Document:

EX-10.1

Exhibit 10.1

EXECUTION COPY

 

 

CREDIT AGREEMENT

dated as of

July 1, 2009

among

G&K SERVICES, INC.

as the Company

G&K SERVICES CANADA INC.

as the Canadian Borrower

The Lenders Party Hereto

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

WELLS FARGO BANK, NATIONAL ASSOCIATION and BANK OF AMERICA, N.A.

as Co-Syndication Agents

and

SUNTRUST BANK and U.S. BANK NATIONAL ASSOCIATION

as Co-Documentation Agents

 

J.P. MORGAN SECURITIES INC., WELLS FARGO BANK, NATIONAL ASSOCIATION and BANC

OF AMERICA SECURITIES LLC

as Joint Bookrunners and Joint Lead Arrangers

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I Definitions
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	1	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	22	 
	SECTION 1.03. Terms Generally
	 	 	23	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	23	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	23	 
	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	23	 
	SECTION 2.02. Loans and Borrowings
	 	 	24	 
	SECTION 2.03. Requests for Revolving Borrowings
	 	 	24	 
	SECTION 2.04. Determination of Dollar Amounts
	 	 	25	 
	SECTION 2.05. Swingline Loans
	 	 	25	 
	SECTION 2.06. Letters of Credit
	 	 	26	 
	SECTION 2.07. Funding of Borrowings
	 	 	31	 
	SECTION 2.08. Interest Elections
	 	 	32	 
	SECTION 2.09. Termination and Reduction of Commitments
	 	 	33	 
	SECTION 2.10. Repayment of Loans; Evidence of Debt
	 	 	33	 
	SECTION 2.11. Prepayment of Loans.
	 	 	34	 
	SECTION 2.12. Fees
	 	 	35	 
	SECTION 2.13. Interest
	 	 	36	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	36	 
	SECTION 2.15. Increased Costs
	 	 	37	 
	SECTION 2.16. Break Funding Payments
	 	 	38	 
	SECTION 2.17. Taxes
	 	 	38	 
	SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs
	 	 	39	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	41	 
	SECTION 2.20. Expansion Option
	 	 	42	 
	SECTION 2.21. Market Disruption
	 	 	43	 
	SECTION 2.22. Judgment Currency
	 	 	44	 
	SECTION 2.23. Defaulting Lenders
	 	 	44	 
	SECTION 2.24. Senior Debt
	 	 	45	 
	SECTION 2.25. Interest Act (Canada)
	 	 	45	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	46	 
	 
	 	 	 	 
	SECTION 3.01. Organization; Powers; Subsidiaries
	 	 	46	 
	SECTION 3.02. Authorization; Enforceability
	 	 	46	 
	SECTION 3.03. Governmental Approvals; No Conflicts
	 	 	46	 
	SECTION 3.04. Financial Condition; No Material Adverse Change
	 	 	46	 
	SECTION 3.05. Properties
	 	 	47	 
	SECTION 3.06. Litigation and Environmental Matters
	 	 	47	 
	SECTION 3.07. Compliance with Laws and Agreements
	 	 	47	 
	SECTION 3.08. Investment Company Status
	 	 	48	 
	SECTION 3.09. Taxes
	 	 	48	 
	SECTION 3.10. ERISA
	 	 	48	 

 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	SECTION 3.11. Disclosure
	 	 	48	 
	SECTION 3.12. Federal Reserve Regulations
	 	 	48	 
	SECTION 3.13. Liens
	 	 	48	 
	SECTION 3.14. No Default
	 	 	48	 
	SECTION 3.15. No Burdensome Restrictions
	 	 	48	 
	 
	 	 	 	 
	ARTICLE IV Conditions
	 	 	48	 
	 
	 	 	 	 
	SECTION 4.01. Effective Date
	 	 	48	 
	SECTION 4.02. Each Credit Event
	 	 	50	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	50	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements and Other Information
	 	 	50	 
	SECTION 5.02. Notices of Material Events
	 	 	52	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	52	 
	SECTION 5.04. Payment of Obligations
	 	 	52	 
	SECTION 5.05. Maintenance of Properties; Insurance
	 	 	52	 
	SECTION 5.06. Books and Records; Inspection Rights
	 	 	53	 
	SECTION 5.07. Compliance with Laws and Material Contractual Obligations
	 	 	53	 
	SECTION 5.08. Use of Proceeds
	 	 	53	 
	SECTION 5.09. Subsidiary Guaranties
	 	 	53	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants
	 	 	54	 
	 
	 	 	 	 
	SECTION 6.01. Indebtedness
	 	 	54	 
	SECTION 6.02. Liens
	 	 	54	 
	SECTION 6.03. Fundamental Changes and Asset Sales
	 	 	55	 
	SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions
	 	 	56	 
	SECTION 6.05. Swap Agreements
	 	 	57	 
	SECTION 6.06. Transactions with Affiliates
	 	 	57	 
	SECTION 6.07. Restricted Payments
	 	 	57	 
	SECTION 6.08. Restrictive Agreements
	 	 	57	 
	SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated
Indebtedness Documents
	 	 	58	 
	SECTION 6.10. Sale and Leaseback Transactions
	 	 	59	 
	SECTION 6.11. Intentionally Ommitted
	 	 	59	 
	SECTION 6.12. Financial Covenants
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VII   Events of Default
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VIII  The Administrative Agent
	 	 	62	 
	 
	 	 	 	 
	ARTICLE IX    Miscellaneous
	 	 	64	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	64	 
	SECTION 9.02. Waivers; Amendments
	 	 	65	 

ii 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	66	 
	SECTION 9.04. Successors and Assigns
	 	 	67	 
	SECTION 9.05. Survival
	 	 	70	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	70	 
	SECTION 9.07. Severability
	 	 	70	 
	SECTION 9.08. Right of Setoff
	 	 	70	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	71	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	72	 
	SECTION 9.11. Headings
	 	 	72	 
	SECTION 9.12. Confidentiality
	 	 	72	 
	SECTION 9.13. USA PATRIOT Act
	 	 	73	 
	SECTION 9.14. Several Obligations; Nonreliance; Violation of Law
	 	 	73	 
	SECTION 9.15. Disclosure
	 	 	73	 
	SECTION 9.16. Interest Rate Limitation
	 	 	73	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	Company Guaranty
	 	 	 	 

iii 

 

Table of Contents

(continued)

	 	 	 	 	 
	 	 	Page

SCHEDULES:

	 	 	 	 	 
	Schedule 2.01

	 	—
	 	Commitments
	Schedule 2.02

	 	—
	 	Mandatory Cost
	Schedule 2.06

	 	—
	 	Existing Letters of Credit
	Schedule 3.01

	 	—
	 	Subsidiaries
	Schedule 6.01

	 	—
	 	Existing Indebtedness
	Schedule 6.02

	 	—
	 	Existing Liens
	Schedule 6.04

	 	—
	 	Existing Investments

EXHIBITS:

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment and Assumption
	Exhibit B-1

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

	 	—
	 	Form of Opinion of Loan Parties’ Special Canadian Counsel
	Exhibit C

	 	—
	 	Form of Increasing Lender Supplement
	Exhibit D

	 	—
	 	Form of Augmenting Lender Supplement
	Exhibit E

	 	—
	 	List of Closing Documents
	Exhibit F

	 	—
	 	Form of Compliance Certificate
	Exhibit G-1

	 	—
	 	Form of Domestic Subsidiary Guaranty
	Exhibit G-2

	 	—
	 	Form of Canadian Subsidiary Guaranty

iv 

 

          CREDIT AGREEMENT (this “Agreement”) dated as of July 1, 2009 among G&K SERVICES, INC.,
G&K SERVICES CANADA INC., the LENDERS from time to time party hereto, JPMORGAN CHASE BANK, N.A., as
Administrative Agent, WELLS FARGO BANK, NATIONAL ASSOCIATION and BANK OF AMERICA, N.A., as
Co-Syndication Agents and SUNTRUST BANK and U.S. BANK NATIONAL ASSOCIATION as Co-Documentation
Agents.

          The parties hereto agree as follows:

ARTICLE I

Definitions

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

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

          “Adjusted LIBO Rate” means, with respect to any Eurocurrency Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%)
equal to the sum of (i) (a) the LIBO Rate for such Interest Period if such Eurocurrency Borrowing
is made in an Agreed Currency other than Canadian Dollars, and the CDOR Rate for such Interest
Period if such Eurocurrency Borrowing is made in Canadian Dollars, and in either case multiplied by
(b) the Statutory Reserve Rate plus, without duplication, (ii) in the case of Loans by a
Lender from its office or branch in the United Kingdom, the Mandatory Cost.

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

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

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

          “Aggregate Commitment” means the aggregate of the Commitments of all of the Lenders,
as reduced or increased from time to time pursuant to the terms and conditions hereof. As of the
Effective Date, the Aggregate Commitment is $300,000,000.

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

          “Alternate Base Rate” means, for any day, a rate per annum equal to:

          (i) if the applicable Loan or Borrowing is denominated in Dollars, the greatest of (a) the
Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1/2
of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1%, provided that, for the
avoidance of

 

 

doubt, the Adjusted LIBO Rate for any day shall be based on the applicable screen rate
(including any successor or substitute screen rate) at approximately 11:00 a.m. London time on such
day; and

          (ii) if the applicable Loan or Borrowing is denominated in Canadian Dollars, the greater of
(a) the Canadian Prime Rate and (b) the Adjusted LIBO Rate for a one month Interest Period on such
day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%,
provided that, for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be
based on the applicable screen rate (including any successor or substitute screen rate) at
approximately 10:00 a.m. Toronto time on such day.

Any change in the Alternate Base Rate due to a change in the Prime Rate, the Canadian Prime Rate,
the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including
the effective date of such change in the Prime Rate, the Canadian Prime Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, the percentage of the
Aggregate Commitment represented by such Lender’s Commitment; provided that, in the case of
Section 2.23 when a Defaulting Lender shall exist, “Applicable Percentage” shall mean the
percentage of the Aggregate Commitment (disregarding any Defaulting Lender’s Commitment)
represented by such Lender’s Commitment. If the Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Commitments most recently in effect,
giving effect to any assignments.

          “Applicable Rate” means, for any day, with respect to any Eurocurrency Revolving Loan
or any ABR Revolving Loan or with respect to the commitment fees payable hereunder, as the case may
be, the applicable rate per annum set forth below under the caption “Eurocurrency Spread”, “ABR
Spread” or “Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio applicable on
such date:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Eurocurrency	 	 	 	 
	 	 	Leverage Ratio:	 	Spread	 	ABR Spread	 	Commitment Fee Rate
	 
	Category 1:
	 	< 1.75 to 1.00	 	 	2.25	%	 	 	1.25	%	 	 	0.25	%
	Category 2:
	 	> 1.75 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	< 2.25 to 1.00	 	 	2.50	%	 	 	1.50	%	 	 	0.30	%
	Category 3:
	 	> 2.25 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	< 2.75 to 1.00	 	 	2.75	%	 	 	1.75	%	 	 	0.35	%
	Category 4:
	 	> 2.75 to 1.00	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	< 3.25 to 1.00	 	 	3.00	%	 	 	2.00	%	 	 	0.40	%
	Category 5:
	 	> 3.25 to 1.00	 	 	3.25	%	 	 	2.25	%	 	 	0.50	%

	 	 	For purposes of the foregoing,

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

2

 

     (ii) adjustments, if any, to the Category then in effect shall be effective five (5)
Business Days after the Administrative Agent has received the applicable Financials (it
being understood and agreed that each change in Category shall apply during the period
commencing on the effective date of such change and ending on the date immediately preceding
the effective date of the next such change); and

     (iii) notwithstanding the foregoing, Category 3 shall be deemed to be applicable until
the Administrative Agent’s receipt of the applicable Financials for the Company’s fiscal
quarter ending September 26, 2009 (unless such Financials or those delivered for the
Company’s fiscal quarter ending June 27, 2009 demonstrate that Category 4 or 5 should have
been applicable during such period, in which case such other Category shall be deemed to be
applicable during such period) and adjustments to the Category then in effect shall
thereafter be effected in accordance with the preceding paragraphs.

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

          “Approximate Equivalent Amount” of any currency with respect to any amount of Dollars
means the Equivalent Amount of such currency with respect to such amount of Dollars on or as of
such date, rounded up to the nearest amount of such currency as determined by the Administrative
Agent from time to time.

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

          “Attributable Receivables Indebtedness” at any time means the principal amount of
Indebtedness which (i) if a Permitted Receivables Facility is structured as a secured lending
agreement, constitutes the principal amount of such Indebtedness or (ii) if a Permitted Receivables
Facility is structured as a purchase agreement, would be outstanding at such time under the
Permitted Receivables Facility if the same were structured as a secured lending agreement rather
than a purchase agreement.

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

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

          “Available Revolving Commitment” means, at any time, the excess of the Aggregate
Commitment then in effect over the aggregate Revolving Credit Exposures of all the Lenders at such
time; provided that any Lender’s Swingline Exposure shall not be deemed to be a component
of the Revolving Credit Exposure for purposes of calculating the commitment fee under Section
2.12(a).

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

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

          “Banking Services Obligations” means any and all obligations of the Company or any
Subsidiary, whether absolute or contingent and howsoever and whensoever created, arising, evidenced
or

3

 

acquired (including all renewals, extensions and modifications thereof and substitutions
therefor) in connection with Banking Services.

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

          “Borrowers” means the Company and the Canadian Borrower.

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

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

          “Burdensome Restrictions” means any consensual encumbrance or restriction of the type
described in clause (a) or (b) of Section 6.08.

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

          “Canadian Borrower” means G&K Services Canada Inc., an Ontario corporation.

          “Canadian Dollar Sublimit” means $30,000,000.

          “Canadian Dollars” refers to the lawful currency of Canada.

          “Canadian Prime Rate” means a rate per annum equal to the prime rate of interest
announced from time to time by JPMorgan Chase Bank, N.A. (which is not necessarily the lowest rate
charged to any customer) for loans made in Canadian Dollars at its office in Toronto, Canada,
changing when and as said prime rate changes, and effective on the first Business Day after
announcement.

          “Canadian Subsidiary” means a Subsidiary organized under the laws of a jurisdiction
located in Canada.

          “Canadian Subsidiary Guarantor” means each Material Canadian Subsidiary. The Canadian
Subsidiary Guarantors on the Effective Date are identified as such in Schedule 3.01 hereto.

          “Canadian Subsidiary Guaranty” means that certain Canadian Subsidiary Guaranty
Agreement, to be entered into pursuant to Section 5.09 on or within thirty (30) days (or such later
date as may be agreed upon by the Administrative Agent) of any Subsidiary becoming a Canadian
Subsidiary Guarantor, substantially in the form of Exhibit G-2, to be executed by each
Canadian Subsidiary Guarantor, as amended, restated, supplemented or otherwise modified from time
to time.

4

 

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

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

          “CDOR Rate” means, for the relevant Interest Period, the Canadian deposit offered rate
which in turn means on any day the sum of: (a) the annual rate of interest determined with
reference to the arithmetic average of the discount rate quotations of all institutions listed in
respect of the relevant interest period for Canadian Dollar-denominated bankers’ acceptances
displayed and identified as such on the “Reuters Screen CDOR Page” as defined in the International
Swap Dealer Association, Inc. definitions, as modified and amended from time to time, as of 10:00
a.m. Toronto local time on such day and, if such day is not a Business Day, then on the immediately
preceding Business Day (as adjusted by the Administrative Agent after 10:00 a.m. Toronto local time
to reflect any error in the posted rate of interest or in the posted average annual rate of
interest); plus (b) 0.10% per annum; provided that if such rates are not available
on the Reuters Screen CDOR Page on any particular day, then the Canadian deposit offered rate
component of such rate on that day shall be calculated as the cost of funds quoted by the
Administrative Agent to raise Canadian Dollars for the applicable Interest Period as of 10:00 a.m.
Toronto local time on such day for commercial loans or other extensions of credit to businesses
with credit risk comparable to that of the Company or the Canadian Borrower, as applicable; or if
such day is not a Business Day, then as quoted by the Administrative Agent on the immediately
preceding Business Day.

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the
date hereof) of Equity Interests representing more than 35% of the aggregate ordinary voting power
represented by the issued and outstanding Equity Interests of the Company; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the Company by Persons
who were neither (i) nominated by the board of directors of the Company nor (ii) appointed or
approved by directors so nominated; (c) the occurrence of a change in control, or other similar
provision, as defined in any agreement or instrument evidencing any Indebtedness in excess of
$15,000,000 (triggering a default or mandatory prepayment, which default or mandatory prepayment
has not been waived in writing); or (d) the Company ceases to own, directly or indirectly, and
Control 100% (other than directors’ qualifying shares) of the ordinary voting and economic power of
the Canadian Borrower.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or any Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or such Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

          “Charges” has the meaning assigned to such term in Section 9.16.

5

 

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

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

          “Co-Documentation Agent” means each of SunTrust Bank and U.S. Bank National
Association in its capacity as co-documentation agent for the credit facility evidenced by this
Agreement.

          “Commitment” means, with respect to each Lender, the commitment of such Lender to make
Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,
expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time pursuant
to Section 2.09, (b) increased from time to time pursuant to Section 2.20 and (c) reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.
The initial amount of each Lender’s Commitment is set forth on Schedule 2.01, or in the
Assignment and Assumption or other documentation contemplated hereby pursuant to which such Lender
shall have assumed its Commitment, as applicable.

          “Company” means G&K Services, Inc., a Minnesota corporation.

          “Computation Date” is defined in Section 2.04.

          “Consolidated EBITDA” means Consolidated Net Income plus, to the extent deducted from
revenues in determining Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense
for taxes paid or accrued, (iii) depreciation, (iv) amortization, (v) non-cash charges, (vi)
extraordinary, unusual or non-recurring expenses or losses incurred other than in the ordinary
course of business, minus, to the extent included in Consolidated Net Income, (vii) income tax
credits and refunds (to the extent not netted from tax expense), (viii) any cash payments made
during such period in respect of items described in clause (v) above subsequent to the fiscal
quarter in which the relevant non-cash charges were incurred, (ix) non-cash gains, and (x)
extraordinary, unusual or non-recurring income or gains realized other than in the ordinary course
of business, all calculated for the Company and its Subsidiaries in accordance with GAAP on a
consolidated basis. For the purposes of calculating Consolidated EBITDA for any period of four
consecutive fiscal quarters (each, a “Reference Period”), (i) if at any time during such
Reference Period the Company or any Subsidiary shall have made any Material Disposition, the
Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the
Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material
Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA
(if negative) attributable thereto for such Reference Period, and (ii) if during such Reference
Period the Company or any Subsidiary shall have made a Material Acquisition, Consolidated EBITDA
for such Reference Period shall be calculated after giving pro forma effect thereto as if such
Material Acquisition occurred on the first day of such Reference Period. As used in this
definition, “Material Acquisition” means any acquisition of property or series of related
acquisitions of property that (a) constitutes (i) assets comprising all or substantially all or any
significant portion of a business or operating unit of a business, or (ii) all or substantially all
of the common stock or other Equity Interests of a Person, and (b) involves the payment of
consideration by the Company and its Subsidiaries in excess of $35,000,000; and “Material
Disposition” means any sale, transfer or disposition of property or series of related sales,
transfers, or dispositions of property that yields gross proceeds to the Company or any of its
Subsidiaries in excess of $35,000,000.

          “Consolidated Interest Expense” means, with reference to any period, the interest
expense (including without limitation interest expense under Capital Lease Obligations that is
treated as interest in accordance with GAAP) of the Company and its Subsidiaries calculated on a
consolidated

6

 

basis for such period with respect to (a) all outstanding Indebtedness of the Company and its
Subsidiaries allocable to such period in accordance with GAAP (including, without limitation, all
commissions, discounts and other fees and charges owed with respect to letters of credit and
bankers acceptance financing and net costs under interest rate Swap Agreements to the extent such
net costs are allocable to such period in accordance with GAAP) and (b) the interest component of
all Attributable Receivable Indebtedness of the Company and its Subsidiaries for such period.

          “Consolidated Net Income” means, with reference to any period, the net income (or
loss) of the Company and its Subsidiaries calculated in accordance with GAAP on a consolidated
basis (without duplication) for such period.

