a Term Loan
Commitment on the Second ARCA Effective Date, and any other Person that becomes a party hereto
pursuant to an Assignment Agreement or a Joinder Agreement.

          “Lender Consent Letters” means the lender consent letters authorizing the amendment and
restatement of the Original Credit Agreement and, in the case of any Continuing Lender, the
conversion of all of the Original Term Loans held by such Lender to a Tranche C Term Loan.

          “Lender Counterparty” means each Lender or any Affiliate of a Lender counterparty to a Swap
Agreement (including any Person who is a Lender (and any Affiliate

25

 

thereof) as of the Closing Date but subsequently, whether before or after entering into a
Swap Agreement, ceases to be a Lender).

          “Letter of Credit” means any letter of credit issued hereunder. A Letter of Credit may be a
commercial letter of credit or a standby letter of credit.

          “Letter of Credit Sublimit” means the aggregate unused amount of the Revolving Commitments
then in effect.

          “Letter of Credit Usage” means, as at any date of determination, the sum of (i) the maximum
aggregate amount which is, or at any time thereafter may become, available for drawing under all
Letters of Credit then outstanding, and (ii) the aggregate amount of all drawings under Letters of
Credit honored by an Issuing Bank and not theretofore reimbursed by or on behalf of Borrowers.

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

          “Loan” means a Tranche C Term Loan, a Tranche C-2 Term Loan, a 2012 Revolving Loan, a 2015
Revolving Loan, a Swing Line Loan and a New Term Loan.

          “Management Stockholders” means the members of management of Company or its Subsidiaries who
are investors in Holdings or any direct or indirect parent thereof.

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

          “Material Adverse Effect” means (a) a material adverse effect on the business, operations,
assets, liabilities (actual or contingent) or financial condition of Holdings and its Subsidiaries,
taken as a whole, (b) a material adverse effect on the ability of any Borrower or the Credit
Parties (taken as a whole) to perform their respective payment obligations under any Credit
Document to which any Borrower or any of the Credit Parties is a party or (c) a material adverse
effect on the rights and remedies of the Lenders under any Credit Document.

          “Material Real Estate Asset’’ means any fee interest owned by any Credit Party in any real
property having a fair market value in excess of $2,500,000 as of the date of the acquisition
thereof.

          “Merger” means the merger of EM Corporation Acquisition with and into Education Management
pursuant to the Merger Agreement.

          “Merger Agreement” means the Agreement and Plan of Merger dated as of March 3, 2006 between
Education Management and EM Acquisition Corporation.

26

 

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

          “Mortgage” means, collectively, the deeds of trust, trust deeds, hypothecs and mortgages made
by the Credit Parties in favor or for the benefit of Administrative Agent on behalf of the Lenders
substantially in the form of Exhibit I (with such changes as may be customary to account for local
Law matters), and any other mortgages executed and delivered pursuant to Section 5.13.

          “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

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

          “Net Asset Sale Proceeds” means, with respect to any Asset Sale, an amount equal to: (a) cash
payments (including any cash received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) received by Holdings or any
of its Subsidiaries from such Asset Sale, minus (b) any bona fide direct costs incurred in
connection with such Asset Sale, including (i) income or gains taxes payable by the seller (or a
direct or indirect parent of such seller) as a result of any gain recognized in connection with
such Asset Sale, (ii) payment of the outstanding principal amount of, premium or penalty, if any,
and interest on any Indebtedness (other than the Loans) that is secured by a Lien on the stock or
assets in question and that is required to be repaid under the terms thereof as a result of such
Asset Sale and (iii) a reasonable reserve for any indemnification payments (fixed or contingent)
attributable to seller’s indemnities and representations and warranties to purchaser in respect of
such Asset Sale undertaken by Holdings or any of its Subsidiaries in connection with such Asset
Sale.

          “Net Cash Proceeds” means, (a) with respect to any Asset Sale, the Net Asset Sale Proceeds,
(b) with respect to any Casualty Event, the Net Insurance/Condemnation Proceeds, and (c) with
respect to any issuance of Equity Interests or any incurrence of Indebtedness, the cash proceeds
from such issuance or incurrence, net of underwriting discounts and commissions and other
reasonable costs and expenses associated therewith, including reasonable legal fees and expenses.

          “Net Insurance/Condemnation Proceeds” means an amount equal to: (a) any cash payments or
proceeds received by Holdings or any of its Subsidiaries (i) under any casualty insurance policy in
respect of a covered loss thereunder or (ii) as a result of the taking of any assets of Holdings or
any of its Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or
otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of
such a taking, minus (b) (i) any actual and reasonable costs incurred by Holdings or any of
its Subsidiaries in connection with the adjustment or settlement of any claims of Holdings or such
Subsidiary in respect thereof, and (ii) any bona fide direct costs incurred in connection with any
sale of such assets as referred to in clause (a)(ii) of this

27

 

definition, including income taxes payable as a result of any gain recognized in connection
therewith.

          “New Notes” means the Senior Notes and Senior Subordinated Notes.

          “New Notes Documentation” means the New Notes, and all documents executed and delivered with
respect to the New Notes, including the Senior Notes Indenture and the Senior Subordinated Notes
Indenture.

          “New Revolving Loan Commitments” as defined in Section 2.24.

          “New Revolving Loan Lender” as defined in Section 2.24.

          “New Revolving Loans” as defined in Section 2.24.

          “New Term Loan Commitments” as defined in Section 2.24.

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

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

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

          “New Term Loans” as defined in Section 2.24.

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

          “Non-US Lender” as defined in Section 2.20(c).

          “Note” means a Tranche C Term Loan Note, a Tranche C-2 Term Loan Note, a 2012 Revolving Loan
Note, a 2015 Revolving Loan Note or a Swing Line Note.

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

          “Not Otherwise Applied” means, with reference to any amount of Net Cash Proceeds of any
transaction or event or of Consolidated Excess Cash Flow, that such amount (a) was not required to
be applied to prepay the Loans pursuant to Section 2.14, and (b) was not previously applied in
determining the permissibility of a transaction under the Credit Documents where such
permissibility was (or may have been) contingent on receipt of such amount or utilization of such
amount for a specified purpose (including without limitation, (i) Investments pursuant to Section
6.2, (ii) Restricted Payments to Holdings pursuant to Section 6.6 (or loans or advances to Holdings
in lieu thereof pursuant to Section 6.2(m)), (iii) prepayments, repurchases or redemptions of any
Junior Financing pursuant to Section 6.12) and (iv) Capital Expenditures

28

 

pursuant to Section 6.15). Company shall promptly notify Administrative Agent of any
application of such amount as contemplated by (b) above.

          “NPL” means the National Priorities List under CERCLA.

          “Obligations” means all (a) advances to, and debts, liabilities, obligations, covenants and
duties of, any Credit Party and its Subsidiaries arising under any Credit Document or otherwise
with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against any Credit Party or
Subsidiary of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding, (b)
obligations of any Credit Party and its Subsidiaries arising under any Swap Agreement with a Lender
Counterparty and (c) Cash Management Obligations. Without limiting the generality of the foregoing,
the Obligations of the Credit Parties under the Credit Documents (and of their Subsidiaries to the
extent they have obligations under the Credit Documents) include (i) the obligation (including
guarantee obligations) to pay principal, interest, Letter of Credit commissions, reimbursement
obligations, charges, expenses, fees, indemnities and other amounts payable by any Credit Party or
its Subsidiaries under any Credit Document and (ii) the obligation of any Credit Party or any of
its Subsidiaries to reimburse any amount in respect of any of the foregoing that any Lender, in its
sole discretion, may elect to pay or advance on behalf of such Credit Party or such Subsidiary.

          “Obligee Guarantor” as defined in Section 7.7.

          “Original Credit Agreement” has the meaning provided in the recitals to this Agreement.

          “Original Lenders” has the meaning provided in the recitals to this Agreement.

          “Original Sections 3.1(g) and 3.1(h)” mean Sections 3.1(g) and 3.1(h) of the Original Credit
Agreement, which Sections are set forth in Annex C hereto.

          “Original Term Loans” has the meaning provided in the Existing ARCA.

          “Organization Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

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

29

 

          “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by any Credit Party or any ERISA Affiliate or to which any Credit Party or
any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five (5) plan years.

          “Perfection Certificate” means a certificate in form satisfactory to Collateral Agent that
provides information relating to UCC filings of each Credit Party.

          “Permitted Acquisition” means any acquisition by Company or any of its wholly owned
Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets
of, 90% or more of the Equity Interests in or a business line or unit or a division of, any Person;
provided,

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

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

          (iii) in the case of the acquisition of Equity Interests, 90% or more of the Equity Interests
(except for any such Securities in the nature of directors’ qualifying shares required pursuant to
applicable law not to exceed 5% of the outstanding Equity Interests) acquired or otherwise issued
by such Person or any newly formed Subsidiary of Company in connection with such acquisition shall
be owned by Company or a Guarantor Subsidiary thereof (any such Person or newly formed Subsidiary
that is not Wholly Owned by Company after such acquisition is referred to as an “Acquired
Non-Wholly-Owned Subsidiary”), and Company shall have taken, or caused to be taken, as of the date
such Person becomes a Subsidiary of Company, each of the actions set forth in Sections 5.12 and/or
5.13, as applicable;

          (iv) Holdings and its Subsidiaries shall be in compliance with the financial covenants set
forth in Section 6.10 on a pro forma basis after giving effect to such acquisition as of the last
day of the Fiscal Quarter most recently ended, (as determined in accordance with Section 6.10(c));

          (v) Company shall have delivered to Administrative Agent (A) on or prior to the date such
proposed acquisition is consummated, (1) a Compliance Certificate evidencing compliance with
Section 6.10 as required under clause (iv) above and (2) with respect to any acquisition with
consideration exceeding $15,000,000, all other relevant financial information with respect to such
acquired assets to the extent available to the Credit Parties, including, without limitation, the
aggregate consideration for such acquisition and any other information required to demonstrate
compliance with Section 6.10 and (B) promptly upon request by Administrative Agent, a copy of the
purchase agreement related to the proposed Permitted Acquisition (and any related documents
reasonably requested by Administrative Agent); and

30

 

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

          “Permitted Equity Issuance” means any sale or issuance of any Qualified Equity Interests of
Holdings to the extent permitted hereunder.

          “Permitted Holdings Debt” as defined in Section 6.3(p).

          “Permitted Refinancing” means, with respect to any Person, any modification, refinancing,
refunding, renewal or extension of any Indebtedness of such Person; provided that (a) the
principal amount (or accreted value, if applicable) thereof does not exceed the principal amount
(or accreted value, if applicable) of the Indebtedness so modified, refinanced, refunded, renewed
or extended except by an amount equal to unpaid accrued interest and premium thereon plus other
reasonable amount paid, and fees and expenses reasonably incurred, in connection with such
modification, refinancing, refunding, renewal or extension and by an amount equal to any existing
commitments unutilized thereunder, (b) other than with respect to a Permitted Refinancing in
respect of Indebtedness permitted pursuant to Section 6.3(e), such modification, refinancing,
refunding, renewal or extension has a final maturity date equal to or later than the final maturity
date of, and has a Weighted Average Life to Maturity equal to or greater than the Weighted Average
Life to Maturity of, the Indebtedness being modified, refinanced, refunded, renewed or extended,
(c) other than with respect to a Permitted Refinancing in respect of Indebtedness permitted
pursuant to Section 6.3(e), at the time thereof, no Event of Default shall have occurred and be
continuing, and (d) if such Indebtedness being modified, refinanced, refunded, renewed or extended
is Indebtedness permitted pursuant to Section 6.3(b), 6.3(r) or 6.12(a), (i) to the extent such
Indebtedness being modified, refinanced, refunded, renewed or extended is subordinated in right of
payment to the Obligations, such modification, refinancing, refunding, renewal or extension is
subordinated in right of payment to the Obligations on terms at least as favorable to the Lenders
as those contained in the documentation governing the Indebtedness being modified, refinanced,
refunded, renewed or extended, (ii) the terms and conditions (including, if applicable, as to
collateral but excluding as to subordination, interest rate and redemption premium) of any such
modified, refinanced, refunded, renewed or extended Indebtedness, taken as a whole, are not
materially less favorable to the Credit Parties or the Lenders than the terms and conditions of the
Indebtedness being modified, refinanced, refunded, renewed or extended; provided that a
certificate of a Responsible Officer delivered to Administrative Agent at least five Business Days
prior to the incurrence of such Indebtedness, together with a reasonably detailed description of
the material terms and conditions of such Indebtedness or drafts of the documentation relating
thereto, stating that Company has determined in good faith that such terms and conditions satisfy
the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the
foregoing requirement unless Administrative Agent notifies Company within such five Business Day
period that it disagrees with such determination (including a reasonable description of the basis
upon which it disagrees) and (iii) such modification, refinancing, refunding, renewal or extension
is incurred by the Person who is the obligor of the Indebtedness being modified, refinanced,
refunded, renewed or extended.

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

          “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by any Credit Party or, with respect to any such plan that is subject to Section 412 of
the Code or Title IV of ERISA, any ERISA Affiliate.

          “Pledge and Security Agreement” means the Pledge and Security Agreement dated as of June 1,
2006 among the Grantors party thereto and the Collateral Agent, as it may be amended, supplemented
or otherwise modified from time to time.

          “PNC” means PNC Bank National Association.

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

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

          “Pro Forma Balance Sheet” as defined in Section 4.5(a)(ii).

          “Pro Forma Financial Statements” as defined in Section 4.5(a)(ii).

          “Projections” as defined in Section 5.1(c).

          “Pro Rata Share” means (a) with respect to all payments, computations and other matters
relating to the Tranche C Term Loan of any Lender, the percentage obtained by dividing (i) the
Tranche C Term Loan Exposure of that Lender by (ii) the aggregate Tranche C Term Loan Exposure of
all Lenders; (b) with respect to all payments, computations and other matters relating to the
Tranche C-2 Term Loan of any Lender, the percentage obtained by dividing (i) the Tranche C-2 Term
Loan Exposure of that Lender by (ii) the aggregate Tranche C-2 Term Loan Exposure of all Lenders;
(c) with respect to all payments, computations and other matters relating to the Revolving
Commitment or Revolving Loans of any Lender or any Letters of Credit issued or participations
purchased therein by any Lender or any participations in any Swing Line Loans purchased by any
Lender, the percentage obtained by dividing (i) the Revolving Exposure of that Lender by (ii) the
aggregate Revolving Exposure of all Lenders; and (d) with respect to all payments, computations,
and other matters relating to New Term Loan Commitments or New Term Loans of a particular Series,
the percentage obtained by dividing (i) the New Term Loan Exposure of that Lender with respect to
that Series by (ii) the aggregate New Term Loan Exposure of all Lenders with respect to that
Series. For all

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other purposes with respect to each Lender, “Pro Rata Share” means the percentage obtained by dividing (A) an
amount equal to the sum of the Tranche C Term Loan Exposure, the Tranche C-2 Term Loan Exposure,
the Revolving Exposure and the New Term Loan Exposure of that Lender, by (B) an amount equal to the
sum of the aggregate Tranche C Term Loan Exposure, the aggregate Tranche C-2 Term Loan Exposure,
the aggregate Revolving Exposure and the aggregate New Term Loan Exposure of all Lenders.

          “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity
Interests.

          “Qualified Non-Wholly-Owned Subsidiary” means (a) any Acquired Non-Wholly-Owned Subsidiary (as
defined in clause (iii) of the definition of “Permitted Acquisitions”), provided that (i)
such Subsidiary is acquired after the Closing Date in accordance with Section 6.2(i) and (ii)
Company and its Wholly Owned Subsidiaries own no less than the percentage of the outstanding Equity
Interests of such Subsidiary owned by them on the date such Subsidiary is acquired pursuant to
Section 6.2(i) and (b) any Subsidiary that is formed by Company or any of its Subsidiaries after
the Closing Date, provided that (i) Company and its Wholly Owned Subsidiaries own at least
90% of the outstanding Equity Interests of such Subsidiary (except for any such Securities in the
nature of directors’ qualifying shares required pursuant to applicable law not to exceed 5% of the
outstanding Equity Interests of such Subsidiary) and (ii) such Subsidiary is not formed in
connection with, or used in, the acquisition (whether by purchase, merger or otherwise) of all or
substantially all of the assets of, 90% or more of the Equity Interests in or a business line or
unit or a division of, any Person.

          “Qualified Subsidiary” means any Subsidiary of Company (other than any Excluded Subsidiary)
that satisfies the following criteria: (a) the jurisdiction of organization or incorporation of
such Subsidiary is the United States of America (or any State thereof or the District of Columbia)
and (b) such Subsidiary is a wholly owned Subsidiary of Company.

          “Qualifying IPO” means the issuance by Holdings or any direct or indirect parent of Holdings
of its common Equity Interests in an underwritten primary public offering (other than a public
offering pursuant to a registration statement on Form S-8) pursuant to an effective registration
statement filed with the SEC in accordance with the Securities Act (whether alone or in connection
with a secondary public offering).

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

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

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

          “Regulation FD” means Regulation FD as promulgated by the US Securities and Exchange
Commission under the Securities Act and Exchange Act as in effect from time to time.

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

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

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

          “Replacement Lender” as defined in Section 2.23.

          “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA or the
regulations issued thereunder, other than events for which the thirty (30) day notice period has
been waived.

          “Required Prepayment Date” as defined in Section 2.15(c).

          “Requisite Lenders” means one or more Lenders having or holding Tranche C Term Loan Exposure,
Tranche C-2 Term Loan Exposure, New Term Loan Exposure and/or Revolving Exposure and representing
more than 50% of the sum of (i) the aggregate Tranche C Term Loan Exposure of all Lenders, (ii) the
aggregate Tranche C-2 Term Loan Exposure of all Lenders, (iii) the aggregate Revolving Exposure of
all Lenders and (iv) the aggregate New Term Loan Exposure of all Lenders; provided that the
Tranche C Term Loan Exposure, Tranche C-2 Term Loan Exposure, New Term Loan Exposure and Revolving
Exposure of, and the portion of the aggregate Tranche C Term Loan Exposure, aggregate Tranche C-2
Term Loan Exposure, aggregate New Term Loan Exposure and aggregate Revolving Exposure held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of
Requisite Lenders.

          “Responsible Officer” means the chief executive officer, president, vice president, chief
financial officer, treasurer or assistant treasurer or other similar officer of a Credit Party.
Any document delivered hereunder that is signed by a Responsible Officer of a Credit Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Credit Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Credit Party.

          “Restricted Payment” means any dividend or other distribution (whether in cash, securities or
other property) with respect to any Equity Interest in Holdings, 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, defeasance, acquisition, cancellation
or termination of any such Equity Interest, or on account of any return of capital to Holdings or
Company’s stockholders, partners or members (or the equivalent Persons thereof).

          “Revolving Commitment” means the commitment of a Lender to make or otherwise fund any 2012
Revolving Loan or 2015 Revolving Loan and to acquire participations

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in Letters of Credit and Swing Line Loans hereunder and “Revolving Commitments” means such
commitments of all Lenders in the aggregate. The aggregate amount of the Revolving Commitments as
of the Second ARCA Effective Date is $442,500,000.

          “Revolving Commitment Period” means the 2012 Revolving Commitment Period or the 2015 Revolving
Commitment Period.

          “Revolving Commitment Termination Date” means the 2012 Revolving Commitment Termination Date
and the 2015 Revolving Commitment Termination Date.

          “Revolving Exposure” means, with respect to any 2012 Revolving Lender, the 2012 Revolving
Exposure, and with respect to any 2015 Revolving Lender, the 2015 Revolving Exposure.

          “Revolving Lender” means any 2012 Revolving Lender or 2015 Revolving Lender.

          “Revolving Loan” means a 2012 Revolving Loan and a 2015 Revolving Loan.

          “Revolving Percentage” means, with respect to any Lender, the percentage of the total
Revolving Commitments represented by such Lender’s Revolving Commitment.

          “Rollover Amount” as defined in Section 6.15(b).

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

          “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding
to any of its principal functions.

          “Second ARCA Effective Date” has the meaning assigned to that term in the Amendment and
Restatement Agreement.

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

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

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

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          “Senior Notes” means $375,000,000 in aggregate principal amount of Company’s 8.75% senior
unsecured notes due 2014.

          “Senior Notes Indenture” means the Indenture for the Senior Notes, dated as of June 1, 2006.

          “Senior Subordinated Notes” means $385,000,000 in aggregate principal amount of Company’s
10.25% senior subordinated notes due 2016.

          “Senior Subordinated Notes Indenture” means the Indenture for the Senior Subordinated Notes,
dated as of June 1, 2006.

          “Series” as defined in Section 2.24.

          “Settlement Service” as defined in Section 10.6(d).

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

          “Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that
on such date (a) the fair value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person, (b) the present fair salable value
of the assets of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured, (c) such Person does not
intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in
business or a transaction, and is not about to engage in business or a transaction, for which such
Person’s property would constitute an unreasonably small capital. The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.

          “Sponsors” means Goldman Sachs Capital Partners, Providence Equity Partners Inc., Leeds Equity
Partners, and their respective Affiliates, but not including, however, any portfolio companies of
any of the foregoing or any Affiliates that are not managed by the Merchant Banking Division of
Goldman, Sachs & Co.

          “Sponsor Management Agreement” means the Management Agreement between certain of the
management companies associated with the Sponsors and Company.

          “Sponsor Termination Fees” means the one-time payment under the Sponsor Management Agreement
of a termination fee to one or more of the Sponsors and their Affiliates in the event of either a
Change of Control or the completion of a Qualifying IPO.

          “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which more than 50% of
the total voting power of shares of stock or other ownership interests entitled (without regard to
the occurrence of any contingency) to vote in the election of the Person or Persons

36

 

(whether directors, managers, trustees or other Persons performing similar functions) having
the power to direct or cause the direction of the management and policies thereof is at the time
owned or controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof; provided, in determining the
percentage of ownership interests of any Person controlled by another Person, no ownership interest
in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.
Unless otherwise expressly provided, all references herein to a “Subsidiary” shall mean a
Subsidiary of Holdings.

          “Successor Company” as defined in Section 6.4(d).

          “Swap Agreement” means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

          “Swap Termination Value” means, in respect of any one or more Swap Agreements, after taking
into account the effect of any legally enforceable netting agreement relating to such Swap
Agreements, (a) for any date on or after the date such Swap Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Agreements, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Agreements (which may include a
Lender or any Affiliate of a Lender).

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

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

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

          “Swing Line Sublimit” means the lesser of (i) $20,000,000, and (ii) the aggregate unused
amount of Revolving Commitments then in effect.

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          “Syndication Agent” as defined in the preamble hereto.

          “Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding imposed by any Governmental Authority; provided, “Tax on the overall net
income” of a Person shall mean a tax imposed by the jurisdiction in which that Person is organized
or in which that Person’s applicable principal office (and/or, in the case of a Lender, its lending
office) is located or in which that Person (and/or, in the case of a Lender, its lending office) is
deemed to be doing business on all or part of the net income, profits or gains (whether worldwide,
or only insofar as such income, profits or gains are considered to arise in or to relate to a
particular jurisdiction, or otherwise) of that Person (and/or, in the case of a Lender, its
applicable lending office).

          “Term Loan” means a Tranche C Term Loan, a Tranche C-2 Term Loan and a New Term Loan.

          “Term Loan Commitment” means the Tranche C Term Loan Commitment, the Tranche C-2 Term Loan
Commitment or the New Term Loan Commitment of a Lender, and “Term Loan Commitments” means such
commitments of all Lenders.

          “Term Loan Maturity Date” means the Tranche C Term Loan Maturity Date, the Tranche C-2 Term
Loan Maturity Date and the New Term Loan Maturity Date of any Series of New Term Loans.

          “Terminated Lender” as defined in Section 2.23.

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

          “Threshold Amount” means $50,000,000.

          “Title Company” as defined in Original Section 3.1(g).

          “Title Policy” as defined in Original Section 3.1(g).

          “Total Assets” means the total assets of Company and its Subsidiaries on a consolidated basis,
as shown on the most recent balance sheet of Company or such other Person as may be expressly
stated.

          “Total Leverage Ratio” means, with respect to any Test Period, the ratio of (a) Consolidated
Total Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period.

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

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          “Tranche C Term Loan” means a Tranche C Term Loan made by a Lender to Borrower pursuant to
Section 2.1(a).

          “Tranche C Term Loan Commitment” and “Tranche C Term Loan Commitments” have the meanings set
forth in the Existing ARCA. Notwithstanding the foregoing, the amount of each Lender’s Tranche C
Term Loan Commitment, if any, is set forth on Appendix A-1 under the caption “Tranche C Term Loan
Commitment” or in the applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. The aggregate amount of the Tranche C Term Loan
Commitments as of the Second ARCA Effective Date is $348,953,050.51.

          “Tranche C Term Loan Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Tranche C Term Loans of such Lender.

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

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

          “Tranche C-2 Term Loan” means a Loan made pursuant to Section 2.1(b).

          “Tranche C-2 Term Loan Commitment” means, with respect to each Lender, the commitment, if any,
of such Lender to convert all or a portion of its existing Tranche C Term Loan into a Tranche C-2
Term Loan hereunder on the Second ARCA Effective Date pursuant to the Amendment and Restatement
Agreement. The amount of each Lender’s Tranche C-2 Term Loan Commitment, if any, is set forth on
Annex A-1 under the caption “Tranche C-2 Term Loan Commitment” or in the applicable Assignment
Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The
aggregate amount of the Tranche C-2 Term Loan Commitments as of the Second ARCA Effective Date is
$763,061,849.49.

          “Tranche C-2 Term Loan Exposure” means, with respect to any Lender, as of any date of
determination, the outstanding principal amount of the Tranche C-2 Term Loans of such Lender.

          “Tranche C-2 Term Loan Maturity Date” means the earlier of (i) the tenth anniversary of the
Closing Date, and (ii) the date that all Tranche C-2 Term Loans shall become due and payable in
full hereunder, whether by acceleration or otherwise; provided, however, that such date shall
become March 1, 2014 if all the Senior Notes are not repaid in full or extended, renewed or
refinanced with a Permitted Refinancing pursuant to Section 6.3(r) on or prior to March 1, 2014,
which Permitted Refinancing will not mature or require any scheduled amortization or payments of
principal prior to the date that is ninety-one (91) days after the tenth anniversary of the Closing
Date.

          “Tranche C-2 Term Loan Note” means a promissory note in the form of Exhibit B-4, as it may be
amended, supplemented or otherwise modified from time to time.

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          “Transaction” means, collectively, (a) the Equity Contributions, (b) the Merger, (c) the
issuance of the New Notes, (d) the funding of the Original Term Loans on the Closing Date, (e) the
consummation of any other transactions in connection with the foregoing, and (f) the payment of the
fees and expenses incurred in connection with any of the foregoing.

          “Transaction Documents” means the Merger Agreement and all other material documents,
instruments and certificates contemplated by the Merger Agreement.

          “Transaction Expenses” means any fees or expenses incurred or paid by Holdings, Company or any
of its Subsidiaries in connection with the Transaction, this Agreement and the other Credit
Documents and the transactions contemplated hereby and thereby.

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

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

          “Unrestricted Cash and Cash Equivalents” means the aggregate amount of cash and Cash
Equivalents held in accounts on the consolidated balance sheet of a Person to the extent that the
use of such cash or Cash Equivalents for application to payment of the Obligations or other
Indebtedness is not prohibited by law or any contract to which such Person is a party and such cash
and Cash Equivalents is free and clear of all Liens (other than Liens in favor of the Collateral
Agent, nonconsensual Liens permitted by Section 6.1 and Liens permitted by Section 6.1(s) and
clauses (i) and (ii) of Section 6.1(t)).

          “Waivable Mandatory Prepayment” as defined in Section 2.15(c).

          “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing: (i) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such date and the making of such
payment; by (ii) the then outstanding principal amount of such Indebtedness.

          “Wholly Owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person
all of the outstanding Equity Interests of which (other than (x) director’s qualifying shares and
(y) shares issued to foreign nationals to the extent required by applicable Law) are owned by such
Person and/or by one or more wholly owned Subsidiaries of such Person.

     1.2. Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not otherwise defined
herein shall have the meanings assigned to them in conformity with GAAP. Financial
statements and other information required to be delivered by Holdings to Lenders pursuant to
Section 5.1(a) and 5.1(b) shall be prepared in accordance with GAAP as in

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effect at the time of
such preparation, except as otherwise specifically prescribed herein. If at any time any change in
GAAP would affect the computation of any financial ratio or requirement set forth in any Credit
Document, and either Company or the Requisite Lenders shall so request, the Lenders, Administrative
Agent and Company shall negotiate in good faith to amend such ratio or requirement to preserve the
original intent thereof in light of such change in GAAP (subject to the approval of the Requisite
Lenders); provided that, until so amended, such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein. Subject to the foregoing,
calculations in connection with the definitions, covenants and other provisions hereof shall
utilize accounting principles and policies in conformity with those used to prepare the Historical
Financial Statements.

     1.3. Interpretation, etc. Any of the terms defined herein may, unless the context otherwise requires, be used in the
singular or the plural, depending on the reference. References herein to any Section, Appendix,
Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may
be, hereof unless otherwise specifically provided. The use herein of the word “include” or
“including”, when following any general statement, term or matter, shall not be construed to limit
such statement, term or matter to the specific items or matters set forth immediately following
such word or to similar items or matters, whether or not non-limiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter.

SECTION 2. LOANS AND LETTERS OF CREDIT

     2.1.
Term Loans. (a) Tranche C Term Loans. Subject to the terms and conditions set forth herein and
in the Amendment and Restatement Agreement, each Tranche C Term Loan outstanding on the Second ARCA
Effective Date that is not converted into a Tranche C-2 Term Loan will remain outstanding as a
Tranche C Term Loan.

          (b) Tranche C-2 Term Loans. Subject to the terms and conditions set forth herein
and in the Amendment and Restatement Agreement, each Lender holding a Tranche C-2 Term Loan
Commitment has severally agreed to convert all or a portion of its existing Tranche C Term Loans
into, and the Indebtedness converted by such converted Tranche C Term Loan will remain outstanding
as, a Tranche C-2 Loan on the Second ARCA Effective Date in a principal amount equal to such
Lender’s Tranche C-2 Term Loan Commitment.

     Any Term Loans prepaid may not be reborrowed. Subject to Sections 2.13(a) and 2.14, all
amounts owed hereunder with respect to the (x) Tranche C Term Loans shall be paid in full no later
than the Tranche C Term Loan Maturity Date and (y) the Tranche C-2 Term Loans shall be paid in full
no later than the Tranche C-2 Term Loan Maturity Date. Each Lender’s Tranche C Term Loan
Commitment terminated on the Effective Date. The Tranche C-2 Term Loan
Commitment shall terminate immediately after the conversion of Tranche C Term Loans into Tranche
C-2 Term Loans on the Second ARCA Effective Date.

     2.2.
Revolving Loans. (a) Revolving Commitments. During the Revolving Commitment Period applicable to any
Lender’s Revolving Commitment, subject to the terms and conditions

41

 

hereof, such Lender severally
agrees to make Revolving Loans to Borrowers in an aggregate amount up to but not exceeding such
Lender’s Revolving Commitment; provided, that after giving effect to the making of any
Revolving Loans in no event shall the Total Utilization of Revolving Commitments exceed the
Revolving Commitments then in effect. Amounts borrowed pursuant to this Section 2.2(a) may be
repaid and reborrowed during the Revolving Commitment Period. All Revolving Loans will be made by
all Revolving Lenders (including both 2012 Revolving Lenders and 2015 Revolving Lenders) in
accordance with their Revolving Percentages until the 2012 Revolving Commitment Termination Date;
thereafter, all Revolving Loans will be made by the 2015 Revolving Lenders in accordance with their
Revolving Percentages until the 2015 Revolving Commitment Termination Date. Each Lender’s 2012
Revolving Commitment shall expire on the 2012 Revolving Commitment Termination Date and all 2012
Revolving Loans and all other amounts owed hereunder with respect to the 2012 Revolving Loans and
the Revolving Commitments shall be paid in full no later than such date. Each Lender’s 2015
Revolving Commitment shall expire on the 2015 Revolving Commitment Termination Date and all 2015
Revolving Loans and all other amounts owed hereunder with respect to the 2015 Revolving Loans and
the 2015 Revolving Commitments shall be paid in full no later than such date.

          (b) Borrowing Mechanics for Revolving Loans.

          (i) Except pursuant to Section 2.4(d), Revolving Loans that are Base Rate Loans shall
be made in an aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in
excess of that amount, and Revolving Loans that are Eurodollar Rate Loans shall be in an
aggregate minimum amount of $1,000,000 and integral multiples of $500,000 in excess of that
amount.

          (ii) Whenever a Borrower desires that Lenders make Revolving Loans, such Borrower
shall give notice to Administrative Agent, which may be given by telephone, no later than
12:00 p.m. (New York City time) at least three Business Days in advance of the proposed
Credit Date in the case of a Eurodollar Rate Loan, and at least one Business Day in advance
of the proposed Credit Date in the case of a Revolving Loan that is a Base Rate Loan.
Except as otherwise provided herein, a notice for a Revolving Loan that is a Eurodollar Rate
Loan shall be irrevocable on and after the related Interest Rate Determination Date, and the
relevant Borrower shall be bound to make a borrowing in accordance therewith. Each
telephonic notice by a Borrower pursuant to this Section 2.2(b) must be confirmed promptly
by delivery to Administrative Agent of a fully executed Funding Notice. Neither
Administrative Agent nor any Lender shall incur any liability to any Borrower in acting upon
any telephonic notice referred to above that Administrative Agent believes in good faith to
have been given by a Responsible Officer or other person authorized to borrow on behalf of
such Borrower or for otherwise acting in good faith under this Section 2.2(b), and upon
funding of Loans
by Lenders in accordance with this Agreement pursuant to any such telephonic notice a
Borrower shall have effected Loans hereunder.

          (iii) Notice of receipt of each Funding Notice in respect of Revolving Loans,
together with the amount of each Lender’s Revolving Percentage thereof, if any,

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together
with the applicable interest rate, shall be provided by Administrative Agent to each
applicable Lender by telefacsimile with reasonable promptness.

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

          (c) Outstanding Revolving Loans and Letters of Credit. All Revolving Loans and
Letters of Credit outstanding under the Existing ARCA on the Second ARCA Effective Date shall
remain outstanding hereunder on the terms set forth herein.

     2.3.
Swing Line Loans. (a) Swing Line Loans Commitments. During the 2015 Revolving Commitment Period,
subject to the terms and conditions hereof, Swing Line Lender hereby agrees to make Swing Line
Loans to Borrowers in the aggregate amount up to but not exceeding the Swing Line Sublimit;
provided, that after giving effect to the making of any Swing Line Loan, in no event shall
the Total Utilization of Revolving Commitments exceed the aggregate Revolving Commitments then in
effect. Amounts borrowed pursuant to this Section 2.3 may be repaid and reborrowed during the 2015
Revolving Commitment Period. Swing Line Lender’s Revolving Commitment shall expire on the 2015
Revolving Commitment Termination Date and all Swing Line Loans and all other amounts owed hereunder
with respect to the Swing Line Loans and the Revolving Commitments shall be paid in full no later
than such date.

          (b) Borrowing Mechanics for Swing Line Loans.

          (i) Swing Line Loans shall be made in an aggregate minimum amount of $100,000 and
integral multiples of $100,000 in excess of that amount.

          (ii) Whenever a Borrower desires that Swing Line Lender make a Swing Line Loan, such
Borrower shall give notice to Administrative Agent, which may be given by telephone, no
later than 1:00 p.m. (New York City time) on the proposed Credit Date. Each telephonic
notice by a Borrower pursuant to this Section 2.3(b) must be confirmed promptly by delivery
to Administrative Agent of a fully executed Funding Notice. Neither Administrative Agent
nor any Lender shall incur any liability to any Borrower in
acting upon any telephonic notice referred to above that Administrative Agent believes
in good faith to have been given by a Responsible Officer or other person authorized to
borrow on behalf of such Borrower or for otherwise acting in good faith under this Section
2.3(b), and upon funding of Loans by Lenders in accordance with this Agreement pursuant to
any such telephonic notice a Borrower shall have effected Loans hereunder.

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          (iii) Swing Line Lender shall make the amount of its Swing Line Loan available to
Administrative Agent not later than 2:00 p.m. (New York City time) on the applicable Credit
Date by wire transfer of same day funds in Dollars, at Administrative Agent’s Principal
Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent
specified herein, Administrative Agent shall make the proceeds of such Swing Line Loans
available to the relevant Borrower on the applicable Credit Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such Swing Line Loans received by
Administrative Agent from Swing Line Lender to be credited to the account of such Borrower
at Administrative Agent’s Principal Office, or to such other account as may be designated in
writing to Administrative Agent by such Borrower.

          (iv) With respect to any Swing Line Loans which have not been voluntarily prepaid by
the relevant Borrower pursuant to Section 2.13, Swing Line Lender may at any time in its
sole and absolute discretion, deliver to Administrative Agent (with a copy to Company), no
later than 11:00 a.m. (New York City time) at least one Business Day in advance of the
proposed Credit Date, a notice (which shall be deemed to be a Funding Notice given by the
relevant Borrower) requesting that each Lender holding a Revolving Commitment make Revolving
Loans that are Base Rate Loans to such Borrower on such Credit Date in an amount equal to
the amount of such Swing Line Loans (the “Refunded Swing Line Loans”) outstanding on the
date such notice is given which Swing Line Lender requests Lenders to prepay. Anything
contained in this Agreement to the contrary notwithstanding, (1) the proceeds of such
Revolving Loans made by the Lenders other than Swing Line Lender shall be immediately
delivered by Administrative Agent to Swing Line Lender (and not to Borrowers) and applied to
repay a corresponding portion of the Refunded Swing Line Loans and (2) on the day such
Revolving Loans are made, Swing Line Lender’s Revolving Percentage of the Refunded Swing
Line Loans shall be deemed to be paid with the proceeds of a Revolving Loan made by Swing
Line Lender to the relevant Borrower, and such portion of the Swing Line Loans deemed to be
so paid shall no longer be outstanding as Swing Line Loans and shall no longer be due under
the Swing Line Note of Swing Line Lender but shall instead constitute part of Swing Line
Lender’s outstanding Revolving Loans to such Borrower and shall be due under the 2015
Revolving Loan Note issued by such Borrower to Swing Line Lender. Each Borrower hereby
authorizes Administrative Agent and Swing Line Lender to charge such Borrower’s accounts
with Administrative Agent and Swing Line Lender (up to the amount available in each such
account) in order to immediately pay Swing Line Lender the amount of the Refunded Swing Line
Loans to the extent the proceeds of such Revolving Loans made by Lenders, including the
Revolving Loans deemed to be made by Swing Line Lender, are not sufficient to repay in full
the Refunded Swing Line Loans. If any portion of any such amount paid (or deemed to be
paid) to Swing Line Lender
should be recovered by or on behalf of Borrower from Swing Line Lender in bankruptcy,
by assignment for the benefit of creditors or otherwise, the loss of the amount so recovered
shall be ratably shared among all Lenders in the manner contemplated by Section 2.17.

