Document:

exv10w10

 

EXHIBIT 10.10

TAX SHARING AGREEMENT

BY AND BETWEEN

HILLENBRAND INDUSTRIES, INC.

AND

BATESVILLE HOLDINGS, INC.

DATED AS OF MARCH 31, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	 	 	2	 
	 
	 	Section 1.1	 	Definitions	 	 	2	 
	 
	 	Section 1.2	 	References to Time	 	 	14	 
	 
	 	Section 1.3	 	Effective Time	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II RESPONSIBILITY FOR PAYMENT OF TAXES	 	 	14	 
	 
	 	Section 2.1	 	Income Taxes and Other Taxes	 	 	14	 
	 
	 	Section 2.2	 	Allocation of Taxes	 	 	15	 
	 
	 	Section 2.3	 	Timing of Payments of Taxes	 	 	18	 
	 
	 	Section 2.4	 	Credit or Refund of Estimated Payments by SpinCo	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III PREPARATION AND FILING OF TAX RETURNS	 	 	18	 
	 
	 	Section 3.1	 	Preparation of Returns	 	 	18	 
	 
	 	Section 3.2	 	Procedures Relating to the Preparation and Filing of Tax Returns	 	 	19	 
	 
	 	Section 3.3	 	Tax Information Exchange and Tax Services	 	 	20	 
	 
	 	Section 3.4	 	Reasonable External Costs and Expenses	 	 	20	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV REFUNDS, CARRYBACKS AND AMENDED TAX RETURNS	 	 	21	 
	 
	 	Section 4.1	 	Refunds	 	 	21	 
	 
	 	Section 4.2	 	Carrybacks	 	 	21	 
	 
	 	Section 4.3	 	Amended Tax Returns	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V DISTRIBUTION TAXES	 	 	22	 
	 
	 	Section 5.1	 	Representations	 	 	22	 
	 
	 	Section 5.2	 	Covenants	 	 	23	 
	 
	 	Section 5.3	 	Supplemental Rulings and Restrictions on SpinCo	 	 	25	 
	 
	 	Section 5.4	 	Liability for Undertaking Certain Actions	 	 	26	 
	 
	 	Section 5.5	 	Liability Not Attributable to Fault	 	 	27	 
	 
	 	Section 5.6	 	Cooperation	 	 	27	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI INDEMNIFICATION	 	 	27	 
	 
	 	Section 6.1	 	Indemnification Obligations of RemainCo	 	 	27	 
	 
	 	Section 6.2	 	Indemnification Obligations of SpinCo	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII PAYMENTS	 	 	28	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1	 	Payments	 	 	28	 
	 
	 	Section 7.2	 	Treatment of Payments made Pursuant to Tax Sharing Agreement	 	 	29	 
	 
	 	Section 7.3	 	Treatment of Payments made Pursuant to Distribution Agreement and	 	 	 	 
	 
	 	 	 	Judgment Sharing Agreement	 	 	30	 
	 
	 	Section 7.4	 	Payments Net of Tax Benefit Actually Realized	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII AUDITS	 	 	30	 
	 
	 	Section 8.1	 	Notice	 	 	30	 
	 
	 	Section 8.2	 	Audits	 	 	30	 
	 
	 	Section 8.3	 	Payment of Audit Amounts	 	 	34	 
	 
	 	Section 8.4	 	Correlative Adjustments	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX ALLOCATION OF TAX ATTRIBUTES AND OTHER TAX MATTERS	 	 	37	 
	 
	 	Section 9.1	 	Allocation of Tax Attributes	 	 	37	 
	 
	 	Section 9.2	 	Third Party Tax Indemnities and Benefits	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X DEFAULTED AMOUNTS	 	 	37	 
	 
	 	Section 10.1	 	General	 	 	37	 
	 
	 	Section 10.2	 	Subsidiary Funding	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI ARBITRATION; DISPUTE RESOLUTION	 	 	38	 
	 
	 	Section 11.1	 	Agreement to Arbitrate	 	 	38	 
	 
	 	Section 11.2	 	Escalation	 	 	38	 
	 
	 	Section 11.3	 	Demand for Arbitration	 	 	39	 
	 
	 	Section 11.4	 	Arbitrators	 	 	39	 
	 
	 	Section 11.5	 	Hearings	 	 	40	 
	 
	 	Section 11.6	 	Discovery and Certain Other Matters	 	 	40	 
	 
	 	Section 11.7	 	Certain Additional Matters	 	 	41	 
	 
	 	Section 11.8	 	Continuity of Service and Performance	 	 	42	 
	 
	 	Section 11.9	 	Law Governing Arbitration Procedures	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	 	42	 
	 
	 	Section 12.1	 	Complete Agreement	 	 	42	 
	 
	 	Section 12.2	 	Other Agreements	 	 	42	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.3	 	Expenses	 	 	42	 
	 
	 	Section 12.4	 	Governing Law	 	 	42	 
	 
	 	Section 12.5	 	Notices	 	 	42	 
	 
	 	Section 12.6	 	Amendment and Modification	 	 	43	 
	 
	 	Section 12.7	 	Successors and Assigns: No Third Party Beneficiaries	 	 	43	 
	 
	 	Section 12.8	 	Counterparts	 	 	43	 
	 
	 	Section 12.9	 	Interpretation	 	 	43	 
	 
	 	Section 12.10	 	Legal Enforceability	 	 	43	 
	 
	 	Section 12.11	 	Performance Standard	 	 	44	 
	 
	 	Section 12.12	 	Authority	 	 	44	 
	 
	 	Section 12.13	 	Joint Authorship	 	 	44	 
	 
	 	Section 12.14	 	References; Interpretation	 	 	44	 

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LISTING OF ATTACHMENTS

AND ATTACHED SCHEDULES

	 	 	 
	 
	 	 
	Schedule 1.1(c)(1)

	 	Adjustments that Form Part of the Adjusted Allocation Method
	 
	 	 
	Schedule 1.1(c)(2)

	 	Example of Tax Liability Calculation using the Adjusted Allocation Method
	 
	 	 
	Schedule 1.1(oo)

	 	List of taxes included in definition of Income Taxes
	 
	 	 
	Schedule 1.1(ttt)

	 	List of Qualified Tax Counsel
	 
	 	 
	Schedule 3.1(c)

	 	Schedule of Specifically Identified Tax Returns and Tax Return Preparer
	 
	 	 
	Schedule 8.2(c)(iv-1)

	 	Schedule of Audit Exceptions
	 
	 	 
	Schedule 8.2(c)(iv-2)

	 	Schedule of Illustrative List of Documents
	 
	 	 
	Schedule 8.2(g-1)

	 	Form of Power of Attorney
	 
	 	 
	Schedule 8.2(g-2)

	 	Activities Requiring Representative Signature
	 
	 	 
	Schedule 9.1

	 	Listing and Allocation of Tax Attributes

 

 

TAX SHARING AGREEMENT

     THIS TAX SHARING AGREEMENT (this “Agreement”) is made and entered into as of the
31st day of March, 2008, by and between Hillenbrand Industries, Inc., an Indiana
corporation (“RemainCo”), and Batesville Holdings, Inc., an Indiana corporation (“SpinCo”). Each
of RemainCo and SpinCo is sometimes referred to herein as a “Party” and collectively, as the
“Parties”.

WITNESSETH:

     WHEREAS, as of the date of this Agreement, RemainCo and its direct and indirect domestic
corporate Subsidiaries (including SpinCo and its Subsidiaries) are members of RemainCo Consolidated
Return Group;

     WHEREAS, RemainCo, acting through its direct and indirect Subsidiaries, currently conducts two
major businesses: (i) the Medical Technology Business and (ii) the Death Care Business;

     WHEREAS, the Board of Directors of RemainCo has determined that it is appropriate, desirable
and in the best interests of RemainCo and its shareholders to separate the Medical Technology
Business from the Death Care Business;

     WHEREAS, in order to effect such separation, the Board of Directors of RemainCo has determined
that it is appropriate, and desirable and in the best interest of RemainCo and its shareholders for
RemainCo and certain of its Subsidiaries to enter into a series of transactions whereby, among
other things, (i) RemainCo will cause the Medical Technology Subgroup to restructure through a
series of internal spin-offs so that various entities within the Medical Technology Subgroup will
be owned directly by RemainCo prior to the Distribution, (ii) RemainCo will cause the separation of
the Canadian medical technology and death care operations (collectively, (i) and (ii) are referred
to as the “Restructuring”), (iii) RemainCo will contribute the Death Care Business and other assets
to SpinCo, (iv) RemainCo will distribute its entire ownership interest in SpinCo through a pro-rata
distribution of all of the outstanding shares of SpinCo Common Stock then owned by RemainCo to the
holders of RemainCo Common Stock (the “Spin”) (collectively, (iii) and the Spin are referred to
as the “Distribution”) pursuant to the terms and subject to the conditions of the Distribution
Agreement dated as of March 14, 2008 (the “Distribution Agreement”) (the Restructuring and the
Distribution may be referred to collectively as the “Plan of Separation”); and (v) the shareholders
of RemainCo and SpinCo will vote to change the name of SpinCo to Hillenbrand, Inc. and the name of
RemainCo to Hill-Rom Holdings, Inc.;

     WHEREAS, the Restructuring is intended to qualify as tax-free under Sections 351, 355 and 368
of the Internal Revenue Code of 1986, as amended (the “Code”);

     WHEREAS, the Distribution is intended to qualify as tax-free under Sections 355 and 368 of the
Code;

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     WHEREAS, subject to Section 8.2, it is the intention of the Parties that all pre-separation
U.S. federal, state, and local audits will be managed, controlled and conducted by RemainCo’s, U.S.
Federal and State Audit Groups currently located in Batesville, Indiana (the “RemainCo Audit Team”)
except as otherwise provided in this Agreement;

     WHEREAS, as a result of and upon the Restructuring and the Distribution, SpinCo and the
Subsidiaries of SpinCo will cease to be members of RemainCo affiliated group after the
Restructuring and Distribution; and

     WHEREAS, in connection with the Plan of Separation, the Parties desire to set forth their
agreement on the rights and obligations with respect to handling and allocating Taxes and related
matters.

     NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and
provisions of this Agreement, each of the Parties mutually covenant and agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     Section 1.1 Definitions. As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

          (a) “AAA” has the meaning set forth in Section 11.4.

          (b) “Action” means any claim, suit, action, mediation, arbitration, inquiry,
investigation or other proceeding of any nature (whether criminal, civil, legislative,
administrative, regulatory, prosecutorial or otherwise) by or before any mediator, arbitrator or
Governmental Authority.

          (c) “Adjusted Allocation Method” shall mean the method used to allocate, as between
RemainCo and SpinCo, each Party’s share of a Federal Income Tax Liability with respect to the
RemainCo Consolidated Return Group, which shall be determined by allocating to SpinCo the Tax that
would result had SpinCo and its Affiliates computed their Taxes on a separate return basis, while
the liability of RemainCo and its Affiliates shall be the total Tax liability less what is
allocated to SpinCo and its Affiliates. For purposes of this definition, the following shall
apply: (i) eliminations for the Consolidated Return Group shall be handled in a manner consistent
with past practices, which include the following practices: (A) topside/corporate overhead
eliminations of SpinCo and its Affiliates are not included in SpinCo (by way of example, and not
limitation, corporate overhead that is eliminated as part of the consolidated return and
consolidated financial statements of RemainCo shall be charged to SpinCo and its Affiliates and
taken into account in computing the Taxes of SpinCo and its Affiliates on a separate return basis),
(B) domestic eliminations of SpinCo and its Affiliates are included as part of SpinCo, and (C)
foreign eliminations of SpinCo and its Affiliates are included as part of SpinCo; and (ii) in
addition to the adjustments that are applied normally in computing tax liability as if a separate
return for the year had been prepared, the additional adjustments set forth on Schedule 1.1(c)(1)
shall apply. Attached hereto as Schedule 1.1(c)(2) is an example of

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how the parties intend for SpinCo to calculate its Tax liability in accordance with the
Adjusted Allocation Method.

          (d) “Affiliate” means with respect to any specified Person, a Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such specified Person; provided, however, that for purposes of this Agreement, no
member of either Group and no officer or director of any member of either Group shall be deemed to
be an affiliate of any member of the other Group. Batesville Casket UK Limited is an affiliate of
SpinCo. The Batesville Casket Canada division of Hillenbrand Industries Canada Limited is an
affiliate of SpinCo. The Hill-Rom Canada division of Hillenbrand Industries Canada Limited is an
affiliate of RemainCo.

          (e) “Agreement” has the meaning set forth in the preamble to this Agreement.

          (f) “Applicable Deadline” has the meaning set forth in Section 11.3(b).

          (g) “Arbitration Act” means the United States Arbitration Act, 9 U.S.C. §§1-16, as the
same may be amended from time to time.

          (h) “Arbitration Demand Date” has the meaning set forth in Section 11.3(a).

          (i) “Arbitration Demand Notice” has the meaning set forth in Section 11.3(a).

          (j) “Audit” means any audit (including a determination of the status of qualified and
non-qualified employee benefit plans), assessment of Taxes, other examination by or on behalf of
any Taxing Authority (including notices), proceeding, or appeal of such a proceeding relating to
Taxes, whether administrative or judicial, including proceedings relating to competent authority
determinations initiated by a Party or any of its Subsidiaries.

          (k) “Audit External Advisor” has the meaning set forth in Section 8.2(c)(iii).

          (l) “Audit Control Party” means the Party responsible for administering and
controlling an Audit pursuant to Section 8.2(a), as may be changed from time to time in accordance
with Section 8.2(d).

          (m) “Audit Representative” means the Chief Tax Officer of each Party (or such other
officer of a Party that may be designated by that Party’s Chief Financial Officer from time to
time).

          (n) “Bankruptcy” means, with respect to a Person:

               (i) the filing of an application by the Person for, or a consent to, the appointment of a
trustee of the Person’s assets;

               (ii) the filing by the Person of a voluntary petition in bankruptcy or the filing of a
pleading in any court of record admitting in writing the Person’s inability to pay debts as they
come due;

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               (iii) a general assignment by such Person for the benefit of creditors;

               (iv) the filing by the Person of an answer admitting the material allegations of, or the
Person’s consenting to, or defaulting in answering a bankruptcy petition filed against the Person
in any bankruptcy proceeding; or

               (v) the entry of an order, judgment or decree by any court of competent jurisdiction
adjudicating the Person bankrupt or appointing a trustee, custodian, receiver or liquidator of such
Person’s assets, which order, judgment or decree continues unstayed and in effect for any period of
sixty (60) days.

          (o) “Base Rate” means the rate which Citibank, N.A. (or any successor thereto or other
major money center commercial bank agreed to by the Parties) announces from time to time as its
base lending rate, as in effect from time to time.

          (p) “Bracewell” means Bracewell & Giuliani LLP.

          (q) “Business Day” means any day other than a Saturday, a Sunday or a day on which
banking institutions located in the State of Indiana are authorized or obligated by law or
executive order to close.

          (r) “Canadian Restructuring Taxes” shall mean the Taxes that are incurred in Canada
and ultimately paid to the Canadian Taxing Authorities with respect to the reorganization and
transfer of the Death Care Business that is conducted in Canada and with such reorganization and
transfer generally described in steps 10 to 20 on pages 6 to 7 and steps 25, 26 and 31 on page 8 of
the IRS Ruling.

          (s) “Cash Acquisition Merger” means a merger of a newly-formed Subsidiary of SpinCo
with a corporation, limited liability company, limited partnership, general partnership or joint
venture (in each case, not previously owned, directly or indirectly, by SpinCo) solely for cash
pursuant to which SpinCo acquires such corporation, limited liability company, limited partnership,
general partnership or joint venture and no Equity Security of SpinCo or any SpinCo Affiliates are
issued, sold, redeemed or acquired, directly or indirectly.

          (t) “Code” has the meaning referred to in the recitals to this Agreement.

          (u) “Combined Jurisdiction” means, for any taxable period, any jurisdiction in which
SpinCo or a SpinCo Affiliate is included in a consolidated, combined, unitary return with RemainCo
or a RemainCo Affiliate for state Income Tax or Other Tax purposes.

          (v) “Combined Return” means any combined, unitary, or consolidated return or report
used in the determination of a state Income Tax or Other Tax liability.

          (w) “Combined State Taxes” means the Income Taxes or Other Taxes shown on a Combined
Return that is filed in a Combined Jurisdiction for any Pre-Distribution Tax Period or for any
Straddle Period, as the case may be.

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          (x) “Correlative Adjustment” means a disallowance of an item of deduction, loss or
credit which cannot be carried forward (or an increase of an item of income or gain) that is
related or attributable to the Assets of a Party or that Party’s Affiliates, that is included in a
Tax Return for a Pre-Distribution Tax Period or the portion of a Straddle Period ending on the
Distribution Date, and that results in a correlative increase of an item of deduction, loss or
credit (or reduction of an item of income or gain) with respect to another Party or that Party’s
Affiliates with respect to such period or periods.

          (y) “Correlative Detriment” has the meaning set forth in Section 4.1(b).

          (z) “Death Care Business” means the manufacture and/or sale of funeral service
products, including burial caskets, cremation caskets, containers and urns, selection room display
fixturing, and other personalization and memorialization products, including the SpinCo Business.

          (aa) “Distribution” or “Distributions” has the meaning set forth in the
recitals to this Agreement and includes the distributions described in the IRS Ruling and the Tax
Representation Letters.

          (bb) “Distribution Agreement” has the meaning set forth in the recitals to this
Agreement.

          (cc) “Distribution Date” means the date on which the Spin is effectuated pursuant to
the Distribution Agreement.

          (dd) “Distribution Taxes” mean any and all Taxes (a) required to be paid by or imposed
on a Party or any of its Affiliates resulting from, or directly arising in connection with, the
failure of the Distributions to qualify under Section 355(a) or (c) of the Code or, if applicable,
Section 361(c) of the Code, or the application of Section 355(e) of the Code to the Distributions
(or the failure to qualify under or the application of corresponding provisions of the Laws of
other jurisdictions); or (b) required to be paid by or imposed on a Party or any of its Affiliates
resulting from, or directly arising in connection with, the failure of any transaction undertaken
in connection with or pursuant to the Plan of Separation to qualify for tax-free treatment, in
whole or in part, but, with respect to both (a) and (b) above, only to the extent that such
qualification or tax-free treatment was claimed by one or more of the Parties on a Tax Return for a
Pre-Distribution Tax Period or a Straddle Period.

          (ee) “Due Date” means the date (taking into account all valid extensions) upon which a
Tax Return is required to be filed with or Taxes are required to be paid to a Taxing Authority,
whichever is applicable.

          (ff) “Effective Time” in lieu means 12:01 a.m. on the date next following the
Distribution Date.

          (gg) “Employee Matters Agreement” means the Employee Matters Agreement dated as of
March 31, 2008 among RemainCo and SpinCo.

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          (hh) “Equity Security” means stock or other equity securities treated as stock for Tax
purposes, or option, warrants, rights, convertible debts, or any other instruments or security that
affords any Person the right, whether conditional or otherwise, to acquire stock or to be paid an
amount determined by reference to the value of the stock.

          (ii) “Escalation Notice” has the meaning set forth in Section 11.2(a).

          (jj) “Fault” has the meaning set forth in Section 5.4(c).

          (kk) “Federal Income Tax Liability” means any liability imposed under Subtitle A of
the Code and any related interest and any penalties, additions to such Tax, or additional amounts
imposed with respect thereto.

          (ll) “Final Determination” means the final resolution of liability for any Tax for any
taxable period, by or as a result of:

               (i) a Final Determination as defined in the Judgment Sharing Agreement;

               (ii) a final settlement with the IRS, a closing agreement or accepted offer in compromise
under Sections 7121 or 7122 of the Code, or a comparable agreement under the Laws of other
jurisdictions, which resolves the liability for the Taxes addressed in such agreement for any
taxable period;

               (iii) any allowance of a refund or credit in respect of an overpayment of Tax, but only after
the expiration of all periods during which such refund may be recovered by the jurisdiction
imposing the Tax; or

               (iv) any other final disposition, including by reason of the expiration of the applicable
statute of limitations.

          (mm) “Governmental Authority” means any federal, state, local, foreign or
international court, government, department, commission, board, bureau or agency, authority
(including, but not limited to, any central bank or taxing authority) or instrumentality
(including, but not limited to, any court, tribunal or grand jury) exercising executive,
prosecutorial, legislative, judicial, regulatory or administrative functions of or pertaining to
government or any other regulatory, administrative or governmental authority

          (nn) “Group” means RemainCo Group or SpinCo Group, as the context requires.

          (oo) “Income Taxes” mean:

               (i) all Taxes based upon, measured by, or calculated with respect to (i) net income or profits
(including, but not limited to, any capital gains, minimum tax or any Tax on items of tax
preference, but not including sales, use, real, or personal property, gross or net receipts, value
added, excise, leasing, transfer or similar Taxes), or (ii) multiple bases (including,

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but not limited to, corporate franchise, doing business and occupation Taxes) if one or more
bases upon which such Tax is determined is described in clause (oo)(i) above;

               (ii) all U.S., state, local or non-U.S. franchise Taxes;

               (iii) all U.S. state and local Taxes or non-U.S. Taxes not otherwise included in (a) or (b)
above that are listed on Schedule 1.1(oo); and

               (iv) including in the case of each of (i), (ii), and (iii) above, any related interest and any
penalties, additions to such Tax or additional amounts imposed with respect thereto by any Taxing
Authority.

          (pp) “Income Tax Returns” mean all Tax Returns that relate to Income Taxes.

          (qq) “Indemnified Party” means the Party which is or may be entitled pursuant to this
Agreement to receive any payments (including reimbursement for Taxes or costs and expenses) from
another Party or Parties to this Agreement.

          (rr) “Indemnifying Party” means the Party which is or may be required pursuant to this
Agreement to make indemnification or other payments (including reimbursement for Taxes and costs
and expenses) to another Party to this Agreement.

          (ss) “IRS” means the United States Internal Revenue Service or any successor thereto,
including, but not limited to its agents, representatives, and attorneys.

          (tt) “IRS Ruling” means the IRS PLR #131586-07 dated November 7, 2007 issued to
RemainCo, and any supplemental materials submitted to the IRS relating thereto, and any other
separate or supplemental IRS private letter rulings received by RemainCo with respect to the Plan
of Separation and the IRS Ruling.

          (uu) “Judgment Sharing Agreement” means the Judgment Sharing Agreement dated as of
March 14, 2008 among RemainCo, SpinCo and Batesville Casket Company, Inc.

          (vv) “Law” means any foreign, federal, state or local statute, ordinance, regulation,
code, license, permit, authorization, approval, consent, common law, legal doctrine, order,
judgment, decree, injunction or requirement of any Governmental Authority or any order or award of
any arbitrator, now or hereafter in effect.

          (ww) “LIBOR” means the British Bankers Association London Interbank Offered Rate, as
it is published by Reuters, or any successor to or substitute for such service providing rate
quotations of the British Bankers Association London Interbank Offered Rate, at approximately 11:00
a.m., London time. In the event that such British Bankers Association London Interbank Offered Rate
is not available at such time for any reason, then LIBOR shall be the rate at which dollar deposits
of $10 million and for a maturity of one (1) week are offered by the principal London office of
Citibank in the London Interbank market at approximately 11:00 a.m., London time.

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          (xx) “Medical Technology Business” means the manufacture or sale of non-implantable
devices or any other existing business line conducted by Hill-Rom, Inc. and its Subsidiaries
immediately prior to the Distribution (including medical technologies and related services for the
health care industry, such as, for example, patients support systems, non-invasive therapeutic
products for a variety of acute and chronic medical conditions, medical equipment rentals and
workflow technology solutions).

          (yy) “Medical Technology Subgroup” is comprised of, inter alia, Hill-Rom, Inc.,
Hill-Rom Manufacturing, Inc., Hill-Rom Services, Inc., Hill-Rom Company Inc., and Allen Medical
Systems, Inc.

          (zz) “No-Fault Sharing Percentages” shall mean the RemainCo No Fault Percentage and
the SpinCo No Fault Percentage.

          (aaa) “Non-Income Tax Returns” means all Tax Returns other than Income Tax Returns.

          (bbb) “Non-Preparing Party” has the meaning set forth in Section 3.3.

          (ccc) “Other Agreements” has the meaning ascribed to such term in the Distribution
Agreement.

          (ddd) “Other Taxes” means all Taxes other than Income Taxes, including (but not
limited to) transfer, sales, use, payroll, and unemployment Taxes.

          (eee) “Participating Party” has the meaning set forth in Section 8.2(c)(i).

          (fff) “Party” has the meaning set forth in the preamble to this Agreement.

          (ggg) “Person” means an individual, a limited or general partnership, a joint venture,
a corporation, a trust, a limited liability company, an unincorporated organization, or a
Governmental Authority.

          (hhh) “Plan of Separation” has the meaning set forth in the recitals to this
Agreement.

          (iii) “Post-Distribution Tax Audit” means any Audit with respect to a Tax Return or
any Tax that may be owing with respect to a Post-Distribution Tax Period.

          (jjj) “Post-Distribution Tax Returns” means, collectively, all Tax Returns required to
be filed by a Party or its Affiliates for a Post-Distribution Tax Period.

          (kkk) “Post-Distribution Tax Period” means a Tax year beginning and ending after the
Distribution Date.

          (lll) “Pre-Distribution Non-Income or Non-U.S. Tax Audit” means any Audit related to
any (a) U.S. federal, state, or local Taxes other than Income Taxes, or (b) any non-U.S. Taxes, in
each case with respect to a Tax Return filed, or allegedly required to be filed, for any

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Pre-Distribution Tax Period or Straddle Period; provided, however, this term shall not include
any Audit that is a Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution Payroll Tax
Audit, or a Pre-Distribution RemainCo Qualified Plan Tax Audit.

          (mmm) “Pre-Distribution Payroll Tax Audit” means any Audit for a Pre-Distribution Tax
Period or Straddle Period of payroll taxes.

          (nnn) “Pre-Distribution Qualified Plan Tax Audit” means any Audit for a
Pre-Distribution Tax Period or Straddle Period of RemainCo with respect to a qualified plan that is
the subject of the Employee Matters Agreement.

          (ooo) “Pre-Distribution Tax Period” means a Tax year beginning and ending on or before
the Distribution Date.

          (ppp) “Pre-Distribution Tax Returns” means, collectively, all Tax Returns required to
be filed by a Party or its Affiliates for a Pre-Distribution Tax Period.

          (qqq) “Pre-Distribution Transfer Pricing Tax Audit” means any Audit of any Income
Taxes related to or arising from (a) an intercompany transfer pricing adjustment under Section 482
of the Code and the Treasury Regulations thereunder, or an analogous provision under U.S. federal,
state and local or non-U.S. Law, or (b) a determination that the activities of a Party or its
Affiliates give rise to a “permanent establishment,” presence, or nexus in any jurisdiction that
could subject it to Income Tax there, in each of (a) and (b), for any Pre-Distribution Tax Period
or Straddle Period.

          (rrr) “Pre-Distribution U.S. Income Tax Audit” means any Audit of any U.S. federal,
state, or local Income Tax Return filed, or allegedly required to be filed, for any
Pre-Distribution Tax Period or Straddle Period; provided, however this term shall not include any
Audit that is a Pre-Distribution Transfer Pricing Tax Audit, a Pre-Distribution Qualified Plan Tax
Audit, or a Pre-Distribution Payroll Tax Audit.

          (sss) “Preparing Party” has the meaning set forth in Section 3.2(a).

          (ttt) “Qualified Tax Counsel” means any of the law firms listed on Schedule 1.1(ttt).

          (uuu) “Refund” means any refund of Taxes (including any overpayment of Taxes for a
period ending on or prior to the Distribution Date that can be refunded or, alternatively, applied
to future Taxes payable), including any interest paid on or with respect to such refund of Taxes;
provided, however, the amount of the refund of Taxes shall be net of any Taxes imposed by any
Taxing Authority on the receipt of the refund.

          (vvv) “RemainCo” has the meaning set forth in the recitals to this Agreement.

          (www) “RemainCo Audit Team” has the meaning referred to in the recitals to this
Agreement.

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          (xxx) “RemainCo Consolidated Return Group” means the affiliated group of corporations
(within the meaning of Section 1504 of the Code) of which RemainCo is the common parent prior to
the Distribution Date.

          (yyy) “RemainCo Group” means RemainCo and the Subsidiaries of RemainCo other than
members of SpinCo Group.

          (zzz) “RemainCo No Fault Percentage” shall have the meaning and the percentage set
forth in Section 5.5.

          (aaaa) “RemainCo Pension Plan Assets” shall have the meaning set forth in the Employee
Matters Agreement.

          (bbbb) “RemainCo Sharing Percentage” shall mean seventy-nine percent (79%).

          (cccc) “Requesting
Party” shall have the meaning set forth in Section 5.4.

          (dddd) “Restriction Period” means the period beginning at the Effective Time and
ending on the two-year anniversary of the day after the Distribution Date.

          (eeee) “Restructuring” has the meaning set forth in the recitals to this Agreement.

          (ffff) “Restructuring Taxes” shall mean any Tax, other than a Distribution Tax, that
is incurred by a Party as a result of a transaction or asset transfer occurring on or before the
Distribution Date that was in connection with or in contemplation of the Distribution of SpinCo and
that was undertaken to accomplish the Restructuring, which for purposes of this definition shall
include the transactions described and set forth as steps one (1) to thirty-three (33) on pages
five to nine of the IRS Ruling.

          (gggg) “Risk Affiliate” shall mean Sycamore Insurance Company, a South Carolina
corporation that was merged into RemainCo effective 9/30/2007, and any other company that has
existed within the RemainCo Consolidated Return Group prior to the Distribution Date and that was
in the same line of business as Sycamore Insurance Company.

          (hhhh) “Rules” has the meaning set forth in Section 11.5.

          (iiii) “Ruling Documents” means the IRS Ruling request, the attachments and exhibits
thereto, and any additional or supplemental information submitted to the IRS in connection with the
IRS Ruling request.

          (jjjj) “Ruling Request” means the IRS private letter ruling request filed by RemainCo
with the IRS dated July 6, 2007, and the various supplements to such request pertaining to certain
Tax aspects of the Restructuring and Distribution, all of which resulted in the IRS Ruling.

          (kkkk) “Separate Return” means any state return or report used in the determination of
a state Income Tax or Other Tax liability that is not a Combined Return.

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          (llll) “Separate State Taxes” means the Income Taxes or Other Taxes shown on a
Separate Return.

          (mmmm)“Spin” has the meaning set forth in the recitals of this Agreement.

          (nnnn) “SpinCo” has the meaning set forth in the recitals in this Agreement.

          (oooo) “SpinCo Business” means all business and operations (including related joint
ventures and alliances) of any member of the SpinCo Group immediately prior to the Distribution.

          (pppp) “SpinCo Combined State Tax Liability” means, with respect to any taxable period
(or portion thereof) in the Pre-Distribution Period, an amount of Combined State Taxes that are
allocated to SpinCo pursuant to Section 2.2.

          (qqqq) “SpinCo Group” means SpinCo and the Subsidiaries of SpinCo after the
Restructuring and the Distribution.

          (rrrr) “SpinCo No Fault Percentage” shall have the meaning and percentage set forth in
Section 5.5.

          (ssss) “SpinCo Sharing Percentage” shall mean twenty-one percent (21%).

          (tttt) “Straddle Income Tax Returns” mean, collectively, all Income Tax Returns
required to be filed by a Party and its Affiliates for a Straddle Period.

          (uuuu) “Straddle Period Tax Audit” means any Audit with respect to a Tax Return or any
Tax that may be owing with respect to a Straddle Period.

          (vvvv) “Straddle Period” means a Tax year beginning before the Distribution Date and
ending after the Distribution Date.

          (wwww) “Subsidiary” means with respect to any specified Person, any corporation or
other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or
indirectly, more than 50% of the stock or other equity interest entitled to vote on the election of
members to the board of directors or similar governing body, in each case including its successors
or assigns; provided, however, that for purposes of this Agreement, no member of the SpinCo Group
shall be deemed to be a Subsidiary of any member of the RemainCo Group.

          (xxxx) “Supplemental Ruling” means any IRS private letter ruling issued in connection
with the Restructuring and/or Distribution other than the IRS Ruling Request.

          (yyyy) “Supplemental Ruling Documents” means the Supplemental Ruling Request, the
attachments and exhibits thereto, and any additional or supplemental information submitted to the
IRS in connection with the Supplemental Ruling.

          (zzzz) “Tax” or “Taxes” whether used in the form of a noun or adjective, means
taxes on or measured by income, franchise, gross receipts, sales, use, excise, payroll, personal

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property, real property, ad-valorem, value-added, leasing, leasing use or other taxes, levies,
imposts, duties, charges, or withholdings of any nature. Whenever the term “Tax” or “Taxes” is used
it shall include penalties, fines, additions to tax and interest thereon.

          (aaaaa) “Tax Attributes” mean for U.S. federal, state, local, and non-U.S. Income Tax
purposes, earnings and profits, tax basis, net operating and capital loss carryovers or carrybacks,
alternative minimum Tax credit carryovers or carrybacks, general business credit carryovers or
carrybacks, income tax credits or credits against income tax, disqualified interest and excess
limitation carryovers or carrybacks, overall foreign losses, research and experimentation credit
base periods, and all other items that are determined or computed on an affiliated group basis (as
defined in Section 1504(a) of the Code determined without regard to the exclusion contained in
Section 1504(b)(3) of the Code), or similar Tax items determined under applicable Tax law,
including the tax attributes listed on Schedule 9.1.

          (bbbbb) “Tax Benefit Actually Realized” means with respect to a Party and its
Subsidiaries the actual reduction in Taxes due and payable determined only with respect to the
referenced taxable year or any prior taxable year, and is equal to the sum of:

                    (i) the excess (if any) of (i) the amount of Taxes that the Party and its Subsidiaries would
have owed in such taxable years (excluding the effect of any carryforwards of net operating or
capital losses or Tax credits to such year) had there been no payment or event giving rise to such
a determination, over (ii) the amount of Taxes actually paid by the Party and its Subsidiaries in
such taxable years (excluding the effect of any carryforwards of net operating losses or capital
losses or Tax credits to such year) after taking into account such payment or determination; and

                    (ii) the excess (if any) of (i) the amount of the Refund actually received by the Party and
its Subsidiaries with respect to such taxable years or any carryback year (excluding the effect of
any carryforwards of net operating losses or capital losses or Tax credits to such year) as a
result of the carryback of Tax items to prior taxable years after taking into account such payment
or determination, over (ii) the amount of the Refund that the Party and its Subsidiaries would have
been entitled to receive with respect to such taxable years or any carryback year (excluding the
effect of any carryforwards of net operating losses or capital losses or Tax credits to such year)
as a result of the carryback of Tax items to prior taxable years had there been no payment or event
giving rise to such a determination.