          “Consolidated Net Worth” means, with respect to the Company and its Subsidiaries as of
any date of determination, shareholders’ equity of the Company and its Subsidiaries determined on a
consolidated basis in accordance with GAAP.

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

          “Consolidated Total Indebtedness” means at any time the sum, without duplication, of
(a) the aggregate Indebtedness of the Company and its Subsidiaries calculated on a consolidated
basis as of such time in accordance with GAAP, (b) the aggregate amount of Indebtedness of the
Company and its Subsidiaries relating to the maximum drawing amount of all outstanding letters of
credit and bankers acceptances and (c) Indebtedness of the type referred to in clauses (a) or (b)
hereof of another Person guaranteed by the Company or any of its Subsidiaries. For the avoidance
of doubt, Consolidated Total Indebtedness includes all Attributable Receivables Indebtedness.

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

          “Co-Syndication Agents” means Wells Fargo Bank, National Association and Bank of
America, N.A., in their capacities as co-syndication agents for the credit facility evidenced by
this Agreement.

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

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

          “Defaulting Lender” means any Lender, as determined by the Administrative Agent, that
has (a) failed to fund any portion of its Loans or participations in Letters of Credit or Swingline
Loans within three (3) Business Days of the date required to be funded by it hereunder, (b)
notified the Company, the Administrative Agent, any Issuing Bank, the Swingline Lender or any
Lender in writing that it does not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does not intend to comply with its
funding obligations under this Agreement or under other agreements in which it commits to extend
credit, (c) failed, within three (3) Business Days after request by the Administrative Agent, to
confirm that it will comply with the terms of this Agreement relating to its obligations to fund
prospective Loans and participations in then outstanding Letters of Credit and Swingline Loans, (d)
otherwise failed to pay over to the Administrative Agent or

7

 

any other Lender any other amount required to be paid by it hereunder within three (3)
Business Days of the date when due, unless the subject of a good faith dispute, or (e) (i) become
or is insolvent or has a parent company that has become or is insolvent or (ii) become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee,
administrator, assignee for the benefit of creditors or similar Person charged with reorganization
or liquidation of its business or custodian, appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or has a parent company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its business or custodian
appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval
of or acquiescence in any such proceeding or appointment.

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

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

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

          “Domestic Subsidiary Guarantor” means each Material Domestic Subsidiary. The Domestic
Subsidiary Guarantors on the Effective Date are identified as such in Schedule 3.01 hereto.

          “Domestic Subsidiary Guaranty” means that certain Domestic Subsidiary Guaranty
Agreement dated as of the Effective Date, substantially in the form of Exhibit G-1,
executed by each Domestic Subsidiary Guarantor party thereto, as amended, restated, supplemented or
otherwise modified from time to time.

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

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

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

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

8

 

          “Equivalent Amount” of any currency with respect to any amount of Dollars at any date
means the equivalent in such currency of such amount of Dollars, calculated on the basis of the
Exchange Rate for such other currency on the date on or as of which such amount is to be
determined.

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

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

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

          “EU” means the European Union.

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

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

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

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

          “Exchange Rate” means, on any day, with respect to any Foreign Currency, the rate at
which such Foreign Currency may be exchanged into Dollars, as set forth at approximately 11:00
a.m., Local Time, on such date on the Reuters World Currency Page for such Foreign Currency. In
the event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate with
respect to such Foreign Currency shall be determined by reference to such other publicly available
service for displaying exchange rates as may be reasonably selected by the Administrative Agent or,
in the event no such service is selected, such Exchange Rate shall instead be calculated on the
basis of the arithmetical mean of the buy and sell spot rates of exchange of the Administrative
Agent for such Foreign Currency on the London market at 11:00 a.m., Local Time, on such date for
the purchase of Dollars with such Foreign

9

 

Currency, for delivery two Business Days later; provided, that if at the time of any
such determination, for any reason, no such spot rate is being quoted, the Administrative Agent,
after consultation with the Company, may use any reasonable method it deems appropriate to
determine such rate, and such determination shall be conclusive absent manifest error.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, any
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Company or the Canadian Borrower hereunder, (a) income or franchise taxes imposed on (or
measured by) its net income by the United States of America, or by the jurisdiction (or any
political subdivision thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its applicable lending office
is located, (b) any branch profits taxes imposed by the United States of America or any similar tax
imposed by any other jurisdiction (or any political subdivision thereof) in which the Company or
the Canadian Borrower is located and (c) in the case of a Foreign Lender (other than an assignee
pursuant to a request by the Company under Section 2.19(b)), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure
to comply with Section 2.17(e), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or assignment), to receive
additional amounts from any Borrower with respect to such withholding tax pursuant to Section
2.17(a).

          “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement,
dated as of August 31, 2005, by and among the Company, the Canadian Borrower, the financial
institutions from time to time parties thereto as lenders, and JPMorgan Chase Bank, N.A., as
administrative agent, as the same may have been amended, restated, supplemented or otherwise
modified from time to time.

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

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

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

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

          “Foreign Currencies” means Agreed Currencies other than Dollars.

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

10

 

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

          “Foreign Currency Sublimit” means $25,000,000.

          “Foreign Lender” means (i) with respect to the Company, any Lender that is organized
under the laws of a jurisdiction other than that in which the Company is located, and (ii) with
respect to the Canadian Borrower, any Lender that is organized under the laws of a jurisdiction
other than that in which the Canadian Borrower is located. For purposes of this definition, the
United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction, and Canada and each province and territory thereof shall be
deemed to constitute a single jurisdiction.

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

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

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

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

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

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

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

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

11

 

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

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business that are
not more than 180 days past due), (f) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any
Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby
has been assumed, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital
Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as
an account party in respect of letters of credit and letters of guaranty, (j) all obligations,
contingent or otherwise, of such Person in respect of bankers acceptances, (k) all Attributable
Receivables Indebtedness of such Person and (l) all obligations of such Person under Sale and
Leaseback Transactions. The Indebtedness of any Person shall include the Indebtedness of any other
entity (including any partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or other relationship
with such entity, except to the extent the terms of such Indebtedness provide that such Person is
not liable therefor. The amount of Indebtedness incurred by any Person in connection with any
Guarantee by such Person shall be deemed to be an amount equal to (i) the stated amount of such
Guarantee, (ii) the stated amount of the primary obligation in respect of which such Guarantee is
made if such Guarantee does not set forth a stated amount, or (iii) such Person’s reasonably
anticipated liability in respect of such Guarantee as determined by the Company and approved by the
Administrative Agent if neither such Guarantee nor such primary obligation sets forth a stated
amount.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information Memorandum” means the Confidential Information Memorandum dated June 2009
relating to the Company and the Transactions.

          “Interest Coverage Ratio” has the meaning assigned to such term in Section 6.12(b).

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

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the last day of each March, June, September and December and the Maturity Date, (b) with
respect to any Eurocurrency Loan, the last day of the Interest Period applicable to the Borrowing
of which such Loan is a part and, in the case of a Eurocurrency Borrowing with an Interest Period
of more than three months’ duration, each day prior to the last day of such Interest Period that
occurs at intervals of three months’ duration after the first day of such Interest Period and the
Maturity Date and (c) with respect to any Swingline Loan, the day that such Loan is required to be
repaid and the Maturity Date.

          “Interest Period” means with respect to any Eurocurrency Borrowing, the period
commencing on the date of such Borrowing and ending either (x) one week or two weeks thereafter or
(y) on the numerically corresponding day in the calendar month that is one, two, three or six
months thereafter, in each case, as the applicable Borrower (or the Company on behalf of the
applicable Borrower) may elect; provided, that (i) if any Interest Period would end on a
day other than a Business

12

 

Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the
case of a Eurocurrency Borrowing only, such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next preceding Business Day and
(ii) if the Interest Period elected by the applicable Borrower (or the Company on behalf of the
applicable Borrower) is for a term other than one week or two weeks, any Interest Period pertaining
to a Eurocurrency Borrowing that commences on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is
made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.

          “Issuing Banks” means JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National
Association, in their capacities as the issuers of Letters of Credit hereunder, and their
respective successors in such capacity as provided in Section 2.06(i). Either Issuing Bank may, in
its respective discretion, arrange for one or more Letters of Credit to be issued by any of its
respective Affiliates, in which case the term “Issuing Bank” shall include any such Affiliate with
respect to Letters of Credit issued by such Affiliate.

          “Lead Arrangers” means J.P. Morgan Securities Inc., Wells Fargo Bank, National
Association and Banc of America Securities LLC, in their capacities as joint lead arrangers and
joint bookrunners for the credit facility evidenced by this Agreement.

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

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

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

          “Lenders” means the Persons listed on Schedule 2.01 and any other Person that
shall have become a Lender hereunder pursuant to Section 2.20 or pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment
and Assumption. Unless the context otherwise requires, the term “Lenders” includes the Swingline
Lender.

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

          “Leverage Ratio” has the meaning assigned to such term in Section 6.12(a).

          “LIBO Rate” means, with respect to any Eurocurrency Borrowing for any Interest Period,
the rate appearing on, in the case of Dollars, Reuters Screen LIBOR01 Page and, in the case of any
Foreign Currency, the appropriate page of such service which displays British Bankers Association
Interest Settlement Rates for deposits in such Foreign Currency (or, in each case, on any successor
or substitute page of such service, or any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of such service, as determined
by the Administrative Agent from time to time for purposes of providing quotations of interest
rates applicable to deposits in the relevant Agreed Currency in the London interbank market) at
approximately 11:00 a.m.,

13

 

London time, two (2) Business Days prior to (or, in the case of Loans denominated in Pounds
Sterling, on the day of) the commencement of such Interest Period, as the rate for deposits in the
relevant Agreed Currency with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the “LIBO Rate” with respect
to such Eurocurrency Borrowing for such Interest Period shall be the rate at which deposits in the
relevant Agreed Currency in an Equivalent Amount of $5,000,000 and for a maturity comparable to
such Interest Period are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period.

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

          “Loan Documents” means this Agreement, the Subsidiary Guaranties, any promissory notes
executed and delivered pursuant to Section 2.10(e) and any and all other instruments and documents
executed and delivered in connection with any of the foregoing. Any reference in the Agreement or
any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules
thereto, and all amendments, restatements, supplements or other modifications thereto, and shall
refer to the Agreement or such Loan Document as the same may be in effect at any and all times such
reference becomes operative.

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

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

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

          “Mandatory Cost” is described in Schedule 2.02.

          “Material Adverse Effect” means a material adverse effect on (a) the properties,
business, prospects, operations or condition (financial or otherwise) of the Company and the
Subsidiaries taken as a whole or (b) the ability of the Company or any of the Subsidiaries to
perform its obligations under the Loan Documents.

          “Material Canadian Subsidiary” means any direct or indirect Canadian Subsidiary that
is a Material Subsidiary.

          “Material Contracts” means any contract or other agreement, written or oral, of the
Borrower or any Subsidiary (a) evidencing any Material Indebtedness or (b) the failure to comply
with which could reasonably be expected to have a material adverse effect on the properties,
business,

14

 

prospects, operations or condition (financial or otherwise) of the Company and the
Subsidiaries taken as a whole.

          “Material Domestic Subsidiary” means any direct or indirect Domestic Subsidiary that
is a Material Subsidiary.

          “Material Indebtedness” means any Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Company and its Subsidiaries involving monetary liability of or to any such Person in an amount in
excess of $20,000,000 per annum. For purposes of determining Material Indebtedness, the “monetary
liability” of the obligations of the Company or any Subsidiary in respect of any Swap Agreement at
any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the
Company or such Subsidiary would be required to pay if such Swap Agreement were terminated at such
time.

          “Material Subsidiary” means each Subsidiary, other than a Receivables Entity, (i)
which, as of the most recent fiscal quarter of the Company, for the period of four consecutive
fiscal quarters then ended, for which financial statements have been delivered pursuant to Section
5.01, contributed greater than or equal to ten percent (10%) of the Company’s Consolidated EBITDA
for such period or (ii) which contributed greater than or equal to ten percent (10%) of the
Company’s Consolidated Total Assets as of such date; provided that, if at any time the
aggregate amount of the Company’s Consolidated EBITDA or Company’s Consolidated Total Assets
attributable to Subsidiaries that are not Subsidiary Guarantors exceeds twenty percent (20%) of the
Company’s Consolidated EBITDA for any such period or twenty percent (20%) of the Company’s
Consolidated Total Assets as of the end of any such fiscal quarter, the Company (or, in the event
the Company has failed to do so within ten days, the Administrative Agent) shall designate
sufficient Subsidiaries as “Material Subsidiaries” to eliminate such excess, and such designated
Subsidiaries shall for all purposes of this Agreement constitute Material Subsidiaries.

          “Maturity Date” means July 1, 2012.

          “Maximum Rate” has the meaning assigned to such term in Section 9.16.

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

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

          “Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities
and other obligations and indebtedness (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), obligations and liabilities of any of the Company and its
Subsidiaries to any of the Lenders, the Administrative Agent, any of the Issuing Banks or any
indemnified party, individually or collectively, existing on the Effective Date or arising
thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or
otherwise, arising or incurred under this Credit Agreement or any of the other Loan Documents or to
the Lenders or any of their Affiliates under any Swap Agreement or any Banking Services Agreement
or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the
Letters of Credit or other instruments at any time evidencing any thereof.

          “Original Currency” has the meaning assigned to such term in Section 2.18(a).

15

 

          “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies (including, without limitation, any
penalties and interest arising therefrom or with respect thereto) arising from any payment made
hereunder or from the execution, delivery or enforcement of, or otherwise with respect to, this
Agreement or any other Loan Document.

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

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

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

          “Permitted Acquisition” means any acquisition (whether by purchase, merger,
consolidation or otherwise but excluding in any event a Hostile Acquisition) or series of related
acquisitions by the Company or any Subsidiary of (i) all or substantially all the assets of or (ii)
all or substantially all the Equity Interests in, a Person or division or line of business of a
Person, if, at the time of and immediately after giving effect thereto, (a) no Default has occurred
and is continuing or would arise after giving effect thereto, (b) such Person or division or line
of business is engaged in the same or a similar line of business as the Company and the
Subsidiaries or business reasonably related thereto, (c) all actions required to be taken with
respect to such acquired or newly formed Subsidiary under Section 5.09 shall have been taken, (d)
the Company and the Subsidiaries are in compliance, on a pro forma basis reasonably acceptable to
the Administrative Agent after giving effect to such acquisition (but without giving effect to any
synergies or cost savings), with the covenants contained in Section 6.12 recomputed as of the last
day of the most recently ended fiscal quarter of the Company for which financial statements are
available, as if such acquisition (and any related incurrence or repayment of Indebtedness, with
any new Indebtedness being deemed to be amortized over the applicable testing period in accordance
with its terms) had occurred on the first day of each relevant period for testing such compliance
and, if the aggregate consideration paid in respect of such acquisition exceeds $35,000,000, the
Company shall have delivered to the Administrative Agent a certificate of a Financial Officer of
the Company to such effect, together with all relevant financial information, statements and
projections reasonably requested by the Administrative Agent, (e) in the case of an acquisition or
merger involving the Company or a Subsidiary, the Company or such Subsidiary is the surviving
entity of such merger and/or consolidation; provided, that a Subsidiary may merge into another
Person and such Person may be the survivor thereof if such Person becomes a Subsidiary immediately
after giving effect to such merger and, if required hereunder, a Subsidiary Guarantor, and (f) the
Company shall be in compliance (on a pro forma basis reasonably acceptable to the Administrative
Agent) with the covenants contained in Section 6.12.

          “Permitted Encumbrances” means:

          (a) Liens imposed by law for taxes, utilities, assessments or other governmental charges or
levies, in each case, that are not yet due or are being contested in compliance with Section 5.04;

16

 

          (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by law, arising in the ordinary course of business and securing obligations that are not
overdue by more than thirty (30) days or are being contested in compliance with Section 5.04;

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

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

          (e) judgment liens in respect of judgments that do not constitute an Event of Default under
clause (n) of Article VII;

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

          (g) any interest or title of a lessor, sublessor, or licensor under any operating lease or
license agreement entered into in the ordinary course of business and not interfering in any
material respect with the rights, benefits or privileges of such lease or licensing agreement, as
the case may be;

          (h) Liens in favor of payor financial institutions having a right of setoff, revocation,
refund or chargeback with respect to funds or instruments of the Company or any Subsidiary on
deposit with or in possession of such financial institution;

          (i) the filing of any UCC financing statement solely as a precautionary measure in connection
with any lease transaction otherwise permitted hereunder in which the Company or any Subsidiary is
the lessee; and

          (j) Liens on cash deposited into escrow accounts to secure indemnification obligations with
respect to any asset sales permitted by clause (iii) of Section 6.03(a);

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

          “Permitted Investments” means:

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

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, any domestic office of
any

17

 

commercial bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not less than
$500,000,000;

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

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

          “Permitted Receivables Facility” means the receivables facility or facilities created
under the Permitted Receivables Facility Documents, providing for the sale or pledge by the Company
and/or one or more other Receivables Sellers of Permitted Receivables Facility Assets (thereby
providing financing to the Company and the Receivables Sellers) to the Receivables Entity (either
directly or through another Receivables Seller), which in turn shall sell or pledge interests in
the respective Permitted Receivables Facility Assets to third-party investors pursuant to the
Permitted Receivables Facility Documents (with the Receivables Entity permitted to issue investor
certificates, purchased interest certificates or other similar documentation evidencing interests
in the Permitted Receivables Facility Assets) in return for the cash used by the Receivables Entity
to purchase the Permitted Receivables Facility Assets from the Company and/or the respective
Receivables Sellers, in each case as more fully set forth in the Permitted Receivables Facility
Documents.

          “Permitted Receivables Facility Assets” means (i) Receivables (whether now existing or
arising in the future) of the Company and its Subsidiaries which are transferred or pledged to the
Receivables Entity pursuant to the Permitted Receivables Facility and any related Permitted
Receivables Related Assets which are also so transferred or pledged to the Receivables Entity and
all proceeds thereof and (ii) loans to the Company and its Subsidiaries secured by Receivables
(whether now existing or arising in the future) and any Permitted Receivables Related Assets of the
Company and its Subsidiaries which are made pursuant to the Permitted Receivables Facility.

          “Permitted Receivables Facility Documents” means each of the documents and agreements
entered into in connection with the Permitted Receivables Facility, including all documents and
agreements relating to the issuance, funding and/or purchase of certificates and purchased
interests, all of which documents and agreements shall be in form and substance reasonably
satisfactory to the Administrative Agent, in each case as such documents and agreements may be
amended, modified, supplemented, refinanced or replaced from time to time so long as (i) any such
amendments, modifications, supplements, refinancings or replacements do not impose any conditions
or requirements on the Company or any of its Subsidiaries that are more restrictive in any material
respect than those in existence immediately prior to any such amendment, modification, supplement,
refinancing or replacement, (ii) any such amendments, modifications, supplements, refinancings or
replacements are not adverse in any way to the interests of the Lenders and (iii) any such
amendments, modifications, supplements, refinancings or replacements are otherwise in form and
substance reasonably satisfactory to the Administrative Agent. As of the Effective Date, for
purposes of this definition, that certain Amended and Restated Loan Agreement, dated as of October
1, 2008, by and among G&K Receivables Corp., the Company, Three Pillars Funding LLC and Suntrust
Robinson Humphrey, Inc., and all other documents and agreements entered into in connection
therewith and in effect on the Effective Date relating to the Company’s receivables facility, are,
in each case, in form and substance satisfactory to the Administrative Agent.

18

 

          “Permitted Receivables Related Assets” means any other assets that are customarily
transferred or in respect of which security interests are customarily granted in connection with
asset securitization transactions involving receivables similar to Receivables and any collections
or proceeds of any of the foregoing.

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

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

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

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

          “Quoted Swingline Rate” means a rate to be agreed upon from time to time by the
Swingline Lender and the Company.

          “Quoted Swingline Rate Loan” means any Swingline Loan bearing interest at a rate based
upon the Quoted Swingline Rate.