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          (v) If for any reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in
an amount sufficient to repay any amounts owed to Swing Line Lender in respect of any
outstanding Swing Line Loans on or before the third Business Day after demand for payment
thereof by Swing Line Lender, each Revolving Lender shall be deemed to, and hereby agrees
to, have purchased a participation in such outstanding Swing Line Loans, and in an amount
equal to its Revolving Percentage of the applicable unpaid amount together with accrued
interest thereon. Upon one Business Day’s notice from Swing Line Lender, each Revolving
Lender shall deliver to Swing Line Lender an amount equal to its respective participation in
the applicable unpaid amount in same day funds at the Principal Office of Swing Line Lender.
In order to evidence such participation, each Revolving Lender agrees to enter into a
participation agreement at the request of Swing Line Lender in form and substance reasonably
satisfactory to Swing Line Lender. In the event any Revolving Lender fails to make
available to Swing Line Lender the amount of such Lender’s participation as provided in this
paragraph, Swing Line Lender shall be entitled to recover such amount on demand from such
Lender together with interest thereon for three Business Days at the rate customarily used
by Swing Line Lender for the correction of errors among banks and thereafter at the Base
Rate, as applicable.

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

     2.4.
Issuance of Letters of Credit and Purchase of Participations Therein. (a) Letters of Credit. During the 2015 Revolving Commitment Period, subject to the
terms and conditions hereof, Issuing Bank agrees to issue Letters of Credit for the account of a
Borrower and its Subsidiaries in the aggregate amount for all Borrowers and their Subsidiaries up
to but not exceeding the Letter of Credit Sublimit; provided that (A) BNP as Issuing Bank
(or its permitted successors and assigns in such capacity) shall only be required to issue Letters
of Credit for the

45

 

account of a Borrower and its Subsidiaries in an aggregate amount for all
Borrowers and their Subsidiaries up to but not exceeding $175,000,000, and the issuance by BNP as
Issuing Bank (or its permitted successors and assigns in such capacity) of any additional Letters
of Credit at any time when Letter of Credit Usage is equal to or greater than $175,000,000 shall be
at the sole discretion of BNP as Issuing Bank (or its permitted successors and assigns in such
capacity), (B) Bank of America as Issuing Bank (or its permitted successors and assigns in such
capacity) shall only be required to issue Letters of Credit for the account of a Borrower and its
Subsidiaries in an aggregate amount for all Borrowers and their Subsidiaries up to but not
exceeding $100,000,000 and only at a time when Letter of Credit Usage with respect to Letters of
Credit issued by BNP (or its permitted successors and assigns in such capacity) is equal to or
greater than $175,000,000, and the issuance by Bank of America as Issuing Bank (or its permitted
successors and assigns in such capacity) of any additional Letters of Credit at any time when
Letter of Credit Usage with respect to Letters of Credit issued by Bank of America as Issuing Bank
(or its permitted successors and assigns in such capacity) is equal to or greater than $100,000,000
or at any time when Letter of Credit Usage with respect to Letters of Credit issued by BNP as
Issuing Bank (or its permitted successors and assigns in such capacity) is less than $175,000,000
shall be at the sole discretion of Bank of America as Issuing Bank (or its permitted successors and
assigns in such capacity), (C) JPMorgan Chase as Issuing Bank (or its permitted successors and
assigns in such capacity) shall only be required to issue Letters of Credit for the account of a
Borrower and its Subsidiaries in an aggregate amount for all Borrowers and their Subsidiaries up to
but not exceeding $100,000,000 and only at a time when (1) Letter of Credit Usage with respect to
Letters of Credit issued by BNP as Issuing Bank (or its permitted successors and assigns in such
capacity) is equal to or greater than $175,000,000 and (2) Letter of Credit Usage with respect to
Letters of Credit Issued by Bank of America as Issuing Bank (or its permitted successors and
assigns in such capacity) is equal to or greater than $100,000,000, and the issuance by JPMorgan
Chase as Issuing Bank (or its permitted successors and assigns in such capacity) of any additional
Letters of Credit at any time when Letter of Credit Usage with respect to Letters of Credit issued
by JPMorgan Chase as Issuing Bank (or its permitted successors and assigns in such capacity) is
equal to or greater than $100,000,000 or at any time when Letter of Credit Usage with respect to
Letters of Credit issued by BNP as Issuing Bank (or its permitted successors and assigns in such
capacity) is less than $175,000,000 or at any time when Letter of Credit Usage with respect to
Letters of Credit issued by Bank of America as Issuing Bank (or its permitted successors and
assigns in such capacity) is less than $100,000,000 shall be at the sole discretion of JPMorgan
Chase as Issuing Bank (or its permitted successors and assigns in such capacity) and (D) PNC as
Issuing Bank (or its permitted successors and assigns in such capacity) shall only be required to
issue Letters of Credit for the account of a Borrower and its Subsidiaries in an aggregate amount
for all Borrowers and their Subsidiaries up to but not exceeding $50,000,000 and only at a time
when Letter of Credit Usage with respect to Letters of Credit issued by BNP as Issuing Bank (or its
permitted successors and assigns in such capacity) is equal to or greater than $175,000,000, and
the issuance by PNC as Issuing Bank (or
its permitted successors and assigns in such capacity) of any additional Letters of Credit at
any time when Letter of Credit Usage with respect to Letters of Credit issued by
PNC as Issuing
Bank (or its permitted successors and assigns in such capacity) is equal to or greater than
$50,000,000 or at any time when Letter of Credit Usage with respect to Letters of Credit issued by
BNP as Issuing Bank (or its permitted successors and assigns in such capacity) is less than
$175,000,000 shall be at the sole discretion of PNC as Issuing Bank (or its permitted successors

46

 

and assigns in such capacity); provided, further, (i) each Letter of Credit shall
be denominated in Dollars; (ii) the stated amount of each Letter of Credit shall not be less than
$25,000 or such lesser amount as is acceptable to Issuing Bank; (iii) after giving effect to such
issuance, in no event shall the Total Utilization of Revolving Commitments exceed the Revolving
Commitments then in effect; (iv) after giving effect to such issuance, in no event shall the Letter
of Credit Usage exceed the Letter of Credit Sublimit then in effect; and (v) in no event shall any
Letter of Credit have an expiration date later than the earlier of (1) the 2015 Revolving
Commitment Termination Date and (2) unless otherwise agreed by the Issuing Bank, the date which is
one year from the date of issuance of such Letter of Credit. Subject to the foregoing, Issuing
Bank may agree that a standby Letter of Credit will automatically be extended for one or more
successive periods not to exceed one year each, unless Issuing Bank elects not to extend for any
such additional period; provided, Issuing Bank shall not extend any such Letter of Credit
if it has received written notice that an Event of Default has occurred and is continuing at the
time Issuing Bank must elect to allow such extension.

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

          (c) Responsibility of Issuing Bank With Respect to Requests for Drawings and
Payments. In determining whether to honor any drawing under any Letter of Credit by the
beneficiary thereof, Issuing Bank shall be responsible only to examine the documents delivered
under such Letter of Credit with reasonable care so as to ascertain whether they appear on their
face to be in accordance with the terms and conditions of such Letter of Credit. As between
Borrowers and Issuing Bank, Borrowers assume all risks of the acts and omissions of, or misuse of
the Letters of Credit issued by Issuing Bank, by the respective beneficiaries of such Letters of
Credit. In furtherance and not in limitation of the foregoing, Issuing Bank shall not be
responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for and issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any such Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective
for any reason; (iii) failure of the beneficiary of any such Letter of Credit to comply fully
with any conditions required in order to draw upon such Letter of Credit; (iv) errors, omissions,
interruptions or delays in transmission or delivery of any messages, by mail, cable, telegraph,
telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical
terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to
make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the

47

 

misapplication
by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of
Credit; or (viii) any consequences arising from causes beyond the control of Issuing Bank,
including any Governmental Acts; none of the above shall affect or impair, or prevent the vesting
of, any of Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and in
furtherance thereof, any action taken or omitted by Issuing Bank under or in connection with the
Letters of Credit or any documents and certificates delivered thereunder, if taken or omitted in
good faith, shall not give rise to any liability on the part of Issuing Bank to Borrowers.
Notwithstanding anything to the contrary contained in this Section 2.4(c), Borrowers shall retain
any and all rights they may have against Issuing Bank for any liability arising solely out of the
gross negligence or willful misconduct of Issuing Bank.

          (d) Reimbursement by Borrowers of Amounts Drawn or Paid Under Letters of Credit. In
the event Issuing Bank has determined to honor a drawing under a Letter of Credit, it shall
immediately notify the relevant Borrower and Administrative Agent, and such Borrower shall
reimburse Issuing Bank on or before the Business Day immediately following the date on which such
drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal
to the amount of such honored drawing; provided, anything contained herein to the contrary
notwithstanding, (i) unless such Borrower shall have notified Administrative Agent and Issuing Bank
prior to 10:00 a.m. (New York City time) on the date such drawing is honored that such Borrower
intends to reimburse Issuing Bank for the amount of such honored drawing with funds other than the
proceeds of Revolving Loans, such Borrower shall be deemed to have given a timely Funding Notice to
Administrative Agent requesting Revolving Lenders to make Revolving Loans that are Base Rate Loans
on the Reimbursement Date in an amount in Dollars equal to the amount of such honored drawing, and
(ii) subject to satisfaction or waiver of the conditions specified in Section 3.2, Revolving
Lenders shall, on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the
amount of such honored drawing, the proceeds of which shall be applied directly by Administrative
Agent to reimburse Issuing Bank for the amount of such honored drawing; and provided
further, if for any reason proceeds of Revolving Loans are not received by Issuing Bank on
the Reimbursement Date in an amount equal to the amount of such honored drawing, such Borrower
shall reimburse Issuing Bank, on demand, in an amount in same day funds equal to the excess of the
amount of such honored drawing over the aggregate amount of such Revolving Loans, if any, which are
so received. Nothing in this Section 2.4(d) shall be deemed to relieve any Revolving Lenders from
its obligation to make Revolving Loans on the terms and conditions set forth herein, and Borrowers
shall retain any and all rights they may have against any such Revolving Lender resulting from the
failure of such Revolving Lender to make such Revolving Loans under this Section 2.4(d).

          (e) Lenders’ Purchase of Participations in Letters of Credit. Immediately upon the
issuance of each Letter of Credit, each Revolving Lender shall be deemed to have purchased, and
hereby agrees to irrevocably purchase, from Issuing Bank a participation in such Letter of
Credit and any drawings honored thereunder in an amount equal to such Lender’s Revolving
Percentage of the maximum amount which is or at any time may become available to be drawn
thereunder. In the event that Borrowers shall fail for any reason to reimburse Issuing Bank as
provided in Section 2.4(d), Issuing Bank shall promptly notify each Revolving Lender of the
unreimbursed amount of such honored drawing and of such Lender’s respective participation therein
based on such Lender’s Revolving Percentage. Each Revolving Lender shall make

48

 

available to Issuing
Bank an amount equal to its respective participation, in Dollars and in same day funds, at the
office of Issuing Bank specified in such notice, not later than 12:00 p.m. (New York City time) on
the first business day (under the laws of the jurisdiction in which such office of Issuing Bank is
located) after the date notified by Issuing Bank. In the event that any Revolving Lender fails to
make available to Issuing Bank on such business day the amount of such Lender’s participation in
such Letter of Credit as provided in this Section 2.4(e), Issuing Bank shall be entitled to recover
such amount on demand from such Lender together with interest thereon for three Business Days at
the rate customarily used by Issuing Bank for the correction of errors among banks and thereafter
at the Base Rate. Nothing in this Section 2.4(e) shall be deemed to prejudice the right of any
Revolving Lender to recover from Issuing Bank any amounts made available by such Lender to Issuing
Bank pursuant to this Section in the event that it is determined that the payment with respect to a
Letter of Credit in respect of which payment was made by such Lender constituted gross negligence
or willful misconduct on the part of Issuing Bank. In the event Issuing Bank shall have been
reimbursed by other Lenders pursuant to this Section 2.4(e) for all or any portion of any drawing
honored by Issuing Bank under a Letter of Credit, such Issuing Bank shall distribute to each Lender
which has paid all amounts payable by it under this Section 2.4(e) with respect to such honored
drawing such Lender’s Revolving Percentage of all payments subsequently received by Issuing Bank
from Borrowers in reimbursement of such honored drawing when such payments are received. Any such
distribution shall be made to a Lender at its primary address set forth below its name on Appendix
B or at such other address as such Lender may request.

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

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

          (h) Additional Issuing Banks. Company may, at any time and from time to time with
the consent of Administrative Agent (which consent shall not be unreasonably withheld or delayed)
and such financial institution, designate one or more additional financial institutions to act as
an issuing bank under the terms of this Agreement, subject to reporting requirements reasonably
satisfactory to the Administrative Agent with respect to issuances, amendments, extensions and
terminations of Letters of Credit by such additional issuing bank, and with such other procedures
and requirements with respect to the issuance of Letters of Credit that such additional issuing
bank may reasonably require with the consent of the Administrative Agent (which consent shall not
be unreasonably withheld or delayed). Any Lender designated as an issuing bank pursuant to this
paragraph (h) shall be deemed to be an “Issuing Bank” (in addition to being a Lender) in respect of
Letters of Credit issued or to be issued by such Lender, and, with respect to such Letters of
Credit, such term shall thereafter apply to such Lender.

          (i) Company agrees that, with respect to any Issuing Bank (other than BNP), neither Company
nor any of its Subsidiaries shall mitigate such Issuing Bank’s fronting risk with respect to any
other Lender (the “Mitigating Arrangements”), unless Company shall have offered to mitigate BNP’s
risk, as Issuing Bank, on terms that are no less favorable to BNP in respect of its fronting risk
than the Mitigating Arrangements are in respect of such Issuing Bank’s fronting risk.

          (j) Requirement to Fund Letters of Credit following 2012 Revolving Commitment
Termination Date. On and after the 2012 Revolving Commitment Termination Date, each 2015
Revolving Lender will be required, in accordance with such Lender’s Revolving Percentage, to
reimburse Issuing Bank for the unreimbursed amount of honored drawings pursuant to 2.4(e) in
respect of the unreimbursed amount of honored drawings arising on or after the 2012 Revolving
Commitment Termination Date and or fund participations in such unreimbursed amount of honored
drawings at the request of the Issuing Bank regardless of whether any Default or Event of Default
existed on the 2012 Revolving Commitment Termination Date; provided that the 2015 Revolving
Exposure of each such 2015 Revolving Lender shall not exceed such Lender’s 2015 Revolving
Commitment.

          (k) Replacement of Issuing Bank. Any Issuing Bank may be replaced at any time by
written agreement among 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 such Issuing Bank. At the time any such replacement shall become

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effective, Company shall pay
all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.11(b).
From and after the effective date of any such replacement, (i) the successor Issuing Bank shall
have all the rights and obligations of such Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank”
shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing
Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have
all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit issued by it prior to such replacement, but shall not be required to issue additional
Letters of Credit.

     2.5.
Pro Rata Shares; Availability of Funds. (a) Pro Rata Shares. All Loans shall be made, and all participations purchased, by
Lenders simultaneously and proportionately to their respective Pro Rata Shares, it being understood
that no Lender shall be responsible for any default by any other Lender in such other Lender’s
obligation to make a Loan requested hereunder or purchase a participation required hereby nor shall
any Term Loan Commitment or any Revolving Commitment of any Lender be increased or decreased as a
result of a default by any other Lender in such other Lender’s obligation to make a Loan requested
hereunder or purchase a participation required hereby.

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

     2.6. Use of Proceeds. The proceeds of the Revolving Loans, Swing Line Loans and Letters of Credit made after the
Closing Date shall be applied by Borrowers for working capital and other general corporate purposes
(including Permitted Acquisitions) of Holdings and its Subsidiaries. No portion of the proceeds of
any Credit Extension shall be used in any manner that causes or might cause such Credit Extension
or the application of such proceeds to violate

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Regulation T, Regulation U or Regulation X of the
Board of Governors or any other regulation thereof or to violate the Exchange Act.

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

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

          (b) Register. Administrative Agent (or its agent or sub-agent appointed by it) on
behalf of the Borrowers shall maintain at the Principal Office a register for the recordation of
the names and addresses of Lenders and the 2012 Revolving Commitments, 2015 Revolving Commitments
and Loans of each Lender from time to time (the “Register”). The Register shall be available for
inspection by any Borrower or any Lender (with respect to any entry relating to such Lender’s
Loans) at any reasonable time and from time to time upon reasonable prior notice. Administrative
Agent shall record, or shall cause to be recorded, in the Register the Revolving Commitments and
the Loans in accordance with the provisions of Section 10.6, and each repayment or prepayment in
respect of the principal amount of the Loans, and any such recordation shall be conclusive and
binding on each Borrower and each Lender, absent manifest error; provided, failure to make
any such recordation, or any error in such recordation, shall not affect any Lender’s Revolving
Commitments or any Borrower’s Obligations in respect of any Loan. Each Borrower hereby designates
BNP to serve as such Borrower’s agent solely for purposes of maintaining the Register as provided
in this Section 2.7, and each Borrower hereby agrees that, to the extent BNP serves in such
capacity, BNP and its officers, directors, employees, agents, sub-agents and affiliates shall
constitute “Indemnitees.”

          (c) Notes. If so requested by any Lender by written notice to Company (with a copy
to Administrative Agent) at least two Business Days prior to the Second ARCA Effective Date, or at
any time thereafter, each relevant Borrower shall execute and deliver to such Lender (and/or, if
applicable and if so specified in such notice, to any Person who is an assignee of such Lender
pursuant to Section 10.6) on the Second ARCA Effective Date (or, if such notice is delivered after
the Second ARCA Effective Date, promptly after Borrower’s receipt of such notice) a Note or Notes
to evidence such Lender’s Tranche C Term Loan, Tranche C-2 Term
Loan, New Term Loan, 2012 Revolving Loan, 2015 Revolving Loan or Swing Line Loan, as the case
may be.

     Any promissory note evidencing a Tranche C Term Loan prior to the Second ARCA Effective
Date may be exchanged, upon the request of the relevant Lender made through the Administrative Agent and
surrender of such promissory note to the relevant Borrower through the Administrative Agent, for
promissory notes evidencing the Tranche C-2 Term Loans into which such Lender’s Tranche C Term
Loans were converted on the Second ARCA Effective

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Date. Any promissory note evidencing a Revolving
Loan (as such term is defined in the Existing ARCA) prior to the Second ARCA Effective Date may be
exchanged, upon the request of the relevant Lender made through the Administrative Agent and
surrender of such promissory note to the relevant Borrower through the Administrative Agent, for
promissory notes evidencing the 2012 Revolving Loans and 2015 Revolving Loans into which such
Lender’s Revolving Loans were converted on the Second ARCA Effective Date.

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

          (i) in the case of Tranche C Term Loans, Tranche C-2 Term Loans and Revolving Loans:

          (A) if a Base Rate Loan, at the Base Rate plus the
Applicable Margin applicable to such Class of Loans; or

          (B) if a Eurodollar Rate Loan, at the Adjusted Eurodollar
Rate plus the Applicable Margin applicable to such Class
of Loan; and

          (ii) in the case of Swing Line Loans, at the Base Rate plus the Applicable
Margin applicable to Swing Line Loans.

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

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

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and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to each Borrower and each Lender.

          (d) Interest payable pursuant to Section 2.8(a) shall be computed (i) in the case of Base
Rate Loans on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of
Eurodollar Rate Loans, on the basis of a 360-day year, in each case for the actual number of days
elapsed in the period during which it accrues. In computing interest on any Loan, the date of the
making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect
to a Term Loan, the last Interest Payment Date with respect to such Term Loan or, with respect to a
Base Rate Loan being converted from a Eurodollar Rate Loan, the date of conversion of such
Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of
payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with
respect to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of
such Base Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded;
provided, if a Loan is repaid on the same day on which it is made, one day’s interest shall
be paid on that Loan.

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

          (f) Each Borrower agrees to pay to Issuing Bank, with respect to drawings honored under any
Letter of Credit, interest on the amount paid by Issuing Bank in respect of each such honored
drawing from the date such drawing is honored to but excluding the date such amount is reimbursed
by or on behalf of such Borrower at a rate equal to (i) for the period from the date such drawing
is honored to but excluding the applicable Reimbursement Date, the rate of interest otherwise
payable hereunder with respect to 2015 Revolving Loans that are Base Rate Loans, and (ii)
thereafter, a rate which is 2% per annum in excess of the rate of interest otherwise payable
hereunder with respect to 2015 Revolving Loans that are Base Rate Loans.

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

54

 

distribute to each
Lender which has paid all amounts payable by it under Section 2.4(e) with respect to such honored
drawing such Lender’s Revolving Percentage of any interest received by Issuing Bank in respect of
that portion of such honored drawing so reimbursed by Lenders for the period from the date on which
Issuing Bank was so reimbursed by Lenders to but excluding the date on which such portion of such
honored drawing is reimbursed by Borrowers.

     2.9.
Conversion/Continuation. (a) Subject to Section 2.18 and so long as no Default or Event of Default shall have
occurred and then be continuing, Borrowers shall have the option:

          (i) to convert at any time all or any part of any Term Loan or Revolving Loan equal
to $1,000,000 and integral multiples of $500,000 in excess of that amount from one Type of
Loan to another Type of Loan; provided, a Eurodollar Rate Loan may only be converted
on the expiration of the Interest Period applicable to such Eurodollar Rate Loan unless
Borrowers shall pay all amounts due under Section 2.18 in connection with any such
conversion; or

          (ii) upon the expiration of any Interest Period applicable to any Eurodollar Rate
Loan, to continue all or any portion of such Loan equal to $1,000,000 and integral multiples
of $500,000 in excess of that amount as a Eurodollar Rate Loan.

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

     2.10. Default Interest. If any principal of or interest on any Loan or any fee or other amount payable by Borrowers
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 (and including post-petition
interest in any proceeding under the Bankruptcy Code or other applicable
bankruptcy laws) payable on demand (x) in the case of overdue principal of any Loan, at a rate
that is 2% per annum in excess of the interest rate otherwise payable hereunder with respect to
such Loan and (y) in the case of any such fees and other amounts, at a rate which is 2% per annum
in excess of the interest rate otherwise payable hereunder for Base Rate Loans that are Revolving
Loans. Payment or acceptance of the increased rates of interest provided for in this Section 2.10
is not a permitted alternative to timely payment and shall not constitute a waiver of any Default
or Event of Default or otherwise prejudice or limit any rights or remedies of Administrative Agent
or any Lender.

     2.11.
Fees. (a) Borrowers agree to pay:

          (i) to Lenders having 2012 Revolving Exposure, commitment fees equal to (A) the
average of the daily difference between (1) the 2012 Revolving Commitments

55

 

and (2) the
aggregate principal amount of (x) all outstanding 2012 Revolving Loans plus (y) the
Letter of Credit Usage attributable to the 2012 Revolving Commitments, times (B) the
Applicable Revolving Commitment Fee Percentage applicable to the 2012 Revolving Loans;

          (ii) to the Lenders having 2015 Revolving Exposure, commitment fees equal to (A) the
average daily difference between (1) the 2015 Revolving Commitments and (2) the aggregate
principal amount of (x) all outstanding 2015 Revolving Loans plus (y) the Letter of
Credit Usage attributable to the 2015 Revolving Commitments, times (B) the Applicable
Revolving Commitment Fee Percentage applicable to the 2015 Revolving Loans;

          (iii) to Lenders having 2012 Revolving Exposure, letter of credit fees equal to (A)
the Applicable Margin for 2012 Revolving Loans that are Eurodollar Rate Loans, times
(B) the average aggregate daily maximum amount available to be drawn under all such Letters
of Credit (regardless of whether any conditions for drawing could then be met and determined
as of the close of business on any date of determination); and

          (iv) to the Lenders having 2015 Revolving Exposure, letter of credit fees equal to
(A) the Applicable Margin for 2015 Revolving Loans that are Eurodollar Rate Loans,
times (B) the average aggregate daily maximum amount available to be drawn under all
such Letters of Credit (regardless of whether any conditions for drawing could then be met
and determined as of the close of business on any date of determination).

All fees referred to in this Section 2.11(a) shall be paid to Administrative Agent at its Principal
Office and upon receipt, Administrative Agent shall promptly distribute to each Lender its Pro Rata
Share of the applicable fees payable to each Class of Lenders.

          (b) Borrowers agree to pay directly to Issuing Bank, for its own account, the following
fees:

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

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

          (c) All fees referred to in Section 2.11(a) and 2.11(b)(i) shall be calculated on the basis
of a 360-day year and the actual number of days elapsed and shall be payable quarterly in arrears
on March 31, June 30, September 30 and December 31 of each year during the 2015 Revolving
Commitment Period, commencing on the first such date to occur after the Closing Date, and on each
Revolving Commitment Termination Date.

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

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     2.12. Scheduled Amortization of Term Loans. The principal amounts of the Tranche C Term Loans and Tranche C-2 Term Loans shall be repaid
in consecutive quarterly installments (each, an “Installment”) on each March 31, June 30, September
30 and December 31 of each year (each, an “Installment Date”), commencing December 31, 2010, in an
aggregate amount of 0.25% of the aggregate principal amount of Term Loans that would have been
outstanding on the Closing Date (assuming for this Section 2.12 only that such Tranche C Term Loans
and Tranche C-2 Term Loans were issued on June 1, 2006 in an amount equal to the Original Term
Loans issued under the Original Credit Agreement and that all scheduled amortization payments prior
to the Effective Date had been made), with the remaining balance due on the maturity date for such
Term Loans; provided, in the event any New Term Loans are made, such New Term Loans shall
be repaid on each Installment Date occurring on or after the applicable Increased Amount Date in an
amount equal to (i) the aggregate principal amount of New Term Loans of the applicable Series of
New Term Loans, times (ii) the ratio (expressed as a percentage) of (A) the amount of all
other Term Loans being repaid on such Installment Date and (B) the total aggregate principal amount
of all other Term Loans outstanding on such Increased Amount Date.

For the avoidance of doubt, it is the intention of the parties that the operation of the preceding
paragraph of this Section 2.12 result in such adjustments to the scheduled amortization in respect
of Tranche C Term Loans and Tranche C-2 Term Loans as are necessary to ensure that conversions of
Tranche C Term Loans into Tranche C-2 Term Loans on the Second ARCA Effective Date do not result in
any change to the scheduled amortization with respect to those Tranche C Term Loans not so
converted.

Notwithstanding the foregoing, (x) such Installments shall be reduced in connection with any
voluntary or mandatory prepayments of the Tranche C Term Loans and Tranche C-2 Term Loans in
accordance with Sections 2.13, 2.14 and 2.15, as applicable; (y) the Tranche C Term Loans, together
with all other amounts owed hereunder with respect thereto, shall, in any event, be paid
in full no later than the Tranche C Term Loan Maturity Date and (z) the Tranche C-2 Term Loans,
together with all other amounts owed hereunder with respect thereto, shall, in any event, be paid
in full no later than the Tranche C-2 Term Loan Maturity Date.

     2.13.
Voluntary Prepayments/Commitment Reductions. (a) Voluntary Prepayments.

               (i) Any time and from time to time:

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

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

57

 

                    (C) with respect to Swing Line Loans, Borrowers may prepay
any such Loans on any Business Day in whole or in part in an
aggregate minimum amount of $100,000, and in integral multiples
of $100,000 in excess of that amount.

               (ii) All such prepayments shall be made:

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

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

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

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

               (b) Voluntary Commitment Reductions.

                    (i) Company may, upon not less than three Business Days’ prior written or telephonic
notice confirmed in writing to Administrative Agent (which original written or telephonic
notice Administrative Agent will promptly transmit by telefacsimile or telephone to each
applicable Lender), at any time and from time to time terminate in whole or permanently
reduce in part, without premium or penalty, the Revolving Commitments in an amount up to the
amount by which the Revolving Commitments exceed the Total Utilization of Revolving
Commitments at the time of such proposed termination or reduction; provided, any
such partial reduction of the Revolving Commitments shall be in an aggregate minimum amount
of $1,000,000 and integral multiples of $500,000 in excess of that amount.

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

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     2.14.
Mandatory Prepayments/Commitment Reductions. (a) Asset Sales. No later than three Business Days following the date of receipt by
Holdings or any of its Subsidiaries of any Net Asset Sale Proceeds, Borrowers shall prepay the Term
Loans in an aggregate amount equal to such Net Asset Sale Proceeds; provided that so long
as no Default or Event of Default shall have occurred and be continuing, Borrowers shall have the
option, directly or through one or more of its Subsidiaries, to invest Net Asset Sale Proceeds (x)
within 365 days following receipt of such Net Asset Sale Proceeds or (y) if a Credit Party enters
into a legally binding commitment to reinvest such Net Asset Sale Proceeds within 365 days
following receipt thereof (and such commitment remains in effect), within 180 days of the date of
such legally binding commitment, in assets useful to the business of Holdings and its Subsidiaries
(such Net Asset Sale Proceeds so reinvested or committed to be reinvested, “Asset Sale Reinvestment
Deferred Amount”).

          (b) Insurance/Condemnation Proceeds. No later than three Business Days following
the date of receipt by Holdings or any of its Subsidiaries, or Administrative Agent as loss payee,
of any Net Insurance/Condemnation Proceeds, Borrowers shall prepay the Term Loans in an aggregate
amount equal to such Net Insurance/Condemnation Proceeds; provided that so long as no
Default or Event of Default shall have occurred and be continuing, Borrowers shall have the option,
directly or through one or more of its Subsidiaries to invest such Net Insurance/Condemnation
Proceeds (x) within 365 days following receipt of such Net Insurance/Condemnation Proceeds or (y)
if a Credit Party enters into a legally binding commitment to reinvest such Net
Insurance/Condemnation Proceeds within 365 days following receipt thereof (and such commitment
remains in effect), within 180 days of the date of such legally binding commitment, in assets
useful to the business of Holdings and its Subsidiaries,
which investment may include the repair, restoration or replacement of the applicable assets
thereof (such Net Insurance/Condemnation Proceeds so reinvested or committed to be reinvested,
“Insurance/Condemnation Reinvestment Deferred Amount”).

          (c) Issuance of Debt. No later than three Business Days following the date of
receipt by Holdings or any of its Subsidiaries of any Net Cash Proceeds from the incurrence of any
Indebtedness of Holdings or any of its Subsidiaries (other than with respect to any Indebtedness
permitted to be incurred pursuant to Section 6.3), Borrowers shall prepay the Term Loans in an
aggregate amount equal to 100% of such Net Cash Proceeds.

          (d) Consolidated Excess Cash Flow. In the event that (x) there shall be
Consolidated Excess Cash Flow for any Fiscal Year (commencing with the Fiscal Year ending June 30,
2007) and (y) the Total Leverage Ratio as of the last day of such Fiscal Year (determined for any
such period by reference to the Compliance Certificate delivered pursuant to Section 5.2(b)
calculating the Total Leverage Ratio as of the last day of such Fiscal Year) shall be greater than
5:00:1, Borrowers shall, no later than ninety days after the end of such Fiscal Year, prepay the
Term Loans in an aggregate amount equal to (i) 50% of such Consolidated Excess Cash Flow
minus (ii) voluntary repayments of the Loans (excluding repayments of Revolving Loans or
Swing Line Loans except to the extent the Revolving Commitments are permanently reduced in
connection with such repayments).

          (e) Revolving Loans and Swing Loans. Borrowers shall from time to time prepay
first, the Swing Line Loans, and second, the Revolving Loans to the extent necessary so

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that the
Total Utilization of Revolving Commitments shall not at any time exceed the Revolving Commitments
then in effect.

          (f) Letter of Credit Usage Exceeds 2012 Revolving Commitments. If for any reason at
any time during the five Business Day period immediately preceding the 2012 Revolving Commitment
Termination Date, the 2012 Revolving Lenders’ Revolving Percentage of the Revolving Credit Exposure
attributable to Letter of Credit Usage exceeds the amount of the 2015 Revolving Lenders’ Revolving
Percentage of the aggregate Revolving Credit Exposure at such time, then the Borrowers shall
promptly prepay or cause to be promptly prepaid Revolving Loans and/or cash collateralize Letters
of Credit in an aggregate amount necessary to eliminate such excess. If for any reason at any time
after the 2012 Revolving Commitment Termination Date the Revolving Credit Exposure exceeds the
amount of the 2015 Revolving Commitments minus the 2015 Revolving Lenders’ Revolving Percentage of
the aggregate Revolving Credit Exposure, then the Borrowers shall promptly prepay or cause to be
promptly prepaid Revolving Loans and/or cash collateralize the Letters of Credit in an aggregate
amount necessary to eliminate such excess.

          (g) Prepayment Certificate. Concurrently with any prepayment of the Loans pursuant
to Sections 2.14(a) through 2.14(d), Company shall deliver to Administrative Agent a certificate of
a Responsible Officer demonstrating the calculation of the amount of the applicable net proceeds or
Consolidated Excess Cash Flow, as the case may be. In the event that Company shall subsequently
determine that the actual amount received exceeded (an “excess”) or was less than (a “deficit”) the
amount set forth in such certificate, (x) in the case of an excess, Company shall promptly make an
additional prepayment of the Term Loans and (y) in the case of a deficit
which resulted in an overpayment of the Term Loans, the amount of such overpayment shall be
credited against the next Installment or Installments payable under Section 2.12, and in each case
Company shall deliver to Administrative Agent a certificate of its Responsible Officer
demonstrating the derivation of such excess or deficit, as the case may be.

     2.15.
Application of Prepayments/Reductions. (a) Application of Voluntary Prepayments by Type of Loans. Any prepayment of any
Loan pursuant to Section 2.13(a) shall be applied as specified by Borrowers in the applicable
notice of prepayment; provided that, (i) in the event Borrowers fail to specify the Loans
to which any such prepayment shall be applied, such prepayment shall be applied as follows: first,
to repay outstanding Swing Line Loans to the full extent thereof; second, to repay outstanding
Revolving Loans on a pro rata basis (in accordance with the respective outstanding principal
amounts thereof) to the full extent thereof; and third, to prepay the Term Loans on a pro rata
basis (in accordance with the respective outstanding principal amounts thereof) and further applied
on a pro rata basis to the remaining Installments of principal and (ii) so long as any Tranche C
Term Loans are outstanding, no prepayment by the Borrowers shall be applied to prepay Tranche C-2
Term Loans under this paragraph unless it shall simultaneously be applied to prepay Tranche C Term
Loans on at least a ratable basis with the Tranche C-2 Term Loans being prepaid (it being
understood and agreed that the Borrowers may prepay Tranche C Term Loans under this paragraph
without making any corresponding prepayments of Tranche C-2 Term Loans).

          (b) Application of Mandatory Prepayments. Any amount required to be paid pursuant
to Sections 2.14(a) through 2.14(e), shall be applied to prepay the scheduled

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Installments of
principal of Term Loans as directed by Company; provided that in no event shall any amount
be applied to prepay the scheduled Installments of principal of Tranche C-2 Term Loans unless such
amounts shall simultaneously be applied to prepay the scheduled Installments of principal of
Tranche C Term Loans on at least a ratable basis.

          (c) Waivable Mandatory Prepayment. Anything contained herein to the contrary
notwithstanding, in the event Company is required to make any mandatory prepayment (a “Waivable
Mandatory Prepayment”) of the Term Loans, not less than three Business Days prior to the date (the
“Required Prepayment Date”) on which Company is required to make such Waivable Mandatory
Prepayment, Company shall notify Administrative Agent of the amount of such prepayment, the Classes
of Term Loans to be repaid (subject to the limitations set forth in Section 2.15(b)) and
Administrative Agent will promptly thereafter notify each Lender holding an outstanding Tranche C
Term Loan and/or Tranche C-2 Term Loan of the amount of such Lender’s Pro Rata Share of such
Waivable Mandatory Prepayment with respect to such Class and such Lender’s option to refuse such
amount. Each such Lender may exercise such option by giving written notice to Company and
Administrative Agent of its election to do so on or before the first Business Day prior to the
Required Prepayment Date (it being understood that any Lender which does not notify Company and
Administrative Agent of its election to exercise such option on or before the first Business Day
prior to the Required Prepayment Date shall be deemed to have elected, as of such date, not to
exercise such option). On the Required Prepayment Date, Company shall pay to Administrative Agent
an amount equal to that portion of the Waivable Mandatory Prepayment payable to those Lenders that
have
elected not to exercise such option, which shall be applied to prepay the Tranche C Term Loans
and Tranche C-2 Term Loans, as applicable, of such Lenders (which prepayment shall be applied to
the scheduled Installments of principal of the Tranche C Term Loans in accordance with Section
2.15(b)). Company shall be entitled to retain an amount equal to that portion of the Waivable
Mandatory Prepayment otherwise payable to those Lenders that have elected to exercise such option,
to be used for general business purposes.

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

     2.16.
General Provisions Regarding Payments. (a) All payments by Borrowers of principal, interest, fees and other Obligations shall be
made in Dollars in same day funds, without defense, setoff or counterclaim, free of any restriction
or condition, and delivered to Administrative Agent not later than 1:00 p.m. (New York City time)
on the date due at the Principal Office designated by Administrative Agent for the account of
Lenders; for purposes of computing interest and fees, funds received by Administrative Agent after
that time on such due date shall be deemed to have been paid by Borrowers on the next succeeding
Business Day.

          (b) All payments in respect of the principal amount of any Loan (other than voluntary
prepayments of Revolving Loans) shall be accompanied by payment of accrued interest on the
principal amount being repaid or prepaid, and all such payments (and, in any event, any payments in
respect of any Loan on a date when interest is due and payable with

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respect to such Loan) shall be
applied to the payment of interest then due and payable before application to principal.