The Tax Benefit Actually Realized shall be computed based on the actual U.S. or
non-U.S. income tax rates applicable to the Party and its Subsidiaries during the
applicable tax year; provided, however, that if the Tax Benefit Actually Realized
includes a U.S. federal Income Tax benefit attributable to the deduction of interest
included in Taxes, then the Parties shall assume that the applicable U.S. federal,
state and local Income Tax rate is thirty-eight percent (38%) in lieu of the
applicable Party’s and its Subsidiaries’ actual U.S. federal, state and local Income
Tax rate.

          (ccccc) “Tax-Free Status” means the qualification of a Distribution or any other
transaction contemplated by the IRS Ruling or any Tax Opinion as a transaction in which gain or

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loss is not recognized, in whole or in part, and no amount is included in income, including by
reason of Distribution Taxes, for U.S. federal, state, and local income tax purposes (other than
intercompany items, excess loss accounts or other items required to be taken into account pursuant
to Treasury Regulations promulgated under Section 1502 of the Code).

          (ddddd) “Tax Group” means any U.S federal, state, local or non-U.S. affiliated,
consolidated, combined, unitary or similar group that files a Tax Return or Tax Returns.

          (eeeee) “Tax Opinions” mean certain Tax opinions and supporting memoranda rendered by
Bracewell to RemainCo or any of its Affiliates in connection with the Plan of Separation.

          (fffff) “Tax Package” means the information and documents in the possession of a Party
or its Affiliates that are reasonably necessary for the preparation of a Tax Return by the other
Party or its Affiliates, assembled in all material respects consistent with past Tax reporting
practices of RemainCo and its Affiliates.

          (ggggg) “Tax Representation Letter” means any letter containing certain
representations and covenants issued by RemainCo, any of its Affiliates or any of its shareholders
to Bracewell or RemainCo in connection with the Tax Opinions.

          (hhhhh) “Tax Returns” mean any return, report, certificate, form or similar statement
or document (including any related or supporting information or schedule attached thereto and any
information return, amended tax return, claim for refund, or declaration of estimated tax) required
to be supplied to, or filed with, a Taxing Authority in connection with the determination,
assessment or collection of any Tax or the administration of any Laws, regulations, or
administrative requirements relating to any Taxes.

          (iiiii) “Taxing Authority” means any governmental authority or any subdivision,
agency, commission, or authority thereof or any quasi-governmental or private body having
jurisdiction over the assessment, determination, collection, or imposition of any Tax (including
the IRS).

          (jjjjj) “Treasury Regulations” mean the final and temporary (but not proposed) income
tax and administrative regulations promulgated under the Code, as such regulations may be amended
from time to time (including corresponding provisions of succeeding regulations).

          (kkkkk) “Unanticipated Taxes” shall have the meaning set forth in Section 2.1(c).

          (lllll) “Unqualified Tax Opinion” means an unqualified “should” level opinion of
Qualified Tax Counsel, which opinion is reasonably acceptable to each of the Parties and upon which
each of the Parties may rely to confirm that a transaction (or transactions) will not result in
Distribution Taxes, including confirmation in accordance with Circular 230 or otherwise that may be
provided for purposes of avoiding any applicable penalties or additions to Tax.

          (mmmmm) “U.S.” means the United States.

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     Section 1.2 References to Time. All references in this Agreement to times of the day
shall be to Batesville, Indiana time, except as otherwise specifically provided herein.

     Section 1.3 Effective Time.

          (a) The Parties acknowledge that the Plan of Separation contemplates a series of interrelated
and intermediate internal transactions undertaken preparatory to and in contemplation of the
Distributions that must be completed prior to the Effective Time in order to align, reorganize and
properly capitalize the Medical Technology Business and the Death Care Business.

          (b) Notwithstanding that these interrelated and intermediate internal transactions must be
given effect prior to the Spin, the agreements contained herein, including, but not limited to, the
manner in which Taxes are shared amongst the Parties, shall be effective no earlier than and only
upon the Effective Time.

ARTICLE II

RESPONSIBILITY FOR PAYMENT OF TAXES

     Section 2.1 Income Taxes and Other Taxes.

          (a) SpinCo shall be responsible for the payment of all Income Taxes and Other Taxes:

               (i) for any Pre-Distribution Tax Period allocated to SpinCo and its domestic Affiliates in
accordance with Section 2.2, if such Tax is attributable to the Death Care Business;

               (ii) for any Pre-Distribution Tax Period allocated to SpinCo and its foreign Affiliates in
accordance with Section 2.2, if such Tax is attributable to the Death Care Business;

               (iii) for any Pre-Distribution Tax Period allocable to SpinCo and its Affiliates in accordance
with Section 2.2 in which a Combined Return is being filed in a Combined Jurisdiction that includes
a SpinCo Combined State Tax Liability if such Tax is attributable to the Death Care Business;

               (iv) for any Straddle Period allocated to SpinCo and its domestic Affiliates in accordance
with Section 2.2 if such Tax is attributable to the Death Care Business;

               (v) for any Straddle Period allocated to SpinCo and its foreign Affiliates in accordance with
Section 2.2, if such tax is attributable to the Death Care Business;

               (vi) for any Post-Distribution Tax Periods of SpinCo Group;

               (vii) with respect to any Restructuring Taxes allocated to SpinCo under Section 2.2;

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               (viii) imposed under Treasury Regulation Section 1.1502-6 or under any comparable or similar
provision of state, local or foreign laws or regulations on SpinCo or its Affiliates as a result of
such company being a member of a consolidated combined, or unitary group with RemainCo or any
RemainCo Subsidiary during any Tax period to the extent attributable to the Death Care Business;
and

               (ix) any Taxes that arise by Audit or a Final Determination of an Audit and which are
specifically allocated to SpinCo under Section 8.3.

          (b) RemainCo shall be responsible for the payment of all Income Taxes and Other Taxes which
are not specifically the obligation of SpinCo under Section 2.1(a), above.

          (c) In connection with the allocation of Taxes that are made under Section 2.2, or under
Section 8.3 if such Tax arises from a Final Determination on Audit, it has been the intent and
desire of the Parties to identify all Taxes and situations giving rise to Taxes of which they are
aware and provide specific provisions in this Agreement for the allocation of the payment or
liability of such Taxes. Notwithstanding the efforts of the Parties to do so, it is understood by
the Parties that there may be circumstances giving rise to Tax that the Parties did not understand
or contemplate in the course of preparing this Agreement (the “Unanticipated Taxes”). In the event
there are Unanticipated Taxes, the Parties agree that the amount of such Unanticipated Taxes shall
be calculated and each Party’s share allocated in accordance with the various principles that
underlie the provisions of Section 2.2 and that the Parties shall in good faith work together to
mutually determine a fair allocation for the payment of such Unanticipated Taxes as between the
Parties.

     Section 2.2 Allocation of Taxes.

          (a) SpinCo or any of its Affiliates shall, to the extent permitted by Applicable Law, treat
the day after the Distribution Date as the first day of its taxable period under applicable United
States Federal, state, local or foreign Tax laws and shall file any elections necessary or
appropriate to such treatment; provided that this Section 2.2(a) shall not be construed to require
RemainCo to change its taxable year.

          (b) Unless to do so specifically conflicts with the allocations set forth after this Section
2.2(b), transactions occurring, or actions taken, on the Distribution Date but after the
Distribution outside the ordinary course of business by, or with respect to, SpinCo or any of its
Affiliates shall be deemed subject to the “next day rule” of Treasury Regulation Section
1.1502-76(b)(1)(ii)(B) (and under any comparable or similar provision under state, local or foreign
laws or regulations, provided that if there is no comparable or similar provision under state,
local or foreign laws or regulations, then the transaction will be deemed subject to the “next day
rule” of Treasury Regulation Section 1.1502-76(b)(1)(ii)(B)) and as such shall for purposes of this
Agreement be treated (and consistently reported by the Parties) as occurring in a Post-Distribution
Tax Period of SpinCo or an SpinCo Affiliate, as appropriate.

          (c) Any Income Taxes for a Straddle Period with respect to SpinCo and/or its Affiliates (or
entities in which SpinCo or its Affiliates have an ownership interest) shall, for purposes of this
Agreement, be determined, unless otherwise provided in this Agreement, using a

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closing of the books and records of SpinCo and its Affiliates as of the close of business on
the Distribution Date, provided that exemptions, allowances or deductions that are
calculated on an annual basis, and not on a closing of the books method (including, but not limited
to, depreciation and amortization deductions) shall be allocated between the period ending on and
including the Distribution Date and the period beginning after the Distribution Date based on the
number of days for the portion of the Straddle Period ending on and including the Distribution
Date, on the one hand, and the number of days for the portion of the Straddle Period beginning
after the Distribution date, on the other hand. To the extent possible, (a) Other Taxes shall be
determined by means of a closing of the books and (b) the methodology used to allocate such Taxes
for the Pre-Distribution Tax Periods shall be used to allocate Taxes for Straddle Periods

          (d) The Federal Income Tax Liability for the RemainCo Consolidated Return Group for the
Pre-Distribution Tax Period ending September 30, 2007 and for the Straddle Period from October 1,
2007 until the Distribution Date shall be allocated between RemainCo and SpinCo pursuant to the
Adjusted Allocation Method. Any Federal Income Tax Liability for the RemainCo Consolidated Return
Group for a Pre-Distribution Tax Period other than the Pre-Distribution Tax Periods or portions
thereof described in the preceding sentence shall be allocated to RemainCo.

          (e) The Combined State Taxes with respect to any Combined Return for any Pre-Distribution Tax
Period ended September 30, 2007 or any Straddle Period shall be allocated between RemainCo and
SpinCo as follows: (i) the Combined State Taxes on such Combined Return, before applying any
credits, shall be allocated among the RemainCo Group and SpinCo Group based on the relative
proportion of the total income of each Group, before apportionment compared to the total income of
both Groups before apportionment (or, if the Combined State Taxes on such Combined Return are based
on something other than income, the relative proportion of the total tax base of each Group, before
apportionment, compared to the total tax base of both Groups before apportionment), less (ii) the
credits applicable to each Group. For example, if the tax base for a particular Combined Return is
federal taxable income, the total federal taxable income for RemainCo, SpinCo and their Affiliates
included on the Combined Return, before apportionment is $100,000,000, of which $40,000,000 is
attributable to the SpinCo Group, forty percent (40%) of the Combined State Taxes with respect to
such Combined Return, before application of credits, shall be attributed to the SpinCo Group. If
there are credits on the Combined Return attributable to the SpinCo Group, the amount of the
Combined State Taxes attributed to the SpinCo Group shall be further reduced by the amount of such
credits.

          (f) Any Separate State Taxes with respect to any Separate Return for any Pre-Distribution Tax
Period or any Straddle Period shall be allocated to the Party as to which it or its Affiliate had
the legal obligation under applicable law for filing such Separate Return.

          (g) Any foreign Taxes for any Pre-Distribution Tax Period or any Straddle Period shall be
allocated to the Party or its Affiliate whose business operations resulted in the foreign Tax, with
such determination to be made in a manner consistent with the Adjusted Allocation Approach..

          (h) Each Party shall be responsible for the Income Taxes or Other Taxes attributable to it or
its Affiliates for a Post-Distribution Period.

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          (i) For the Pre-Distribution Tax Period ending September 30, 2007 and any portion of a
Straddle Period ending on the Distribution Date, Payroll and unemployment Taxes shall be allocated
among the Parties based on which Party or its Affiliate, pursuant to the practices within the
RemainCo Consolidated Return Group, had the obligation for the payment of the employment expense of
the employees who performed the services that are the subject of the payroll and unemployment Tax
as determined on a basis consistent with the Parties’ past practices. Any taxes that arise as a
result of an Audit shall be allocated on the same basis.

          (j) Sales Taxes, use Taxes and similar Taxes shall be allocated to the Party that sold, or
whose Affiliates sold, the property or rendered the services that generated the Tax.

          (k) Except for any Canadian Restructuring Taxes that may be incurred and paid, any other
Restructuring Taxes shall be allocated to RemainCo using the RemainCo No Fault Percentage and to
SpinCo using the SpinCo No Fault Percentage. If there are Canadian Restructuring Taxes that are
incurred and paid, SpinCo shall pay such Taxes to the extent that SpinCo is able to realize a
current or deferred tax benefit from the income or gain realized that resulted in the payment of
such Taxes. The amount of the current or deferred tax benefit shall be valued using a net present
value and for purposes of this sentence, any determination of net present value shall be determined
using a discount rate equal to the US Treasury rate for securities with a term in nature similar to
the deferred tax benefit.. To the extent the Canadian Restructuring Taxes exceed the net present
value of the current and future benefit available to SpinCo, the excess portion shall be allocated
between and paid by RemainCo and SpinCo as Restructuring Taxes are otherwise allocated and paid
above; Other than with respect to the treatment and payment of Canadian Restructuring Tax
pursuant to the preceding sentence, to the extent that any Tax is included in the definition of
Restructuring Taxes and is otherwise allocated differently under this Section 2.2, the allocation
applicable to Restructuring Taxes hereunder shall control to the extent such Tax or portion thereof
is included in the definition of Restructuring Taxes.

          (l) Any Taxes that result from the transfer from RemainCo to SpinCo of liability loss reserves
with respect to the reserves attributable and carried on the tax books of a Risk Affiliate that are
being transferred to SpinCo with respect to the Distribution shall be borne and paid by SpinCo,
provided that SpinCo is entitled to claim a deduction in computing its Taxes for any payments in
satisfaction of liabilities attributable or related to such liability loss reserves.

          (m) Taxes other than those specified above that are primarily attributable to a Party or its
Affiliates shall be allocated to such Party. For example, personal property Taxes shall be
allocated to the Party that owned or whose Affiliates owned the property that generated the Tax.

          (n) Any other Income Taxes or Other Taxes that are not specifically allocated to either
RemainCo or SpinCo pursuant to any of the provisions above shall be allocated as between RemainCo
and SpinCo in a manner that is consistent with the preceding principles of allocation.

     Notwithstanding the specific allocations of Taxes set forth above, the following shall
control:

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               (i) If there is a conflict between the above provisions of this Section 2.2 with respect to a
Party’s responsibility for Taxes and the allocation of liability for Taxes that arise upon a Final
Determination of an Audit as provided in Sections 8.3(c) through (f), the provisions of Sections
8.3 (c) through (f) shall control;

               (ii) The tax deductions, tax benefits and allocation of Taxes as between RemainCo and SpinCo
for the executive deferred compensation liabilities of RemainCo that are being assumed by SpinCo
pursuant to the terms and provisions of the Employee Matters Agreement shall be governed by
Schedule 2.03(e) to the Distribution Agreement; and

               (iii) Except as expressly provided in this Section 2.2 and Article VIII, SpinCo shall have no
liability for Taxes for periods ending prior to September 30, 2007.

     Section 2.3 Timing of Payments of Taxes. All Taxes required to be paid or caused to
be paid by a Party to a Taxing Authority pursuant to this Article II shall be paid or caused to be
paid by such Party prior to the Due Date of such Taxes. All amounts required to be paid by one
Party to another Party (including obligations arising under Article VII) pursuant to this Article
II shall be paid or caused to be paid by such first Party to such other Party in accordance with
Article VII.

     Section 2.4 Credit or Refund of Estimated Payments by SpinCo. As of the Distribution
Date, in accordance with the normal practices and procedures of the RemainCo Consolidated Return
Group, SpinCo and its Affiliates will have made certain advances and payments with respect to Taxes
for the Pre-Distribution Tax Period ending September 30, 2007 and the portion of any Straddle
Period up to the Distribution Date that are attributable to SpinCo and its Affiliates and the Death
Care Business. To the extent any such payments have been made, such payments shall be credited to
the amounts owing pursuant to this Article II and to the extent there has been an overpayment with
respect to payments under this Article II, such overpayment shall be refunded or applied with
respect to the other amounts owing under this Article II.

ARTICLE III

PREPARATION AND FILING OF TAX RETURNS

     Section 3.1 Preparation of Returns.

          (a) RemainCo shall prepare and file:

               (i) All Tax Returns for RemainCo and its Affiliates for Pre-Distribution Tax Periods for all
jurisdictions;

               (ii) All Tax Returns for SpinCo and its Affiliates for all Pre-Distribution Tax Periods that
pertain only to SpinCo and its Affiliates;

               (iii) All Tax Returns for RemainCo and its Affiliates for Post-Distribution Tax Periods;

               (iv) All Tax Returns for the RemainCo Consolidated Return Group and RemainCo Group and all
Combined Return in any Combined Jurisdiction;

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               (v) All Tax Returns for RemainCo and its Affiliates (including SpinCo and its Affiliates) for
Straddle Periods;

               (vi) All Separate Returns for RemainCo and its Affiliates; and

               (vii) All other Tax Returns with respect to either RemainCo and its Affiliates or SpinCo and
its Affiliates that are not specifically the responsibility of RemainCo or SpinCo to prepare under
Sections 3.1(a) or 3.1(b), hereof.

          (b) SpinCo shall prepare and file:

               (i) All Tax Returns for SpinCo and its Affiliates for any Straddle Period that pertains only
to SpinCo and its Affiliates;

               (ii) All Separate Returns for SpinCo and its Affiliates; and

               (iii) All Tax Returns for SpinCo and its Affiliates for all Post-Distribution Tax Periods.

          (c) Notwithstanding anything herein to the contrary with respect to the preparation of Tax
Returns under Section 3.1(a) or 3.1(b), the specifically identified Tax Returns described on
Schedule 3.1(c) attached hereto, if any, shall be prepared by the Party specifically identified as
having the responsibility for the preparation of such Tax Return on Schedule 3.1(c).

     Section 3.2 Procedures Relating to the Preparation and Filing of Tax Returns.

          (a) RemainCo, with respect to those Tax Returns prepared by RemainCo described in Section
3.2(a), SpinCo, with respect to those Tax Returns prepared by SpinCo described in Sections 3.2(b)
(in each case, the “Preparing Party”) shall prepare and file or cause to be prepared or filed such
Tax Returns in a manner consistent with past Tax reporting practices of the Parties and their
Affiliates. The Preparing Party shall provide the other Party with a draft of each Income Tax
Return with respect to a Pre-Distribution Tax Period or a Straddle Period at least 30 days prior to
the due date for filing thereof, if such draft shows Tax for which the other Party is responsible
pursuant to this Agreement. The other Party shall have the right to review and approve (which
approval shall not be unreasonably withheld) each such Income Tax Return within 7 days following
its receipt thereof. The Preparing Party and the other Party shall attempt in good faith mutually
to resolve any disagreements regarding such Income Tax Returns prior to the due date for filing
thereof; provided, that the failure to resolve all disagreements prior to such date shall not
relieve the Preparing Party of its obligation to file (or caused to be filed) any such Income Tax
Return.

          (b) Unless otherwise required by the applicable laws, regulations, rulings or other
requirements of a Taxing Authority, the Parties hereby agree to prepare and file all Tax Returns,
and to take all other actions, in a manner consistent with this Agreement, Distribution Agreement,
Tax Ruling, Ruling Documents, Tax Opinion, or Representation Letter. All Tax Returns shall be
filed on a timely basis (taking into account applicable extensions) by the Party responsible for
filing such Tax Returns under this Agreement. This provision shall not restrict the right of any
Party or its Affiliates to file such disclosure statements as they deem appropriate

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or necessary to comply with applicable laws or regulations with respect to required
disclosures on a Tax Return.

          (c) Within 30 days after the determination of any SpinCo Tax Attributes by RemainCo, RemainCo
shall notify SpinCo of the Tax Attributes associated with SpinCo and each of its Affiliates, and
the Tax bases of the assets and liabilities transferred to SpinCo in connection with the
Restructuring and Distribution. Any changes in such Tax Attributes or Tax bases arising thereafter
by reason of an Audit of which RemainCo is the Audit Control Party shall be communicated by
RemainCo to SpinCo within 30 days after such change is made or there is a Final Determination of
such change.

     Section 3.3 Tax Information Exchange and Tax Services. In connection with each Tax
Return required under this Agreement to be prepared by the Preparing Party designated to prepare
the Tax Return under Section 3.1 after the date hereof, upon the Preparing Party providing written
notice to the other Party who is not the Preparing Party (the “Non-Preparing Party”), the
Non-Preparing Party shall provide the Preparing Party, no later than 90 days after such written
request from Preparing Party, a Tax Package for the purpose of preparing such Tax Return.
Non-Preparing Party shall timely furnish to Preparing Party such additional information and
documents as Preparing Party may reasonably request. The Parties acknowledge that such information
may include materials regarding accounting, accounting records, income and expense, costs and cost
production, background, research and development, comparables, marketing, suppliers and customers,
and other information regarding the business of the Non-Preparing Party related to the Tax
treatment of such business. Upon request by Preparing Party, an appropriate officer of
Non-Preparing Party shall provide written certification that, to such officer’s best knowledge and
belief, all information provided pursuant to this Section 3.3(a) is accurate and complete in all
material respects. Non-Preparing Party shall also make available employees and officers of
Non-Preparing Party and its Affiliates as Preparing Party may reasonably request in connection with
such Tax Return preparation by Preparing Party. Non-Preparing Party shall be responsible for the
internal costs (without reimbursement from Preparing Party) of furnishing to Preparing Party the
Tax Package, additional information, documents and employees and officers provided for in this
Section 3.3(a). Preparing Party shall provide the relevant information contained in the Tax
Package in the format required by the IRS (or analogous state, local, or foreign agency) for
electronic filing.

     Section 3.4 Reasonable External Costs and Expenses. To the extent a Party incurs
reasonable costs and expenses with a third party for purposes of complying with the provisions of
this Article III, including, without limitation, the preparation of the Tax Returns to be prepared
thereunder, such costs and expenses shall be borne in the same proportion as the Taxes being
reported on the Tax Return to which such costs and expenses relate. In the event that the Tax
Return being prepared is not for the purpose of reporting Taxes but is rather an informational Tax
Return, the Party charged with the responsibility of preparing such Tax Return shall bear the cost
and expense of preparing and filing such Tax Return.

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ARTICLE IV

REFUNDS, CARRYBACKS AND

AMENDED TAX RETURNS

     Section 4.1 Refunds.

          (a) Each Party shall be entitled to Refunds that relate to Taxes for which it is responsible
under Article II of this Agreement.

          (b) Notwithstanding Section 4.1(a), to the extent a claim for a Refund is reasonably likely to
result in a Correlative Detriment to one or more of the Parties, any such Refund that is received
by one or more of the Parties shall, and only to the extent thereof, be paid proportionately to the
Parties that are reasonably likely to realize such detriment. A “Correlative Detriment” is an
increase in a current year Tax payment obligation by a Party or a reduction in a current year Tax
benefit of a Party not otherwise entitled to a Refund under the prior sentence that occurs as a
direct result of the Tax position that is the basis for the Refund or the claim therefor. By way
of example, if SpinCo were to generate a net operating loss for a Post-Distribution Tax Period and
such loss was carried back to a Pre-Distribution Tax Period and resulted in a Refund, but at the
same time reduced the amount of a foreign tax credit available to RemainCo for such
Pre-Distribution Tax Period, RemainCo would have a Correlative Detriment for which it is entitled
to receive payment unless such tax credit could be carried forward by RemainCo.

          (c) Any Refund or portion thereof to which a Party is entitled pursuant to this Section 4.1
that is received or deemed to have been received as described herein by another Party, shall be
paid by such other Party to such first Party in immediately available funds in accordance with
Article VII. To the extent a Party applies or causes to be applied an overpayment of Taxes as a
credit toward or a reduction in Taxes otherwise payable (or a Taxing Authority requires such
application in lieu of a Refund) and such Refund, if received, would have been payable by such
Party to another Party (or Parties) pursuant to this Section 4.1, such Party shall be deemed to
have actually received a Refund to the extent thereof on the date on which the overpayment is
applied to reduce Taxes otherwise payable.

     Section 4.2 Carrybacks. Each of the Parties shall be permitted (but not required) to
carryback (or to cause its Affiliates to carryback) a Tax Attribute realized in a Post-Distribution
Tax Period or a Straddle Period to a Pre-Distribution Tax Period or a Straddle Period only if such
carryback cannot result in one or more other Parties (or their Affiliates) being liable for
additional Taxes. If a carryback could result in one or more Parties (or their Affiliates) being
liable for additional Taxes, such carryback shall be permitted only if all of such Parties consent
to such carryback, which consent shall not be unreasonably withheld. Any Party that has claimed
(or caused one or more of its Affiliates to claim) a Tax Attribute carryback shall be liable for
any Taxes that arise as a result of the subsequent adjustment, if any, to the carryback claim
unless the carryback results in a Refund that is shared pursuant to Section 4.1(a) or results in a
Correlative Detriment pursuant to Section 4.1(b).

     Section 4.3 Amended Tax Returns.

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          (a) Notwithstanding Sections 3.1 and 3.2, a Party or its Subsidiary that is entitled to file
an amended Tax Return for a Pre-Distribution Tax Period or a Straddle Period for members of its Tax
Group shall be permitted to prepare and file an amended Tax Return at its own cost and expense;
provided, however, that (i) such amended Tax Return shall be prepared in a manner (x) consistent
with the past practice of the Parties and their Affiliates unless otherwise modified by a Final
Determination or required by applicable Law; and (y) consistent with (and the Parties and their
Affiliates shall not take any position inconsistent with) the IRS Ruling, the Tax Representation
Letters, and the Tax Opinions; and (ii) if such amended Tax Return could result in one or more
other Parties becoming responsible for a payment of Taxes pursuant to Article II or a payment to a
Party pursuant to Article VIII, such amended Tax Return shall be permitted only if the consent of
such other Parties is obtained. The consent of such other Parties shall not be withheld
unreasonably and shall be deemed to be obtained in the event that a Party or its Subsidiary is
required to file an amended Tax Return as a result of an Audit adjustment.

          (b) A Party or its Subsidiary that is entitled to file an amended Tax Return for a
Post-Distribution Tax Period shall be permitted to do so without the consent of any Party.

          (c) A Party that is permitted (or whose Subsidiary is permitted) to file an amended Tax Return
shall not be relieved of any liability for payments pursuant to this Agreement notwithstanding that
another Party consented thereto.

ARTICLE V

DISTRIBUTION TAXES

     Section 5.1 Representations.

          (a) Ruling Documents. SpinCo hereby represents and warrants that (i) it has examined the
Ruling Documents (including, without limitation, the representations to the extent that they relate
to the plans, proposals, intentions, and policies of SpinCo, SpinCo Affiliates, or the Death Care
Business), and (ii) to the extent there are references to SpinCo, SpinCo Affiliates, or the Death
Care Business, the facts presented and the representations made therein are true, correct, and
complete.

          (b) Tax-Free Status. SpinCo hereby represents and warrants that it has no plan or intention
of taking any action, or failing or omitting to take any action, or knows of any circumstance, that
could reasonably be expected to (i) cause the Restructuring and/or the Distribution not to have
Tax-Free Status or (ii) cause any representation or factual statement made in this Agreement, the
Distribution Agreement, the IRS Ruling, the Tax Opinion, or the Representation Letter to be untrue
in a manner that would have an adverse effect on the Tax-Free Status of the Restructuring and/or
the Distribution.

          (c) Reciprocal Representations and Warranties as to RemainCo. With respect to the
representations and warranties made in Sections 5.1(a) and (b), RemainCo makes the same
representations as to RemainCo, the RemainCo Affiliates and the Medical Technology Business.

          (d) Plan or Series of Related Transactions. SpinCo hereby represents and warrants that, to
the knowledge of SpinCo and the management of SpinCo, neither the Restructuring nor the
Distribution are part of a plan (or series of related transactions) pursuant to

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which a Person will acquire stock representing a fifty-percent or greater interest (within the
meaning of Sections 355(d) and (e) of the Code) in SpinCo or any successor to SpinCo.

     Section 5.2 Covenants.

          (a) Actions Consistent with Representations and Covenants. SpinCo shall not (and shall not
permit any of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit
permission to any other person to) take any action, and SpinCo shall not (and shall not permit any
of its Affiliates or grant or permit any of its Affiliates to grant implicit or explicit permission
to any other person to) fail to take any action, where such action or failure to act would be
inconsistent with or cause to be untrue any material, information, covenant, or representation in
this Agreement, the Distribution Agreement, the Other Agreements, the Tax Ruling, the Ruling
Documents (including, without limitation, the representations to the extent that they relate to the
plans, proposals, intentions, and policies of SpinCo, SpinCo Affiliates, or the Death Care
Business), the Tax Opinion, or the Representation Letter.

          (b) Preservation of Tax-Free Status. SpinCo shall not take any action (including, but not
limited to, any cessation, transfer or disposition of all or any portion of the Death Care
Business; payment of extraordinary dividends to shareholders; and acquisitions or issuances of
stock) or permit any SpinCo Affiliate to take any such action, and SpinCo shall not fail to take
any such action or permit any SpinCo Affiliate to fail to take any such action where such action or
failure to act would have an adverse effect on the Tax-Free Status of the Restructuring and/or the
Distribution.

          (c) Reciprocal Covenants by RemainCo. With respect to the covenants contained in Sections
5.2(a) and (b), RemainCo obligates itself to the same covenants as if they pertained to RemainCo,
the RemainCo Affiliates and the Medical Technology Business.

          (d) Sales Issuances and Redemptions of Equity Securities. Until the first day after the
Restriction Period, neither SpinCo nor any SpinCo Affiliate shall, or shall agree to, sell or
otherwise issue to any Person, or redeem or otherwise acquire from any Person, any Equity
Securities of SpinCo or any SpinCo Affiliate; provided, however, that (i) SpinCo
may repurchase such Equity Securities to the extent that such repurchases meet the requirements of
Section 4.05(1)(6) of IRS Revenue Procedure 96-30 (as in effect prior to its modification by IRS
Revenue Procedure 2003-48), (ii) SpinCo may issue such Equity Securities to the extent such
issuances satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s
performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an
employer) of Treasury Regulation Section 1.355-7(d), and (iii) SpinCo may issue Equity Securities
provided that such issuance does not, individually or when aggregated with other issuances and any
transactions occurring in the four-year period beginning on the date which is two years before the
Distribution Date, and with any other transaction which is part of a plan or series of related
transactions (within the meaning of Section 355(e) of the Code) that includes the Distribution
(other than issuances of Equity Securities described in clause (ii) above), result in one or more
Persons acquiring, directly or indirectly, (as determined under Section 355(e) of the Code, taking
into account applicable constructive ownership rules) stock representing a 40% or greater interest,
by vote or value, in SpinCo (or any successor thereto).

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          (e) Tender Offers; Other Business Transactions. Until the first day after the Restriction
Period, neither SpinCo nor SpinCo Affiliate shall (i) solicit any Person to make a tender offer
for, or otherwise acquire or sell, the Equity Securities of SpinCo, (ii) participate in or support
any unsolicited tender offer for, or other acquisition, issuance or disposition of, the Equity
Securities of SpinCo, or (iii) approve or otherwise permit any proposed business combination or
merger or any transaction which, in the case of clauses (i), (ii) or (iii), individually or when
aggregated with any other transactions occurring within the four-year period beginning on the date
which is two years before the Distribution Date, and with any other transaction which is part of a
plan or series of related transactions (within the meaning of Section 355(e) of the Code) that
includes the Distribution (other than issuances of Equity Securities described in Section
5.2(d)(ii) above), results in one or more Persons acquiring, directly or indirectly, (as determined
under Section 355(e) of the Code, taking into account applicable constructive ownership rules)
stock representing a 40% or greater interest, by vote or value, in SpinCo (or any successor
thereto). In addition, neither SpinCo nor any SpinCo Affiliate shall at any time, whether before or
subsequent to the expiration of the Restriction Period, engage in any action described in clauses
(i), (ii) or (iii) of the preceding sentence if it is pursuant to an arrangement negotiated (in
whole or in part) prior to the first anniversary of the Distribution, even if at the time of the
Distribution or thereafter such action is subject to various conditions.

          (f) Dispositions of Assets. Until the first day after the Restriction Period, neither SpinCo
nor any SpinCo Affiliate shall, or shall agree to, sell, transfer, or otherwise dispose of or agree
to dispose of assets (including, for such purpose, any shares of capital stock of a subsidiary and
any transaction treated for tax purposes as a sale, transfer or disposition) that, in the
aggregate, constitute more than 50% of the gross assets of SpinCo, nor shall SpinCo or any SpinCo
Affiliate sell, transfer, or otherwise dispose of or agree to dispose of assets (including, for
such purpose, any shares of capital stock of a subsidiary and any transaction treated for tax
purposes as a sale, transfer or disposition) that, in the aggregate, constitute more than 50% of
the consolidated gross assets of SpinCo Group. The foregoing sentence shall not apply to sales,
transfers, or dispositions of assets in the ordinary course of business. The percentages of gross
assets or consolidated gross assets of SpinCo or SpinCo Group, as the case may be, sold,
transferred, or otherwise disposed of, shall be based on the fair market value of the gross assets
of SpinCo and the members of SpinCo Group as of the Distribution Date. For purposes of this
Section 5.2(f), a merger of SpinCo or one of its subsidiaries with and into any Person (other than
SpinCo or one of its subsidiaries) shall constitute a disposition of all of the assets of SpinCo or
such subsidiary.

          (g) Liquidations Mergers, Reorganizations. Until the first day after the Restriction Period,
neither SpinCo nor its subsidiaries shall, or shall agree to, voluntarily dissolve or liquidate or
engage in any merger (except for a Cash Acquisition Merger), consolidation or other reorganization;
provided, however, mergers of direct or indirect wholly-owned subsidiaries of
SpinCo solely with and into SpinCo or with other direct or indirect wholly-owned subsidiaries of
SpinCo, and liquidations of SpinCo’s subsidiaries, are not subject to this Section 5.2(g) to the
extent not inconsistent with the Tax-Free Status of the Restructuring and the Distribution;
provided further that nothing in this Section 5.2(g) shall prohibit any merger involving
SpinCo or an SpinCo Affiliate not otherwise prohibited by Section 5.2(e).