          “Receivables” means all accounts receivable (including, without limitation, all rights
to payment created by or arising from sales of goods, leases of goods or the rendition of services
rendered no matter how evidenced whether or not earned by performance).

          “Receivables Entity” means a wholly-owned Subsidiary of the Company which engages in
no activities other than in connection with the financing of accounts receivable of the Receivables
Sellers and which is designated (as provided below) as the “Receivables Entity” (a) no portion of
the Indebtedness or any other obligations (contingent or otherwise) of which (i) is guaranteed by
the Company or any other Subsidiary of the Company (excluding guarantees of obligations (other than
the principal of, and interest on, Indebtedness) pursuant to Standard Securitization Undertakings),
(ii) is recourse to or obligates the Company or any other Subsidiary of the Company in any way
(other than pursuant to Standard Securitization Undertakings) or (iii) subjects any property or
asset of the Company or any other Subsidiary of the Company, directly or indirectly, contingently
or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings, (b) with which neither the Company nor any of its Subsidiaries has any contract,
agreement, arrangement or understanding (other than pursuant to the Permitted Receivables Facility
Documents (including with respect to fees payable in the ordinary course of business in connection
with the servicing of accounts receivable and related assets)) on terms less favorable to the
Company or such Subsidiary than those that might be obtained at the time from Persons that are not
Affiliates of the Company, and (c) to which neither the Company nor any other Subsidiary of the
Company has any obligation to maintain or preserve such entity’s financial condition or cause such
entity to achieve certain levels of operating results. Any such designation shall be evidenced to
the Administrative Agent by filing with the Administrative Agent an officer’s certificate of the
Company certifying that, to the best of such officer’s knowledge and belief after consultation with
counsel, such designation complied with the foregoing conditions.

19

 

          “Receivables Sellers” means the Company and those Subsidiary Guarantors that are from
time to time party to the Permitted Receivables Facility Documents.

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

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

          “Required Lenders” means, at any time, Lenders having Revolving Credit Exposures and
unused Commitments representing not less than 51% of the sum of the total Revolving Credit
Exposures and unused Commitments at such time.

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

          “Restricted Payment Limitations” means, during any fiscal year of the Company, that
the Company shall not make Restricted Payments during such fiscal year which, in the aggregate,
exceed the following amounts when the Leverage Ratio falls within the following levels during such
fiscal year; provided, that (i) if the Company makes Restricted Payments during a portion
of a fiscal year when the Leverage Ratio is less than that in effect during a subsequent portion of
such fiscal year, and such Restricted Payments made during the earlier portion of such fiscal year
exceed what would be permitted during the subsequent portion of such fiscal year, then the Company
shall not be permitted to make any further Restricted Payments during such fiscal year until the
applicable Leverage Ratio allows for them to be made, (ii) in determining whether Restricted
Payments may be made at any time pursuant to this definition, the Leverage Ratio as of the most
recently ended fiscal quarter of the Company (after giving pro forma effect to such Restricted
Payments) shall be used, and (iii) the Restricted Payment Limitations shall be re-determined each
fiscal year without giving effect to any previous fiscal year’s Restricted Payment Limitations. By
way of example only, if the Leverage Ratio is 1.50 to 1.00 for the period ending March 27, 2010,
and the Company makes $120,000,000 of Restricted Payments during such period (to the extent
otherwise permitted), then the Company would not be entitled to make any further Restricted
Payments during the Company’s 2010 fiscal year unless the Leverage Ratio continued to be less than
2.50 to 1.00, but could potentially make further Restricted Payments during the Company’s 2011
fiscal year based on the Leverage Ratio then in effect.

	 	 	 	 	 
	 	 	Aggregate Amount of Permitted
	Leverage Ratio 	 	Restricted Payments (Per Fiscal Year)
	< 2.50 to 1.00
	 	No limitation
	> 2.50 to 1.00 and < 3.00 to 1.00
	 	$	100,000,000	 
	> 3.00 to 1.00
	 	$	35,000,000	 

20

 

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

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

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

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

          “Standard Securitization Undertakings” means representations, warranties, covenants
and indemnities entered into by the Company or any Subsidiary thereof in connection with the
Permitted Receivables Facility which are reasonably customary in an accounts receivable financing
transaction.

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

          “Subordinated Indebtedness” means any Indebtedness of the Company or any Subsidiary
the payment of which is subordinated to payment of the obligations under the Loan Documents.

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

          “subsidiary” means, as to any Person, any corporation, partnership, limited liability
company or other entity of which more than fifty percent (50%) of the outstanding capital stock or
other ownership interests having ordinary voting power to elect a majority of the board of
directors or other managers of such corporation, partnership, limited liability company or other
entity is at the time owned by or the management is otherwise controlled by such Person
(irrespective of whether, at the time, capital stock or other ownership interests of any other
class or classes of such corporation, partnership, limited liability company or other entity shall
have or might have voting power by reason of the happening of any contingency).

          “Subsidiary” means any subsidiary of the Company.

          “Subsidiary Guaranties” means, collectively, the Domestic Subsidiary Guaranty and the
Canadian Subsidiary Guaranty.

21

 

          “Subsidiary Guarantor” means a Domestic Subsidiary Guarantor or a Canadian Subsidiary
Guarantor, as applicable.

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

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

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

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

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

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

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings (including, without limitation, any penalties and interest
arising therefrom or with respect thereto) imposed by any Governmental Authority.

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

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

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

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or
by Type (e.g., a “Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency
Revolving Loan”). Borrowings also

22

 

may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type
(e.g., a “Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency
Revolving Borrowing”).

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

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Company notifies the Administrative Agent
that the Company requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on the operation of
such provision (or if the Administrative Agent notifies the Company that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of whether any such
notice is given before or after such change in GAAP or in the application thereof, then such
provision shall be interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith. Notwithstanding any other provision contained herein,
all terms of an accounting or financial nature used herein shall be construed, and all computations
of amounts and ratios referred to herein shall be made, without giving effect to any election under
Statement of Financial Accounting Standards 159 (or any other Financial Accounting Standard having
a similar result or effect) to value any Indebtedness or other liabilities of the Company or any
Subsidiary at “fair value”, as defined therein.

ARTICLE II

The Credits

          SECTION 2.01. Commitments. Subject to the terms and conditions set forth herein,
each Lender agrees to make Revolving Loans to the Company in Agreed Currencies and to the Canadian
Borrower in Canadian Dollars, in each case, from time to time during the Availability Period in an
aggregate principal amount that will not result in (in each case, subject to Sections 2.04 and
2.11(b)) (a) the Dollar Amount of such Lender’s Revolving Credit Exposure exceeding such Lender’s
Commitment, (b) the sum of the Dollar Amount of the total Revolving Credit Exposures exceeding the
Aggregate Commitment, (c) the Dollar Amount of the sum of the total outstanding Revolving Loans
made to the Company plus the LC Exposure with respect to the Company, in each case,
denominated in Foreign Currencies, exceeding the Foreign Currency Sublimit, or (d) the Dollar
Amount of the sum of the total outstanding Revolving Loans made to the Canadian Borrower
plus the LC Exposure with respect to the

23

 

Canadian Borrower, exceeding the Canadian Dollar Sublimit. Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrowers may borrow, prepay and reborrow
Revolving Loans.

          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan (other than a Swingline
Loan) shall be made as part of a Borrowing consisting of Revolving Loans made by the Lenders
ratably in accordance with their respective Commitments. The failure of any Lender to make any
Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible
for any other Lender’s failure to make Loans as required. Any Swingline Loan shall be made in
accordance with the procedures set forth in Section 2.05.

          (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR
Loans or Eurocurrency Loans as the Company, on behalf of itself or the Canadian Borrower, may
request in accordance herewith; provided that each ABR Loan shall only be made in Dollars
or Canadian Dollars. Each Swingline Loan shall be an ABR Loan or a Quoted Swingline Rate Loan, as
the Company may request in accordance herewith. Each Lender at its option may make any
Eurocurrency Loan by causing any domestic or foreign branch or Affiliate of such Lender to make
such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17
shall apply to such Affiliate to the same extent as to such Lender); provided that any
exercise of such option shall not affect the obligation of the relevant Borrower to repay such Loan
in accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurocurrency Revolving Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not
less than $1,000,000 (or the Approximate Equivalent Amount of each such amount if such Borrowing is
denominated in a Foreign Currency). At the time that each ABR Revolving Borrowing is made, such
Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less
than $100,000; provided that an ABR Revolving Borrowing may be in an aggregate amount that
is equal to the entire unused balance of the Aggregate Commitment or that is required to finance
the reimbursement of an LC Disbursement as contemplated by Section 2.06(e). Each Swingline Loan
shall be in an amount that is an integral multiple of $100,000 and not less than $100,000.
Borrowings of more than one Type and Class may be outstanding at the same time; provided
that there shall not at any time be more than a total of eight (8) Eurocurrency Revolving
Borrowings outstanding.

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

          SECTION 2.03. Requests for Revolving Borrowings. To request a Revolving Borrowing,
the Company, on behalf of itself or the Canadian Borrower, shall notify the Administrative Agent of
such request (a) by telephone in the case of a Eurocurrency Borrowing, not later than 12:00 noon,
Local Time, three (3) Business Days (in the case of a Eurocurrency Borrowing denominated in Dollars
or Canadian Dollars) or by irrevocable written notice (via a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Company, on behalf of itself or the Canadian
Borrower) not later than four (4) Business Days (in the case of a Eurocurrency Borrowing
denominated in a Foreign Currency (other than Canadian Dollars)), in each case, before the date of
the proposed Borrowing or (b) by telephone in the case of an ABR Borrowing, not later than 12:00
noon, New York City time, one (1) Business Day before the date of the proposed Borrowing;
provided that any such notice of an ABR Revolving Borrowing to finance the reimbursement of
an LC Disbursement as contemplated by Section 2.06(e) may be given not later than 11:00 a.m., New
York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request
shall be irrevocable and shall be

24

 

confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by the Company, on
behalf of itself or the Canadian Borrower. Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.02:

     (i) the aggregate amount of the requested Borrowing;

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

     (iii) whether such Borrowing is to be an ABR Borrowing or a Eurocurrency Borrowing;

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

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

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

          SECTION 2.04. Determination of Dollar Amounts. The Administrative Agent will
determine the Dollar Amount of:

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

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

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

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

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans in Dollars to the Company from time to
time during the Availability Period, in an aggregate principal amount at any time outstanding that
will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding
$25,000,000 or (ii) the Dollar Amount of the total Revolving Credit Exposures exceeding the
Aggregate Commitment; provided that the Swingline Lender shall not be required to make a
Swingline Loan to refinance an

25

 

outstanding Swingline Loan. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Company may borrow, prepay and reborrow Swingline Loans.

          (b) To request a Swingline Loan, the Company shall notify the Administrative Agent of such
request by telephone (confirmed by telecopy), not later than 1:00 p.m., New York City time, on the
day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the
requested date (which shall be a Business Day), whether such Swingline Loan shall be an ABR Loan or
Quoted Swingline Rate Loan, and the amount of the requested Swingline Loan. The Administrative
Agent will promptly advise the Swingline Lender of any such notice received from the Company. The
Swingline Lender shall make each Swingline Loan available to the Company by means of a credit to
the general deposit account of the Company with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section
2.06(e), by remittance to the applicable Issuing Bank) by 3:00 p.m., New York City time, on the
requested date of such Swingline Loan.

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

          SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and
conditions set forth herein, the Company, on behalf of itself or the Canadian Borrower, may request
the issuance of Letters of Credit (x) denominated in Agreed Currencies, with respect to Letters of
Credit issued for the account of the Company, or (y) denominated in Canadian Dollars, with respect
to Letters of Credit issued for the account of the Canadian Borrower, in each case, in a form
reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at any time and
from time to time during the Availability Period. In the event of any inconsistency between the
terms and conditions of this

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Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by the Company to, or entered into by either Borrower with, any Issuing Bank
relating to any Letter of Credit, the terms and conditions of this Agreement shall control. The
letters of credit identified on Schedule 2.06 (the “Existing Letters of Credit”)
shall be deemed to be “Letters of Credit” issued on the Effective Date for all purposes of the Loan
Documents.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To
request the issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Company shall, on behalf of itself or the Canadian Borrower,
hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so
have been approved by the applicable Issuing Bank) to the Issuing Banks and the Administrative
Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a
notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be
amended, renewed or extended, and specifying the date of issuance, amendment, renewal or extension
(which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall
comply with paragraph (c) of this Section), the amount of such Letter of Credit, the Agreed
Currency applicable thereto (if such Letter of Credit is for the account of the Company), the name
and address of the beneficiary thereof and such other information as shall be necessary to prepare,
amend, renew or extend such Letter of Credit. If requested by any Issuing Bank, the Company, on
behalf of itself or the Canadian Borrower, also shall submit a letter of credit application on such
Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of
Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal
or extension of each Letter of Credit, the Borrower for whose account such Letter of Credit is
being or was issued shall be deemed to represent and warrant that), after giving effect to such
issuance, amendment, renewal or extension (i) subject to Sections 2.04 and 2.11(b), the Dollar
Amount of the LC Exposure shall not exceed $50,000,000, (ii) subject to Sections 2.04 and 2.11(b),
the sum of the Dollar Amount of the total Revolving Credit Exposures shall not exceed the Aggregate
Commitment, (iii) subject to Sections 2.04 and 2.11(b), with respect to any Letter of Credit issued
or being issued for the account of the Company, the Dollar Amount of the sum of the total
outstanding Revolving Loans made to the Company plus the LC Exposure with respect to the
Company, in each case denominated in Foreign Currencies, shall not exceed the Foreign Currency
Sublimit, and (iv) subject to Sections 2.04 and 2.11(b), with respect to any Letter of Credit
issued or being issued for the account of the Canadian Borrower, the Dollar Amount of the sum of
the total outstanding Revolving Loans made to the Canadian Borrower plus the LC Exposure
with respect to the Canadian Borrower shall not exceed the Canadian Dollar Sublimit.

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five (5) Business Days prior to the Maturity Date. Any Letter
of Credit with a one-year tenor may provide for the automatic renewal thereof for additional
one-year periods so long as the final expiry date of such Letter of Credit occurs on or prior to
the date that is five (5) Business Days prior to the Maturity Date.

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

27

 

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

          (e) Reimbursement. If any Issuing Bank shall make any LC Disbursement in respect of
a Letter of Credit, the Borrower for whose account such Letter of Credit was issued shall reimburse
such LC Disbursement by paying to the Administrative Agent in Dollars the Dollar Amount equal to
such LC Disbursement, calculated as of the date such Issuing Bank made such LC Disbursement (or if
such Issuing Bank shall so elect in its sole discretion by notice to the Company, on behalf of
itself or the Canadian Borrower, in such other Agreed Currency which was paid by such Issuing Bank
pursuant to such LC Disbursement in an amount equal to such LC Disbursement) not later than 1:00
p.m., Local Time, on the date that such LC Disbursement is made, if the Company, on behalf of
itself or the Canadian Borrower, shall have received notice of such LC Disbursement prior to 10:00
a.m., Local Time, on such date, or, if such notice has not been received by the Company, on behalf
of itself or the Canadian Borrower, prior to such time on such date, then not later than 1:00 p.m.,
Local Time, on (i) the Business Day that the Company, on behalf of itself or the Canadian Borrower,
receives such notice, if such notice is received prior to 10:00 a.m., Local Time, on the day of
receipt, or (ii) the Business Day immediately following the day that the Company, on behalf of
itself or the Canadian Borrower, receives such notice, if such notice is not received prior to such
time on the day of receipt; provided that, if such LC Disbursement is not less than the
Dollar Amount of $1,000,000, the Company may, on behalf of itself or the Canadian Borrower, subject
to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.05
that such payment be financed with an ABR Revolving Borrowing or Swingline Loan (if such LC
Disbursement relates to a Letter of Credit issued for the account of the Company) in an equivalent
Dollar Amount of such LC Disbursement and, to the extent so financed, the applicable Borrower’s
obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving
Borrowing or, if applicable, Swingline Loan. If the applicable Borrower fails to make such payment
when due, the Administrative Agent shall notify each Lender of the applicable LC Disbursement, the
payment then due from the such Borrower in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Lender shall pay to the Administrative
Agent its Applicable Percentage of the payment then due from such Borrower, in the same manner as
provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply,
mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the applicable Issuing Bank the amounts so received by
it from the Lenders. Promptly following receipt by the Administrative Agent of any payment from
the applicable Borrower pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the applicable Issuing Bank or, to the extent that Lenders have made payments pursuant
to this paragraph to reimburse any Issuing Bank, then to such Lenders and such Issuing Bank as
their interests may appear. Any payment made by a Lender pursuant to this paragraph to reimburse
an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a
Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the
applicable Borrower of its obligation to reimburse such LC Disbursement. If the applicable
Borrower’s reimbursement of, or obligation to reimburse, any amounts in any Foreign Currency would
subject the Administrative Agent, any Issuing Bank or any Lender to any stamp duty, ad valorem
charge or similar tax that would not be payable if such reimbursement were made or required to be
made in Dollars, the applicable Borrower shall, at its option, either (x) pay the amount of any
such tax requested by the Administrative Agent, such Issuing Bank or the relevant Lender or (y)
reimburse each LC Disbursement made in such Foreign Currency in Dollars, in an amount equal to the
Equivalent Amount, calculated using the applicable exchange rates, on the date such LC Disbursement
is made, of such LC Disbursement.

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

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

          (h) Interim Interest. If any Issuing Bank shall make any LC Disbursement, then,
unless the applicable Borrower shall reimburse such LC Disbursement in full on the date such LC
Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and
including the date such LC Disbursement is made to but excluding the date that the applicable
Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving
Loans (or in the case such LC Disbursement is denominated in a Foreign Currency (other than
Canadian Dollars), at the Overnight Foreign Currency Rate for such Agreed Currency plus the
then effective Applicable Rate with respect to Eurocurrency Revolving Loans); provided
that, if the applicable Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.13(c) shall apply.

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Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing
Bank, except that interest accrued on and after the date of payment by any Lender pursuant to
paragraph (e) of this Section to reimburse an Issuing Bank shall be for the account of such Lender
to the extent of such payment.

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

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing,
on the Business Day that the Company, on behalf of itself or the Canadian Borrower, receives notice
from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been
accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure)
demanding the deposit of cash collateral pursuant to this paragraph, the Borrowers shall deposit in
an account with the Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of
the Dollar Amount of the LC Exposure as of such date plus any accrued and unpaid interest thereon;
provided that (i) the portions of such amount attributable to undrawn Foreign Currency
Letters of Credit or LC Disbursements in a Foreign Currency that the applicable Borrower is not
late in reimbursing shall be deposited in the applicable Foreign Currencies in the actual amounts
of such undrawn Letters of Credit and LC Disbursements and (ii) the obligation to deposit such cash
collateral shall become effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to either Borrower described in clause (h) or (i) of Article VII. For the purposes of
this paragraph, the Foreign Currency LC Exposure shall be calculated using the applicable exchange
rates of the Administrative Agent on the date notice demanding cash collateralization is delivered
to the Company, on behalf of itself or the Canadian Borrower. The Borrowers also shall deposit
cash collateral pursuant to this paragraph as and to the extent required by Section 2.11(b). Such
deposit shall be held by the Administrative Agent as collateral for the payment and performance of
the Obligations. The Administrative Agent shall have exclusive dominion and control, including the
exclusive right of withdrawal, over such account. Other than any interest earned on the investment
of such deposits, which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the Issuing Banks for LC
Disbursements for which they have not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at
such time or, if the maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to
satisfy other Obligations. If any Borrower is required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default, such amount (to

30

 

the extent not applied as aforesaid) shall be returned to the applicable Borrower within three
(3) Business Days after all Events of Default have been cured or waived.