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

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

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

          (f) Administrative Agent shall deem any payment by or on behalf of Borrowers hereunder that
is not made in same day funds prior to 1:00 p.m. (New York City time) to be a non-conforming
payment. Any such payment shall not be deemed to have been received by Administrative Agent until
the later of (i) the time such funds become available funds, and (ii) the applicable next Business
Day. Administrative Agent shall give prompt telephonic notice to the relevant Borrower and each
applicable Lender (confirmed in writing) if any payment is non-conforming. Any non-conforming
payment may constitute or become a Default or Event of Default in accordance with the terms of
Section 8.1(a). Interest shall continue to accrue on any principal as to which a non-conforming
payment is made until such funds become available funds (but in no event less than the period from
the date of such payment to the next succeeding applicable Business Day) at the rate determined
pursuant to Section 2.10 from the date such amount was due and payable until the date such amount
is paid in full.

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

     2.17. Ratable Sharing. Lenders hereby agree among themselves that if any of them shall, whether by voluntary payment
(other than a voluntary prepayment of Loans made and applied in accordance with the terms hereof),
through the exercise of any right of set-off or banker’s lien, by counterclaim or cross action or
by the enforcement of any right under the Credit Documents or otherwise, or as adequate protection
of a deposit treated as cash collateral under the Bankruptcy Code, receive payment or reduction of
a proportion of the aggregate amount of principal, interest, amounts payable in respect of Letters
of Credit, fees and other amounts then

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due and owing to such Lender hereunder or under the other
Credit Documents (collectively, the “Aggregate Amounts Due” to such Lender) which is greater than
the proportion received by any other Lender in respect of the Aggregate Amounts Due to such other
Lender, then the Lender receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and (b) apply a portion
of such payment to purchase participations (which it shall be deemed to have purchased from each
seller of a participation simultaneously upon the receipt by such seller of its portion of such
payment) in the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate
Amounts Due shall be shared by all Lenders in proportion to the Aggregate Amounts Due to them;
provided, if all or part of such proportionately greater payment received by such
purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization of
a Borrower or otherwise, those purchases shall be rescinded and the purchase prices paid for such
participations shall be returned to such purchasing Lender ratably to the extent of such recovery,
but without interest. Each Borrower expressly consents to the foregoing arrangement and agrees
that any holder of a participation so purchased may exercise any and all rights of banker’s lien,
set-off or counterclaim with respect to any and all monies owing by such Borrower to that holder
with respect thereto as fully as if that holder were owed the amount of the participation held by
that holder. Notwithstanding anything to the contrary contained herein, the provisions of this
Section 2.17 shall be subject to
the express provisions of this Agreement which require, or permit, differing payments to be
made to non-Defaulting Lenders as opposed to Defaulting Lenders.

     2.18.
Making or Maintaining Eurodollar Rate Loans. (a) Inability to Determine Applicable Interest Rate. In the event that
Administrative Agent shall have determined (which determination shall be final and conclusive and
binding upon all parties hereto), on any Interest Rate Determination Date with respect to any
Eurodollar Rate Loans, that by reason of circumstances affecting the London interbank market
adequate and fair means do not exist for ascertaining the interest rate applicable to such Loans on
the basis provided for in the definition of Adjusted Eurodollar Rate, Administrative Agent shall on
such date give notice (by telefacsimile or by telephone confirmed in writing) to Company and each
Lender of such determination, whereupon so long as such circumstance is continuing (i) no Loans may
be made as, or converted to, Eurodollar Rate Loans until such time as Administrative Agent notifies
Company and Lenders that the circumstances giving rise to such notice no longer exist, and (ii) any
Funding Notice or Conversion/Continuation Notice given by a Borrower with respect to the Loans in
respect of which such determination was made shall be deemed to be rescinded by such Borrower.

          (b) Illegality or Impracticability of Eurodollar Rate Loans. In the event that on
any date any Lender shall have determined (which determination shall be final and conclusive and
binding upon all parties hereto but shall be made only after consultation with Company and
Administrative Agent) that the making, maintaining or continuation of its Eurodollar Rate Loans (i)
has become unlawful as a result of compliance by such Lender in good faith with any law, treaty,
governmental rule, regulation, guideline or order (or would conflict with any such treaty,
governmental rule, regulation, guideline or order not having the force of law even though the
failure to comply therewith would not be unlawful), or (ii) has become impracticable, as a result
of contingencies occurring after the Closing Date which materially and adversely affect the London
interbank market or the position of such Lender in that market, then, and in any such

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event, such
Lender shall be an “Affected Lender” and it shall on that day give notice (by telefacsimile or by
telephone confirmed in writing) to Company and Administrative Agent of such determination (which
notice Administrative Agent shall promptly transmit to each other Lender). Thereafter (A) the
obligation of the Affected Lender to make Loans as, or to convert Loans to, Eurodollar Rate Loans
shall be suspended until such notice shall be withdrawn by the Affected Lender, (B) to the extent
such determination by the Affected Lender relates to a Eurodollar Rate Loan then being requested by
a Borrower pursuant to a Funding Notice or a Conversion/Continuation Notice, the Affected Lender
shall make such Loan as (or continue such Loan as or convert such Loan to, as the case may be) a
Base Rate Loan, (C) the Affected Lender’s obligation to maintain its outstanding Eurodollar Rate
Loans (the “Affected Loans”) shall be terminated at the earlier to occur of the expiration of the
Interest Period then in effect with respect to the Affected Loans or when required by law, and (D)
the Affected Loans shall automatically convert into Base Rate Loans on the date of such
termination. Notwithstanding the foregoing, to the extent a determination by an Affected Lender as
described above relates to a Eurodollar Rate Loan then being requested by a Borrower pursuant to a
Funding Notice or a Conversion/Continuation Notice, such Borrower shall have the option, subject to
the provisions of Section 2.18(c), to rescind such Funding Notice or Conversion/Continuation Notice
as to all Lenders by giving notice (by telefacsimile or by telephone confirmed in writing) to
Administrative Agent of such rescission on the date on which the Affected Lender gives notice
of its determination as described above (which notice of rescission Administrative Agent shall
promptly transmit to each other Lender). Except as provided in the immediately preceding sentence,
nothing in this Section 2.18(b) shall affect the obligation of any Lender other than an Affected
Lender to make or maintain Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance
with the terms hereof.

          (c) Compensation for Breakage or Non-Commencement of Interest Periods. Borrowers
shall compensate each Lender, upon written request by such Lender (which request shall set forth
the basis for requesting such amounts), for all reasonable losses, expenses and liabilities
(including any interest paid by such Lender to Lenders of funds borrowed by it to make or carry its
Eurodollar Rate Loans and any loss, expense or liability sustained by such Lender in connection
with the liquidation or re-employment of such funds but excluding loss of anticipated profits)
which such Lender may sustain: (i) if for any reason (other than a default by such Lender) a
borrowing of any Eurodollar Rate Loan does not occur on a date specified therefor in a Funding
Notice or a telephonic request for borrowing, or a conversion to or continuation of any Eurodollar
Rate Loan does not occur on a date specified therefor in a Conversion/Continuation Notice or a
telephonic request for conversion or continuation; (ii) if any prepayment or other principal
payment of, or any conversion of, any of its Eurodollar Rate Loans occurs on a date prior to the
last day of an Interest Period applicable to that Loan; or (iii) if any prepayment of any of its
Eurodollar Rate Loans is not made on any date specified in a notice of prepayment given by any
Borrower.

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

          (e) Assumptions Concerning Funding of Eurodollar Rate Loans. Calculation of all
amounts payable to a Lender under this Section 2.18 and under Section 2.19 shall be made as

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though such Lender had actually funded each of its relevant Eurodollar Rate Loans through the purchase of
a Eurodollar deposit bearing interest at the rate obtained pursuant to clause (a) of the definition
of Adjusted Eurodollar Rate in an amount equal to the amount of such Eurodollar Rate Loan and
having a maturity comparable to the relevant Interest Period and through the transfer of such
Eurodollar deposit from an offshore office of such Lender to a domestic office of such Lender in
the United States of America; provided, however, each Lender may fund each of its
Eurodollar Rate Loans in any manner it sees fit and the foregoing assumptions shall be utilized
only for the purposes of calculating amounts payable under this Section 2.18 and under Section
2.19.

     2.19.
Increased Costs; Capital Adequacy. (a) Compensation For Increased Costs and Taxes. Subject to the provisions of
Section 2.20 (which shall be controlling with respect to the matters covered thereby), in the event
that any Lender (which term shall include Issuing Bank for purposes of this Section 2.19(a)) shall
determine (which determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto) that any law, treaty or governmental rule, regulation or order, or any
change therein or in the interpretation, administration or application thereof (including the
introduction of any new law, treaty or governmental rule, regulation or order), or any
determination of a court or governmental authority, in each case that becomes effective after the
Closing Date, or compliance by such Lender with any guideline, request or directive issued or made
after the Closing Date by any central bank or other governmental or quasi-governmental authority
(whether or not having the force of law): (i) imposes, modifies or holds applicable any reserve
(including any marginal, emergency, supplemental, special or other reserve), special deposit,
compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other
liabilities in or for the account of, or advances or loans by, or other credit extended by, or any
other acquisition of funds by, any office of such Lender (other than any such reserve or other
requirements with respect to Eurodollar Rate Loans that are reflected in the definition of Adjusted
Eurodollar Rate); or (ii) imposes any other condition (other than with respect to a Tax matter) on
or affecting such Lender (or its applicable lending office) or its obligations hereunder or the
London interbank market; and the result of either of the foregoing is to increase the cost to such
Lender of agreeing to make, making or maintaining Loans hereunder or to reduce any amount received
or receivable by such Lender (or its applicable lending office) with respect thereto; then, in any
such case, Borrowers shall promptly pay to such Lender, upon receipt of the statement referred to
in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its sole discretion shall
determine) as may be necessary to compensate such Lender for any such increased cost or reduction
in amounts received or receivable hereunder. Such Lender shall deliver to Company (with a copy to
Administrative Agent) a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed to such Lender under this Section 2.19(a), which statement
shall be conclusive and binding upon all parties hereto absent manifest error.

          (b) Capital Adequacy Adjustment. In the event that any Lender (which term shall
include Issuing Bank for purposes of this Section 2.19(b)) shall have determined that the
adoption, effectiveness, phase-in or applicability after the Closing Date of any law, rule or
regulation (or any provision thereof) regarding capital adequacy, or any change therein or in the
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by

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any Lender (or
its applicable lending office) with any guideline, request or directive regarding capital adequacy
(whether or not having the force of law) of any such Governmental Authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return on the capital of
such Lender or any corporation controlling such Lender as a consequence of, or with reference to,
such Lender’s Loans or Revolving Commitments or Letters of Credit, or participations therein or
other obligations hereunder with respect to the Loans, Revolving Commitments or the Letters of
Credit to a level below that which such Lender or such controlling corporation could have achieved
but for such adoption, effectiveness, phase-in, applicability, change or compliance (taking into
consideration the policies of such Lender or such controlling corporation with regard to capital
adequacy), then from time to time, within five Business Days after receipt by Company from such
Lender of the statement referred to in the next sentence, Borrowers shall pay to such Lender such
additional amount or amounts as will compensate such Lender or such controlling corporation on an
after-tax basis for such reduction. Such Lender shall deliver to Company (with a copy to
Administrative Agent) a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed
to Lender under this Section 2.19(b), which statement shall be conclusive and binding upon all
parties hereto absent manifest error.

     2.20. Taxes; Withholding, etc.

          (a) Payments to Be Free and Clear. All sums payable by any Credit Party hereunder
and under the other Credit Documents shall (except to the extent required by law) be paid free and
clear of, and without any deduction or withholding on account of, any Tax (other than a Tax on the
overall net income of any Lender or franchise taxes imposed in lieu of tax on the overall net
income) imposed, levied, collected, withheld or assessed by or within the United States of America
or any political subdivision in or of the United States of America or any other jurisdiction from
or to which a payment is made by or on behalf of any Credit Party or by any federation or
organization of which the United States of America or any such jurisdiction is a member at the time
of payment.

          (b) Withholding of Taxes. If any Credit Party or any other Person is required by
law to make any deduction or withholding on account of any such Tax from any sum paid or payable by
any Credit Party to Administrative Agent or any Lender (which term shall include Issuing Bank for
purposes of this Section 2.20(b)) under any of the Credit Documents: (i) Company shall notify
Administrative Agent of any such requirement or any change in any such requirement as soon as
Company becomes aware of it; (ii) Borrowers shall pay any such Tax before the date on which
penalties attach thereto, such payment to be made (if the liability to pay is imposed on any Credit
Party) for their own account or (if that liability is imposed on Administrative Agent or such
Lender, as the case may be) on behalf of and in the name of Administrative Agent or such Lender;
(iii) the sum payable by such Credit Party in respect of which the relevant deduction, withholding
or payment is required shall be increased to the extent necessary to ensure that, after the making
of that deduction, withholding or payment, Administrative Agent or such Lender, as the case may be,
receives on the due date a net sum equal to what it would have received had no such deduction,
withholding or payment been required or made; and (iv) within thirty days after paying any sum from
which it is required by law to make any deduction or withholding, and within thirty days after the
due date of payment of any Tax which it is required by clause (ii) above to pay, Borrowers shall
deliver to

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Administrative Agent evidence satisfactory to the other affected parties of such
deduction, withholding or payment and of the remittance thereof to the relevant taxing or other
authority; provided, no such additional amount shall be required to be paid to any Lender under
clause (iii) above except to the extent that any change after the Closing Date (in the case of each
Lender listed on the signature pages of the Original Credit Agreement on the Closing Date) or after
the effective date of the Assignment Agreement pursuant to which such Lender became a Lender (in
the case of each other Lender) in any such requirement for a deduction, withholding or payment as
is mentioned therein shall result in an increase in the rate of such deduction, withholding or
payment from that in effect at the Closing Date or at the date of such Assignment Agreement, as the
case may be, in respect of payments to such Lender, provided, however, that
Borrowers shall not be required to increase any such amounts payable to any Lender pursuant to
clause (iii) of this Section 2.20(b), that are (A) attributable to such Lender’s failure to comply
with the requirements of paragraph (c) of this Section 2.20 or (B) United States withholding taxes
imposed on amounts payable to such Lender at the time such Lender becomes a party to this
Agreement, except to the extent that such Lender’s assignor (if any) was entitled, at the time of
assignment, to receive additional amounts from Borrowers with respect to such amounts pursuant
to clause (iii) of this Section 2.20(b).

          (c) Evidence of Exemption From U.S. Withholding Tax. Each Lender that is not a
United States Person (as such term is defined in Section 7701(a)(30) of the Internal Revenue Code)
for U.S. federal income tax purposes (a “Non-US Lender”) shall deliver to
Administrative Agent for
transmission to Company, on or prior to the Closing Date (in the case of each Lender listed on the
signature pages hereof on the Closing Date) or on or prior to the date of the Assignment Agreement
pursuant to which it becomes a Lender (in the case of each other Lender), and at such other times
as may be necessary in the determination of Company or Administrative Agent (each in the reasonable
exercise of its discretion), (i) two original copies of Internal Revenue Service Form W-8BEN or
W-8ECI (or any successor forms), properly completed and duly executed by such Lender, and such
other documentation required under the Internal Revenue Code and reasonably requested by Company to
establish that such Lender is not subject to deduction or withholding of United States federal
income tax with respect to any payments to such Lender of principal, interest, fees or other
amounts payable under any of the Credit Documents, or (ii) if such Lender is not a “bank” or other
Person described in Section 881(c)(3) of the Internal Revenue Code and cannot deliver either
Internal Revenue Service Form W-8ECI pursuant to clause (i) above, a Certificate re Non-Bank Status
together with two original copies of Internal Revenue Service Form W-8BEN (or any successor form),
properly completed and duly executed by such Lender, and such other documentation required under
the Internal Revenue Code and reasonably requested by Company to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with respect to any
payments to such Lender of interest payable under any of the Credit Documents. Each Lender
required to deliver any forms, certificates or other evidence with respect to United States federal
income tax withholding matters pursuant to this Section 2.20(c) hereby agrees, from time to time
after the initial delivery by such Lender of such forms, certificates or other evidence, whenever a
lapse in time or change in circumstances renders such forms, certificates or other evidence
obsolete or inaccurate in any material respect, that such Lender shall promptly deliver to
Administrative Agent for transmission to Company two new original copies of Internal Revenue
Service Form W-8BEN or W-8ECI , or a Certificate re Non-Bank Status and two original copies of
Internal Revenue Service Form W-8BEN (or any successor form), as the case

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may be, properly
completed and duly executed by such Lender, and such other documentation required under the
Internal Revenue Code and reasonably requested by Company to confirm or establish that such Lender
is not subject to deduction or withholding of United States federal income tax with respect to
payments to such Lender under the Credit Documents, or notify Administrative Agent and Company of
its inability to deliver any such forms, certificates or other evidence. Borrowers shall not be
required to pay any additional amount to any Non-US Lender under Section 2.20(b)(iii) if such
Lender shall have failed (A) to deliver the forms, certificates or other evidence referred to in
this Section 2.20(c), or (B) to notify Administrative Agent and Company of its inability to deliver
any such forms, certificates or other evidence, as the case may be; provided, if such
Lender shall have satisfied the requirements of the first sentence of this Section 2.20(c) on the
Closing Date or on the date of the Assignment Agreement pursuant to which it became a Lender, as
applicable, nothing in this last sentence of Section 2.20(c) shall relieve any Borrower of its
obligation to pay any additional amounts pursuant this Section 2.20 in the event that, as a result
of any change in any applicable law, treaty or governmental rule, regulation or order, or any
change in the interpretation, administration or
application thereof, such Lender is no longer properly entitled to deliver forms, certificates
or other evidence at a subsequent date establishing the fact that such Lender is not subject to
withholding as described herein.

          (d) Treatment of Certain Refunds. If Administrative Agent or Lender determines, in
its reasonable discretion, that it has received a refund of any Tax as to which it has been
indemnified by Company or other applicable Credit Party or with respect to which Company or such
other applicable Credit Party has paid additional amounts pursuant to this Section 2.20, it shall
pay to Company or such other applicable Credit Party an amount equal to such refund (but only to
the extent of indemnity payments made, or additional amounts paid, by Company or such other
applicable Credit Party under this Section 2.20 with respect to any Tax giving rise to such
refund), net of all out-of-pocket expenses of Administrative Agent, or such Lender, as the case may
be, and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund).

     2.21. Obligation to Mitigate. Each Lender (which term shall include Issuing Bank for purposes of this Section 2.21) agrees
that, as promptly as practicable after the officer of such Lender responsible for administering its
Revolving Commitments, Loans or Letters of Credit, as the case may be, becomes aware of the
occurrence of an event or the existence of a condition that would cause such Lender to become an
Affected Lender or that would entitle such Lender to receive payments under Section 2.18, 2.19 or
2.20, it will, to the extent not inconsistent with the internal policies of such Lender and any
applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund or
maintain its Credit Extensions, including any Affected Loans, through another office of such
Lender, or (b) take such other measures as such Lender may deem reasonable, if as a result thereof
the circumstances which would cause such Lender to be an Affected Lender would cease to exist or
the additional amounts which would otherwise be required to be paid to such Lender pursuant to
Section 2.18, 2.19 or 2.20 would be materially reduced and if, as determined by such Lender in its
sole discretion, the making, issuing, funding or maintaining of such Revolving Commitments, Loans
or Letters of Credit through such other office or in accordance with such other measures, as the
case may be, would not otherwise adversely affect such Revolving Commitments, Loans or Letters of
Credit or the interests of such Lender; provided, such Lender will not be obligated to
utilize such other office

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pursuant to this Section 2.21 unless Borrowers agree to pay all
incremental expenses incurred by such Lender as a result of utilizing such other office as
described above. A certificate as to the amount of any such expenses payable by Borrowers pursuant
to this Section 2.21 (setting forth in reasonable detail the basis for requesting such amount)
submitted by such Lender to Company (with a copy to Administrative Agent) shall be conclusive
absent manifest error.

     2.22. Defaulting Lenders.Anything contained herein to the contrary notwithstanding, in the event that any Lender
becomes a Defaulting Lender hereunder, then, so long as such Lender is a Defaulting Lender, (a)
such Defaulting Lender shall be deemed not to be a “Lender” for purposes of voting on any matters
(including the granting of any consents or waivers) with respect to any of the Credit Documents,
provided that any waiver, amendment or modification requiring the consent of all
Lenders or each affected Lender which adversely affects such Defaulting Lender differently
than other affected Lenders shall require the consent of such Defaulting Lender; (b) to the extent
permitted by applicable law, any amount payable to such Defaulting Lender hereunder (whether on
account of principal, interest, fees or otherwise) shall, in lieu of being distributed to such
Defaulting Lender, be retained by the Administrative Agent in a segregated account and subject to
any applicable requirements of law, be applied (i) first, to the payment of any amounts owing by
such Defaulting Lender to the Administrative Agent hereunder, (ii) second, to the payment of any
amounts owing by such Defaulting Lender to the Issuing Banks hereunder (pro rata in accordance with
such amounts), (iii) third, to the funding of cash collateralization of any participating interest
in any Letter of Credit in respect of which such Defaulting Lender has failed to fund its portion
thereof as required by this Agreement, as determined by the Administrative Agent or the applicable
Issuing Bank, (iv) fourth, if so determined by the Administrative Agent, the Issuing Banks and the
Borrower, held in such account as cash collateral for future funding obligations of any Defaulting
Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the
Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained
by the Borrower or any Lender against such Defaulting Lender as a result of such Defaulting
Lender’s breach of its obligations under this Agreement and (vi) sixth, to such Defaulting Lender
or as otherwise directed by a court of competent jurisdiction; provided that, to the extent
permitted by applicable law, if such payment is a payment of the principal amount of any Revolving
Loan and the Borrower so directs, such payment shall be applied solely to Revolving Loans of the
other Lenders of the same Class as if such Defaulting Lender had no Revolving Loans outstanding and
the Revolving Exposure of such Defaulting Lender were zero prior to being applied pursuant to the
foregoing waterfall; (c) fees under Section 2.11 shall cease to accrue on that portion of such
Defaulting Lender’s Commitment that remains unfunded or which has not been included in any
determination of Letter of Credit Usage pursuant to this Section 2,22; (d) if any Letter of Credit
Usage exists at the time a Lender becomes a Defaulting Lender then: (i) such Letter of Credit Usage
shall be reallocated among the non-Defaulting Lenders of the applicable Class in accordance with
their respective Pro Rata Share but only to the extent the sum of the Revolving Exposure of all
non-Defaulting Lenders of such Class plus such Defaulting Lender’s Pro Rata Share of the Letter of
Credit Usage does not exceed the total of all Commitments of all non-Defaulting Lenders of such
Class, (ii) if the reallocation described in clause (i) above cannot, or can only partially, be
effected, the Borrowers shall, promptly following a request by the Administrative Agent or any
Issuing Bank having issued outstanding Letters of Credit, cash collateralize such Defaulting
Lender’s Pro Rata Share of the Letter of Credit Usage (after giving effect to any partial
reallocation pursuant to clause (i) above and only to the extent not covered

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by any cash collateral
provided pursuant to clause (b) of this Section) in a manner and amount reasonably acceptable to
the Administrative Agent and any applicable Issuing Bank, (iii) if the Borrowers cash collateralize
any portion of such Defaulting Lender’s Pro Rata Share of the Letter of Credit Usage pursuant to
this Section, the Borrowers shall not be required to pay any fees to such Defaulting Lender
pursuant to Section 2.11 with respect to such cash collateralized portion of the Defaulting
Lender’s Pro Rata Share of the Letter of Credit Usage during the period such Defaulting Lender’s
Pro Rata Share of the Letter of Credit Usage is cash collateralized, (iv) if that portion of the
Letter of Credit Usage attributable to all non-Defaulting Lenders is reallocated pursuant to this
Section 2.22, then the fees payable to the Lenders pursuant to Section 2.11 shall be adjusted in
accordance with such non-Defaulting Lenders’ Revolving Percentages
determined in accordance with such reallocation, and (v) if any Defaulting Lender’s Pro Rata
Share of the Letter of Credit Usage is neither cash collateralized nor reallocated pursuant to this
Section 2.22, then, without prejudice to any rights or remedies of the Administrative Agent, any
Issuing Bank or any Lender hereunder, all fees payable to the Lenders pursuant to Section 2.11 with
respect to such Defaulting Lender’s Pro Rata Share of the Letter of Credit Usage that is neither
cash collateralized nor reallocated shall be payable to the applicable Issuing Bank until such
portion of the Letter of Credit Usage is fully cash collateralized and/or reallocated; and (e) so
long as any Lender is a Defaulting Lender no Issuing Bank shall be required to issue, amend renew
or extend any Letter of Credit unless it is satisfied, it its sole discretion, that the related
exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash
collateralized. No Revolving Commitment of any Lender shall be increased or otherwise affected,
and, except as otherwise expressly provided in this Section 2.22, performance by Borrowers of their
obligations hereunder and the other Credit Documents shall not be excused or otherwise modified as
a result of any Lender becoming a Defaulting Lender or the operation of this Section 2.22. The
rights and remedies against a Defaulting Lender under this Section 2.22 are in addition to other
rights and remedies which the Borrowers, the Administrative Agent and the Issuing Banks and the
Lenders may have against such Defaulting Lender. In the event that each of the Administrative
Agent, the Borrowers, and the Issuing Banks agrees that a Defaulting Lender has adequately remedied
all matters that caused such Lender to be a Defaulting Lender, then such Lender shall cease to be a
Defaulting Lender hereunder and the Letter of Credit Usage shall be readjusted to reflect the
inclusion of such Lender’s Commitment. On such date such Lender shall purchase at par such of the
Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order
for such Lender to hold such Loans in accordance with its Revolving Percentage.

     2.23. Removal or Replacement of a Lender.Anything contained herein to the contrary notwithstanding, in the event that: (a) (i) any
Lender (an “Increased-Cost Lender”) shall give notice to Company that such Lender is an Affected
Lender or that such Lender is entitled to receive payments under Section 2.18, 2.19 or 2.20, (ii)
the circumstances which have caused such Lender to be an Affected Lender or which entitle such
Lender to receive such payments shall remain in effect, and (iii) such Lender shall fail to
withdraw such notice within five Business Days after Company’s request for such withdrawal; or (b)
(i) any Lender shall be a Defaulting Lender and (ii) such Defaulting Lender shall fail to cure the
default as a result of which it has become a Defaulting Lender within five Business Days after
Company’s request that it cure such default; or (c) in connection with any proposed amendment,
modification, termination, waiver or consent with respect to any of the provisions hereof as
contemplated by Section 10.5(b), the consent of Requisite Lenders shall have been obtained but the
consent of one

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or more of such other Lenders (each a “Non-Consenting Lender”) whose consent is
required shall not have been obtained; then, with respect to each such Increased-Cost Lender,
Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”), Company may, by giving
written notice to Administrative Agent and any Terminated Lender of its election to do so, elect to
cause such Terminated Lender (and such Terminated Lender hereby irrevocably agrees) to assign its
outstanding Loans and its Revolving Commitments, if any, in full to one or more Eligible Assignees
(each a “Replacement Lender”) in accordance with the provisions of Section 10.6 and Borrowers shall
pay the fees, if any, payable thereunder in connection with any such assignment from an Increased
Cost Lender or a
Non-Consenting Lender and the Defaulting Lender shall pay the fees, if any, payable thereunder
in connection with any such assignment from such Defaulting Lender; provided, (A) on the
date of such assignment, the Replacement Lender shall pay to Terminated Lender an amount equal to
the sum of (1) an amount equal to the principal of, and all accrued interest on, all outstanding
Loans of the Terminated Lender, (2) an amount equal to all unreimbursed drawings that have been
funded by such Terminated Lender, together with all then unpaid interest with respect thereto at
such time and (3) an amount equal to all accrued, but theretofore unpaid fees owing to such
Terminated Lender pursuant to Section 2.11; (B) on the date of such assignment, Borrowers shall pay
any amounts payable to such Terminated Lender pursuant to Section 2.18(c), 2.19 or 2.20; or
otherwise as if it were a prepayment and (C) in the event such Terminated Lender is a
Non-Consenting Lender, each Replacement Lender shall consent, at the time of such assignment, to
each matter in respect of which such Terminated Lender was a Non-Consenting Lender;
provided, Company may not make such election with respect to any Terminated Lender that is
also an Issuing Bank unless, prior to the effectiveness of such election, Borrowers shall have
caused each outstanding Letter of Credit issued thereby to be cancelled. Upon the prepayment of
all amounts owing to any Terminated Lender and the termination of such Terminated Lender’s
Revolving Commitments, if any, such Terminated Lender shall no longer constitute a “Lender” for
purposes hereof; provided, any rights of such Terminated Lender to indemnification
hereunder shall survive as to such Terminated Lender.

     2.24. Incremental Facilities. (a) Company may by written notice to Administrative Agent elect to request (i) prior to (x)
the 2012 Revolving Commitment Termination Date, an increase to the 2012 Revolving Commitments
and/or (y) the 2015 Revolving Commitment Termination Date, an increase to the 2015 Revolving
Commitments (any such increase in clause (x) or (y), the “New Revolving Loan Commitments”) and/or
(ii) the establishment of one or more new term loan commitments (the “New Term Loan Commitments”),
by an amount not in excess of $400,000,000 in the aggregate for all such New Revolving Loan
Commitments and New Term Loan Commitments and not less than $50,000,000 individually (or such
lesser amount which shall be approved by Administrative Agent or such lesser amount that shall
constitute the difference between $400,000,000 and all such New Revolving Loan Commitments and New
Term Loan Commitments obtained prior to such date), and integral multiples of $10,000,000 in excess
of that amount. Each such notice shall specify (A) the date (each, an “Increased Amount Date”) on
which Company proposes that the New Revolving Loan Commitments or New Term Loan

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Commitments, as
applicable, shall be effective, which shall be a date not less than 10 Business Days after the date
on which such notice is delivered to Administrative Agent and (B) the identity of each Lender or
other Person that is an Eligible Assignee (each, a “New Revolving Loan Lender” or “New Term Loan
Lender”, as applicable) to whom Company proposes any portion of such New Revolving Loan Commitments
or New Term Loan Commitments, as applicable, be allocated and the amounts of such allocations;
provided that any Lender approached to provide all or a portion of the New Revolving Loan
Commitments or New Term Loan Commitments may elect or decline, in its sole discretion, to provide a
New Revolving Loan Commitment or a New Term Loan Commitment. Such New Revolving Loan Commitments
or New Term Loan Commitments shall become effective, as of such Increased Amount Date;
provided that (1) no Default or Event of Default shall exist on such Increased Amount Date
before or after giving effect to such New Revolving Loan Commitments or New
Term Loan Commitments, as applicable; (2) both before and after giving effect to the making of
any Series of New Term Loans, each of the conditions set forth in Section 3.2 shall be satisfied;
(3) Borrower and its Subsidiaries shall be in pro forma compliance with each of the covenants set
forth in Section 6.10 as of the last day of the most recently ended Fiscal Quarter after giving
effect to such New Revolving Loan Commitments or New Term Loan Commitments, as applicable; (4) the
New Revolving Loan Commitments or New Term Loan Commitments, as applicable, shall be effected
pursuant to one or more Joinder Agreements executed and delivered by Borrowers, the New Revolving
Loan Lender or New Term Loan Lender, as applicable, and Administrative Agent, and each of which
shall be recorded in the Register and each New Revolving Loan Lender and New Term Loan Lender shall
be subject to the requirements set forth in Section 2.20(c); (5) Borrowers shall make any payments
required pursuant to Section 2.18(c) in connection with the New Revolving Loan Commitments or New
Term Loan Commitments, as applicable; and (6) Borrowers shall deliver or cause to be delivered any
legal opinions or other documents reasonably requested by Administrative Agent in connection with
any such transaction. Any New Term Loans made on an Increased Amount Date shall be designated a
separate series (a “Series”) of New Term Loans for all purposes of this Agreement.

          (b) On any Increased Amount Date on which New Revolving Loan Commitments are effected,
subject to the satisfaction of the foregoing terms and conditions, (i) each of the Revolving
Lenders shall assign to each of the New Revolving Loan Lenders, and each of the New Revolving Loan
Lenders shall purchase from each of the Revolving Lenders, at the principal amount thereof
(together with accrued interest), such interests in the Revolving Loans outstanding on such
Increased Amount Date as shall be necessary in order that, after giving effect to all such
assignments and purchases, such Revolving Loans will be held by existing Revolving Loan Lenders and
New Revolving Loan Lenders ratably in accordance with their Revolving Loan Commitments after giving
effect to the addition of such New Revolving Loan Commitments to the Revolving Loan Commitments,
(ii) each New Revolving Loan Commitment shall be deemed for all purposes a Revolving Loan
Commitment and each Loan made thereunder (a “New Revolving Loan”) shall be deemed, for all
purposes, a Revolving Loan and either a 2012 Revolving Loan or 2015 Revolving Loan and (c) each New
Revolving Loan Lender shall become a Lender with respect to the New Revolving Loan Commitment and
all matters relating thereto.

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

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          (d) Administrative Agent shall notify Lenders promptly upon receipt of Company’s notice of
each Increased Amount Date and in respect thereof (y) the New Revolving Loan Commitments and the
New Revolving Loan Lenders or the Series of New Term Loan Commitments and the New Term Loan Lenders
of such Series, as applicable, and (z) in the case of each notice to any Revolving Lender, the
respective interests in such Revolving Lender’s Revolving Loans, in each case subject to the
assignments contemplated by this Section.

          (e) The terms and provisions of the New Term Loans and New Term Loan Commitments of any
Series shall be, except as otherwise set forth herein or in the Joinder Agreement, identical to the
Tranche C-2 Term Loans. The terms and provisions of the New Revolving Loans shall be identical to
the 2015 Revolving Loans. In any event (i) the applicable New Term Loan Maturity Date of each
Series shall be no shorter than the final maturity of the Tranche C-2 Term Loans, and (ii) the rate
of interest applicable to the New Term Loans of each Series shall be determined by Company and the
applicable new Lenders and shall be set forth in each applicable Joinder Agreement. Each Joinder
Agreement may, without the consent of any other Lenders, effect such amendments to this Agreement
and the other Credit Documents as may be necessary or appropriate, in the opinion of the
Administrative Agent to effect the provision of this Section 2.24.

     2.25.
Designated Subsidiary Borrowers. (a) Company may from time to time designate any Qualified Subsidiary as an additional
Designated Subsidiary Borrower for purposes of this Agreement by delivering to Administrative Agent
an Election to Participate duly executed on behalf of such Subsidiary and Company in such number of
copies as Administrative Agent may request. Administrative Agent shall promptly notify Lenders of
its receipt of any such Election to Participate.

          (b) Company may at any time terminate the status of any Subsidiary as a Designated
Subsidiary Borrower for purposes of this Agreement by delivering to Administrative Agent an
Election to Terminate duly executed on behalf of such Subsidiary and Company in such number of
copies as Administrative Agent may request. The delivery of such an Election to Terminate shall
not affect any obligation of such Subsidiary theretofore incurred under this Agreement or any other
Credit Document or any rights of Lenders and Agents against such Subsidiary or against Company in
its capacity as guarantor of the obligations of such Subsidiary. Administrative Agent shall
promptly notify Lenders of its receipt of any such Election to Terminate.

     2.26.
Joint and Several Liability. (a) Joint and Several Liability. All Obligations of Borrowers under this Agreement
and the other Credit Documents shall be joint and several Obligations of each Borrower. Anything
contained in this Agreement and the other Credit Documents to the contrary notwithstanding, the
Obligations of each Borrower hereunder shall be limited to a maximum aggregate amount equal to the
largest amount that would not render its Obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under §548 of the Bankruptcy Code, 11 U.S.C. §548, or any applicable
provisions of comparable state law (collectively, the “Fraudulent Transfer Laws”), in each case
after giving effect to all other liabilities of such Borrower, contingent or otherwise, that are
relevant under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of
such Borrower in respect of intercompany Indebtedness to any other Credit Party or Affiliates of
any other Credit Party to the

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extent that such Indebtedness would be discharged in an amount equal
to the amount paid by such Credit Party hereunder) and after giving effect as assets to the value
(as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to
subrogation or contribution of such Borrower pursuant to (i) applicable law or (ii) any agreement
providing for an equitable
allocation among such Borrower and other Affiliates of any Credit Party of Obligations arising
under Guaranties by such parties.

          (b) Subrogation. Until the Obligations shall have been paid in full in Cash, each
Borrower shall withhold exercise of any right of subrogation, contribution or any other right to
enforce any remedy which it now has or may hereafter have against any other Borrower or any other
guarantor of the Obligations. Each Borrower further agrees that, to the extent the waiver of its
rights of subrogation, contribution and remedies as set forth herein is found by a court of
competent jurisdiction to be void or voidable for any reason, any such rights such Borrower may
have against any other Borrower, any collateral or security or any such other guarantor, shall be
junior and subordinate to any rights Collateral Agent may have against any such other Borrower, any
such collateral or security, and any such other guarantor. Borrowers under this Agreement and the
other Credit Documents together desire to allocate among themselves, in a fair and equitable
manner, their Obligations arising under this Agreement and the other Credit Documents.
Accordingly, in the event any payment or distribution is made on any date by any Borrower under
this Agreement and the other Credit Documents (a “Funding Borrower”) that exceeds its Obligation
Fair Share (as defined below) as of such date, that Funding Borrower shall be entitled to a
contribution from each of the other Borrowers in the amount of such other Borrowers’ Obligation
Fair Share Shortfall (as defined below) as of such date, with the result that all such
contributions will cause each Borrowers’ Obligation Aggregate Payments (as defined below) to equal
its Obligation Fair Share as of such date. “Obligation Fair Share” means, with respect to a
Borrower as of any date of determination, an amount equal to (i) the ratio of (x) the Obligation
Fair Share Contribution Amount (as defined below) with respect to such Borrower to (y) the
aggregate of the Obligation Share Contribution Amounts with respect to all Borrowers, multiplied by
(ii) the aggregate amount paid or distributed on or before such date by all Funding Borrowers under
this Agreement and the other Credit Documents in respect of the Obligations guarantied.
“Obligation Fair Share Shortfall” means, with respect to a Borrower as of any date of
determination, the excess, if any, of the Obligation Fair Share of such Borrower over the
Obligation Aggregate Payments of such Borrower. “Obligation Fair Share Contribution Amount” means,
with respect to a Borrower as of any date of determination, the maximum aggregate amount of the
Obligations of such Borrower under this Agreement and the other Credit Documents that would not
render its Obligations hereunder or thereunder subject to avoidance as a fraudulent transfer or
conveyance under Section 548 of Title 11 of the United States Code or any comparable applicable
provisions of state law; provided that, solely for purposes of calculating the “Obligation Fair
Share Contribution Amount” with respect to any Borrower for purposes of this Section 2.26, any
assets or liabilities of such Credit Party arising by virtue of any rights to subrogation,
reimbursement or indemnification or any rights to or Obligations of contribution hereunder shall
not be considered as assets or liabilities of such Borrower. “Obligation Aggregate Payments”
means, with respect to a Borrower as of any date of determination, an amount equal to (A) the
aggregate amount of all payments and distributions made on or before such date by such Borrower in
respect of this Agreement and the other Credit Documents (including in respect of this Section 2.26
minus (B) the aggregate amount of all payments received on or before such date by such
Borrower from the other Borrowers as

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contributions under this Section 2.26. The amounts payable as
contributions hereunder shall be determined as of the date on which the related payment or
distribution is made by the applicable Funding Borrower. The allocation among Borrowers of their
Obligations as set forth in this
Section 2.26 shall not be construed in any way to limit the liability of any Borrower
hereunder or under any Credit Document.