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          (h) Changes to Voting Rights. Until the first day after the Restriction Period, neither
SpinCo nor any SpinCo Affiliate shall amend its certificate of incorporation (or other
organizational documents), or take any other action, whether through a shareholder vote or
otherwise, affecting the relative voting rights of its separate classes of stock (including,
without limitation, through the conversion of one class of stock into another class of stock), but
only to the extent such change, if treated as an issuance of Equity Securities, would be prohibited
by Section 5.2(d).

          (i) Permitted Transactions. Notwithstanding the restrictions otherwise imposed by Sections
5.2(d) through 5.2(h), during the Restriction Period, SpinCo may (i) approve, participate in,
support or otherwise permit a proposed business combination or transaction that would otherwise
breach the covenant set forth in Section 5.2(d), (ii) sell or otherwise dispose of the assets of
SpinCo Group in a transaction that would otherwise breach the covenant set forth in Section 5.2(e),
(iii) merge SpinCo or any SpinCo Affiliate with another entity without regard to which party is the
surviving entity in a transaction that would otherwise breach the covenant set forth in Section
5.2(g), (iv) issue Equity Securities of SpinCo or any SpinCo Affiliate in a transaction that would
otherwise breach the covenant set forth in Section 5.2(d), or (v) take any action affecting the
relative voting rights of the separate classes of stock of SpinCo or any SpinCo Affiliate that
would otherwise breach the covenant set forth in Section 5.2(h), if and only if such transaction or
action would not violate Section 5.2(a) or Section 5.2(b) and Section 5.2(j) is satisfied.

          (j) Supplemental Ruling: Tax Opinion. Prior to entering into any agreement contemplating a
transaction or action during the Restriction Period described in clauses (i), (ii), (iii), (iv) or
(v) of Section 5.2(i): (A) SpinCo shall request that RemainCo obtain a Supplemental Ruling in
accordance with Section 5.3 of this Agreement to the effect that such transaction will not affect
the Tax-Free Status of the Restructuring and the Distribution and RemainCo shall have received such
a Supplemental Ruling in form and substance satisfactory to RemainCo in its sole and absolute
discretion or (B) SpinCo shall provide RemainCo with an Unqualified Tax Opinion from Qualified Tax
Counsel or another nationally recognized independent tax advisor in form and substance satisfactory
to RemainCo in its reasonable discretion (and in determining whether an opinion is satisfactory,
RemainCo may consider, among other factors, the appropriateness of any underlying assumptions and
management’s representations if used as a basis for the opinion) providing that such transaction or
action will not affect the Tax-Free Status of the Restructuring and the Distribution.

     Section 5.3 Supplemental Rulings and Restrictions on SpinCo.

          (a) Supplemental Rulings at RemainCo Request. RemainCo shall have the right to obtain a
Supplemental Ruling in its sole and absolute discretion. If RemainCo determines to obtain a
Supplemental Ruling, SpinCo shall (and shall cause each SpinCo Affiliate to) cooperate with
RemainCo and take any and all actions reasonably requested by RemainCo in connection with obtaining
the Supplemental Ruling (including, without limitation, by making any representation or providing
any materials or information requested by any Tax Authority; provided that SpinCo shall not
be required to make (or cause any SpinCo Affiliate to make) any representation that is inconsistent
with historical facts or as to future matters or events over which it has no control) or to take
any action that reasonably could be expected to be adverse to its

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business, its financial condition or its assets. RemainCo shall reimburse SpinCo for all
reasonable costs and expenses incurred by SpinCo or its Affiliates in obtaining a Supplemental
Ruling requested by RemainCo within ten (10) Business Days after receiving an invoice from SpinCo
therefor. In connection with obtaining a Supplemental Ruling pursuant to this Section 5.3(a), (i)
RemainCo shall keep SpinCo informed in a timely manner of all material actions taken or proposed to
be taken by RemainCo in connection therewith; (ii) RemainCo shall (a) reasonably in advance of the
submission of any Supplemental Ruling Request, provide SpinCo with a draft copy thereof, (b)
reasonably consider SpinCo ‘s comments on such draft copy, and (c) provide SpinCo with a final copy
of any Supplemental Ruling Request; and (iii) RemainCo shall provide SpinCo with notice reasonably
in advance of, and SpinCo shall have the right to attend, any formally scheduled meetings with any
Taxing Authority (subject to the approval of the Taxing Authority) that relate to such Supplemental
Ruling.

          (b) Supplemental Rulings at SpinCo’s Request. RemainCo agrees that at the reasonable
request of SpinCo pursuant to Section 5.2(j), RemainCo shall (and shall cause each RemainCo
Affiliate to) cooperate with SpinCo and use its reasonable best efforts to seek to obtain, as
expeditiously as possible, a Supplemental Ruling from the IRS for the purpose of confirming
compliance on the part of SpinCo or any SpinCo Affiliate with its obligations under Section 5.2 of
this Agreement. Further, in no event shall RemainCo be required to file any Supplemental Ruling
Request under this Section 5.3(b) unless SpinCo represents that it has reviewed the Supplemental
Ruling Documents and all information and representations, if any, relating to SpinCo or any SpinCo
Affiliate, contained in the Supplemental Ruling Documents are true, correct and complete in all
material respects. SpinCo shall reimburse RemainCo for all reasonable costs and expenses incurred
by RemainCo or its Affiliates in obtaining a Supplemental Ruling requested by SpinCo within ten
(10) Business Days after receiving an invoice from RemainCo therefor. SpinCo hereby agrees that
RemainCo shall have sole and exclusive control over the process of obtaining a Supplemental Ruling,
and that only RemainCo shall apply for a Supplemental Ruling. In connection with obtaining a
Supplemental Ruling pursuant to this Section 5.3(b), (i) RemainCo shall keep SpinCo informed in a
timely manner of all material actions taken or proposed to be taken by RemainCo in connection
therewith; (ii) RemainCo shall (a) reasonably in advance of the submission of any Supplemental
Ruling Request, provide SpinCo with a draft copy thereof, (b) reasonably consider SpinCo’s comments
on such draft copy, and (c) provide SpinCo with a final copy of any Supplemental Ruling Request;
and (iii) RemainCo shall provide SpinCo with notice reasonably in advance of, and SpinCo shall have
the right to attend, any formally scheduled meetings with any Tax Authority (subject to the
approval of the Tax Authority) that relate to such Supplemental Ruling.

     Section 5.4 Liability for Undertaking Certain Actions.

          (a) Notwithstanding anything in this Agreement to the contrary, SpinCo shall be responsible
for, and shall indemnify and hold harmless RemainCo and each of its Affiliates from and against any
liability for Taxes that are attributable to or result from any act or failure to act by SpinCo or
any SpinCo Affiliate, which action or failure to act breaches any of its representations or
covenants contained in this Article V hereof (without regard to the exceptions or provisos set
forth in such provisions but expressly excluding the representations and covenants by RemainCo in
Sections 5.1(c) and 5.2(c) hereof), expressly including, for this purpose, any

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Permitted Transactions and any act or failure to act that breaches Section 5.2(d) or 5.2(i)
regardless of whether such act or failure to act is permitted by Section 5.2(c) through 5.2(h).

          (b) Notwithstanding anything in this Agreement to the contrary, RemainCo shall be responsible
for, and shall indemnify and hold harmless SpinCo and each of its Affiliates from and against any
liability for Taxes that are attributable to or result from any Fault of RemainCo or any RemainCo
Affiliate.

          (c) “Fault” shall mean the breach of a representation, warranty or covenant under this Article
V by a Party or any of its Affiliates to the extent applicable to or made by such Party or any of
its Affiliates.

     Section 5.5 Liability Not Attributable to Fault. If the Distribution Taxes are not
attributable to the Fault of SpinCo or any SpinCo Affiliate or the Fault of RemainCo or any
RemainCo Affiliate, the responsibility for such Distribution Taxes shall be shared by RemainCo and
SpinCo in proportion to the relative market values of RemainCo and SpinCo derived from taking the
average traded stock price for each of RemainCo and SpinCo for the five (5) trading days subsequent
to the Distribution Date, with RemainCo to bear a percentage equal to its market value divided by
the combined market values of both RemainCo and SpinCo (the “RemainCo No Fault Percentage”) and
SpinCo to bear a percentage equal to its market value divided by the combined market values of both
RemainCo and SpinCo (the “SpinCo No Fault Percentage”).

     Section 5.6 Cooperation.

          (a) Without limiting the prohibition set forth in Section 5.3(c), until the first day after
the Restriction Period, SpinCo shall furnish RemainCo with a copy of any ruling request that SpinCo
or any SpinCo Affiliate may file with the IRS or any other Taxing Authority and any opinion
received that in any respect relates to, or otherwise reasonably could be expected to have any
effect on, the Tax-Free Status of any of the Restructuring and the Distribution.

          (b) RemainCo shall reasonably cooperate with SpinCo in connection with any request by SpinCo
for an Unqualified Tax Opinion pursuant to Section 5.2(j) and shall use its reasonable best efforts
to assist SpinCo in obtaining an Unqualified Tax Opinion pursuant to Section 5.2(j).

ARTICLE VI

INDEMNIFICATION

     Section 6.1 Indemnification Obligations of RemainCo. RemainCo shall indemnify SpinCo
and SpinCo’s Affiliates and hold them harmless from and against (without duplication):

          (a) All Taxes and other amounts for which RemainCo Group is responsible under this Agreement;
and

          (b) All Taxes and reasonable out-of-pocket costs for advisors and other expenses attributable
to a breach of any representation, covenant, or obligation of RemainCo under this Agreement.

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     Section 6.2 Indemnification Obligations of SpinCo. SpinCo shall indemnify RemainCo
and RemainCo’s, Affiliates and hold them harmless from and against (without duplication):

          (a) all Taxes and other amounts for which SpinCo Group is responsible under this Agreement;
and

          (b) all Taxes and reasonable out-of-pocket costs for advisors and other expenses attributable
to a breach of any representation, covenant, or obligation of SpinCo under this Agreement.

ARTICLE VII

PAYMENTS

     Section 7.1 Payments.

          (a) General. Unless otherwise provided in this Agreement, in the event that an Indemnifying
Party is required to make a payment to an Indemnified Party pursuant to this Agreement:

               (i) Aggregate Payments of Less than $500,000. If such payments are in the aggregate less than
$500,000 during the calendar quarter, the Indemnified Party shall deliver written notice of the
payments to the Indemnifying Party in accordance with Section 12.5 during the calendar quarter in
which the obligation giving rise to the indemnification payment must be satisfied, and the
Indemnifying Party shall be required to make payment to the Indemnified Party within ten (10)
Business Days after the end of the calendar quarter in which written notice of such payment is
delivered to the Indemnifying Party (or, if later, within thirty (30) Business Days of such
delivery).

               (ii) Payments Equal to or Greater than $500,000. If such payments are individually or in the
aggregate equal to or greater than $500,000, the Indemnified Party shall deliver written notice of
the payment to the Indemnifying Party in accordance with Section 12.5 at least ten (10) Business
Days in advance of the date or dates on which the obligations giving rise to the indemnification
payment must be satisfied (in the case of aggregate payments in excess of $500,000, the earliest
date that any such payment must be satisfied), and the Indemnifying Party shall be required to make
payment to the Indemnified Party no later than the later of (A) five (5) Business Days after
receipt of such notice or (B) five (5) Business Days prior to the date on which the obligations
giving rise to the indemnification must be satisfied. The Indemnified Party shall, within one (1)
Business Day after the date on which the obligation giving rise to the indemnification payment is
satisfied, pay interest to the Indemnifying Party that accrues (at a rate equal to one (1) week
LIBOR minus 25 basis points) on the amount of such payment from the date of receipt of such payment
by the Indemnified Party until the date on which the obligation is satisfied.

          (b) Procedural Matters. The written notice delivered to the Indemnifying Party in accordance
with Section 12.5 shall show the amount due and owing together with a schedule calculating in
reasonable detail such amount (and shall include any relevant Tax Return, statement, bill or
invoice related to Taxes, costs, expenses or other amounts due and owing). All

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payments required to be made by one Party to another Party pursuant to this Section 7.1 shall
be made by electronic, same day wire transfer. Payments shall be deemed made when received. If the
Indemnifying Party fails to make a payment to the Indemnified Party within the time period set
forth in this Section 7.1, such Indemnifying Party shall not be considered to be in breach of its
covenants and obligations established in this Section 7.1 unless and until such failure exists on
the date on which the obligation giving rise to the indemnification payment must be satisfied;
provided, however, that the Indemnifying Party shall pay to the Indemnified Party
(i) interest that accrues (at a rate equal to the Base Rate plus 200 basis points) on the amount of
such payment from the time that such payment was due to the Indemnified Party until the date that
payment is actually made to the Indemnified Party; and (ii) any costs or expenses, including any
breakage costs, incurred by the Indemnified Party to secure such payment or to satisfy the
Indemnifying Party’s portion of the obligation giving rise to the indemnification payment.

          (c) Right of Setoff. It is expressly understood that an Indemnifying Party is hereby
authorized to set off and apply any and all amounts required to be paid to an Indemnified Party
pursuant to this Section 7.1 against any and all of the obligations of the Indemnified Party to the
Indemnifying Party arising under Section 7.1 of this Agreement that are then either due and payable
or past due, irrespective of whether such Indemnifying Party has made any demand for payment with
respect to such obligations.

     Section 7.2 Treatment of Payments made Pursuant to Tax Sharing Agreement. Unless
otherwise required by a Final Determination, this Agreement or a “more likely than not” tax opinion
rendered by a Party’s tax advisor, for U.S. federal Tax purposes, any payment made pursuant to this
Agreement by:

          (a) SpinCo to RemainCo shall be treated for all Tax purposes as a distribution by SpinCo to
RemainCo with respect to stock of SpinCo under Section 301 of the Code occurring after SpinCo is
directly owned by RemainCo and immediately before the applicable Distribution;

          (b) RemainCo to SpinCo shall be treated for all Tax purposes as a tax-free contribution by
RemainCo to SpinCo with respect to its stock occurring after SpinCo is directly owned by RemainCo
and immediately before the applicable Distribution;

          (c) Payments made by a Party for its reasonable and necessary costs and expenses with respect
to either the Distribution Agreement or Judgment Sharing Agreement shall be treated as amounts
deductible by such Party pursuant to Section 162 of the Code; and

          (d) In each case, none of the Parties shall take any position inconsistent with such
treatment, and for purposes of this Section 7.2, making any type of disclosure in a Tax Return for
the purpose of avoiding penalties shall not be considered as taking a position that is
inconsistent.

In the event that a Taxing Authority asserts that a Party’s treatment of a payment pursuant to this
Agreement should be other than as required pursuant to this Agreement (ignoring any potential
inconsistent or adverse Final Determination), such Party shall use its reasonable best efforts to
contest such challenge.

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     Section 7.3 Treatment of Payments made Pursuant to Distribution Agreement and Judgment
Sharing Agreement. Unless otherwise required by a Final Determination or this Article VII, for
U.S. federal Income Tax purposes, payments made by one Party to another pursuant to the
Distribution Agreement or Judgment Sharing Agreement shall be treated in accordance with the
principles set forth in Section 7.2. Further, none of the Parties shall take any position
inconsistent with such treatment, except to the extent that there is a Final Determination with
respect to the paying Party that such payment is not deductible. In the event that a Taxing
Authority asserts that a Party’s treatment of a payment pursuant to the Distribution Agreement or
Judgment Sharing Agreement should be other than as set forth in this Agreement (ignoring any
potential inconsistent or adverse Final Determination), such Party shall use its reasonable best
efforts to contest such challenge.

     Section 7.4 Payments Net of Tax Benefit Actually Realized. All amounts required to be
paid by one Party to another pursuant to this Agreement, the Distribution Agreement or the Judgment
Sharing Agreement shall be reduced by the Tax Benefit Actually Realized by the Indemnified Party or
its Subsidiaries with respect to such payments in the taxable year the payment is made or any prior
taxable year.

ARTICLE VIII

AUDITS

     Section 8.1 Notice. Within fifteen (15) Business Days after a Party or any of its
Affiliates receives a written notice from a Taxing Authority (reduced to ten (10) Business Days for
written notices received from a state or local Taxing Authority) of the existence of an Audit that
may require indemnification pursuant to this Agreement, that Party shall notify the other Parties
of such receipt and send such notice to the other Parties via overnight mail. The failure of one
Party to notify the other Parties of an Audit shall not relieve such other Party of any liability
and/or obligation that it may have under this Agreement, except to the extent that the Indemnifying
Party’s rights under this Agreement are materially prejudiced by such failure.

     Section 8.2 Audits.

          (a) Determination of Party to Administer and Control an Audit. Subject to Sections 8.2(b),
8.2(c), and 8.2(d):

               (i) RemainCo and its Subsidiaries shall administer and control all Pre-Distribution U.S.
Income Tax Audits;

               (ii) Pre-Distribution Transfer Pricing Tax Audits shall be administered and controlled by the
Party and its Subsidiaries that would be primarily liable under applicable Law to pay to the
applicable Taxing Authority the Taxes resulting from such Audits;

               (iii) Pre-Distribution Non-Income or Non-U.S. Tax Audits shall be administered and controlled
by the Party and its Subsidiaries that would be primarily liable under applicable Law to pay to the
applicable Taxing Authority the Taxes resulting from such Audits;

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               (iv) Straddle Period Tax Audits shall be administered and controlled by the Party and its
Subsidiaries that had the responsibility under Section 3.1 for preparing the Tax Return for such
Straddle Period that is the subject of the Audit; and

               (v) Post-Distribution Tax Audits shall be administered and controlled by the Party and its
Subsidiaries that had the responsibility under Section 3.1 for preparing the Tax Return for such
Post-Distribution Tax Period that is the subject of the Audit.

          (b) Administration and Control: Cooperation. The Party responsible for administering and
controlling an Audit pursuant to the provisions of Section 8.2(a), above (the “Audit Control
Party”), shall have absolute authority to make all decisions (determined in its sole discretion)
with respect to the administration and control of such Audit, including the selection of all
external advisors. In that regard, the Audit Control Party (i) may in its sole discretion settle or
otherwise determine not to continue to contest any issue related to such Audit without the consent
of the other Parties, and (ii) shall, as soon as reasonably practicable and prior to settlement of
an issue that could cause the other Party to become responsible for Taxes under Section 8.3, notify
the Audit Representatives of such other Party of such settlement; provided,
however, that the Audit Control Party shall not settle any issue or fail to contest any
issue related to an Audit if such settlement or failure to contest would cause the other Party or
any of its Affiliates to be liable for any Taxes without the consent of such Party, which consent
shall not be unreasonably withheld or delayed. The other Party shall (and shall cause its
Affiliates to) undertake all actions and execute all documents (including an extension of the
applicable statute of limitations) that are determined in the sole discretion of the Audit Control
Party to be necessary to effectuate such administration and control. The Parties shall act in good
faith and use their reasonable best efforts to cooperate fully with each other Party (and their
Affiliates) in connection with such Audit and shall provide or cause their Affiliates to provide
such information to each other as may be necessary or useful with respect to such Audit in a timely
manner, identify and provide access to potential witnesses, and other persons with knowledge and
other information within its control and reasonably necessary to the resolution of the Audit.
Notwithstanding anything to the contrary in this Section 8.2(b), after a Change of Control or a
Bankruptcy of the Audit Control Party, the Audit Control Party shall not, during the ninety (90)
day period following such Change of Control or Bankruptcy, choose to litigate any issue with
respect to an Audit or make any decision to change the forum or jurisdiction with respect to which
an issue arising under an Audit is being litigated, without the prior written consent of all of the
Parties.

          (c) Participation Rights of Parties and Information Sharing with respect to Audits.

               (i) Each Party that would be responsible under Section 8.3 for Taxes resulting from an Audit
(other than the Audit Control Party) (a “Participating Party”) shall have limited participation
rights as set forth in this Section 8.2(c) with respect to such Audit. Promptly after the
Distributions, the Audit Control Party shall arrange for a meeting or conference call that includes
all of the Participating Parties to discuss the status of all ongoing Audits. In addition, promptly
after notification of an Audit pursuant to Section 8.1, the Audit Control Party shall arrange for a
meeting or conference call that includes all of the Participating Parties to plan for the
management of such Audit. Thereafter, the Parties shall arrange for a meeting or conference call to
be held on a monthly basis (or on such other basis as the Parties may agree) in order to

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facilitate regular communication on the status of the Audits. These meetings shall be
scheduled at the beginning of each fiscal year and shall not be rescheduled without the consent of
all of the Parties. The Parties may determine from time to time to have a separate special meeting
to discuss a significant Audit issue. Each Participating Party shall identify any personnel and
external advisors who are participating in each of the meetings described above, and shall provide
a list of the names of such persons to the Audit Control Party in advance of such meeting.

               (ii) Upon the reasonable request of a Participating Party, the Audit Control Party shall make
available relevant personnel and external advisors to meet with the Participating Party and its
independent auditor in order to review the status of the Audits. The independent auditors of the
Participating Parties shall have reasonable access to Audit-related information and personnel. The
Participating Parties shall provide the Audit Control Party with reasonable notice of such
requested meetings or information.

               (iii) The Participating Parties shall have reasonable access to the external advisors retained
by the Audit Control Party to advise it and its Affiliates on matters pertaining to an Audit
(“Audit External Advisor”) with respect to issues that may affect such Party’s liability for Taxes.
In the event that a meeting described in (i) or (ii) above is attended by an Audit External
Advisor, all of the Parties shall have the right to participate in such meeting by telephone or in
person. The Audit Control Party shall provide the other Parties with notice (including the time and
location) of such meeting at least twenty-four (24) hours in advance thereof. Any Participating
Party may request a meeting with an Audit External Advisor on matters that are unrelated to the
Audit; provided; however, that if the matter involves evaluating Audit related issues, the
requesting Participating Party must give all of the other Parties at least twenty-four (24) hours
notice prior to such meeting so that such Parties can elect to participate (failure to respond to
the Participating Party’s notice prior to the meeting shall constitute an election to decline
participation). No Party shall request an opinion on an Audit related issue from an Audit External
Advisor unless the Audit Control Party affirmatively declines to obtain such opinion.

               (iv) Each Participating Party shall have access to any written documentation in the possession
of the Audit Control Party that pertains to the Audit (including any written summaries of issues
that the Audit Control Party has developed in the context of evaluating the financial reporting of
the Audit) and the Audit Control Party shall make such information available in the offices of the
Audit Control Party; provided, however, that if documentation was prepared solely
by or on behalf of a Party, then the documentation must relate to issues with respect to which the
Participating Party may have liability for Taxes. Such access shall be provided at such times and
in such manner as the Parties agree, but no less frequently than monthly. Copies of the
documentation will be made available to the Participating Parties at their sole cost and expense.
The Audit Control Party shall undertake to use reasonable efforts to include within the written
documentation described above information that is transmitted through electronic means, such as
through internet e-mail. Subject to the exceptions listed on Schedule 8.2(c)(iv-1), the Audit
Control Party shall maintain an internet-based or other electronic document repository system for
written documentation related to the Audit, and each of the Participating Parties shall be granted,
if so requested, “read only” access to such repository system at such requesting Party’s own cost
and expense. Such system shall be managed and controlled by the Audit Control Party and all
decisions with respect to the system (including but

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not limited to the documents to be posted to such system) shall be made by the Audit Control
Party in its sole discretion; provided, however, that the Audit Control Party shall at a minimum
post documents related to such Audits consistent with the U.S. Audit Control Party’s document
posting practices immediately prior to the Distribution Date in respect to the U.S. federal Income
Tax Audits of RemainCo’s, and SpinCo’s Subsidiaries. An illustrative, but not exclusive, list of
the documents and other information to be made available by the Audit Control Party to the
Participating Parties is set forth in Schedule 8.2(c)(iv-2).

               (v) The Participating Parties are encouraged to provide consultation to the Audit Control
Party in regard to Audit strategy and shall, upon request of the Audit Control Party, provide such
consultation. The Participating Party may elect to employ separate counsel to advise the
Participating Party as additional counsel in or in connection with an Audit, but in that event, the
fees and expenses of the separate counsel shall be paid solely by the Participating Party. The
Audit Control Party shall in good faith consider all advice and other input received from the
Participating Parties in connection with their consultations with respect to an Audit. However, the
Audit Control Party shall retain the authority, in its reasonable discretion, to make all Audit
decisions. In that regard, the Participating Parties and their separate counsels shall not be
allowed to participate in any Audit-related meetings other than those described in (i) or (ii)
above (unless such a meeting is attended by the personnel of a Participating Party, in which case
that Participating Party may attend the meeting but may not actively participate), respond directly
to a Taxing Authority conducting the Audit, or in any manner control resolution of the Audit.

               (vi) Any Participating Party shall have the right to attend all administrative meetings with
and hearings involving the Governmental Authority that has initiated or is conducting the Audit
and, in this connection, the Audit Control Party shall provide the Participating Parties with at
least ten (10) days advance written notice of such meeting or hearing and, if the Audit Control
Party has received notice of such hearing or meeting that is less than ten (10) days, the Audit
Control Party shall provide as much advance written notice to the Participating Parties as is
reasonable under the circumstances.

          (d) Change in Audit Control Party.

               (i) Notwithstanding the designation of a Party as the Audit Control Party pursuant to the
provisions of Section 8.2(a), a Party may, upon thirty (30) days’ written notice to the Audit
Control Party, appoint itself as the Audit Control Party for an Audit if:

	 	a.	 	The Party will have a liability
for a majority of the Taxes that may result upon a Final
Determination of the Audit; or
	 
	 	b.	 	There is a Bankruptcy of the
Audit Control Party.

               (ii) Each Party has the exclusive right to replace its respective Audit Representative
provided that such Audit Representative must be an employee of such Party or any of its Affiliate,
and in the event of such replacement, the applicable Party shall provide written notice of such
replacement to the other Parties.

          (e) External and Internal Costs and Expenses. Each Party shall bear the internal and external
costs and expenses incurred by it or any of its Affiliates related to Pre-

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Distribution U.S. Income Tax Audits, Qualified Plan Tax Audits, Pre-Distribution Payroll Tax
Audits, and Pre-Distribution Transfer Pricing Tax Audits.

          (f) Power of Attorney/Officer Signature. Each Party hereby appoints (and shall cause its
Subsidiaries to appoint) the Audit Control Party (and its designated representatives) as its agent
and attorney-in-fact to take the actions the Audit Control Party deems necessary or appropriate to
implement the responsibilities of the Audit Control Party under this Agreement. Each Party also
shall (or shall cause its Subsidiaries to) execute and deliver to the Audit Control Party a power
of attorney, substantially in the form attached hereto as Schedule 8.2(g-1), and such other
documents as are reasonably requested from time to time by the Audit Control Party (or its
designee). Such other documents include, but are not limited to, documents signed by an authorized
corporate officer of a Party (or a Subsidiary of a Party), where the Audit Control Party determines
that a power of attorney is insufficient (in which case such signed documents shall not be
withheld) to allow the Audit Control Party to make the necessary or appropriate filings or to take
steps necessary or appropriate to the Audit Control Party’s defense, prosecution, or settlement of
an Audit under this Agreement; provided, that (i) such power of attorney or such other
documents shall not expand the rights or powers of such Audit Control Party beyond those provided
by this Agreement; (ii) activities conducted under a power of attorney or such other documents are
limited to the activities authorized by that power of attorney or such other documents; (iii) a
power of attorney or such other documents delivered by a Party to the Audit Control Party can be
revoked only with the approval of the Audit Committee of the Board of Directors of the Party to
which the power of attorney or such other documents relates; and (iv) a revocation of a power of
attorney or such other documents by a Party’s Audit Committee also effects the immediate revocation
of all powers of attorney or such other documents granted under, or derived from, the authority of
the power of attorney that is revoked by that Party’s Audit Committee. Examples of activities for
which the signature of a Party’s authorized representative could be required are set forth on
Schedule 8.2(g-2).

     Section 8.3 Payment of Audit Amounts.

          (a) Tax Audits. Except with regard to adjustments to carryback claims in Section 4.2, Taxes
payable in connection with any Final Determination with respect to a Tax Audit, other than with
respect to Taxes that arise upon Audit and the allocation of the liability for such Taxes are set
forth in Sections 8.3(b), (c), (d), (e) and (f) below, shall be allocated between RemainCo and
SpinCo in the same manner as specified in Section 2.2.

          (b) Pre-Distribution Qualified Plan Tax Audits. In connection with any Final Determination
with respect to a Pre-Distribution Qualified Plan Tax Audit, RemainCo and SpinCo each shall be
liable for and shall pay or cause to be paid to the applicable Taxing Authority as a percentage of
the amount of Final Determination that equals each Party’s portion of the RemainCo Pension Plan
Assets as finally determined and divided pursuant to Section 3.2 of the Employee Matters Agreement.

          (c) Disallowance of Deductions with Respect to Certain Payments Paid to a Risk Affiliate. In
connection with any Final Determination with respect to deductions that were taken on any Combined
Returns or Separate Return for payments made to a Risk Affiliate, other than the payment of
insurance premiums to a Risk Affiliate, the Taxes owing with respect to such

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Final Determination shall be paid by RemainCo using the RemainCo Sharing Percentage and paid
by SpinCo using the SpinCo Sharing Percentage.

          (d) Disallowance of Risk Affiliate’s Loss Reserves. In connection with any Final
Determination that results in Federal Income Tax Liability for the RemainCo Consolidated Return
Group that arises from the disallowance of the insurance loss reserves established by a Risk
Affiliate and that were to continue subsequent to the Risk Affiliate’s merger into RemainCo or the
Risk Affiliate’s liquidation, RemainCo shall pay its portion of such liability based on the tax
deductible loss reserves of the Risk Affiliate allocated to it relative to the total tax-deductible
reserves and SpinCo shall pay its portion of such liability based on the tax deductible loss
reserves of the Risk Affiliate allocated to it relative to the total tax deductible reserves;
provided, however, if SpinCo makes a payment or otherwise has liability for Taxes under this
Section 8.3(d) and some or all of the loss reserves allocated to SpinCo ultimately are not
deductible by SpinCo in respect of computing its Federal Income Tax Liability because of their
disallowance upon an Audit, the RemainCo will reimburse SpinCo an amount equal to the value of the
Tax detriment to SpinCo resulting from the amount of loss reserves that alternately are not
deductible by SpinCo in computing its Federal Income Tax Liability.

          (e) Disallowance of SpinCo’s Payment of Overhead Expenses. In connection with any Final
Determination with respect to deductions that were taken by SpinCo or its Affiliates on any
Combined Return or Separate Returns for payments made to RemainCo with respect to reimbursements
from SpinCo to RemainCo for corporate overhead and administrative expenses that are allocated to
SpinCo, RemainCo shall be liable for the amount of such Final Determination, but not to exceed the
amount of overhead and administrative expenses that RemainCo received and the deduction of which
has been disallowed, with any amount in excess of such payments to RemainCo to be a liability of
SpinCo.

          (f) Foreign Tax Audit. In connection with any Audit involving a foreign entity for a
Pre-Distribution Tax Period or Straddle Period that results in a Final Adjustment and the payment
of foreign Taxes, the liability for such additional foreign Taxes shall be paid by the Party or its
Affiliate whose business operations resulted in the foreign Tax that is the subject of the Audit.

          (g) Adjustments to Refunds. Notwithstanding Sections 8.3(a) through (f), above, if a Final
Determination with respect to an Audit includes an adjustment to a Refund previously received by a
Party or its Affiliates, such Party shall be liable for one hundred percent (100%) of the amount
owed to the extent of such recovery. For purposes of this Section 8.3(c), an amount shall be
considered to be owed when it is actually paid or satisfied pursuant to an offset.

          (h) Payment Procedures. In connection with any Audit that results in an amount to be paid
pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), the Audit Control Party shall, within
thirty (30) Business Days following a final resolution of such Audit, submit in writing to the
other Party a preliminary determination (calculated and explained in detail reasonably sufficient
to enable the Party to fully understand the basis for such determination and to permit such Party
and its Affiliates to satisfy their financial reporting requirements) of the portion of such amount
to be paid by each Party pursuant to Section 8.3(a), (b), (c), (d), (e) and (f), as applicable.
Each of the Parties and its Affiliates shall have access to all data and information necessary to

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calculate such amounts and the Parties and their Affiliates shall cooperate fully in the
determination of such amounts. Within twenty (20) Business Days following the receipt by a Party of
the information described in this Section 8.3(h), such Party shall have the right to object only to
the calculation of the amount of the payment (but not the basis for the payment) by written notice
to the other Parties; such written notice shall contain such disputed item or items and the basis
for its objection. If no Party objects by proper written notice to the other Parties within the
time period described in this Section 8.3(h), the calculation of the amounts due and owing from
each Party shall be deemed to have been accepted and agreed upon, and final and conclusive, for
purposes of this Section 8.3(h). If any Party objects by proper written notice to the other Parties
within such time period, the Parties shall act in good faith to resolve any such dispute as
promptly as practicable in accordance with Article XI. The Party or its Affiliate responsible for
paying to the applicable Taxing Authority under applicable Law amounts owed pursuant to a Final
Determination shall make such payments to such Taxing Authority prior to the due date for such
payments. The other Parties shall reimburse the paying Party in accordance with Article VII and
Section 7.1 for the portion of such payments for which such other Parties are liable pursuant to
this Section 8.3. The time periods specified above for submitting a preliminary determination and
objecting may be shortened to a time period determined by the Parties if these Parties ascertain
that such shortened time period is necessary to meet the Audit obligations of the Parties and their
Affiliates.