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

          SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be
made by it hereunder on the proposed date thereof by wire transfer of immediately available funds
(i) in the case of Loans denominated in Dollars to the Company, by 12:00 noon, New York City time,
to the account of the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders and (ii) in the case of each Loan denominated in a Foreign Currency, by 12:00
noon, Local Time, in the city of the Administrative Agent’s Eurocurrency Payment Office for such
currency; provided that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the relevant Borrower by promptly crediting
the amounts so received, in like funds, to (x) an account of the Company maintained with the
Administrative Agent in New York City or Chicago and designated by the Company in the applicable
Borrowing Request, in the case of Loans denominated in Dollars to the Company and (y) an account of
such Borrower in the relevant jurisdiction and designated by the Company, on behalf of itself or
the Canadian Borrower, in the applicable Borrowing Request, in the case of Loans denominated in a
Foreign Currency or to the Canadian Borrower; provided that ABR Revolving Loans made to
finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by
the Administrative Agent to the Issuing Bank that made such LC Disbursement.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the relevant Borrower a corresponding amount. In
such event, if a Lender has not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and such Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to such Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation (including without limitation the Overnight
Foreign Currency Rate in the case of Loans denominated in a Foreign Currency) or (ii) in the case
of such Borrower, the interest rate applicable

31

 

to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount
shall constitute such Lender’s Loan included in such Borrowing.

          SECTION 2.08. Interest Elections. (a) Each Revolving Borrowing initially shall be
of the Type specified in the applicable Borrowing Request and, in the case of a Eurocurrency
Revolving Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the Company, on behalf of itself or the Canadian Borrower, may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurocurrency
Revolving Borrowing, may, on behalf of itself or the Canadian Borrower, elect Interest Periods
therefor, all as provided in this Section. The Company, on behalf of itself or the Canadian
Borrower, may elect different options with respect to different portions of the affected Borrowing,
in which case each such portion shall be allocated ratably among the Lenders holding the Loans
comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which may not be
converted or continued.

          (b) To make an election pursuant to this Section, the Company, on behalf of itself or the
Canadian Borrower, shall notify the Administrative Agent of such election (by telephone in the case
of a Borrowing denominated in Dollars or Canadian Dollars) or by irrevocable written notice (via an
Interest Election Request in a form approved by the Administrative Agent and signed by the Company)
in the case of a Borrowing denominated in a Foreign Currency (other than Canadian Dollars) by the
time that a Borrowing Request would be required under Section 2.03 if the Company, on behalf of
itself or the Canadian Borrower, were requesting a Revolving Borrowing of the Type resulting from
such election to be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy
to the Administrative Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Company. Notwithstanding any contrary provision herein,
this Section shall not be construed to permit the Company, on behalf of itself or the Canadian
Borrower, to (i) change the currency of any Borrowing, (ii) elect an Interest Period for
Eurocurrency Loans that does not comply with Section 2.02(d) or (iii) convert any Borrowing to a
Borrowing of a Type not available under the Class of Commitments pursuant to which such Borrowing
was made.

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

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

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

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurocurrency
Borrowing; and

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

32

 

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

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

          (e) If the Company, on behalf of itself or the Canadian Borrower, fails to deliver a timely
Interest Election Request with respect to a Eurocurrency Revolving Borrowing prior to the end of
the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein,
at the end of such Interest Period (i) in the case of a Borrowing denominated in Dollars or
Canadian Dollars, such Borrowing shall be converted to an ABR Borrowing and (ii) in the case of a
Borrowing denominated in a Foreign Currency (other than Canadian Dollars) in respect of which the
Company shall have failed to deliver an Interest Election Request prior to the third
(3rd) Business Day preceding the end of such Interest Period, such Borrowing shall
automatically continue as a Eurocurrency Borrowing in the same Agreed Currency with an Interest
Period of one month unless such Eurocurrency Borrowing is or was repaid in accordance with Section
2.11. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is
continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the
Company, then, so long as an Event of Default is continuing (i) no outstanding Revolving Borrowing
may be converted to or continued as a Eurocurrency Borrowing, and (ii) unless repaid, each
Eurocurrency Revolving Borrowing shall be converted to an ABR Borrowing (and any such Eurocurrency
Revolving Borrowing to the Company in a Foreign Currency shall be redenominated in Dollars at the
time of such conversion) at the end of the Interest Period applicable thereto.

          SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously
terminated, the Commitments shall terminate on the Maturity Date.

          (b) The Company may at any time terminate, or from time to time reduce, the Commitments;
provided that (i) each reduction of the Commitments shall be in an amount that is an
integral multiple of $1,000,000 and not less than $1,000,000 and (ii) the Company shall not
terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the
Loans in accordance with Section 2.11, the Dollar Amount of the sum of the Revolving Credit
Exposures would exceed the Aggregate Commitment.

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

          SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) Each Borrower hereby
unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the
then unpaid principal amount of each Revolving Loan made to such Borrower on the Maturity Date in
the currency of such Loan and (ii) in the case of the Company, to the Swingline Lender the then
unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the first
date after such

33

 

Swingline Loan is made that is the 15th or last day of a calendar month and is at
least two Business Days after such Swingline Loan is made; provided that on each date that
a Revolving Borrowing is made, the Company shall repay all Swingline Loans then outstanding.

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

          (c) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class, Agreed Currency and Type thereof and the Interest Period
applicable thereto, (ii) the amount of any principal or interest due and payable or to become due
and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

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

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

          SECTION 2.11. Prepayment of Loans.

          (a) Any Borrower shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with the provisions of this
Section 2.11(a). The Company, on behalf of itself or the Canadian Borrower, shall notify the
Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurocurrency Revolving Borrowing, not later than 12:00 noon, Local Time, three (3) Business Days
(in the case of a Eurocurrency Borrowing denominated in Dollars or Canadian Dollars) or four (4)
Business Days (in the case of a Eurocurrency Borrowing denominated in a Foreign Currency (other
than Canadian Dollars)), in each case before the date of prepayment, (ii) in the case of prepayment
of an ABR Revolving Borrowing, not later than 1:00 p.m., New York City time, one (1) Business Day
before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later
than 1:00 p.m., New York City time, on the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or
portion thereof to be prepaid; provided that, if a notice of prepayment is given in
connection with a conditional notice of termination of the Commitments as contemplated by Section
2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.09. Promptly following receipt of any such notice relating to a
Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.
Each partial prepayment of any Revolving Borrowing shall be in an amount that would be permitted in
the case of an advance of a Revolving Borrowing of the same Type as provided in Section

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

          (b) If, on any Computation Date, (i) the sum of the aggregate principal Dollar Amount of all
of the Revolving Credit Exposures exceeds the Aggregate Commitment, (ii) the sum of the aggregate
principal Dollar Amount of all of the outstanding Revolving Credit Exposures with respect to the
Company that are denominated in Foreign Currencies exceeds the Foreign Currency Sublimit, or (iii)
the sum of the aggregate principal Dollar Amount of all of the outstanding Revolving Credit
Exposures with respect to the Canadian Borrower exceeds the Canadian Dollar Sublimit, then, in each
case, the Borrowers shall immediately repay Borrowings or cash collateralize LC Exposure in an
account with the Administrative Agent pursuant to Section 2.06(j) in an aggregate principal amount
sufficient to eliminate any such excess; provided that if any such excess is solely a
result of fluctuations in currency exchange rates, no repayment or cash collateralization shall be
required to the extent the amount of such excess is not more than 5% of (1) the Aggregate
Commitment (if such excess is pursuant to clause (i) of this paragraph), (2) the Foreign Currency
Sublimit (if such excess is pursuant to clause (ii) of this paragraph), or (3) the Canadian Dollar
Sublimit (if such excess is pursuant to clause (iii) of this paragraph).

          SECTION 2.12. Fees. (a) The Company agrees to pay to the Administrative Agent for
the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the
average daily amount of the Available Revolving Commitment during the period from and including the
Effective Date to but excluding the date on which all the Commitments hereunder terminate. Accrued
commitment fees shall be payable in arrears on the last day of March, June, September and December
of each year and on the date on which the Commitments terminate, commencing on the first such date
to occur after the date hereof. All commitment fees shall be computed on the basis of a year of
360 days and shall be payable for the actual number of days elapsed (including the first day but
excluding the last day).

          (b) The Company agrees to pay (i) to the Administrative Agent for the account of each Lender
a participation fee with respect to its participations in Letters of Credit, which shall accrue at
the same Applicable Rate used to determine the interest rate applicable to Eurocurrency Revolving
Loans on the average daily Dollar Amount of such Lender’s LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender’s Commitment terminates
and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank a
fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily Dollar Amount
of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements)
attributable to Letters of Credit issued by such Issuing Bank during the period from and including
the Effective Date to but excluding the later of the date of termination of the Commitments and the
date on which there ceases to be any LC Exposure, as well as such Issuing Bank’s standard fees and
commissions with respect to the issuance, amendment, cancellation, negotiation, transfer,
presentment, renewal or extension of any Letter of Credit or processing of drawings thereunder.
Unless otherwise specified above, participation fees and fronting fees accrued through and
including the last day of March, June, September and December of each year shall be payable on the
third (3rd) Business Day following such last day, commencing on the first such date to
occur after the Effective Date; provided that all such fees shall be payable on the date on
which the Commitments terminate and any such fees accruing after the date on which the Commitments
terminate shall be payable on demand. Any other fees payable to any Issuing Bank pursuant to this
paragraph shall be payable within ten (10) days after demand. All participation fees and fronting
fees shall be computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

35

 

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

          (d) All fees payable hereunder shall be paid on the dates due, in Dollars (except as
otherwise expressly provided in this Section 2.12) and immediately available funds, to the
Administrative Agent (or to any Issuing Bank, in the case of fees payable to it) for distribution,
in the case of commitment fees and participation fees, to the Lenders. Fees paid shall not be
refundable under any circumstances.

          SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing shall bear
interest at the Alternate Base Rate plus the Applicable Rate. Swingline Loans shall, at the
election of the Company, bear interest at (i) the Alternate Base Rate plus the Applicable Rate or
(ii) the Quoted Swingline Rate (if agreed upon by the Swingline Lender and the Company).

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

          (c) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or
other amount payable by any Borrower hereunder is not paid when due, whether at stated maturity,
upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus
the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section
or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided in
paragraph (a) of this Section.

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

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

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

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

36

 

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

then the Administrative Agent shall give notice thereof to the Company and the Lenders by telephone
or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the
Company and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any
Interest Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurocurrency Borrowing shall be ineffective and any
such Eurocurrency Borrowing shall be repaid on the last day of the then current Interest Period
applicable thereto, and (ii) if any Borrowing Request by the Company, on behalf of itself or the
Canadian Borrower, requests a Eurocurrency Revolving Borrowing in Dollars or Canadian Dollars, such
Borrowing shall be made as an ABR Borrowing (and if any Borrowing Request requests a Eurocurrency
Revolving Borrowing denominated in a Foreign Currency (other than Canadian Dollars), such Borrowing
Request shall be ineffective); provided that if the circumstances giving rise to such
notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted.

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

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

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

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Loan or of maintaining its obligation to make any such Loan
(including, without limitation, pursuant to any conversion of any Borrowing denominated in an
Agreed Currency into a Borrowing denominated in any other Agreed Currency) or to increase the cost
to such Lender or such Issuing Bank of participating in, issuing or maintaining any Letter of
Credit (including, without limitation, pursuant to any conversion of any Borrowing denominated in
an Agreed Currency into a Borrowing denominated in any other Agreed Currency) or to reduce the
amount of any sum received or receivable by such Lender or such Issuing Bank hereunder, whether of
principal, interest or otherwise (including, without limitation, pursuant to any conversion of any
Borrowing denominated in an Agreed Currency into a Borrowing denominated in any other Agreed
Currency), then the applicable Borrower will pay to such Lender or such Issuing Bank, as the case
may be, such additional amount or amounts as will compensate such Lender or such Issuing Bank, as
the case may be, for such additional costs incurred or reduction suffered.

          (b) If any Lender or any Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or such
Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s holding company,
if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a level below
that which such Lender or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or such
Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s holding company
with respect to capital

37

 

adequacy), then from time to time the applicable Borrower will pay to such Lender or such
Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender
or such Issuing Bank or such Lender’s or such Issuing Bank’s holding company for any such reduction
suffered.

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

          (d) Failure or delay on the part of any Lender or any Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing Bank’s
right to demand such compensation; provided that the Company shall not be required to
compensate a Lender or an Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than 180 days prior to the date that such Lender or such Issuing Bank, as
the case may be, notifies the Company of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the 180-day period referred to above shall be extended to include
the period of retroactive effect thereof.

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

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of
each Borrower hereunder shall be made free and clear of and without deduction for any Indemnified
Taxes or Other Taxes; provided that if any Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or Issuing Bank (as
the case may be) receives an amount equal to the sum it would have received had no such deductions
been made, (ii) such Borrower shall make such

38

 

deductions and (iii) such Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

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

          (c) The relevant Borrower shall indemnify the Administrative Agent, each Lender and each
Issuing Bank, within ten (10) days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or such Issuing
Bank, as the case may be, on or with respect to any payment by or on account of any obligation of
such Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the Company by a Lender or
an Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a Lender or an
Issuing Bank, shall be conclusive absent manifest error.

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

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

          (f) If the Administrative Agent or a Lender receives a refund of any Indemnified Taxes or
Other Taxes as to which it has been indemnified by the Borrowers or with respect to which a
Borrower has paid additional amounts pursuant to this Section 2.17, it shall pay over such refund,
within thirty (30) days of the date of receipt thereof, to such Borrower (but only to the extent of
indemnity payments made, or additional amounts paid, by such Borrower under this Section 2.17 with
respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent or such Lender and without interest (other than
any interest paid by the relevant Governmental Authority with respect to such refund);
provided, that such Borrower, upon the request of the Administrative Agent or such Lender,
agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender
in the event the Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This Section shall not be construed to require the Administrative Agent or
any Lender to make available its tax returns (or any other information relating to its taxes which
it deems confidential) to any Borrower or any other Person.

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

          (a) Each Borrower shall make each payment required to be made by it hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under

39

 

Section 2.15, 2.16 or 2.17, or otherwise) prior to (i) in the case of payments denominated in
Dollars by the Company, 2:00 p.m., New York City time and (ii) in the case of payments denominated
in a Foreign Currency or by the Canadian Borrower, 2:00 p.m., Local Time, in the city of the
Administrative Agent’s Eurocurrency Payment Office for such currency, in each case on the date when
due, in immediately available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be deemed to have been
received on the next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made (i) in the same currency in which the applicable Credit Event was made
(or where such currency has been converted to euro, in euro) and (ii) to the Administrative Agent
at its offices at 10 South Dearborn Street, Chicago, Illinois 60603 or, in the case of a Credit
Event denominated in a Foreign Currency or to the Canadian Borrower, the Administrative Agent’s
Eurocurrency Payment Office for such currency, except payments to be made directly to any Issuing
Bank or the Swingline Lender as expressly provided herein and except that payments pursuant to
Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments denominated in the same currency received
by it for the account of any other Person to the appropriate recipient promptly following receipt
thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be payable for the period of such extension.
Notwithstanding the foregoing provisions of this Section, if, after the making of any Credit Event
in any Foreign Currency, currency control or exchange regulations are imposed in the country which
issues such currency with the result that the type of currency in which the Credit Event was made
(the “Original Currency”) no longer exists or any Borrower is not able to make payment to
the Administrative Agent for the account of the Lenders in such Original Currency, then all
payments to be made by such Borrower hereunder in such currency shall instead be made when due in
Dollars in an amount equal to the Dollar Amount (as of the date of repayment) of such payment due,
it being the intention of the parties hereto that the Borrowers take all risks of the imposition of
any such currency control or exchange regulations.

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

          (c) At the election of the Administrative Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the
Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a
request by the Company, on behalf of itself or the Canadian Borrower, pursuant to Section 2.03 or a
deemed request as provided in this Section or may be deducted from any deposit account of such
Borrower maintained with the Administrative Agent.

          (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Revolving Loans or
participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of
a greater proportion of the aggregate amount of its Revolving Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any
other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving Loans and participations in LC Disbursements and Swingline
Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be
shared by the Lenders ratably in accordance

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with the aggregate amount of principal of and accrued interest on their respective Revolving
Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by any Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in LC Disbursements and Swingline
Loans to any assignee or participant, other than to the Company or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the
foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise against such Borrower
rights of set-off and counterclaim with respect to such participation as fully as if such Lender
were a direct creditor of such Borrower in the amount of such participation.

          (e) Unless the Administrative Agent shall have received notice from the Company, on behalf of
itself or the Canadian Borrower, prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or any Issuing Bank hereunder that the
applicable Borrower will not make such payment, the Administrative Agent may assume that such
Borrower has made such payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or such Issuing Bank, as the case may be, the amount due. In
such event, if such Borrower has not in fact made such payment, then each of the Lenders or such
Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon, for
each day from and including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation (including without limitation the Overnight Foreign Currency Rate in the case of Loans
denominated in a Foreign Currency).

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

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender
requests compensation under Section 2.15, or if any Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.17, then such Lender shall use reasonable efforts to designate a different lending office
for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to
another of its offices, branches or affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or
2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed
cost or expense and would not otherwise be disadvantageous to such Lender. The Company hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.

          (b) If any Lender requests compensation under Section 2.15, or if any Borrower is required to
pay any additional amount to any Lender or any Governmental Authority for the account of

41

 

any Lender pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the
Company may, at its sole expense and effort, upon notice to such Lender and the Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and obligations under the
Loan Documents to an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Company shall have
received the prior written consent of the Administrative Agent (and if a Commitment is being
assigned, the Issuing Banks), which consent shall not unreasonably be withheld, (ii) such Lender
shall have received payment of an amount equal to the outstanding principal of its Loans and
participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Company (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15
or payments required to be made pursuant to Section 2.17, such assignment will result in a
reduction in such compensation or payments. A Lender shall not be required to make any such
assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise,
the circumstances entitling the Company to require such assignment and delegation cease to apply.

          SECTION 2.20. Expansion Option. The Company may from time to time elect to increase
the Commitments or enter into one or more tranches of term loans (each an “Incremental Term
Loan”), in each case in minimum increments of $10,000,000 so long as, after giving effect
thereto, the aggregate amount of such increases and all such Incremental Term Loans does not exceed
$150,000,000. The Company may arrange for any such increase or tranche to be provided by one or
more Lenders (each Lender so agreeing to an increase in its Commitment, or to participate in such
Incremental Term Loans, an “Increasing Lender”), or by one or more new banks, financial
institutions or other entities (each such new bank, financial institution or other entity, an
“Augmenting Lender”), to increase their existing Commitments, or to participate in such
Incremental Term Loans, or extend Commitments, as the case may be; provided that (i) each
Augmenting Lender shall be subject to the approval of the Company and the Administrative Agent and
(ii) (x) in the case of an Increasing Lender, the Company and such Increasing Lender execute an
agreement substantially in the form of Exhibit C hereto, and (y) in the case of an
Augmenting Lender, the Company and such Augmenting Lender execute an agreement substantially in the
form of Exhibit D hereto. No consent of any Lender (other than the Lenders participating
in the increase or any Incremental Term Loan) shall be required for any increase in Commitments or
Incremental Term Loan pursuant to this Section 2.20. Increases and new Commitments and Incremental
Term Loans created pursuant to this Section 2.20 shall become effective on the date agreed by the
Company, the Administrative Agent and the relevant Increasing Lenders or Augmenting Lenders and the
Administrative Agent shall notify each Lender thereof. Notwithstanding the foregoing, no increase
in the Commitments (or in the Commitment of any Lender) or tranche of Incremental Term Loans shall
become effective under this paragraph unless, (i) on the proposed date of the effectiveness of such
increase or Incremental Term Loans, (A) the conditions set forth in paragraphs (a) and (b) of
Section 4.02 shall be satisfied or waived by the Required Lenders and the Administrative Agent
shall have received a certificate to that effect dated such date and executed by a Financial
Officer of the Company and (B) the Company shall be in compliance (on a pro forma basis reasonably
acceptable to the Administrative Agent) with the covenants contained in Section 6.12 and (ii) the
Administrative Agent shall have received documents consistent with those delivered on the Effective
Date as to the corporate power and authority of the Borrowers to borrow hereunder after giving
effect to such increase. On the effective date of any increase in the Commitments or any
Incremental Term Loans being made, (i) each relevant Increasing Lender and Augmenting Lender shall
make available to the Administrative Agent such amounts in immediately available funds as the
Administrative Agent shall determine, for the benefit of the other Lenders, as being required in
order to cause, after giving effect to such increase and the use of such amounts to make payments
to such other Lenders, each Lender’s portion of the outstanding Revolving Loans of all the Lenders
to equal its Applicable Percentage of such outstanding Revolving Loans, and (ii)

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except in the case of any Incremental Term Loans, the Borrowers shall be deemed to have repaid
and reborrowed all outstanding Revolving Loans as of the date of any increase in the Commitments
(with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if
applicable, specified in a notice delivered by the Company, on behalf of itself or the Canadian
Borrower, in accordance with the requirements of Section 2.03). The deemed payments made pursuant
to clause (ii) of the immediately preceding sentence shall be accompanied by payment of all accrued
interest on the amount prepaid and, in respect of each Eurocurrency Loan, shall be subject to
indemnification by the Borrowers pursuant to the provisions of Section 2.16 if the deemed payment
occurs other than on the last day of the related Interest Periods. The Incremental Term Loans (a)
shall rank pari passu in right of payment with the Revolving Loans, (b) shall not mature earlier
than the Maturity Date (but may have amortization prior to such date) and (c) shall be treated
substantially the same as (and in any event no more favorably than) the Revolving Loans;
provided that (i) the terms and conditions applicable to any tranche of Incremental Term
Loans maturing after the Maturity Date may provide for material additional or different financial
or other covenants or prepayment requirements applicable only during periods after the Maturity
Date and (ii) the Incremental Term Loans may be priced differently than the Revolving Loans.
Incremental Term Loans may be made hereunder pursuant to an amendment or restatement (an
“Incremental Term Loan Amendment”) of this Agreement and, as appropriate, the other Loan
Documents, executed by the Borrowers, each Augmenting Lender participating in such tranche, if any,
and the Administrative Agent. The Incremental Term Loan Amendment may, without the consent of any
other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be
necessary or appropriate, in the reasonable opinion of the Administrative Agent, to effect the
provisions of this Section 2.20.