SECTION 3. CONDITIONS PRECEDENT

     3.1. Effective Date.

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

          (a) Credit Documents. Administrative Agent shall have received this Agreement,
executed and delivered by a duly authorized officer of each Borrower, Holdings and each other
Guarantor as of the Effective Date.

          (b) Organization Documents; Incumbency. Administrative Agent shall have received
(i) copies of each Organization Document executed and delivered by Company; (ii) signature and
incumbency certificates of the officers of each Credit Party executing the Credit Documents to
which it is a party; (iii) resolutions of the Board of Directors or similar governing body of
Company approving and authorizing the execution, delivery and performance of this Agreement and the
other Credit Documents to which it is a party or by which it or its assets may be bound as of the
Effective Date, certified as of the Effective Date by its secretary or an assistant secretary as
being in full force and effect without modification or amendment; and (iv) a good standing
certificate from the applicable Governmental Authority of Company’s jurisdiction of incorporation,
organization or formation dated a recent date prior to the Effective Date; provided that,
in lieu of delivery of each of the documents or resolutions set forth in this Section 3.1(b),
Company may deliver a certificate executed by the President or any Vice President of Company
certifying that there have been no material amendments to those documents or resolutions previously
delivered to the Administrative Agent on the Closing Date pursuant to Section 3.1(c) of the
Original Credit Agreement.

          (c) Consent. Administrative Agent shall have received:

          (i) written consents from the Lenders (as defined in the Original Credit Agreement)
which constitute Requisite Lenders (as defined in the Original Credit Agreement) under the
Original Credit Agreement to the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby (it being agreed that the entering into
this Agreement or a Lender Consent Letter by a Lender shall constitute such written
consent); and

          (ii) reasonably satisfactory evidence that the outstanding principal amount of all
Original Term Loans shall have been paid in full with the proceeds of the Tranche C Term
Loans or by Company;

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          (d) Payment of Fees and Expenses. Company shall have paid all accrued reasonable
fees and expenses of Administrative Agent, Arrangers and Lenders for which invoices have been
presented (including the fees and expenses of counsel for Administrative
Agent and the local counsel for Lenders and those fees payable on the Effective Date referred
to in Section 2.11(d)).

          (e) Opinions of Counsel to Credit Parties. Lenders and their respective counsel
shall have received originally executed copies of the favorable written opinions of (i) Simpson
Thacher & Bartlett LLP, special counsel for Credit Parties and (ii) J. Devitt Kramer, in-house
counsel for Company, each in the form of Exhibit D and as to such other matters as Administrative
Agent may reasonably request, dated as of the Effective Date and otherwise in form and substance
reasonably satisfactory to Administrative Agent (and each Credit Party hereby instructs each such
counsel to deliver such opinions to Agents and Lenders).

          (f) Effective Date Certificate. Holdings and Company shall have delivered to
Administrative Agent an originally executed Effective Date Certificate, together with all
attachments thereto.

The Effective Date occurred on February 13, 2007.

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

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

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

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

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

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

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

     3.3. Conditions to Effectiveness of this Agreement.

     The conditions to the effectiveness of the amendment and restatement of the Existing ARCA in
the form of this Agreement are set forth in Section 6 of the Amendment and Restatement Agreement.

SECTION 4. REPRESENTATIONS AND WARRANTIES

Holdings and Company represent and warrant to Agents and Lenders that:

     4.1.
Existence, Qualification and Power; Compliance with Laws. Each Credit Party and each of its Subsidiaries (a) is a Person duly organized or formed,
validly existing and in good standing under the Laws of the jurisdiction of its incorporation or
organization as identified in Schedule 4.1, (b) has all requisite power and authority to (i) own or
lease its assets and carry on its business and (ii) execute, deliver and perform its obligations
under the Credit Documents to which it is a party, (c) is duly qualified and in good standing under
the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct
of its business requires such qualification, (d) is in compliance with all Laws, orders, writs,
injunctions and orders and (e) has all requisite governmental licenses, authorizations, consents
and approvals to operate its business as currently conducted; except in each case referred to in
clause (c), (d) or (e), to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

     4.2.
Authorization; No Contravention. The execution, delivery and performance by each Credit Party of each Credit Document to which
such Person is a party, and the consummation of the Transaction, are within such Credit Party’s
corporate or other powers, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any of such Person’s
Organization Documents, (b) conflict with or result in any breach or contravention of, or the
creation of any Lien under (other than as permitted by Section 6.1), or require any payment to be
made under (i) any Contractual Obligation to which such Person is a party or affecting such Person
or the properties of such Person or any of its Subsidiaries or (ii) any material order, injunction,
writ or decree of any Governmental Authority or any arbitral award to which such
Person or its property is subject or (c) violate any material Law; except with respect to any
conflict, breach or contravention or payment (but not creation of Liens) referred to in clause
(b)(i), to the extent that such conflict,

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breach, contravention or payment could not reasonably be
expected to have a Material Adverse Effect.

     4.3. Governmental Authorization; Other Consents. No material approval, consent, exemption, authorization, or other action by, or notice to, or
filing with, any Governmental Authority or any other Person is necessary or required in connection
with (a) the execution, delivery or performance by, or enforcement against, any Credit Party of
this Agreement or any other Credit Document, or for the consummation of the Transaction, (b) the
grant by any Credit Party of the Liens granted by it pursuant to the Collateral Documents, (c) the
perfection or maintenance of the Liens created under the Collateral Documents (including the
priority thereof) or (d) the exercise by the Administrative Agent or any Lender of its rights under
the Credit Documents or the remedies in respect of the Collateral pursuant to the Collateral
Documents, except for (i) filings necessary to perfect the Liens on the Collateral granted by the
Credit Parties in favor of the Secured Parties, (ii) the approvals, consents, exemptions,
authorizations, actions, notices and filings which have been duly obtained, taken, given or made
and are in full force and effect and (iii) those approvals, consents, exemptions, authorizations or
other actions, notices or filings, the failure of which to obtain or make could not reasonably be
expected to have a Material Adverse Effect.

     4.4. Binding Effect. This Agreement and each other Credit Document has been duly executed and delivered by each
Credit Party that is party thereto. This Agreement and each other Credit Document constitutes, a
legal, valid and binding obligation of such Credit Party, enforceable against each Credit Party
that is party thereto in accordance with its terms, except as such enforceability may be limited by
Debtor Relief Laws and by general principles of equity.

     4.5.
Financial Statements; No Material Adverse Effect. (a) (i) The Historical Financial Statements fairly present in all material respects the
financial condition of Education Management and its Subsidiaries as of the dates thereof and their
results of operations for the period covered thereby in accordance with GAAP consistently applied
throughout the periods covered thereby, except as otherwise expressly noted therein. During the
period from June 30, 2005 to and including the Closing Date (but prior to giving effect to the
Transaction), there has been (i) no sale, transfer or other disposition by Education Management or
any of its Subsidiaries of any material part of the business or property of Education Management or
any of its Subsidiaries, taken as a whole and (ii) no purchase or other acquisition by Education
Management or any of its Subsidiaries of any business or property (including any Equity Interests
of any other Person) material in relation to the consolidated financial condition of Education
Management and its Subsidiaries, in each case, which is not reflected in the foregoing financial
statements or in the notes thereto or has not otherwise been disclosed in writing to the Lenders
prior to the Closing Date.

          (ii) The unaudited pro forma consolidated balance sheet of Company and its
Subsidiaries as at March 31, 2006 (including the notes thereto) (the “Pro Forma Balance
Sheet”) and the unaudited pro forma consolidated statement of operations of Holdings and its
Subsidiaries for the most recent fiscal year, the 9-month period ending on March 31, 2006
and the 12-month period ending on March 31, 2006 (together with the Pro Forma Balance Sheet,
the “Pro Forma Financial Statements”), copies of which have heretofore been furnished to
each Lender prior to the Closing Date, have been

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prepared giving effect (as if such events
had occurred on such date or at the beginning of such periods, as the case may be) to the
Transaction, each material acquisition by Education Management or any of its Subsidiaries
consummated after March 31, 2006 and prior to the Closing Date and all other transactions
that would be required to be given pro forma effect by Regulation S-X promulgated under the
Exchange Act (including other adjustments as otherwise agreed between Company and
Arrangers). The Pro Forma Financial Statements have been prepared in good faith, based on
assumptions believed by Company to be reasonable as of the date of delivery thereof, and
present fairly in all material respects on a pro forma basis and in accordance with GAAP the
estimated financial position of Holdings and its Subsidiaries as at March 31, 2006 and their
estimated results of operations for the periods covered thereby, assuming that the events
specified in the preceding sentence had actually occurred at such date or at the beginning
of the periods covered thereby.

          (b) Since June 30, 2005, there has been no event or circumstance, either individually or in
the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.

          (c) The forecasts of consolidated balance sheets, income statements and cash flow statements
of Holdings and its Subsidiaries for each fiscal year ending after the Closing Date until the
seventh anniversary of the Closing Date (the “Forecasts”), copies of which have been furnished to
Administrative Agent prior to the Closing Date in a form reasonably satisfactory to it, have been
prepared in good faith on the basis of the assumptions stated therein, which assumptions were
believed to be reasonable at the time of preparation of such forecasts, it being understood that
actual results may vary from such forecasts and that such variations may be material.

     4.6. Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of
Holdings or any Borrower, threatened in writing or contemplated, at law, in equity, in arbitration
or before any Governmental Authority, by or against Holdings or any of its Subsidiaries or against
any of their properties or revenues that either individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect.

     4.7. No Default. Neither Holdings nor any of its Subsidiaries is in default under or with respect to, or a
party to, any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     4.8. Ownership of Property; Liens. Each Credit Party and each of its Subsidiaries has good and legal title in fee simple to, or
valid leasehold interests in, or easements or other limited property interests in, all real
property necessary in the ordinary conduct of its business, free and clear of all Liens except for
minor defects in title that do not materially interfere with its ability to conduct its business or
to utilize such assets for their intended purposes and Liens permitted by Section 6.1 and except
where the failure to have such title could not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect.

     4.9.
Environmental Compliance. (a) There are no claims, actions, suits, or proceedings alleging potential liability or
responsibility for violation of, or otherwise relating to, any

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Environmental Law that could,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

          (b) Except as specifically disclosed in Schedule 4.9(b) or except as could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, (i) none of the
properties currently or formerly owned, leased or operated by any Credit Party or any of its
Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous
foreign, state or local list or is adjacent to any such property; (ii) there are no and never have
been any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits,
sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on
any property currently owned, leased or operated by any Credit Party or any of its Subsidiaries or,
to its knowledge, on any property formerly owned or operated by any Credit Party or any of its
Subsidiaries; (iii) there is no asbestos or asbestos-containing material on any property currently
owned or operated by any Credit Party or any of its Subsidiaries; and (iv) Hazardous Materials have
not been released, discharged or disposed of by any Person on any property currently or formerly
owned, leased or operated by any Credit Party or any of its Subsidiaries and Hazardous Materials
have not otherwise been released, discharged or disposed of by any of the Credit Parties and their
Subsidiaries at any other location.

          (c) The properties owned, leased or operated by Holdings and its Subsidiaries do not contain
any Hazardous Materials in amounts or concentrations which (i) constitute, or constituted a
violation of, (ii) require remedial action under, or (iii) could give rise to liability under,
Environmental Laws, which violations, remedial actions and liabilities, individually or in the
aggregate, could reasonably be expected to result in a Material Adverse Effect.

          (d) Except as specifically disclosed in Schedule 4.9(d), neither Holdings nor any of its
Subsidiaries is undertaking, and has not completed, either individually or together with other
potentially responsible parties, any investigation or assessment or remedial or response action
relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any
site, location or operation, either voluntarily or pursuant to the order of any Governmental
Authority or the requirements of any Environmental Law except for such investigation or assessment
or remedial or response action that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

          (e) All Hazardous Materials generated, used, treated, handled or stored at, or
transported to or from, any property currently or formerly owned or operated by any Credit Party or
any of its Subsidiaries have been disposed of in a manner not reasonably expected to result,
individually or in the aggregate, in a Material Adverse Effect.

          (f) Except as would not reasonably be expected to result, individually or in the aggregate,
in a Material Adverse Effect, none of the Credit Parties and their Subsidiaries has contractually
assumed any liability or obligation under or relating to any Environmental Law.

     4.10. Taxes. Except as set forth in Schedule 4.10, Holdings and its Subsidiaries have filed all
material Federal, state and other tax returns and reports required to be filed, and have paid all
material Federal, state and other taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and payable,

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except those (a) which are not overdue by more than thirty (30) days or (b) which are being
contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP.

     4.11. ERISA Compliance. (a) Except as set forth in Schedule 4.11(a) or as could not, either
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect,
each Plan is in compliance in with the applicable provisions of ERISA, the Internal Revenue Code
and other Federal or state Laws.

          (b) (i) No ERISA Event has occurred during the five year period prior to the date on which
this representation is made or deemed made with respect to any Pension Plan; (ii) no Pension Plan
has an “accumulated funding deficiency” (as defined in Section 412 of the Internal Revenue Code),
whether or not waived; (iii) neither any Credit Party nor any ERISA Affiliate has incurred, or
reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan
(other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither any Credit
Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no
event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in
such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and
(v) neither any Credit Party nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA, except, with respect to each of the foregoing clauses
of this Section 4.11(b), as could not reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect.

     4.12. Subsidiaries; Equity Interests. As of the Effective Date, no Credit Party has any
Subsidiaries other than those specifically disclosed in Schedule 4.12, and all of the outstanding
Equity Interests in material Subsidiaries have been validly issued, are fully paid and
nonassessable and all Equity Interests owned by a Credit Party are owned free and clear of all
Liens except (i) those created under the Collateral Documents and (ii) any nonconsensual Lien that
is permitted under Section 6.1. As of the Second ARCA Effective Date, Schedule 4.12 (a) sets forth
the name and jurisdiction of each Subsidiary, (b) sets forth the ownership interest of Holdings,
Company and any other Subsidiary thereof in each Subsidiary, including the percentage of such
ownership and (c) identifies each Subsidiary that is a Subsidiary the Equity Interests of which are
required to be pledged on the Effective Date pursuant to Original Section 3.1(h).

     4.13. Margin Regulations; Investment Company Act. (a) No Borrower is engaged nor will it
engage, principally or as one of its important activities, in the business of purchasing or
carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock,
and no proceeds of any Loans or drawings under any Letter of Credit will be used for any purpose
that violates Regulation U of the Board of Governors.

          (b) None of Holdings, any Person Controlling Holdings, or any Subsidiary Holdings is or is
required to be registered as an “investment company” under the Investment Company Act of 1940.

     4.14. Disclosure. No report, financial statement, certificate or other written information
furnished by or on behalf of any Credit Party to any Agent or any Lender in connection with the

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transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder
or any other Credit Document (as modified or supplemented by other information so furnished) when
taken as a whole 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 materially misleading; provided that, with respect to projected financial
information and pro forma financial information, Holdings and Company represent only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the time
of preparation; it being understood that such projections may vary from actual results and that
such variances may be material.

     4.15. Intellectual Property; Licenses, Etc. Each of the Credit Parties and their Subsidiaries
own, license or possess the right to use, all of the trademarks, service marks, trade names, domain
names, copyrights, patents, licenses, technology, software, know-how database rights, design rights
and other intellectual property rights (collectively, “IP Rights”) that are reasonably necessary
for the operation of their respective businesses as currently conducted, and, without conflict with
the rights of any Person, except to the extent such conflicts, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect. To the knowledge of
any Borrower, no IP Rights used by any Credit Party or any Subsidiary thereof in the operation of
their respective businesses as currently conducted infringes upon any intellectual property rights
held by any Person except for such infringements, individually or in the aggregate, which could not
reasonably be expected to have a Material Adverse Effect. No claim or litigation regarding any of
the IP Rights, is pending or, to the knowledge of any Borrower, threatened against any Credit Party
or Subsidiary thereof, which, either individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

     4.16. Solvency. On the Second ARCA Effective Date after giving effect to the transactions
contemplated hereby, the Credit Parties, on a consolidated basis, are Solvent.

     4.17. Subordination of Junior Financing. The Obligations are “Senior Debt,” “Senior
Indebtedness,” “Guarantor Senior Debt” or “Senior Secured Financing” (or any comparable term)
under, and as defined in, any Junior Financing Documentation.

     4.18. Labor Matters.

     Except as, in the aggregate, could not reasonably be expected to have a Material Adverse
Effect: (a) there are no strikes or other labor disputes against any of Holdings, Company or its
Subsidiaries pending or, to the knowledge of Holdings or Company, threatened; (b) hours worked by
and payment made to employees of each of Holdings, Company or its Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Laws dealing with such matters;
and (c) all payments due from any of Holdings, Company or its Subsidiaries on account of employee
health and welfare insurance have been paid or accrued as a liability on the books of the relevant
party.

     4.19. Collateral Documents.

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     The provisions of the Collateral Documents are effective to create in favor of Collateral
Agent for the benefit of the Secured Parties a legal, valid and enforceable first priority Lien
(subject to Liens permitted by Section 6.01) on all right, title and interest of the respective
Credit Parties in the Collateral described therein. Except for filings completed prior to the
Effective Date and as contemplated hereby and by the Collateral Documents, no filing or other
action will be necessary to perfect or protect such Liens.

     4.20. Patriot Act.

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

SECTION 5. AFFIRMATIVE COVENANTS

   So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder which is accrued and payable shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, each of Holdings and Company shall, and shall (except in the case of the
covenants set forth in Sections 5.1, 5.2 and 5.3) cause each Subsidiary to:

     5.1. Financial Statements. Deliver to the Administrative Agent for prompt further distribution
to each Lender:

          (a) as soon as available, but in any event within ninety (90) days after the end of each
Fiscal Year (beginning with the Fiscal Year ending on June 30, 2007), (i) a consolidated balance
sheet of Holdings and its Subsidiaries as at the end of such fiscal year, and the related
consolidated statements of income or operations, stockholders’ equity and cash flows for such
fiscal year setting forth in each case in comparative form the figures for the previous fiscal
year, all in reasonable detail and prepared in accordance with GAAP; and (ii) with respect to such
consolidated financial statements, audited and accompanied by a report and opinion of Ernst & Young
LLP or any other independent registered public accounting firm of nationally recognized standing,
which report and opinion shall be prepared in accordance with generally accepted auditing standards
and shall not be subject to a “going concern” emphasis paragraph or a qualification or disclaimer
related to generally accepted accounting principles or generally accepted auditing standards or
other material qualification or exception (provided that a paragraph in the audit report
emphasizing a change in accounting as the result of new accounting rules promulgated by regulatory
bodies such as the Financial Accounting Standards Board, the SEC or the American Institute of
Certified Public Accountants shall be permitted);

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          (b) as soon as available, but in any event within forty-five (45) days after the end of each
of the first three (3) Fiscal Quarters of each Fiscal Year (beginning with the Fiscal Quarter
ending on December 31, 2006), a consolidated balance sheet of Holdings and its Subsidiaries as at
the end of such fiscal quarter, and the related (i) consolidated statements of income or operations
for such fiscal quarter and for the portion of the fiscal year then ended and (ii) consolidated
statements of cash flows for the portion of the fiscal year then ended, setting forth in each case
in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year,
all in reasonable detail and certified by a Responsible Officer of Company as fairly presenting in
all material respects the financial condition, results of operations, stockholders’ equity and cash
flows of Holdings and its Subsidiaries in accordance with GAAP, subject only to audit and normal
year-end adjustments and the absence of footnotes;

          (c) as soon as available, and in any event no later than sixty (60) days after the end of each
Fiscal Year, a detailed consolidated budget for the following fiscal year (including a projected
consolidated balance sheet of Holdings and its Subsidiaries as of the end of the following fiscal
year, the related consolidated statements of projected cash flow and projected income and a summary
of the material underlying assumptions applicable thereto), and, as soon as available, significant
revisions, if any, of such budget and projections with respect to such fiscal year (collectively,
the “Projections”), which Projections shall in each case be accompanied by a certificate of a
Responsible Officer stating that such Projections are based on reasonable estimates, information
and assumptions and that such Responsible Officer has no reason to believe that such Projections
are incorrect or misleading in any material respect; and

          (d) simultaneously with the delivery of each set of consolidated financial statements referred
to in Sections 5.1(a) and 5.1(b) above, the related consolidating financial statements reflecting
the adjustments necessary to eliminate the accounts of Subsidiaries (if any) from such consolidated
financial statements.

Notwithstanding the foregoing, the obligations in paragraphs (a) and (b) of this Section 5.1 may be
satisfied with respect to financial information of Holdings and its Subsidiaries by furnishing (A)
the applicable financial statements of any direct or indirect parent of Holdings or (B) Company’s
or Holdings’ (or any direct or indirect parent thereof), as applicable, Form 10-K or 10-Q, as
applicable, filed with the SEC; provided that, with respect to each of clauses (A) and (B),
(1) to the extent such information relates to a parent of Holdings, such information is accompanied
by consolidating information that explains in reasonable detail the differences between the
information relating to such parent, on the one hand, and the information relating to Holdings and
its Subsidiaries on a standalone basis, on the other hand and (2) to the extent such information is
in lieu of information required to be provided under Section 5.1(a), such materials are accompanied
by a report and opinion of Ernst & Young LLP or any other independent registered public accounting
firm of nationally recognized standing, which report and opinion shall be prepared in accordance
with generally accepted auditing standards and shall not be subject to a “going concern” emphasis
paragraph or a qualification or disclaimer related to generally accepted accounting principles or
generally accepted auditing standards or other material qualification or exception
(provided that a paragraph in the audit report emphasizing a change in accounting as the
result of new accounting rules promulgated by regulatory bodies such as the Financial Accounting
Standards Board, the SEC or the American Institute of Certified Public Accountants shall be
permitted).

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     5.2. Certificates; Other Information. Deliver to the Administrative Agent for prompt further
distribution to each Lender:

          (a) no later than five (5) days after the delivery of the financial statements referred to in
Section 5.1(a), a certificate of its independent registered public accounting firm certifying such
financial statements and stating that in making the examination necessary therefor no knowledge was
obtained of any Event of Default under Section 6.10 or, if any such Event of Default shall exist,
stating the nature and status of such event;

          (b) no later than five (5) days after the delivery of the financial statements referred to in
Section 5.1(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer of
Company and, if such Compliance Certificate demonstrates an Event of Default of any covenant under
Section 6.10, any of the Equity Investors may deliver, together with such Compliance Certificate,
notice of their intent to cure (a “Notice of Intent to Cure”) such Event of Default pursuant to
Section 8.3; provided that the delivery of a Notice of Intent to Cure shall in no way
affect or alter the occurrence, existence or continuation of any such Event of Default or the
rights, benefits, powers and remedies of Administrative Agent and the Lenders under any Credit
Document;

          (c) promptly after the same are publicly available, copies of all annual, regular, periodic
and special reports and registration statements which Holdings or Company files with the SEC or
with any Governmental Authority that may be substituted therefor (other than amendments to any
registration statement (to the extent such registration statement, in the form it became effective,
is delivered), exhibits to any registration statement and, if applicable, any registration
statement on Form S-8) and in any case not otherwise required to be delivered to Administrative
Agent pursuant hereto;

          (d) promptly after the furnishing thereof, copies of any material requests or material notices
received by any Credit Party (other than in the ordinary course of business) or material statements
or material reports furnished to any holder of debt securities of any Credit Party or of any of its
Subsidiaries pursuant to the terms of any New Notes Documentation or Junior Financing Documentation
in a principal amount greater than the Threshold Amount and not otherwise required to be furnished
to Lenders pursuant to any other clause of this Section 5.2;

          (e) together with the delivery of each Compliance Certificate pursuant to Section 5.2(b),
(i) a certificate of a Responsible Officer of Company either confirming that there has been no
change in such information since the date of the Perfection Certificate delivered on the Closing
Date or the date of the most recent certificate delivered pursuant to this Section and/or
identifying such changes and (ii) a description of each event, condition or circumstance during the
last fiscal quarter covered by such Compliance Certificate requiring a mandatory prepayment under
Section 2.14;

          (f) promptly furnish to Collateral Agent written notice of any change (i) in any Credit
Party’s corporate name or (ii) in any Credit Party’s jurisdiction of organization. Company agrees
not to effect or permit any change referred to in the preceding sentence unless all filings have
been made under the Uniform Commercial Code or otherwise that are required in order for

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Collateral Agent to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral as contemplated in the Collateral Documents; and

          (g) promptly, such additional information regarding the business, legal, financial or
corporate affairs of any Credit Party or any Subsidiary, or compliance with the terms of the Credit
Documents, as the Administrative Agent or any Lender through the Administrative Agent may from time
to time reasonably request.

          Documents required to be delivered pursuant to Section 5.1(a) or (b) or Section 5.2(d) (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (A) on which
Company posts such documents, or provides a link thereto on Company’s website on the Internet at
the website address listed on Appendix B; or (B) on which such documents are posted on Company’s
behalf on IntraLinks/IntraAgency or another relevant website, if any, to which each Lender and
Administrative Agent have access (whether a commercial, third-party website or whether sponsored by
Administrative Agent); provided that: (1) upon written request by Administrative Agent,
Company shall deliver paper copies of such documents to Administrative Agent for further
distribution to each Lender until a written request to cease delivering paper copies is given by
Administrative Agent and (2) Company shall notify (which may be by facsimile or electronic mail)
Administrative Agent of the posting of any such documents and provide to Administrative Agent by
electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding
anything contained herein, in every instance Company shall be required to provide paper copies of
the Compliance Certificates required by Section 5.2(b) to Administrative Agent. Each Lender shall
be solely responsible for timely accessing posted documents or requesting delivery of paper copies
of such documents from Administrative Agent and maintaining its copies of such documents.

     5.3. Notices. Promptly after obtaining knowledge thereof, notify Administrative Agent:

          (a) of the occurrence of any Default; and

          (b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect, including arising out of or resulting from (i) breach or non-performance of, or any
default or event of default under, a Contractual Obligation of any Credit Party or any Subsidiary,
(ii) any dispute, litigation, investigation, proceeding or suspension between any Credit Party or
any Subsidiary and any Governmental Authority, (iii) the commencement of, or any material
development in, any litigation or proceeding affecting any Credit Party or any Subsidiary,
including pursuant to any applicable Environmental Laws or Education Laws or the assertion or
occurrence of any noncompliance by any Credit Party or as any of its Subsidiaries with, or
liability under, any Environmental Law or Environmental Permit or any Education Law, or (iv) the
occurrence of any ERISA Event.

          Each notice pursuant to this Section shall be accompanied by a written statement of a
Responsible Officer of Company (x) that such notice is being delivered pursuant to Section 5.3(a)
or (b) (as applicable) and (y) setting forth details of the occurrence referred to therein and
stating what action Company has taken and proposes to take with respect thereto.

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     5.4. Payment of Obligations. Pay, discharge or otherwise satisfy as the same shall become due
and payable, all its material obligations and liabilities in respect of taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or in respect of its
property.

     5.5. Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and effect
its legal existence under the Laws of the jurisdiction of its organization except in a transaction
permitted by Section 6.4 or 6.5 and (b) take all reasonable action to maintain all rights,
privileges (including its good standing), permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except (i) to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect or (ii) pursuant to a transaction
permitted by Section 6.4 or 6.5.

     5.6. Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order, repair
and condition, ordinary wear and tear excepted and casualty or condemnation excepted, and (b) make
in all material respects necessary renewals, replacements, modifications, improvements, upgrades,
extensions and additions thereof or thereto in accordance with prudent industry practice.

     5.7. Maintenance of Insurance. (a) Maintain with financially sound and reputable insurance
companies, insurance with respect to its properties and business against loss or damage of the
kinds customarily insured against by Persons engaged in the same or similar business, of such types
and in such amounts (after giving effect to any self-insurance reasonable and customary for
similarly situated Persons engaged in the same or similar businesses as Company and its
Subsidiaries) as are customarily carried under similar circumstances by such other Persons; and (b)
if requested by the Administrative Agent or any Lender through the Administrative Agent, deliver a
certificate from Company’s insurance broker(s) in form and substance satisfactory to Administrative
Agent outlining all material insurance coverage maintained as of the date of such certificate by
Holdings and its Subsidiaries to the extent not unduly burdensome for Company. Each such policy of
insurance shall (i) name Collateral Agent, on behalf of Secured Parties as an additional insured
thereunder as its interests may appear and (ii) in the case of each casualty insurance policy,
contain a loss payable clause or endorsement, satisfactory in form and substance to Collateral
Agent, that names Collateral Agent, on behalf of Lenders as the loss payee thereunder.

     5.8. Compliance with Laws. Comply in all material respects with the requirements of all Laws
and all orders, writs, injunctions and decrees applicable to it or to its business or property,
except if the failure to comply therewith could not reasonably be expected to have a Material
Adverse Effect. Without limiting the generality of the foregoing, Company will, and will cause
each Subsidiary to, comply with (i) all applicable Laws, the violation of which would terminate or
materially impair the eligibility of Company or any Subsidiary for participation, if applicable, in
student financial assistance programs under Title IV of the Higher Education Act of 1965, as
amended, 20 U.S.C.A. § 1070 et seq., where such termination or material impairment would have a
Material Adverse Effect, (ii) the federal Truth-in-Lending Act, 15 U.S.C. § 1601 et seq., and all
other consumer credit laws applicable to Company or any Subsidiary in connection with the advancing
of student loans, except for such laws and regulations the violation of which,

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in the aggregate, will not result in the assessment of penalties and damages claims against
Company or any Subsidiary where such penalties and damage claims would have a Material Adverse
Effect, (iii) all statutory and regulatory requirements for authorization to provide post-secondary
education in the jurisdictions in which its educational facilities are located, except for such
requirements the violation of which will not have a Material Adverse Effect, and (iv) if
applicable, all requirements for continuing its accreditations, except for such requirements the
violation of which would not have a Material Adverse Effect (including cases where the governing
board of the institution in good faith elected to seek or permit the termination of such
accreditation which would not have a Material Adverse Effect) (the laws, regulations and
requirements referred to in this sentence prior to giving effect to any materiality carve-outs are
collectively referred to as the “Education Laws”).

     5.9. Books and Records. Maintain proper books of record and account, in which entries that are
full, true and correct in all material respects and are in conformity with GAAP consistently
applied shall be made of all material financial transactions and matters involving the assets and
business of Holdings, Company or such Subsidiary, as the case may be.

     5.10. Inspection Rights. Permit representatives and independent contractors of Administrative
Agent and each Lender to visit and inspect any of its properties, to examine its corporate,
financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent public accountants,
all at the reasonable expense of Company and at such reasonable times during normal business hours
and as often as may be reasonably desired, upon reasonable advance notice to Company;
provided that, excluding any such visits and inspections during the continuation of an
Event of Default, only Administrative Agent on behalf of Lenders may exercise rights of
Administrative Agent and Lenders under this Section 5.10 and Administrative Agent shall not
exercise such rights more often than two (2) times during any calendar year absent the existence of
an Event of Default and only one (1) such time shall be at Company’s expense; provided
further that when an Event of Default exists, Administrative Agent or any Lender (or any of
their respective representatives or independent contractors) may do any of the foregoing at the
expense of Company at any time during normal business hours and upon reasonable advance notice.
Administrative Agent and Lenders shall give Company the opportunity to participate in any
discussions with Company’s independent public accountants.

     5.11. Compliance with Environmental Laws. Except, in each case, to the extent that the failure
to do so could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, comply, and take all reasonable actions to cause all lessees and other Persons
operating or occupying its properties to comply with all applicable Environmental Laws and
Environmental Permits; obtain and renew all Environmental Permits necessary for its operations and
properties; and, in each case to the extent required by Environmental Laws, conduct any
investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other
action necessary to remove and clean up all Hazardous Materials from any of its properties, in
accordance with the requirements of all Environmental Laws.

     5.12. Subsidiaries. In the event that any Person becomes an Included Domestic Subsidiary of
Holdings, (a) promptly cause such Included Domestic Subsidiary to become a Guarantor hereunder and
a Grantor under the Pledge and Security Agreement by executing and

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delivering to Administrative Agent and Collateral Agent a Counterpart Agreement, and (b) take
all such actions and execute and deliver, or cause to be executed and delivered, all such
documents, instruments, agreements, and certificates as are similar to those described in Sections
3.1(b) and 3.1(e) hereof and Original Sections 3.1(g) and 3.1(h). In the event that any Person
becomes a Foreign Subsidiary of Holdings, and the ownership interests of such Foreign Subsidiary
are owned by Holdings or by any Included Domestic Subsidiary thereof, Company shall, or shall cause
such Included Domestic Subsidiary to, deliver, all such documents, instruments, agreements, and
certificates as are similar to those described in Section 3.1(a), and Company shall take, or shall
cause such Included Domestic Subsidiary to take, all of the actions referred to in Original Section
3.1(h)(i) necessary to grant and to perfect a First Priority Lien in favor of Collateral Agent, for
the benefit of Secured Parties, under the Pledge and Security Agreement in 66% of such ownership
interests.

     5.13. Additional Material Real Estate Assets. In the event that any Credit Party acquires a
Material Real Estate Asset and such interest has not otherwise been made subject to the Lien of the
Collateral Documents in favor of Collateral Agent, for the benefit of Secured Parties, then such
Credit Party shall promptly take all such actions and execute and deliver, or cause to be executed
and delivered, all such mortgages, documents, instruments, agreements, opinions and certificates
similar to those described in Section 5.15 hereof and Original Sections 3.1(g) and 3.1(h) hereto
with respect to each such Material Real Estate Asset that Collateral Agent shall reasonably request
to create in favor of Collateral Agent, for the benefit of Secured Parties, a valid and, subject to
any filing and/or recording referred to herein, perfected First Priority security interest in such
Material Real Estate Assets.

     5.14. Further Assurances. At any time or from time to time upon the request of Administrative
Agent, at its expense, promptly execute, acknowledge and deliver such further documents and do such
other acts and things as Administrative Agent or Collateral Agent may reasonably request in order
to effect fully the purposes of the Credit Documents. In furtherance and not in limitation of the
foregoing, each Credit Party shall take such actions as Administrative Agent or Collateral Agent
may reasonably request from time to time to ensure that the Obligations are guarantied by the
Guarantors and are secured by substantially all of the assets of Holdings and its Subsidiaries and
all of the outstanding Equity Interests in Company and its Subsidiaries (subject to limitations
contained in the Credit Documents with respect to Excluded Subsidiaries).

     5.15. Survey of Closing Date Mortgaged Property. Within thirty (30) days after the Closing
Date, (i) deliver to Collateral Agent an ALTA survey with respect to any Closing Date Mortgaged
Property, dated not earlier than April 10, 1997, certified to Collateral Agent and the relevant
Title Company, accompanied by an “affidavit of no change” executed by the surveyor issuing such
ALTA survey or the Credit Party owning such Closing Date Mortgaged Property and dated not more than
thirty (30) days prior to the Closing Date in form and substance reasonably satisfactory to
Collateral Agent and such Title Company, and disclose only such state of facts as shall be
reasonably satisfactory to Collateral Agent, and (ii) cause such Title Company to add any
endorsements to the Title Policy as Collateral Agent may reasonably request.