          (i) Advance Payment of Taxes. In the event that the Audit Control Party decides to contest
the position of a Taxing Authority taken with respect to a Pre-Distribution U.S. Income Tax Audit,
a Pre-Distribution Qualified Plan Tax Audit, a Pre-Distribution Payroll Tax Audit, or a
Pre-Distribution Transfer Pricing Tax Audit in a forum or jurisdiction that requires the prepayment
or deposit of the Taxes (or security for the Taxes) in order to contest the Taxes determined by the
Taxing Authority to be due and payable, each of the other Parties must pay to the Audit Control
Party its portion of such prepayment determined in accordance with this Section 8.3; provided,
however, if any Party’s portion of such prepayment exceeds $250,000, the Parties shall only be
obligated to pay their portions of such prepayment if the Parties vote in favor of the Audit
Control Party’s decision as to choice of forum or jurisdiction. Each of the Parties shall deliver
its written vote to the Audit Control Party within ten (10) days of its receipt of written notice
of the Audit Control Party’s decision as to choice of forum or jurisdiction and the amount of the
required prepayment. A recoupment of all or a portion of a prepayment of Taxes resulting from a
Final Determination shall be paid to the Party or Parties that contributed to such prepayment, in
proportion to such contributions. No Party shall be liable to any other Party in the event that a
Final Determination does not allow for the recovery of all or a portion of a prepayment.

     Section 8.4 Correlative Adjustments. If pursuant to a Final Determination there is a
Correlative Adjustment attributable to a Pre-Distribution Non-Income or Non-U.S. Tax Audit that
causes a Party or its Affiliate to become entitled to a tax benefit, such Party shall pay to the
Party that experiences, or whose Affiliates experience, a tax detriment in an amount equal to the
lesser of (a) the Tax Benefit Actually Realized or (b) the amount of the tax detriment as a result
of such Correlative Adjustment.

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ARTICLE IX

ALLOCATION OF TAX ATTRIBUTES AND

OTHER TAX MATTERS

     Section 9.1 Allocation of Tax Attributes. Each Party shall make its own determination
as to the existence and the amount of the Tax Attributes to which it is entitled after the
Effective Time; provided, however, that such determination shall be made in a
manner that is (a) reasonably consistent with the past practices of the Parties; (b) in accordance
with the rules prescribed by applicable Law, including the Code and the Treasury Regulations; (c)
consistent with the IRS Ruling, the Tax Representation Letters, and the Tax Opinions; and (d)
reasonably determined by the Party to minimize the aggregate cash Tax liability of the Parties for
all Pre-Distribution Tax Periods and the portion of all Straddle Periods ending on the Distribution
Date. Each Party agrees to provide the other Parties with all of the information supporting the Tax
Attribute determinations made by that Party pursuant to this Section 9.1. Notwithstanding the
above, the Tax Attributes listed on Schedule 9.1 shall be allocated among the Parties in the manner
specified thereon.

     Section 9.2 Third Party Tax Indemnities and Benefits. Notwithstanding anything to the
contrary in this Agreement, the Parties shall share in accordance with their No-Fault Sharing
Percentages (a) any duty or obligation (contractual or otherwise) of a Party or any of its
Affiliates, and (b) any Tax benefits, in either case, that arose or is attributable to a period (or
portion thereof) ending on or prior to the Distribution Date, to reimburse or be reimbursed by, as
the case may be, a Person other than a Party or its Affiliates pursuant to a contractual Tax
indemnity agreement entered into in conjunction with the acquisition or disposition of a business.
Each Party shall promptly notify the other Party upon receiving notice of any amount to be shared
pursuant to this Section 9.2.

ARTICLE X

DEFAULTED AMOUNTS

     Section 10.1 General. In the event that one or more Parties defaults on its
obligation to pay Distribution Taxes for which it is liable pursuant to Article V to another Party,
then each non-defaulting Party shall be required to pay an equal portion of such Distribution Taxes
to such other Party; provided, however, that no payment obligation shall exist
under this Section 10.1 with respect to Distribution Taxes that are attributable to the Fault of
one or more Parties; provided, further, that any payment of Distribution Taxes by a
non-defaulting Party pursuant to this Section 10.1 shall in no way release the defaulting Party
from its obligations to pay such Distribution Taxes and any non-defaulting Party may exercise any
available legal remedies available against such defaulting Party; provided,
further, that interest shall accrue on any such payment by a non-defaulting Party at a rate
per annum equal to the then applicable Base Rate plus four percent (4%), or the maximum legal rate,
whichever is lower. In connection with the foregoing, it is expressly understood that any
defaulting Party’s rights to any amounts to be received by such defaulting Party hereunder may be
used via a right of offset to satisfy, in whole or in part, the obligations of such defaulting
Party to pay the Distribution Taxes that are borne by the non-defaulting Parties; such rights of
offset shall be applied in favor of the non-defaulting Party or Parties in proportion to the
additional amounts paid by any such non-defaulting Party or Parties.

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     Section 10.2 Subsidiary Funding. Without limitation of the Parties’ rights and
obligations otherwise set forth in this Agreement and provided that no other Party has defaulted on
any of its obligations pursuant to this Agreement, each Party agrees to provide or cause to be
provided such funding as is necessary to ensure that its respective Subsidiaries are able to
satisfy their respective Tax liabilities to a Taxing Authority that arise as a result of a Final
Determination under Section 8.3 of this Agreement, including any such Tax liabilities that, upon
default by a Party’s Subsidiary, may result in another Party’s Subsidiary paying or being required
to pay the defaulted Tax liabilities to a Taxing Authority.

ARTICLE XI

ARBITRATION; DISPUTE RESOLUTION

     Section 11.1 Agreement to Arbitrate. The procedures for discussion, negotiation and
arbitration set forth in this Article XI shall be the final, binding and exclusive means to
resolve, and shall apply to, all disputes, controversies or claims (whether in contract, tort or
otherwise) that may arise out of or relate to, or arise under or in connection with this Agreement.
Each Party agrees on behalf of itself and each member of its respective Group that the procedures
set forth in this Article XI shall be the final, binding and exclusive remedy in connection with
any dispute, controversy or claim relating to any of the foregoing matters and irrevocably waives
any right to commence any Action in or before any Governmental Authority, except to the extent
provided under the Arbitration Act in the case of judicial review of arbitration results or awards.
Each Party on behalf of itself and each member of its respective Group irrevocably waives any right
to any trial by jury with respect to any dispute, controversy or claim covered by this Section
11.1.

     Section 11.2 Escalation.

          (a) Expeditious Resolution. It is the intent of the Parties to use their respective
commercially reasonable efforts to resolve expeditiously any dispute, controversy or claim between
them with respect to the matters covered by this Agreement that may arise from time to time on a
mutually acceptable negotiated basis. In furtherance of the foregoing, any Party involved in a
dispute, controversy or claim may deliver a notice (an “Escalation Notice”) demanding an in-person
meeting involving representatives of the Parties at a senior level of management (or if the Parties
agree, of the appropriate business function or division within such entity). A copy of any such
Escalation Notice shall be delivered addressed to the General Counsel, or like chief legal officer
or official, of each Party involved in the dispute, controversy or claim (which copy shall state
that it is an Escalation Notice pursuant to this Agreement). Any agenda, location or procedure for
such discussions or negotiations between the Parties may be established by agreement of the Parties
from time to time; provided, however, that the Parties shall use their commercially reasonable
efforts to meet within 20 days of the Escalation Notice.

          (b) Good Faith Negotiations. Following delivery of an Escalation Notice, the Parties
shall undertake good faith, diligent efforts to negotiate a commercially reasonable resolution of
the dispute, controversy or claim. The Parties may, by mutual consent, retain a mediator to aid the
Parties in their discussions and negotiations. Any opinion expressed by the mediator shall be
strictly advisory and shall not be binding on the Parties, nor shall any opinion expressed by the
mediator be admissible in any arbitration proceedings. The mediator may be chosen from a list of
mediators selected by the Parties or by other agreement of the Parties. All

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third-party costs of the mediation shall be borne equally by the Parties involved in the
matter, and each Party shall be responsible for its own expenses. Mediation is not a prerequisite
to an Arbitration Demand Notice under Section 11.3.

     Section 11.3 Demand for Arbitration.

          (a) Initiation of Process. At any time following 60 days after the date of an
Escalation Notice (the “Arbitration Demand Date”), any Party involved in the dispute, controversy
or claim (regardless of whether such Party delivered the Escalation Notice) may deliver a notice
demanding arbitration of such dispute, controversy or claim (an “Arbitration Demand Notice”).
Delivery of an Escalation Notice by a Party shall be a prerequisite to delivery of an Arbitration
Demand Notice by that Party or the other Party; provided, however, that in the event that any Party
shall deliver an Arbitration Demand Notice to the other Party, such other Party may itself deliver
an Arbitration Demand Notice to such first Party with respect to any related dispute, controversy
or claim with respect to which the Applicable Deadline has not passed without the requirement of
delivering an Escalation Notice. No Party may assert that the failure to resolve any matter during
any prior discussions or negotiations, the course of conduct during such prior discussions or
negotiations, or the failure to agree on a mutually acceptable time, agenda, location or procedure
for a meeting is a prerequisite to an Arbitration Demand Notice under Section 11.3. In the event
that any Party delivers an Arbitration Demand Notice with respect to any dispute, controversy or
claim that is the subject of any then pending arbitration proceeding or of a previously delivered
Arbitration Demand Notice, all such disputes, controversies and claims shall be resolved in the
arbitration proceeding for which an Arbitration Demand Notice was first delivered unless the
arbitrators in their sole discretion determine that it is impracticable or otherwise inadvisable to
do so.

          (b) Limitation Periods. Any Arbitration Demand Notice may be given until the date
that is two years after the later of the occurrence of the act or event giving rise to the
underlying claim or the date on which such act or event was, or should have been, in the exercise
of reasonable due diligence, discovered by the Party asserting the claim (as applicable and as it
may in a particular case be specifically extended by the Parties in writing, the “Applicable
Deadline”). Any discussions, negotiations or mediations between the Parties pursuant to this
Agreement or otherwise will not toll the Applicable Deadline unless expressly agreed in writing by
the Parties. Each of the Parties agrees on behalf of itself and each member of its Group that if an
Arbitration Demand Notice with respect to a dispute, controversy or claim is not given prior to the
occurrence of the Applicable Deadline, as between or among the Parties and the members of their
Groups, such dispute, controversy or claim will be barred. Subject to Section 11.9, upon delivery
of an Arbitration Demand Notice pursuant to Section 11.3(a) prior to the Applicable Deadline, the
dispute, controversy or claim, and all substantive and procedural issues related thereto, shall be
decided by a three member panel of arbitrators in accordance with this Article XI.

     Section 11.4 Arbitrators.

          (a) Selection. The Party delivering the Arbitration Demand Notice shall notify the
American Arbitration Association (“AAA”) and the other Party in writing describing in reasonable
detail the nature of the dispute. Within 20 days of the date of the Arbitration Demand

-39-

 

Notice, each Party to the dispute shall select one arbitrator from the members of a panel of
arbitrators of the AAA. The selected arbitrators shall then jointly select a third arbitrator from
the members of a panel of arbitrators of the AAA, and such third arbitrator shall be disinterested
with respect to each of the Parties and shall be experienced in complex commercial arbitration. In
the event that the Parties’ selected arbitrators are unable to agree on the selection of the third
arbitrator, the AAA shall select the third arbitrator, within 45 days of the date of the
Arbitration Demand Notice. In the event that any arbitrator is unable to serve, his replacement
will be selected in the same manner as the arbitrator to be replaced. The vote of two of the three
arbitrators shall be required for any decision under this Article XI.

          (b) Time. The arbitrators will set a time for the hearing of the matter which will
commence no later than 180 days after the date of appointment of the third arbitrator and which
hearing will be no longer than 30 days (unless in the judgment of the arbitrators the matter is
unusually complex and sophisticated and thereby requires a longer time, in which event such hearing
shall be no longer than 90 days). The final decision of such arbitrators will be rendered in
writing to the Parties not later than 60 days after the last day of the hearing, unless otherwise
agreed by the Parties in writing.

          (c) Place. The place of any arbitration hereunder will be Indianapolis, Indiana, and
the language of any arbitration hereunder will be English. Unless otherwise agreed by the Parties,
the arbitration hearing shall be conducted on consecutive days.

     Section 11.5 Hearings. Within the time period specified in Section 11.4(b), the
matter shall be presented to the arbitrators at a hearing by means of written submissions of
memoranda and verified witness statements, filed simultaneously, and responses, if necessary in the
judgment of the arbitrators or both of the Parties. If the arbitrators deem it to be essential to a
fair resolution of the dispute, live cross-examination or direct examination may be permitted, but
is not generally contemplated to be necessary. The arbitrators shall actively manage the
arbitration with a view to achieving a just, speedy and cost-effective resolution of the dispute,
claim or controversy. The arbitrators may, in their discretion, set time and other limits on the
presentation of each Party’s case, its memoranda or other submissions, and may refuse to receive
any proffered evidence, which the arbitrators, in their discretion, find to be cumulative,
unnecessary, irrelevant or of low probative nature. Any arbitration hereunder shall be conducted in
accordance with the Commercial Arbitration Rules of the AAA (“Rules”) in effect on the date the
Arbitration Demand Notice is served. The decision of the arbitrators will be final and binding on
the Parties, and judgment thereon may be had and will be enforceable in any court having
jurisdiction over the Parties. Arbitration awards will bear interest at the Base Rate plus 2% per
annum, subject to any maximum amount permitted by applicable law. To the extent that the provisions
of this Agreement and the prevailing Rules conflict, the provisions of this Agreement shall govern.

     Section 11.6 Discovery and Certain Other Matters.

          (a) Production of Documents. Any Party involved in a dispute, controversy or claim
subject to this Article XI may request document production from the other Party or Parties of
specific and expressly relevant documents, with the reasonable expenses of the producing Party
incurred in such production paid by the requesting Party. Any such discovery shall be conducted in
accordance with the Rules, subject to the discretion of the arbitrators. Any

-40-

 

such discovery shall be conducted expeditiously and shall not cause the hearing to be
adjourned except upon consent of all Parties involved in the applicable dispute or upon an
extraordinary showing of cause demonstrating that such adjournment is necessary to permit discovery
essential to a Party to the proceeding. Disputes concerning the scope of document production and
enforcement of the document production requests will be determined by written agreement of the
Parties involved in the applicable dispute or, failing such agreement, will be referred to the
arbitrators for resolution. Subject to the terms of this Agreement, all discovery requests will be
subject to the Parties’ rights to claim any applicable privilege, and no joint privilege may be
waived without the prior written consent of both Parties to this Agreement. The arbitrators will
adopt procedures to protect the proprietary rights of the Parties and to maintain the confidential
treatment of the arbitration proceedings (except as may be required by law). Subject to the
foregoing, the arbitrators shall have the power to issue subpoenas to compel the production of
documents relevant to the dispute, controversy or claim.

          (b) Authority of Arbitrators. The arbitrators shall have full power and authority to
determine issues of arbitrability but shall otherwise be limited to interpreting or construing the
applicable provisions of this Agreement, and will have no authority or power to limit, expand,
alter, amend, modify, revoke or suspend any condition or provision of this Agreement; it being
understood, however, that the arbitrators will have full authority to implement the provisions of
this Agreement, and to fashion appropriate remedies for breaches of this Agreement (including
interim or permanent injunctive relief); provided that the arbitrators shall not have (i) any
authority in excess of the authority a court having jurisdiction over the Parties and the
controversy or dispute would have absent these arbitration provisions or (ii) any right or power to
award punitive damages. It is the intention of the Parties that in rendering a decision the
arbitrators give effect to the applicable provisions of this Agreement and follow applicable law
(it being understood and agreed that this sentence shall not give rise to a right of judicial
review of the arbitrators’ award).

          (c) Effect of Failure to Participate. If a Party fails or refuses to appear at and
participate in an arbitration hearing after due notice, the arbitrators may hear and determine the
controversy upon evidence produced by the appearing Party.

          (d) Costs. Arbitration costs will be borne equally by each Party involved in the
matter, and each Party will be responsible for its own attorneys’ fees and other costs and
expenses, including the costs of any expert witnesses selected by such Party.

     Section 11.7 Certain Additional Matters.

          (a) Nature of Award. Any arbitration award shall be a bare award limited to a holding
for or against a Party and shall be without findings as to facts, issues or conclusions of law and
shall be without a statement of the reasoning on which the award rests, but must be in adequate
form so that a judgment of a court may be entered thereupon. Judgment upon any arbitration award
hereunder may be entered in any court having jurisdiction thereof.

          (b) Confidentiality of Proceedings. Except as required by law, the Parties shall
hold, and shall cause their respective officers, directors, employees, agents and other
representatives to hold, the existence, content and result of mediation or arbitration in
confidence

-41-

 

in accordance with the provisions of this Section 11.7(b) and except as may be required in
order to enforce any award. Each of the Parties shall request that any mediator or arbitrator
comply with such confidentiality requirement.

     Section 11.8 Continuity of Service and Performance. Unless otherwise agreed in
writing, the Parties will continue to provide service and honor all other commitments under this
Agreement during the course of the dispute resolution procedures pursuant to this Article XI with
respect to all matters not subject to such dispute, controversy or claim.

     Section 11.9 Law Governing Arbitration Procedures. The interpretation of the
provisions of this Article XI, only insofar as they relate to the agreement to arbitrate and any
procedures pursuant thereto, shall be governed by the Arbitration Act, as amended, and other
applicable federal law. In all other respects, the interpretation of this Agreement shall be
governed as set forth in Section 12.4.

ARTICLE XII

MISCELLANEOUS

     Section 12.1 Complete Agreement. This Agreement, the Schedules hereto and the other
documents referred to herein shall constitute the entire agreement between the Parties with respect
to the subject matter hereof and shall supersede all previous negotiations, commitments and
writings with respect to such subject matter.

     Section 12.2 Other Agreements. Except as otherwise expressly provided herein, if
there shall be a conflict or an inconsistency between the provisions of this Agreement and the
provisions of the Distribution Agreement or any of the Other Agreements, the provisions of this
Agreement shall control over the inconsistent provisions of the Distribution Agreement or any of
the Other Agreements.

     Section 12.3 Expenses. RemainCo and SpinCo shall each be responsible for its expenses
incurred in connection with the Distribution.

     Section 12.4 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana (other than the laws regarding choice of laws and
conflicts of laws) as to all matters, including matters of validity, construction, effect,
performance and remedies; provided, however, that the Arbitration Act shall govern the matters
described in Article XI.

     Section 12.5 Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person (including a nationally recognized delivery service) by facsimile,
electronic mail or other standard form of telecommunications (provided confirmation is delivered to
the recipient the next Business Day in the case of facsimile, electronic mail or other standard
form of telecommunications) or by registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

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	If to RemainCo:
	 	Hillenbrand Industries, Inc.
	 
	 	1069 State Route 46 East
	 
	 	Batesville, IN 47006-8835
	 
	 	c/o Corporate Secretary
	 
	 	 
	If to SpinCo:
	 	Batesville Holdings, Inc.
	 
	 	One Batesville Boulevard
	 
	 	Batesville, IN  47006-8835
	 
	 	c/o General Counsel

or to such other address as a Party may have furnished to the other Party by a notice in writing in
accordance with this Section 12.5.

     Section 12.6 Amendment and Modification. This Agreement may be amended, modified or
supplemented only by a written agreement signed by each of the Parties.

     Section 12.7 Successors and Assigns: No Third Party Beneficiaries. This Agreement is
made and shall be binding on and inure solely to the benefit of the RemainCo Group and the SpinCo
Group and their respective successors or permitted assigns and does not otherwise confer any rights
or defenses on any other Person. Neither RemainCo nor SpinCo may assign any of its rights or
obligations under this Agreement to another Person without the consent of the other Party to this
Agreement, which consent may be withheld for any reason or no reason. Subject to the foregoing,
(a) this Agreement and all the terms and provisions hereof shall be binding upon and inure to the
benefit of the Parties to this Agreement and their respective successors and permitted assigns, and
(b) each Party to this Agreement shall require any Person or Persons that, as a result of any
merger, purchase of assets, reorganization or other transaction, acquires or succeeds to all or
substantially all of its business or assets to assume its obligations under this Agreement pursuant
to a written assumption agreement in form and substance reasonably satisfactory to the other Party.

     Section 12.8 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     Section 12.9 Interpretation. The Article and Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and
shall not in any way affect the meaning or interpretation of this Agreement.

     Section 12.10 Legal Enforceability. Each Party agrees that it shall not, directly or
indirectly, challenge the enforceability of this Agreement on any grounds or under any
circumstances. Without limiting the effect of the immediately preceding sentence, if any provision
of this Agreement is determined by a Governmental Authority or the arbitrators selected under
Section 11.4 to be prohibited or unenforceable in any jurisdiction, such provision shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Each Party acknowledges that money damages would be an inadequate remedy for

-43-

 

any breach of the provisions of this Agreement and agrees that the obligations of the Parties
hereunder shall be specifically enforceable.

     Section 12.11 Performance Standard. Each of RemainCo and SpinCo agrees to at all
times exercise good faith and fair dealing in the performance of its rights and obligations under
this Agreement and to cause the members of its respective Group to do likewise.

     Section 12.12 Authority. Each Party represents to the other that: (a) it has the
corporate or other requisite power and authority to execute, deliver and perform this Agreement;
(b) the execution, delivery and performance of this Agreement by it have been duly authorized by
all necessary corporate or other actions; (c) it has duly and validly executed and delivered this
Agreement; and (d) this Agreement is a legal, valid and binding obligation, enforceable against it
in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and general equity
principles.

     Section 12.13 Joint Authorship. This Agreement shall be treated as though it were
jointly drafted by RemainCo and SpinCo, and any ambiguities shall not be construed for or against
any Party on the basis of attributed authorship.

     Section 12.14 References; Interpretation.

          (a) Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in
the Distribution Agreement. References in this Agreement to any gender include references to all
genders, and references to the singular include references to the plural and vice versa. Unless the
context otherwise requires, the words “include”, “includes”, and “including” when used in this
Agreement shall be deemed to be followed by the phrase “without limitation”. Unless the context
otherwise requires, references in this Agreement to Articles, Sections and Schedules shall be
deemed references to Articles and Sections of, and Schedules to, this Agreement. Unless the context
otherwise requires, the words “hereof’, “hereby”, and “herein” and words of similar meaning when
used in this Agreement refer to this Agreement in its entirety and not to any particular Article,
Section or provision of this Agreement.

          (b) The Parties agree that this Agreement is intended solely to determine the cash tax
obligations of the Parties and does not address the manner or method of tax accounting for any
item.

-44-

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	HILLENBRAND INDUSTRIES, INC.

 	 
	 	By:  	/s/
Patrick D. de Maynadier	 
	 	 	Name:  	Patrick D. de Maynadier 	 
	 	 	Title:  	Senior Vice President, General Counsel and Secretary 	 
	 
	 	BATESVILLE HOLDINGS, INC.

 	 
	 	By:  	/s/ John R. Zerkle
 	 
	 	 	Name:  	John R. Zerkle 	 
	 	 	Title:  	Senior Vice President, General Counsel and Secretary 	 
	 

-45-

 

Schedule 1.1(c)

Adjustments that Form Part of the Adjusted Allocation Method

The modifications that are part of the Adjusted Allocation Method are as follows:

1. Foreign Tax credit under sections 27 and 901 — SpinCo’s foreign tax credit shall be determined
on a theoretical separate standalone basis; provided, however, any foreign tax credit carry forward
allocated to SpinCo in excess of a carry forward from the theoretical separate stand-alone
calculation, both determined pursuant to Reg. § 1.1502-79(d)(2), shall reduce the amount of credit
utilized on a stand alone basis, but not below zero.

2. Research Credit under Section 41 — the consolidated research credit shall be allocated to the
subgroups based on each subgroup’s qualified research expenditures.

3. Capital Gains and Losses and Net Capital Loss Carryovers — are attributed to and allocated
between SpinCo and RemainCo pursuant to Treas. Reg. 1.1502-22.

4. Domestic Manufacturing Deduction under Section 199 — SpinCo’s domestic manufacturing deduction
shall be determined using consolidated taxable income with reasonable allocations of expenses to
SpinCo and RemainCo income.

5. ETI- SpinCo’s ETI shall be determined using consolidated taxable income with reasonable
allocations of expenses to SpinCo and RemainCo income.

6. Other Items — any other item calculated on a consolidated basis for purposes of the U.S.
federal income tax return shall be subject to similar adjustments with an intent to reflect
SpinCo’s separate company tax liability with any adjustment being intended to reflect a ratable
share of the benefit or detriment of participating in the consolidated federal return.

-1-exv10w1

 

EXHIBIT 10.1

CREDIT AGREEMENT

Dated as of March 28, 2008

          This Credit Agreement (this “Agreement”) is entered into as of the date first written
above among BATESVILLE HOLDINGS, INC. (to be renamed Hillenbrand, Inc. after the Spin Transaction
referenced below), an Indiana corporation (the “Borrower”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) and issuers of letters
of credit (“Initial Issuing Banks”) listed on Schedule I hereto, and CITIBANK, N.A.
(“Citibank”), as agent (the “Agent”) for the Lenders (as hereinafter defined). In
consideration of the mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

     “Advance” means an advance by a Lender to the Borrower as part of a Borrowing
and refers to a Base Rate Advance or a Eurodollar Rate Advance (each of which shall be a
“Type” of Advance).

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director or officer of such Person. For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to vote 10% or more of the
Voting Stock of such Person or to direct or cause the direction of the management and
policies of such Person, whether through the ownership of Voting Stock, by contract or
otherwise.

     “Agent’s Account” means the account of the Agent maintained by the Agent at
Citibank at its office at Two Penns Way, New Castle, Delaware 19720, Account No. 36852248,
Attention: Bank Loan Syndications, or such other account of the Agent as is designated in
writing from time to time by the Agent to the Borrower and the Lenders for such purpose.

     “Airport Access and Use Agreement” means that certain Airport Access and Use
Agreement dated on or about March 21, 2008 by and between Hill-Rom and Batesville Services.

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s
Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar
Lending Office in the case of a Eurodollar Rate Advance.

     “Applicable Margin” means as of any date, for Base Rate Advances, 0.00% per
annum and, for Eurodollar Rate Advances, a percentage per annum determined by reference to
the Public Debt Rating in effect on such date as set forth below:

 

 

	 	 	 	 	 
	Public Debt Rating	 	Applicable Margin for
	S&P/Moody’s	 	Eurodollar Rate Advances
	Level 1

A- or A3 or above
	 	 	0.240	%
	Level 2

BBB+ or Baa1
	 	 	0.320	%
	Level 3

BBB or Baa2
	 	 	0.375	%
	Level 4

BBB- or Baa3
	 	 	0.500	%
	Level 5

BB+ or Ba1
	 	 	0.700	%
	Level 6

Lower than Level 5
	 	 	0.875	%

     “Applicable Percentage” means, as of any date a percentage per annum determined
by reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating	 	Applicable
	S&P/Moody’s	 	Percentage
	Level 1

A- or A3 or above
	 	 	0.060	%
	Level 2

BBB+ or Baa1
	 	 	0.080	%
	Level 3

BBB or Baa2
	 	 	0.125	%
	Level 4

BBB- or Baa3
	 	 	0.150	%
	Level 5

BB+ or Ba1
	 	 	0.200	%
	Level 6

Lower than Level 5
	 	 	0.250	%

     “Applicable Utilization Fee” means, as of any date that the aggregate principal
amount of the Advances plus the aggregate Available Amount of the Letters of Credit
outstanding exceed 50% of the aggregate Revolving Credit Commitments, a percentage per annum
determined by reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating	 	Applicable
	S&P/Moody’s	 	Utilization Fee
	Level 1

A- or A3 or above
	 	 	0.050	%
	Level 2

BBB+ or Baa1
	 	 	0.050	%
	Level 3

BBB or Baa2
	 	 	0.050	%
	Level 4

BBB- or Baa3
	 	 	0.050	%
	Level 5

BB+ or Ba1
	 	 	0.050	%

2

 

	 	 	 	 	 
	Public Debt Rating	 	Applicable
	S&P/Moody’s	 	Utilization Fee
	Level 6

Lower than Level 5
	 	 	0.075	%

     “Assignment and Acceptance” means an assignment and acceptance entered into by
a Lender and an Eligible Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto.

     “Assuming Lender” has the meaning specified in Section 2.18(d).

     “Assumption Agreement” has the meaning specified in Section 2.18(d)(ii).

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

     “Audited Financial Statements” means the audited consolidated balance sheet of
the Borrower and its Subsidiaries as filed in the Form 10 filing with the SEC for the year
ended September 30, 2007, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of the Borrower and its
Subsidiaries, including the notes thereto.

     “Available Amount” of any Letter of Credit means, at any time, the maximum
amount available to be drawn under such Letter of Credit at such time (assuming compliance
at such time with all conditions to drawing).

     “Bankruptcy Law” means any proceeding of the type referred to in Section
6.01(e) or Title 11, U.S. Code, or any similar foreign, federal or state law for the relief
of debtors.

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

     (a) the rate of interest announced publicly by Citibank in New York, New York,
from time to time, as Citibank’s base rate; and

     (b) 1/2 of one percent per annum above the Federal Funds Rate.

     “Base Rate Advance” means an Advance that bears interest as provided in Section
2.07(a)(i).

     “Batesville Services” means Batesville Services, Inc., an Indiana corporation.

     “Borrowing” means a borrowing consisting of simultaneous Advances of the same
Type made by each of the Lenders.

     “Borrowing Minimum” means $10,000,000.

     “Borrowing Multiple” means $1,000,000.

     “Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day relates to
any Eurodollar Rate Advances, on which dealings are carried on in the London interbank
market.

3

 

     “Change of Control” means, with respect to any Person, an event or series of
events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any such Person and its subsidiaries, any
employee benefit plan of such Person or its subsidiaries, and any person or entity acting in
its capacity as trustee, agent or other fiduciary or administrator of any such plan) other
than any member or members of the Hillenbrand Family Group becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that
a person or group shall be deemed to have “beneficial ownership” of all securities that such
person or group has the right to acquire (such right, an “option right”), whether such right
is exercisable immediately or only after the passage of time), directly or indirectly, of
35% or more of the equity securities of such Person entitled to vote for members of the
board of directors or equivalent governing body of such Person on a fully-diluted basis (and
taking into account all such securities that such person or group has the right to acquire
pursuant to any option right); or

     (b) during any period of 12 consecutive months, a majority of the members of the board
of directors or other equivalent governing body of such Person cease (other than by reason
of death or disability) to be composed of individuals (i) who were members of that board or
equivalent governing body on the first day of such period, (ii) whose election or nomination
to that board or equivalent governing body was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body or (iii) whose election or nomination to that board
or other equivalent governing body was approved by individuals referred to in clauses (i)
and (ii) above constituting at the time of such election or nomination at least a majority
of that board or equivalent governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or assumption of office as, a
member of that board or equivalent governing body occurs as a result of an actual or
threatened solicitation of proxies or consents for the election or removal of one or more
directors by any person or group other than a solicitation for the election of one or more
directors by or on behalf of the board of directors). For purposes of determining whether a
Change of Control has occurred under this clause (b) for any period beginning on the
Effective Date and ending on the one year anniversary of the Effective Date, the members of
the Borrower’s Board of Directors on the first day of such period shall be deemed to be the
members of such board after giving effect to the Spin Transaction on the Effective Date .

     “Commitment” means a Revolving Credit Commitment or a Letter of Credit
Commitment.

     “Commitment Date” has the meaning specified in Section 2.18(b).

     “Commitment Increase” has the meaning specified in Section 2.18(a).

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

     “Consenting Lender” has the meaning specified in Section 2.19(b).

     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.

4

 

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

     “Convert”, “Conversion” and “Converted” each refers to a
conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.08
or 2.09.

     “Default” means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or both.

     “Disclosed Litigation” has the meaning specified in Section 3.01(b).

     “Disposition” or “Dispose” means the sale, transfer, license, lease or
other disposition (including any sale and leaseback transaction) of any property by any
Person, including any sale, assignment, transfer or other disposal, with or without
recourse, of any notes or accounts receivable or any rights and claims associated therewith.

     “Distribution Agreement” means that certain Distribution Agreement dated as of
March 14, 2008 between HII and the Borrower pursuant to which the Spin Transaction will be
consummated.

     “Dollars” and the “$” sign each means lawful currency of the United
States of America.

     “Domestic Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or
in the Assumption Agreement or the Assignment and Acceptance pursuant to which it became a
Lender, or such other office of such Lender as such Lender may from time to time specify to
the Borrower and the Agent.

     “EBITDA” means, for any period, net income (or net loss) plus the sum
of (a) interest expense, (b) income tax expense, (c) depreciation expense and (d)
amortization expense, in each case determined in accordance with GAAP for such period.

     “Effective Date” has the meaning specified in Section 3.01.

     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by the Agent, each Issuing Bank and, unless an Event of
Default has occurred and is continuing at the time any assignment is effected in accordance
with Section 9.07, the Borrower, such approval not to be unreasonably withheld or delayed;
provided, however, that neither the Borrower nor an Affiliate of the
Borrower shall qualify as an Eligible Assignee.

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

     “Environmental Liability” means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Borrower or any of its Subsidiaries directly or indirectly resulting
from or based upon

5

 

(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.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

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

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b)
a withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer (as defined in
Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a
withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the
Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a
Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or
the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer
Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; (f) the existence of an Unfunded Pension Liability or (g) the conditions
for imposition of a lien under Section 303(k) of ERISA shall have been met with respect to
any Plan or a determination that any Plan is in “at risk” status (within the meaning of
Section 303 of ERISA).

     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation
D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

     “Eurodollar Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I
hereto or in the Assumption Agreement or the Assignment and Acceptance pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending Office), or such
other office of such Lender as such Lender may from time to time specify to the Borrower and
the Agent.

     “Eurodollar Rate” means, for any Interest Period for each Eurodollar Rate
Advance comprising part of the same Borrowing, an interest rate per annum (rounded upward to
the nearest whole multiple of 1/16 of 1% per annum) appearing on Reuters LIBOR01 Page (or
any successor page) as the London interbank offered rate for deposits in Dollars at
approximately 11:00 A.M. (London time) two Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period or, if for any reason such
rate is not available, the average (rounded upward to the nearest whole multiple of 1/16 of
1% per annum, if such average is not such a multiple) of the rate per annum at which
deposits in Dollars are offered by the principal office of each of the Reference Banks in
London, England to prime banks in the London interbank market at 11:00 A.M. (London time)
two Business Days before the first day of such Interest Period in an amount substantially
equal to such Reference Bank’s Eurodollar Rate Advance comprising part of such Borrowing to
be outstanding during such Interest Period and for a period equal to such Interest Period.
If the Reuters LIBOR01 Page (or any successor page) is

6

 

unavailable, the Eurodollar Rate for
any Interest Period for each Eurodollar Rate Advance comprising part of the same Borrowing
shall be determined by the Agent on the basis of applicable rates furnished to and received
by the Agent from one or more Reference Banks two
Business Days before the first day of such Interest Period, subject,
however, to the provisions of Section 2.08.