          SECTION 2.21. Market Disruption. Notwithstanding the satisfaction of all conditions
referred to in Article II and Article IV with respect to any Credit Event to be effected in any
Foreign Currency, if (i) there shall occur on or prior to the date of such Credit Event any change
in national or international financial, political or economic conditions or currency exchange rates
or exchange controls which would in the reasonable opinion of the Administrative Agent, any Issuing
Bank (if such Credit Event is a Letter of Credit) or the Required Lenders make it impracticable for
the Eurocurrency Borrowings or Letters of Credit comprising such Credit Event to be denominated in
the Agreed Currency specified by the Company, on behalf of itself or the Canadian Borrower, or (ii)
an Equivalent Amount of such currency is not readily calculable, then the Administrative Agent
shall forthwith give notice thereof to the Company, on behalf of itself or the Canadian Borrower,
the Lenders and, if such Credit Event is a Letter of Credit, the Issuing Banks, and such Credit
Events shall not be denominated in such Agreed Currency but shall, except as otherwise set forth in
Section 2.07, be made on the date of such Credit Event in Dollars, (a) if such Credit Event is a
Borrowing to be made to the Company, in an aggregate principal amount equal to the Dollar Amount of
the aggregate principal amount specified in the related request for a Credit Event or Interest
Election Request, as the case may be, as ABR Loans, unless the Company notifies the Administrative
Agent at least one Business Day before such date that (i) it elects not to borrow on such date or
(ii) it elects to borrow on such date in a different Agreed Currency, as the case may be, in which
the denomination of such Loans would in the reasonable opinion of the Administrative Agent and the
Required Lenders be practicable and in an aggregate principal amount equal to the Dollar Amount of
the aggregate principal amount specified in the related request for a Credit Event or Interest
Election Request, as the case may be or (b) if such Credit Event is a Letter of Credit to be issued
for the account of the Company, in a face amount equal to the Dollar Amount of the face amount
specified in the related request or application for such Letter of Credit, unless the Company
notifies the Administrative Agent at least one (1) Business Day before such date that (i) it elects
not to request the issuance of such Letter of Credit on such date or (ii) it elects to have such
Letter of Credit issued on such date in a different Agreed Currency, as the case may be, in which
the denomination of such Letter of Credit would in the reasonable opinion of the Issuing Banks, the
Administrative Agent and the Required Lenders be

43

 

practicable and in face amount equal to the Dollar Amount of the face amount specified in the
related request or application for such Letter of Credit, as the case may be.

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

          SECTION 2.23. Defaulting Lenders. Notwithstanding any provision of this Agreement to
the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply
for so long as such Lender is a Defaulting Lender:

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

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

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

     (i) all or any part of such Swingline Exposure and LC Exposure shall be reallocated
among the non-Defaulting Lenders in accordance with their respective Applicable Percentages
but only to the extent (x) such reallocation will not result in any non-Defaulting Lenders’
Revolving Credit Exposure being greater than such non-Defaulting Lender’s Commitment, and
(y) the conditions set forth in Section 4.02 are satisfied at such time;

     (ii) if the reallocation described in clause (i) above cannot, or can only partially,
be effected, the Company shall within one (1) Business Day following notice by the
Administrative Agent (x) first, prepay such Swingline Exposure and (y)
second, cash collateralize such

44

 

Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation
pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.06(j)
for so long as such LC Exposure is outstanding;

     (iii) if the Company cash collateralizes any portion of such Defaulting Lender’s LC
Exposure pursuant to Section 2.23(c), the Company shall not be required to pay any fees to
such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s
LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

     (iv) if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to
Section 2.23(c), then the fees payable to the Lenders pursuant to Sections 2.12(a) and
2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages; or

     (v) if any Defaulting Lender’s LC Exposure is neither cash collateralized nor
reallocated pursuant to Section 2.23(c), then, without prejudice to any rights or remedies
of any Issuing Bank or any Lender hereunder, all letter of credit fees payable under Section
2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the
applicable Issuing Bank until such LC Exposure is cash collateralized and/or reallocated;
and

          (d) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required
to fund any Swingline Loan and neither Issuing Bank shall be required to issue, amend or increase
any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the
Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Company in
accordance with Section 2.23(c), and participating interests in any such newly issued or increased
Letter of Credit or newly made Swingline Loan shall be allocated among non-Defaulting Lenders in a
manner consistent with Section 2.23(c)(i) (and Defaulting Lenders shall not participate therein);

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

          SECTION 2.24. Senior Debt. The Company hereby designates all Obligations now or
hereinafter incurred or otherwise outstanding, and agrees that the Obligations shall at all times
constitute, senior indebtedness and designated senior indebtedness, or terms of similar import,
which are entitled to the benefits of the subordination provisions of all Subordinated
Indebtedness.

          SECTION 2.25. Interest Act (Canada). For purposes of the Interest Act (Canada), (i)
whenever any interest or fee under this Agreement is calculated using a rate based on a year of 360
days or 365 days, as the case may be, the rate determined pursuant to such calculation, when
expressed as an annual rate, is equivalent to (x) the applicable rate based on a year of 360 days
or 365 days, as the case may be, (y) multiplied by the actual number of days in the calendar year
in which the period for which such interest or fee is payable (or compounded) ends, and (z) divided
by 360 or 365, as the case may be, (ii) the principle of deemed reinvestment of interest does not
apply to any interest calculation under this Agreement, and (iii) the rates of interest stipulated
in this Agreement are intended to be nominal rates and not effective rates or yields.

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ARTICLE III

Representations and Warranties

          Each Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers; Subsidiaries. Each of the Company and its
Subsidiaries is duly organized, validly existing and in good standing (to the extent such concept
is applicable in the relevant jurisdiction) under the laws of the jurisdiction of its organization,
has all requisite power and authority to carry on its business as now conducted and, except where
the failure to do so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect, is qualified to do business in, and is in good standing (to the
extent such concept is applicable) in, every jurisdiction where such qualification is required.
Schedule 3.01 hereto (as supplemented from time to time) identifies each Subsidiary, noting
whether such Subsidiary is a Domestic Subsidiary Guarantor or Canadian Subsidiary Guarantor, the
jurisdiction of its incorporation or organization, as the case may be, the percentage of issued and
outstanding shares of each class of its capital stock or other equity interests owned by the
Company and the other Subsidiaries and, if such percentage is not 100% (excluding directors’
qualifying shares as required by law), a description of each class issued and outstanding. All of
the outstanding shares of capital stock and other equity interests of each Subsidiary are validly
issued and outstanding and fully paid and nonassessable and all such shares and other equity
interests indicated on Schedule 3.01 as owned by the Company or another Subsidiary are
owned, beneficially and of record, by the Company or any Subsidiary free and clear of all Liens.
There are no outstanding commitments or other obligations of the Company or any Subsidiary to
issue, and no options, warrants or other rights of any Person to acquire, any shares of any class
of capital stock or other equity interests of the Company or any Subsidiary.

          SECTION 3.02. Authorization; Enforceability. The Transactions are within each Loan
Party’s organizational powers and have been duly authorized by all necessary organizational actions
and, if required, actions by equity holders. The Loan Documents to which each Loan Party is a
party have been duly executed and delivered by such Loan Party and constitute a legal, valid and
binding obligation of such Loan Party, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

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

          SECTION 3.04. Financial Condition; No Material Adverse Change. (a) The Company has
heretofore furnished to the Lenders its consolidated balance sheet and statements of income,
stockholders equity and cash flows (i) as of and for the fiscal year ended June 28, 2008 reported
on by Ernst & Young LLP, independent public accountants, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended March 28, 2009, certified by its chief financial officer.
Such financial statements present fairly, in all material respects, the financial position and
results of operations and cash
flows of the Company and its consolidated Subsidiaries as of such dates and for such periods
in

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accordance with GAAP, subject to year-end audit adjustments and the absence of footnotes in the
case of the statements referred to in clause (ii) above.

          (b) Since June 28, 2008, there has been no material adverse change in the business, assets,
operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries,
taken as a whole.

          (c) As of the Effective Date, and based on the Company’s financial statements for the period
ended March 28, 2009 (instead of financial statements for any period ending after June 27, 2009),
the Company and its Subsidiaries are in compliance with Sections 6.12(a) and (b), and the
Consolidated Net Worth for such period ended March 28, 2009 exceeded $312,000,000.

          SECTION 3.05. Properties. (a) Each of the Company and its Subsidiaries has good
title to, or valid leasehold interests in, all its real and personal property material to its
business, except for minor defects in title that do not interfere with its ability to conduct its
business as currently conducted or to utilize such properties for their intended purposes.

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

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

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

          (c) Neither the Company nor any Subsidiary is party or subject to any law, regulation, rule
or order, or any obligation under any agreement or instrument, that has a Material Adverse Effect.

          SECTION 3.07. Compliance with Laws and Agreements. Each of the Company and its
Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

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

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

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events for which liability is reasonably
expected to occur, could reasonably be expected to result in a Material Adverse Effect.

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

          SECTION 3.12. Federal Reserve Regulations. No part of the proceeds of any Loan have
been used or will be used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations T, U and X.

          SECTION 3.13. Liens. There are no Liens on any of the real or personal properties of
the Company or any Subsidiary except for Liens permitted by Section 6.02.

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

          SECTION 3.15. No Burdensome Restrictions. No Borrower is subject to any Burdensome
Restrictions except Burdensome Restrictions permitted under Section 6.08.

ARTICLE IV

Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make Loans and of
the Issuing Banks to issue Letters of Credit hereunder shall not become effective until the date on
which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

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     (a) The Administrative Agent (or its counsel) shall have received from (i) each party
hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B)
written evidence satisfactory to the Administrative Agent (which may include telecopy or
electronic transmission of a signed signature page of this Agreement) that such party has
signed a counterpart of this Agreement, and (ii) each initial Domestic Subsidiary Guarantor
either (A) a counterpart of the Domestic Subsidiary Guaranty signed on behalf of such
Domestic Subsidiary Guarantor or (B) written evidence satisfactory to the Administrative
Agent (which may include telecopy or electronic transmission of a signed signature page of
the Domestic Subsidiary Guaranty) that such Domestic Subsidiary Guarantor has signed a
counterpart of the Domestic Subsidiary Guaranty.

     (b) The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Effective Date) of each
of (i) Leonard, Street and Deinard P.A., special U.S. counsel for the Loan Parties,
substantially in the form of Exhibit B-1 and (ii) Gowling Lafleur Henderson LLP,
special Canadian counsel for the Loan Parties, substantially in the form of Exhibit
B-2, and, in each case, covering such other matters relating to the Loan Parties, the
Loan Documents or the Transactions as the Administrative Agent shall reasonably request.
The Company hereby requests each such counsel to deliver such opinion.

     (c) The Lenders shall have received (i) satisfactory audited consolidated financial
statements of the Company for its 2007 and 2008 fiscal years, (ii) satisfactory unaudited
interim consolidated financial statements of the Company for each quarterly period ended
subsequent to the date of the latest financial statements delivered pursuant to clause (i)
of this paragraph as to which such financial statements are publicly available and (iii)
satisfactory financial statement projections through and including the Company’s 2012 fiscal
year, together with such information as the Administrative Agent or any of the Lead
Arrangers shall reasonably request (including, without limitation, a detailed description of
the assumptions used in preparing such projections).

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

     (e) The Administrative Agent shall have received a certificate, dated the Effective
Date and signed by the Chief Executive Officer, President, a Vice President or a Financial
Officer of the Company, confirming compliance with the conditions set forth in paragraphs
(a) and (b) of Section 4.02.

     (f) The Administrative Agent shall have received evidence satisfactory to it that the
Existing Credit Agreement has been terminated and cancelled, and all indebtedness thereunder
has been fully repaid (or, with respect any letters of credit issued thereunder, such
letters of credit have been assigned or transferred to this Agreement, such that each such
letter of credit constitutes a “Letter of Credit” hereunder).

     (g) The Administrative Agent shall have received evidence reasonably satisfactory to
it that all governmental and third party approvals necessary or, in the discretion of the
Administrative Agent, advisable in connection with the Transactions and the continuing

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operations of the Company and its Subsidiaries have been obtained and are in full force
and effect.

     (h) The Administrative Agent shall have received all fees and other amounts due and
payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement
or payment of all out-of-pocket expenses required to be reimbursed or paid by the Company
hereunder.

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

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

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

     (b) At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no
Default shall have occurred and be continuing.

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

ARTICLE V

Affirmative Covenants

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

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

     (a) within ninety (90) days after the end of each fiscal year of the Company, its
audited consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by Ernst & Young
LLP or other independent public accountants of recognized national standing (without a
“going concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition and results of
operations of the Company and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied; provided that, so long as such annual
report contains all information and certifications required under this Section 5.01(a) and
is publicly available free of charge, the Company’s filing on the Securities and Exchange

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Commission’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system of its
annual report with Form 10-K shall be deemed to be the Company’s furnishing of all items
required to be delivered to the Administrative Agent and each Lender pursuant to this
Section 5.01(a);

     (b) within forty-five (45) days after the end of each of the first three fiscal
quarters of each fiscal year of the Company, its consolidated balance sheet and related
statements of operations, stockholders’ equity and cash flows as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case
in comparative form the figures for the corresponding period or periods of (or, in the case
of the balance sheet, as of the end of) the previous fiscal year, all certified by one of
its Financial Officers as presenting fairly in all material respects the financial condition
and results of operations of the Company and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes; provided that, so long as such quarterly
report contains all information and certifications required under this Section 5.01(b) and
is publicly available free of charge, the Company’s filing on the Securities and Exchange
Commission’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system of its
quarterly report with Form 10-Q shall be deemed to be the Company’s furnishing of all items
required to be delivered to the Administrative Agent and each Lender pursuant to this
Section 5.01(b);

     (c) concurrently with any delivery of financial statements under clause (a) or (b)
above, a certificate of a Financial Officer of the Company substantially in the form of
Exhibit F (i) certifying as to whether a Default has occurred and, if a Default has
occurred, specifying the details thereof and any action taken or proposed to be taken with
respect thereto, (ii) other than with respect to the financial statements to be delivered
for the fiscal year ended June 27, 2009, setting forth reasonably detailed calculations
demonstrating compliance with Section 6.12 and (iii) stating whether any change in GAAP or
in the application thereof has occurred since the date of the audited financial statements
referred to in Section 3.04 and, if any such change has occurred, specifying the effect of
such change on the financial statements accompanying such certificate;

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

     (e) as soon as available, but in any event not more than ninety-five (95) days after
the beginning of each fiscal year of the Company, a copy of the plan and forecast (including
a projected consolidated and consolidating balance sheet, income statement and funds flow
statement) of the Company for each month of the upcoming fiscal year in form reasonably
satisfactory to the Administrative Agent;

     (f) promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Company or any Subsidiary
with the Securities and Exchange Commission, or any Governmental Authority succeeding to any
or all of the functions of said Commission, or with any national securities exchange, or
distributed by the Company to its shareholders generally, as the case may be;
provided that, so long as such report, proxy statement or other material is publicly
available free of charge, the Company’s filing on the Securities and Exchange Commission’s
Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system of any report, proxy
statement or other material shall be deemed to be the

51

 

Company’s furnishing of such report, proxy statement or other material, as the case may
be, to the Administrative Agent and each Lender; and

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

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

     (a) the occurrence of any Default;

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

     (c) the occurrence of any ERISA Event that, alone or together with any other ERISA
Events that have occurred, could reasonably be expected to result in a Material Adverse
Effect; and

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

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

          SECTION 5.03. Existence; Conduct of Business. The Company will, and will cause each
of its Subsidiaries to, do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence and the rights, qualifications, licenses, permits,
privileges, franchises, governmental authorizations and intellectual property rights material to
the conduct of its business, and maintain all requisite authority to conduct its business in each
jurisdiction in which its business is conducted, except where the failure to so maintain such
requisite authority could not reasonably be expected to result in a Material Adverse Effect;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

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

          SECTION 5.05. Maintenance of Properties; Insurance. The Company will, and will cause
each of its Subsidiaries to, (a) keep and maintain all property material to the conduct of its
business in good working order and condition, ordinary wear and tear excepted, and (b) (i)
maintain, with financially sound and reputable insurance companies, insurance or (ii) where
prudent, be self-insured, in each case, in such amounts and against such risks as are customarily
maintained by companies engaged in the same or similar businesses operating in the same or similar
locations.

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          SECTION 5.06. Books and Records; Inspection Rights. The Company will, and will cause
each of its Subsidiaries to, keep proper books of record and account in which full, true and
correct entries are made of all dealings and transactions in relation to its business and
activities. The Company will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice,
to visit and inspect its properties, to examine and make extracts from its books and records, and
to discuss its affairs, finances and condition with its officers and independent accountants, all
at such reasonable times and as often as reasonably requested; provided that, so long as no
Event of Default has occurred and is continuing, the Company shall not be required to reimburse the
Administrative Agent or any Lender under this Section for visits, inspections or examinations by
representatives of the Administrative Agent or such Lender more frequently than once every
twelve-month period. The Company acknowledges that the Administrative Agent, after exercising its
rights of inspection, may prepare and distribute to the Lenders certain reports pertaining to the
Company and its Subsidiaries’ assets for internal use by the Administrative Agent and the Lenders.

          SECTION 5.07. Compliance with Laws and Material Contractual Obligations. The Company
will, and will cause each of its Subsidiaries to, (i) comply with all laws, rules, regulations and
orders of any Governmental Authority applicable to it or its property (including without limitation
Environmental Laws) and (ii) perform in all material respects its obligations under material
agreements to which it is a party, in each case except where the failure to do so, individually or
in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

          SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used only to
refinance Indebtedness outstanding under the Existing Credit Agreement (including fees and expenses
in connection therewith), and to finance the working capital needs and other general corporate
purposes of the Company and its Subsidiaries in the ordinary course of business. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a
violation of any of the Regulations of the Board, including Regulations T, U and X.