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SECTION 6. NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder which is accrued and payable shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, Holdings and Company shall not, nor shall they permit any of their
Subsidiaries to, directly or indirectly:

     6.1. Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, assets
or revenues, whether now owned or hereafter acquired, other than the following:

          (a) Liens pursuant to any Credit Document;

          (b) Liens existing on the Closing Date and listed on Schedule 6.1(b) and any modifications,
replacements, renewals or extensions thereof; provided that (i) the Lien does not extend to
any additional property other than (A) after-acquired property that is affixed or incorporated into
the property covered by such Lien or financed by Indebtedness permitted under Section 6.3, and (B)
proceeds and products thereof, and (ii) the renewal, extension or refinancing of the obligations
secured or benefited by such Liens is permitted by Section 6.3;

          (c) Liens for taxes, assessments or governmental charges which are not overdue for a period of
more than thirty (30) days or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the
books of the applicable Person in accordance with GAAP;

          (d) statutory Liens of landlords, carriers, warehousemen, mechanics, materialmen, repairmen,
construction contractors or other like Liens arising in the ordinary course of business which
secure amounts not overdue for a period of more than thirty (30) days or if more than thirty (30)
days overdue, are unfiled and no other action has been taken to enforce such Lien or which are
being contested in good faith and by appropriate proceedings diligently conducted, if adequate
reserves with respect thereto are maintained on the books of the applicable Person in accordance
with GAAP;

          (e) (i) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation and (ii) pledges and
deposits in the ordinary course of business securing liability for reimbursement or indemnification
obligations of (including obligations in respect of letters of credit or bank guarantees for the
benefit of) insurance carriers providing property, casualty or liability insurance to Holdings,
Company or any Subsidiary;

          (f) deposits to secure (i) the performance of bids, trade contracts, governmental contracts
and leases (other than Indebtedness for borrowed money), statutory obligations, surety, stay,
customs and appeal bonds, performance bonds and other obligations of a like nature (including those
to secure health, safety and environmental obligations) or (ii) obligations in respect of letters
or credit, bank guarantees or similar instruments related thereto, in the case of both (i) and (ii)
to the extent incurred in the ordinary course of business;

          (g) easements, rights-of-way, restrictions, encroachments, protrusions and other similar
encumbrances and minor title defects affecting real property which, in the aggregate, do

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not in any case materially interfere with the ordinary conduct of the business of Company or
any material Subsidiary;

          (h) Liens securing judgments for the payment of money not constituting an Event of Default
under Section 8.1(h);

          (i) Liens securing Indebtedness permitted under Section 6.3(e); provided that such
Liens do not at any time extend to or cover any assets (except for accessions to such assets) other
than the assets subject to such Capitalized Leases; and provided further that
individual financings of equipment provided by one lender may be cross collateralized to other
financings of equipment provided by such lender;

          (j) leases, licenses, subleases or sublicenses granted to others in the ordinary course of
business which do not (i) interfere in any material respect with the business of Company or any
material Subsidiary or (ii) secure any Indebtedness;

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

          (l) Liens (i) of a collection bank arising under Section 4-210 of the UCC on items in the
course of collection, (ii) attaching to commodity trading accounts or other commodities brokerage
accounts incurred in the ordinary course of business; and (iii) in favor of a banking institution
arising as a matter of law encumbering deposits (including the right of set-off) and which are
within the general parameters customary in the banking industry;

          (m) Liens (i) on cash advances in favor of the seller of any property to be acquired in an
Investment permitted pursuant to Sections 6.2 (i) and (n) to be applied against the purchase price
for such Investment, and (ii) consisting of an agreement to Dispose of any property in a
Disposition permitted under Section 6.5, in each case, solely to the extent such Investment or
Disposition, as the case may be, would have been permitted on the date of the creation of such
Lien;

          (n) Liens in favor of Company or a Subsidiary securing Indebtedness permitted under
Section 6.3(d);

          (o) Liens existing on property at the time of its acquisition or existing on the property of
any Person at the time such Person becomes a Subsidiary, in each case after the Closing Date (other
than Liens on the Equity Interests of any Person that becomes a Subsidiary); provided that
(i) such Lien was not created in contemplation of such acquisition or such Person becoming a
Subsidiary, (ii) such Lien does not extend to or cover any other assets or property (other than the
proceeds or products thereof and other than after-acquired property subjected to a Lien securing
Indebtedness and other obligations incurred prior to such time and which Indebtedness and other
obligations are permitted hereunder that require, pursuant to their terms at such time, a pledge of
after-acquired property, it being understood that such requirement shall not be permitted to apply
to any property to which such requirement would not have applied but for such acquisition), and
(iii) the Indebtedness secured thereby is permitted under Section 6.3(e), (g) or (h);

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          (p) any interest or title of a lessor under leases entered into by Company or any of its
Subsidiaries in the ordinary course of business;

          (q) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for sale of goods entered into by Company or any of its Subsidiaries in the ordinary
course of business permitted by this Agreement;

          (r) Liens deemed to exist in connection with Investments in repurchase agreements under
Section 6.2;

          (s) Liens encumbering reasonable customary initial deposits and margin deposits and similar
Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary
course of business and not for speculative purposes;

          (t) Liens that are contractual rights of set-off (i) relating to the establishment of
depository relations with banks not given in connection with the issuance of Indebtedness,
(ii) relating to pooled deposit or sweep accounts of Holdings, Company or any Subsidiary to permit
satisfaction of overdraft or similar obligations incurred in the ordinary course of business of
Holdings, Company and its Subsidiaries or (iii) relating to purchase orders and other agreements
entered into with customers of Holdings, Company or any Subsidiary in the ordinary course of
business;

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

          (v) (i) Liens placed upon the Equity Interests of any Subsidiary acquired pursuant to a
Permitted Acquisition to secure Indebtedness incurred pursuant to Section 6.3(h) in connection with
such Permitted Acquisition and (ii) Liens placed upon the assets of such Subsidiary and any of its
Subsidiaries to secure a Guarantee by such Subsidiary and its Subsidiaries of any such Indebtedness
incurred pursuant to Section 6.3(h);

          (w) ground leases in respect of real property on which facilities owned or leased by Company
or any of its Subsidiaries are located;

          (x) Liens securing Indebtedness of Qualified Non-Wholly-Owned Subsidiaries and Wholly-Owned
Subsidiaries of Company permitted under Section 6.3(t); and

          (y) other Liens securing Indebtedness of Company outstanding in an aggregate principal amount
not to exceed $35,000,000.

     6.2. Investments. Make or hold any Investments, except:

          (a) Investments by Company or a Subsidiary in assets that were Cash Equivalents when such
Investment was made;

          (b) loans or advances to officers, directors and employees of Holdings, Company and its
Subsidiaries (i) for reasonable and customary business-related travel, entertainment,

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relocation and analogous ordinary business purposes, (ii) in connection with such Person’s
purchase of Equity Interests of Holdings (or any direct or indirect parent thereof)
(provided that the amount of such loans and advances shall be contributed to Company in
cash as common equity) and (iii) for purposes not described in the foregoing clauses (i) and (ii),
in an aggregate principal amount outstanding not to exceed $5,000,000;

          (c) Investments (i) by Holdings, Company or any Subsidiary in any Credit Party (excluding any
new Subsidiary which becomes a Credit Party), (ii) by any Subsidiary that is not a Credit Party in
any other such Subsidiary that is also not a Credit Party, and (iii) by Company or any Subsidiary
in (A) any Wholly Owned Subsidiary that is not a Credit Party or (B) any Qualified Non-Wholly-Owned
Subsidiary that is not a Credit Party;

          (d) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors and other credits to suppliers in the ordinary course of business;

          (e) Investments consisting of Liens, Indebtedness, fundamental changes, Dispositions and
Restricted Payments permitted under Sections 6.1, 6.3, 6.4, 6.5 and 6.6, respectively;

          (f) Investments existing or contemplated on the Closing Date and set forth on Schedule 6.2(f)
and any modification, replacement, renewal, reinvestment or extension thereof; provided
that the amount of the original Investment is not increased except by the terms of such Investment
(to the extent such increase is noted on Schedule 6.2(f)) or as otherwise permitted by this
Section 6.2;

          (g) Investments in Swap Agreements permitted under Section 6.3;

          (h) promissory notes and other noncash consideration received in connection with Dispositions
permitted by Section 6.5;

          (i) any Permitted Acquisition, so long as Holdings and its Subsidiaries shall be in compliance
with the financial covenant set forth in Section 6.10(a) on a pro forma basis after giving to such
acquisition as of the last day of the Fiscal Quarter most recently ended (as determined in
accordance with Section 6.10(c)); provided that for purposes of this Section 6.2(i), the applicable
maximum Total Leverage Ratio required by Section 6.10(a) shall be reduced by an amount equal to
0.50:1;

          (j) the Transaction;

          (k) Investments in the ordinary course of business consisting of endorsements for collection
or deposit and customary trade arrangements with customers consistent with past practices;

          (l) Investments (including debt obligations and Equity Interests) received in connection with
the bankruptcy or reorganization of suppliers and customers or in settlement of delinquent
obligations of, or other disputes with, customers and suppliers arising in the ordinary

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course of business or upon the foreclosure with respect to any secured Investment or other
transfer of title with respect to any secured Investment;

          (m) loans and advances to Holdings (or any direct or indirect parent thereof) in lieu of, and
not in excess of the amount of (after giving effect to any other loans, advances or Restricted
Payments in respect thereof), Restricted Payments to the extent permitted to be made to Holdings
(or such parent) in accordance with Sections 6.6(h) or (i);

          (n) so long as immediately after giving effect to any such Investment, no Default has occurred
and is continuing and Holdings and its Subsidiaries will be in pro forma compliance with the
covenants set forth in Section 6.10, other Investments after the Closing Date that do not exceed
(x) if, as of the last day of the immediately preceding Test Period (after giving pro forma effect
to such Investment) the Total Leverage Ratio is 4.50:1 or less, $100,000,000 in the aggregate and
(y) if, as of the last day of the immediately preceding Test Period (after giving pro forma effect
to such Investment) the Total Leverage Ratio is greater than 4.50:1, $50,000,000 in the aggregate,
in each case net of any return representing return of capital in respect of any such investment and
valued at the time of the making thereof; provided that, such amount shall be increased by
(i) the Net Cash Proceeds of Permitted Equity Issuances (other than Permitted Equity Issuances made
pursuant to Section 8.3) that are Not Otherwise Applied and (ii) if, as of the last day of the
immediately preceding Test Period (after giving pro forma effect to such Investments) the Total
Leverage Ratio is 5.50:1 or less, the amount of Cumulative Excess Cash Flow that is Not Otherwise
Applied;

          (o) advances of payroll payments to employees in the ordinary course of business;

          (p) Investments to the extent that payment for such Investments is made solely with capital
stock of Holdings;

          (q) Investments of a Subsidiary acquired after the Closing Date or of a corporation merged
into Company or merged or consolidated with a Subsidiary in accordance with Section 6.4 after the
Closing Date to the extent that such Investments were not made in contemplation of or in connection
with such acquisition, merger or consolidation and were in existence on the date of such
acquisition, merger or consolidation;

          (r) Guarantees by Holdings, Company or any Subsidiary of leases (other than Capitalized
Leases) or of other obligations that do not constitute Indebtedness, in each case entered into in
the ordinary course of business; and

          (s) Investments in assets useful to the business of Holdings and its Subsidiaries made with
any Asset Sale Reinvestment Deferred Amount and Insurance/Condemnation Reinvestment Deferred Amount
(each as defined in Section 2.14).

     6.3. Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

          (a) Indebtedness of Holdings, Company and any of its Subsidiaries under the Credit Documents;

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          (b) Indebtedness (including intercompany Indebtedness) outstanding on the Closing Date and
listed on Schedule 6.3(b) and any Permitted Refinancing thereof;

          (c) Guarantees by Holdings, Company and its Subsidiaries in respect of Indebtedness of Company
or any Subsidiary otherwise permitted hereunder; provided that (A) no Guarantee by any
Credit Party of any New Note or Junior Financing shall be permitted unless such Credit Party shall
have also provided a Guarantee of the Obligations substantially on the terms set forth in the
Guaranty and (B) if the Indebtedness being Guaranteed is subordinated to the Obligations, such
Guarantee shall be subordinated to the Guarantee of the Obligations on terms at least as favorable
to the Lenders as those contained in the subordination of such Indebtedness;

          (d) Indebtedness of Holdings or any Subsidiary owing to Holdings or any other Subsidiary to
the extent constituting an Investment permitted by Section 6.2; provided that (i) all such
Indebtedness of any Credit Party owed to any Person that is not a Credit Party shall be subject to
the subordination terms set forth in Section 4.4.3 of the Pledge and Security Agreement and (ii)
all such Indebtedness of any Credit Party owed to another Credit Party (A) shall be evidenced by
the Intercompany Note, which shall be subject to a First Priority Lien pursuant to the Pledge and
Security Agreement and (B) shall be unsecured and subordinated in right of payment to the payment
in full of the Obligations pursuant to the terms of the Intercompany Note;

          (e) Indebtedness with respect to Capitalized Leases in an aggregate amount, together with the
aggregate amount of Indebtedness incurred pursuant to Section 6.3(g), not to exceed at any time an
amount equal to the greater of $160,000,000 and 4% of Total Assets;

          (f) Indebtedness in respect of Swap Agreements designed to hedge against interest rates,
foreign exchange rates or commodities pricing risks incurred in the ordinary course of business and
not for speculative purposes;

          (g) purchase money Indebtedness in an aggregate amount, together with the aggregate amount of
Indebtedness incurred pursuant to Section 6.3(e), not to exceed at any time an amount equal to the
greater of $160,000,000 and 4% of Total Assets; provided, any such Indebtedness (i) shall
be secured only by the asset acquired in connection with the incurrence of such Indebtedness, and
(ii) shall constitute not less than 85% of the aggregate consideration paid with respect to such
asset;

          (h) (i) the following Indebtedness assumed in connection with Permitted Acquisitions (provided
that such Indebtedness is not incurred in contemplation of any such Permitted Acquisition): (x)
Indebtedness assumed by Holdings, (y) Indebtedness assumed by Company, provided that such
Indebtedness is unsecured and is subordinated to the Obligations on terms no less favorable to the
Lenders than the subordination terms set forth in the Senior Subordinated Notes Indenture as of the
Closing Date and (z) other Indebtedness assumed by Company and its Subsidiaries in an aggregate
amount not to exceed $125,000,000 at any one time outstanding, (ii) Indebtedness incurred by
Holdings or Company to finance a Permitted Acquisition, provided that such Indebtedness is
unsecured and is subordinated to the Obligations on terms no less favorable to the Lenders than the
subordination terms set forth in the Senior

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Subordinated Notes Indenture as of the Closing Date and (iii) any Permitted Refinancing of the
foregoing, provided that with respect to any unsecured and/or subordinated Indebtedness,
the Permitted Refinancing thereof shall be similarly unsecured and/or subordinated;
provided that, in each case of the foregoing clauses (i), (ii) and (iii), such Indebtedness
and all Indebtedness resulting from any Permitted Refinancing thereof (A) both immediately prior
and after giving effect thereto, (1) no Default shall exist or result therefrom and (2) Holdings
and its Subsidiaries will be in pro forma compliance with the covenants set forth in Section 6.10,
(B) matures after, and does not require any scheduled amortization (other than nominal
amortization) or other scheduled payments of principal prior to, the date that is 91 days after the
Tranche C-2 Term Loan Maturity Date (it being understood that such Indebtedness may have mandatory
prepayment, repurchase or redemptions provisions satisfying the requirement of clause (C) hereof)
and (C) has terms and conditions (other than interest rate, redemption premiums and subordination
terms), taken as a whole, that are not materially less favorable to Company as the terms and
conditions of the New Notes as of the Closing Date; provided that a certificate of a
Responsible Officer delivered to Administrative Agent at least five Business Days prior to the
assumption or incurrence of such Indebtedness, together with a reasonably detailed description of
the material terms and conditions of such Indebtedness or drafts of the documentation relating
thereto, stating that Company has determined in good faith that such terms and conditions satisfy
the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the
foregoing requirement unless the Administrative Agent notifies Company within such five Business
Day period that it disagrees with such determination (including a reasonable description of the
basis upon which it disagrees).

          (i) Indebtedness representing deferred compensation to employees of Company and its
Subsidiaries incurred in the ordinary course of business;

          (j) Indebtedness in an aggregate amount not to exceed $15,000,000 at any time consisting of
promissory notes issued by any Credit Party to current or former officers, directors and employees,
their respective estates, spouses or former spouses to finance the purchase or redemption of Equity
Interests of Holdings permitted by Section 6.6;

          (k) Indebtedness incurred by Holdings, Company or its Subsidiaries in any Disposition
constituting indemnification obligations or obligations in respect of purchase price or other
similar adjustments;

          (l) Indebtedness consisting of obligations of Holdings, Company or its Subsidiaries under
deferred compensation or other similar arrangements incurred by such Person in connection with the
Transaction and Permitted Acquisitions or any other Investment expressly permitted hereunder;

          (m) Cash Management Obligations and other Indebtedness in respect of netting services,
overdraft protections and similar arrangements in each case in connection with deposit accounts;

          (n) Indebtedness incurred by Company or any of its Subsidiaries in respect of letters of
credit, bank guarantees, bankers’ acceptances or similar instruments issued or created in the
ordinary course of business, including in respect of workers compensation claims, health,

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disability or other employee benefits or property, casualty or liability insurance or
self-insurance or other Indebtedness with respect to reimbursement-type obligations regarding
workers compensation claims; provided that any reimbursement obligations in respect thereof
are reimbursed within 30 days following the incurrence thereof;

          (o) obligations in respect of performance, bid, appeal and surety bonds and performance and
completion guarantees and similar obligations provided by Company or any of its Subsidiaries or
obligations in respect of letters of credit, bank guarantees or similar instruments related
thereto, in each case in the ordinary course of business or consistent with past practice;

          (p) unsecured Indebtedness of Holdings (“Permitted Holdings Debt”) (i) that is not subject to
any Guarantee by Company or any Subsidiary, (ii) that will not mature prior to the date that is 91
days after the Tranche C-2 Term Loan Maturity Date, (iii) that has no scheduled amortization or
payments of principal (it being understood that such Indebtedness may have mandatory prepayment,
repurchase or redemption provisions satisfying the requirements of clause (v) hereof), (iv) that
does not require any payments in cash of interest or other amounts in respect of the principal
thereof prior to the earlier to occur of (A) the date that is five (5) years from the date of the
issuance or incurrence thereof and (B) the date that is 91 days after the Tranche C-2 Term Loan
Maturity Date, and (v) that has mandatory prepayment, repurchase or redemption, covenant, default
and remedy provisions customary for senior discount notes of an issuer that is the parent of a
borrower under senior secured credit facilities, and in any event, with respect to covenant,
default and remedy provisions, no more restrictive than those set forth in the Senior Subordinated
Notes Indenture as of the Closing Date, taken as a whole (other than provisions customary for
senior discount notes of a holding company); provided that a certificate of a Responsible
Officer delivered to Administrative Agent at least five Business Days prior to the incurrence of
such Indebtedness, together with a reasonably detailed description of the material terms and
conditions of such Indebtedness or drafts of the documentation relating thereto, stating that
Company has determined in good faith that such terms and conditions satisfy the foregoing
requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing
requirement unless Administrative Agent notifies Company within such five Business Day period that
it disagrees with such determination (including a reasonable description of the basis upon which it
disagrees); provided, further, that any such Indebtedness shall constitute
Permitted Holdings Debt only if (1) both before and after giving effect to the issuance or
incurrence thereof, no Default shall have occurred and be continuing and (2) Holdings and its
Subsidiaries will be in pro forma compliance with the covenants set forth in Section 6.10 (it being
understood that any capitalized or paid-in-kind or accreted principal on such Indebtedness is not
subject to this proviso);

          (q) Indebtedness supported by a Letter of Credit, in a principal amount not to exceed the face
amount of such Letter of Credit;

          (r) Indebtedness in respect of the New Notes and any Permitted Refinancing thereof;

          (s) Indebtedness consisting of the financing of insurance premiums in the ordinary course of
business;

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          (t) Indebtedness of Qualified Non-Wholly-Owned Subsidiaries and Wholly Owned Subsidiaries of
Company in an aggregate amount not to exceed at any time (x) if, as of the last day of the
immediately preceding Test Period (after giving pro forma effect to such Indebtedness) the Total
Leverage Ratio is less than 4.50:1, $50,000,000 and (y) otherwise, $25,000,000;

          (u) other Indebtedness of Company in an aggregate amount not to exceed at any time
$200,000,000; and

          (v) all premiums (if any), interest (including post-petition interest), fees, expenses,
charges and additional or contingent interest on obligations described in clauses (a) through (u)
above.

     6.4. Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another Person,
or Dispose of (whether in one transaction or in a series of transactions) all or substantially all
of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that:

          (a) any Subsidiary may merge with (i) any Borrower (including a merger, the purpose of which
is to reorganize such Borrower into a new jurisdiction); provided that such Borrower shall
be the continuing or surviving Person and (y) such merger does not result in any Borrower ceasing
to be incorporated under the Laws of the United States, any state thereof or the District of
Columbia, or (ii) any one or more other Subsidiaries; provided that when any Subsidiary
that is a Credit Party is merging with another Subsidiary, a Credit Party shall be the continuing
or surviving Person;

          (b) (i) any Subsidiary that is not a Credit Party may merge or consolidate with or into any
other Subsidiary that is not a Credit Party and (ii) any Subsidiary (other than a Borrower) may
liquidate or dissolve or change its legal form if Holdings determines in good faith that such
action is in the best interests of Holdings and its Subsidiaries and if not materially
disadvantageous to the Lenders;

          (c) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to Company or to another Subsidiary; provided that if the
transferor in such a transaction is a Guarantor or a Borrower, then (i) the transferee must either
be a Borrower or a Guarantor or (ii) to the extent constituting an Investment, such Investment must
be permitted under Sections 6.2 and 6.3;

          (d) so long as no Default exists or would result therefrom, Company may merge with any other
Person; provided that (i) Company shall be the continuing or surviving corporation or (ii)
if the Person formed by or surviving any such merger or consolidation is not Company (any such
Person, the “Successor Company”), (A) the Successor Company and its Subsidiaries shall be in
compliance with the financial covenants set forth in Section 6.10 on a pro forma basis after giving
effect to such merger or consolidation as of the last day of the Fiscal Quarter most recently
ended, (B) the Successor Company shall be an entity organized or existing under the laws of the
United States, any state thereof, the District of Columbia or any territory thereof, (C) the
Successor Company shall expressly assume all the obligations of Company

98

 

under this Agreement and the other Credit Documents to which Company is a party pursuant to a
supplement hereto or thereto in form reasonably satisfactory to the Administrative Agent, (D) each
Guarantor, unless it is the other party to such merger or consolidation, shall have by a supplement
to the Guaranty confirmed that its Guarantee shall apply to the Successor Company’s obligations
under this Agreement, (E) each Guarantor, unless it is the other party to such merger or
consolidation, shall have by a supplement to the Pledge and Security Agreement confirmed that its
obligations thereunder shall apply to the Successor Company’s obligations under this Agreement, (F)
each mortgagor of a Closing Date Mortgaged Property, unless it is the other party to such merger or
consolidation, shall have by an amendment to or restatement of the applicable Mortgage confirmed
that its obligations thereunder shall apply to the Successor Company’s obligations under this
Agreement, and (G) Company shall have delivered to Administrative Agent an officer’s certificate
and an opinion of counsel, each stating that such merger or consolidation and such supplement to
this Agreement or any Collateral Document comply with this Agreement; provided,
further, that if the foregoing are satisfied, the Successor Company will succeed to, and be
substituted for, Company under this Agreement;

          (e) so long as no Default exists or would result therefrom, any Subsidiary may merge with any
other Person in order to effect an Investment permitted pursuant to Section 6.2; provided
that the continuing or surviving Person shall be a Subsidiary, which together with each of its
Subsidiaries, shall have complied with the requirements of Section 5.11;

          (f) Holdings and its Subsidiaries may consummate the Merger; and

          (g) so long as no Default exists or would result therefrom, a Disposition, the purpose of
which is to effect a Disposition permitted pursuant to Section 6.5.

     6.5. Dispositions. Make any Disposition or enter into any agreement to make any Disposition,
except:

          (a) Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in
the ordinary course of business and Dispositions of property no longer used or useful in the
conduct of the business of Company and its Subsidiaries;

          (b) Dispositions of assets that do not constitute Asset Sales;

          (c) Dispositions of property to the extent that (i) such property is exchanged for credit
against the purchase price of similar replacement property or (ii) the proceeds of such Disposition
are promptly applied to the purchase price of such replacement property;

          (d) Dispositions of property to Company or to a Subsidiary; provided that if the
transferor of such property is a Guarantor or a Borrower (i) the transferee thereof must either be
a Borrower or a Guarantor or (ii) to the extent such transaction constitutes an Investment, such
transaction is permitted under Section 6.2;

          (e) Dispositions permitted by Sections 6.4 and 6.6 and Liens permitted by Section 6.1;

99

 

          (f) Dispositions of property pursuant to sale-leaseback transactions; provided that
the fair market value of all property so Disposed of after the Closing Date (taken together with
the aggregate book value of all property Disposed of pursuant to Section 6.5(k)) shall not exceed
$125,000,000;

          (g) Dispositions of Cash Equivalents;

          (h) Dispositions of accounts receivable in connection with the collection or compromise
thereof;

          (i) leases, subleases, licenses or sublicenses, in each case in the ordinary course of
business and which do not materially interfere with the business of Holdings, Company and its
Subsidiaries;

          (j) transfers of property subject to Casualty Events upon receipt of the Net Cash Proceeds of
such Casualty Event;

          (k) Dispositions after the Closing Date of property not otherwise permitted under this
Section 6.5; provided that (i) at the time of such Disposition (other than any such
Disposition made pursuant to a legally binding commitment entered into at a time when no Default
exists), no Default shall exist or would result from such Disposition, (ii) the aggregate book
value of all property Disposed of in reliance on this clause (k) (taken together with the aggregate
fair market value of all property Disposed of pursuant to Section 6.5(f)) shall not exceed
$125,000,000 and (iii) with respect to any Disposition pursuant to this clause (k) for a purchase
price in excess of $3,500,000, Company or a Subsidiary shall receive not less than 75% of such
consideration in the form of cash or Cash Equivalents (in each case, free and clear of all Liens at
the time received, other than nonconsensual Liens permitted by Section 6.1 and Liens permitted by
Section 6.1(s) and clauses (i) and (ii) of Section 6.1(t)); provided, however, that
for the purposes of this clause (iii), (A) any liabilities (as shown on Company’s or such
Subsidiary’s most recent balance sheet provided hereunder or in the footnotes thereto) of Company
or such Subsidiary, other than liabilities that are by their terms subordinated to the payment in
cash of the Obligations, that are assumed by the transferee with respect to the applicable
Disposition and for which Company and all of its Subsidiaries shall have been validly released by
all applicable creditors in writing, (B) any securities received by Company or such Subsidiary from
such transferee that are converted by Company or such Subsidiary into cash (to the extent of the
cash received) within 180 days following the closing of the applicable Disposition and (C) any
Designated Non-Cash Consideration received by Company or such Subsidiary in respect of such
Disposition having an aggregate fair market value, taken together with all other Designated
Non-Cash Consideration received pursuant to this clause (C) that is at that time outstanding, not
in excess of 1.5% of Total Assets at the time of the receipt of such Designated Non-Cash
Consideration, with the fair market value of each item of Designated Non-Cash Consideration being
measured at the time received and without giving effect to subsequent changes in value, shall be
deemed to be cash;

          (l) Dispositions listed on Schedule 6.5(l); and

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          (m) Dispositions of Investments in joint ventures to the extent required by, or made pursuant
to customary buy/sell arrangements between, the joint venture parties set forth in joint venture
arrangements and similar binding arrangements.

provided that any Disposition of any property pursuant to this Section 6.5 (except pursuant
to Sections 6.5(e) and except for Dispositions from a Credit Party to another Credit Party), shall
be for no less than the fair market value of such property at the time of such Disposition. To the
extent any Collateral is Disposed of as expressly permitted by this Section 6.5 to any Person other
than Holdings, Company or any Subsidiary, such Collateral shall be sold free and clear of the Liens
created by the Credit Documents, and Administrative Agent or Collateral Agent, as applicable, shall
be authorized to take any actions deemed appropriate in order to effect the foregoing.

     6.6. Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment,
except:

          (a) each Subsidiary may make Restricted Payments to Company and to other Subsidiaries (and, in
the case of a Restricted Payment by a non-wholly owned Subsidiary, to Company and any other
Subsidiary and to each other owner of Equity Interests of such Subsidiary based on their relative
ownership interests of the relevant class of Equity Interests);

          (b) Holdings, Company and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the Equity Interests (other than Disqualified Equity Interests not
otherwise permitted by Section 6.3) of such Person;

          (c) so long as no Default shall have occurred and be continuing or would result therefrom,
from and after the date Company delivers an irrevocable written notice to the Administrative Agent
stating that Company will make Restricted Payments to Holdings that are used by Holdings solely to
fund cash interest payments required to be made by Holdings and permitted to be made by Holdings
under this Agreement (the “Holdings Restricted Payments Election”), Company may make such
Restricted Payments to Holdings;

          (d) Restricted Payments made on the Closing Date to consummate the Transaction;

          (e) to the extent constituting Restricted Payments, Holdings, Company and its Subsidiaries may
enter into and consummate transactions expressly permitted by any provision of Section 6.4 or 6.8
other than Section 6.8(f);

          (f) repurchases of Equity Interests in Holdings, Company or any Subsidiary deemed to occur
upon exercise of stock options or warrants if such Equity Interests represent a portion of the
exercise price of such options or warrants;

          (g) Holdings may pay (or make Restricted Payments to allow any direct or indirect parent
thereof to pay) for the repurchase, retirement or other acquisition or retirement for value of
Equity Interests of Holdings (or of any such parent of Holdings) by any future, present or former
employee or director of Holdings (or any direct or indirect parent of Holdings) or any of its
Subsidiaries in connection with the termination of employment, death or disability of such

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individual pursuant to any employee or director equity plan, employee or director stock option
plan or any other employee or director benefit plan or any agreement (including any stock
subscription or shareholder agreement) with any employee or director of Holdings or any of its
Subsidiaries;

          (h) Company and its Subsidiaries may make Restricted Payments to Holdings:

          (i) the proceeds of which will be used to pay (or to make Restricted Payments to allow
any direct or indirect parent of Holdings to pay) the tax liability to each relevant
jurisdiction in respect of any tax returns for the relevant jurisdiction of Holdings (or
such parent) attributable to Holdings, Company or its Subsidiaries;

          (ii) the proceeds of which shall be used by Holdings to pay (or to make Restricted
Payments to allow any direct or indirect parent of Holdings to pay) its operating expenses
incurred in the ordinary course of business and other corporate overhead costs and expenses
(including administrative, legal, accounting and similar expenses provided by third
parties), which are reasonable and customary and incurred in the ordinary course of
business, in an aggregate amount, together with loans and advances to Holdings made pursuant
to Section 6.2(m) in lieu of Restricted Payments permitted by this sub-clause (ii), not to
exceed $1,000,000 in any fiscal year plus any reasonable and customary indemnification
claims made by directors or officers of Holdings (or any parent thereof) attributable to the
ownership or operations of Company and its Subsidiaries;

          (iii) the proceeds of which shall be used by Holdings to pay franchise taxes and other
fees, taxes and expenses required to maintain its (or any of its direct or indirect
parents’) corporate existence;

          (iv) the proceeds of which shall be used by Holdings to make Restricted Payments
permitted by Section 6.6(g);

          (v) to finance any Investment permitted to be made pursuant to Section 6.2;
provided that (A) such Restricted Payment shall be made substantially concurrently
with the closing of such Investment and (B) Holdings shall, immediately following the
closing thereof, cause (1) all property acquired (whether assets or Equity Interests) to be
contributed to Company or its Subsidiaries or (2) the merger (to the extent permitted in
Section 6.4) of the Person formed or acquired into Company or its Subsidiaries in order to
consummate such Permitted Acquisition, in each case, in accordance with the requirements of
Sections 5.12 and 5.13; and

          (vi) the proceeds of which shall be used by Holdings to pay (or to make Restricted
Payments to allow any direct or indirect parent thereof to pay) fees and expenses (other
than to Affiliates) related to any unsuccessful equity or debt offering permitted by this
Agreement; and

          (i) in addition to the foregoing Restricted Payments and so long as no Default shall have
occurred and be continuing or would result therefrom, Company may make additional Restricted
Payments to Holdings after the Closing Date the proceeds of which may be utilized by

102

 

Holdings to make additional Restricted Payments, in an aggregate amount, together with the
aggregate amount of (1) prepayments, redemptions, purchases, defeasances and other payments in
respect of Junior Financings made pursuant to Section 6.12(a)(iv) and (2) loans and advances to
Holdings made pursuant to Section 6.2(m) in lieu of Restricted Payments permitted by this clause
(i), not to exceed the sum of (A) $60,000,000, (B) the aggregate amount of the Net Cash Proceeds of
Permitted Equity Issuances (other than Permitted Equity Issuances made pursuant to Section 8.3)
that are Not Otherwise Applied and (C) if the Total Leverage Ratio as of the last day of the
immediately preceding Test Period (after giving pro forma effect to such additional Restricted
Payments) is 5.50:1 or less, the amount of Cumulative Excess Cash Flow that is Not Otherwise
Applied. For the purpose of this Agreement, “Cumulative Excess Cash Flow” means the sum of
Consolidated Excess Cash Flow (but not less than zero in any period) for the fiscal year ending on
June 30, 2007 and Consolidated Excess Cash Flow for each succeeding and completed fiscal year;
provided that in connection with (x) any dividend or other distribution made or to be made
to the equity holders of Education Management or (y) any other Restricted Payment made or to be
made to a Sponsor, in each case pursuant to clause (C) of this Section 6.6(i) , Consolidated
Excess Cash Flow for the 2010 fiscal year shall be determined without giving effect to clause
(a)(iii) of the definition thereof.

     6.7. Change in Nature of Business. Engage in any material line of business substantially
different from those lines of business conducted by Company and its Subsidiaries on the Closing
Date or any business reasonably related or ancillary thereto.

     6.8. Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate of
Company, whether or not in the ordinary course of business, other than (a) transactions among
Credit Parties or any Subsidiary or any entity that becomes a Subsidiary as a result of such
transaction, (b) on terms substantially as favorable to Holdings, Company or such Subsidiary as
would be obtainable by Holdings, Company or such Subsidiary at the time in a comparable
arm’s-length transaction with a Person other than an Affiliate, (c) the payment of fees and
expenses related to the Transaction, (d) the issuance of Equity Interests to the management of
Company or any of its Subsidiaries in connection with the Transaction, (e) the payment of
management and monitoring fees to the Sponsors in an aggregate amount in any fiscal year not to
exceed the amount permitted to be paid pursuant to the Sponsor Management Agreement as in effect on
the Closing Date and any Sponsor Termination Fees not to exceed the amount set forth in the Sponsor
Management Agreement as in effect on the Closing Date and related indemnities and reasonable
expenses, (f) equity issuances, repurchases, retirements or other acquisitions or retirements of
Equity Interests by Holdings permitted under Section 6.6, (g) loans and other transactions by
Holdings, Company and its Subsidiaries to the extent permitted under this Section 6, (h) employment
and severance arrangements between Holdings, Company and its Subsidiaries and their respective
officers and employees in the ordinary course of business, (i) without limiting Section 6.6(h),
payments by Holdings (and any direct or indirect parent thereof), Company and its Subsidiaries
pursuant to the tax sharing agreements among Holdings (and any such parent thereof), Company and
its Subsidiaries on customary terms to the extent attributable to the ownership or operation of
Company and its Subsidiaries, (j) the payment of customary fees and reasonable out of pocket costs
to, and indemnities provided on behalf of, directors, officers and employees of Holdings, Company
and its Subsidiaries in the ordinary course of business to the extent attributable to the ownership
or operation of Holdings, Company and its Subsidiaries, (k) transactions pursuant to permitted
agreements in existence on

103

 

the Closing Date and set forth on Schedule 6.8 or any amendment thereto to the extent such an
amendment is not adverse to the Lenders in any material respect, (l) dividends, redemptions and
repurchases permitted under Section 6.6, and (m) customary payments by Holdings, Company and any of
its Subsidiaries to the Sponsors made for any financial advisory, financing, underwriting or
placement services or in respect of other investment banking activities (including in connection
with acquisitions or divestitures), which payments are approved by the majority of the members of
the board of directors or a majority of the disinterested members of the board of directors of
Holdings or Company, in good faith.

     6.9. Burdensome Agreements. Enter into or permit to exist any Contractual Obligation (other
than this Agreement or any other Credit Document) that limits the ability of (a) any Subsidiary of
Company that is not a Guarantor to make Restricted Payments to Company or any Guarantor or (b)
Company or any other Credit Party to create, incur, assume or suffer to exist Liens on property of
such Person for the benefit of Lenders with respect to the Obligations or under the Credit
Documents; provided that the foregoing clauses (a) and (b) shall not apply to Contractual
Obligations which (i) (x) exist on the Closing Date and (to the extent not otherwise permitted by
this Section 6.9) are listed on Schedule 6.9 hereto and (y) to the extent Contractual Obligations
permitted by clause (x) are set forth in an agreement evidencing Indebtedness, are set forth in any
agreement evidencing any permitted renewal, extension or refinancing of such Indebtedness so long
as such renewal, extension or refinancing does not expand the scope of such Contractual Obligation,
(ii) are binding on a Subsidiary at the time such Subsidiary first becomes a Subsidiary of Company,
so long as such Contractual Obligations were not entered into solely in contemplation of such
Person becoming a Subsidiary of Company, (iii) arise in connection with any Disposition permitted
by Section 6.5 to the extent such Contractual Obligations are in effect prior to the consummation
of such Disposition; (iv) are customary provisions in joint venture agreements and other similar
agreements applicable to joint ventures permitted under Section 6.2 and applicable solely to such
joint venture entered into in the ordinary course of business, (v) are negative pledges and
restrictions on Liens in favor of any holder of Indebtedness permitted under Section 6.3 but solely
to the extent any negative pledge relates to the property financed by or the subject of such
Indebtedness (and excluding in any event any Indebtedness constituting any Junior Financing), (vi)
are customary restrictions on leases, subleases, licenses or asset sale agreements otherwise
permitted hereby so long as such restrictions relate to the assets subject thereto, (vii) comprise
restrictions imposed by any agreement relating to secured Indebtedness permitted pursuant to
Section 6.3(e) or 6.3(g) to the extent that such restrictions apply only to the property or assets
securing such Indebtedness or, in the case of Indebtedness incurred pursuant to Section 6.3(g)
only, to the Subsidiaries incurring or guaranteeing such Indebtedness, (viii) are customary
provisions restricting subletting or assignment of any lease governing a leasehold interest of
Company or any Subsidiary, (ix) are customary provisions restricting assignment of any agreement
entered into in the ordinary course of business, (x) are restrictions on cash or other deposits
imposed by customers under contracts entered into in the ordinary course of business and (xi) are
required by any applicable Education Laws or any other applicable laws.

     6.10. Financial Covenants. (a) Total Leverage Ratio. Permit the Total Leverage Ratio
as of the last day of any Test Period (beginning with the Test Period ending on December 31, 2006)
to be greater than the ratio set forth below opposite the last day of such Test Period:

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	Year	 	March 31	 	June 30	 	September 30	 	December 31
	2006
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8.25:1	 
	2007
	 	 	8.00:1	 	 	 	8.00:1	 	 	 	7.75:1	 	 	 	7.75:1	 
	2008
	 	 	7.25:1	 	 	 	7.25:1	 	 	 	7.00:1	 	 	 	7.00:1	 
	2009
	 	 	6.75:1	 	 	 	6.75:1	 	 	 	6.25:1	 	 	 	6.25:1	 
	2010
	 	 	5.75:1	 	 	 	5.75:1	 	 	 	5.25:1	 	 	 	4.50:1	 
	2011
	 	 	4.50:1	 	 	 	4.50:1	 	 	 	4.25:1	 	 	 	4.25:1	 
	2012
	 	 	4.00:1	 	 	 	4.00:1	 	 	 	3.50:1	 	 	 	3.50:1	 
	2013
	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 
	2014
	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 
	2015
	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 	 	 	3.50:1	 
	2016
	 	 	3.50:1	 	 	 	3.50:1	 	 	 	—	 	 	 	—	 

          (b) Interest Coverage Ratio. Permit the Interest Coverage Ratio for any Test Period
(beginning with the Test Period ending on December 31, 2006) to be less than the ratio set forth
below opposite the last day of such Test Period:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	March 31	 	June 30	 	September 30	 	December 31
	2006
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1.40:1	 
	2007
	 	 	1.40:1	 	 	 	1.40:1	 	 	 	1.40:1	 	 	 	1.50:1	 
	2008
	 	 	1.50:1	 	 	 	1.55:1	 	 	 	1.60:1	 	 	 	1.65:1	 
	2009
	 	 	1.70:1	 	 	 	1.70:1	 	 	 	1.80:1	 	 	 	1.90:1	 
	2010
	 	 	2.00:1	 	 	 	2.00:1	 	 	 	2.10:1	 	 	 	2.20:1	 
	2011
	 	 	2.30:1	 	 	 	2.30:1	 	 	 	2.50:1	 	 	 	2.50:1	 
	2012
	 	 	2.50:1	 	 	 	2.50:1	 	 	 	2.75:1	 	 	 	2.75:1	 
	2013
	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 
	2014
	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 
	2015
	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 	 	 	2.75:1	 
	2016
	 	 	2.75:1	 	 	 	2.75:1	 	 	 	—	 	 	 	—	 

          (c) Certain Calculations. With respect to any period during which a Permitted
Acquisition, an Asset Sale, an Investment or a merger or consolidation has occurred or an
Indebtedness is incurred (each, a “Subject Transaction”), for purposes of determining compliance
with the financial covenants set forth in this Section 6.10, Consolidated EBITDA shall be
calculated with respect to such period on a pro forma basis (including pro forma adjustments
arising out of events which are directly attributable to a specific transaction, are factually
supportable and are expected to have a continuing impact, in each case determined on a basis
consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as
interpreted by the staff of the Securities and Exchange Commission, which would include cost
savings resulting from head count reduction, closure of facilities and similar restructuring
charges, which pro forma adjustments shall be certified by the chief financial officer or treasurer
of Holdings) using the historical financial statements of any business so acquired or to be
acquired or sold or to be sold and the consolidated financial statements of Holdings and its
Subsidiaries which shall be reformulated as if such Subject Transaction, and any Indebtedness

105

 

incurred or repaid in connection therewith, had been consummated or incurred or repaid at the
beginning of such period (and assuming that such Indebtedness bears interest during any portion of
the applicable measurement period prior to the relevant acquisition at the weighted average of the
interest rates applicable to outstanding Loans incurred during such period).