     “Eurodollar Rate Advance” means a Advance that bears interest as provided in
Section 2.07(a)(ii).

     “Eurodollar Rate Reserve Percentage” for any Interest Period for all Eurodollar
Rate Advances comprising part of the same Borrowing means the reserve percentage applicable
two Business Days before the first day of such Interest Period under regulations issued from
time to time by the Board of Governors of the Federal Reserve System (or any successor) for
determining the maximum reserve requirement (including, without limitation, any emergency,
supplemental or other marginal reserve requirement) for a member bank of the Federal Reserve
System in New York City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of liabilities that includes
deposits by reference to which the interest rate on Eurodollar Rate Advances is determined)
having a term equal to such Interest Period.

     “Events of Default” has the meaning specified in Section 6.01.

     “Extension Date” has the meaning specified in Section 2.19(b).

     “Farm Agreement” means that certain Tenants in Common Agreement dated on or
about March 21, 2008 between Hill-Rom Company, Inc., an Indiana corporation, and BCC
JAWACDAH Holdings, LLC, an Indiana limited liability company.

     “Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding 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 of the quotations for
such day on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

     “Fee Letters” means (a) the fee letter between the Borrower and Citigroup
Global Markets Inc. dated February 15, 2008 and (b) the fee letter among the Borrower and
JPMorgan Chase Bank, N.A. and J.P. Morgan Securities Inc. dated February 15, 2008.

     “GAAP” has the meaning specified in Section 1.03.

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

     “Guarantee” means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the “primary
obligor”) in any manner,

7

 

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

     “Guaranteed Obligations” has the meaning specified in Section 7.01.

     “Guarantors” means the Subsidiaries of the Borrower listed on Schedule II
hereto and each other Subsidiary of the Borrower that shall be required to execute and
deliver a guaranty pursuant to Section 5.01(k).

     “Guaranty” means the guaranty of the Guarantors set forth in Article VII,
together with each other guaranty and guaranty supplement delivered pursuant to Section
5.01(k), in each case as amended, amended and restated, modified or otherwise supplemented.

     “Guaranty Supplement” has the meaning specified in Section 7.05.

     “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.

     “HII” means Hillenbrand Industries, Inc., an Indiana corporation (to be renamed
Hill-Rom Holdings, Inc. in connection with the Spin Transaction).

     “Hillenbrand Family Group” means the descendants of John A. Hillenbrand and
members of such descendants’ families and trusts for the benefit of such Persons.

     “Hill-Rom” means Hill-Rom Inc., an Indiana corporation.

     “Increase Date” has the meaning specified in Section 2.18(a).

     “Increasing Lender” has the meaning specified in Section 2.18(b).

     “Indebtedness” means, as to any Person at a particular time, without
duplication, all of the following, but only to the extent included as indebtedness or
liabilities in accordance with GAAP:

8

 

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

     (b) all direct or contingent obligations of such Person arising under
unreimbursed payments made under letters of credit (including standby and
commercial), bankers’ acceptances and bank guaranties;

     (c) net obligations of such Person under any Swap Contract pertaining to
interest rates;

     (d) all obligations of such Person to pay the deferred purchase price of
property or services (other than trade accounts payable incurred in the ordinary
course of business);

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

     (f) capital leases; and

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

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

     “Information” has the meaning specified in Section 9.08.

     “Information Memorandum” means the information memorandum dated February 20,
2008 used by the Agent in connection with the syndication of the Commitments.

     “Interest Period” means, for each Eurodollar Rate Advance comprising part of
the same Borrowing, the period commencing on the date of such Eurodollar Rate Advance or the
date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending
on the last day of the period selected by the Borrower pursuant to the provisions below and,
thereafter, each subsequent period commencing on the last day of the immediately preceding
Interest Period and ending on the last day of the period selected by the Borrower pursuant
to the provisions below. The duration of each such Interest Period shall be one, two, three
or six months, and subject to clause (c) of this definition, nine or twelve months or such
other period as may be acceptable to the Agent and all Lenders, as the Borrower may, upon
notice received by the Agent not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the first day of such Interest Period, select; provided,
however, that:

     (a) the Borrower may not select any Interest Period that ends after the
Termination Date;

9

 

     (b) Interest Periods commencing on the same date for Eurodollar Rate Advances
comprising part of the same Borrowing shall be of the same duration;

     (c) in the case of any such Borrowing, the Borrower shall not be entitled to
select an Interest Period having duration of nine or twelve months or such other
period as may be acceptable to the Agent and all Lenders unless, by 2:00 P.M. (New
York City time) on the third Business Day prior to the first day of such Interest
Period, each Lender notifies the Agent that such Lender will be providing funding
for such Borrowing with such Interest Period (the failure of any Lender to so
respond by such time being deemed for all purposes of this Agreement as an objection
by such Lender to the requested duration of such Interest Period); provided
that, if any or all of the Lenders object to the requested duration of such Interest
Period, the duration of the Interest Period for such Borrowing shall be one, two,
three or six months, as specified by the Borrower in the applicable Notice of
Borrowing as the desired alternative to an Interest Period of nine or twelve months
or such other requested period;

     (d) whenever the last day of any Interest Period would otherwise occur on a day
other than a Business Day, the last day of such Interest Period shall be extended to
occur on the next succeeding Business Day, provided, however, that,
if such extension would cause the last day of such Interest Period to occur in the
next following calendar month, the last day of such Interest Period shall occur on
the next preceding Business Day; and

     (e) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar
month that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

     “Issuance” with respect to any Letter of Credit means the issuance, amendment,
renewal or extension of such Letter of Credit.

     “Issuing Bank” means an Initial Issuing Bank or any Eligible Assignee to which
a portion of the Letter of Credit Commitment hereunder has been assigned pursuant to Section
9.07 or any other Lender so long as such Eligible Assignee or Lender expressly agrees to
perform in accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as an Issuing Bank and notifies the Agent of
its Applicable Lending Office (which information shall be recorded by the Agent in the
Register), for so long as such Initial Issuing Bank, Eligible Assignee or Lender, as the
case may be, shall have a Letter of Credit Commitment.

     “Joint Ownership Agreements” means the four (4) Joint Ownership Agreements with
respect to the joint ownership of the aircraft described therein, dated on or about March
21, 2008 by and among Hill-Rom and Batesville Services.

     “Laws” means, collectively, all international, foreign, Federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental

10

 

Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations
and permits of, and agreements with, any Governmental Authority, in each case whether or not
having the force of law.

     “L/C Cash Deposit Account” means an interest bearing cash deposit account to be
established and maintained by the Agent, over which the Agent shall have sole dominion and
control, upon terms as may be satisfactory to the Agent.

     “L/C Related Documents” has the meaning specified in Section 2.06(b)(i).

     “Lenders” means each Initial Lender, each Issuing Bank, each Assuming Lender
that shall become a party hereto pursuant to Section 2.18 or 2.19 and each Person that shall
become a party hereto pursuant to Section 9.07.

     “Letter of Credit” has the meaning specified in Section 2.01(b).

     “Letter of Credit Agreement” has the meaning specified in Section 2.03(a).

     “Letter of Credit Commitment” means, with respect to each Issuing Bank, the
obligation of such Issuing Bank to issue Letters of Credit for the account of the Borrower
and its specified Subsidiaries in (a) the Dollar amount set forth opposite the Issuing
Bank’s name on Schedule I hereto under the caption “Letter of Credit Commitment” or (b) if
such Issuing Bank has entered into one or more Assignment and Acceptances, the Dollar amount
set forth for such Issuing Bank in the Register maintained by the Agent pursuant to Section
9.07(d) as such Issuing Bank’s “Letter of Credit Commitment”, in each case as such amount
may be reduced prior to such time pursuant to Section 2.05.

     “Letter of Credit Facility” means, at any time, an amount equal to the least of
(a) the aggregate amount of the Issuing Banks’ Letter of Credit Commitments at such time,
(b) $50,000,000 and (c) the aggregate amount of the Revolving Credit Commitments, as such
amount may be reduced at or prior to such time pursuant to Section 2.05.

     “Lien” means any lien, security interest or other charge or encumbrance of any
kind, or any other type of preferential arrangement, including, without limitation, the lien
or retained security title of a conditional vendor.

     “Loan Documents” means this Agreement, each Note, each Letter of Credit
Agreement and the Fee Letters.

     “Loan Party” means the Borrower and each Guarantor.

     “Material Adverse Change” means any material adverse change in the operations,
business or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as
a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the
operations, business or condition (financial or otherwise) of the Borrower and its
Subsidiaries taken as a whole, (b) the rights and remedies of the Agent or any Lender under
this Agreement or any Note or (c) the ability of any Loan Party to perform its obligations
under this Agreement or any Note.

11

 

     “Material Subsidiary” means each directly owned Subsidiary of the Borrower
either (a) having (together with its Subsidiaries) assets that constitute 5% or more of the
Consolidated assets of the Borrower and its Subsidiaries or (b) having (together with its
Subsidiaries) revenues that constitute 5% or more of the Consolidated revenues of the
Borrower and its Subsidiaries, in each case during any of the three most recently completed
fiscal years of the Borrower.

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

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

     “Non-Consenting Lender” has the meaning specified in Section 2.19(b).

     “Note” means a promissory note of the Borrower payable to the order of any
Lender, delivered pursuant to a request made under Section 2.16 in substantially the form of
Exhibit A hereto, evidencing the aggregate indebtedness of the Borrower to such Lender
resulting from the Advances made by such Lender to the Borrower.

     “Notice of Borrowing” has the meaning specified in Section 2.02(a).

     “Notice of Issuance” has the meaning specified in Section 2.03(a).

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

     “Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56,
signed into law October 26, 2001.

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

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

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

12

 

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

     “Post-Petition Interest” has the meaning specified in Section 7.06.

     “Public Debt Rating” means, as of any date, the rating that has been most
recently announced by either S&P or Moody’s, as the case may be, for any class of non-credit
enhanced long-term senior unsecured debt issued by the Borrower or, if any such rating
agency shall have issued more than one such rating, the lowest such rating issued by such
rating agency. For purposes of the foregoing, (a) if only one of S&P and Moody’s shall have
in effect a Public Debt Rating, the Applicable Margin, the Applicable Percentage and the
Applicable Utilization Fee shall be determined by reference to the available rating; (b) if
neither S&P nor Moody’s shall have in effect a Public Debt Rating, the Applicable Margin,
the Applicable Percentage and the Applicable Utilization Fee will be set in accordance with
Level 6 under the definition of “Applicable Margin”, “Applicable Percentage”
or “Applicable Utilization Fee”, as the case may be; (c) if the ratings established
by S&P and Moody’s shall fall within different levels, the Applicable Margin, the Applicable
Percentage and the Applicable Utilization Fee shall be based upon the higher rating unless
such ratings differ by two or more levels, in which case the applicable level will be deemed
to be one level above the lower of such levels; (d) if any rating established by S&P or
Moody’s shall be changed, such change shall be effective as of the date on which such change
is first announced publicly by the rating agency making such change; and (e) if S&P or
Moody’s shall change the basis on which ratings are established, each reference to the
Public Debt Rating announced by S&P or Moody’s, as the case may be, shall refer to the then
equivalent rating by S&P or Moody’s, as the case may be.

     “Ratable Share” of any amount means, with respect to any Lender at any time,
the product of such amount times a fraction the numerator of which is the amount of
such Lender’s Revolving Credit Commitment at such time (or, if the Revolving Credit
Commitments shall have been terminated pursuant to Section 2.05 or 6.01, such Lender’s
Revolving Credit Commitment as in effect immediately prior to such termination) and the
denominator of which is the aggregate amount of all Revolving Credit Commitments at such
time (or, if the Revolving Credit Commitments shall have been terminated pursuant to Section
2.05 or 6.01, the aggregate amount of all Revolving Credit Commitments as in effect
immediately prior to such termination).

     “Reference Banks” means Citibank, JPMorgan Chase Bank, N.A. and Bank of
America, N.A.

     “Register” has the meaning specified in Section 9.07(d).

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

     “Reportable Event” means any “reportable event”, as defined in Section 4043 of
ERISA, other than an event for which the 30-day notice period has been waived.

     “Required Lenders” means at any time Lenders owed at least a majority in
interest of the then aggregate unpaid principal amount of the Advances owing to Lenders, or,
if no such principal amount is then outstanding, Lenders having at least a majority in
interest of the Revolving Credit Commitments.

13

 

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

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other equity interest of
the Borrower or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancellation or termination of any such capital stock
or other equity interest or of any option, warrant or other right to acquire any such
capital stock or other equity interest, or on account of any return of capital to the
Borrower’s stockholders, partners or members (or the equivalent Persons thereof).

     “Revolving Credit Commitment” means as to any Lender (a) the Dollar amount set
forth opposite such Lender’s name on Schedule I hereto as such Lender’s “Revolving Credit
Commitment”, (b) if such Lender has become a Lender hereunder pursuant to an Assumption
Agreement, the Dollar amount set forth in such Assumption Agreement or (c) if such Lender
has entered into an Assignment and Acceptance, the Dollar amount set forth for such Lender
in the Register maintained by the Agent pursuant to Section 9.07(d), as such amount may be
reduced pursuant to Section 2.05 or increased pursuant to Section 2.18.

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

     “Single Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Borrower or any ERISA
Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so
maintained and in respect of which the Borrower or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be terminated.

     “Spin Transaction” means (i) the distribution of HII’s entire ownership
interest in the Borrower through a pro-rata distribution of all of the outstanding shares of
the Borrower owned by HII on or about the Effective Date to the holders of HII’s common
stock, pursuant to the terms and subject to the conditions set forth in the Distribution
Agreement, (ii) the execution, delivery and performance of the Distribution Agreement and
the agreements related thereto, including but not limited to the Farm Agreement, the Airport
Access and Use Agreement, the employee matters agreement, the judgment sharing agreement,
the tax sharing agreement, the shared services agreements and the transitional services
agreements and (iii) the payment of a dividend in the amount of $250,000,000 to HII by the
Borrower on or about the Effective Date.

     “Subordinated Obligations” has the meaning specified in Section 7.06.

     “Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50% of the
shares of securities or other interests having ordinary voting power to elect a majority of
the Board of Directors or other governing body (irrespective of whether at the time capital
stock, securities or other interests of any other class or classes of such entity shall or
might have voting power upon the occurrence of any contingency) are at the time beneficially
owned, or the management of which

14

 

is otherwise controlled, directly or indirectly, by such Person, by such Person and one
or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries.

     “Substantially-Owned Subsidiary” means any Person at least 90% of the capital
stock or other equity interests of which are directly or indirectly owned by the Borrower.

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

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

     “Termination Date” means the earlier of (a) March 28, 2013, subject to the
extension thereof pursuant to Section 2.19 and (b) the date of termination in whole of the
Commitments pursuant to Section 2.05 or 6.01; provided, however, that the
Termination Date of any Lender that is a Non-Consenting Lender to any requested extension
pursuant to Section 2.19 shall be the Termination Date in effect immediately prior to the
applicable Extension Date for all purposes of this Agreement.

     “Unaudited Financial Statements” means the unaudited consolidated balance sheet
of the Borrower and its Subsidiaries as filed in the Form 10 filing with the SEC for the
quarter ended December 31, 2007, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter of the Borrower and
its Subsidiaries, including the notes thereto.

     “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension
Plan’s assets, determined in accordance with the assumptions used for funding the Pension
Plan pursuant to Section 412 of the Internal Revenue Code for the applicable plan year.

     “Unissued Letter of Credit Commitment” means, with respect to any Issuing Bank,
the obligation of such Issuing Bank to issue Letters of Credit for the account of the
Borrower or its specified Subsidiaries in an amount equal to the excess of (a) the amount of
its Letter of Credit

15

 

Commitment over (b) the aggregate Available Amount of all Letters of Credit issued by
such Issuing Bank.

     “Unused Commitment” means, with respect to each Lender at any time, (a) such
Lender’s Revolving Credit Commitment at such time minus (b) the sum of (i) the
aggregate principal amount of all Advances made by such Lender (in its capacity as a Lender)
and outstanding at such time, plus (ii) such Lender’s Ratable Share of (A) the
aggregate Available Amount of all the Letters of Credit outstanding at such time and (B) the
aggregate principal amount of all Advances made by each Issuing Bank pursuant to Section
2.03(c) that have not been ratably funded by such Lender and outstanding at such time.

     “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by the happening
of such a contingency.

          SECTION 1.02. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”.

          SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles consistent with
those applied in the preparation of the financial statements referred to in Section 4.01(e)
(“GAAP”).

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

          SECTION 2.01. The Advances and Letters of Credit. (a) The Advances. Each
Lender severally agrees, on the terms and conditions hereinafter set forth, to make Advances to the
Borrower from time to time on any Business Day during the period from the Effective Date until the
Termination Date applicable to such Lender in an amount not to exceed such Lender’s Unused
Commitment. Each Borrowing shall be in an amount not less than the Borrowing Minimum or the
Borrowing Multiple in excess thereof and shall consist of Advances of the same Type and in the same
currency made on the same day by the Lenders ratably according to their respective Revolving Credit
Commitments. Within the limits of each Lender’s Revolving Credit Commitment, the Borrower may
borrow under this Section 2.01(a), prepay pursuant to Section 2.10 and reborrow under this Section
2.01(a).

          (b) Letters of Credit. Each Issuing Bank agrees, on the terms and conditions
hereinafter set forth, in reliance upon the agreements of the other Lenders set forth in this
Agreement, to issue letters of credit (each, a “Letter of Credit”) for the account of the
Borrower and its specified Subsidiaries from time to time on any Business Day during the period
from the Effective Date until 30 days before the Termination Date applicable to such Issuing Bank
in an aggregate Available Amount (i) for all Letters of Credit issued by each Issuing Bank not to
exceed at any time the lesser of (x) the Letter of Credit Facility at such time and (y) such
Issuing Bank’s Letter of Credit Commitment at such time and (ii) for each such Letter of Credit not
to exceed an amount equal to the Unused Commitments of the Lenders at such time. No Letter of
Credit shall have an expiration date (including all rights of the Borrower or the beneficiary to
require renewal) later than 10 Business Days before the final Termination
Date, provided that no Letter of Credit may expire after the Termination Date of any
Non-Consenting Lender if, after giving effect to such issuance, the aggregate Revolving Credit
Commitments of the Consenting Lenders (including any replacement Lenders) for the period following
such Termination Date

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would be less than the Available Amount of the Letters of Credit expiring
after such Termination Date. Within the limits referred to above, the Borrower may from time to
time request the issuance of Letters of Credit under this Section 2.01(b). Each letter of credit
listed on Schedule 2.01(b) shall be deemed to constitute a Letter of Credit issued hereunder, and
each Lender that is an issuer of such a Letter of Credit shall, for purposes of Section 2.03, be
deemed to be an Issuing Bank for each such letter of credit, provided than any renewal or
replacement of any such letter of credit shall be issued by an Issuing Bank pursuant to the terms
of this Agreement.

          SECTION 2.02. Making the Advances. (a) Except as otherwise provided in Section
2.03(c), each Borrowing shall be made on notice, given not later than (x) 11:00 A.M. (New York City
time) on the third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of Eurodollar Rate Advances or (y) 11:00 A.M. (New York City time) on the date
of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the
Borrower to the Agent, which shall give to each Lender prompt notice thereof by telecopier. Each
such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed
immediately in writing, or telecopier in substantially the form of Exhibit B hereto, specifying
therein the requested (i) date of such Borrowing, (ii) Type of Advances comprising such Borrowing,
(iii) aggregate amount of such Borrowing, and (iv) in the case of a Borrowing consisting of
Eurodollar Rate Advances, initial Interest Period for each such Advance. Each Lender shall, before
1:00 P.M. (New York City time) on the date of such Borrowing, make available for the account of its
Applicable Lending Office to the Agent at the applicable Agent’s Account, in same day funds, such
Lender’s ratable portion of such Borrowing. After the Agent’s receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article III, the Agent will make such funds
available to the Borrower at the Agent’s address referred to in Section 9.02 or at the applicable
Payment Office, as the case may be.

          (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrower may not
select Eurodollar Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less
than the Borrowing Minimum or if the obligation of the Lenders to make Eurodollar Rate Advances
shall then be suspended pursuant to Section 2.08 or 2.12 and (ii) the Eurodollar Rate Advances may
not be outstanding as part of more than six separate Borrowings.

          (c) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of
any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurodollar Rate
Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by
such Lender as a result of any failure to fulfill on or before the date specified in such Notice of
Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without
limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such Lender to fund the
Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such
failure, is not made on such date.

          (d) Unless the Agent shall have received notice from a Lender prior to the time of any
Borrowing that such Lender will not make available to the Agent such Lender’s ratable portion of
such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent
on the date of such Borrowing in accordance with subsection (a) of this Section 2.02, as
applicable, and the Agent may, in reliance upon such assumption, make available to the Borrower on
such date a corresponding amount. If and to the extent that such Lender shall not have so made
such ratable portion
available to the Agent, such Lender and the Borrower severally agree to repay to the Agent
forthwith on demand such corresponding amount together with interest thereon, for each day from the
date such amount is made available to the Borrower until the date such amount is repaid to the
Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to the Advances
comprising such Borrowing

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and (ii) in the case of such Lender, the Federal Funds Rate. If such
Lender shall repay to the Agent such corresponding amount, such amount so repaid shall constitute
such Lender’s Advance as part of such Borrowing for purposes of this Agreement.

          (e) The failure of any Lender to make the Revolving Credit to be made by it as part of any
Borrowing shall not relieve any other Lender of its obligation hereunder to make its Advance on the
date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to
make the Advance to be made by such other Lender on the date of any Borrowing.

          SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit.
(a) Request for Issuance. (i) Each Letter of Credit shall be issued upon notice, given
not later than 11:00 A.M. (New York City time) on the fifth Business Day prior to the date of the
proposed Issuance of such Letter of Credit (or on such shorter notice as the applicable Issuing
Bank may agree), by the Borrower to any Issuing Bank, and such Issuing Bank shall give the Agent
prompt notice thereof. Each such notice by the Borrower of Issuance of a Letter of Credit (a
“Notice of Issuance”) shall be by telecopier or telephone, confirmed immediately in
writing, specifying therein the requested (A) date of such Issuance (which shall be a Business
Day), (B) Available Amount of such Letter of Credit, (C) expiration date of such Letter of Credit,
(D) name and address of the beneficiary of such Letter of Credit and (E) form of such Letter of
Credit, and such Letter of Credit shall be issued pursuant to such application and agreement for
letter of credit as such Issuing Bank and the Borrower shall agree for use in connection with such
requested Letter of Credit (a “Letter of Credit Agreement”). If the requested form of such
Letter of Credit is acceptable to such Issuing Bank in its reasonable discretion (it being
understood that any such form shall have only explicit documentary conditions to draw and shall not
include discretionary conditions), such Issuing Bank will, upon fulfillment of the applicable
conditions set forth in Section 3.02, make such Letter of Credit available to the Borrower at its
office referred to in Section 9.02 or as otherwise agreed with the Borrower in connection with such
Issuance. In the event and to the extent that the provisions of any Letter of Credit Agreement
shall conflict with this Agreement, the provisions of this Agreement shall govern.

          (b) Participations. By the Issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing or decreasing the amount thereof) and without any further action on the
part of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender,
and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit
equal to such Lender’s Ratable Share of the Available Amount of such Letter of Credit. The
Borrower hereby agrees to each such participation. In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Agent, for the
account of such Issuing Bank, such Lender’s Ratable Share of each drawing made under a Letter of
Credit funded by such Issuing Bank and not reimbursed by the Borrower on the date made, or of any
reimbursement payment required to be refunded to the Borrower for any reason, which amount will be
advanced, and deemed to be an Advance to the Borrower hereunder, regardless of the satisfaction of
the conditions set forth in Section 3.03. Each Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute
and unconditional and shall not be affected by any circumstance whatsoever, including any
amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a
Default or reduction or termination of the Revolving Credit Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender
further acknowledges and agrees that its participation in each Letter of Credit will be
automatically adjusted to reflect such Lender’s Ratable Share of the Available Amount of such
Letter of Credit at each time such Lender’s Revolving Credit Commitment is amended pursuant to a
Commitment Increase in accordance with Section 2.18, an assignment in accordance with Section 9.07
or otherwise pursuant to this Agreement.

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          (c) Drawing and Reimbursement. The payment by an Issuing Bank of a draft drawn under
any Letter of Credit which is not reimbursed by the Borrower on the date made shall constitute for
all purposes of this Agreement the making by any such Issuing Bank of an Advance, which shall be a
Base Rate Advance, in the amount of such draft, without regard to whether the making of such an
Advance would exceed such Issuing Bank’s Unused Commitment. Each Issuing Bank shall give prompt
notice of each drawing under any Letter of Credit issued by it to the Borrower and the Agent. Upon
written demand by such Issuing Bank made to the Agent, with a copy of such demand to the Borrower,
which the Agent shall promptly forward to each Lender, each Lender shall pay to the Agent such
Lender’s Ratable Share of such outstanding Advance pursuant to Section 2.03(b). Each Lender
acknowledges and agrees that its obligation to make Advances 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 Revolving Credit Commitments, and
that each such payment shall be made without any offset, abatement, withholding or reduction
whatsoever. Promptly after receipt thereof, the Agent shall transfer such funds to such Issuing
Bank. Each Lender agrees to fund its Ratable Share of an outstanding Advance on (i) the Business
Day on which demand therefor is made by such Issuing Bank, provided that notice of such
demand is given not later than 11:00 A.M. (New York City time) on such Business Day, or (ii) the
first Business Day next succeeding such demand if notice of such demand is given after such time.
If and to the extent that any Lender shall not have so made the amount of such Advance available to
the Agent, such Lender agrees to pay to the Agent forthwith on demand such amount together with
interest thereon, for each day from the date of demand by any such Issuing Bank until the date such
amount is paid to the Agent, at the Federal Funds Rate for its account or the account of such
Issuing Bank, as applicable. If such Lender shall pay to the Agent such amount for the account of
any such Issuing Bank on any Business Day, such amount so paid in respect of principal shall
constitute an Advance made by such Lender on such Business Day for purposes of this Agreement, and
the outstanding principal amount of the Advance made by such Issuing Bank shall be reduced by such
amount on such Business Day.

          (d) Letter of Credit Reports. Each Issuing Bank shall furnish (A) to the Agent (with
a copy to the Borrower) on the first Business Day of each month a written report summarizing the
Issuance and expiration dates of Letters of Credit issued by such Issuing Bank during the preceding
month and drawings during such month under all Letters of Credit issued by such Issuing Bank and
(B) to the Agent (with a copy to the Borrower) on the first Business Day of each calendar quarter a
written report setting forth the average daily aggregate Available Amount during the preceding
calendar quarter of all Letters of Credit issued by such Issuing Bank. The Agent shall promptly
forward to each Lender each report delivered to it in accordance with this Section 2.03(d).

          (e) Failure to Make Advances. The failure of any Lender to make the Advance to be
made by it on the date specified in Section 2.03(c) shall not relieve any other Lender of its
obligation hereunder to make its Advance on such date, but no Lender shall be responsible for the
failure of any other Lender to make the Advance to be made by such other Lender on such date.

          SECTION 2.04. Fees. (a) Facility Fee. The Borrower agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of such Lender’s
Revolving Credit Commitment from the earlier of (x) the date that is 60 days after the date hereof
and (y) the Effective Date, in the case of each Initial Lender and from the effective date
specified
in the Assumption Agreement or in the Assignment and Acceptance pursuant to which it became a
Lender (but no sooner than the date upon which such fee becomes payable to the Initial Lenders) in
the case of each other Lender until the Termination Date applicable to such Lender at a rate per
annum equal to the Applicable Percentage in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and December, commencing June 30, 2008, and on the
final Termination Date.

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          (b) Letter of Credit Fees. (i) The Borrower shall pay to the Agent for the account
of each Lender a commission on such Lender’s Ratable Share of the average daily aggregate Available
Amount of all Letters of Credit issued for the account of the Borrower and outstanding from time to
time at a rate per annum equal to the sum of (x) the Applicable Margin for Eurodollar Rate Advances
in effect from time to time during such calendar quarter plus (y) the Applicable
Utilization Fee in effect from time to time, payable in arrears quarterly on the last day of each
March, June, September and December, commencing with the quarter ended June 30, 2008, and on the
final Termination Date; provided that the Applicable Margin shall be 2% above the
Applicable Margin in effect upon the occurrence and during the continuation of an Event of Default
if the Borrower is required to pay Default Interest pursuant to Section 2.07(b).

     (ii) The Borrower shall pay to each Issuing Bank, for its own account, a fronting fee
equal to 0.125% per annum, payable in arrears quarterly five days after the last day of each
March, June, September and December, commencing with the quarter ended June 30, 2008, and
such other commissions, issuance fees, transfer fees and other fees and charges in
connection with the Issuance or administration of each Letter of Credit as the Borrower and
such Issuing Bank shall agree.

          (c) Agent’s Fees. The Borrower shall pay to the Agent for its own account such fees
as may from time to time be agreed between the Borrower and the Agent.

          SECTION 2.05. Termination or Reduction of the Commitments. The Borrower shall have
the right, upon at least three Business Days’ notice to the Agent, to terminate in whole or
permanently reduce ratably in part the Unused Commitments or the Unissued Letter of Credit
Commitments of the Lenders, provided that each partial reduction shall be in the aggregate
amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof.

          SECTION 2.06. Repayment of Advances and Letter of Credit Drawings. (a)
Advances. The Borrower shall repay to the Agent for the ratable account of each Lender on
the Termination Date applicable to such Lender the aggregate principal amount of the Advances made
to it by such Lender and then outstanding.

          (b) Letter of Credit Drawings. The obligations of the Borrower under any Letter of
Credit Agreement and any other agreement or instrument relating to any Letter of Credit issued for
the account of the Borrower shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement, such Letter of Credit Agreement and such other
agreement or instrument under all circumstances, including, without limitation, the following
circumstances (it being understood that any such payment by the Borrower is without prejudice to,
and does not constitute a waiver of, any rights the Borrower might have or might acquire as a
result of the payment by any Lender of any draft or the reimbursement by the Borrower thereof):

     (i) any lack of validity or enforceability of this Agreement, any Note, any Letter of
Credit Agreement, any Letter of Credit or any other agreement or instrument relating thereto
(all of the foregoing being, collectively, the “L/C Related Documents”);

     (ii) any change in the time, manner or place of payment of, or in any other term of,
all or any of the obligations of the Borrower in respect of any L/C Related Document or any
other amendment or waiver of or any consent to departure from all or any of the L/C Related
Documents;

20

 

     (iii) the existence of any claim, set-off, defense or other right that the Borrower may
have at any time against any beneficiary or any transferee of a Letter of Credit (or any
Persons for which any such beneficiary or any such transferee may be acting), any Issuing
Bank, the Agent, any Lender or any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated transaction;

     (iv) any statement or any other document presented under a Letter of Credit proving to
be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

     (v) payment by any Issuing Bank under a Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter of Credit;

     (vi) any exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any guarantee, for all or any of the
obligations of the Borrower in respect of the L/C Related Documents; or

     (vii) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including, without limitation, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Borrower or a guarantor.

          SECTION 2.07. Interest on Advances. (a) Scheduled Interest. The Borrower
shall pay interest on the unpaid principal amount of each Advance made to it and owing to each
Lender from the date of such Advance until such principal amount shall be paid in full, at the
following rates per annum:

     (i) Base Rate Advances. During such periods as such Advance is a Base Rate
Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from
time to time plus (y) the Applicable Margin in effect from time to time plus
(z) the Applicable Utilization Fee in effect from time to time, payable in arrears quarterly
on the last day of each March, June, September and December during such periods and on the
date such Base Rate Advance shall be Converted or paid in full.

     (ii) Eurodollar Rate Advances. During such periods as such Advance is a
Eurodollar Rate Advance, a rate per annum equal at all times during each Interest Period for
such Advance to the sum of (x) the Eurodollar Rate for such Interest Period for such Advance
plus (y) the Applicable Margin in effect from time to time plus (z) the
Applicable Utilization Fee in effect from time to time, payable in arrears on the last day
of such Interest Period and, if such Interest Period has a duration of more than three
months, on each day that occurs during such Interest Period every three months from the
first day of such Interest Period and on the date such Eurodollar Rate Advance shall be
Converted or paid in full.

          (b) Default Interest. Upon the occurrence and during the continuance of an Event of
Default under Section 6.01(a), the Agent may, and upon the request of the Required Lenders shall,
require the Borrower to pay interest (“Default Interest”) on (i) the unpaid overdue
principal amount of each Advance owing to each Lender, payable in arrears on the dates referred to
in clause (a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per annum above the
rate per annum required to be paid on such Advance pursuant to clause (a)(i) or (a)(ii) above and
(ii) to the fullest extent permitted by law, the amount of any interest, fee or other amount
payable hereunder that is not paid when due, from the date such amount shall be due until such
amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and
on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required
to be paid on Base Rate Advances pursuant to clause (a)(i) above; provided,

21

 

however, that following acceleration of the Advances pursuant to Section 6.01, Default
Interest shall accrue and be payable hereunder whether or not previously required by the Agent.

          (c) Regulation D Compensation. Each Lender who is required under regulations of the
Board of Governors of the Federal Reserve System of the United States of America to maintain
reserves with respect to liabilities or assets consisting of or including Eurocurrency Liabilities,
may require the Borrower to pay, contemporaneously with each payment of interest on the Eurodollar
Advances, additional interest on the related Eurodollar Advance of such Lender at a rate per annum
determined by such Lender up to but not exceeding the excess of (i)(A) the applicable Eurodollar
Rate divided by (B) one minus the Eurodollar Rate Reserve Percentage over (ii) the
applicable Eurodollar Rate. Any Lender wishing to require payment of such additional interest (x)
shall so notify the Borrower and the Agent, in which case such additional interest on the
Eurodollar Advances of such Lender shall be payable to such Lender at the place indicated in such
notice with respect to each Interest Period commencing at least three Business Days after the
giving of such notice and (y) shall notify the Borrower at least five Business Days prior to each
date on which interest is payable on the Eurodollar Advances of the amount then due it under this
Section.

          SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank agrees, if
requested by the Agent, to furnish to the Agent timely information for the purpose of determining
each Eurodollar Rate. If any one or more of the Reference Banks shall not furnish such timely
information to the Agent for the purpose of determining any such interest rate, the Agent shall
determine such interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Borrower and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section 2.07(a)(i) or (ii), and
the rate, if any, furnished by each Reference Bank for the purpose of determining the interest rate
under Section 2.07(a)(ii).

          (b) If, with respect to any Eurodollar Rate Advances, the Required Lenders notify the Agent
that (i) they are unable to obtain matching deposits in the London inter-bank market at or about
11:00 A.M. (London time) on the second Business Day before the making of a Borrowing in sufficient
amounts to fund their respective Advances as a part of such Borrowing during its Interest Period or
(ii) the Eurodollar Rate for any Interest Period for such Advances will not adequately reflect the
cost to such Required Lenders of making, funding or maintaining their respective Eurodollar Rate
Advances for such Interest Period, the Agent shall forthwith so notify the Borrower and the
Lenders, whereupon (A) the Borrower will, on the last day of the then existing Interest Period
therefor, either (x) prepay such Advances or (y) Convert such Advances into Base Rate Advances and
(B) the obligation of the Lenders to make, or to Convert Advances into, Eurodollar Rate Advances
shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances
causing such suspension no longer exist.

          (c) If the Borrower shall fail to select the duration of any Interest Period for any
Eurodollar Rate Advances in accordance with the provisions contained in the definition of “Interest
Period” in Section 1.01, the Agent will forthwith so notify the Borrower and the Lenders and
such Advances will automatically, on the last day of the then existing Interest Period therefor,
Convert into Base Rate Advances.

          (d) On the date on which the aggregate unpaid principal amount of Eurodollar Rate Advances
comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than the
Borrowing Minimum, such Advances shall automatically Convert into Base Rate Advances.

          (e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period
therefor,

22

 

be Converted into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to Convert
Advances into, Eurodollar Rate Advances shall be suspended.

          (f) If Reuters LIBOR01 Page (and any successor page) is unavailable and no Reference Bank has
furnished timely information to the Agent for determining the Eurodollar Rate for any Eurodollar
Rate Advances after the Agent has requested such information,

     (i) the Agent shall forthwith notify the Borrower and the Lenders that the interest
rate cannot be determined for such Eurodollar Rate Advances,

     (ii) each such Advance will automatically, on the last day of the then existing
Interest Period therefor, Convert into a Base Rate Advance (or if such Advance is then a
Base Rate Advance, will continue as a Base Rate Advance), and

     (iii) the obligation of the Lenders to make Eurodollar Rate Advances or to Convert
Advances into Eurodollar Rate Advances shall be suspended until the Agent shall notify the
Borrower and the Lenders that the circumstances causing such suspension no longer exist.

          SECTION 2.09. Optional Conversion of Advances. The Borrower may on any Business Day,
upon notice given to the Agent not later than 11:00 A.M. (New York City time) on the third Business
Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.08 and
2.12, Convert all Advances of one Type comprising the same Borrowing into Advances of the other
Type; provided, however, that any Conversion of Eurodollar Rate Advances into Base
Rate Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate
Advances, any Conversion of Base Rate Advances into Eurodollar Rate Advances shall be in an amount
not less than the minimum amount specified in Section 2.02(b) and no Conversion of any Advances
shall result in more separate Borrowings than permitted under Section 2.02(b). Each such notice of
a Conversion shall, within the restrictions specified above, specify (i) the date of such
Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into Eurodollar Rate
Advances, the duration of the initial Interest Period for each such Advance. Each notice of
Conversion shall be irrevocable and binding on the Borrower.

          SECTION 2.10. Optional Prepayments of Advances. The Borrower may, upon notice at
least two Business Days’ prior to the date of such prepayment, in the case of Eurodollar Rate
Advances, and not later than 11:00 A.M. (New York City time) on the date of such prepayment, in the
case of Base Rate Advances, to the Agent stating the proposed date and aggregate principal amount
of the prepayment, and if such notice is given the Borrower shall, prepay the outstanding principal
amount of the Advances comprising part of the same Borrowing in whole or ratably in part, together
with accrued interest to the date of such prepayment on the principal amount prepaid;
provided, however, that (x) each partial prepayment of Advances shall be in an
aggregate principal amount of not less than the Borrowing Minimum or a Borrowing Multiple in excess
thereof and (y) in the event of any such prepayment of a Eurodollar Rate Advance, the Borrower
shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 9.04(c).

          SECTION 2.11. Increased Costs. (a) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) the compliance with any
guideline or request from any central bank or other governmental authority including, without
limitation, any agency of the European Union or similar monetary or multinational authority
(whether or not having the force of law), there shall be any increase in the cost to any Lender of
agreeing to make or making, funding or maintaining Eurodollar Rate Advances or of agreeing to issue
or of issuing or maintaining or participating in Letters of Credit (excluding for purposes of this
Section 2.11 any such increased costs resulting from

23

 

(i) Taxes or Other Taxes (as to which Section 2.14
shall govern) and (ii) changes in the basis of taxation of overall net income or overall gross
income by the United States or by the foreign jurisdiction or state under the laws of which such
Lender is organized or has its Applicable Lending Office or any political subdivision thereof),
then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand
to the Agent), pay to the Agent for the account of such Lender additional amounts sufficient to
compensate such Lender for such increased cost; provided, however, that before
making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if
the making of such designation would avoid the need for, or reduce the amount of, such increased
cost and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender. A certificate as to the amount of such increased cost, submitted to the Borrower and the
Agent by such Lender, shall be conclusive and binding for all purposes, absent manifest error.

          (b) If any Lender determines that compliance with any law or regulation or any guideline or
request from any central bank or other governmental authority (whether or not having the force of
law) affects or would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such capital is increased
by or based upon the existence of such Lender’s commitment to lend or to issue or participate in
Letters of Credit hereunder and other commitments of such type or the issuance or maintenance of or
participation in the Letters of Credit (or similar contingent obligations), then, upon demand by
such Lender (with a copy of such demand to the Agent), the Borrower shall pay to the Agent for the
account of such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender or such corporation in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be allocable to the
existence of such Lender’s commitment to lend or to issue or participate in Letters of Credit
hereunder or to the issuance or maintenance of or participation in any Letters of Credit. A
certificate as to such amounts submitted to the Borrower and the Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

          (c) Failure or delay on the part of any Lender to demand compensation pursuant to this Section
shall not constitute a waiver of such Lender’s right to demand such compensation; provided
that the Borrower shall not be required to compensate such Lender pursuant to this Section for any
increased costs or reductions incurred more than 180 days prior to the date that such Lender
notifies the Borrower of the change in law or circumstance giving rise to such increased costs or
reductions and of such Lender’s intention to claim compensation therefor; provided
further that, if the change in law or circumstance 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 2.12. Illegality. Notwithstanding any other provision of this Agreement, if
any Lender shall notify the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for such Lender or its Eurodollar Lending
Office to perform its obligations hereunder to make Eurodollar Rate Advances or to fund or maintain
Eurodollar Rate Advances hereunder, the obligation of such Lender to make Eurodollar Rate Advances
or to Convert Advances into Eurodollar Rate Advances shall be suspended until the Agent shall
notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.
Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with a copy to the
Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor, if such Lender may lawfully continue
to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully
continue to maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the
Borrower shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to designate a different Applicable
Lending Office if such designation will avoid the need

24

 

for such notice and will not, in the good
faith judgment of such Lender, otherwise be materially disadvantageous to such Lender. As to any
such affected Lender, any Eurodollar Rate Loan will be funded as a Base Rate Loan.

          SECTION 2.13. Payments and Computations. (a) The Borrower shall make each payment
hereunder, irrespective of any right of counterclaim or set-off, not later than 11:00 A.M. (New
York City time) on the day when due in Dollars to the Agent at the applicable Agent’s Account in
same day funds. The Agent will promptly thereafter cause to be distributed like funds relating to
the payment of principal or interest, fees or commissions ratably (other than amounts payable
pursuant to Section 2.04(b), 2.11, 2.14 or 9.04(c)) to the Lenders for the account of their
respective Applicable Lending Offices, and like funds relating to the payment of any other amount
payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case
to be applied in accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment Increase pursuant to Section 2.18 or an extension of
the Termination Date pursuant to Section 2.19, and upon the Agent’s receipt of such Lender’s
Assumption Agreement and recording of the information contained therein in the Register, from and
after the applicable Increase Date or Extension Date, as the case may be, the Agent shall make all
payments hereunder and under any Notes issued in connection therewith in respect of the interest
assumed thereby to the Assuming Lender. Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to Section 9.07(c), from
and after the effective date specified in such Assignment and Acceptance, the Agent shall make all
payments hereunder and under the Notes in respect of the interest assigned thereby to the Lender
assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly between themselves.

          (b) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due hereunder or under the Note held by such Lender, to charge from time to
time against any or all of the Borrower’s accounts with such Lender any amount so due.

          (c) All computations of interest based on the Base Rate shall be made by the Agent on the
basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on
the Eurodollar Rate or the Federal Funds Rate and of fees and Letter of Credit commissions shall be
made by the Agent on the basis of a year of 360 days, in each case for the actual number of days
(including the first day but excluding the last day) occurring in the period for which such
interest, fees or commissions are payable. Each determination by the Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest error.

          (d) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other
than a Business Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest, fee or
commission, as the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurodollar Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding Business Day.

          (e) Unless the Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Lenders hereunder that the Borrower will not make such payment in full,
the Agent may assume that the Borrower has made such payment in full to the Agent on such date and
the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due
date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall
not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith
on demand such amount distributed to such Lender together with interest thereon, for each day
from the date

25

 

such amount is distributed to such Lender until the date such Lender repays such
amount to the Agent, at the Federal Funds Rate.

          SECTION 2.14. Taxes. (a) Any and all payments by the Borrower to or for the account
of any Lender or the Agent hereunder or under the Notes or any other documents to be delivered
hereunder shall be made, in accordance with Section 2.13 or the applicable provisions of such other
documents, free and clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender and the Agent, taxes imposed on its overall net
income, and franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction under
the laws of which such Lender or the Agent (as the case may be) is organized or any political
subdivision thereof and, in the case of each Lender, taxes imposed on its overall net income, and
franchise taxes imposed on it in lieu of net income taxes, by the jurisdiction of such Lender’s
Applicable Lending Office or any political subdivision thereof (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder
or under the Notes being hereinafter referred to as “Taxes”). If the Borrower shall be
required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any
Note or any other documents to be delivered hereunder to any Lender or the Agent, (i) the sum
payable shall be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.14) such Lender or
the Agent (as the case may be) receives an amount equal to the sum it would have received had no
such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower
shall pay the full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.

          (b) In addition, the Borrower shall pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from any payment made
hereunder or under the Notes or any other documents to be delivered hereunder or from the
execution, delivery or registration of, performing under, or otherwise with respect to, this
Agreement or the Notes or any other documents to be delivered hereunder (hereinafter referred to as
“Other Taxes”).

          (c) The Borrower shall indemnify each Lender and the Agent for and hold it harmless against
the full amount of Taxes or Other Taxes (including, without limitation, taxes of any kind imposed
or asserted by any jurisdiction on amounts payable under this Section 2.14) imposed on or paid by
such Lender or the Agent (as the case may be) and any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30
days from the date such Lender or the Agent (as the case may be) makes written demand thereof.

          (d) Within 30 days after the date of any payment of Taxes, the Borrower shall furnish to the
Agent, at its address referred to in Section 9.02, the original or a certified copy of a receipt
evidencing such payment to the extent such a receipt is issued therefor, or other written proof of
payment thereof that is reasonably satisfactory to the Agent. In the case of any payment hereunder
or under the Notes or any other documents to be delivered hereunder by or on behalf of the Borrower
through an account or branch outside the United States or by or on behalf of the Borrower by a
payor that is not a United States person, if the Borrower determines that no Taxes are payable in
respect thereof, the Borrower shall furnish, or shall cause such payor to furnish, to the Agent, at
such address, an opinion of counsel acceptable to the Agent stating that such payment is exempt
from Taxes. For purposes of this subsection (d) and subsection (e), the terms “United
States” and “United States person” shall have the meanings specified in Section 7701 of
the Internal Revenue Code.

          (e) Each Lender organized under the laws of a jurisdiction outside the United States, on or
prior to the date of its execution and delivery of this Agreement in the case of each Initial
Lender and on the date of the Assumption Agreement or the Assignment and Acceptance pursuant to
which it

26

 

becomes a Lender in the case of each other Lender, and from time to time thereafter as
reasonably requested in writing by the Borrower (but only so long as such Lender remains lawfully
able to do so), shall provide each of the Agent and the Borrower with two original Internal Revenue
Service Forms W-8BEN or W-8ECI, as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender is exempt from or entitled to a reduced rate
of United States withholding tax on payments pursuant to this Agreement or the Notes. If the form
provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a
United States interest withholding tax rate in excess of zero, withholding tax at such rate shall
be considered excluded from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be
considered excluded from Taxes for periods governed by such form; provided,
however, that, if at the date of the Assignment and Acceptance pursuant to which a Lender
assignee becomes a party to this Agreement, the Lender assignor was entitled to payments under
subsection (a) in respect of United States withholding tax with respect to interest paid at such
date, then, to such extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) United States withholding
tax, if any, applicable with respect to the Lender assignee on such date. If any form or document
referred to in this subsection (e) requires the disclosure of information, other than information
necessary to compute the tax payable and information required on the date hereof by Internal
Revenue Service Form W-8BEN or W-8ECI, that the Lender reasonably considers to be confidential, the
Lender shall give notice thereof to the Borrower and shall not be obligated to include in such form
or document such confidential information.

          (f) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form, certificate or other document described in Section 2.14(e) (other
than if such failure is due to a change in law, or in the interpretation or application
thereof, occurring subsequent to the date on which a form, certificate or other document originally
was required to be provided, or if such form, certificate or other document otherwise is not
required under subsection (e) above), such Lender shall not be entitled to indemnification under
Section 2.14(a) or (c) with respect to Taxes imposed by the United States by reason of such
failure; provided, however, that should a Lender become subject to Taxes because of
its failure to deliver a form, certificate or other document required hereunder, the Borrower shall
take such steps as the Lender shall reasonably request to assist the Lender to recover such Taxes.

          (g) If any Lender determines, in its sole discretion, that it has actually and finally
realized, by reason of a refund of any Taxes paid or reimbursed by the Borrower pursuant to
subjection (a) or (c) above in respect of payments under the Credit Agreement or the Notes, a
current monetary benefit that it would otherwise not have obtained, and that would result in the
total payments under this Section 2.14 exceeding the amount needed to make such Lender whole, such
Lender shall pay to the Borrower, with reasonable promptness following the date on which it
actually realizes such benefit, an amount equal to the lesser of the amount of such benefit or the
amount of such excess, in each case net of all out-of-pocket expenses in securing such refund.

          SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Advances owing to it (other than (x) as payment of an Advance made by an Issuing
Bank pursuant to the first sentence of Section 2.03(c) or (y) pursuant to Section 2.11, 2.14 or
9.04(c)) in excess of its Ratable Share of payments on account of the Advances obtained by all the
Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the
Advances owing to them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such
purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender
the purchase price to the extent of such recovery together with an amount equal to

27

 

such Lender’s
ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to
(ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower
agrees that any Lender so purchasing a participation from another Lender pursuant to this Section
2.15 may, to the fullest extent permitted by law, exercise all its rights of payment (including the
right of set-off) with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.

          SECTION 2.16. Evidence of Debt. (a) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Advance owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time hereunder in respect of
Advances. The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of such
notice to the Agent) to the effect that a Note is required or appropriate in order for such Lender
to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to, or to
be made by, such Lender, the Borrower shall promptly execute and deliver to such Lender a Note
payable to the order of such Lender in a principal amount up to the Revolving Credit Commitment of
such Lender.

          (b) The Register maintained by the Agent pursuant to Section 9.07(d) shall include a control
account, and a subsidiary account for each Lender, in which accounts (taken together) shall be
recorded (i) the date and amount of each Borrowing made hereunder, the Type of Advances comprising
such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the terms of each
Assumption Agreement and each Assignment and Acceptance delivered to and accepted by it, (iii) the
amount of any principal or interest due and payable or to become due and payable from the Borrower
to each Lender hereunder and (iv) the amount of any sum received by the Agent from the Borrower
hereunder and each Lender’s share thereof.

          (c) Entries made in good faith by the Agent in the Register pursuant to subsection (b) above,
and by each Lender in its account or accounts pursuant to subsection (a) above, shall be
prima facie evidence of the amount of principal and interest due and payable or to
become due and payable from the Borrower to, in the case of the Register, each Lender and, in the
case of such account or accounts, such Lender, under this Agreement, absent manifest error;
provided, however, that the failure of the Agent or such Lender to make an entry,
or any finding that an entry is incorrect, in the Register or such account or accounts shall not
limit or otherwise affect the obligations of the Borrower under this Agreement.

          SECTION 2.17. Use of Proceeds. The proceeds of the Advances shall be available (and
the Borrower agrees that it shall use such proceeds) solely for the purposes set forth in Section
5.01(j) hereof.

          SECTION 2.18. Increase in the Aggregate Commitments. (a) The Borrower may, at any
time but in any event not more than once in any calendar year prior to the final Termination Date,
by notice to the Agent, request that the aggregate amount of the Commitment be increased by an
amount of $10,000,000 or an integral multiple thereof (each a “Commitment Increase”) to be
effective as of a date that is at least 90 days prior to the scheduled final Termination Date then
in effect (the “Increase Date”) as specified in the related notice to the Agent;
provided, however that (i) in no event shall the aggregate amount of the
Commitments at any time exceed $600,000,000 and (ii) on the date of any request by the Borrower for a Commitment
Increase and on the related Increase Date the applicable conditions set forth in Section 3.02 shall
be satisfied.

28

 

          (b) The Agent shall promptly notify the Lenders of a request by the Borrower for a Commitment
Increase, which notice shall include (i) the proposed amount of such requested Commitment Increase,
(ii) the proposed Increase Date and (iii) the date by which Lenders wishing to participate in the
Commitment Increase must commit to an increase in the amount of their respective Commitments (the
“Commitment Date”). Each Lender that is willing to participate in such requested
Commitment Increase (each an “Increasing Lender”) shall, in its sole discretion, give
written notice to the Agent on or prior to the Commitment Date of the amount by which it is willing
to increase its Commitment. If the Lenders notify the Agent that they are willing to increase the
amount of their respective Commitments by an aggregate amount that exceeds the amount of the
requested Commitment Increase, the requested Commitment Increase shall be allocated among the
Lenders willing to participate therein in such amounts as are agreed between the Borrower and the
Agent.

          (c) Promptly following each Commitment Date, the Agent shall notify the Borrower as to the
amount, if any, by which the Lenders are willing to participate in the requested Commitment
Increase. If the aggregate amount by which the Lenders are willing to participate in any requested
Commitment Increase on any such Commitment Date is less than the requested Commitment Increase,
then the Borrower may extend offers to one or more Eligible Assignees to participate in any portion
of the requested Commitment Increase that has not been committed to by the Lenders as of the
applicable Commitment Date; provided, however, that the Commitment of each such
Eligible Assignee shall be in an amount of $5,000,000 or an integral multiple of $1,000,000 in
excess thereof.

          (d) On each Increase Date, each Eligible Assignee that accepts an offer to participate in a
requested Commitment Increase in accordance with Section 2.18(b) (each such Eligible Assignee and
each Eligible Assignee that agrees to an extension of the Termination Date in accordance with
Section 2.19(c), an “Assuming Lender”) shall become a Lender party to this Agreement as of
such Increase Date with a Commitment equal to the portion of the Commitment Increase it has
accepted, and the Commitment of each Increasing Lender for such requested Commitment Increase shall
be so increased by such amount (or by the amount allocated to such Lender pursuant to the last
sentence of Section 2.18(b)) as of such Increase Date; provided, however, that the
Agent shall have received on or before such Increase Date the following, each dated such date:

     (i) (A) certified copies of resolutions of the Board of Directors of the Borrower or
the Executive Committee of such Board approving the Commitment Increase and the
corresponding modifications to this Agreement and (B) an opinion of counsel for the Borrower
(which may be in-house counsel), in substantially the form of Exhibit E hereto;

     (ii) an assumption agreement from each Assuming Lender, if any, in form and substance
satisfactory to the Borrower and the Agent (each an “Assumption Agreement”), duly
executed by such Eligible Assignee, the Agent and the Borrower; and

     (iii) confirmation from each Increasing Lender of the increase in the amount of its
Commitment in a writing satisfactory to the Borrower and the Agent.

On each Increase Date, upon fulfillment of the conditions set forth in the immediately preceding
sentence of this Section 2.18(d), the Agent shall notify the Lenders (including, without
limitation, each Assuming Lender) and the Borrower, on or before 1:00 P.M. (New York City time), by
telecopier, of the occurrence of the Commitment Increase to be effected on such Increase Date and
shall record in the Register the relevant information with respect to each Increasing Lender and
each Assuming Lender on such date.
Each Increasing Lender and each Assuming Lender shall, before 2:00 P.M. (New York City time) on the
Increase Date, make available for the account of its Applicable Lending Office to the Agent at the
Agent’s Account, in same day funds, in the case of such Assuming Lender, an amount equal to such

29

 

Assuming Lender’s ratable portion of the Borrowings then outstanding (calculated based on its
Revolving Credit Commitment as a percentage of the aggregate Revolving Credit Commitments
outstanding after giving effect to the relevant Commitment Increase) and, in the case of such
Increasing Lender, an amount equal to the excess of (i) such Increasing Lender’s ratable portion of
the Borrowings then outstanding (calculated based on its Revolving Credit Commitment as a
percentage of the aggregate Revolving Credit Commitments outstanding after giving effect to the
relevant Commitment Increase) over (ii) such Increasing Lender’s ratable portion of the Borrowings
then outstanding (calculated based on its Revolving Credit Commitment (without giving effect to the
relevant Commitment Increase) as a percentage of the aggregate Revolving Credit Commitments
(without giving effect to the relevant Commitment Increase). After the Agent’s receipt of such
funds from each such Increasing Lender and each such Assuming Lender, the Agent will promptly
thereafter cause to be distributed like funds to the other Lenders for the account of their
respective Applicable Lending Offices in an amount to each other Lender such that the aggregate
amount of the outstanding Advances owing to each Lender after giving effect to such distribution
equals such Lender’s ratable portion of the Borrowings then outstanding (calculated based on its
Revolving Credit Commitment as a percentage of the aggregate Revolving Credit Commitments
outstanding after giving effect to the relevant Commitment Increase).

          SECTION 2.19. Extension of Termination Date. (a) At least 45 days but not more than
60 days prior to the first and/or second anniversary of the Effective Date, the Borrower, by
written notice to the Agent, may request an extension of the Termination Date in effect at such
time by one year from its then scheduled expiration. The Agent shall promptly notify each Lender
of such request, and each Lender shall in turn, in its sole discretion, not later than 20 days
prior to the applicable anniversary date, notify the Borrower and the Agent in writing as to
whether such Lender will consent to such extension. If any Lender shall fail to notify the Agent
and the Borrower in writing of its consent to any such request for extension of the Termination
Date at least 20 days prior to the applicable anniversary date, such Lender shall be deemed to be a
Non-Consenting Lender with respect to such request. The Agent shall notify the Borrower not later
than 15 days prior to the applicable anniversary date of the decision of the Lenders regarding the
Borrower’s request for an extension of the Termination Date.

          (b) If all the Lenders consent in writing to any such request in accordance with subsection
(a) of this Section 2.19, the Termination Date in effect at such time shall, effective as at the
applicable anniversary date (the “Extension Date”), be extended for one year;
provided that on each Extension Date the applicable conditions set forth in Article III
shall be satisfied. If less than all of the Lenders consent in writing to any such request in
accordance with subsection (a) of this Section 2.19, the Termination Date in effect at such time
shall, effective as at the applicable Extension Date and subject to subsection (d) of this Section
2.19, be extended as to those Lenders that so consented (each a “Consenting Lender”) but
shall not be extended as to any other Lender (each a “Non-Consenting Lender”). To the
extent that the Termination Date is not extended as to any Lender pursuant to this Section 2.19 and
the Commitment of such Lender is not assumed in accordance with subsection (c) of this Section 2.19
on or prior to the applicable Extension Date, the Commitment of such Non-Consenting Lender shall
automatically terminate in whole on such unextended Termination Date without any further notice or
other action by the Borrower, such Lender or any other Person; provided that such
Non-Consenting Lender’s rights under Sections 2.11, 2.14 and 9.04, and its obligations under
Section 9.04, shall survive the Termination Date for such Lender as to matters occurring prior to
such date. It is understood and agreed that no Lender shall have any obligation whatsoever to
agree to any request made by the Borrower for any requested extension of the Termination Date.

          (c) If less than all of the Lenders consent to any such request pursuant to subsection (a) of
this Section 2.19, the Agent shall promptly so notify the Consenting Lenders, and each Consenting
Lender may, in its sole discretion, give written notice to the Agent not later than 10 days prior
to the Termination Date of the amount of the Non-Consenting Lenders’ Commitments for which it is
willing to

30

 

accept an assignment. If the Consenting Lenders notify the Agent that they are willing
to accept assignments of Commitments in an aggregate amount that exceeds the amount of the
Commitments of the Non-Consenting Lenders, such Commitments shall be allocated among the Consenting
Lenders willing to accept such assignments in such amounts as are agreed between the Borrower and
the Agent. If after giving effect to the assignments of Commitments described above there remains
any Commitments of Non-Consenting Lenders, the Borrower may arrange for one or more Consenting
Lenders or other Eligible Assignees as Assuming Lenders to assume, effective as of the Extension
Date, any Non-Consenting Lender’s Commitment and all of the obligations of such Non-Consenting
Lender under this Agreement thereafter arising, without recourse to or warranty by, or expense to,
such Non-Consenting Lender; provided, however, that the amount of the Commitment of
any such Assuming Lender as a result of such substitution shall in no event be less than $5,000,000
unless the amount of the Commitment of such Non-Consenting Lender is less than $5,000,000, in which
case such Assuming Lender shall assume all of such lesser amount; and provided
further that:

     (i) any such Consenting Lender or Assuming Lender shall have paid to such
Non-Consenting Lender (A) the aggregate principal amount of, and any interest accrued and
unpaid to the effective date of the assignment on, the outstanding Advances, if any, of such
Non-Consenting Lender plus (B) any accrued but unpaid facility fees owing to such
Non-Consenting Lender as of the effective date of such assignment;

     (ii) all additional costs reimbursements, expense reimbursements and indemnities
payable to such Non-Consenting Lender, and all other accrued and unpaid amounts owing to
such Non-Consenting Lender hereunder, as of the effective date of such assignment shall have
been paid to such Non-Consenting Lender; and

     (iii) with respect to any such Assuming Lender, the applicable processing and
recordation fee required under Section 9.07(a) for such assignment shall have been paid;

provided further that such Non-Consenting Lender’s rights under Sections 2.11, 2.14
and 9.04, and its obligations under Section 9.04, shall survive such substitution as to matters
occurring prior to the date of substitution. At least three Business Days prior to any Extension
Date, (A) each such Assuming Lender, if any, shall have delivered to the Borrower and the Agent an
Assumption Agreement, duly executed by such Assuming Lender, such Non-Consenting Lender, the
Borrower and the Agent, (B) any such Consenting Lender shall have delivered confirmation in writing
satisfactory to the Borrower and the Agent as to the increase in the amount of its Commitment and
(C) each Non-Consenting Lender being replaced pursuant to this Section 2.19 shall have delivered to
the Agent any Note or Notes held by such Non-Consenting Lender. Upon the payment or prepayment of
all amounts referred to in clauses (i), (ii) and (iii) of this Section 2.19(c), each such
Consenting Lender or Assuming Lender, as of the Extension Date, will be substituted for such
Non-Consenting Lender under this Agreement and shall be a Lender for all purposes of this
Agreement, without any further acknowledgment by or the consent of the other Lenders, and the
obligations of each such Non-Consenting Lender hereunder shall, by the provisions hereof, be
released and discharged.

          (d) If (after giving effect to any assignments or assumptions pursuant to subsection (c) of
this Section 2.19) Lenders having Commitments equal to at least 50% of the Commitments in effect
immediately prior to the Extension Date consent in writing to a requested extension (whether by
execution or delivery of an Assumption Agreement or otherwise) not later than one Business Day
prior to such Extension Date, the Agent shall so notify the Borrower, and, subject to the satisfaction
of the applicable conditions in Article III, the Termination Date then in effect shall be extended
for the additional one-year period as described in subsection (a) of this Section 2.19, and all
references in this Agreement, and in the Notes, if any, to the “Termination Date” shall,
with respect to each Consenting

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Lender and each Assuming Lender for such Extension Date, refer to
the Termination Date as so extended. Promptly following each Extension Date, the Agent shall
notify the Lenders (including, without limitation, each Assuming Lender) of the extension of the
scheduled Termination Date in effect immediately prior thereto and shall thereupon record in the
Register the relevant information with respect to each such Consenting Lender and each such
Assuming Lender.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01. Section 2.01 of
this Agreement shall become effective on and as of the first date on or before March 31, 2008 (the
“Effective Date”) on which the following conditions precedent have been satisfied:

     (a) There shall have occurred no Material Adverse Change since September 30, 2007.

     (b) There shall exist no action, suit, investigation, litigation or proceeding
affecting the Borrower or any of its Subsidiaries pending or threatened before any court,
governmental agency or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect other than the matters described on Schedule 3.01(b) hereto (the
“Disclosed Litigation”) or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any Note or the consummation of the transactions
contemplated hereby, and there shall have been no material adverse change in the status, or
financial effect on the Borrower or any of its Subsidiaries, of the Disclosed Litigation
from that described on Schedule 3.01(b) hereto.

     (c) Nothing shall have come to the attention of the Lenders during the course of their
due diligence investigation to lead them to believe that the Information Memorandum was or
has become misleading, incorrect or incomplete in any material respect; without limiting the
generality of the foregoing, the Lenders shall have been given such access to the
management, records, books of account, contracts and properties of the Borrower and its
Subsidiaries as they shall have requested.

     (d) All governmental and third party consents and approvals necessary in connection
with the transactions contemplated hereby shall have been obtained (without the imposition
of any conditions that are not acceptable to the Lenders) and shall remain in effect, and no
law or regulation shall be applicable in the reasonable judgment of the Lenders that
restrains, prevents or imposes materially adverse conditions upon the transactions
contemplated hereby.

     (e) The Borrower shall have notified the Agent in writing as to the proposed Effective
Date.

     (f) The Borrower shall have paid all accrued fees and expenses of the Agent (including
the accrued fees and expenses of counsel to the Agent).

     (g) On the Effective Date, the following statements shall be true and the Agent shall
have received for the account of each Lender a certificate signed by a duly authorized
officer of the Borrower, dated the Effective Date, stating that:

     (i) The representations and warranties contained in Section 4.01 are correct on
and as of the Effective Date, and

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     (ii) No event has occurred and is continuing that constitutes a Default.

     (h) The Agent shall have received on or before the Effective Date the following, each
dated such day, in form and substance satisfactory to the Agent and (except for the Notes)
in sufficient copies for each Lender:

     (i) The Notes to the order of the Lenders to the extent requested by any Lender
pursuant to Section 2.16.

     (ii) Certified copies of the resolutions of the Board of Directors of each Loan
Party approving this Agreement each other Loan Document to which it is or is to
become a party, and of all documents evidencing other necessary corporate action and
governmental approvals, if any, with respect to this Agreement and the Notes.

     (iii) A certificate of the Secretary or an Assistant Secretary of each Loan
Party certifying the names and true signatures of the officers of such Loan Party
authorized to sign this Agreement each other Loan Document to which it is or is to
become a party, and the other documents to be delivered hereunder.

     (iv) A favorable opinion of Bracewell & Giuliani, LLP, counsel for the Loan
Parties, substantially in the form of Exhibit E hereto and as to such other matters
as any Lender through the Agent may reasonably request.

     (v) A favorable opinion of Shearman & Sterling LLP, counsel for the Agent, in
form and substance satisfactory to the Agent.

     (i) The commitments of the lenders shall have been terminated, and all of the
obligations shall have been repaid or prepaid under, the Multi-Year Credit Agreement dated
as of July 28, 2004 among HII, the lenders parties thereto and Bank of America, N.A., as
administrative agent, and each of the Lenders that is a party to such credit facility hereby
waives, upon execution of this Agreement, any notice required by said Credit Agreement
relating to the termination of commitments or payments thereunder.

     (i) The Agent shall be satisfied that the Spin Transaction shall be consummated
substantially contemporaneously with the Effective Date.

          SECTION 3.02. Conditions Precedent to Each Borrowing, Issuance, Commitment
Increase and Extension Date. The obligation of each Lender to make an Advance (other than an
Advance made by any Issuing Bank or any Lender pursuant to Section 2.03(c)) on the occasion of each
Borrowing, the obligation of each Issuing Bank to issue a Letter of Credit, each Commitment
Increase and each extension of Commitments pursuant to Section 2.19 shall be subject to the
conditions precedent that the Effective Date shall have occurred and on the date of such Borrowing,
such issuance, the applicable Increase Date or the applicable Extension Date (as the case may be)
the following statements shall be true (and each of the giving of the applicable Notice of
Borrowing, Notice of Issuance, request for Commitment Increase, request for Commitment extension
and the acceptance by the Borrower of the proceeds of such Borrowing, such issuance, such increase
or such extension, shall constitute a representation and warranty by the Borrower that on the date
of such Borrowing, such issuance, request for Commitment Increase or request for Commitment
extension, that such statements are true):

     (a) the representations and warranties contained in Section 4.01 are correct on and as
of such date, before and after giving effect to such Borrowing, such issuance, such
Commitment

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Increase or such Extension Date and to the application of the proceeds therefrom,
as though made on and as of such date, except for the purposes of this Section 3.02(a), (i)
to the extent that such representations and warranties specifically refer to an earlier
date, such representations and warranties shall be true and correct as of such earlier date,
(ii) the representations and warranties contained in subsections (i) and (ii) of Section
4.01(e) shall be deemed to refer to the most recent financial statements furnished pursuant
to subsections (i) and (ii), respectively, of Section 5.01(a), and (iii) the representations
and warranties set forth in subsection 4.01(e)(iii) and in subsection 4.01(f)(i) need to be
true and correct only as of the Effective Date, each Increase Date and each Extension Date,
and

     (b) no event has occurred and is continuing, or would result from such Borrowing, such
issuance, such Commitment Increase or such Extension Date or from the application of the
proceeds therefrom, that constitutes a Default.