          SECTION 5.09. Subsidiary Guaranties. As promptly as possible but in any event within
thirty (30) days (or such later date as may be agreed upon by the Administrative Agent) after any
Person (other than any Receivables Entity) becomes a Subsidiary or any Subsidiary qualifies
independently as, or is designated by the Company or the Administrative Agent as, a Subsidiary
Guarantor pursuant to the definitions of “Domestic Subsidiary Guarantor”, “Canadian Subsidiary
Guarantor”, “Material Domestic Subsidiary”, “Material Canadian Subsidiary”, and/or “Material
Subsidiary”, the Company shall provide the Administrative Agent with written notice thereof setting
forth information in reasonable detail describing the material assets of such Person and shall
cause each such Subsidiary which also qualifies as a Subsidiary Guarantor to deliver to the
Administrative Agent a joinder to the applicable Subsidiary Guaranty in the form contemplated
thereby (or, with respect to any Canadian Subsidiary Guarantor, if prior to the effectiveness of
the Canadian Subsidiary Guaranty, shall cause such Subsidiary which also qualifies as a Canadian
Subsidiary Guarantor to deliver to the Administrative Agent the Canadian Subsidiary Guaranty,
substantially in the form of Exhibit G-2, executed by such Canadian Subsidiary Guarantor)
pursuant to which such Subsidiary agrees to be bound by the terms and provisions thereof, such
joinder (or Canadian Subsidiary Guaranty, as applicable) to be accompanied by appropriate corporate
resolutions, other corporate documentation and legal opinions in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

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ARTICLE VI

Negative Covenants

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

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

     (a) the Obligations (other than Swap Obligations);

     (b) Indebtedness in respect of Swap Agreements permitted by Section 6.05;

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

     (d) Indebtedness of the Company or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets, including Capital Lease
Obligations and any Indebtedness assumed in connection with the acquisition of any such
assets or secured by a Lien on any such assets prior to the acquisition thereof, and
extensions, renewals and replacements of any such Indebtedness that do not increase the
outstanding principal amount thereof; provided that (i) such Indebtedness is
incurred prior to or within ninety (90) days after such acquisition or the completion of
such construction or improvement and (ii) the aggregate principal amount of Indebtedness
permitted by this clause (d) shall not exceed $40,000,000 at any time outstanding;

     (e) Guarantees in favor of the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, and Guarantees with respect to Indebtedness permitted
pursuant to clauses (b) through (d) of this Section 6.01;

     (f) Indebtedness of the Company or any Subsidiary incurred pursuant to Permitted
Receivables Facilities; provided that the aggregate Attributable Receivables
Indebtedness incurred by the Company and its Subsidiaries pursuant to all such Permitted
Receivables Facilities shall not exceed an aggregate amount of $100,000,000 at any time
outstanding;

     (g) Indebtedness of the Company to any Subsidiary and of any Subsidiary to the Company
or any other Subsidiary; provided that Indebtedness permitted pursuant to this
clause (g) shall be subject to the limitations set forth in Section 6.04(e);

     (h) Subordinated Indebtedness; provided that Indebtedness permitted pursuant
to this clause (h) shall be subject to the limitations set forth in Section 6.09; and

     (i) Indebtedness in an aggregate principal amount not exceeding the greater of
$200,000,000 and ten percent (10%) of Consolidated Net Worth on any date of determination.

          SECTION 6.02. Liens. The Company will not, and will not permit any Subsidiary to,
create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter

54

 

acquired by it, or assign or sell any income or revenues (including accounts receivable) or
rights in respect of any thereof, except:

     (a) Permitted Encumbrances;

     (b) Liens of the Administrative Agent, for the benefit of the Administrative Agent and
the Lenders;

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

     (d) Liens on fixed or capital assets acquired, constructed or improved by the Company
or any Subsidiary; provided that (i) such security interests secure Indebtedness
permitted by clause (d) of Section 6.01, (ii) such security interests and the Indebtedness
secured thereby are incurred prior to or within ninety (90) days after such acquisition or
the completion of such construction or improvement, (iii) the Indebtedness secured thereby
does not exceed the cost of acquiring, constructing or improving such fixed or capital
assets and (iv) such security interests shall not apply to any other property or assets of
the Company or any Subsidiary;

     (e) Liens on assets of the Company and its Subsidiaries not otherwise permitted above
so long as the aggregate principal amount of the Indebtedness and other obligations subject
to such Liens does not at any time exceed $25,000,000 on any date of determination; and

     (f) Liens on assets of the Company or it Subsidiaries (or for which the Company or any
Subsidiary is otherwise obligated) arising under Permitted Receivables Facilities that are
permitted under Section 6.01(f).

          SECTION 6.03. Fundamental Changes and Asset Sales. (a) The Company will not, and
will not permit any Subsidiary to, merge into or consolidate with any other Person, or permit any
other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of
(in one transaction or in a series of transactions) any of its assets, (including pursuant to a
Sale and Leaseback Transaction), or any of the Equity Interests of any of its Subsidiaries (in each
case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the
time thereof and immediately after giving effect thereto no Default shall have occurred and be
continuing:

     (i) any wholly-owned Subsidiary of the Company may amalgamate or merge with or wind-up
into the Company or any other wholly-owned Subsidiary of the Company; provided that
(i) any such merger or wind-up involving the Company must result in the Company as the
surviving entity, and (ii) no Domestic Subsidiary may merge with or wind-up into a Foreign
Subsidiary if the surviving entity is a Foreign Subsidiary;

     (ii) any wholly-owned Subsidiary of the Company may amalgamate or merge into a Person
acquired pursuant to a Permitted Acquisition permitted by Section 6.04(c); provided
that (i) the surviving entity must be a wholly-owned Subsidiary of the Company, and (ii) if
the wholly-owned Subsidiary of the Company that merged into such Person is a Domestic
Subsidiary, the surviving entity must be a Domestic Subsidiary;

55

 

     (iii) the Company and its Subsidiaries may (A) sell inventory in the ordinary course
of business, (B) effect sales, trade-ins or dispositions of used, obsolete, worn out or
surplus equipment or property or other assets determined to be no longer used or useable for
value in the ordinary course of business consistent with past practice, (C) enter into
licenses and leases of technology in the ordinary course of business, and (D) make any other
sales, transfers, leases or dispositions that, together with all other property of the
Company and its Subsidiaries previously leased, sold or disposed of as permitted by this
clause (D) during the term of this Agreement does not exceed the greater of $100,000,000 and
ten percent (10%) of Consolidated Net Worth at any time;

     (iv) (A) any Subsidiary may transfer its assets to the Company or any wholly-owned
Subsidiary of the Company in connection with an amalgamation or merger or wind-up permitted
pursuant to clause (i) of this Section 6.03(a), (B) the Company or any Subsidiary may
transfer its assets to the Company or any Subsidiary Guarantor, and (C) any Canadian
Subsidiary may transfer any of its assets to the Canadian Borrower;

     (v) the Company or any Subsidiary may (A) sell Receivables under Permitted Receivables
Facilities (subject to the limitation that the Attributable Receivables Indebtedness
thereunder shall not exceed an aggregate amount of $100,000,000), and (B) sell or discount
its defaulted Receivables in the ordinary course of business and consistent with historical
practice;

     (vi) the Company or any Subsidiary may terminate any Swap Agreement; and

     (vii) the Company or any Subsidiary may enter into any Sale and Leaseback Transaction
that is permitted under Section 6.10.

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

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

          SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Company
will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including
pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger)
any capital stock, evidences of indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to,
Guarantee any obligations of, or make or permit to exist any investment or any other interest in,
any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions)
any Person or any assets of any other Person constituting a business unit, except:

          (a) (i) investments by the Company and its Subsidiaries existing on the date hereof in the
capital stock of its Subsidiaries, and (ii) other loans, advances and investments described in
Schedule 6.04 existing on the Closing Date;

          (b) Permitted Investments;

          (c) Permitted Acquisitions;

          (d) investments in the form of Swap Agreements permitted by Section 6.05;

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          (e) investments, loans or advances made by the Company in or to any Subsidiary and made by
any Subsidiary in or to the Company or any other Subsidiary; provided that (i) investments,
loans and advances in or to Subsidiaries that are not Subsidiary Guarantors shall not, in the
aggregate, exceed $60,000,000 at any time, and (ii) the Company and any Domestic Subsidiary may
incur Indebtedness owed to any Canadian Subsidiary if such Indebtedness does not exceed $60,000,000
in aggregate at any time and is due on demand and/or on one or more specified maturity dates, but,
in any case, due and payable in its entirety within thirty (30) days from the date of incurrence
thereof;

          (f) purchases of assets in the ordinary course of business;

          (g) investments comprised of capital contributions (whether in the form of cash, a note, or
other assets) or otherwise resulting from transfers of assets permitted under this Agreement, in
each case, to a Receivables Entity in connection with a Permitted Receivables Facility permitted
hereunder; and

          (h) any other investment, loan or advance (other than acquisitions) made in the ordinary
course of business consistent with historical practices so long as the aggregate amount of all such
investments, loans and advances does not exceed ten percent (10%) of Consolidated Net Worth on any
date of determination during the term of this Agreement.

          SECTION 6.05. Swap Agreements. The Company will not, and will not permit any of its
Subsidiaries to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or
mitigate risks to which the Company or any Subsidiary has actual exposure (other than those in
respect of Equity Interests of the Company or any of its Subsidiaries), and (b) Swap Agreements
entered into in order to effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with respect to any
interest-bearing liability or investment of the Company or any Subsidiary.

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

          SECTION 6.07. Restricted Payments. The Company will not, and will not permit any of
its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any
Restricted Payment, except (a) the Company may declare and pay dividends with respect to its Equity
Interests payable solely in additional shares of its common stock, (b) Subsidiaries may declare and
pay cash dividends to the Company, (c) the Company may make Restricted Payments that are made in
the ordinary course of business pursuant to and in accordance with stock option plans or other
benefit plans for past, current, and future management or employees of the Company, and (d) the
Company may make any other Restricted Payment so long as (1) no Default or Event of Default has
occurred and is continuing prior to making such Restricted Payment or would arise after giving
effect (including pro forma effect) thereto and (2) the Company would not violate the Restricted
Payment Limitations after giving effect thereto.

          SECTION 6.08. Restrictive Agreements. The Company will not, and will not permit any
of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement
or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the
Company or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or
assets, or (b) the ability

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of any Subsidiary to pay dividends or other distributions with respect to holders of its
Equity Interests, to make or repay loans or advances to the Company or any other Subsidiary or to
Guarantee Indebtedness of the Company or any other Subsidiary, in each case, which are materially
more restrictive than this Agreement (with the understanding that there shall be no restriction on
the repayment of amount owing under or in connection herewith); provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document,
(ii) the foregoing shall not apply to customary restrictions and conditions contained in agreements
relating to a Permitted Receivables Facility or the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such
sale is permitted hereunder, (iii) clause (a) of the foregoing shall not apply to restrictions or
conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if
such restrictions or conditions apply only to the property or assets securing such Indebtedness and
(iv) clause (a) of the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof.

          SECTION 6.09. Subordinated Indebtedness and Amendments to Subordinated Indebtedness
Documents. The Company will not, and will not permit any Subsidiary to, directly or indirectly
voluntarily prepay, defease or in substance defease, purchase, redeem, retire or otherwise acquire,
any Subordinated Indebtedness or any Indebtedness from time to time outstanding under the
Subordinated Indebtedness Documents. Furthermore, the Company will not, and will not permit any
Subsidiary to, amend the Subordinated Indebtedness Documents or any document, agreement or
instrument evidencing any Indebtedness incurred pursuant to the Subordinated Indebtedness Documents
(or any replacements, substitutions, extensions or renewals thereof) or pursuant to which such
Indebtedness is issued where such amendment, modification or supplement provides for the following
or which has any of the following effects:

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

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

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

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

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

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

     (g) amends, modifies or adds any affirmative covenant in a manner which (i) when taken
as a whole, is materially adverse to the Company, any Subsidiary and/or the Lenders or (ii)

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is more onerous than the existing applicable covenant in the Subordinated Indebtedness
Documents or the applicable covenant in this Agreement.

          SECTION 6.10. Sale and Leaseback Transactions. The Company shall not, nor shall it
permit any Subsidiary to, enter into any Sale and Leaseback Transaction, other than Sale and
Leaseback Transactions in respect of which the net cash proceeds received in connection therewith
does not exceed $25,000,000 in the aggregate during any fiscal year of the Company, determined on a
consolidated basis for the Company and its Subsidiaries.

          SECTION 6.11. Intentionally Omitted.

          SECTION 6.12. Financial Covenants.

          (a) Maximum Leverage Ratio. The Company will not permit the ratio (the
“Leverage Ratio”), determined as of the end of each of its fiscal quarters ending after
June 27, 2009, of (i) Consolidated Total Indebtedness to (ii) Consolidated EBITDA for the period of
four (4) consecutive fiscal quarters ending with the end of such fiscal quarter, all calculated for
the Company and its Subsidiaries on a consolidated basis, to be greater than 3.50 to 1.00.

          (b) Minimum Interest Coverage Ratio. The Company will not permit the ratio (the
“Interest Coverage Ratio”), determined as of the end of each of its fiscal quarters ending
after June 27, 2009, of (i) Consolidated EBITDA to (ii) Consolidated Interest Expense, in each case
for the period of four (4) consecutive fiscal quarters ending with the end of such fiscal quarter,
all calculated for the Company and its Subsidiaries on a consolidated basis, to be less than 3.00
to 1.00.

          (c) Minimum Consolidated Net Worth. The Company will not permit the Consolidated Net
Worth, determined as of the end of each of its fiscal quarters ending after June 27, 2009, to be
less than the sum of (i) $312,000,000 plus (ii) 35% of the Consolidated Net Income (if
positive) for such fiscal quarter.

ARTICLE VII

Events of Default

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

          (a) any Borrower shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;

          (b) any Borrower shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in clause (a) of this Article) payable under this Agreement, when
and as the same shall become due and payable, and such failure shall continue unremedied for a
period of five (5) Business Days;

          (c) any representation or warranty made or deemed made by or on behalf of any Borrower or any
Subsidiary in or in connection with this Agreement or any other Loan Document or any amendment or
modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,
financial statement or other document furnished pursuant to or in connection with this

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Agreement or any other Loan Document or any amendment or modification thereof or waiver
thereunder, shall prove to have been incorrect or misleading in any material respect when made or
deemed made;

          (d) any Borrower shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.01, 5.02, 5.03 (with respect to any Borrower’s existence), 5.08 or 5.09, in
Article VI or in Article X;

          (e) any Borrower or any Subsidiary Guarantor, as applicable, shall fail to observe or perform
any covenant, condition or agreement contained in this Agreement (other than those specified in
clause (a), (b) or (d) of this Article) or any other Loan Document, and such failure shall continue
unremedied for a period of thirty (30) days after notice thereof from the Administrative Agent to
the Company, on behalf of itself and the Canadian Borrower;

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

          (g) (i) the Company or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Indebtedness (other than Indebtedness referred
to in clauses (a) or (b) of this Article), the aggregate outstanding amount of which is in excess
of $15,000,000, beyond the period of grace, if any, provided in the instrument or agreement under
which such Indebtedness was created, or (ii) any event or condition occurs that results in any
Indebtedness referred to in subclause (i) of this clause (g) becoming due prior to its scheduled
maturity or that enables or permits (without the lapse of time, but with or without giving notice)
the holder or holders of any such Indebtedness or any trustee or agent on its or their behalf to
cause any such Indebtedness to become due, or to require the prepayment, repurchase, redemption or
defeasance thereof, prior to its scheduled maturity; provided that this subclause (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;

          (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of the Company or any Subsidiary
or its debts, or of a substantial part of its assets, under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for
the Company or any Subsidiary or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for sixty (60) days or an order or decree
approving or ordering any of the foregoing shall be entered;

          (i) the Company or any Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other relief under any Federal, state or foreign
bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition
described in clause (h) of this Article, (iii) apply for or consent to the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for the Company or any
Subsidiary or for a substantial part of its assets, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors or (vi) take any action for the purpose of effecting any of the
foregoing;

          (j) the Company or any of its Subsidiaries shall default in the payment when due, or in the
performance or observance, of any obligation or condition of any Material Contract (other than this
Agreement), unless, but only as long as, the existence of any such default is being contested by
the Company or any such Subsidiary in good faith by appropriate proceedings and adequate reserves
in

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respect thereof have been established on the books of the Company or such Subsidiary to the
extent required by GAAP;

          (k) a Change in Control shall occur;

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

          (m) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect;

          (n) one or more judgments for the payment of money in an aggregate amount in excess of
$15,000,000 in any fiscal year of the Company shall be rendered against the Company, any Subsidiary
or any combination thereof and the same shall remain undischarged for a period of thirty (30)
consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to attach or levy upon any assets of the Company or any
Subsidiary to enforce any such judgment;

          (o) the Company or any of its Subsidiaries shall incur, or shall be reasonably likely to
incur, any Environmental Liability that would be reasonably likely, individually or in the
aggregate, to have a Material Adverse Effect; or

          (p) the Company or any Subsidiary shall become unable, admit in writing its inability or fail
generally to pay its debts as they become due;

then, and in every such event (other than an event with respect to the Company described in clause
(h) or (i) of this Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by notice to the
Company, take either or both of the following actions, at the same or different times: (i)
terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part, in which case any
principal not so declared to be due and payable may thereafter be declared to be due and payable),
and thereupon the principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other Obligations of the Borrowers accrued hereunder and under
the other Loan Documents, shall become due and payable immediately, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Borrowers; and in case
of any event with respect to any Borrower described in clause (h) or (i) of this Article, the
Commitments shall automatically terminate and the principal of the Loans then outstanding, together
with accrued interest thereon and all fees and other Obligations accrued hereunder and under the
other Loan Documents, shall automatically become due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Borrowers.

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ARTICLE VIII

The Administrative Agent

          Each of the Lenders and Issuing Banks hereby irrevocably appoints the Administrative Agent as
its agent and authorizes the Administrative Agent to take such actions on its behalf, including
execution of the other Loan Documents, and to exercise such powers as are delegated to the
Administrative Agent by the terms of the Loan Documents, together with such actions and powers as
are reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with Company or any Subsidiary or other Affiliate thereof
as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall
not have any duty to disclose, and shall not be liable for the failure to disclose, any information
relating to the Company or any of its Subsidiaries that is communicated to or obtained by the bank
serving as Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent
shall not be liable for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 9.02) or in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to the Administrative Agent by the Company or a
Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or
inquire into (i) any statement, warranty or representation made in or in connection with any Loan
Document, (ii) the contents of any certificate, report or other document delivered hereunder or in
connection with any Loan Document, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Company), independent accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such counsel, accountants or
experts.

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          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Banks and the Company. Upon any such resignation, the Required Lenders shall have the
right, in consultation with the Company, to appoint a successor. If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment within thirty (30)
days after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor
Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of
any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a
successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. The fees payable by any Borrower to
a successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between such Borrower and such successor. After the Administrative Agent’s
resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for
the benefit of such retiring Administrative Agent, its sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them while it was acting
as Administrative Agent. Notwithstanding anything in this Agreement to the contrary, the
Administrative Agent may not be removed without its prior written consent.

          Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges that it will, independently and without reliance upon the Administrative
Agent or any other Lender and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

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

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

          The Lenders are not partners or co-venturers, and no Lender shall be liable for the acts or
omissions of, or (except as otherwise set forth herein in case of the Administrative Agent)
authorized to

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act for, any other Lender. The Administrative Agent shall have the exclusive right on behalf
of the Lenders to enforce the payment of the principal of and interest on any Loan after the date
such principal or interest has become due and payable pursuant to the terms of this Agreement.

          The Lenders hereby authorize the Administrative Agent, at its option and in its discretion, to
release any Subsidiary Guarantor from its obligations under any Subsidiary Guaranty (i) as
permitted by, but only in accordance with, the terms of the applicable Loan Documents (including
sales of Equity Interests of any Subsidiary permitted under Section 6.03); or (ii) if approved,
authorized or ratified in writing by the Required Lenders, unless such release is required to be
approved by all of the Lenders hereunder; provided, however, that (i) the
Administrative Agent shall not be required to execute any such document on terms which, in the
Administrative Agent’s opinion, would expose the Administrative Agent to liability or create any
obligation or entail any consequence other than the release of such Subsdiary Guarantor from its
obligations under any Subsidiary Guaranty, and (ii) such release shall not in any manner discharge,
affect or impair the Obligations. Upon request by the Administrative Agent at any time, the
Lenders will confirm in writing the Administrative Agent’s authority to release any Subsidiary
Guarantor from its obligations under any Subsidiary Guaranty pursuant hereto.