     6.11. Accounting Changes. Make any change in fiscal year; provided, however,
that Company may, upon written notice to the Administrative Agent, change its fiscal year to any
other fiscal year reasonably acceptable to the Administrative Agent, in which case, Company and
Administrative Agent will, and are hereby authorized by the Lenders to, make any adjustments to
this Agreement that are necessary to reflect such change in fiscal year.

     6.12. Prepayments, Etc. of Indebtedness; Amendment of Agreements. (a) Prepay, redeem,
purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner (it
being understood that payments of regularly scheduled interest shall be permitted) the Senior
Subordinated Notes or any other Indebtedness that is required to be subordinated to the Obligations
pursuant to the terms of the Credit Documents (collectively, “Junior Financing”) or make any
payment in violation of any subordination terms of any Junior Financing Documentation, except
(i) the refinancing thereof with the Net Cash Proceeds of any Indebtedness (to the extent such
Indebtedness constitutes a Permitted Refinancing and, if applicable, is permitted pursuant to
Section 6.3(h)), to the extent not required to prepay any Loans pursuant to Section 2.14, or of any
Indebtedness of Holdings, (ii) the conversion of any Junior Financing to Equity Interests (other
than Disqualified Equity Interests) of Holdings or any of its direct or indirect parents, (iii) the
prepayment of Indebtedness of Company or any Subsidiary to Company or any Subsidiary to the extent
permitted by the Collateral Documents and (iv) prepayments, redemptions, purchases, defeasances and
other payments in respect of Junior Financings prior to their scheduled maturity in an aggregate
amount, together with the aggregate amount of (1) Restricted Payments made pursuant to
Section 6.6(i) and (2) loans and advances to Holdings made pursuant to Section 6.2(m), not to
exceed the sum of (A) the amount of the Net Cash Proceeds of Permitted Equity Issuances (other than
Permitted Equity Issuances made pursuant to Section 8.3) that are Not Otherwise Applied and (B) if,
as of the last day of the immediately preceding Test Period (after giving pro forma effect to such
prepayments, redemptions, purchases, defeasances and other payments) the Total Leverage Ratio is
5.50:1 or less, the amount of Cumulative Excess Cash Flow that is Not Otherwise Applied.

          (b) Amend, modify or change in any manner materially adverse to the interests of the Lenders
any term or condition of any Junior Financing Documentation or any Organization Document without
the consent of the Arrangers.

     6.13. Equity Interests of Company and Subsidiaries. Permit any Domestic Subsidiary that is a
Subsidiary to be a non-wholly owned Subsidiary, except as a result of or in connection with a
dissolution, merger, consolidation or Disposition of a Subsidiary permitted by Section 6.4, 6.5 or
an Investment in any Person permitted under Section 6.2.

     6.14. Holding Company. In the case of Holdings, conduct, transact or otherwise engage in any
business or operations other than those incidental to (i) its ownership of the Equity Interests of
Company, (ii) the maintenance of its legal existence, (iii) the performance of the Credit
Documents, the Merger Agreement and the other agreements contemplated by the Merger

106

 

Agreement , (iv) any public offering of its common stock or any other issuance of its Equity
Interests not prohibited by this Section 6 and (v) any transaction that Holdings is permitted to
enter into or consummate under this Section 6.

     6.15. Capital Expenditures.

          (a) Make any Capital Expenditure except for Capital Expenditures not exceeding, in the
aggregate for Holdings and its Subsidiaries during each fiscal year set forth below, the sum of (x)
the amount set forth opposite such fiscal year and (y) the amount of Cumulative Excess Cash Flow
that is Not Otherwise Applied:

	 	 	 	 	 
	Fiscal Year	 	Amount
	2007
	 	$	125,000,000	 
	2008
	 	$	135,000,000	 
	2009
	 	$	145,000,000	 
	2010
	 	$	155,000,000	 
	2011
	 	$	165,000,000	 
	2012
	 	$	175,000,000	 
	2013
	 	$	185,000,000	 
	2014
	 	$	200,000,000	 
	2015
	 	$	225,000,000	 
	2016
	 	$	250,000,000	 

          (b) Notwithstanding anything to the contrary contained in clause (a) above, to the extent that
the aggregate amount of Capital Expenditures made by Holdings and its Subsidiaries in any fiscal
year pursuant to Section 6.15(a) is less than the maximum amount of Capital Expenditures permitted
by Section 6.15(a) with respect to such fiscal year, the amount of such difference (the “Rollover
Amount”) may be carried forward and used to make Capital Expenditures in the two succeeding fiscal
years; provided that Capital Expenditures in any fiscal year shall be counted against the
base amount set forth in Section 6.15(a) with respect to such fiscal year prior to being counted
against any Rollover Amount available with respect to such fiscal year.

     6.16. Interest Rate Protection. No later than ninety (90) days following the Closing Date and
at all times thereafter until the second anniversary of the Closing Date, Company shall obtain and
cause to be maintained protection against fluctuations in interest rates pursuant to one or more
Interest Rate Agreements in form and substance reasonably satisfactory to Administrative Agent and
with parties reasonably acceptable to Administrative Agent (which may include any Lender), in order
to ensure that no less than 50% of the aggregate principal amount of the total Indebtedness of
Holdings and its Subsidiaries then outstanding is either (i) subject to such Interest Rate
Agreements or (ii) Indebtedness that bears interest at a fixed rate.

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SECTION 7. GUARANTY

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

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

     7.3. Payment by Guarantors. Subject to Section 7.2, Guarantors hereby jointly and severally
agree, in furtherance of the foregoing and not in limitation of any other right which any
Beneficiary may have at law or in equity against any Guarantor by virtue hereof, that upon the

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

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

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

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

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

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

          (e) any Beneficiary, upon such terms as it deems appropriate, without notice or demand and
without affecting the validity or enforceability hereof or giving rise to any reduction,
limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time
to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change
the time, place, manner or terms of payment of the Guaranteed Obligations; (ii)

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settle, compromise, release or discharge, or accept or refuse any offer of performance with
respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto
and/or subordinate the payment of the same to the payment of any other obligations; (iii) request
and accept other guaranties of the Guaranteed Obligations and take and hold security for the
payment hereof or the Guaranteed Obligations; (iv) release, surrender, exchange, substitute,
compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration,
any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed
Obligations, or any other obligation of any Person (including any other Guarantor) with respect to
the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the
benefit of such Beneficiary in respect hereof or the Guaranteed Obligations and direct the order or
manner of sale thereof, or exercise any other right or remedy that such Beneficiary may have
against any such security, in each case as such Beneficiary in its discretion may determine
consistent herewith or the applicable Swap Agreement and any applicable security agreement,
including foreclosure on any such security pursuant to one or more judicial or nonjudicial sales,
whether or not every aspect of any such sale is commercially reasonable, and even though such
action operates to impair or extinguish any right of reimbursement or subrogation or other right or
remedy of any Guarantor against any Borrower or any security for the Guaranteed Obligations; and
(vi) exercise any other rights available to it under the Credit Documents or any Hedge Agreements;
and

          (f) this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable
and shall not be subject to any reduction, limitation, impairment, discharge or termination for any
reason (other than payment in full of the Guaranteed Obligations), including the occurrence of any
of the following, whether or not any Guarantor shall have had notice or knowledge of any of them:
(i) any failure or omission to assert or enforce or agreement or election not to assert or enforce,
or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or
enforcement of, any claim or demand or any right, power or remedy (whether arising under the Credit
Documents or any Swap Agreements, at law, in equity or otherwise) with respect to the Guaranteed
Obligations or any agreement relating thereto, or with respect to any other guaranty of or security
for the payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or
modification of, or any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, any of the other Credit Documents, any of the
Swap Agreements or any agreement or instrument executed pursuant thereto, or of any other guaranty
or security for the Guaranteed Obligations, in each case whether or not in accordance with the
terms hereof or such Credit Document, such Swap Agreement or any agreement relating to such other
guaranty or security; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any
time being found to be illegal, invalid or unenforceable in any respect; (iv) the application of
payments received from any source (other than payments received pursuant to the other Credit
Documents or any of the Swap Agreements or from the proceeds of any security for the Guaranteed
Obligations, except to the extent such security also serves as collateral for indebtedness other
than the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed
Obligations, even though any Beneficiary might have elected to apply such payment to any part or
all of the Guaranteed Obligations; (v) any Beneficiary’s consent to the change, reorganization or
termination of the corporate structure or existence of Holdings or any of its Subsidiaries and to
any corresponding restructuring of the Guaranteed Obligations; (vi) any failure to perfect or
continue perfection of a security interest in any collateral which secures any of the Guaranteed
Obligations; (vii) any

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defenses, set-offs or counterclaims which any Borrower may allege or assert against any
Beneficiary in respect of the Guaranteed Obligations, including failure of consideration, breach of
warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury;
and (viii) any other act or thing or omission, or delay to do any other act or thing, which may or
might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the
Guaranteed Obligations.

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

     7.6. Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations
shall have been indefeasibly paid in full and the Revolving Commitments shall have terminated and
all Letters of Credit shall have expired or been cancelled, each Guarantor hereby waives any claim,
right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against any
Borrower or any other Guarantor or any of its assets in connection with this Guaranty or the
performance by such Guarantor of its obligations hereunder, in each case whether such claim, right
or remedy arises in equity, under contract, by statute, under common law or otherwise and including
without limitation (a) any right of subrogation, reimbursement or indemnification that such
Guarantor now has or may hereafter have against

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

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

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

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

     7.10. Financial Condition of Borrowers. Any Credit Extension may be made to any Borrower or
continued from time to time, and any Swap Agreements may be entered into from time to time, in each
case without notice to or authorization from any Guarantor regardless of the financial or other
condition of such Borrower at the time of any such grant or continuation or at

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the time such Swap Agreement is entered into, as the case may be. No Beneficiary shall have
any obligation to disclose or discuss with any Guarantor its assessment, or any Guarantor’s
assessment, of the financial condition of any Borrower. Each Guarantor has adequate means to
obtain information from any Borrower on a continuing basis concerning the financial condition of
such Borrower and its ability to perform its obligations under the Credit Documents and the Swap
Agreements, and each Guarantor assumes the responsibility for being and keeping informed of the
financial condition of any Borrower and of all circumstances bearing upon the risk of nonpayment of
the Guaranteed Obligations. Each Guarantor hereby waives and relinquishes any duty on the part of
any Beneficiary to disclose any matter, fact or thing relating to the business, operations or
conditions of any Borrower now known or hereafter known by any Beneficiary.

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

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

          (c) In the event that all or any portion of the Guaranteed Obligations are paid by any
Borrower, the obligations of Guarantors hereunder shall continue and remain in full force and
effect or be reinstated, as the case may be, in the event that all or any part of such payment(s)
are rescinded or recovered directly or indirectly from any Beneficiary as a preference, fraudulent
transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute
Guaranteed Obligations for all purposes hereunder.

     7.12. Discharge of Guaranty Upon Sale of Guarantor. If all of the Equity Interests of any
Guarantor or any of its successors in interest hereunder shall be sold or otherwise disposed of
(including by merger or consolidation) in accordance with the terms and conditions hereof, the

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Guaranty of such Guarantor or such successor in interest, as the case may be, hereunder shall
automatically be discharged and released without any further action by any Beneficiary or any other
Person effective as of the time of such sale.

SECTION 8. EVENTS OF DEFAULT AND REMEDIES

     8.1. Events of Default. Any of the following shall constitute an Event of Default:

          (a) Non-Payment. Any Borrower or any other Credit Party fails to pay (i) when and as required
to be paid herein, any amount of principal of any Loan, or (ii) within five (5) Business Days after
the same becomes due, any interest on any Loan or any other amount payable hereunder or with
respect to any other Credit Document; or

          (b) Specific Covenants. Company fails to perform or observe any term, covenant or agreement
contained in any of Sections 2.6, 5.3(a) or 5.5(a) (solely with respect to Holdings and Company) or
Section 6; provided that any Event of Default under Section 6.10 is subject to cure as
contemplated by Section 8.3; or

          (c) Other Defaults. Any Credit Party fails to perform or observe any other covenant or
agreement (not specified in Section 8.1(a) or (b) above) contained in any Credit Document on its
part to be performed or observed and such failure continues for thirty (30) days after notice
thereof by the Administrative Agent to Company; or

          (d) Representations and Warranties. Any representation, warranty, certification or statement
of fact made or deemed made by or on behalf of Company or any other Credit Party herein, in any
other Credit Document, or in any document required to be delivered in connection herewith or
therewith shall be incorrect or misleading in any material respect when made or deemed made; or

          (e) Cross-Default. Any Credit Party or any Subsidiary (i) fails to make any payment beyond
the applicable grace period with respect thereto, if any (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than
Indebtedness hereunder) having an aggregate principal amount of not less than the Threshold Amount,
or (ii) fails to observe or perform any other agreement or condition relating to any such
Indebtedness, or any other event occurs, the effect of which default or other event is to cause, or
to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required,
such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically
or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made,
prior to its stated maturity; provided that this clause (e)(ii) 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, if such sale or transfer is permitted hereunder and under the
documents providing for such Indebtedness; or

          (f) Insolvency Proceedings, Etc. Any Credit Party or any of its Subsidiaries institutes or
consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment
for the benefit of creditors; or applies for or consents to the appointment of any

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receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator,
administrative receiver or similar officer for it or for all or any material part of its property;
or any receiver, trustee, custodian, conservator, liquidator, rehabilitator, administrator,
administrative receiver or similar officer is appointed without the application or consent of such
Person and the appointment continues undischarged or unstayed for sixty (60) calendar days; or any
proceeding under any Debtor Relief Law relating to any such Person or to all or any material part
of its property is instituted without the consent of such Person and continues undismissed or
unstayed for sixty (60) calendar days, or an order for relief is entered in any such proceeding; or

          (g) Inability to Pay Debts; Attachment. (i) Any Credit Party or any Subsidiary becomes unable
or admits in writing its inability or fails generally to pay its debts in excess of the Threshold
Amount as they become due, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of the Credit Parties,
taken as a whole, and is not released, vacated or fully bonded within sixty (60) days after its
issue or levy; or

          (h) Judgments. There is entered against any Credit Party or any Subsidiary a final judgment
or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the
extent not covered by independent third-party insurance as to which the insurer has been notified
of such judgment or order and has not denied coverage) and such judgment or order shall not have
been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of sixty
(60) consecutive days; or

          (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan
which has resulted or could reasonably be expected to result in liability of any Credit Party under
Title IV of ERISA in an aggregate amount which could reasonably be expected to result in a Material
Adverse Effect, or (ii) any Credit Party or any ERISA Affiliate fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount which could
reasonably be expected to result in a Material Adverse Effect; or

          (j) Invalidity of Credit Documents. Any material provision of any Credit Document, at any
time after its execution and delivery and for any reason other than as expressly permitted
hereunder or thereunder (including as a result of a transaction permitted under Section 6.4 or 6.5)
or as a result of acts or omissions by Administrative Agent or any Lender or the satisfaction in
full of all the Obligations, ceases to be in full force and effect; or any Credit Party contests in
writing the validity or enforceability of any provision of any Credit Document; or any Credit Party
denies in writing that it has any or further liability or obligation under any Credit Document
(other than as a result of repayment in full of the Obligations and termination of all
Commitments), or purports in writing to revoke or rescind any Credit Document; or

          (k) Change of Control. There occurs any Change of Control; or

          (l) Collateral Documents. (i) Any Collateral Document after delivery thereof shall for any
reason (other than pursuant to the terms thereof including as a result of a transaction permitted
under Section 6.4 or 6.5) cease to create a valid and perfected lien, with the priority

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required by the Collateral Documents, (or other security purported to be created on the
applicable Collateral) on and security interest in any material portion of the Collateral purported
to be covered thereby, subject to Liens permitted under Section 7.1, except to the extent that any
such loss of perfection or priority results from the failure of Administrative Agent or the
Collateral Agent to maintain possession of certificates actually delivered to it representing
securities pledged under the Collateral Documents or to file UCC continuation statements and except
as to Collateral consisting of real property to the extent that such losses are covered by a
lender’s title insurance policy and such insurer has not denied coverage, or (ii) any of the Equity
Interests of Company ceasing to be pledged pursuant to the Pledge and Security Agreement free of
Liens other than Liens created by the Pledge and Security Agreement or any nonconsensual Liens
arising solely by operation of Law; or

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

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

     8.3. Company’s Right to Cure. (a) Notwithstanding anything to the contrary contained in
Section 8.1, in the event of any Event of Default under any covenant set forth in Section 6.10 and
until the expiration of the tenth (10th) day after the date on which financial statements are
required to be delivered with respect to the applicable fiscal quarter hereunder, Holdings may
engage in a Permitted Equity Issuance to any of the Equity Investors and apply the amount of the

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Net Cash Proceeds thereof to increase Consolidated EBITDA with respect to such applicable
quarter; provided that such Net Cash Proceeds (i) are actually received by Company
(including through capital contribution of such Net Cash Proceeds by Holdings to Company) no later
than ten (10) days after the date on which financial statements are required to be delivered with
respect to such fiscal quarter hereunder, (ii) are Not Otherwise Applied and (iii) do not exceed
the aggregate amount necessary to cure such Event of Default under Section 6.10 for any applicable
period. The parties hereby acknowledge that this Section 8.3(a) may not be relied on for purposes
of calculating any financial ratios other than as applicable to Section 6.10 and shall not result
in any adjustment to any amounts other than the amount of the Consolidated EBITDA referred to in
the immediately preceding sentence.

          (b) In each period of four fiscal quarters, there shall be at least one (1) fiscal quarter in
which no cure set forth in Section 8.3(a) is made. In each period of eight fiscal quarters, there
shall be at least four (4) consecutive fiscal quarters in which no cure set forth in Section 8.3(a)
is made.

SECTION 9. AGENTS

     9.1. Appointment of Agents. Credit Suisse is hereby appointed Syndication Agent hereunder,
and each Lender hereby authorizes Credit Suisse to act as Syndication Agent in accordance with the
terms hereof and the other Credit Documents. BNP is hereby appointed Administrative Agent and
Collateral Agent hereunder and under the other Credit Documents and each Lender hereby authorizes
BNP to act as Administrative Agent and Collateral Agent in accordance with the terms hereof and the
other Credit Documents. Each of GSLP, JPMorgan and BNPP SC is hereby appointed Auction Manager
hereunder, and each Lender hereby authorizes each Auction Manager to act as its agent in accordance
with the terms hereof. The Lenders agree that each Auction Manager shall have solely the
obligations in its capacity as Auction Manager as are specifically described in this Agreement and
shall be entitled to all the benefits of this Section 9, as applicable. Each Agent hereby agrees
to act in its capacity as such upon the express conditions contained herein and the other Credit
Documents, as applicable. The provisions of this Section 9 are solely for the benefit of the
Agents and no Lender or Credit Party shall have any rights as a third party beneficiary of any of
the provisions hereof. In performing its functions and duties hereunder, each Agent shall act
solely as an agent of Lenders and does not assume and shall not be deemed to have assumed any
obligation towards or relationship of agency or trust with or for Holdings or any of its
Subsidiaries. Syndication Agent, without consent of or notice to any party hereto, may assign any
and all of its rights or obligations hereunder to any of its Affiliates. As of the Effective Date,
Credit Suisse in its capacity as Syndication Agent shall not have any obligations but shall be
entitled to all benefits of this Section 9.

     9.2.
Powers and Duties. Each Lender irrevocably authorizes each Agent to take such action on
such Lender’s behalf and to exercise such powers, rights and remedies hereunder and under the other
Credit Documents as are specifically delegated or granted to such Agent by the terms hereof and
thereof, together with such powers, rights and remedies as are reasonably incidental thereto. Each
Agent shall have only those duties and responsibilities that are expressly specified herein and the
other Credit Documents. Each Agent may exercise such powers, rights

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and remedies and perform such duties by or through its officers, directors, agents,
sub-agents, employees or affiliates. For the avoidance of doubt, in performing its functions and
duties hereunder, no Agent assumes and nor shall any Agent be deemed to have assumed any obligation
towards or relationship of agency or trust with or for Holdings or any of its Subsidiaries.

     9.3. General Immunity.

          (a) No Responsibility for Certain Matters. No Agent nor any of its officers,
partners, directors, employees, advisors, attorneys or agents shall be responsible to any Lender
for the execution, effectiveness, genuineness, validity, enforceability, collectability or
sufficiency hereof or any other Credit Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or in any financial or
other statements, instruments, reports or certificates or any other documents furnished or made by
any Agent to Lenders or by or on behalf of any Credit Party, any Lender or any person providing the
Settlement Service to any Agent or any Lender in connection with the Credit Documents and the
transactions contemplated hereby or thereby or for the financial condition or business affairs of
any Credit Party or any other Person liable for the payment of any Obligations, nor shall any Agent
be required to ascertain or inquire as to the performance or observance of any of the terms,
conditions, provisions, covenants or agreements contained in any of the Credit Documents or as to
the use of the proceeds of the Loans or as to the existence or possible existence of any Event of
Default or Default or to make any disclosures with respect to the foregoing. No Agent nor any of
its officers, partners, directors, employees, advisors, attorneys or agents shall be deemed to have
knowledge of any Default or Event of Default unless and until written notice thereof is given to
such Agent by a Borrower or a Lender. Anything contained herein to the contrary notwithstanding,
the duties of the Administrative Agent shall be administrative in nature and the Administrative
Agent shall not have any liability arising from confirmations of the amount of outstanding Loans or
the Letter of Credit Usage or the component amounts thereof.

          (b) Exculpatory Provisions. No Agent nor any of its officers, partners, directors,
employees, advisors, attorneys or agents shall be liable to any Lender for any action taken or
omitted by any Agent under or in connection with any of the Credit Documents except to the extent
caused by its or their gross negligence or willful misconduct (as determined by a court of
competent jurisdiction in a final and non-appealable decision). Each Agent shall be entitled to
refrain from any act or the taking of any action (including the failure to take an action) in
connection herewith or any of the other Credit Documents or from the exercise of any power,
discretion or authority vested in it hereunder or thereunder unless and until such Agent shall have
received instructions in respect thereof from Requisite Lenders (or such other Lenders as may be
required to give such instructions under Section 10.5) and, upon receipt of such instructions from
Requisite Lenders (or such other Lenders, as the case may be), such Agent shall be entitled to act
or refrain from acting, or to exercise such power, discretion or authority, in accordance with such
instructions. Without prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any communication, instrument or
document believed by it to be genuine and correct and to have been signed or sent by the proper
Person or Persons, including any settlement confirmation or other communication issues by any
Settlement Service, and shall be entitled to rely and shall be protected in relying on opinions and
judgments of attorneys (who may be attorneys for Holdings and its Subsidiaries), accountants,
experts and other professional advisors selected by it; and (ii) no Lender shall have any right of
action

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whatsoever against any Agent as a result of such Agent acting or refraining from acting
hereunder or any of the other Credit Documents in accordance with the instructions of Requisite
Lenders (or such other Lenders as may be required to give such instructions under Section 10.5).

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

     9.4. Agents Entitled to Act as Lender.The agency hereby created shall in no way impair or
affect any of the rights and powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. With respect to its participation in the Loans and the
Letters of Credit, each Agent shall have the same rights and powers hereunder as any other Lender
and may exercise the same as if it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” shall, unless the context clearly otherwise indicates, include
each Agent in its individual capacity. Any Agent and its Affiliates may accept deposits from, lend
money to, own securities of, and generally engage in any kind of banking, trust, financial advisory
or other business with Holdings or any of its Affiliates as if it were not performing the duties
specified herein, and may accept fees and other consideration from Borrowers for services in
connection herewith and otherwise without having to account for the same to Lenders.

     9.5. Lenders’ Representations, Warranties and Acknowledgment.

          (a) Each Lender represents and warrants that it has made its own independent investigation of
the financial condition and affairs of Holdings and its Subsidiaries in connection

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

          (b) Each Lender, by delivering its signature page to this Agreement, an Assignment Agreement,
the Amendment and Restatement Agreement or a Joinder Agreement and funding its Tranche C Term Loan
and/or Revolving Loans on the Closing Date, or by converting its Tranche C Term Loans into Tranche
C-2 Term Loans, or by converting its Revolving Loans (as defined in the Existing ARCA) into 2015
Revolving Loans, or by the funding of any New Term Loans or New Revolving Loans, as the case may
be, shall be deemed to have acknowledged receipt of, and consented to and approved, each Credit
Document and each other document required to be approved by any Agent, Requisite Lenders or
Lenders, as applicable on the Closing Date or as of the date of conversion or as of the date of
funding of such New Loans.

     9.6.
Right to Indemnity. Each Lender, in proportion to its Pro Rata Share (determined as of the
time such indemnity is sought, it being understood and agreed that if any Revolving Commitment
Termination Date shall have occurred, with respect to the effected Class of Revolving Loans or
Revolving Commitments, such determination shall be made immediately prior to giving effect
thereto), severally agrees to indemnify each Agent (and any affiliate thereof), to the extent that
such Agent (or such affiliate) shall not have been reimbursed by any Credit Party, for and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses (including counsel fees and disbursements) or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by or asserted against such Agent (or any affiliate
thereof) in exercising its powers, rights and remedies or performing its duties hereunder or under
the other Credit Documents or otherwise in its capacity as such Agent in any way relating to or
arising out of this Agreement or the other Credit Documents; provided, no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from such Agent’s (or such
affiliate’s) gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision). If any indemnity furnished to any Agent for
any purpose shall, in the opinion of such Agent, be insufficient or become impaired, such Agent may
call for additional indemnity and cease, or not commence, to do the acts indemnified against until
such additional indemnity is furnished; provided, in no event shall this sentence require
any Lender to indemnify any Agent against any liability, obligation, loss, damage, penalty, action,
judgment, suit, cost, expense or disbursement in excess of such Lender’s Pro Rata Share thereof
(determined as of the time such indemnity is sought, it being understood and agreed that if any
Revolving Commitment Termination Date shall have occurred, with respect to the effected Class of
Revolving Loans or Revolving Commitments, such determination shall be made immediately prior to
giving effect thereto); and provided further, this sentence shall not be deemed to
require any Lender to indemnify any Agent against any liability, obligation, loss, damage, penalty,
action, judgment,

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suit, cost, expense or disbursement described in the proviso in the immediately preceding
sentence.

     9.7. Successor Administrative Agent, Collateral Agent and Swing Line Lender. Administrative
Agent may resign at any time by giving thirty days’ prior written notice thereof to Lenders and
Company, and Administrative Agent may be removed at any time with or without cause by an instrument
or concurrent instruments in writing delivered to Company and Administrative Agent and signed by
Requisite Lenders. Upon any such notice of resignation or any such removal, Requisite Lenders
shall have the right, upon five Business Days’ notice to Company, to appoint a successor
Administrative Agent. Upon the acceptance of any appointment as Administrative Agent hereunder by
a successor Administrative Agent, that successor Administrative Agent shall thereupon succeed to
and become vested with all the rights, powers, privileges and duties of the retiring or removed
Administrative Agent and the retiring or removed Administrative Agent shall promptly (a) transfer
to such successor Administrative Agent all sums, Securities and other items of Collateral held
under the Collateral Documents, together with all records and other documents necessary or
appropriate in connection with the performance of the duties of the successor Administrative Agent
under the Credit Documents, and (b) execute and deliver to such successor Administrative Agent such
amendments to financing statements, and take such other actions, as may be necessary or appropriate
in connection with the assignment to such successor Administrative Agent of the security interests
created under the Collateral Documents (in the case of clauses (a) and (b), at the sole cost and
expense of the Borrowers), whereupon such retiring or removed Administrative Agent shall be
discharged from its duties and obligations hereunder. After any retiring or removed Administrative
Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent hereunder. Any resignation or removal of BNP as Administrative Agent pursuant
to this Section shall also constitute the resignation or removal of BNP or its successor as
Collateral Agent, and any successor Administrative Agent appointed pursuant to this Section shall,
upon its acceptance of such appointment, become the successor Collateral Agent for all purposes
hereunder. Any resignation or removal of BNP or its successor as Administrative Agent pursuant to
this Section shall also constitute the resignation or removal of BNP or its successor as Swing Line
Lender, and any successor Administrative Agent appointed pursuant to this Section shall, upon its
acceptance of such appointment, become the successor Swing Line Lender for all purposes hereunder.
In such event (i) Borrowers shall prepay any outstanding Swing Line Loans made by the retiring or
removed Administrative Agent in its capacity as Swing Line Lender, (ii) upon such prepayment, the
retiring or removed Administrative Agent and Swing Line Lender shall surrender any Swing Line Note
held by it to Borrowers for cancellation, and (iii) Borrowers shall issue, if so requested by
successor Administrative Agent and Swing Line Loan Lender, a new Swing Line Note to the successor
Administrative Agent and Swing Line Lender, in the principal amount of the Swing Line Loan Sublimit
then in effect and with other appropriate insertions. If no successor Administrative Agent has
been appointed pursuant to the preceding sentences by the 45th day after the date of such retiring
Administrative Agent’s notice of resignation, the Administrative Agent’s resignation shall become
effective and the Requisite Lenders shall thereafter perform all the duties of the Administrative
Agent hereunder and/or under any other Credit Document until such time, if any, as either (1) the
Requisite Lenders appoint a successor Administrative Agent (which appointment shall be subject to
the prior written approval of the Borrower (such approval not to

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be unreasonably withheld) unless an Event of Default has occurred and is continuing) or (2)
the Company appoints a successor Administrative Agent so long (x) as the Lenders receive at least
ten Business Days’ notice of such appointment (which notice may be given at any time following the
30th day after the retiring Administrative Agent’s notice of resignation) and (y) the
Company has not received a written notice from the Requisite Lenders stating that the Requisite
Lenders object to such appointment.

     9.8. Collateral Documents and Guaranty.

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

          (b) Right to Realize on Collateral and Enforce Guaranty. Anything contained in any of
the Credit Documents to the contrary notwithstanding, each Borrower, Administrative Agent,
Collateral Agent, each Lender and each other Secured Party (by its acceptance of the benefits of
the Guaranty, the Collateral and the Collateral Documents) hereby agree that (i) no Lender shall
have any right individually to realize upon any of the Collateral or to enforce the Guaranty, it
being understood and agreed that all powers, rights and remedies hereunder may be exercised solely
by Administrative Agent, on behalf of Lenders in accordance with the terms hereof and all powers,
rights and remedies under the Collateral Documents may be exercised solely by Collateral Agent, and
(ii) in the event of a foreclosure by Collateral Agent on any of the Collateral pursuant to a
public or private sale, Collateral Agent or any Lender or other Secured Party may be the purchaser
of any or all of such Collateral at any such sale and Collateral Agent, as agent for and
representative of Secured Parties (but not any Lender or Lenders in its or their respective
individual capacities unless Requisite Lenders shall otherwise agree in writing) shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as
a credit on account of the purchase price for any collateral payable by Collateral Agent at such
sale.

SECTION 10. MISCELLANEOUS

     10.1. Notices. (a) Notices Generally. Any notice or other communication herein
required or permitted to be given to a Credit Party, Syndication Agent, Collateral Agent,
Administrative

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Agent, Swing Line Lender or Issuing Bank, shall be sent to such Person’s address as set forth
on Appendix B or in the other relevant Credit Document, and in the case of any Lender, the address
as indicated on Appendix B or otherwise indicated to Administrative Agent in writing. Except as
otherwise set forth in paragraph (b) below, each notice hereunder shall be in writing and may be
personally served, telexed or sent by telefacsimile or United States mail or courier service and
shall be deemed to have been given when delivered in person or by courier service and signed for
against receipt thereof, upon receipt of telefacsimile or telex, or three Business Days after
depositing it in the United States mail with postage prepaid and properly addressed;
provided, no notice to any Agent shall be effective until received by such Agent;
provided further, any such notice or other communication shall at the request of
the Administrative Agent be provided to any sub-agent appointed pursuant to Section 9.3(c) hereto
as designated by the Administrative Agent from time to time.

          (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Bank hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent,
provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank
pursuant to Section 2 if such Lender or the Issuing Bank, as applicable, has notified
Administrative Agent that it is incapable of receiving notices under such Section by electronic
communication. Administrative Agent or any Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications. Unless Administrative Agent otherwise prescribes,
(i) notices and other communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement),
provided that if such notice or other communication is not sent during the normal business
hours of the recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause (i) of notification
that such notice or communication is available and identifying the website address therefor.

     10.2. Expenses. Whether or not the transactions contemplated hereby shall be consummated,
Borrowers agree to pay promptly (a) all the actual and reasonable costs and expenses of preparation
of the Credit Documents and any consents, amendments, waivers or other modifications thereto; (b)
all the costs of furnishing all opinions by counsel for Borrowers and the other Credit Parties; (c)
the reasonable fees, expenses and disbursements of counsel to Agents (in each case including
allocated costs of internal counsel) in connection with the negotiation, preparation, execution and
administration of the Credit Documents and any consents, amendments, waivers or other modifications
thereto and any other documents or matters requested by Company; (d) all the actual costs and
reasonable expenses of creating and perfecting Liens in favor of Collateral Agent, for the benefit
of Lenders pursuant hereto, including filing and recording fees, expenses and taxes, stamp or
documentary taxes, search fees, title insurance premiums and reasonable fees, expenses and
disbursements of counsel to each Agent and of counsel providing any opinions that any Agent or
Requisite Lenders may request in

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respect of the Collateral or the Liens created pursuant to the Collateral Documents; (e) all
the actual costs and reasonable fees, expenses and disbursements of any auditors, accountants,
consultants or appraisers; (f) all the actual costs and reasonable expenses (including the
reasonable fees, expenses and disbursements of any appraisers, consultants, advisors and agents
employed or retained by Collateral Agent and its counsel) in connection with the custody or
preservation of any of the Collateral; (g) all other actual and reasonable costs and expenses
incurred by each Agent in connection with the syndication of the Loans and Commitments and the
negotiation, preparation and execution of the Credit Documents and any consents, amendments,
waivers or other modifications thereto and the transactions contemplated thereby; and (h) after the
occurrence of a Default or an Event of Default, all costs and expenses, including reasonable
attorneys’ fees (including allocated costs of internal counsel) and costs of settlement, incurred
by any Agent and Lenders in enforcing any Obligations of or in collecting any payments due from any
Credit Party hereunder or under the other Credit Documents by reason of such Default or Event of
Default (including in connection with the sale of, collection from, or other realization upon any
of the Collateral or the enforcement of the Guaranty) or in connection with any refinancing or
restructuring of the credit arrangements provided hereunder in the nature of a “work-out” or
pursuant to any insolvency or bankruptcy cases or proceedings.

     10.3. Indemnity.

          (a) In addition to the payment of expenses pursuant to Section 10.2, whether or not the
transactions contemplated hereby shall be consummated, each Credit Party agrees to defend (subject
to Indemnitees’ selection of counsel), indemnify, pay and hold harmless, each Agent and Lender and
the officers, partners, members, directors, trustees, advisors, employees, agents, sub-agents,
attorneys and Affiliates of each Agent and each Lender (each, an “Indemnitee”), from and against
any and all Indemnified Liabilities; provided, no Credit Party shall have any obligation to
any Indemnitee hereunder with respect to any Indemnified Liabilities to the extent such Indemnified
Liabilities arise from the gross negligence or willful misconduct of that Indemnitee (as determined
by a court of competent jurisdiction in a final and non-appealable decision). To the extent that
the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 10.3 may be
unenforceable in whole or in part because they are violative of any law or public policy, the
applicable Credit Party shall contribute the maximum portion that it is permitted to pay and
satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities
incurred by Indemnitees or any of them.

          (b) To the extent permitted by applicable law, no Credit Party shall assert, and each Credit
Party hereby waives, any claim against each Lender, each Agent and their respective Affiliates,
directors, employees, attorneys, agents or sub-agents, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or
not the claim therefor is based on contract, tort or duty imposed by any applicable legal
requirement) arising out of, in connection with, arising out of, as a result of, or in any way
related to, this Agreement or any Credit Document or any agreement or instrument contemplated
hereby or thereby or referred to herein or therein, the transactions contemplated hereby or
thereby, any Loan or the use of the proceeds thereof or any act or omission or event occurring in
connection therewith, and Holdings and each Borrower hereby waives, releases and agrees not to sue
upon any such claim or any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor. No Credit Party shall have any liability for any special,

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punitive, indirect or consequential damages relating to this Agreement or any other Credit
Document or arising out of its activities in connection herewith or therewith (whether before or
after the Closing Date). If any amounts due under this Section 10.3 shall be have been paid after
demand therefor, the applicable Indemnitee shall promptly refund such amount to the extent that
there is a final and non-appealable judicial or arbitral determination that such Indemnitee was not
entitled to indemnification or contribution rights with respect to such payment pursuant to the
express terms of this Section 10.3.