          SECTION 3.03. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an
officer of the Agent responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Borrower, by notice to the Lenders,
designates as the proposed Effective Date, specifying its objection thereto. The Agent shall
promptly notify the Lenders of the occurrence of the Effective Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          SECTION 4.01. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

     (a) Each Loan Party (i) is a corporation or limited liability company duly organized or
formed, validly existing and in good standing under the Laws of the jurisdiction of its
incorporation or organization, (ii) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (A) own its assets and
carry on its business and (B) execute, deliver and perform its obligations under the Loan
Documents to which it is a party, (iii) is duly qualified and is licensed and in good
standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license, and (iv)
is in compliance with all Laws; except in each case referred to in subsection (ii)(A), (iii)
or (iv), to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

     (b) The execution, delivery and performance by each Loan Party of each Loan Document to
which it is party, have been duly authorized by all necessary corporate or other
organizational action, and do not (i) contravene the terms of any of such Person’s
Organization Documents; (ii) conflict with or result in any breach or contravention of, or
the creation of any Lien under, (A) any Contractual Obligation to which the Borrower is a
party, except to the extent that such breach, contravention or creation of any such Lien
could not reasonably be expected to have a Material Adverse Effect or (B) any order,
injunction, writ or decree of any Governmental Authority or any arbitral award to which the
Borrower or its property is subject; or (iii) violate any material Law. No Subsidiary of
the Borrower is in violation of any Law or in breach of any

34

 

Contractual Obligation, the
violation of which could be reasonably likely to have a Material Adverse Effect.

     (c) No approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement against, any Loan
Party of this Agreement or any other Loan Document to which it is a party.

     (d) This Agreement has been, and each other Loan Document to which each Loan Party is a
party, when delivered hereunder, will have been, duly executed and delivered by such Loan
Party. This Agreement constitutes, and each other Loan Document when so delivered will
constitute, a legal, valid and binding obligation of each Loan Party party thereto,
enforceable against such Loan Party in accordance with its terms, subject in the case of
enforceability to the effects of bankruptcy and general principles of equity.

     (e) (i) The Audited Financial Statements (A) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; (B) fairly present the consolidated financial condition of the Borrower as of
the date thereof and its consolidated results of operations for the period covered thereby
in accordance with GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein; and (C) show all material indebtedness and other
liabilities, direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof to the extent required by GAAP, including liabilities for taxes, material
commitments and Indebtedness to the extent required by GAAP.

     (ii) The Unaudited Financial Statements (A) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein, (B) fairly present the consolidated financial condition of the Borrower as of
the date thereof and its consolidated results of operations for the period covered thereby,
except as expressly noted therein, and subject, in the case of clauses (A) and (B), to
year-end audit adjustments, and (C) show all material indebtedness and other liabilities,
direct or contingent, of the Borrower and its consolidated Subsidiaries as of the date
thereof to the extent required by GAAP, including liabilities for taxes, material
commitments and Indebtedness to the extent required by GAAP.

     (iii) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be
expected to have a Material Adverse Effect.

     (f) There are no actions, suits, proceedings, claims or disputes pending or, to the
knowledge of the Borrower after due and diligent investigation, threatened or contemplated,
at law, in equity, in arbitration or before any Governmental Authority, by or against the
Borrower or any of its Subsidiaries or against any of their properties or revenues that (i) except
the Disclosed Litigation, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect and there has been no material adverse
development in any Disclosed Litigation or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any other Loan Document or the consummation of the
transactions contemplated hereby.

     (g) Neither the Borrower nor any Subsidiary is in default under or with respect to any
Indebtedness or Guarantee that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No Default has occurred and is continuing or
would

35

 

result from the consummation of the transactions contemplated by this Agreement or any
other Loan Document.

     (h) The Borrower and its Subsidiaries conduct in the ordinary course of business a
review of the effect of existing Environmental Laws and claims alleging potential liability
or responsibility for violation of any Environmental Law on their respective businesses,
operations and properties, and as a result thereof the Borrower has reasonably concluded
that such Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     (i) The properties of the Borrower and its Subsidiaries are insured with insurance
companies or with a captive insurance company that is an Affiliate of the Borrower as to
which the Agent may request reasonable evidence of financial responsibility, in such
amounts, with such deductibles and covering such risks as are customarily carried by
companies with similar financial capacity and engaged in similar businesses and owning
similar properties in localities where the Borrower or the applicable Subsidiary operates.

     (j) The Borrower and its Subsidiaries have filed all tax returns and reports required
to be filed, and have paid all taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets otherwise due and payable,
except those which are being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with GAAP and
except for those tax returns, reports, taxes, assessments, fees and other governmental
charges, which in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. The Borrower is not aware of any proposed tax assessment against the Borrower or
any Subsidiary that would, if made, have a Material Adverse Effect.

     (k) (i) Except as could not reasonably be expected to have a Material Adverse Effect,
each Plan is in compliance in all material respects with the applicable provisions of ERISA,
the Internal Revenue Code and other Federal or state Laws. Except as could not reasonably
be expected to have a Material Adverse Effect, no application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Internal Revenue Code
has been made with respect to any Plan.

     (ii) There are no pending or, to the best knowledge of the Borrower, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that
could be reasonably be expected to have a Material Adverse Effect. There has been no
prohibited transaction or violation of the fiduciary responsibility rules with respect to
any Plan that has resulted or could reasonably be expected to result in a Material Adverse
Effect.

     (iii) Except as could not be reasonably expected to have a Material Adverse Effect, (A)
no ERISA Event has occurred or is reasonably expected to occur; (B) no Pension Plan has
any Unfunded Pension Liability; (C) neither the Borrower nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability (and no event has occurred which,
with the giving of notice under Section 4219 of ERISA, would result in such liability) under
Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (D) neither the
Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

     (l) (i) The Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose of
purchasing or carrying

36

 

margin stock and no proceeds of any Advances or drawings under any
Letter of Credit will be used to purchase or carry any margin stock in violation of
Regulation U or to extend credit to others for the purpose of purchasing or carrying any
margin stock in violation of Regulation U.

     (ii) Neither the Borrower nor any of its Subsidiaries is a “registered investment
company” or a company “controlled” by a “registered investment company” or a “principal
underwriter” of a “registered investment company” as such terms are defined in the
Investment Company Act of 1940.

Neither the making of the Advances, nor the issuance of the Letters of Credit or the
application of the proceeds or repayment thereof by the Borrower, nor the consummation of
other transactions contemplated hereunder, will violate any provision of the Investment
Company Act of 1940 or any rule, regulation or order of the SEC.

     (m) At the initial Borrowing and any Increase Date, the Borrower has disclosed to the
Agent and 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. No report, financial statement, certificate or other information furnished
(whether in writing or orally) by or on behalf of the Borrower to the Agent or any Lender in
connection with the transactions contemplated hereby and 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 materially misleading; provided that, with respect to projected financial information,
the Borrower represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time.

     (n) Each of the Borrower and each Subsidiary is in compliance in all material respects
with the requirements of all Laws and all orders, writs, injunctions and decrees applicable
to it or to its properties, except in such instances in which (a) such requirement of Law or
order, writ, injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith, either individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

ARTICLE V

COVENANTS OF THE BORROWER

          SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain unpaid, any
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower
will:

     (a) Financial Statements. Deliver to the Agent (for further distribution to
each Lender):

     (i) as soon as available, but in any event within 100 days after the end of each fiscal
year of the Borrower (or within five days of such other time required by the SEC), a
consolidated balance sheet of the Borrower as at the end of such fiscal year, and the
related consolidated statements of income or operations, shareholders’ equity and cash flows
for such fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, and
audited and accompanied by a

37

 

report and opinion of PricewaterhouseCoopers LLP or another
independent certified public accountant of nationally recognized standing reasonably
acceptable to the Agent, which report and opinion shall be prepared in accordance with
generally accepted auditing standards; and

     (ii) as soon as available, but in any event within 55 days after the end of each of the
first three fiscal quarters of each fiscal year of the Borrower, beginning with the quarter
ending March 31, 2008, a consolidated balance sheet of the Borrower as at the end of such
fiscal quarter, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal quarter and for the portion of the
Borrower’s fiscal year then ended, setting forth in each case in comparative form the
figures for the corresponding fiscal quarter of the previous fiscal year and the
corresponding portion of the previous fiscal year, all in reasonable detail and certified by
a Responsible Officer of the Borrower as fairly presenting the financial condition, results
of operations, shareholders’ equity and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP, subject only to year-end audit adjustments and the absence of
footnotes.

As to any information contained in materials furnished pursuant to Section 5.01(b), the
Borrower shall not be separately required to furnish such information under subsection (i)
or (ii) above, but the foregoing shall not be in derogation of the obligation of the
Borrower to furnish the information and materials described in subsections (i) and (ii)
above at the times specified therein.

     (b) Certificates; Other Information. Deliver to the Agent (for further
distribution to each Lender):

     (i) concurrently with the delivery of the financial statements referred to in Sections
5.01(a), a duly completed Compliance Certificate signed by a Responsible Officer of the
Borrower;

     (ii) promptly after the same are available, copies of each annual report, proxy or
financial statement or other material report or communication sent generally to the
stockholders of the Borrower, and copies of all annual, regular, periodic and special
reports and registration statements which the Borrower may file or be required to file with
the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise
required to be delivered to the Agent pursuant hereto; and

     (iii) promptly, such additional information regarding the business, financial or
corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the
Loan Documents, as the Agent or any Lender may from time to time reasonably request.

Documents required to be delivered pursuant to Sections 5.01(a) (to the extent any such
documents are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (A)
on which the Borrower posts such documents, or provides a link thereto on the Borrower’s
website on the Internet at the website address listed on Schedule 9.02; or (B) on which such
documents are posted on the Borrower’s behalf on Intralinks or a substantially similar
electronic system (the “Platform”); provided that: (x) the Borrower shall
deliver paper copies of such documents to the Agent or any Lender that requests the Borrower
to deliver such paper copies until a written request to cease delivering paper copies is
given by the Agent or such Lender and (y) the Borrower shall notify (which may be by
facsimile or electronic mail) the Agent and each Lender of the posting of any such documents
and provide to the Agent by electronic mail electronic

38

 

versions (i.e., soft copies) of such
documents in accordance with Section 9.02(b). Notwithstanding anything contained herein, in
every instance the Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 5.01(b)(i) to the Agent. Except for such Compliance
Certificates, the Agent shall have no obligation to request the delivery or to maintain
copies of the documents referred to above, and in any event shall have no responsibility to
monitor compliance by the Borrower with any such request for delivery, and each Lender shall
be solely responsible for requesting delivery to it or maintaining its copies of such
documents.

The Borrower hereby acknowledges that (a) the Agent and/or the Joint Lead Arrangers will
make available to the Lenders materials and/or information provided by or on behalf of the
Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower
Materials on the Platform and (b) certain of the Lenders may be “public-side” Lenders (i.e.,
Lenders that do not wish to receive material non-public information with respect to the
Borrower or its securities) (each, a “Public Lender”). The Borrower hereby agrees
that (w) all Borrower Materials that are to be made available to Public Lenders shall be
clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word
“PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower
Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Agent, the Joint
Lead Arrangers and the Lenders to treat such Borrower Materials as either publicly available
information or not material information (although it may be sensitive and proprietary) with
respect to the Borrower or its securities for purposes of United States Federal and state
securities laws; (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Investor;” and (z) the Agent
and the Joint Lead Arrangers shall be entitled to treat any Borrower Materials that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform not
designated “Public Investor.”

     (c) Notices. Promptly, after knowledge thereof, notify the Agent and each
Lender:

     (i) of the occurrence of any Default;

     (ii) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (A) breach or non-performance of, or any default under, a
Contractual Obligation of the Borrower or any Subsidiary; (B) any dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary and any
Governmental Authority; or (c) the commencement of, or any material development in, any
litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to any
applicable Environmental Laws; and

     (iii) of any announcement by Moody’s or S&P of any change in the Public Debt Rating.

     (d) Payment of Obligations. Pay and discharge, and cause each Subsidiary to
pay and discharge, as the same shall become due and payable, all its obligations and
liabilities, including (i) all tax liabilities, assessments and governmental charges or levies upon
it or its properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by the Borrower or such Subsidiary; (ii) all lawful claims which, if
unpaid, would by law become a Lien upon its property; and (iii) all Indebtedness, as and
when due and payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness, except, in each case, to the extent
that the failure to discharge such obligations and liabilities,

39

 

either individually or in
the aggregate, could not reasonably be expected to have a Material Adverse Effect.

     (e) Preservation of Existence, Etc. (i) Preserve, renew and maintain, and
cause each Subsidiary to preserve, renew and maintain, in full force and effect its legal
existence and good standing under the Laws of the jurisdiction of its organization except in
a transaction permitted by Section 5.02(d) and except to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; (ii) take, and cause
each Subsidiary to take, all reasonable action to maintain all rights, privileges, permits,
licenses and franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so could not reasonably be expected to have a Material
Adverse Effect; and (iii) preserve or renew, and cause each Subsidiary to preserve or renew,
all of its registered patents, trademarks, trade names and service marks, except in a
transaction permitted by Section 5.02(d) and except to the extent that the nonpreservation
or non-renewal of such patents, trademarks, trade names and service marks could reasonably
be expected to have a Material Adverse Effect.

     (f) Maintenance of Insurance. Maintain, and cause each Subsidiary to maintain,
with insurance companies or with a captive insurance company that is an Affiliate of the
Borrower as to which the Agent may request reasonable evidence of financial responsibility,
insurance with respect to its properties in such amounts with such deductibles and covering
such risks as are customarily carried by companies with similar financial capacity and
engaged in similar businesses and owning similar properties in localities where the Borrower
or applicable Subsidiaries operates.

     (g) Compliance with Laws. Comply, and cause each Subsidiary to comply, in all
material respects with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such instances in which
(i) such requirement of Law or order, writ, injunction or decree is being contested in good
faith by appropriate proceedings diligently conducted; or (ii) the failure to comply
therewith could not reasonably be expected to have a Material Adverse Effect.

     (h) Books and Records. Maintain, and cause each Subsidiary to maintain, proper
books of record and account, in which entries in conformity with GAAP consistently applied
shall be made of all financial transactions and matters involving the assets and business of
the Borrower or such Subsidiary, as the case may be.

     (i) Inspection Rights. Permit, and cause each Subsidiary to permit,
representatives and independent contractors of the Agent and each Lender to visit and
inspect any of its properties, to examine its corporate, financial and operating records,
and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all at the
expense of the Borrower and at such reasonable times during normal business hours (but not
more frequently than two such inspections within a twelve month period) and upon reasonable
advance notice to the Borrower; provided, however, that when an Event of
Default exists the Agent or any Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the expense
of the Borrower at any time during normal business hours and without advance notice.

     (j) Use of Proceeds. Use the proceeds of the Advances and Letters of Credit
(i) to consummate the Spin Transaction, (ii) to provide for working capital to the Borrower
and its Subsidiaries, (iii) to pay fees and expenses related to this Agreement, (iv) for
other general

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corporate purposes not in contravention of any Law or of any Loan Document and
(v) to finance acquisitions in accordance with the terms of this Agreement.

     (k) Covenant to Guarantee Obligations. Upon the formation or acquisition of
any new direct or indirect Material Subsidiary organized under the laws of the United States
or a political subdivision thereof by the Borrower, then at the Borrower’s expense:

     (A) within 10 days after such formation or acquisition, cause each such
Subsidiary, and cause each direct and indirect parent (other than the Borrower) of
such Subsidiary (if it has not already done so), to duly execute and deliver to the
Agent a guaranty or guaranty supplement, in form and substance satisfactory to the
Agent, guaranteeing the Guaranteed Obligations, and

     (B) upon the request of the Agent in its sole discretion, deliver to the Agent
within 20 days after such request, a signed copy of a favorable opinion of counsel
for the Loan Parties acceptable to the Agent (addressed to the Agent and the
Lenders) as to (1) the matters contained in clause (A) above, (2) such guaranties
and guaranty supplements, being legal, valid and binding obligations of each Loan
Party party thereto enforceable in accordance with their terms and (3) such other
matters as the Agent may reasonably request.

          SECTION 5.02. Negative Covenants. So long as any Advance shall remain unpaid, any
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower
will not:

     (a) Liens, Etc. Create or suffer to exist, or permit any of its Subsidiaries
to create or suffer to exist, any Lien on or with respect to any of its properties, whether
now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any
right to receive income, other than:

     (i) Liens pursuant to any Loan Document;

     (ii) Liens existing on the date hereof (A) that do not exceed $1,000,000 or (B)
are listed on Schedule 5.02(a) and any renewals or extensions thereof;
provided that the property covered thereby is not increased and any renewal
or extension of the obligations secured or benefited thereby is permitted by Section
5.02(c)(ii);

     (iii) Liens for taxes not yet due or which are being contested in good faith
and by appropriate proceedings in the circumstances, if adequate reserves with
respect thereto are maintained on the books of the applicable Person in accordance
with GAAP;

     (iv) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other
like Liens arising in the ordinary course of business which are not overdue for a
period of more than 60 days or which are being contested in good faith and by
appropriate proceedings in the circumstances, if adequate reserves with respect
thereto are maintained on the books of the applicable Person to the extent required in
accordance with GAAP;

     (v) pledges or deposits in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other social security legislation
(other than any Lien imposed by ERISA) and deposits securing liability insurance

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carriers under insurance or self-insurance arrangements in the ordinary course of
business;

     (vi) deposits to secure the performance of bids, trade contracts and leases
(other than Indebtedness), statutory obligations, surety bonds (other than bonds
related to judgments or litigation), performance bonds and other obligations of a
like nature incurred in the ordinary course of business;

     (vii) easements, rights-of-way, restrictions and other similar encumbrances
affecting real property existing or incurred in the ordinary course of business
which, in the aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property of the Borrower and its
Subsidiaries taken as a whole or materially interfere with the ordinary conduct of
the business of the applicable Person;

     (viii) Liens securing Indebtedness permitted under Section 5.02(c)(iv);
provided that (A) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (B) the Indebtedness secured thereby does
not exceed the cost or fair market value, whichever is lower, of the property being
acquired on the date of acquisition;

     (ix) Liens securing Indebtedness permitted under Section 5.02(c)(x);

     (x) statutory rights of set-off arising in the ordinary course of business;

     (xi) Liens existing on property at the time of acquisition thereof by the
Borrower or any Subsidiary and not created in contemplation thereof;

     (xii) Liens existing on property of a Subsidiary at the time such Subsidiary is
merged or consolidated with or into, or acquired by, the Borrower or any Subsidiary
or becomes a Subsidiary and not created in contemplation thereof;

     (xiii) Liens in favor of banks which arise under Article 4 of the Uniform
Commercial Code on items in collection and documents relating thereto and the
proceeds thereof; and

     (xv) Other Liens securing liabilities or assignments of rights to receive
income in an aggregate amount not to exceed $75,000,000 at any time outstanding.

     (b) Acquisitions. Enter into any agreement, contract, binding commitment or
other arrangement providing for the acquisition (in one or a series of transactions) of all
of the capital stock or equity interests or all or substantially all of the assets of any
Person, or permit any Subsidiary to do so, unless (i) immediately before and after giving
effect thereto, no Default shall have occurred and be continuing or would result therefrom
and (ii) if the aggregate amount invested (including assumed debt) is greater than
$250,000,000, pro forma consolidated historical
financial statements of the Borrower and its Subsidiaries as of the end of the most
recent fiscal quarter for the four fiscal quarters most recently ended giving effect to the
acquisition of the company or business pursuant to this Section 5.02(b) are delivered to the
Agent not less than five Business Days prior to the consummation of any such acquisition or
series of acquisitions, together with a Compliance Certificate of a Responsible Officer of
the Borrower delivered to the

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Lenders demonstrating pro forma compliance with Section 5.03
after giving effect to such acquisition or series of acquisitions.

     (c) Indebtedness. Create, incur, assume or suffer to exist, or permit any
Subsidiary to create, incur, assume or suffer to exist, any Indebtedness, except:

     (i) Indebtedness under the Loan Documents;

     (ii) Indebtedness outstanding on the date hereof that (A) is less than
$2,000,000 individually or $15,000,000 in the aggregate or (B) is listed on Schedule
5.02(c) and any refinancings, refundings, renewals or extensions thereof; provided
that the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses reasonably
incurred, in connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder;

     (iii) obligations (contingent or otherwise) of the Borrower existing or arising
under any Swap Contract; provided that such obligations are (or were) entered into
in the ordinary course of business, and not for purposes of speculation;

     (iv) Indebtedness in respect of capital leases and purchase money obligations
for fixed or capital assets; provided that the only property subject to such capital
leases and purchase money obligations is the property so acquired;

     (v) Indebtedness that may be deemed to exist pursuant to surety bonds, appeal
bonds, supersedeas bonds or similar obligations incurred in the ordinary course of
business;

     (vi) so long as no Default has occurred and is continuing or would result
therefrom at the time of incurrence, unsecured Indebtedness of the Borrower or any
Guarantor; provided that such Indebtedness is not senior in right of payment
to the payment of the Indebtedness arising under this Agreement and the Loan
Documents;

     (vii) Indebtedness of a Subsidiary of the Borrower to the Borrower or any of
the Borrower’s other Subsidiaries or Indebtedness of the Borrower to any Subsidiary
of the Borrower in connection with loans or advances; provided that each
item of intercompany debt shall be unsecured and such Indebtedness shall only be
permitted under this clause (vii) to the extent it will be eliminated for purposes
of the Consolidated financial statements of the Borrower in accordance with GAAP;

     (viii) Indebtedness arising as a result of the endorsement in the ordinary
course of business of negotiable instruments in the course of collection;

     (ix) Indebtedness incurred in connection with the acquisition of all or a
portion of Hill-Rom Company, Inc.’s interest in the real and personal property
described in the Farm Agreement; and

     (x) other Indebtedness (exclusive of Indebtedness permitted under subsections
(i) through (ix) above) in an aggregate principal amount not to exceed $75,000,000
at any time outstanding; provided that the aggregate principal amount of

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Indebtedness of Subsidiaries of the Borrower that may be Guaranteed by the
Borrower’s Subsidiaries shall not exceed $10,000,000 at any time.

     (d) Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of transactions)
all or substantially all of its assets (whether now owned or hereafter acquired) to or in
favor of any Person (any such event being a “Fundamental Change”), or permit any
Subsidiary to do so, except that, so long as no Default exists or would result therefrom:

     (i) any Subsidiary may merge or consolidate with or into (A) the Borrower,
provided that the Borrower shall be the continuing or surviving Person, or (B) any
one or more other Subsidiaries, provided that when any wholly-owned
Subsidiary is merging with another Subsidiary, the wholly-owned Subsidiary shall be
the continuing or surviving Person;

     (ii) any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or to another Subsidiary;
provided that if the transferor in such a transaction is a wholly-owned
Subsidiary, then the transferee must either be the Borrower or a wholly-owned
Subsidiary;

     (iii) the Borrower or any Subsidiary may merge with any Person in a transaction
that would be an acquisition that is permitted under this Agreement;
provided that (A) if the Borrower is a party to such merger, it shall be the
continuing or surviving Person, or (B) if any Subsidiary is a party to such merger,
such Subsidiary shall be the continuing or surviving Person; and

     (iv) any Subsidiary that is not a Guarantor may dispose of all or substantially
all of its assets.

     (e) Restricted Payments. Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so, or permit
any Subsidiary to do so, except that:

     (i) each Subsidiary may make Restricted Payments to the Borrower and to other
Subsidiaries (and, in the case of a Restricted Payment by a non-wholly-owned
Subsidiary, such Restricted Payment may be made to each other owner of capital stock
or other equity interests of such Subsidiary on a pro rata basis based on their
relative ownership interests);

     (ii) the Borrower and each Subsidiary may declare and make dividend payments or
other distributions payable solely in the common stock or other common equity
interests of such Person;

     (iii) the Borrower and each Subsidiary may purchase, redeem or otherwise
acquire shares of its common stock or other common equity interests or warrants or
options to acquire any such shares with the proceeds received from the substantially
concurrent issue of new shares of its common stock or other common equity interests;

     (iv) the Borrower may pay a dividend of $250,000,000 to HII on or about the
Effective Date; and

44

 

     (v) the Borrower may declare and pay cash dividends to its stockholders and
purchase, redeem or otherwise acquire shares of its capital stock or warrants,
rights or options to acquire any such shares for cash; provided that immediately
after giving effect to such proposed action, no Event of Default would exist.

     (f) Change in Nature of Business. Enter, or permit any Subsidiary to enter,
into any business, if after giving effect thereto, the business of the Borrower and its
Subsidiaries, taken as a whole, would be substantially different from the business in which
the Borrower and its Subsidiaries, taken as a whole, is presently engaged.

     (g) Transactions with Affiliates. Enter, or permit any Subsidiary to enter,
into any transaction of any kind with any Affiliate of the Borrower, whether or not in the
ordinary course of business, other than on fair and reasonable terms substantially as
favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such
Subsidiary at the time in a comparable arm’s length transaction with a Person other than an
Affiliate; provided that this Section 5.02(g) shall not prohibit the Spin
Transaction or any transaction permitted by Section 5.02(c)(vii); provided,
further, that this Section 5.02(g) shall not apply to reasonable compensation
(including amounts paid pursuant to Plans) and indemnification paid or made available to an
officer, director or employee of the Borrower or any of its Subsidiaries for services
rendered in that Person’s capacity as an officer, director or employee or the making of any
Restricted Payment otherwise permitted by this Agreement, in each case to the extent any
such payments are made in accordance with applicable Law. For purposes of this Section
5.02(g), Affiliate shall not include the Borrower or any wholly-owned Subsidiary of the
Borrower or, following the distribution of all of the shares of common stock of the Borrower
to the shareholders of Hillenbrand Industries, Inc., any of Hillenbrand Industries, Inc. or
any of its Subsidiaries.

     (h) Burdensome Agreements. Enter, or permit any Subsidiary to enter, into any
Contractual Obligation (other than this Agreement and any other Loan Document) that (i)
limits the ability (A) of any Subsidiary to make Restricted Payments to the Borrower or to
otherwise transfer property to the Borrower; provided, however, that this clause (A) shall
not prohibit (x) customary provisions restricting subletting or assignment of any leases of
the Borrower or any Subsidiary or provisions in agreements restricting the assignment of
such agreement or any rights thereunder or (y) any temporary encumbrance or restrictions
with respect to a Subsidiary under an agreement that has been entered into for the
disposition of all or substantially all of the equity interests or assets of such
Subsidiary, provided that such disposition is otherwise permitted under this Agreement, (B)
of any Subsidiary to Guarantee the Indebtedness of the Borrower or (C) of the Borrower or
any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person;
provided, however, that this clause (C) shall not prohibit any negative
pledge (x) granted in connection with the property or interest described in the Farm
Agreement, the Airport Access and Use Agreement or the Joint Ownership Agreements or (y)
incurred or provided in favor of any holder of Indebtedness permitted under Section
5.02(c)(iv) solely to the extent any such negative pledge relates to the property financed
by or the subject of such Indebtedness and
shall not prohibit the grant of Liens otherwise permitted under Section 5.02(a); or
(ii) requires the grant of a Lien to secure an obligation of such Person if a Lien is
granted to secure another obligation of such Person; provided that this subsection
(ii) shall not prohibit the grant of Liens otherwise permitted under Section 5.02(a).

     (i) Use of Proceeds. Use the proceeds of any Advances or Letters of Credit,
whether directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend
credit to others for

45

 

the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose, in each case, in violation of Regulation
U.

          SECTION 5.03. Financial Covenants. So long as any Advance shall remain unpaid, any
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Borrower
will:

     (a) Debt to EBITDA Ratio. Maintain a ratio of Consolidated Indebtedness to
Consolidated EBITDA for the period of four fiscal quarters most recently ended of the
Borrower and its Subsidiaries of not greater than 3.5:1.0.

     For purposes of calculations under this Section 5.03(a), Consolidated Indebtedness
shall not include 75% of the principal amount of any mandatorily convertible unsecured bonds,
debentures, preferred stock or similar instruments in a principal amount not to exceed $500,000,000
in the aggregate during the term of this Agreement which are payable in no more than three years
(whether by redemption, call option or otherwise) solely in common stock or other common equity
interests.

     (b) Interest Coverage Ratio. Maintain a ratio of Consolidated EBITDA for the
period of four fiscal quarters most recently ended of the Borrower and its Subsidiaries to
interest payable on, and amortization of debt discount in respect of, all Indebtedness
during such period by the Borrower and its Subsidiaries of not less than 3.5:1.0.

ARTICLE VI

EVENTS OF DEFAULT

          SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

     (a) The Borrower shall fail to pay any principal of any Advance when the same becomes
due and payable; or the Borrower shall fail to pay any interest on any Advance or make any
other payment of fees or other amounts payable under this Agreement or any Note within three
Business Days after the same becomes due and payable; or

     (b) Any representation or warranty made by the Borrower herein or by the Borrower (or
any of its officers) in connection with this Agreement shall prove to have been incorrect in
any material respect when made; or

     (c) (i) The Borrower shall fail to perform or observe any term, covenant or agreement
contained in Section 5.01(c), (e) or (i), 5.02 or 5.03, or (ii) the Borrower shall fail to
perform or observe any other term, covenant or agreement contained in this Agreement on its
part to be performed or observed if such failure shall remain unremedied for 30 days after
written notice thereof shall have been given to the Borrower by the Agent or any Lender; or

     (d) The Borrower or any of its Subsidiaries shall fail to pay any principal of or
premium or interest on (i) any Indebtedness (other than Indebtedness with respect to Swap
Contracts) that is outstanding in a principal amount of at least $75,000,000 in the
aggregate (but excluding Indebtedness outstanding hereunder) or (ii) any Indebtedness with
respect to Swap Contracts with a Swap Termination Value of at least $75,000,000 in the
aggregate, of the Borrower or such Subsidiary (as the case may be), when the same becomes
due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise), and

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such failure shall continue after the applicable grace period, if any,
specified in the agreement or instrument relating to such Indebtedness; or any other event
shall occur or condition shall exist under any agreement or instrument relating to any such
Indebtedness and shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness
shall be declared to be due and payable, or required to be prepaid or redeemed (other than
by a regularly scheduled required prepayment or redemption), purchased or defeased, or an
offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made,
in each case prior to the stated maturity thereof; or

     (e) The Borrower or any of its Subsidiaries shall generally not pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts generally, or
shall make a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Borrower or any of its Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such proceeding shall
remain undismissed or unstayed for a period of 30 days, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Borrower or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth above in this
subsection (e); or

     (f) Judgments or orders for the payment of money in excess of $75,000,000 in the
aggregate shall be rendered against the Borrower or any of its Subsidiaries and remain
undischarged and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order or (ii) there shall be any period of 30 consecutive
days during which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; provided, however, that any
such judgment or order shall not be an Event of Default under this Section 6.01(f) if and
for so long as (i) the amount of such judgment or order is covered by a valid and binding
policy of insurance between the defendant and the insurer covering payment thereof and (ii)
such insurer, which shall be rated at least “A” by A.M. Best Company, has been notified of,
and has not disputed the claim made for payment of, the amount of such judgment or order; or

     (g) a Change of Control shall occur; or

     (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which
has resulted or could reasonably be expected to result in liability of the Borrower under
Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of $75,000,000, or (ii) the Borrower or any ERISA Affiliate fails to pay
when due, after the expiration of any applicable grace period, any installment payment with
respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan
in an aggregate amount in excess of $75,000,000;

     (j) any provision of Article VII shall for any reason cease to be valid and binding on
or enforceable against any of the Guarantors, or any of the Guarantors shall so state in
writing;

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then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances
(other than Advances to be made by an Issuing Bank or a Lender pursuant to Section 2.03(c)) and of
the Issuing Banks to issue Letters of Credit to be terminated, whereupon the same shall forthwith
terminate, and (ii) shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable
under this Agreement to be forthwith due and payable, whereupon the Advances, all such interest and
all such amounts shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived by the Borrower;
provided, however, that in the event of an actual or deemed entry of an order for
relief with respect to the Borrower under the Federal Bankruptcy Code, (A) the obligation of each
Lender to make Advances (other than Advances to be made by an Issuing Bank or a Lender pursuant to
Section 2.03(c)) and of the Issuing Banks to issue Letters of Credit shall automatically be
terminated and (B) the Advances, all such interest and all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice of any kind, all of
which are hereby expressly waived by the Borrower.

          SECTION 6.02. Actions in Respect of the Letters of Credit upon Default. If any Event
of Default shall have occurred and be continuing, the Agent may with the consent, or shall at the
request, of the Required Lenders, irrespective of whether it is taking any of the actions described
in Section 6.01 or otherwise, make demand upon the Borrower to, and forthwith upon such demand the
Borrower will, (a) pay to the Agent on behalf of the Lenders in same day funds at the Agent’s
office designated in such demand, for deposit in the L/C Cash Deposit Account, an amount equal to
the aggregate Available Amount of all Letters of Credit then outstanding or (b) make such other
arrangements in respect of the outstanding Letters of Credit as shall be acceptable to the Required
Lenders and not more disadvantageous to the Borrower than clause (a); provided,
however, that in the event of an actual or deemed entry of an order for relief with respect
to the Borrower under the Federal Bankruptcy Code, an amount equal to the aggregate Available
Amount of all outstanding Letters of Credit shall be immediately due and payable to the Agent for
the account of the Lenders without notice to or demand upon the Borrower, which are expressly
waived by the Borrower, to be held in the L/C Cash Deposit Account. If at any time an Event of
Default is continuing the Agent determines that any funds held in the L/C Cash Deposit Account are
subject to any right or claim of any Person other than the Agent and the Lenders or that the total
amount of such funds is less than the aggregate Available Amount of all Letters of Credit, the
Borrower will, forthwith upon demand by the Agent, pay to the Agent, as additional funds to be
deposited and held in the L/C Cash Deposit Account, an amount equal to the excess of (a) such
aggregate Available Amount over (b) the total amount of funds, if any, then held in the L/C Cash
Deposit Account that the Agent determines to be free and clear of any such right and claim. Upon
the drawing of any Letter of Credit, to the extent funds are on deposit in the L/C Cash Deposit
Account, such funds shall be applied to reimburse the Issuing Banks to the extent permitted by
applicable law. After all such Letters of Credit shall have expired or been fully drawn upon and
all other obligations of the Borrower hereunder and under the Notes shall have been paid in full,
the balance, if any, in such L/C Cash Deposit Account shall be returned to the Borrower.