ARTICLE IX

Miscellaneous

          SECTION 9.01. Notices. (a) Except in the case of notices and other communications
expressly permitted to be given by telephone (and subject to paragraph (b) below), all notices and
other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopy, as follows:

     (i) if to any Borrower, to G&K Services, Inc., 5995 Opus Parkway, Minnetonka,
Minnesota 55343, Attention of Thomas J. Rooney, Vice President and Treasurer (Telecopy No.
(952) 912-5950; Telephone No. (952) 912-5870);

     (ii) if to the Administrative Agent, (A) in the case of Borrowings by the Company
denominated in Dollars, to JPMorgan Chase Bank, N.A., Loan and Agency, Attention of Cecily
Roland (Telecopy No. (312) 385-7098), (B) in the case of Borrowings by the Canadian
Borrower, to J.P. Morgan Chase Bank, N.A., Toronto Branch, Attention of Indrani Lazarus
(Telecopy No. (416) 981-9174), or (C) in the case of Borrowings denominated in Foreign
Currencies, to J.P. Morgan Europe Limited, 125 London Wall, London EC2Y 5AJ, Attention of
Loan and Agency (Telecopy No. 44 207 777 2353 or 44 207 777 2355);

     (iii) if to JPMorgan Chase Bank, N.A., as an Issuing Bank, to it at JPMorgan Chase
Bank, N.A., Attention of Frank Petrassi (Telecopy No. (312) 954-0203);

     (iv) if to Wells Fargo Bank, National Association, as an Issuing Bank, to it at Wells
Fargo, National Association, 90 S. 7th Street, 5th Floor, Attention of
Devon Cohen (Telecopy No. (612) 667-7266);

     (v) if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., Loan and Agency,
Attention of Cecily Roland (Telecopy No. (312) 385-7098); and

     (vi) if to any other Lender, to it at its address (or telecopy number) set forth in
its Administrative Questionnaire.

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          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices pursuant to Article II unless
otherwise agreed by the Administrative Agent and the applicable Lender. The Administrative Agent
or the Company may, in its discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications.

          (c) Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and other
communications given to any party hereto in accordance with the provisions of this Agreement shall
be deemed to have been given on the date of receipt.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Administrative
Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other
Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent, the Issuing Banks and the Lenders hereunder
and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of any Loan Document or consent to any
departure by any Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Administrative Agent, any Lender or any Issuing
Bank may have had notice or knowledge of such Default at the time.

          (b) Except as provided in Section 2.20, neither this Agreement nor any provision hereof may
be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers and the Required Lenders or by the Borrowers and the Administrative Agent
with the consent of the Required Lenders; provided that no such agreement shall (i)
increase the Aggregate Commitment without the written consent of each Lender, (ii) reduce the
principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written consent of each Lender directly affected thereby,
(iii) postpone the scheduled date of payment of the principal amount of any Loan or LC
Disbursement, or any interest thereon, or any fees payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender directly affected thereby, (iv) change Section 2.18(b)
or (d) in a manner that would alter the pro rata sharing of payments required thereby, without the
written consent of each Lender, (v) change any of the provisions of this Section or the definition
of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders
required to waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Lender (it being understood that, solely
with the consent of the parties prescribed by Section 2.20 to be parties to an Incremental Term
Loan Amendment, Incremental Term Loans may be included in the determination of Required Lenders on
substantially the same basis as the Commitments and the Revolving Loans are included on the
Effective Date) or (vi) release the Company or all or substantially all of the Subsidiary
Guarantors from their obligations under Article X or any Subsidiary Guaranty, as applicable,
without the written consent of each Lender; provided further that no such agreement
shall amend, modify or otherwise affect the rights or duties of the Administrative Agent, any
Issuing Bank or the Swingline Lender hereunder without the prior

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written consent of the Administrative Agent, such Issuing Bank or the Swingline Lender, as the
case may be.

          (c) Notwithstanding the foregoing, this Agreement and any other Loan Document may be amended
(or amended and restated) with the written consent of the Required Lenders, the Administrative
Agent and the Borrowers to each relevant Loan Document (x) to add one or more credit facilities (in
addition to the Incremental Term Loans pursuant to an Incremental Term Loan Amendment) to this
Agreement and to permit extensions of credit from time to time outstanding thereunder and the
accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and
the other Loan Documents with the Revolving Loans, Incremental Term Loans and the accrued interest
and fees in respect thereof and (y) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders and Lenders.

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

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Company shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the Administrative Agent,
in connection with the syndication and distribution (including, without limitation, via the
internet or through a service such as Intralinks) of the credit facilities provided for herein, the
preparation and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the Issuing Banks in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses
incurred by the Administrative Agent, any Issuing Bank or any Lender, including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Issuing Bank or any Lender, in
connection with the enforcement or protection of its rights in connection with this Agreement and
any other Loan Document, including its rights under this Section, or in connection with the Loans
made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

          (b) The Company shall indemnify the Administrative Agent, each Issuing Bank and each Lender,
and each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and disbursements of any
counsel for any

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Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with,
or as a result of (i) the execution or delivery of any Loan Document or any agreement or instrument
contemplated thereby, the performance by the parties hereto of their respective obligations
thereunder or the consummation of the Transactions or any other transactions contemplated hereby,
(ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by
any Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented
in connection with such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or from any property
owned or operated by the Company or any of its Subsidiaries, or any Environmental Liability related
in any way to the Company or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

          (c) To the extent that the Company fails to pay any amount required to be paid by it to the
Administrative Agent, any Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this
Section, each Lender severally agrees to pay to the Administrative Agent, such Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount
(it being understood that the Company’s failure to pay any such amount shall not relieve the
Company of any default in the payment thereof); provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent, such Issuing Bank or the Swingline Lender in its
capacity as such.

          (d) To the extent permitted by applicable law, no Borrower shall assert, and each Borrower
hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the
use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable not later than fifteen (15) days
after written demand therefor.

          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby (including any Affiliate of any Issuing Bank that issues any Letter of
Credit), except that (i) no Borrower may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by any Borrower without such consent shall be null and void) and (ii) no
Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance
with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted
hereby (including any Affiliate of any Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this Agreement.

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     (b)(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender
may assign to one or more assignees all or a portion of its rights and obligations under
this Agreement (including all or a portion of its Commitment and the Loans at the time owing
to it) with the prior written consent (such consent not to be unreasonably withheld) of:

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

     (B) the Administrative Agent; and

     (C) the Issuing Banks.

     (ii) Assignments shall be subject to the following additional conditions:

     (A) except in the case of an assignment to a Lender or an Affiliate of a Lender
or an Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of
the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the Company
and the Administrative Agent otherwise consent, provided that no such
consent of the Company shall be required if an Event of Default has occurred and is
continuing;

     (B) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement,
provided that this clause shall not be construed to prohibit the assignment of a
proportionate part of all the assigning Lender’s rights and obligations in respect
of one Class of Commitments or Loans;

     (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500, such fee to be paid by either the assigning Lender or the
assignee Lender or shared between such Lenders; and

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

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

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

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and Assumption the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment
and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption,
be released

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from its obligations under this Agreement (and, in the case of an Assignment and Assumption
covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections
2.15, 2.16, 2.17 and 9.03). Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

          (iv) The Administrative Agent, acting for this purpose as an agent of each Borrower, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Commitment of, and
principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrowers, the Administrative Agent, the Issuing Banks and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Company, any Issuing Bank and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee
shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the assigning Lender
or the assignee shall have failed to make any payment required to be made by it pursuant to Section
2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall have no
obligation to accept such Assignment and Assumption and record the information therein in the
Register unless and until such payment shall have been made in full, together with all accrued
interest thereon. No assignment shall be effective for purposes of this Agreement unless it has
been recorded in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Company, the Administrative Agent, any
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Banks and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant. Subject
to paragraph (c)(ii) of this Section, each Borrower agrees that each Participant shall be entitled
to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though
it were a Lender, provided such Participant agrees to be subject to Section 2.18(d) as though it
were a Lender.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15 or
2.17 than the applicable Lender would have been entitled to receive with respect to the

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participation sold to such Participant, unless the sale of the participation to such
Participant is made with the Company’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the
Company is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Company, to comply with Section 2.17(e) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties
made by the Loan Parties in the Loan Documents and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, any Issuing Bank or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is extended hereunder,
and shall continue in full force and effect as long as the principal of or any accrued interest on
any Loan or any fee or any other amount payable under this Agreement or any other Loan Document is
outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have
not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII
shall survive and remain in full force and effect regardless of the consummation of the
transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the
Letters of Credit and the Commitments or the termination of this Agreement or any other Loan
Document or any provision hereof or thereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement, the other Loan Documents and any separate letter agreements with respect
to fees payable to the Administrative Agent constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement
by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 9.07. Severability. Any provision of any Loan Document held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the
extent of such invalidity, illegality or unenforceability without affecting the validity, legality
and enforceability of the remaining provisions thereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time
to time,

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to the fullest extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final and in whatever currency denominated) at any time
held and other obligations at any time owing by such Lender or Affiliate to or for the credit or
the account of any Borrower or any Subsidiary Guarantor against any of and all the Obligations held
by such Lender, irrespective of whether or not such Lender shall have made any demand under the
Loan Documents and although such obligations may be unmatured. The rights of each Lender under
this Section are in addition to other rights and remedies (including other rights of setoff) which
such Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This
Agreement shall be construed in accordance with and governed by the law of the State of New York.

          (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in
New York County and of the United States District Court of the Southern District of New York, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to any
Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent permitted by law,
in such Federal court. Each of the parties hereto agrees that a final judgment in any such action
or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan
Document shall affect any right that the Administrative Agent, any Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or any other Loan
Document against any Loan Party or its properties in the courts of any jurisdiction.

          (c) Each Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement or any other
Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. The Canadian Borrower irrevocably designates and appoints
the Company, as its authorized agent, to accept and acknowledge on its behalf, service of any and
all process which may be served in any suit, action or proceeding of the nature referred to in
Section 9.09(b) in any federal or New York State court sitting in New York City. The Company
hereby represents, warrants and confirms that the Company has agreed to accept such appointment
(and any similar appointment by a Subsidiary Guarantor which is a Foreign Subsidiary). Said
designation and appointment shall be irrevocable by the Canadian Borrower until all Loans, all
reimbursement obligations, interest thereon and all other amounts payable by the Canadian Borrower
hereunder and under the other Loan Documents shall have been paid in full in accordance with the
provisions hereof and thereof and this Agreement shall have been terminated in accordance with the
terms hereof. The Canadian Borrower hereby consents to process being served in any suit, action or
proceeding of the nature referred to in Section 9.09(b) in any federal or New York State court
sitting in New York City by service of process upon the Company as provided in this Section
9.09(d); provided that, to the extent lawful and possible, notice of said service upon such
agent shall be mailed by registered or certified air mail, postage prepaid, return receipt
requested, to the Company and (if applicable to) the Canadian Borrower at its address set forth in
Section 9.01. The Canadian Borrower irrevocably waives, to the fullest extent permitted by law,
all claim of error by reason of any such service in such manner and agrees that such service shall
be deemed in every respect effective service of process upon the Canadian

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Borrower in any such suit, action or proceeding and shall, to the fullest extent permitted by
law, be taken and held to be valid and personal service upon and personal delivery to the Canadian
Borrower. To the extent the Canadian Borrower has or hereafter may acquire any immunity from
jurisdiction of any court or from any legal process (whether from service or notice, attachment
prior to judgment, attachment in aid of execution of a judgment, execution or otherwise), the
Canadian Borrower hereby irrevocably waives such immunity in respect of its obligations under the
Loan Documents. Nothing in this Agreement or any other Loan Document will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and shall not affect
the construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each of the Administrative Agent, the Issuing Banks
and the Lenders agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with
the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement
or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this Section, to (i) any
assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights
or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to any Borrower and its obligations, (g)
with the consent of the Company or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes available to the
Administrative Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other
than the Company. For the purposes of this Section, “Information” means all information
received from the Company relating to the Company or its business, other than any such information
that is available to the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential
basis prior to disclosure by the Company; provided that, in the case of information
received from the Company after the date hereof, such information is clearly identified at the time
of delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.

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          SECTION 9.13. USA PATRIOT Act. Each Lender that is subject to the requirements of
the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”) hereby notifies each Loan Party that pursuant to the requirements of the Act, it is
required to obtain, verify and record information that identifies such Loan Party, which
information includes the name and address of such Loan Party and other information that will allow
such Lender to identify such Loan Party in accordance with the Act.

          SECTION 9.14. Several Obligations; Nonreliance; Violation of Law. The respective
obligations of the Lenders hereunder are several and not joint and the failure of any Lender to
make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. Each Lender hereby represents that it is not relying on or
looking to any margin stock for the repayment of the Borrowings provided for herein. Anything
contained in this Agreement to the contrary notwithstanding, neither the Issuing Banks nor any
Lender shall be obligated to extend credit to any Borrower in violation of any applicable law.

          SECTION 9.15. Disclosure. Each of the Borrowers and Lenders hereby acknowledges and
agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments
in, make other loans to or have other relationships with any of the Borrowers, the Subsidiaries and
their respective Affiliates.

          SECTION 9.16. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges
and other amounts which are treated as interest on such Loan under applicable law (collectively,
the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may
be contracted for, charged, taken, received or reserved by the Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan
but were not payable as a result of the operation of this Section shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together with interest
hereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by
such Lender.

ARTICLE X

Company Guaranty

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

          The Company waives presentment to, demand of payment from and protest to the Canadian Borrower
of any of the Obligations, and also waives notice of acceptance of its obligations and notice of
protest for nonpayment. The obligations of the Company hereunder shall not be affected by (a) the
failure of the Administrative Agent, any Issuing Bank or any Lender to assert any claim or demand
or to enforce any right or remedy against the Canadian Borrower under the provisions of this
Agreement, any other Loan Document or otherwise; (b) any extension or renewal of any of the
Obligations; (c) any rescission, waiver, amendment or modification of, or release from, any of the
terms or provisions of this

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Agreement, or any other Loan Document or agreement; (d) any default, failure or delay, willful
or otherwise, in the performance of any of the Obligations; (e) the failure of the Administrative
Agent to take any steps to perfect and maintain any security interest in, or to preserve any rights
to, any security or collateral for the Obligations, if any; (f) any change in the corporate,
partnership or other existence, structure or ownership of the Company or any other guarantor of any
of the Obligations; (g) the enforceability or validity of the Obligations or any part thereof or
the genuineness, enforceability or validity of any agreement relating thereto or with respect to
any collateral securing the Obligations or any part thereof, or any other invalidity or
unenforceability relating to or against any Borrower or any guarantor of any of the Obligations,
for any reason related to this Agreement, any Swap Agreement, any other Loan Document, or any
provision of applicable law, decree, order or regulation of any jurisdiction purporting to prohibit
the payment by any Borrower or any guarantor of the Obligations, of any of the Obligations or
otherwise affecting any term of any of the Obligations; or (h) any other act, omission or delay to
do any other act which may or might in any manner or to any extent vary the risk of the Company or
otherwise operate as a discharge of a guarantor as a matter of law or equity or which would impair
or eliminate any right of the Company to subrogation.

          The Company further agrees that its agreement hereunder constitutes a guarantee of payment
when due (whether or not any bankruptcy or similar proceeding shall have stayed the accrual or
collection of any of the Obligations or operated as a discharge thereof) and not merely of
collection, and waives any right to require that any resort be had by the Administrative Agent, any
Issuing Bank or any Lender to any balance of any deposit account or credit on the books of the
Administrative Agent, any Issuing Bank or any Lender in favor of any Borrower or any other Person.

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

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

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

74

 

against any losses or reasonable out-of-pocket expenses that it shall sustain as a result of
such alternative payment.

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

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

[Signature Pages Follow]

75

 

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

	 	 	 	 	 
	 	G&K SERVICES, INC., as the Company

 	 
	 	By:  	/s/ Thomas J. Rooney
 	 
	 	 	Name:  	Thomas J. Rooney 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	G&K SERVICES CANADA INC., as the

Canadian Borrower

 	 
	 	By:  	/s/ Jeffrey L. Wright
 	 
	 	 	Name:  	Jeffrey L. Wright 	 
	 	 	Title:  	Executive Vice President,
Chief Financial Officer and Treasurer 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., individually,
 as a
Lender, as Swingline Lender, as an Issuing

Bank and as Administrative Agent

 	 
	 	By:  	/s/ Suzanne D. Ergastolo
 	 
	 	 	Name:  	Suzanne D. Ergastolo	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

individually, as a Co-Syndication Agent, a

Lender and as an Issuing Bank

 	 
	 	By:  	/s/ Michael J. McGroarty
 	 
	 	 	Name:  	Michael J. McGroarty	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., individually,

as a Co-Syndication Agent and as a

Lender

 	 
	 	By:  	/s/ Brian Lukehart
 	 
	 	 	Name:  	Brian Lukehart 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF AMERICA, N.A., (Canada branch)

 	 
	 	By:  	/s/ Medina Sales de Andrade
 	 
	 	 	Name:  	Medina Sales de Andrade 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	SUNTRUST BANK, individually, as a Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ David Fournier
 	 
	 	 	Name:  	David Fournier 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, individually, as a Co-Documentation
Agent and as a Lender

 	 
	 	By:  	/s/ Magnus McDowell
 	 
	 	 	Name:  	Magnus McDowell 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender

 	 
	 	By:  	/s/ Victor Pierzchalski
 	 
	 	 	Name:  	Victor Pierzchalski 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	HARRIS N.A., as a Lender

 	 
	 	By:  	/s/ Gary D. Clark
 	 
	 	 	Name:  	Gary D. Clark 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, as a Lender

 	 
	 	By:  	/s/ Gary S. Losey
 	 
	 	 	Name:  	Gary S. Losey 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	NATIONAL CITY BANK, as a Lender

 	 
	 	By:  	/s/ Michael Leong
 	 
	 	 	Name:  	Michael Leong 	 
	 	 	Title:  	Vice President 	 
	 
	 	NATIONAL CITY BANK CANADA BRANCH

 	 
	 	By:  	/s/ Caroline Stade
 	 
	 	 	Name:  	Caroline Stade 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	/s/ Bill Hines
 	 
	 	 	Name:  	Bill Hines 	 
	 	 	Title:  	Senior Vice President and Principal
Officer 	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as a Lender

 	 
	 	By:  	/s/ Anu Agarwal
 	 
	 	 	Name:  	Anu Agarwal 	 
	 	 	Title:  	Second Vice President 	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/ Timothy O’Rourke
 	 
	 	 	Name:  	Timothy O’Rourke 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Credit Agreement

G&K Services, Inc.

G&K Services Canada Inc.

 

 

SCHEDULE 2.01

COMMITMENTS

	 	 	 	 	 
	LENDER	 	COMMITMENT
	JPMORGAN CHASE BANK, N.A.
	 	$	35,000,000	 
	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	$	35,000,000	 
	BANK OF AMERICA, N.A.
	 	$	35,000,000	 
	SUNTRUST BANK
	 	$	32,500,000	 
	U.S. BANK NATIONAL ASSOCIATION
	 	$	32,500,000	 
	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
	 	$	27,500,000	 
	HARRIS N.A.
	 	$	27,500,000	 
	FIFTH THIRD BANK
	 	$	20,000,000	 
	NATIONAL CITY BANK
	 	$	20,000,000	 
	THE NORTHERN TRUST COMPANY
	 	$	20,000,000	 
	COMERICA BANK
	 	$	15,000,000	 
	AGGREGATE COMMITMENT
	 	$	300,000,000EX-4.1

Exhibit 4.1

AUTOZONE, INC.