     10.4. Set-Off. In addition to any rights now or hereafter granted under applicable law and not
by way of limitation of any such rights, upon the occurrence of any Event of Default each Lender is
hereby authorized by each Credit Party at any time or from time to time subject to the consent of
Administrative Agent (such consent not to be unreasonably withheld or delayed), without notice to
any Credit Party or to any other Person (other than Administrative Agent), any such notice being
hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general
or special, including Indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts) and any other Indebtedness at any time held or owing
by such Lender to or for the credit or the account of any Credit Party against and on account of
the obligations and liabilities of any Credit Party to such Lender hereunder, the Letters of Credit
and participations therein and under the other Credit Documents, including all claims of any nature
or description arising out of or connected hereto, the Letters of Credit and participations therein
or with any other Credit Document, irrespective of whether or not (a) such Lender shall have made
any demand hereunder or (b) the principal of or the interest on the Loans or any amounts in respect
of the Letters of Credit or any other amounts due hereunder shall have become due and payable
pursuant to Section 2 and although such obligations and liabilities, or any of them, may be
contingent or unmatured.

     10.5. Amendments and Waivers.

          (a) Requisite Lenders’ Consent. Subject to the additional requirements of Sections
10.5(b) and 10.5(c), no amendment, modification, termination or waiver of any provision of the
Credit Documents, or consent to any departure by any Credit Party therefrom, shall in any event be
effective without the written concurrence of the Requisite Lenders.

          (b) Affected Lenders’ Consent. Without the written consent of each Lender (other
than a Defaulting Lender) that would be affected thereby, no amendment, modification, termination,
or consent shall be effective if the effect thereof would:

          (i) extend the scheduled final maturity of any Loan or Note;

          (ii) waive, reduce or postpone any scheduled repayment (but not prepayment);

          (iii) extend the stated expiration date of any Letter of Credit beyond the Revolving
Commitment Termination Date;

          (iv) reduce the rate of interest on any Loan (other than any waiver of any increase in
the interest rate applicable to any Loan pursuant to Section 2.10) or any fee or any premium
payable hereunder;

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          (v) extend the time for payment of any such interest or fees;

          (vi) reduce the principal amount of any Loan or any reimbursement obligation in respect
of any Letter of Credit;

          (vii) amend, modify, terminate or waive any provision of this Section 10.5(b), Section
10.5(c) or any other provision of this Agreement that expressly provides that the consent of
all Lenders is required;

          (viii) amend the definition of “Requisite Lenders” or “Pro Rata Share”;
provided, with the consent of Requisite Lenders, additional extensions of credit
pursuant hereto may be included in the determination of “Requisite Lenders” or “Pro Rata
Share” on substantially the same basis as the Term Loan Commitments, the Term Loans, the
Revolving Commitments and the Revolving Loans are included on the Closing Date; or

          (ix) release all or substantially all of the Collateral or all or substantially all of
the Guarantors from the Guaranty except as expressly provided in the Credit Documents.

          (c) Other Consents. No amendment, modification, termination or waiver of any
provision of the Credit Documents, or consent to any departure by any Credit Party therefrom,
shall:

          (i) increase any Revolving Commitment of any Lender over the amount thereof then in
effect without the consent of such Lender; provided, no amendment, modification or
waiver of any condition precedent, covenant, Default or Event of Default shall constitute an
increase in any Revolving Commitment of any Lender;

          (ii) amend, modify, terminate or waive any provision hereof relating to the Swing Line
Sublimit or the Swing Line Loans without the consent of Swing Line Lender;

          (iii) alter the required application of any repayments or prepayments as between
Classes pursuant to Section 2.15 without the consent of Lenders holding more than 50% of the
aggregate Tranche C Term Loan Exposure of all Lenders, Tranche C-2 Term Loan Exposure of all
Lenders, Revolving Exposure of all Lenders or New Term Loan Exposure of all Lenders, as
applicable, of each Class which is being allocated a lesser repayment or prepayment as a
result thereof; provided, Requisite Lenders may waive, in whole or in part, any
prepayment so long as the application, as between Classes, of any portion of such prepayment
which is still required to be made is not altered;

          (iv) amend, modify, terminate or waive any obligation of Lenders relating to the
purchase of participations in Letters of Credit as provided in Section 2.4(e), any other
provision contained in Section 2.4 or any other provision hereof as the same applies to the
rights or obligations of any Issuing Bank, in each case without the written consent of
Administrative Agent and of Issuing Bank; or

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          (v) amend, modify, terminate or waive any provision of Section 9 as the same applies to
any Agent, or any other provision hereof as the same applies to the rights or obligations of
any Agent, in each case without the consent of such Agent.

          (d) Execution of Amendments, etc. Administrative Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or
consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or demand on any Credit
Party in any case shall entitle any Credit Party to any other or further notice or demand in
similar or other circumstances. Any amendment, modification, termination, waiver or consent
effected in accordance with this Section 10.5 shall be binding upon each Lender at the time
outstanding, each future Lender and, if signed by a Credit Party, on such Credit Party.

     10.6.
Successors and Assigns; Participations. (a) Generally. This Agreement shall be
binding upon the parties hereto and their respective successors and assigns and shall inure to the
benefit of the parties hereto and the successors and assigns of Lenders. No Credit Party’s rights
or obligations hereunder nor any interest therein may be assigned or delegated by any Credit Party
without the prior written consent of all Lenders. Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby and, to the extent expressly contemplated hereby,
Affiliates of each of the Agents and Lenders) any legal or equitable right, remedy or claim under
or by reason of this Agreement.

          (b) Register. Each Borrower, Administrative Agent and Lenders shall deem and treat
the Persons listed as Lenders in the Register as the holders and owners of the corresponding
Commitments and Loans listed therein for all purposes hereof, and no assignment or transfer of any
such Commitment or Loan shall be effective, in each case, unless and until recorded in the Register
following receipt of an Assignment Agreement effecting the assignment or transfer thereof as
provided in Section 10.6(d). Each assignment shall be recorded in the Register on the “Effective
Date” specified in the applicable Assignment Agreement, prompt notice thereof shall be provided to
Company and a copy of such Assignment Agreement shall be maintained. The date of such recordation
of a transfer shall be referred to herein as the “Assignment Effective Date.” Any request,
authority or consent of any Person who, at the time of making such request or giving such authority
or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent
holder, assignee or transferee of the corresponding Commitments or Loans.

          (c) Right to Assign. Each Lender shall have the right at any time to sell, assign or
transfer all or a portion of its rights and obligations under this Agreement, including, without
limitation, all or a portion of its Commitments or Loans owing to it or other Obligations
(provided, however, that each such assignment shall be of a uniform, and not
varying, percentage of all rights and obligations under and in respect of any Loan and any related
Commitments):

          (i) to any Person meeting the criteria of clause (i) of the definition of the term of
“Eligible Assignee” upon the giving of notice to Company and Administrative Agent;
provided that in the case of any assignment of Revolving Loans or Revolving
Commitments to such Person (unless such Person is already a Lender with a Revolving

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Commitment), such assignment shall require the consent of the Issuing Bank, such
consent not to be unreasonably withheld or delayed,

          (ii) to any Person meeting the criteria of clause (ii) of the definition of the term of
“Eligible Assignee” upon giving of notice to Company and Administrative Agent and, in the
case of assignments of Revolving Loans, Revolving Commitments or Term Loans to any such
Person (except in the case of assignments made by or to BNP), consented to by each of
Company, Administrative Agent and, other than in respect of Term Loans, Issuing Bank (each
such consent not to be (x) unreasonably withheld or delayed or, (y) in the case of Company,
required at any time an Event of Default under Section 8.1(a) or (f) shall have occurred and
then be continuing); provided, further, each such assignment pursuant to
this Section 10.6(c)(ii) shall be in an aggregate amount of not less than (A) $5,000,000 (or
such lesser amount as may be agreed to by Company and Administrative Agent or as shall
constitute the aggregate amount of the Revolving Commitments and Revolving Loans of the
assigning Lender) with respect to the assignment of the Revolving Commitments and Revolving
Loans and (B) $1,000,000 (or such lesser amount as may be agreed to by Company and
Administrative Agent or as shall constitute the aggregate amount of the Tranche C Term Loan
or New Term Loans of a Series of the assigning Lender) with respect to the assignment of
Term Loans, and

          (iii) to any Person meeting the criteria of clause (iii) of the definition of the term
“Eligible Assignee” so long as such sales, assignments or transfers are in accordance with
the procedures set forth in Section 10.6(i) hereof.

          (d) Mechanics. Assignments of Term Loans, Revolving Loans and Revolving Commitments
by Lenders may be made via an electronic settlement system acceptable to Administrative Agent as
designated in writing from time to time to the Lenders by Administrative Agent (the “Settlement
Service”). Each such assignment shall be effected by the assigning Lender and proposed assignee
pursuant to the procedures then in effect under the Settlement Service, which procedures shall be
consistent with the other provisions of this Section 10.6. Each assignor Lender and proposed
assignee shall comply with the requirements of the Settlement Service in connection with effecting
any transfer of Loans pursuant to the Settlement Service. Assignments and assumptions of Term
Loans, Revolving Loans and Revolving Commitments (regardless of whether the Settlement Service is
utilized) shall require the execution and delivery to the Administrative Agent of an Assignment
Agreement. Assignments made pursuant to the foregoing provision shall be effective as of the
Assignment Effective Date. In connection with all assignments there shall be delivered to
Administrative Agent such forms, certificates or other evidence, if any, with respect to United
States federal income tax withholding matters as the assignee under such Assignment Agreement may
be required to deliver pursuant to Section 2.20(c). A processing fee of $3,500 will be required to
be paid to Administrative Agent in connection with any assignments (other than contemporaneous
assignments by or to two or more Related Funds).

          (e) Representations and Warranties of Assignee. Each Lender, upon execution and
delivery hereof or upon succeeding to an interest in the Commitments and Loans, as the case may be,
represents and warrants as of the Closing Date or as of the Assignment Effective Date that (i) it
is an Eligible Assignee; (ii) it has experience and expertise in the making of or

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investing in commitments or loans such as the applicable Commitments or Loans, as the case
may be; and (iii) it will make or invest in, as the case may be, its Commitments or Loans for its
own account in the ordinary course and without a view to distribution of such Commitments or Loans
within the meaning of the Securities Act or the Exchange Act or other federal securities laws (it
being understood that, subject to the provisions of this Section 10.6, the disposition of such
Commitments or Loans or any interests therein shall at all times remain within its exclusive
control); provided that it is acknowledged and agreed that any Person meeting the criteria
of clause (iii) of the definition of the term “Eligible Assignee” shall not be required to make the
representation and warranty set forth in the foregoing clause (ii).

          (f) Effect of Assignment. Subject to the terms and conditions of this Section 10.6,
as of the “Assignment Effective Date” (i) the assignee thereunder shall have the rights and
obligations of a “Lender” hereunder to the extent of its interest in the Loans and Commitments as
reflected in the Register and shall thereafter be a party hereto and a “Lender” for all purposes
hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations
hereunder have been assigned to the assignee, relinquish its rights (other than any rights which
survive the termination hereof under Section 10.8) and be released from its obligations hereunder
(and, in the case of an assignment covering all or the remaining portion of an assigning Lender’s
rights and obligations hereunder, such Lender shall cease to be a party hereto on the Assignment
Effective Date; provided, anything contained in any of the Credit Documents to the contrary
notwithstanding, (x) Issuing Bank shall continue to have all rights and obligations thereof with
respect to such Letters of Credit until the cancellation or expiration of such Letters of Credit
and the reimbursement of any amounts drawn thereunder and (y) such assigning Lender shall continue
to be entitled to the benefit of all indemnities hereunder as specified herein with respect to
matters arising out of the prior involvement of such assigning Lender as a Lender hereunder); (iii)
the Commitments shall be modified to reflect any Commitment of such assignee and any Revolving
Commitment of such assigning Lender, if any; and (iv) if any such assignment occurs after the
issuance of any Note hereunder, the assigning Lender shall, upon the effectiveness of such
assignment or as promptly thereafter as practicable, surrender its applicable Notes to
Administrative Agent for cancellation, and thereupon Borrowers shall issue and deliver new Notes,
if so requested by the assignee and/or assigning Lender, to such assignee and/or to such assigning
Lender, with appropriate insertions, to reflect the new Revolving Commitments and/or outstanding
Loans of the assignee and/or the assigning Lender.

          (g) Participations. Each Lender shall have the right at any time to sell one or more
participations to any Person (other than Holdings, any of its Subsidiaries or any of its
Affiliates) in all or any part of its Commitments, Loans or in any other Obligation. The holder of
any such participation, other than an Affiliate of the Lender granting such participation, shall
not be entitled to require such Lender to take or omit to take any action hereunder except with
respect to any amendment, modification or waiver that would (i) extend the final scheduled maturity
of any Loan, Note or Letter of Credit (unless such Letter of Credit is not extended beyond the
applicable Revolving Commitment Termination Date) in which such participant is participating, or
reduce the rate or extend the time of payment of interest or fees thereon (except in connection
with a waiver of applicability of any post-default increase in interest rates) or reduce the
principal amount thereof, or increase the amount of the participant’s participation over the amount
thereof then in effect (it being understood that a waiver of any Default or Event of Default or of
a mandatory reduction in the Commitment shall not constitute a change in the terms

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of such participation, and that an increase in any Commitment or Loan shall be permitted
without the consent of any participant if the participant’s participation is not increased as a
result thereof), (ii) consent to the assignment or transfer by any Credit Party of any of its
rights and obligations under this Agreement or (iii) release all or substantially all of the
Collateral under the Collateral Documents (except as expressly provided in the Credit Documents)
supporting the Loans hereunder in which such participant is participating. Borrowers agree that
each participant shall be entitled to the benefits of Sections 2.18(c), 2.19 and 2.20 to the same
extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (c)
of this Section; provided, (i) a participant shall not be entitled to receive any greater
payment under Section 2.19 or 2.20 than the applicable Lender would have been entitled to receive
with respect to the participation sold to such participant, unless the sale of the participation to
such participant is made with Company’s prior written consent and (ii) a participant that would be
a Non-US Lender if it were a Lender shall not be entitled to the benefits of Section 2.20 unless
Company is notified of the participation sold to such participant and such participant agrees, for
the benefit of the applicable Borrower, to comply with Section 2.20 as though it were a Lender. To
the extent permitted by the applicable law, each participant also shall be entitled to the benefits
of Section 10.4 as though it were a Lender, provided such Participant agrees to be subject
to Section 2.17 as though it were a Lender.

          (h) Certain Other Assignments. In addition to any other assignment permitted pursuant
to this Section 10.6, any Lender may assign and/or pledge all or any portion of its Loans, the
other Obligations owed by or to such Lender, and its Notes, if any, to secure obligations of such
Lender including, without limitation, any Federal Reserve Bank as collateral security pursuant to
Regulation A of the Board of Governors and any operating circular issued by such Federal Reserve
Bank; provided, no Lender, as between any Borrower and such Lender, shall be relieved of
any of its obligations hereunder as a result of any such assignment and pledge, and
provided further, in no event shall the applicable Federal Reserve Bank, pledgee or
trustee be considered to be a “Lender” or be entitled to require the assigning Lender to take or
omit to take any action hereunder.

          (i) Company Loan Purchases. Notwithstanding anything to the contrary contained in
this Section 10.6 or any other provision of this Agreement, so long as (x) no Default or Event of
Default has occurred and is continuing or would result therefrom and (y) at the time of and after
giving effect to such purchase and cancellation (as described below), the sum of (1) the aggregate
Unrestricted Cash and Cash Equivalents of Company and (2) the aggregate unused amount of
the Revolving Commitments would not be less than $200,000,000, Company may consummate Company Loan
Purchases on the following basis:

          (i) At any time, and from time to time on or prior to June 30, 2010, Company shall have
the right to purchase, for cash, Tranche C Term Loans up to an amount to be specified by
Company at a purchase price to be determined, in each case in accordance with the Auction
Procedures established for each such purchase; provided, that (A) Company shall be
entitled to purchase Tranche C Term Loans pursuant to this Section 10.6(i) solely pursuant
to an auction managed by an Auction Manager and shall not be permitted to purchase Tranche C
Term Loans in any other manner (including pursuant to secondary market purchases), (B) the
Auction Amount (as defined in the Auction Procedures) in respect of each Company Loan
Purchase shall be for aggregate

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cash proceeds not less than $15,000,000, (C) Company shall not purchase Tranche C Term
Loans for aggregate cash consideration in excess of $400,000,000, and (D) the proceeds of
the Revolving Loans shall not be used to fund such purchases of Tranche C Term Loans by
Company.

          (ii) In connection with any assignment pursuant to this Section 10.6(i), each assigning
Lender, on the one hand, and Company, on the other hand, acknowledges and agrees that, as of
the Company Assignment Effective Date, (A) the other party to the Company Assignment
Agreement currently may have, and later may come into possession of, information regarding
Holdings, any of Holdings’ Subsidiaries, or any of Holdings’ Affiliates, their assets, their
ability to perform their Obligations or any other matter that is not known to it and that
may be material to a decision to participate in any Auction or enter into the Company
Assignment Agreement or any of the transactions contemplated thereby (the “Excluded
Information”), (B) it has independently and without reliance on the other party to the
Company Assignment Agreement or the Auction Managers made its own analysis and determined to
enter into the Company Assignment Agreement and to consummate the transactions contemplated
thereby notwithstanding its lack of knowledge of the Excluded Information and (C) the other
party shall have no liability to it and it hereby (to the extent permitted by law) waives
and releases any claims it may have against the other party (under applicable laws or
otherwise) with respect to the nondisclosure of the Excluded Information; provided
that the Excluded Information shall not and does not affect the truth or accuracy of the
representations or warranties of such other party contained in the Standard Terms and
Conditions set forth in the Company Assignment Agreement. Each assigning Lender, on the one
hand, and the Company, on the other hand, further acknowledges that the Excluded Information
has not been made available to Administrative Agent, Auction Managers, the Agents or the
Lenders.

          (iii) With respect to all purchases by Company and cancellation by Company of the
Tranche C Term Loans pursuant to this Section 10.6(i), such purchases and cancellation shall
not, for the avoidance of doubt, (A) change the scheduled amortization required by Section
2.12, except to reduce the amount outstanding and due and payable on the Tranche C Term Loan
Maturity Date (and such reduction, for the avoidance of doubt, shall only apply, on a
non-pro rata basis, to the Tranche C Term Loans so cancelled) or (B) constitute prepayments
of the Loans (including, without limitation, pursuant to Section 2.13, Section 2.14, Section
2.15, Section 2.16 or Section 2.17 hereof) for any purpose hereunder.

          (iv) Immediately following any Company Loan Purchase, no interest shall accrue from and
after the Company Assignment Effective Date on any Tranche C Term Loans purchased by
Company, such Tranche C Term Loans shall be cancelled for all purposes and no longer
outstanding (and may not be resold, assigned or participated out by Company) for all
purposes of this Agreement and all other Credit Documents and immediately upon and
simultaneously with the consummation of any Company Loan Purchase, such Tranche C Term Loans
shall be deemed immediately cancelled for all purposes and no longer outstanding for all
purposes of this Agreement (notwithstanding any provisions herein or therein to the
contrary), including, but not limited to (A) the

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making of, or the application of, any payments to the Lenders under this Agreement or
any other Credit Document, (B) the making of any request, demand, authorization, direction,
notice, consent or waiver under this Agreement or any other Credit Document, (C) the
providing of any rights to Company as a Lender under this Agreement or any other Credit
Document, (D) the calculation of financial covenants, and (E) the determination of Requisite
Lenders, or for any similar or related purpose, under this Agreement or any other Credit
Document.

          (v) Company shall make payment of the purchase price for Tranche C Term Loans accepted
for purchase pursuant to the Auction Procedures by transmitting funds directly to the
assigning Lender. For the avoidance of doubt, Company shall pay all accrued and unpaid
interest, if any, on the applicable Tranche C Term Loans up to the Company Assignment
Effective Date.

          (vi) The provisions of this Section 10.6(i) shall not require Company to offer to
purchase any Tranche C Term Loans.

     10.7. Independence of Covenants. All covenants hereunder shall be given independent effect so
that if a particular action or condition is not permitted by any of such covenants, the fact that
it would be permitted by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

     10.8. Survival of Representations, Warranties and Agreements. All representations, warranties
and agreements made herein shall survive the execution and delivery hereof and the making of any
Credit Extension. Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in Sections 2.18(c), 2.19, 2.20, 10.2, 10.3 and 10.4 and
the agreements of Lenders set forth in Sections 2.17, 9.3(b) and 9.6 shall survive the payment of
the Loans, the cancellation or expiration of the Letters of Credit and the reimbursement of any
amounts drawn thereunder, and the termination hereof.

     10.9. No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or any
Lender in the exercise of any power, right or privilege hereunder or under any other Credit
Document shall impair such power, right or privilege or be construed to be a waiver of any default
or acquiescence therein, nor shall any single or partial exercise of any such power, right or
privilege preclude other or further exercise thereof or of any other power, right or privilege.
The rights, powers and remedies given to each Agent and each Lender hereby are cumulative and shall
be in addition to and independent of all rights, powers and remedies existing by virtue of any
statute or rule of law or in any of the other Credit Documents or any of the Swap Agreements. Any
forbearance or failure to exercise, and any delay in exercising, any right, power or remedy
hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof,
nor shall it preclude the further exercise of any such right, power or remedy.

     10.10. Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Credit Party or any other Person or against or in
payment of any or all of the Obligations. To the extent that any Credit Party makes

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a payment or payments to Administrative Agent or Lenders (or to Administrative Agent, on
behalf of Lenders), or any Agent or Lenders enforce any security interests or exercise their rights
of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other
state or federal law, common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and effect as if such
payment or payments had not been made or such enforcement or setoff had not occurred.

     10.11. Severability. In case any provision in or obligation hereunder or under any other Credit
Document shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.

     10.12. Obligations Several; Independent Nature of Lenders’ Rights. The obligations of Lenders
hereunder are several and no Lender shall be responsible for the obligations or Commitment of any
other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action
taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The amounts payable at
any time hereunder to each Lender shall be a separate and independent debt, and each Lender shall
be entitled to protect and enforce its rights arising out hereof and it shall not be necessary for
any other Lender to be joined as an additional party in any proceeding for such purpose.

     10.13. Headings. Section headings herein are included herein for convenience of reference only
and shall not constitute a part hereof for any other purpose or be given any substantive effect.

     10.14. APPLICABLE LAW.THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER
SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

     10.15. CONSENT TO JURISDICTION.ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY
ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE
BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF
NEW YORK. BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE
JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE

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CREDIT PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (D) AGREES THAT SERVICE
AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE
CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND
BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN
THE COURTS OF ANY OTHER JURISDICTION.

     10.16.
WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY
OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE
TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
WRITTEN CONSENT TO A TRIAL BY THE COURT.

     10.17. Confidentiality. Each Lender shall hold all non-public information regarding Company and
its Subsidiaries and their businesses identified as such by Company and obtained by such Lender
pursuant to the requirements hereof in accordance with such Lender’s customary procedures for
handling confidential information of such nature, it being understood and agreed by Company that,
in any event, a Lender may make (i) disclosures of such information to Affiliates of such Lender
and to their agents and advisors (and to other persons authorized by a Lender or Agent to organize,
present or disseminate such information in connection with disclosures otherwise made in accordance
with this Section 10.17), (ii) disclosures of such

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information reasonably required by any pledgee referred to in Section 10.6(h) or any bona fide
or potential assignee, transferee or participant in connection with the contemplated assignment,
transfer or participation by such Lender of any Loans or any participations therein or by any
direct or indirect contractual counterparties (or the professional advisors thereto) in Swap
Agreements (provided, such counterparties and advisors are advised of and agree to be bound by the
provisions of this Section 10.17), (iii) disclosure to any rating agency when required by it,
provided that, prior to any disclosure, such rating agency shall undertake in writing to preserve
the confidentiality of any confidential information relating to the Credit Parties received by it
from any Agent or any Lender, and (iv) disclosures required or requested by any governmental agency
or representative thereof or by the NAIC or pursuant to legal or judicial process; provided, unless
specifically prohibited by applicable law or court order, each Lender shall make reasonable efforts
to notify Company of any request by any governmental agency or representative thereof (other than
any such request in connection with any examination of the financial condition or other routine
examination of such Lender by such governmental agency) for disclosure of any such non-public
information prior to disclosure of such information.

     10.18. Usury Savings Clause. Notwithstanding any other provision herein, the aggregate interest
rate charged with respect to any of the Obligations, including all charges or fees in connection
therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful
Rate. If the rate of interest (determined without regard to the preceding sentence) under this
Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Loans made
hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due
hereunder equals the amount of interest which would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in effect. In addition, if when the
Loans made hereunder are repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which would have been due
hereunder if the stated rates of interest set forth in this Agreement had at all times been in
effect, then to the extent permitted by law, Borrowers shall pay to Administrative Agent an amount
equal to the difference between the amount of interest paid and the amount of interest which would
have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the
foregoing, it is the intention of Lenders and Borrowers to conform strictly to any applicable usury
laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled
automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding
amount of the Loans made hereunder or be refunded to Borrowers.

     10.19. Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original, but all such counterparts
together shall constitute but one and the same instrument.

     10.20. Effectiveness. This Agreement shall become effective upon the execution of a counterpart
hereof by each of the parties hereto and receipt by Borrower and Administrative Agent of written or
telephonic notification of such execution and authorization of delivery thereof.

135

 

     10.21. Patriot Act. Each Lender and Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies each Borrower that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to
obtain, verify and record information that identifies each Borrower, which information includes the
name and address of such Borrower and other information that will allow such Lender or
Administrative Agent, as applicable, to identify such Borrower in accordance with the Act.

     10.22. Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and
words of like import in any Assignment Agreement shall be deemed to include electronic signatures
or the keeping of records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on the Uniform
Electronic Transactions Act.

     10.23. Public-Side Lenders. Company and each Lender acknowledge that certain of the Lenders may
be “public-side” Lenders (Lenders that do not wish to receive material non-public information with
respect to Holdings, its Subsidiaries or their securities) and, if documents or notices required to
be delivered pursuant to Section 5.1 or Section 5.2 or otherwise are being distributed through
IntraLinks/IntraAgency or another relevant website (the “Platform”), any document or notice that
Holdings has indicated contains Nonpublic Information shall not be posted on that portion of the
Platform designated for such public-side Lenders. If Holdings has not indicated whether a document
or notice delivered pursuant to Section 5.1 or Section 5.2 contains Nonpublic Information,
Administrative Agent reserves the right to post such document or notice solely on that portion of
the Platform designated for Lenders who wish to receive material nonpublic information with respect
to Holdings, its Subsidiaries and their securities.

     10.24. Amendment and Restatement.

          (a) It is the intention of each of the parties hereto that the Existing ARCA, which is an
amendment and restatement of the Original Credit Agreement, be amended and restated so as to
preserve the perfection and priority of all security interests securing indebtedness and
obligations under the Original Credit Agreement and the Existing ARCA and that all Indebtedness and
Obligations of the Credit Parties hereunder and thereunder shall be secured by the Collateral
Documents and that this Agreement does not constitute a novation of the obligations and liabilities
existing under the Original Credit Agreement or the Existing ARCA provided that all Loans, Letters
of Credit or other Credit Extensions outstanding under the Original Credit Agreement and the
Existing ARCA shall continue as Loans, Letters of Credit or other Credit Extensions, as applicable,
under this Agreement (and, in the case of Eurocurrency Loans (including any Eurocurrency Loans that
are (i) Tranche C Term Loans that shall have been converted into Eurocurrency Loans that are
Tranche C-2 Term Loans and (ii) Revolving Loans that shall have been converted to 2015 Revolving
Loans, in each case pursuant to the provisions hereof), with the same Interest Periods as were
applicable to such Eurocurrency Loans immediately prior to the Second ARCA Effective Date). Upon
the effectiveness of this Agreement in accordance with the Amendment and Restatement Agreement,
each Loan

136

 

Document that was in effect immediately prior to the Second ARCA Effective Date shall continue
to be effective, unless the context requires otherwise. The parties hereto further acknowledge and
agree that this Agreement constitutes an amendment of the Existing ARCA made under and in
accordance with the terms of Section 10.5 of the Existing ARCA. In addition, unless specifically
amended hereby, each of the Credit Documents, the Exhibits and Schedules to the Existing ARCA shall
continue in full force and effect and that, from and after the Second ARCA Effective Date, all
references to the “Credit Agreement” contained therein shall be deemed to refer to this Agreement
and all references to the Tranche B Term Loans shall be deemed to refer to the Term Loans.

          (b) Each Lender that executes and delivers the Amendment and Restatement Agreement as an
Extending Lender (as defined in the Amendment and Restatement Agreement) will be deemed to have
agreed to have committed pursuant to, and subject to the terms and conditions of, this Agreement
and the Amendment and Restatement Agreement to convert (A) its Tranche C Term Loans into Tranche
C-2 Term Loans in a principal amount (if any) set forth in the signature page of such Lender to the
Amendment and Restatement Agreement and (B) its Revolving Loans into 2015 Revolving Loans in a
principal amount (if any) set forth in the signature page of such Lender to the Amendment and
Restatement Agreement, in each case on the Second ARCA Effective Date, and the Company and the
Borrowers will be liable for such Tranche C-2 Term Loans and 2015 Revolving Loans respectively.

     10.25. Reaffirmation and Grant of Security Interests. (a) Each Credit Party hereby acknowledges
that it has reviewed the terms and provisions of this Agreement and consents to the amendment and
restatement of the Existing ARCA, which is an amendment and restatement of the Original Credit
Agreement, effected pursuant to this Agreement. Each Credit Party hereby (A) confirms that each
Credit Document to which it is a party or is otherwise bound and all Collateral encumbered thereby
will continue to guarantee or secure, as the case may be, to the fullest extent possible in
accordance with the Credit Documents, the payment and performance of the Obligations, as the case
may be, including without limitation the payment and performance of all such Obligations which are
joint and several obligations of each grantor now or hereafter existing, and (B) grants to the
Collateral Agent for the benefit of the Lenders a continuing lien on and security interest in and
to such Credit Party’s right, title and interest in, to and under all Collateral as collateral
security for the prompt payment and performance in full when due of the Obligations (whether at
stated maturity, by acceleration or otherwise).

          (b) Each Credit Party acknowledges and agrees that any of the Credit Documents to which it is
a party or otherwise bound shall continue in full force and effect and that all of its obligations
thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or
effectiveness of the amendment and restatement of the Existing ARCA. Each Credit Party represents
and warrants that all representations and warranties contained in the Credit Documents to which it
is a party or otherwise bound are true, correct and complete in all material respects on and as of
the Second ARCA Effective Date to the same extent as though made on and as of that date, except to
the extent such representations and warranties specifically relate to an earlier date, in which
case they were true, correct and complete in all material respects on and as of such earlier date.

[Remainder of page intentionally left blank]

137

 

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

	 	 	 	 	 
	 	EDUCATION MANAGEMENT LLC

 	 
	 	By:  	 	 
	 	 	Name:  	John R. McKernan, Jr. 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	EDUCATION MANAGEMENT HOLDINGS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	John R. McKernan, Jr. 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	EDUCATION MANAGEMENT FINANCE CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	John R. McKernan, Jr. 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

 

 

	 	 	 	 	 	 	 

	 	 	ARGOSY UNIVERSITY FAMILY CENTER, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	BROWN MACKIE HOLDING COMPANY	 	 
	 
	 	 	 	 	 	 
	 	 	THE CONNECTING LINK, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	EDMC MARKETING AND ADVERTISING, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	EDMC AVIATION, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	HIGHER EDUCATION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	MCM UNIVERSITY PLAZA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: J. Devitt Kramer
	 	 
	 

	 	 	 	Title: Secretary	 	 

 

 

	 	 	 	 	 
	 	AID RESTAURANT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Simon Lumley 	 
	 	 	Title:  	President, Secretary and Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	AIH RESTAURANT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Larry Horn 	 
	 	 	Title:  	President, Secretary and Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	AIIM RESTAURANT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Joseph L. Marzano, Jr. 	 
	 	 	Title:  	President, Secretary and Treasurer 	 
	 

 

 

	 	 	 	 	 
	 	BNP PARIBAS,

as Administrative Agent and as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

 

APPENDIX A-1

TO AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

Term Loan Commitments1

	 	 	 	 	 	 	 
	Class	 	Per Lender	 	Aggregate
	Tranche C-2 Term Loan 

Commitment

	 	[On file with

Administrative Agent]
	 	$
763,061,849.49	 
	Tranche C Term Loan 

Commitment

	 	[On file with

Administrative Agent]
	 	$348,953,050.51	 

 

			
	1	 	As of the Second ARCA Effective Date, after giving
effect to the conversions set forth herein.

APPENDIX A-1-1

 

APPENDIX A-2

TO AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

Revolving Commitments2

	 	 	 	 	 	 	 
	Class	 	Per Lender	 	Aggregate
	2012 Revolving
Commitment

	 	[On file with

Administrative Agent]
	 	$
114,187,500.00	 
	2015 Revolving

Commitment

	 	[On file with

Administrative Agent]
	 	$
328,312,500.00	 

 

			
	2	 	As of the Second ARCA Effective Date, after giving
effect to the conversions set forth herein.

APPENDIX A-2-1

 

APPENDIX B

TO AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

NOTICE ADDRESSES

REDACTED

 

 

Schedule 4.1 Jurisdiction of Organization

	 	 	 
	Full Legal Name	 	Jurisdiction of Organization
	AICA-IE Restaurant, Inc.

	 	California
	AID Restaurant, Inc.

	 	Texas
	AIH Restaurant, Inc.

	 	Texas
	AIIM Restaurant, Inc.

	 	Minnesota
	AIIN Restaurant LLC

	 	Indiana
	AIT Restaurant, Inc.

	 	Florida
	AITN Restaurant, Inc.

	 	Tennessee
	American Education Centers Inc.

	 	Delaware
	Argosy Education Group, Inc.

	 	Illinois
	Argosy University Family Center, Inc.

	 	Minnesota
	Argosy University of California LLC

	 	California
	Argosy University of Florida, Inc.

	 	Florida (inactive)
	Art Institute of Honolulu, Inc.

	 	Hawaii (inactive)
	Art Institute of Orlando, Inc.

	 	Florida (inactive)
	Brown Mackie College — Albuquerque LLC

	 	New Mexico
	Brown Mackie College — Atlanta/College Park, Inc.

	 	Georgia
	Brown Mackie College — Birmingham LLC

	 	Alabama
	Brown Mackie College — Boise, Inc.

	 	Idaho
	Brown Mackie College — Dallas LLC

	 	Texas
	Brown Mackie College — Greenville, Inc.

	 	South Carolina
	Brown Mackie College — Indianapolis, Inc.

	 	Indiana
	Brown Mackie College — Kansas City LLC

	 	Kansas
	Brown Mackie College — Miami, Inc.

	 	Florida
	Brown Mackie College — Miami North LLC

	 	Florida
	Brown Mackie College — Oklahoma City LLC

	 	Oklahoma
	Brown Mackie College — Phoenix, Inc.

	 	Arizona
	Brown Mackie College — Salina LLC

	 	Kansas
	Brown Mackie College — San Antonio LLC

	 	Texas
	Brown Mackie College — St. Louis, Inc.

	 	Missouri
	Brown Mackie College — Tucson, Inc.

	 	Texas
	Brown Mackie College — Tulsa, Inc.

	 	Oklahoma
	Brown Mackie Education Corporation

	 	Delaware
	Brown Mackie Holding Company

	 	Delaware
	EDMC Aviation, Inc.

	 	Pennsylvania (being dissolved)
	EDMC Canada Limited

	 	Nova Scotia
	EDMC Marketing and Advertising, Inc.

	 	Georgia
	Education Finance I LLC

	 	Delaware
	Education Finance II LLC

	 	Delaware
	Education Management Corporation

	 	Pennsylvania
	Education Management Finance Corp.

	 	Delaware
	Education Management Holdings LLC

	 	Delaware
	Education Management LLC

	 	Delaware

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 
	Full Legal Name	 	Jurisdiction of Organization
	Higher Education Services, Inc.

	 	Georgia
	MCM University Plaza, Inc.

	 	Illinois
	Miami International University of Art & Design, Inc.

	 	Florida
	Michiana College Education Corporation

	 	Delaware
	New York Institute of Art, Inc.

	 	New York (inactive)
	South Education Corporation

	 	Kansas
	South Education — Texas LLC

	 	Texas
	South University of Alabama, Inc.

	 	Alabama
	South University of Carolina, Inc.

	 	South Carolina
	South University of Florida, Inc.

	 	Florida
	South University of Michigan, LLC

	 	Michigan
	South University of Missouri, Inc.

	 	Missouri
	South University of North Carolina, Inc.

	 	North Carolina (inactive)
	South University of Tennessee, Inc.

	 	Tennessee (inactive)
	South University of Virginia, Inc.

	 	Virginia
	South University Research Corporation

	 	Georgia
	South University, LLC

	 	Georgia
	Southern Ohio College, LLC

	 	Delaware
	Stautzenberger College Education Corporation

	 	Delaware
	SUNM LLC

	 	Michigan
	TAIC-San Diego, Inc. d/b/a The Art Institute of California-San Diego

	 	California
	TAIC-San Francisco, Inc. d/b/a The Art Institute of California-San Francisco

	 	California
	The Art Institute of Atlanta, LLC

	 	Georgia
	The Art Institute of Austin, Inc.

	 	Texas
	The Art Institute of California — Hollywood, Inc.

	 	California
	The Art Institute of California- Inland Empire, Inc.

	 	California
	The Art Institute of California-Los Angeles, Inc.

	 	California
	The Art Institute of California-Orange County, Inc.

	 	California
	The Art Institute of California-Sacramento, Inc.

	 	California
	The Art Institute of California-Sunnyvale, Inc.

	 	California
	The Art Institute of Charleston, Inc.

	 	South Carolina
	The Art Institute of Charlotte, Inc.

	 	North Carolina
	The Art Institute of Colorado, Inc.

	 	Colorado
	The Art Institute of Dallas, Inc.

	 	Texas
	The Art Institute of Fort Lauderdale, Inc.

	 	Florida
	The Art Institute of Fort Worth, Inc.

	 	Texas
	The Art Institute of Houston, Inc.

	 	Texas
	The Art Institute of Indianapolis LLC

	 	Indiana
	The Art Institute of Jacksonville, Inc.

	 	Florida
	The Art Institute of Las Vegas, Inc.

	 	Nevada
	The Art Institute of Michigan, Inc.

	 	Michigan
	The Art Institute of New Jersey LLC

	 	New Jersey

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 
	Full Legal Name	 	Jurisdiction of Organization
	The Art Institute of New York City, Inc.

	 	New York
	The Art Institute of Ohio- Cincinnati, Inc.

	 	Ohio
	The Art Institute of Philadelphia LLC

	 	PA
	The Art Institute of Pittsburgh LLC

	 	PA
	The Art Institute of Portland, Inc.

	 	Oregon
	The Art Institute of Raleigh-Durham, Inc.

	 	North Carolina
	The Art Institute of Salt Lake City, Inc.

	 	Utah
	The Art Institute of San Antonio, Inc.

	 	Texas
	The Art Institute of Seattle, Inc.

	 	Washington
	The Art Institute of St. Louis, Inc.

	 	Missouri
	The Art Institute of Tampa, Inc.

	 	Florida
	The Art Institute of Tennessee — Nashville, Inc.

	 	Tennessee
	The Art Institute of Tucson, Inc.

	 	Arizona
	The Art Institute of Vancouver, Inc. (British Columbia)

	 	British Columbia
	The Art Institute of Virginia Beach LLC

	 	Virginia
	The Art Institute of Washington, Inc.

	 	District of Columbia
	The Art Institute of Washington-Northern Virginia LLC

	 	Virginia
	The Art Institute of Wisconsin LLC

	 	Wisconsin
	The Art Institute of York-Pennsylvania LLC

	 	Pennsylvania
	The Art Institutes International — Kansas City, Inc.

	 	Kansas
	The Art Institutes International Minnesota, Inc.

	 	Minnesota
	The Art Institutes International LLC

	 	Pennsylvania
	The Asher School of Business Education Corporation

	 	Delaware
	The Connecting Link, Inc.

	 	Georgia
	The Illinois Institute of Art at Schaumburg, Inc.

	 	Illinois
	The Illinois Institute of Art, Inc.

	 	Illinois
	The Illinois Institute of Art — Tinley Park LLC

	 	Illinois
	The Institute of Post-Secondary Education, Inc. d/b/a The Art Institute of Phoenix

	 	Arizona
	The New England Institute of Art, LLC

	 	Massachusetts
	The University of Sarasota, Inc.

	 	Florida
	Western State University of Southern California

	 	California

Schedules to the Credit and Guaranty Agreement

 

 

Schedule 4.9 Environmental Matters

None.

Schedules to the Credit and Guaranty Agreement

 

 

Schedule 4.10 Taxes

None.

Schedules to the Credit and Guaranty Agreement

 

 

Schedule 4.11 ERISA Compliance

None.

Schedules to the Credit and Guaranty Agreement

 

 

Schedule 4.12 Subsidiaries and Other Equity Investments

	 	 	 	 	 
	 	 	Jurisdiction	 	 
	Name	 	of Formation	 	Ownership (Direct Parent)
	AICA-IE Restaurant, Inc.

	 	California
	 	100% (The Art Institute of California- Inland Empire, Inc.)
	AID Restaurant, Inc.

	 	Texas
	 	100% ( The Art Institute of Dallas, Inc.)
	AIH Restaurant, Inc.

	 	Texas
	 	100% (The Art Institute of Houston, Inc.)
	AIIM Restaurant, Inc.

	 	Minnesota
	 	100% (Education Management LLC)
	AIIN Restaurant LLC

	 	Indiana
	 	100% (The Art Institute of Indianapolis LLC )
	AIT Restaurant, Inc.

	 	Florida
	 	100% (The Art Institute of Tampa, Inc. )
	AITN Restaurant, Inc.

	 	Tennessee
	 	100% (The Art Institute of Tennessee — Nashville, Inc.)
	American Education Centers Inc.

	 	Delaware
	 	100% (Brown Mackie Holding Company)
	Argosy Education Group, Inc.

	 	Illinois
	 	100% ( Education Management LLC )
	Argosy University Family Center, Inc.

	 	Minnesota
	 	100% (Argosy Education Group, Inc. )
	Argosy University of California LLC

	 	California
	 	100% (Education Management LLC )
	Argosy University of Florida, Inc.

	 	Florida (inactive)
	 	100% (Argosy Education Group, Inc. )
	Art Institute of Honolulu, Inc.

	 	Hawaii (inactive)
	 	Shares not issued
	Art Institute of Orlando, Inc.

	 	Florida (inactive)
	 	Shares not issued
	Brown Mackie College — Albuquerque LLC

	 	New Mexico
	 	100% ( Brown Mackie College-Tucson, Inc. )
	Brown Mackie College — Atlanta/College Park, Inc.

	 	Georgia
	 	100% (American Education Centers Inc. )
	Brown Mackie College — Birmingham LLC

	 	Alabama
	 	100% (American Education Centers Inc. )
	Brown Mackie College — Boise, Inc.

	 	Idaho
	 	100% (Michiana College Education Corporation )
	Brown Mackie College — Dallas LLC

	 	Texas
	 	100% (American Education Centers Inc. )
	Brown Mackie College — Greenville, Inc.

	 	South Carolina
	 	100% (Brown Mackie College-Tucson, Inc. )
	Brown Mackie College — Indianapolis, Inc.

	 	Indiana
	 	100% (Stautzenberger College Education Corporation )
	Brown Mackie College — Kansas City LLC

	 	Kansas
	 	100% (Brown Mackie College- Salina LLC )
	Brown Mackie College — Miami, Inc.

	 	Florida
	 	100% (American Education Centers Inc. )
	Brown Mackie College — Miami North LLC

	 	Florida
	 	100% (American Education Centers Inc. )

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 	 	 
	 	 	Jurisdiction	 	 
	Name	 	of Formation	 	Ownership (Direct Parent)
	Brown Mackie College — Oklahoma City LLC

	 	Oklahoma
	 	100% (Brown Mackie Education Corporation)
	Brown Mackie College — Phoenix, Inc.

	 	Arizona
	 	100% (Brown Mackie College-Tucson, Inc.)
	Brown Mackie College — Salina LLC

	 	Kansas
	 	100% (Brown Mackie Education Corporation)
	Brown Mackie College — San Antonio LLC

	 	Texas
	 	100% (American Education Centers Inc. )
	Brown Mackie College — St. Louis, Inc.

	 	Missouri
	 	100% (Brown Mackie College-Tucson, Inc. )
	Brown Mackie College — Tucson, Inc.

	 	Texas
	 	100% (Southern Ohio College, LLC)
	Brown Mackie College — Tulsa, Inc.

	 	Oklahoma
	 	100% (Michiana College Education Corporation)
	Brown Mackie Education Corporation

	 	Delaware
	 	100% (Brown Mackie Holding Company)
	Brown Mackie Holding Company

	 	Delaware
	 	100% (Education Management LLC)
	EDMC Aviation, Inc.

	 	Pennsylvania (being

dissolved)
	 	100% (Education Management LLC)
	EDMC Canada Limited

	 	Nova Scotia
	 	100% (The Art Institutes International LLC )
	EDMC Marketing and Advertising, Inc.

	 	Georgia
	 	100% (Education Management LLC)
	Education Finance I LLC

	 	Delaware
	 	100% (Education Management LLC)
	Education Finance II LLC

	 	Delaware
	 	100% ( Education Management Corporation)
	Education Management Finance Corp.

	 	Delaware
	 	100% (Education Management LLC)
	Education Management Holdings LLC

	 	Delaware
	 	100% (Education Management Corporation)
	Education Management LLC

	 	Delaware
	 	100% (Education Management Holdings LLC)
	Higher Education Services, Inc.

	 	Georgia
	 	100% (Education Management LLC)
	MCM University Plaza, Inc.

	 	Illinois
	 	100% (The University of Sarasota, Inc. )
	Miami International University of Art & Design, Inc.

	 	Florida
	 	100% (The Art Institutes International LLC)
	Michiana College Education Corporation

	 	Delaware
	 	100% (Brown Mackie Holding Company)
	New York Institute of Art, Inc.

	 	New York (inactive)
	 	Shares not issued
	South Education Corporation

	 	Kansas
	 	100% ( South University, LLC)
	South Education — Texas LLC

	 	Texas
	 	100% (South University, LLC)
	South University of Alabama, Inc.

	 	Alabama
	 	100% (South University, LLC)

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 	 	 
	 	 	Jurisdiction	 	 
	Name	 	of Formation	 	Ownership (Direct Parent)
	South University of Carolina, Inc.

	 	South Carolina
	 	100% (South University, LLC)
	South University of Florida, Inc.

	 	Florida
	 	100% (South University, LLC)
	South University of Michigan, LLC

	 	Michigan
	 	100% (South University, LLC)
	South University of Missouri, Inc.

	 	Missouri
	 	100% (South University, LLC)
	South University of North Carolina, Inc.

	 	North Carolina (inactive)
	 	100% (South University, LLC)
	South University of Tennessee, Inc.

	 	Tennessee (inactive)
	 	100% (South University, LLC)
	South University of Virginia, Inc.

	 	Virginia
	 	100% (South University, LLC)
	South University Research Corporation

	 	Georgia
	 	100% (South University, LLC)
	South University, LLC

	 	Georgia
	 	100% (Education Management LLC)
	Southern Ohio College, LLC

	 	Delaware
	 	45% (Brown Mackie Holding Company)
22% (American Education Centers Inc.)
11% by each of Brown Mackie Education Corporation, Stautzenberger College Education
Corporation and Michiana College Education Corporation
	Stautzenberger College Education Corporation

	 	Delaware
	 	100% (American Education Centers Inc.)
	SUNM LLC

	 	Michigan
	 	100% (South University, LLC)
	TAIC-San Diego, Inc. d/b/a The Art Institute of California-San Diego

	 	California
	 	100% (The Art Institutes International LLC )
	TAIC-San Francisco, Inc. d/b/a The Art Institute of California-San Francisco

	 	California
	 	100% (The Art Institutes International LLC )
	The Art Institute of Atlanta, LLC

	 	Georgia
	 	100% (The Art Institutes International LLC )
	The Art Institute of Austin, Inc.

	 	Texas
	 	100% (The Art Institutes International LLC)
	The Art Institute of California — Hollywood, Inc.

	 	California
	 	100% (The Art Institutes International LLC )
	The Art Institute of California- Inland Empire, Inc.

	 	California
	 	100% (TAIC-San Diego, Inc. d/b/a The Art Institute of California-San Diego)
	The Art Institute of California-Los Angeles, Inc.

	 	California
	 	100% (TAIC-San Francisco, Inc. d/b/a The Art Institute of California-San Francisco)
	The Art Institute of California-Orange County, Inc.

	 	California
	 	100% (TAIC-San Francisco, Inc. d/b/a The Art Institute of California-San Francisco )
	The Art Institute of California-Sacramento, Inc.

	 	California
	 	100% (TAIC-San Francisco, Inc. d/b/a The Art Institute of California-San Francisco )
	The Art Institute of California-Sunnyvale, Inc.

	 	California
	 	100% (The Art Institutes International LLC)

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 	 	 
	 	 	Jurisdiction	 	 
	Name	 	of Formation	 	Ownership (Direct Parent)
	The Art Institute of Charleston, Inc.

	 	South Carolina
	 	100% (The Art Institutes International LLC)
	The Art Institute of Charlotte, Inc.

	 	North Carolina
	 	100% (The Art Institutes International LLC)
	The Art Institute of Colorado, Inc.

	 	Colorado
	 	100% (The Art Institutes International LLC)
	The Art Institute of Dallas, Inc.

	 	Texas
	 	100% (South University, LLC)
	The Art Institute of Fort Lauderdale, Inc.

	 	Florida
	 	100% (The Art Institutes International LLC)
	The Art Institute of Fort Worth, Inc.

	 	Texas
	 	100% (The Art Institute of Dallas, Inc.)
	The Art Institute of Houston, Inc.

	 	Texas
	 	100% (The Art Institutes International LLC)
	The Art Institute of Indianapolis LLC

	 	Indiana
	 	100% (The Art Institutes International LLC)
	The Art Institute of Jacksonville, Inc.

	 	Florida
	 	100% (The Art Institutes International LLC)
	The Art Institute of Las Vegas, Inc.

	 	Nevada
	 	100% (The Art Institutes International LLC)
	The Art Institute of Michigan, Inc.

	 	Michigan
	 	100% (The Illinois Institute of Art, Inc. )
	The Art Institute of New Jersey LLC

	 	New Jersey
	 	100% (The Art Institute of Pittsburgh LLC)
	The Art Institute of New York City, Inc.

	 	New York
	 	100% (The Art Institutes International LLC)
	The Art Institute of Ohio- Cincinnati, Inc.

	 	Ohio
	 	100% (The Illinois Institute of Art, Inc.)
	The Art Institute of Philadelphia LLC

	 	PA
	 	100% (The Art Institutes International LLC)
	The Art Institute of Pittsburgh LLC

	 	PA
	 	100% (The Art Institutes International LLC)
	The Art Institute of Portland, Inc.

	 	Oregon
	 	100% (The Art Institutes International LLC)
	The Art Institute of Raleigh-Durham, Inc.

	 	North Carolina
	 	100% (The Art Institute of Charlotte, Inc.)
	The Art Institute of Salt Lake City, Inc.

	 	Utah
	 	100% (The Art Institutes International LLC)
	The Art Institute of San Antonio, Inc.

	 	Texas
	 	100% (The Art Institutes International LLC)
	The Art Institute of Seattle, Inc.

	 	Washington
	 	100% (The Art Institutes International LLC)
	The Art Institute of St. Louis, Inc.

	 	Missouri
	 	100% (The Art Institute of Colorado, Inc.)
	The Art Institute of Tampa, Inc.

	 	Florida
	 	100% (The Art Institutes International LLC)
	The Art Institute of Tennessee — Nashville, Inc.

	 	Tennessee
	 	100% (The Art Institutes International LLC)
	The Art Institute of Tucson, Inc.

	 	Arizona
	 	100% (The Art Institutes International LLC)

Schedules to the Credit and Guaranty Agreement

 

 

	 	 	 	 	 
	 	 	Jurisdiction	 	 
	Name	 	of Formation	 	Ownership (Direct Parent)
	The Art Institute of Vancouver, Inc. (British Columbia)

	 	British Columbia
	 	100% (EDMC Canada Limited)
	The Art Institute of Virginia Beach LLC

	 	Virginia
	 	100% (The Art Institute of Atlanta, LLC)
	The Art Institute of Washington, Inc.

	 	District of Columbia
	 	100% (The Art Institutes International LLC)
	The Art Institute of Washington-Northern Virginia LLC

	 	Virginia
	 	100% (The Art Institutes International LLC)
	The Art Institute of Wisconsin LLC

	 	Wisconsin
	 	100% (The Institute of Post-Secondary Education, Inc. d/b/a The Art Institute of Phoenix)
	The Art Institute of York-Pennsylvania LLC

	 	Pennsylvania
	 	100% (The Art Institutes International LLC)
	The Art Institutes International -Kansas City, Inc.

	 	Kansas
	 	100% (The Art Institutes International LLC)
	The Art Institutes International Minnesota, Inc.

	 	Minnesota
	 	100% (The Art Institutes International LLC)
	The Art Institutes International LLC

	 	Pennsylvania
	 	100% (Education Management LLC)
	The Asher School of Business Education Corporation

	 	Delaware
	 	100% (The Art Institute of Charlotte, Inc.)
	The Connecting Link, Inc.

	 	Georgia
	 	100% (Argosy Education Group, Inc.)
	The Illinois Institute of Art at Schaumburg, Inc.

	 	Illinois
	 	100% (The Illinois Institute of Art, Inc. )
	The Illinois Institute of Art, Inc.

	 	Illinois
	 	100% (The Art Institutes International LLC)
	The Illinois Institute of Art — Tinley Park LLC

	 	Illinois
	 	100% (The Illinois Institute of Art, Inc.)
	The Institute of Post-Secondary Education, Inc. d/b/a The Art Institute of
Phoenix

	 	Arizona
	 	100% (The Art Institute of Colorado, Inc.)
	The New England Institute of Art, LLC

	 	Massachusetts
	 	100% (The Art Institutes International LLC)
	The University of Sarasota, Inc.

	 	Florida
	 	100% (Argosy Education Group, Inc.)
	Western State University of Southern California

	 	California
	 	100% (Argosy Education Group, Inc.)

Schedules to the Credit and Guaranty Agreement

 

 

EXHIBIT B-4 TO

CREDIT AND GUARANTY AGREEMENT

TRANCHE C-2 TERM LOAN NOTE

			
	 	 	 
	$[1][___,___,___]	 	 
	December [ ], 2010
	 	New York, New York

     FOR VALUE RECEIVED, EDUCATION MANAGEMENT LLC, Delaware limited liability company (“Company”),
promises to pay [NAME OF LENDER] (“Payee”) or its registered assigns the principal amount of
[1][DOLLARS] ($[1][___,___,___]) in the installments referred to below.

     Company also promises to pay interest on the unpaid principal amount hereof, from the date
hereof until paid in full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Second Amended and Restated Credit and Guaranty Agreement,
dated as of December [ ], 2010 (as it may be amended, supplemented or otherwise modified, the
“Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Company, EDUCATION MANAGEMENT HOLDINGS LLC, a Delaware limited
liability company (“Holdings”), CERTAIN SUBSIDIARIES OF HOLDINGS, as Guarantors, the Designated
Subsidiary Borrowers party thereto from time to time, the Lenders party thereto from time to time,
CREDIT SUISSE SECURITIES (USA) LLC, as Syndication Agent and BNP PARIBAS, as Administrative Agent
and Collateral Agent.

     Company shall make principal payments on this Note as set forth in Section 2.12 of the Credit
Agreement.

     This Note is one of the “Tranche C-2 Term Loan Notes” in the aggregate principal amount of
$[___,___,___] and is issued pursuant to and entitled to the benefits of the Credit Agreement, to
which reference is hereby made for a more complete statement of the terms and conditions under
which the Term Loan evidenced hereby was made and is to be repaid.

     All payments of principal and interest in respect of this Note shall be made in lawful money
of the United States of America in same day funds at the Principal Office of Administrative Agent
or at such other place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement. Unless and until an Assignment Agreement effecting the assignment
or transfer of the obligations evidenced hereby shall have been accepted by Administrative Agent
and recorded in the Register, Company, each Agent and Lenders shall be entitled to deem and treat
Payee as the owner and holder of this Note and the obligations evidenced hereby. Payee hereby
agrees, by its acceptance hereof, that before disposing of this Note or any part hereof it will
make a notation hereon of all principal payments previously made hereunder and of the date to which
interest hereon has been paid; provided, the failure to make a notation of any payment made on this
Note shall not limit or otherwise affect the obligations of Company hereunder with respect to
payments of principal of or interest on this Note.

     This Note amends and restates an existing Note or Notes under the Existing ARCA and does not
constitute a novation, payment and reborrowing or termination of such existing Note or Notes or of
other obligations under such existing Note or Notes, and all such obligations are in all respects
continued and outstanding as obligations under this Note except to the extent that such obligations
are modified from and after the date of this Note as provided in the Credit Agreement and the other
Credit Documents.

     This Note is subject to mandatory prepayment and to prepayment at the option of Company, each
as provided in the Credit Agreement.

 

			
	[1]	 	Lender’s Tranche C-2 Term Loan Commitment

EXHIBIT B-4-1

 

 

     THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

     Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this
Note, together with all accrued and unpaid interest thereon, may become, or may be declared to be,
due and payable in the manner, upon the conditions and with the effect provided in the Credit
Agreement.

     The terms of this Note are subject to amendment only in the manner provided in the Credit
Agreement.

     No reference herein to the Credit Agreement and no provision of this Note or the Credit
Agreement shall alter or impair the obligations of Company, which are absolute and unconditional,
to pay the principal of and interest on this Note at the place, at the respective times, and in the
currency herein prescribed.

     Company promises to pay all costs and expenses, including reasonable attorneys’ fees, all as
provided in the Credit Agreement, incurred in the collection and enforcement of this Note. Company
and any endorsers of this Note hereby consent to renewals and extensions of time at or after the
maturity hereof, without notice, and hereby waive diligence, presentment, protest, demand notice of
every kind and, to the full extent permitted by law, the right to plead any statute of limitations
as a defense to any demand hereunder.

EXHIBIT B-4-2

 

 

     IN WITNESS WHEREOF, Company has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date and at the place first written above.

EDUCATION MANAGEMENT LLC

By: _____________________________

Title:

EXHIBIT B-4-3

 

 

EXHIBIT B-5 TO

CREDIT AND GUARANTY AGREEMENT

2015 REVOLVING LOAN NOTE

			
	 	 	 
	$[1][___,___,___]	 	 
	December [ ], 2010
	 	New York, New York

     FOR VALUE RECEIVED, EDUCATION MANAGEMENT LLC, a Delaware limited liability company
(“Company”), promises to pay [NAME OF LENDER] (“Payee”) or its registered assigns, on or before
June 1, 2015, the lesser of (a) [1][DOLLARS] ($[1][___,___,___]) and (b) the unpaid principal
amount of all advances made by Payee to Company as 2015 Revolving Loans under the Credit Agreement
referred to below.

     Company also promises to pay interest on the unpaid principal amount hereof, from the date
hereof until paid in full, at the rates and at the times which shall be determined in accordance
with the provisions of that certain Second Amended and Restated Credit and Guaranty Agreement,
dated as of December [ ], 2010 (as it may be amended, supplemented or otherwise modified, the
“Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as
therein defined), by and among Company, EDUCATION MANAGEMENT HOLDINGS LLC, a Delaware limited
liability company (“Holdings”), CERTAIN SUBSIDIARIES OF HOLDINGS, as Guarantors, the Designated
Subsidiary Borrowers party thereto from time to time, the Lenders party thereto from time to time,
CREDIT SUISSE SECURITIES (USA) LLC, as Syndication Agent and BNP PARIBAS, as Administrative Agent
and Collateral Agent.

     This Note is one of the “2015 Revolving Loan Notes” in the aggregate principal amount of
$[___,___,___] and is issued pursuant to and entitled to the benefits of the Credit Agreement, to
which reference is hereby made for a more complete statement of the terms and conditions under
which the Loans evidenced hereby were made and are to be repaid.

     All payments of principal and interest in respect of this Note shall be made in lawful money
of the United States of America in same day funds at the Principal Office of Administrative Agent
or at such other place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement. Unless and until an Assignment Agreement effecting the assignment
or transfer of the obligations evidenced hereby shall have been accepted by Administrative Agent
and recorded in the Register, Company, each Agent and Lenders shall be entitled to deem and treat
Payee as the owner and holder of this Note and the obligations evidenced hereby. Payee hereby
agrees, by its acceptance hereof, that before disposing of this Note or any part hereof it will
make a notation hereon of all principal payments previously made hereunder and of the date to which
interest hereon has been paid; provided, the failure to make a notation of any payment made on this
Note shall not limit or otherwise affect the obligations of Company hereunder with respect to
payments of principal of or interest on this Note.

     This Note amends and restates an existing Note or Notes under the Existing ARCA and does not
constitute a novation, payment and reborrowing or termination of such existing Note or Notes or of
other obligations under such existing Note or Notes, and all such obligations are in all respects
continued and outstanding as obligations under this Note except to the extent that such obligations
are modified from and after the date of this Note as provided in the Credit Agreement and the other
Credit Documents.

     This Note is subject to mandatory prepayment and to prepayment at the option of Company, each
as provided in the Credit Agreement.

     THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF COMPANY AND PAYEE HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,

 

			
	[1]	 	Lender’s 2015 Revolving Commitment

EXHIBIT B-5-1

 

 

THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

     Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this
Note, together with all accrued and unpaid interest thereon, may become, or may be declared to be,
due and payable in the manner, upon the conditions and with the effect provided in the Credit
Agreement.

     The terms of this Note are subject to amendment only in the manner provided in the Credit
Agreement.

     No reference herein to the Credit Agreement and no provision of this Note or the Credit
Agreement shall alter or impair the obligations of Company, which are absolute and unconditional,
to pay the principal of and interest on this Note at the place, at the respective times, and in the
currency herein prescribed.

     Company promises to pay all costs and expenses, including reasonable attorneys’ fees, all as
provided in the Credit Agreement, incurred in the collection and enforcement of this Note. Company
and any endorsers of this Note hereby consent to renewals and extensions of time at or after the
maturity hereof, without notice, and hereby waive diligence, presentment, protest, demand notice of
every kind and, to the full extent permitted by law, the right to plead any statute of limitations
as a defense to any demand hereunder.

EXHIBIT B-5-2

 

 

     IN WITNESS WHEREOF, Company has caused this Note to be duly executed and delivered by its
officer thereunto duly authorized as of the date and at the place first written above.

EDUCATION MANAGEMENT LLC

By: _____________________________

Title:

EXHIBIT B-5-3

 

 

TRANSACTIONS ON

2015 REVOLVING LOAN NOTE

	 	 	 	 	 	 	 	 	 
	 	 	Amount of Loan Made	 	Amount of Principal	 	Outstanding Principal	 	Notation
	Date	 	This Date	 	Paid This Date	 	Balance This Date	 	Made By
	 	 	 	 	 	 	 	 	 

EXHIBIT B-5-4

 

 

APPENDIX C

TO AMENDED AND RESTATED

CREDIT AND GUARANTY AGREEMENT

Original Sections 3.1(g) and 3.1(h)

Original Section 3.1(g):

          (g) Real Estate Assets. In order to create in favor of Collateral Agent, for the
benefit of Secured Parties, a valid and, subject to any filing and/or recording referred to herein,
perfected First Priority security interest in Material Real Estate Assets, each of which is listed
in Schedule 3.1(g) (each, a “Closing Date Mortgaged Property”), Collateral Agent shall have
received from Borrowers and each applicable Guarantor:

     (i) fully executed and notarized Mortgages, in proper form for recording in all
appropriate places in all applicable jurisdictions, encumbering each Closing Date Mortgaged
Property;

     (ii) an opinion of counsel (which counsel shall be reasonably satisfactory to
Collateral Agent) in each state in which a Closing Date Mortgaged Property is located with
respect to the enforceability of the form(s) of Mortgages to be recorded in such state and
such other matters as Collateral Agent may reasonably request, in each case in form and
substance reasonably satisfactory to Collateral Agent;

     (iii) (A) ALTA mortgagee title insurance policies or unconditional commitments
therefor issued by one or more title companies (each, a “Title Company”) reasonably
satisfactory to Collateral Agent with respect to each Closing Date Mortgaged Property
(each, a “Title Policy”), in amounts not less than the fair market value of each Closing
Date Mortgaged Property, together with a title report issued by a title company with
respect thereto, dated not more than thirty days prior to the Closing Date and copies of
all recorded documents listed as exceptions to title or otherwise referred to therein, each
in form and substance reasonably satisfactory to Collateral Agent and (B) evidence
satisfactory to Collateral Agent that such Credit Party has paid to the title company or to
the appropriate governmental authorities all expenses and premiums of the title company and
all other sums required in connection with the issuance of each Title Policy and all
recording and stamp taxes (including mortgage recording and intangible taxes) payable in
connection with recording the Mortgages for each Closing Date Mortgaged Property in the
appropriate real estate records; and

     (iv) flood certifications with respect to all Closing Date Mortgaged Properties and
evidence of flood insurance with respect to each Flood Hazard Property that is located in a
community that participates in the National Flood Insurance Program, in each case in
compliance with any applicable regulations of

APPENDIX C-1

 

the Board of Governors, in form and substance reasonably satisfactory to Collateral Agent.

Original Section 3.1(h):

          (h) Personal Property Collateral. In order to create in favor of Collateral Agent,
for the benefit of Secured Parties, a valid, perfected First Priority security interest in the
personal property Collateral, the Credit Parties shall have delivered to Collateral Agent:

     (i) evidence reasonably satisfactory to Collateral Agent of the compliance by each
Credit Party of their obligations under the Pledge and Security Agreement and the other
Collateral Documents (including, without limitation, their obligations to execute and
deliver UCC financing statements and originals of securities and instruments as provided
therein);

     (ii) A completed Perfection Certificate dated the Effective Date and executed by a
Responsible Officer of each Credit Party; and

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

APPENDIX C-2exv4w1

Exhibit 4.1

SNYDER’S OF HANOVER, INC.

NON-QUALIFIED STOCK OPTION PLAN

Amendment and Restatement Effective January 1, 2005

	 	 	 
	I.

	 	Purpose
	 
	 	 
	 

	 	Snyder’s of Hanover, Inc. (the “Company”) desires to attract and retain the best
available personnel and to enhance the long-term growth of the Company’s earnings.
The Company believes it will achieve its goals most effectively by providing key
individuals with long-term incentives based upon the growth of the value per share
of the Company’s stock.
	 
	 	 
	II.

	 	Scope
	 
	 	 
	 

	 	The Company is adopting the stock option plan to provide Non-Qualified Stock Options
(collectively, the “Options” and individually, an “Option”) to the Company’s
Chairman, President/CEO, Vice Presidents and Board of Directors (the “Participants”
or a “Participant”).
	 
	 	 
	 

	 	Initially, the Company will reserve 1,600 shares of its Class B, non-voting common
stock, par value $100.00 per share (the “Shares” or a “Share”), for issuance under
the Plan.
	 
	 	 
	III.

	 	Administration
	 
	 	 
	 

	 	This Plan will be administered by a Committee (the “Committee”) consisting of the
Company’s Chairman, President/CEO, Vice President-CFO, the Vice President of Human
Resources and a member of the Board appointed by the Board.
	 
	 	 
	IV.

	 	Eligibility
	 
	 	 
	 

	 	Awards may be made to any Participant selected by the Committee.

1

 

	 	 	 
	V.

	 	Option Price
	 
	 	 
	 

	 	The purchase price of each Share subject to an Option shall be its fair market value
at the date the Option is granted (“Option Price”), as defined in IRS Regulations
under Internal Revenue Code Section 409A and as determined by an appraisal performed
by an independent third party appraisal firm retained by the Board. Specifically,
the Committee shall set the purchase price at the most recent such appraised fair
market value determined by the appraiser that may be used as a fair market value
option price under those Regulations.
	 
	 	 
	VI.

	 	Option Grants
	 
	 	 
	 

	 	A. Option Grants. The grant of an Option under this Plan will be evidenced
by an option agreement (the “Option Agreement”) between the Company and the
Participant granted an Option (the “Optionee”) in a form approved by the Committee.
The Option Agreement will contain the terms set forth in this Plan and such
additional terms and conditions as may be prescribed by the Committee from time to
time.
	 
	 	 
	 

	 	B. Committee Determinations. The Committee designates those Participants to
whom Options are granted and the number of Shares represented by the Option.
Notwithstanding the foregoing, Options on the indicated number of Shares will
automatically be granted under the Plan to the indicated individuals when they are
appointed to the indicated positions, as follows:

	 	 	 
	Participant	 	Number of Option Shares
	 
	 	 
	Chairman

	 	200
	 
	 	 
	President/CEO

	 	200
	 
	 	 
	Vice President

	 	80
	 
	 	 
	Director

	 	16

	 	 	 
	 

	 	C. Additional Automatic Options. For each Optionee, additional Options will
be awarded annually based on the percentage increase, if any, in the Book Value of
the Shares for the current fiscal year over the Book Value of Shares for the
immediately preceding fiscal year, times the initial Options granted to such
Participant.
	 
	 	 
	 

	 	Example: Assuming that the Book Value of the Shares has increased by 10%,
an Optionee with an initial grant of Options to purchase 20 Shares will be awarded
additional Options to purchase two Shares.

2

 

	 	 	 
	 

	 	For purposes of determining the number of these additional, automatic Options, the
Book Value of the Shares will be established on an annual basis within 90 days after
the fiscal year close in March.
	 
	 	 
	 

	 	As required in the IRS Section 409A regulations, the purchase price for the
additional, automatic Options shall be the fair market value at the date the
additional, automatic Options are granted as specified under V, above.
	 
	 	 
	 

	 	For the purpose of this Plan, the “Book Value” per Share shall be determined by
adding the Company’s assets, deducting its liabilities, and dividing such results by
the number of issued and outstanding Shares of the Company.
	 
	 	 
	 

	 	In addition, the Committee will have the discretion to provide additional Options as
it determines.
	 
	 	 
	VII.

	 	Vesting of Options
	 
	 	 
	 

	 	Options awarded to a Participant because of the Participant’s status as Chairman,
President/CEO, Vice President, or other employee of the Company shall vest when the
employee has been a Participant in the Plan for five years. Options awarded to a
Participant because of the Participant’s status as a Director of the Company shall
be immediately vested when granted.
	 
	 	 
	VIII.

	 	Maximum Term; Exercise of Options
	 
	 	 
	 

	 	Options shall be exercised on or before the date which is 15 years after the date of
grant. Thereafter, such Options shall expire. Upon vesting, Options may be
exercised by the Optionee or, in the event of the death or total disability (as
hereinafter defined) of the Optionee by the Optionee’s guardian, legal
representative or designated beneficiary, at any time before the date of the
expiration or earlier termination of the Options. The Option Price may be paid in
cash or by delivery of Shares owned by the Optionee having a fair market value (as
defined in V., above) equal to the Option Price or in a combination of cash and
Shares having a fair market value (as defined in V., above) equal to the Option
Price.
	 
	 	 
	IX.

	 	Effect of Death, Disability or Other Events on Vesting
	 
	 	 
	 

	 	In the event an Optionee dies or suffers a “total disability,” or upon Other Events,
the Optionee will vest 100% in the Options he or she has been granted. In such
event, the Optionee, the Optionee’s guardian, legal representative or designated
beneficiary shall have 360 days to exercise any Options vested on the date of the

3

 

	 	 	 
	 

	 	event. All Options which are unexercised within 360 days after death, “total
disability,” or upon Other Events shall be forfeited.
	 
	 	 
	 

	 	For purposes of this Plan, the term “total disability” shall mean the inability of a
Participant to engage in his usual and customary employment with the Company by
reason of any medically determinable physical or mental impairment, which in the
opinion of the Committee, can be expected to result in death or to last for a
continuous period of at least twelve months. The term “Other Events” shall mean (i)
the sale, exchange, transfer or other disposition of substantially all of the
Company’s assets, except to an entity, controlled, directly or indirectly, by the
Company; or (ii) a merger, consolidation or other reorganization of the Company,
except where the resulting entity is controlled, directly or indirectly, by the
Company or where the shareholders of the Company immediately prior to consummation
of any such transaction continue to hold at least a majority of the voting power of
the outstanding voting securities of the legal entity resulting from such
transaction.
	 
	 	 
	X.

	 	Exercise on Termination of Employment
	 
	 	 
	 

	 	Upon a termination of an Optionee’s employment relationship with the Company for any
reason other than death or “total disability” or if a director Optionee ceases to be
a director of the Company, he or she shall have 90 days to exercise any Option
vested on the date of termination. All Options which are non-vested on the date of
termination shall be forfeited and all vested Options which are unexercised within
90 days after termination shall be forfeited.
	 
	 	 
	 

	 	Optionees who voluntarily terminate employment with the Company after 10 years of
service or more and who are not seeking or accepting full-time employment or other
gainful activity, shall be exempt from the requirement to exercise all of their
Options within 90 days of the date of the Optionee’s retirement. These Optionees
shall be granted the right to hold their Options until the expiration date of each
of their Options or for a period of five years from their termination date,
whichever comes first. Any options not exercised within this five year period will
terminate.
	 
	 	 
	XI.

	 	Nontransferability of Options and Stock
	 
	 	 
	 

	 	The Shares received upon exercise of an Option shall be subject to the terms of the
Company’s Shareholders’ Agreement dated ____________, and may not be transferred
except as may be provided in that Shareholders’ Agreement. Options may not be
transferred to any third party, except that in the case of the death of an Optionee,
in which case the Options may be exercised by the Optionee’s designated beneficiary
as provided in Section VIII.

4

 

	 	 	 
	XII.

	 	Repurchase of Shares
	 
	 	 
	 

	 	Pursuant to the Shareholders’ Agreement, after the Optionee exercises his Option,
the Optionee shall have the right to cause the Company to purchase the Optionee’s
Shares at the fair market value of such Shares (as defined in the Shareholder’s
Agreement) by giving written notice to the Company.
	 
	 	 
	 

	 	The Company may elect to purchase such Shares for cash or with a note with principal
payable in three equal annual installments plus interest at prime rate a published
in The Wall Street Journal.
	 
	 	 
	XIII.

	 	Changes in Company’s Capital Structure
	 
	 	 
	 

	 	The existence of outstanding Options shall not affect in any way the right or power
of the Company or its stockholders to make or authorize any or all adjustments,
recapitalization, reorganizations, exchanges, or other changes in the Company’s
capital structure or its business, or any merger or consolidation of the Company, or
any issuance of common stock or other securities or subscription rights thereto, or
any issuance of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Shares or the rights thereof, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business, or
any other corporate act or proceeding, whether of a similar character or otherwise.
However, if outstanding Shares for which an Option is exercisable shall at any time
be changed or exchanged by declaration of a stock dividend, stock split, combination
of shares, recapitalization, or reorganization, the number of Shares subject to
Options, and the Option Price, shall be appropriately and equitably adjusted so as
to maintain the proportionate number of shares or other securities without changing
the aggregate Option Price.
	 
	 	 
	XIV.

	 	No Right to Company Employment
	 
	 	 
	 

	 	Nothing in this Plan or as a result of any Option granted pursuant to this Plan
shall confer on any individual any right to continue in the employ of the Company or
interfere in any way with the right of the Company to terminate an individual’s
employment at any time.
	 
	 	 
	XV.

	 	Amendment or Termination of Plan
	 
	 	 
	 

	 	The Committee may at any time from time to time amend the Plan, or may terminate
this Plan.

5

 

	 	 	 
	XVI.

	 	Option Grants are Discretionary
	 
	 	 
	 

	 	The grant of any Option is entirely discretionary and nothing in this Plan shall be
deemed to give any employee any right to receive Options not specifically granted by
the Committee.
	 
	 	 
	XVII.

	 	Liability
	 
	 	 
	 

	 	No member of the Committee shall be liable for any act or omission relating to the
administration of the Plan, except for acts which constitute gross negligence or
willful misconduct.
	 
	 	 
	XVIII.

	 	Effective Date
	 
	 	 
	 

	 	This Amendment and Restatement of the Plan is effective as of January 1, 2005.
	 
	 	 
	 

	 	IN WITNESS WHEREOF, the Company has caused this Amendment and Restatement of the
Plan to be executed effective as of January 1, 2005.

	 	 	 	 	 
	SNYDER’S OF HANOVER, INC.
	 
	 	 	 	 
	By:
	 	/s/ Carl E. Lee, Jr.
	 	 	 

	 	 	 	 	 
	Print Name:
	 	Carl E. Lee, Jr., President and CEO
	 	 	 

6

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