$500,000,000 5.750% Senior Notes due 2015

OFFICERS’ CERTIFICATE

PURSUANT TO SECTION 3.2 OF THE INDENTURE

     A. Pursuant to resolutions of the Board of Directors of AutoZone, Inc., a Nevada corporation
(the “Company”), adopted on March 18, 2009 (the “Resolutions”), the undersigned, Charlie Pleas,
III, Senior Vice President and Controller, and William T. Giles, Executive Vice President and Chief
Financial Officer, of the Company certify that pursuant to the Resolutions and Section 3.2 of the
Indenture, dated as of August 8, 2003 (the “Indenture”), between the Company and The Bank of New
York Mellon Trust Company, N.A., as successor in interest to Bank One Trust Company, N.A., as
trustee (the “Trustee”), there is hereby established a series of Securities (as that term is
defined in the Indenture), the terms and form of which shall be as follows (capitalized terms not
defined herein shall have the meanings assigned to them in the Indenture):

          (a) The title of the series of the Securities shall be “5.750% Senior Notes due 2015” (the
“Notes”).

          (b) The Notes shall be issued at a price of 99.959% of the principal amount thereof.

          (c) The aggregate principal amount of the Notes that may be authenticated and delivered under
the Indenture (except for Notes authenticated and delivered upon registration of, transfer of, or
in exchange for, or in lieu of, other Notes pursuant to Sections 3.7, 3.8, 3.11, 4.7 or 10.6 of the
Indenture) initially shall be $500,000,000. The Company may, without the consent of the Holders of
the Notes, create and issue additional Notes ranking equally and ratably with the Notes and
otherwise identical to the Notes in all respects, except for the payment of interest accruing prior
to the issue date of such additional Notes and, in some cases, the first payment of interest
following the issue date of such additional Notes and the initial interest accrual date thereof, so
that such further Notes shall form a single series with the Notes.

          (d) The principal amount of the Notes shall be payable in full on January 15, 2015, subject to
and in accordance with the provisions of the Indenture.

          (e) The Notes shall bear interest at the rate of 5.750% per annum (unless such rate is
adjusted pursuant to clause (o) hereof) from July 2, 2009, or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, payable semi-annually on January 15 and
July 15 of each year (each an “Interest Payment Date”), commencing on January 15, 2010, until the
principal amount of the Notes has been paid or duly provided for. January 1 and July 1 (whether or
not a Business Day), as the case may be, next preceding an Interest Payment Date, shall be a
“Regular Record Date” for the interest payable on such Interest Payment Date.

          (f) The principal of and interest on the Notes shall be payable at the Corporate Trust Office
of the Trustee in New York, New York.

          (g) The Notes will be redeemable, at any time in whole or from time to time in part, at the
option of the Company, at a redemption price equal to accrued and unpaid interest on the principal
amount being redeemed to the redemption date plus the greater of (i) 100% of the principal amount
of such Notes; and (ii) the sum of the present values of the remaining scheduled payments of
principal and interest on such Notes (not including any portion of such payments of interest
accrued to the date of

 

 

redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Adjusted Treasury Rate, plus 50 basis points, as
determined in good faith by the Company.

     “Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per
year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue,
assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that date of redemption.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be
redeemed that would be used, at the time of selection and under customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Notes.

     “Comparable Treasury Price” means, with respect to any date of redemption, the average
of the Reference Treasury Dealer Quotations for such date of redemption, after excluding the
highest and lowest of such Reference Treasury Dealer Quotations, or if the Quotation Agent
obtains fewer than four such Reference Treasury Dealer Quotations, the average of all
Reference Treasury Dealer Quotations.

     “Quotation Agent” means one of the Reference Treasury Dealer appointed by the Company.

     “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. and a primary
treasury dealer selected by Wachovia Capital Markets, LLC and their respective successors
and any other primary U.S. government securities dealers in New York City the Company
selects (each, a “Primary Treasury Dealer”). If any of the foregoing ceases to be a Primary
Treasury Dealer, the Company must substitute another Primary Treasury Dealer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury
Dealer and any date of redemption, the average, as determined by the Quotation Agent, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the Quotation Agent by such
Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such date of redemption.

     Notice of any redemption will be mailed at least 30 days but not more than 60 days before the
date of redemption to each holder of the Notes to be redeemed. Notwithstanding anything to the
contrary in Section 4.4 of the Indenture, such notice of redemption need not set forth the
redemption price but only the manner of calculation thereof. The Company shall give the Trustee
notice of the amount of the redemption price promptly after the calculation thereof and the Trustee
shall have no responsibility for such calculation. Unless the Company defaults in payment of the
redemption price, on and after the date of redemption, interest will cease to accrue on the Notes
or portions of the Notes called for redemption.

          (h) The Notes will be issued only in registered form in minimum denominations of $2,000 and
integral multiples of $1,000 in excess thereof.

          (i) The Notes shall be issuable in whole or in part in the form of one or more Global
Securities. Such Global Securities may be exchanged in whole or in part for individual Securities in

 

 

definitive form only on the terms and conditions set forth in the Indenture. The initial
Depository for such Global Securities shall be The Depository Trust Company.

          (j) The Notes shall be denominated in Dollars and the payment of the principal of and interest
on the Notes shall be in Dollars.

          (k) The Notes shall be defeasible as provided in Article IX of the Indenture.

          (l) The Notes shall not be subject to any mandatory sinking fund.

          (m) If a Change of Control Triggering Event occurs with respect to the Notes, unless the
Company has exercised its right to redeem the Notes as described in Section 4.2 of the Indenture
and clause (A)(g) of this Officers’ Certificate, Holders of Notes shall have the right to require
the Company to make an offer to each Holder of Notes to repurchase all or any part (equal to $2,000
or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes pursuant to the offer
described below (the “Change of Control Offer”) on the terms set forth in the Notes. In the Change
of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the
aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the
Notes repurchased to the date of repurchase (the “Change of Control Payment”). Within 30 days
following any Change of Control Triggering Event or, at the Company’s option, prior to the date of
the consummation of any Change of Control, but after the public announcement of the transaction
that constitutes or may constitute the Change of Control, the Company shall be required to mail a
notice to the Holders of the Notes, with a copy to the Trustee, describing the transaction or
transactions that constitute or may constitute the Change of Control Triggering Event and offering
to repurchase the Notes on the date specified in the notice, which date will be no earlier than 30
days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment
Date”), pursuant to the procedures required by the Notes and described in such notice. The notice
shall, if mailed prior to the date of the consummation of the Change of Control, state that the
Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or
prior to the applicable Change of Control Payment Date. The Company must comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection with the
repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the
provisions of any securities laws or regulations conflict with the Change of Control Triggering
Event provisions of the Notes, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under the Change of Control
Triggering Event provisions of the Notes by virtue of such conflicts.

     “Capital Stock” means the capital stock of every class whether now or hereafter
authorized, regardless of whether such capital stock shall be limited to a fixed sum or
percentage with respect to the rights of the holders thereof to participate in dividends and
in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or
winding up of such corporation.

     “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger
or consolidation), in one or more series of related transactions, of all or substantially
all of the Company’s assets and the assets of its Subsidiaries, taken as a whole, to any
Person, other than the Company or one of its Subsidiaries, taken as a whole, to any Person,
other than the Company or one of its Subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of which is that any
Person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act), directly or indirectly, of more

 

 

than 50% of the Company’s outstanding Voting Stock or other Voting Stock into which the
Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by
voting power rather than number of shares; (3) the Company consolidates with, or merges with
or into, any Person, or any Person consolidates with, or merges with or into, the Company,
in any such event pursuant to a transaction in which any of the Company’s outstanding Voting
Stock or the Voting Stock of such other Person is converted into or exchanged for cash,
securities or other property, other than any such transaction where the shares of the
Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are
converted into or exchanged for, a majority of the Voting Stock of the surviving Person or
any direct or indirect parent company of the surviving Person immediately after giving
effect to such transaction; (4) the first day on which a majority of the members of the
Board of Directors are not Continuing Directors; or (5) the adoption of a plan relating to
the Company’s liquidation or dissolution. Notwithstanding the foregoing, a transaction shall
not be deemed to involve a Change of Control under clause (2) above if (i) the Company
becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the
direct or indirect Holders of the Voting Stock of such holding company immediately following
that transaction are substantially the same as the Holders of the Company’s Voting Stock
immediately prior to that transaction or (B) immediately following that transaction no
Person (other than a holding company satisfying the requirements of this sentence) is the
beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such
holding company.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control
and a Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Board
of Directors who (A) was a member of such Board of Directors on the date the Notes were
issued or (B) was nominated for election, elected or appointed to such Board of Directors
with the approval of a majority of the continuing directors who were members of such Board
of Directors at the time of such nomination, election or appointment (either by a specific
vote or by approval of a proxy statement in which such member was named as a nominee for
election as a director, without objection to such nomination).

     “Fitch” means Fitch Inc., and its successors.

     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the
equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by
S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or
Rating Agencies selected by the Company.

     “Moody’s” means Moody’s Investors Service, Inc., and its successors.

     “Person” has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

     “Rating Agencies” means (A) each of Fitch, Moody’s and S&P; and (B) if any of Fitch,
Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly
available for reasons outside of the Company’s control, a “nationally recognized statistical
rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act
selected by the Company (as certified by a resolution of the Board of Directors) as a
replacement for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

 

     “Rating Event” means the rating on the Notes is lowered by at least two of the three
Rating Agencies and the Notes are rated below an Investment Grade Rating by at least two of
the three Rating Agencies on any day during the period (which period will be extended so
long as the rating of the Notes is under publicly announced consideration for a possible
downgrade by any of the Rating Agencies) commencing 60 days prior to the first public notice
of the occurrence of a Change of Control or the Company’s intention to effect a Change of
Control and ending 60 days following consummation of such Change of Control.

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill
Corporation, Inc., and its successors.

     “Voting Stock” means, with respect to any specified Person as of any date, the Capital
Stock of such person that is at the time entitled to vote generally in the election of the
Board of Directors of such Person.

          (n) On the Change of Control Payment Date, the Company shall be required, to the extent
lawful:

          (i) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

          (ii) deposit with the paying agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

          (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being repurchased.

     The paying agent will promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Note, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of any Notes surrendered; provided that each new Note will be in a principal amount of
$2,000 or an integral multiple of $1,000 in excess thereof. The Company will not be required to
make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a
third party makes such an offer in the manner, at the times and otherwise in compliance with the
requirements for an offer made by the Company and the third party repurchases all Notes properly
tendered and not withdrawn under its offer. In addition, the Company will not repurchase any Notes
if there has occurred and is continuing on the Change of Control Payment Date an Event of Default
under the Indenture, other than a Default in the payment of the Change of Control Payment upon a
Change of Control Triggering Event.

          (o) If the rating of the Notes from any one or more of the three Rating Agencies is decreased
to a rating set forth in any of the immediately following tables, the interest rate on the Notes
will increase from the interest rate otherwise payable on the Notes by an amount equal to the sum
of the percentages set forth in the following tables opposite those ratings; provided, that only
the two lowest ratings assigned to the Notes (or deemed assigned, as provided in the rules of
interpretation set forth below) will be taken into account for purposes of any interest rate
adjustment:

 

 

	 	 	 	 	 
	Moody’s Rating	 	Percentage
	 
	 	 	 	 
	Ba1
	 	 	0.25	%
	Ba2
	 	 	0.50	%
	Ba3
	 	 	0.75	%
	B1 or below
	 	 	1.00	%

	 	 	 	 	 
	S&P Rating	 	Percentage
	 
	 	 	 	 
	BB+
	 	 	0.25	%
	BB
	 	 	0.50	%
	BB-
	 	 	0.75	%
	B+ or below
	 	 	1.00	%

	 	 	 	 	 
	Fitch Rating	 	Percentage
	 
	 	 	 	 
	BB+
	 	 	0.25	%
	BB
	 	 	0.50	%
	BB-
	 	 	0.75	%
	B+ or below
	 	 	1.00	%

     If at any time the interest rate on the Notes has been adjusted upward and any of the Rating
Agencies subsequently increases its rating of the Notes, the interest rate on the Notes will again
be adjusted (and decreased, if appropriate) such that the interest rate on the Notes equals the
interest rate otherwise payable on the Notes prior to any adjustment plus (if applicable) an amount
equal to the sum of the percentages set forth opposite the ratings in the tables above with respect
to the two lowest ratings assigned to the Notes (or deemed assigned) at that time, all calculated
in accordance with the rules of interpretation set forth below.

     Any interest rate increase or decrease described above will take effect from the first
Business Day after the rating change has occurred requiring an adjustment in the interest rate. If
any Rating Agency changes its rating of the Notes more than once during any particular interest
period, the last such change to occur will control in the event of a conflict. An “interest period”
is the period from and including an Interest Payment Date (or the original issuance date of the
Notes, if earlier) to but excluding the next succeeding Interest Payment Date.

     For purposes of making adjustments to the interest rate payable on the Notes, the following
rules of interpretation will apply:

          (i) if a Rating Agency has ceased to provide a rating of the Notes for any reason, that
Rating Agency will be deemed to have rated the Notes at the lowest level contemplated by the
table above;

          (ii) if only one of the three Rating Agencies ceases to provide a rating of the Notes
for any reason, the deemed rating of that Rating Agency will be disregarded for purposes of
all interest rate adjustments;

          (iii) if two of the three Rating Agencies cease to provide a rating of the Notes for
any reason, the deemed rating of only one of such two Rating Agencies will be disregarded;

          (iv) if all three Rating Agencies cease to provide a rating of the Notes for any
reason, the interest rate on the Notes will increase to, or remain at, as the case may be,
2.00% above the interest rate otherwise payable on the Notes prior to any adjustment;

 

 

          (v) each interest rate adjustment required by any decrease or increase in a rating by
any one Rating Agency will be made independently of (and in addition to) any and all other
adjustments; and

          (vi) in no event will (A) the per annum interest rate on the Notes be reduced to below
the interest rate otherwise payable on the Notes prior to any adjustment or (B) the total
increase in the interest rate on the Notes exceed 2.00% above the interest rate otherwise
payable on the Notes prior to any adjustment.

     Promptly after any change in the interest rate on the Notes as provided above, the Company
shall notify the Trustee in writing that (i) the effective date the interest rate on the Notes has
changed in accordance with this Section A.(o); (ii) the amount of the related increase or decrease;
and (iii) the new interest rate on the Notes.

     The interest rate on the Notes will permanently cease to be subject to any adjustment
described above (notwithstanding any subsequent decrease in the ratings by any Rating Agency) if
the Notes become rated “A3” (or its equivalent) or higher by Moody’s, “A—” (or its equivalent) or
higher by S&P and “A—” (or its equivalent) by Fitch, in each case with a stable or positive
outlook.

     “Rating Agency” means each of Fitch, Moody’s and S&P.

          (p) The Company shall not, and shall not permit any Subsidiary to, enter into any arrangement
with any Person providing for the leasing by the Company or any Subsidiary of any Property that has
been or is to be sold or transferred by the Company or such Subsidiary to such Person more than 180
days following the Company’s or its Subsidiary’s acquisition of such Property, with the intention
of taking back a lease of such Property (a “Sale and Leaseback Transaction”) unless the terms of
such sale or transfer have been determined by the Board of Directors to be fair and arm’s length
and either:

          (i) within 12 months after the receipt of the proceeds of the sale or transfer, the
Company or any Subsidiary apply an amount equal to the greater of the net proceeds of the
sale or transfer or the fair value of such Property at the time of such sale or transfer to
the prepayment or retirement (other than any mandatory prepayment or retirement) of Senior
Funded Debt; or

          (ii) the Company or such Subsidiary would be entitled, at the effective date of the
sale or transfer, to incur debt secured by a Lien on such Property in an amount at least
equal to the Attributable Debt in respect of the Sale and Leaseback Transaction, without
equally and ratably securing the Notes pursuant to Section 5.8 of the Indenture.

     The foregoing restriction in the paragraph above shall not apply to any Sale and Leaseback
Transaction (i) for a term of not more than three years including renewals; or (ii) between the
Company and a Subsidiary or between Subsidiaries, provided that the lessor is the Company or a
wholly owned Subsidiary.

     “Attributable Debt” in respect of a Sale and Leaseback Transaction means, at the time
of determination, the present value discounted at the rate of interest implicit in the terms
of the lease (as determined in good faith by the Company) of the obligations of the lessee
under such lease for net rental payments during the remaining term of the lease (including
any period for which such lease has been extended or may, at the Company’s option, be
extended).

 

 

     “Funded Debt” means debt which matures more than one year from the date of creation, or
which is extendable or renewable at the sole option of the obligor so that it may become
payable more than one year from such date or which is classified, in accordance with United
States generally accepted accounting principles, as long-term debt on the consolidated
balance sheet for the most recently ended fiscal quarter (or if incurred subsequent to the
date of such balance sheet, would have been so classified) of the person for which the
determination is being made. Funded Debt does not include (1) obligations created pursuant
to leases, (2) any debt or portion thereof maturing by its terms within one year from the
time of any computation of the amount of outstanding Funded Debt unless such debt shall be
extendable or renewable at the sole option of the obligor in such manner that it may become
payable more than one year from such time, or (3) any debt for which money in the amount
necessary for the payment or redemption of such debt is deposited in trust either at or
before the maturity date thereof.

     “Senior Funded Debt” means all Funded Debt of the Company or its Subsidiaries (except
Funded Debt, the payment of which is subordinated to the payment of the Notes).

          (q) Clause (xiii) of the definition of “Permitted Liens” in Section 1.1 of the Indenture is
hereby replaced and superseded in its entirety to read as follows:

(xiii) Liens existing on June 29, 2009, or any extension, amendments, renewals,
refinancings, replacements or other modifications thereto.

          (r) Clause (xviii) of the definition of “Permitted Liens” in the Indenture is hereby replaced
and superseded in its entirety to read as follows:

(xviii) other Liens on Property of the Company and its Subsidiaries securing debt having an
aggregate principal amount (or deemed amount, in the case of Attributable Debt) not to
exceed, as of any date of incurrence of such secured debt pursuant to this clause and after
giving effect to such incurrence and the application of the proceeds therefrom, the greater
of (1) $500 million and (2) 15% of the Company’s Consolidated Net Tangible Assets.

          (s) Section 7.1(e) of the Indenture is hereby amended by replacing the reference to “$35
million” set forth therein with a reference to “$75 million.”

          (t) The Notes shall be entitled to the benefit of the covenants in Article V of the Indenture.

          (u) The Notes constitute senior unsecured debt obligations of the Company and rank equally in
right of payment among themselves and with all other existing and future senior, unsecured and
unsubordinated debt obligations of the Company.

          (v) There shall be no Events of Default other than those provided in Section 7.1 of the
Indenture and the failure by the Company to comply with the provisions of clauses A.(m) or (n)
hereof.

          (w) The Notes shall have additional terms and conditions as set forth in, and shall be
substantially in the form of, Annex A attached hereto, with such modifications thereto as may be
approved by the authorized officer or officers executing the same.

          (x) The Trustee shall be the trustee for or on behalf of the Holders of the Notes.

 

 

     B. The undersigned hereby approve the sale of $500,000,000 aggregate principal amount of Notes
by the Company to the Underwriters listed in Schedule I to that certain Underwriting Agreement
dated June 29, 2009, and in accordance with and pursuant to the terms thereof at a net purchase
price to the Company of 99.359% of the principal amount thereof plus accrued interest, if any from
July 2, 2009, and with an initial price to the public of 99.959% of the principal amount thereof
plus accrued interest, if any from July 2, 2009.

     The Indenture, as supplemented by this Officers’ Certificate, is in all respects ratified and
confirmed, and this Officers’ Certificate shall be deemed part of the Indenture in the manner and
to the extent herein and therein provided.

     This Officers’ Certificate may be executed in one or more counterparts, including, without
limitation, facsimile counterparts, each of which so executed shall be deemed to be an original,
and shall together constitute one and the same Officers’ Certificate.

     THIS OFFICERS’ CERTIFICATE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
NEW YORK WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

(Signature page follows)

 

 

     IN WITNESS WHEREOF, the undersigned have hereunto executed this Officers’ Certificate as of
the 2nd day of July, 2009.

	 	 	 	 	 
	 	 	 
	 	                        /s/ William T. Giles
 	 
	 	Name:  	William T. Giles 	 
	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 
	 	 	 
	 	                        /s/ Charlie Pleas, III
 	 
	 	Name:  	Charlie Pleas, III 	 
	 	Title:  	Senior Vice President and Controller

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