ARTICLE VII

GUARANTY

          SECTION 7.01. Unconditional Guaranty; Limitation of Liability. (a) Each Guarantor,
jointly and severally, hereby absolutely, unconditionally and irrevocably guarantees the punctual
payment when due, whether at scheduled maturity or on any date of a required prepayment or by
acceleration, demand or otherwise, of all obligations of the Borrower now or hereafter existing
under or in respect of this Agreement and the other Loan Documents (including, without limitation,
any extensions,

48

 

modifications, substitutions, amendments or renewals of any or all of the foregoing
obligations), whether direct or indirect, absolute or contingent, and whether for principal,
interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise
(such obligations being the “Guaranteed Obligations”), and agrees to pay any and all
expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by the
Agent or any Lender in enforcing any rights under this Agreement. Without limiting the generality
of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of
the Guaranteed Obligations and would be owed by the Borrower to the Agent or any Lender under or in
respect of this Agreement and the other Loan Documents but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding
involving the Borrower.

          (b) Each Guarantor, and by its acceptance of this Guaranty, the Agent and each other Lender,
hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations
of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar foreign, federal or state law to the extent applicable to this Guaranty and the obligations
of each Guarantor hereunder. To effectuate the foregoing intention, the Agent, the other Lender
Parties and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under
this Guaranty at any time shall be limited to the maximum amount as will result in the obligations
of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance.

          (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment
shall be required to be made to any Lender under this Guaranty or any other guaranty, such
Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other
Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Lenders under
or in respect of the Loan Documents.

          SECTION 7.02. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such
terms or the rights of the Agent or any Lender with respect thereto. The obligations of each
Guarantor under or in respect of this Guaranty are independent of the Guaranteed Obligations or any
other obligations of any other Loan Party under or in respect of the Loan Documents, and a separate
action or actions may be brought and prosecuted against each Guarantor to enforce this Guaranty,
irrespective of whether any action is brought against the Borrower or any other Loan Party or
whether the Borrower or any other Loan Party is joined in any such action or actions. The
liability of each Guarantor under this Guaranty shall be irrevocable, absolute and unconditional
irrespective of, and each Guarantor hereby irrevocably waives any defenses (other than payment in
full of the Guaranteed Obligations) it may now have or hereafter acquire in any way relating to,
any or all of the following:

     (a) any lack of validity or enforceability of any Loan Document or any agreement or
instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations or any other obligations of any other Loan Party under
or in respect of the Loan Documents, or any other amendment or waiver of or any consent to
departure from any Loan Document, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to the Borrower or
any of its Subsidiaries or otherwise;

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     (c) any taking, exchange, release or non-perfection of any collateral, or any taking,
release or amendment or waiver of, or consent to departure from, any other guaranty, for all
or any of the Guaranteed Obligations;

     (d) any manner of application of any collateral, or proceeds thereof, to all or any of
the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for
all or any of the Guaranteed Obligations or any other obligations of any Loan Party under
the Loan Documents or any other assets of any Loan Party or any of its Subsidiaries;

     (e) any change, restructuring or termination of the corporate structure or existence of
any Loan Party or any of its Subsidiaries;

     (f) any failure of the Agent or any Lender to disclose to any Loan Party any
information relating to the business, condition (financial or otherwise), operations,
performance, properties or prospects of any other Loan Party now or hereafter known to the
Agent or such Lender (each Guarantor waiving any duty on the part of the Agent and the
Lenders to disclose such information);

     (g) the failure of any other Person to execute or deliver this Agreement, any Guaranty
Supplement or any other guaranty or agreement or the release or reduction of liability of
any Guarantor or other guarantor or surety with respect to the Guaranteed Obligations; or

     (h) any other circumstance (including, without limitation, any statute of limitations)
or any existence of or reliance on any representation by the Agent or any Lender that might
otherwise constitute a defense available to, or a discharge of, any Loan Party or any other
guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the
Agent or any Lender or any other Person upon the insolvency, bankruptcy or reorganization of the
Borrower or any other Loan Party or otherwise, all as though such payment had not been made.

          SECTION 7.03. Waivers and Acknowledgments. (a) Each Guarantor hereby
unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment,
demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and
any other notice with respect to any of the Guaranteed Obligations and this Guaranty and any
requirement that the Agent or any Lender protect, secure, perfect or insure any Lien or any
property subject thereto or exhaust any right or take any action against the Borrower or any other
Person or any collateral.

     (b) Each Guarantor hereby unconditionally and irrevocably waives any right to revoke
this Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

     (c) Each Guarantor hereby unconditionally and irrevocably waives (i) any defense
arising by reason of any claim or defense based upon an election of remedies by the Agent or
any Lender that in any manner impairs, reduces, releases or otherwise adversely affects the
subrogation, reimbursement, exoneration, contribution or indemnification rights of the
Borrower or other rights of the Borrower to proceed against any of the other Loan Parties,
any other guarantor or any other Person or any collateral and (ii) any defense based on any
right of set-off or counterclaim against or in respect of the obligations of such Guarantor
hereunder.

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     (d) Each Guarantor hereby unconditionally and irrevocably waives any duty on the part
of the Agent or any Lender to disclose to such Guarantor any matter, fact or thing relating
to the business, condition (financial or otherwise), operations, performance, properties or
prospects of the Borrower or any of its Subsidiaries now or hereafter known by the Agent or
such Lender.

     (e) Each Guarantor acknowledges that it will receive substantial direct and indirect
benefits from the financing arrangements contemplated by this Agreement and the other Loan
Documents and that the waivers set forth in Section 7.02 and this Section 7.03 are knowingly
made in contemplation of such benefits.

          SECTION 7.04. Subrogation. Each Guarantor hereby unconditionally and irrevocably
agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower,
any other Loan Party or any other insider guarantor that arise from the existence, payment,
performance or enforcement of such Guarantor’s obligations under or in respect of this Guaranty,
including, without limitation, any right of subrogation, reimbursement, exoneration, contribution
or indemnification and any right to participate in any claim or remedy of the Agent or any Lender
against the Borrower, any other Loan Party or any other insider guarantor or any collateral,
whether or not such claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from the Borrower, any other Loan
Party or any other insider guarantor, directly or indirectly, in cash or other property or by
set-off or in any other manner, payment or security on account of such claim, remedy or right,
unless and until all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash, all Letters of Credit shall have expired or been
terminated and the Commitments shall have expired or been terminated. If any amount shall be paid
to any Guarantor in violation of the immediately preceding sentence at any time prior to the latest
of (a) the payment in full in cash of the Guaranteed Obligations and all other amounts payable
under this Guaranty, (b) the final Termination Date and (c) the latest date of expiration or
termination of all Letters of Credit, such amount shall be received and held in trust for the
benefit of the Agent and the Lenders, shall be segregated from other property and funds of such
Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received
(with any necessary endorsement or assignment) to be credited and applied to the Guaranteed
Obligations and all other amounts payable under this Guaranty, whether matured or unmatured, in
accordance with the terms of this Agreement and the other Loan Documents, or to be held as
collateral for any Guaranteed Obligations or other amounts payable under this Guaranty thereafter
arising. If (i) any Guarantor shall make payment to the Agent or any Lender of all or any part of
the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable
under this Guaranty shall have been paid in full in cash, (iii) the final Termination Date shall
have occurred and (iv) all Letters of Credit shall have expired or been terminated, the Agent and
the Lenders will, at such Guarantor’s request and expense, execute and deliver to such Guarantor
appropriate documents, without recourse and without representation or warranty, necessary to
evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations
resulting from such payment made by such Guarantor pursuant to this Guaranty.

          SECTION 7.05. Guaranty Supplements. Upon the execution and delivery by any Person
of a guaranty supplement in substantially the form of Exhibit F hereto (each, a “Guaranty
Supplement”), (a) such Person shall be referred to as an “Additional Guarantor” and
shall become and be a Guarantor hereunder, and each reference in this Guaranty to a “Guarantor”
shall also mean and be a reference to such Additional Guarantor, and each reference in any other
Loan Document to a “Guarantor” shall also mean and be a reference to such Additional Guarantor,
and (b) each reference herein to “this Guaranty,” “hereunder,” “hereof” or words of like import
referring to this Guaranty, and each reference in any other Loan Document to the “Guaranty,”
“thereunder,” “thereof” or words of like

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import referring to this Guaranty, shall mean and be a
reference to this Guaranty as supplemented by such Guaranty Supplement.

          SECTION 7.06. Subordination. Each Guarantor hereby subordinates any and all debts,
liabilities and other obligations owed to such Guarantor by each other Loan Party (the
“Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner
hereinafter set forth in this Section 7.06:

     (a) Prohibited Payments, Etc. Except during the continuance of an Event of
Default (including the commencement and continuation of any proceeding under any Bankruptcy
Law relating to the Borrower), each Guarantor may receive payments from the Borrower on
account of the Subordinated Obligations. After the occurrence and during the continuance of
any Event of Default (including the commencement and continuation of any proceeding under
any Bankruptcy Law relating to the Borrower), however, unless the Required Lenders otherwise
agree, no Guarantor shall demand, accept or take any action to collect any payment on
account of the Subordinated Obligations.

     (b) Prior Payment of Guaranteed Obligations. In any proceeding under any
Bankruptcy Law relating to any other Loan Party, each Guarantor agrees that the Agent and
the Lenders shall be entitled to receive payment in full in cash of all Guaranteed
Obligations (including all interest and expenses accruing after the commencement of a
proceeding under any Bankruptcy Law, whether or not constituting an allowed claim in such
proceeding (“Post Petition Interest”)) before such Guarantor receives payment of any
Subordinated Obligations.

     (c) Turn-Over. After the occurrence and during the continuance of any Event of
Default (including the commencement and continuation of any proceeding under any Bankruptcy
Law relating to the Borrower), each Guarantor shall, if the Agent so requests, collect,
enforce and receive payments on account of the Subordinated Obligations as trustee for the
Agent and the Lenders and deliver such payments to the Agent on account of the Guaranteed
Obligations (including all Post Petition Interest), together with any necessary endorsements
or other instruments of transfer, but without reducing or affecting in any manner the
liability of such Guarantor under the other provisions of this Guaranty.

     (d) Agent Authorization. After the occurrence and during the continuance of
any Event of Default (including the commencement and continuation of any proceeding under
any Bankruptcy Law relating to the Borrower), the Agent is authorized and empowered (but
without any obligation to so do), in its discretion, (i) in the name of each Guarantor, to
collect and enforce, and to submit claims in respect of, Subordinated Obligations and to
apply any amounts received thereon to the Guaranteed Obligations (including any and all Post
Petition Interest), and (ii) to require each Guarantor (A) to collect and enforce, and to
submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on
such obligations to the Agent for application to the Guaranteed Obligations (including any
and all Post Petition Interest).

          SECTION 7.07. Continuing Guaranty; Assignments. This Guaranty is a continuing
guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full
in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty, (ii) the
final Termination Date and (iii) the latest date of expiration or termination of all Letters of
Credit, (b) be binding upon each Guarantor, its successors and assigns and (c) inure to the benefit
of and be enforceable by the Agent and the Lenders and their successors, transferees and assigns.
Without limiting the generality of clause (c) of the immediately preceding sentence, the Agent or
any Lender may assign or otherwise transfer all or any portion of its rights and obligations under
this Agreement (including, without limitation, all or any portion

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of its Commitments, the Advances
owing to it and the Note or Notes held by it) to any other Person, and such other Person shall
thereupon become vested with all the benefits in respect thereof granted to the Agent or such
Lender herein or otherwise, in each case as and to the extent provided in Section 9.07.

ARTICLE VIII

THE AGENT

          SECTION 8.01. Authorization and Authority. Each Lender hereby irrevocably appoints
Citibank, N.A. to act on its behalf as the Agent hereunder and under the other Loan Documents and
authorizes the Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are
reasonably incidental thereto. The provisions of this Article are solely for the benefit of the
Agent and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a
third party beneficiary of any of such provisions.

          SECTION 8.02. Agent Individually. (a) The Person serving as the 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 Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include the Person serving
as the Agent hereunder in its individual capacity. Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other advisory capacity for
and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if such Person were not the Agent hereunder and without any duty to account therefor to
the Lenders.

          (b) Each Lender understands that the Person serving as Agent, acting in its individual
capacity, and its Affiliates (collectively, the “Agent’s Group”) are engaged in a wide
range of financial services and businesses (including investment management, financing, securities
trading, corporate and investment banking and research) (such services and businesses are
collectively referred to in this Section 8.02 as “Activities”) and may engage in the
Activities with or on behalf of one or more of the Loan Parties or their respective Affiliates.
Furthermore, the Agent’s Group may, in undertaking the Activities, engage in trading in financial
products or undertake other investment businesses for its own account or on behalf of others
(including the Loan Parties and their Affiliates and including holding, for its own account or on
behalf of others, equity, debt and similar positions in the Borrower, another Loan Party or their
respective Affiliates), including trading in or holding long, short or derivative positions in
securities, loans or other financial products of one or more of the Loan Parties or their
Affiliates. Each Lender understands and agrees that in engaging in the Activities, the Agent’s
Group may receive or otherwise obtain information concerning the Loan Parties or their Affiliates
(including information concerning the ability of the Loan Parties to perform their respective
obligations hereunder and under the other Loan Documents) which information may not be available to
any of the Lenders that are not members of the Agent’s Group. None of the Agent nor any member of
the Agent’s Group shall have any
duty to disclose to any Lender or use on behalf of the Lenders, and shall not be liable for
the failure to so disclose or use, any information whatsoever about or derived from the Activities
or otherwise (including any information concerning the business, prospects, operations, property,
financial and other condition or creditworthiness of any Loan Party or any Affiliate thereof) or to
account for any revenue or profits obtained in connection with the Activities, except that the
Agent shall deliver or otherwise make available to each Lender such documents as are expressly
required by any Loan Document to be transmitted by the Agent to the Lenders.

          (c) Each Lender further understands that there may be situations where members of the Agent’s
Group or their respective customers (including the Loan Parties and their Affiliates) either

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now have or may in the future have interests or take actions that may conflict with the interests of
any one or more of the Lenders (including the interests of the Lenders hereunder and under the
other Loan Documents). Each Lender agrees that no member of the Agent’s Group is or shall be
required to restrict its activities as a result of the Person serving as Agent being a member of
the Agent’s Group, and that each member of the Agent’s Group may undertake any Activities without
further consultation with or notification to any Lender. None of (i) this Agreement nor any other
Loan Document, (ii) the receipt by the Agent’s Group of information (including Information)
concerning the Loan Parties or their Affiliates (including information concerning the ability of
the Loan Parties to perform their respective obligations hereunder and under the other Loan
Documents) nor (iii) any other matter shall give rise to any fiduciary, equitable or contractual
duties (including without limitation any duty of trust or confidence) owing by the Agent or any
member of the Agent’s Group to any Lender including any such duty that would prevent or restrict
the Agent’s Group from acting on behalf of customers (including the Loan Parties or their
Affiliates) or for its own account.

          SECTION 8.03. Duties of Agent; Exculpatory Provisions. (a) The Agent’s duties
hereunder and under the other Loan Documents are solely ministerial and administrative in nature
and the Agent shall not have any duties or obligations except those expressly set forth herein and
in the other Loan Documents. Without limiting the generality of the foregoing, the Agent shall not
have any duty to take any discretionary action or exercise any discretionary powers, but shall be
required to act or refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the written direction of the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that the Agent shall not be required to take any action that, in its opinion or
the opinion of its counsel, may expose the Agent or any of its Affiliates to liability or that is
contrary to any Loan Document or applicable law.

          (b) The Agent shall not be liable for any action taken or not taken by it (i) with the consent
or at the request of the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary, or as the Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 9.01 or 6.01) or (ii) in the absence of its own gross
negligence or willful misconduct. The Agent shall be deemed not to have knowledge of any Default
or the event or events that give or may give rise to any Default unless and until the Borrower or
any Lender shall have given notice to the Agent describing such Default and such event or events.

          (c) Neither the Agent nor any member of the Agent’s Group shall be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty, representation or other information
made or supplied in or in connection with this Agreement, any other Loan Document or the
Information Memorandum, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith or the adequacy, accuracy and/or
completeness of the information contained therein, (iii) the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement,
any other Loan Document or any other agreement, instrument or document or the perfection or
priority of any Lien or security interest created or purported to be created hereby or (v) the
satisfaction of any condition set forth in Article III or elsewhere herein, other than (but subject
to the foregoing clause (ii)) to confirm receipt of items expressly required to be delivered to the
Agent.

          (d) Nothing in this Agreement or any other Loan Document shall require the Agent or any of its
Related Parties to carry out any “know your customer” or other checks in relation to any person on
behalf of any Lender and each Lender confirms to the Agent that it is solely responsible for any
such checks it is required to carry out and that it may not rely on any statement in relation to
such checks made by the Agent or any of its Related Parties.

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          SECTION 8.04. Reliance by Agent. The Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Agent also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of an Advance, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender, the Agent may presume that such condition is
satisfactory to such Lender unless an officer of the Agent responsible for the transactions
contemplated hereby shall have received notice to the contrary from such Lender prior to the making
of such Advance or the issuance of such Letter of Credit, and in the case of a Borrowing, such
Lender shall not have made available to the Agent such Lender’s ratable portion of such Borrowing.
The Agent may consult with legal counsel (who may be counsel for the Borrower or any other Loan
Party), 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.

          SECTION 8.05. Delegation of Duties. The Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one
or more sub-agents appointed by the Agent. The Agent and any such sub-agent may perform any and
all of its duties and exercise its rights and powers by or through their respective Related
Parties. Each such sub-agent and the Related Parties of the Agent and each such sub-agent shall be
entitled to the benefits of all provisions of this Article VIII and Section 9.04 (as though such
sub-agents were the “Agent” under the Loan Documents) as if set forth in full herein with respect
thereto.

          SECTION 8.06. Resignation of Agent. (a) The Agent may at any time give notice of its
resignation to the Lenders and the Borrower. Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor,
which shall be a bank with an office in New York, New York, or an Affiliate of any such bank with
an office in New York, New York. If no such successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives
notice of its resignation (such 30-day period, the “Lender Appointment Period”), then the
retiring Agent may on behalf of the Lenders, appoint a successor Agent meeting the qualifications
set forth above. In addition and without any obligation on the part of the retiring Agent to
appoint, on behalf of the Lenders, a successor Agent, the retiring Agent may at any time upon or
after the end of the Lender Appointment Period notify the Borrower and the Lenders that no
qualifying Person has accepted appointment as successor Agent and the effective date of such
retiring Agent’s resignation which effective date shall be no earlier than three business days
after the date of such notice. Upon the
resignation effective date established in such notice and regardless of whether a successor
Agent has been appointed and accepted such appointment, the retiring Agent’s resignation shall
nonetheless become effective and (i) the retiring Agent shall be discharged from its duties and
obligations as Agent hereunder and under the other Loan Documents and (ii) all payments,
communications and determinations provided to be made by, to or through the Agent shall instead be
made by or to each Lender directly, until such time as the Required Lenders appoint a successor
Agent as provided for above in this paragraph. Upon the acceptance of a successor’s appointment as
Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties as Agent of the retiring (or retired) Agent, and the retiring Agent shall be
discharged from all of its duties and obligations as Agent hereunder or under the other Loan
Documents (if not already discharged therefrom as provided above in this paragraph). The fees
payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Agent’s
resignation hereunder and under the other Loan Documents, the provisions of this Article and
Section 9.04 shall continue in effect for the benefit of such retiring Agent, its sub-agents and
their respective Related Parties

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in respect of any actions taken or omitted to be taken by any of
them while the retiring Agent was acting as Agent.

          (b) Any resignation pursuant to this Section by a Person acting as Agent shall, unless such
Person shall notify the Borrower and the Lenders otherwise, also act to relieve such Person and its
Affiliates of any obligation to advance or issue new, or extend existing, Letters of Credit where
such advance, issuance or extension is to occur on or after the effective date of such resignation.
Upon the acceptance of a successor’s appointment as Agent hereunder, (i) such successor shall
succeed to and become vested with all of the rights, powers, privileges and duties of the retiring
Issuing Bank, (ii) the retiring Issuing Bank shall be discharged from all of their respective
duties and obligations hereunder or under the other Loan Documents and (iii) the successor Issuing
Bank shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangement satisfactory to the retiring Issuing Bank
to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of
Credit.

          SECTION 8.07. Non-Reliance on Agent and Other Lenders. (a) Each Lender confirms to
the Agent, each other Lender and each of their respective Related Parties that it (i) possesses
(individually or through its Related Parties) such knowledge and experience in financial and
business matters that it is capable, without reliance on the Agent, any other Lender or any of
their respective Related Parties, of evaluating the merits and risks (including tax, legal,
regulatory, credit, accounting and other financial matters) of (x) entering into this Agreement,
(y) making Advances and other extensions of credit hereunder and under the other Loan Documents and
(z) in taking or not taking actions hereunder and thereunder, (ii) is financially able to bear such
risks and (iii) has determined that entering into this Agreement and making Advances and other
extensions of credit hereunder and under the other Loan Documents is suitable and appropriate for
it.

          (b) Each Lender acknowledges that (i) it is solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection with this Agreement and the
other Loan Documents, (ii) that it has, independently and without reliance upon the Agent, any
other Lender or any of their respective Related Parties, made its own appraisal and investigation
of all risks associated with, and its own credit analysis and decision to enter into, this
Agreement based on such documents and information, as it has deemed appropriate and (iii) it will,
independently and without reliance upon the Agent, any other Lender or any of their respective
Related Parties, continue to be solely responsible for making its own appraisal and investigation
of all risks arising under or in connection with, and its own credit analysis and decision to take
or not take action under, this Agreement and the other
Loan Documents based on such documents and information as it shall from time to time deem
appropriate, which may include, in each case:

     (i) the financial condition, status and capitalization of the Borrower and each other
Loan Party;

     (ii) the legality, validity, effectiveness, adequacy or enforceability of this
Agreement and each other Loan Document and any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Loan
Document;

     (iii) determining compliance or non-compliance with any condition hereunder to the
making of an Advance, or the issuance of a Letter of Credit and the form and substance of
all evidence delivered in connection with establishing the satisfaction of each such
condition;

     (iv) the adequacy, accuracy and/or completeness of the Information Memorandum and any
other information delivered by the Agent, any other Lender or by any of their respective

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Related Parties under or in connection with this Agreement or any other Loan Document, the
transactions contemplated hereby and thereby or any other agreement, arrangement or document
entered into, made or executed in anticipation of, under or in connection with any Loan
Document.

          SECTION 8.08. No Other Duties, etc. Anything herein to the contrary notwithstanding,
none of the Persons acting as Bookrunners, Arrangers or Syndication Agent listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or any of the other
Loan Documents, except in its capacity, as applicable, as the Agent or as a Lender hereunder.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes, nor consent to any departure by any Loan Party therefrom, shall in any
event be effective unless the same shall be in writing and signed by the Required Lenders, and then
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or consent
shall, unless in writing and signed by all the Lenders, do any of the following: (a) waive any of
the conditions specified in Section 3.01, (b) increase the Commitments of the Lenders other than in
accordance with Section 2.18, (c) reduce the principal of, or interest on, the Advances or any fees
or other amounts payable hereunder, (d) postpone any date fixed for any payment of principal of, or
interest on, the Advances or any fees or other amounts payable hereunder other than in accordance
with Section 2.19, (e) change the percentage of the Commitments or of the aggregate unpaid
principal amount of the Advances, or the number of Lenders, that shall be required for the Lenders
or any of them to take any action hereunder, (f) release any Guarantor from any of its obligations
under Article VII or (g) amend this Section 9.01; and provided further that (x) no
amendment, waiver or consent shall, unless in writing and signed by the Agent in addition to the
Lenders required above to take such action, affect the rights or duties of the Agent under this
Agreement or any other Loan Document and (y) no amendment, waiver or consent shall, unless in
writing and signed by the Issuing Banks in addition to the Lenders required above to take such
action, adversely affect the rights or obligations of the Issuing Banks in their capacities as such
under this Agreement.

          SECTION 9.02. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be either (x) in writing (including telecopier communication) and mailed,
telecopied or delivered or (y) as and to the extent set forth in Section 9.02(b) and in the proviso
to this Section 9.02(a), if to the Borrower or any other Loan Party, at the Borrower’s address at
One Batesville Boulevard, Batesville, IN 47006-7798; Attention: Mark R. Lanning, Vice President and
Treasurer; Telephone: (812) 934-7256; Facsimile: (812) 934-8675; Electronic Mail:
mrlanning@hillenbrand.com; if to any Initial Lender, at its Domestic Lending Office specified
opposite its name on Schedule I hereto; if to any other Lender, at its Domestic Lending Office
specified in the Assumption Agreement or the Assignment and Acceptance pursuant to which it became
a Lender; and if to the Agent, at its address at Two Penns Way, New Castle, 19720, Attention: Bank
Loan Syndications Department; or, as to the Borrower or the Agent, at such other address as shall
be designated by such party in a written notice to the other parties and, as to each other party,
at such other address as shall be designated by such party in a written notice to the Borrower and
the Agent, provided that materials required to be delivered pursuant to Sections 5.01(a) or
5.01(b)(ii) shall be delivered to the Agent as specified in Section 9.02(b) or as otherwise
specified to the Borrower by the Agent. All such notices and communications shall, when mailed,
telecopied or e-mailed, be effective when deposited in the mails, telecopied or confirmed by
e-mail, respectively, except that notices and communications to the Agent pursuant to Article II,
III or VIII shall not be effective until received by the Agent. Delivery by telecopier of an
executed counterpart of any amendment or waiver of

57

 

any provision of this Agreement or the Notes or
of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of a
manually executed counterpart thereof.

          (b) So long as Citibank or any of its Affiliates is the Agent, materials required to be
delivered pursuant to Sections 5.01(a) or 5.01(b)(ii) shall be delivered to the Agent in an
electronic medium in a format acceptable to the Agent and the Lenders by e-mail at
oploanswebadmin@citigroup.com. The Borrower agrees that the Agent may make such materials, as well
as any other written information, documents, instruments and other material relating to the
Borrower, any of its Subsidiaries or any other materials or matters relating to this Agreement, the
Notes or any of the transactions contemplated hereby (collectively, the “Communications”)
available to the Lenders by posting such notices on the Platform. The Borrower acknowledges that
(i) the distribution of material through an electronic medium is not necessarily secure and that
there are confidentiality and other risks associated with such distribution, (ii) the Platform is
provided “as is” and “as available” and (iii) neither the Agent nor any of its Affiliates warrants
the accuracy, adequacy or completeness of the Communications or the Platform and each expressly
disclaims liability for errors or omissions in the Communications or the Platform. No warranty of
any kind, express, implied or statutory, including, without limitation, any warranty of
merchantability, fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects, is made by the Agent or any of its Affiliates in
connection with the Platform.

          SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent
to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

          SECTION 9.04. Costs and Expenses. (a) The Borrower agrees to pay on demand all
reasonable costs and expenses of the Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement, the Notes and the other documents to
be delivered hereunder, including, without limitation, (A) all due diligence, syndication
(including printing, distribution and bank meetings), transportation, computer, duplication,
appraisal, consultant, and, subject to Section 5.01(i), audit expenses, (B) the reasonable fees
and expenses of counsel for the Agent with respect thereto and with respect to advising the
Agent as to its rights and responsibilities under this Agreement and (C) all reasonable
out-of-pocket expenses incurred by any Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder. The Borrower
further agrees to pay on demand all costs and expenses of the Agent and the Lenders, if any
(including, without limitation, reasonable counsel fees and expenses), in connection with the
enforcement (whether through negotiations, legal proceedings or otherwise) of this Agreement, the
Notes and the other documents to be delivered hereunder, including, without limitation, reasonable
fees and expenses of counsel for the Agent and each Lender in connection with the enforcement of
rights under this Section 9.04(a).

          (b) The Borrower agrees to indemnify and hold harmless the Agent and each Lender and each of
their Affiliates and their officers, directors, employees, agents and advisors (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of or in connection
with or by reason of (including, without limitation, in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith) (i) the Notes, this
Agreement, any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances or Letters of Credit or (ii) the actual or alleged presence of Hazardous
Materials on any property of the Borrower or any of its

58

 

Subsidiaries or any Environmental Action
relating in any way to the Borrower or any of its Subsidiaries, except to the extent such claim,
damage, loss, liability or expense is found in a final, non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity
in this Section 9.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by the Borrower, its directors, equityholders or
creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is
otherwise a party thereto and whether or not the transactions contemplated hereby are consummated.
The Borrower also agrees not to assert any claim for special, indirect, consequential or punitive
damages against the Agent, any Lender, any of their Affiliates, or any of their respective
directors, officers, employees, attorneys and agents, on any theory of liability, arising out of or
otherwise relating to the Notes, this Agreement, any of the transactions contemplated herein or the
actual or proposed use of the proceeds of the Advances.

          (c) If any payment of principal of, or Conversion of, any Eurodollar Rate Advance is made by
the Borrower to or for the account of a Lender (i) other than on the last day of the Interest
Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.08, 2.10 or
2.12, acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason,
or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such
Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 9.07
as a result of a demand by the Borrower pursuant to Section 9.07(a) or (ii) as a result of a
payment or Conversion pursuant to Section 2.08, 2.10 or 2.12, the Borrower shall, upon demand by
such Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such
Lender any amounts required to compensate such Lender for any additional losses, costs or expenses
that it may reasonably incur as a result of such payment or Conversion, including, without
limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or
maintain such Advance.

          (d) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in Sections 2.11, 2.14 and 9.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder and under the
Notes.

          (e) Each Lender severally agrees to indemnify the Agent and each Issuing Bank (in each case,
to the extent not promptly reimbursed by the Borrower) from and against such Lender’s Ratable Share
of any and all losses, claims, damages, liabilities, obligations, penalties, actions, judgments,
suits, costs, disbursements and expenses, joint or several, of any kind or nature (including the
fees, charges and disbursements of any advisor or counsel for such Person that may be imposed on,
incurred by, or asserted against the Agent or any Issuing Bank, as the case may be, in any way
relating to or arising out of the Loan Documents or any action taken or omitted by the Agent or any
Issuing Bank under the Loan Documents; provided, however, that no Lender shall be
liable for any portion of such losses, claims, damages, liabilities, obligations, penalties,
actions, judgments, suits, costs, disbursements or expenses resulting from the Agent’s or such
Issuing Bank’s gross negligence or willful misconduct as found in a final, non-appealable judgment
by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to
reimburse the Agent and each Issuing Bank for its Ratable Share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by the Borrower under Section
9.04(a), to the extent that the Agent or such Issuing Bank is not promptly reimbursed for such
costs and expenses by the Borrower.

          SECTION 9.05. Right of Set-off. Upon either (x) the occurrence and during the
continuance of any Event of Default under Section 6.01(a) or 6.01(e) or (y) (i) the occurrence and
during the continuance of any other Event of Default and (ii) the making of the request or the
granting of the

59

 

consent specified by Section 6.01 to authorize the Agent to declare the Advances
due and payable pursuant to the provisions of Section 6.01, each Lender and each of its Affiliates
is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender or such Affiliate to or
for the credit or the account of the Borrower or any Loan Party against any and all of the
obligations of the Borrower or any Loan Party now or hereafter existing under this Agreement and
the Note held by such Lender, whether or not such Lender shall have made any demand under this
Agreement or such Note and although such obligations may be unmatured. Each Lender agrees promptly
to notify the Borrower or such Loan Party and the Agent after any such set-off and application,
provided that the failure to give such notice shall not affect the validity of such set-off
and application. The rights of each Lender and its Affiliates under this Section are in addition
to other rights and remedies (including, without limitation, other rights of set-off) that such
Lender and its Affiliates may have.

          SECTION 9.06. Binding Effect. This Agreement shall become effective (other than
Section 2.01, which shall only become effective upon satisfaction of the conditions precedent set
forth in Section 3.01) when it shall have been executed by the Borrower and the Agent and when the
Agent shall have been notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the Agent and each
Lender and their respective successors and assigns, except that neither the Borrower nor any other
Loan Party shall have the right to assign its rights hereunder or any interest herein without the
prior written consent of the Lenders.

          SECTION 9.07. Assignments and Participations. (a) Each Lender may with the consent
of each Issuing Bank (which consent shall not be unreasonably withheld or delayed) and, if demanded
by the Borrower (so long as no Default shall have occurred and be continuing and following a demand
by such Lender pursuant to Section 2.11 or 2.14) upon at least five Business Days’ notice to such
Lender and the Agent, will assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including, without limitation, all or a portion of its Revolving
Credit Commitment, its Unissued Letter of Credit Commitment, the Advances owing to it, its
participations in Letters of Credit and the Note or Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a varying,
percentage of all rights
and obligations under this Agreement, (ii) except in the case of an assignment to a Person
that, immediately prior to such assignment, was a Lender or an assignment of all of a Lender’s
rights and obligations under this Agreement, the amount of (x) the Revolving Credit Commitment of
the assigning Lender being assigned pursuant to each such assignment (determined as of the date of
the Assignment and Acceptance with respect to such assignment) shall in no event be less than
$5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) the Unissued Letter of
Credit Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such assignment) shall
in no event be less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof, in
each case, unless the Borrower and the Agent otherwise agree (iii) each such assignment shall be to
an Eligible Assignee, (iv) each such assignment made as a result of a demand by the Borrower
pursuant to this Section 9.07(a) shall be arranged by the Borrower after consultation with the
Agent and shall be either an assignment of all of the rights and obligations of the assigning
Lender under this Agreement or an assignment of a portion of such rights and obligations made
concurrently with another such assignment or other such assignments that together cover all of the
rights and obligations of the assigning Lender under this Agreement, (v) no Lender shall be
obligated to make any such assignment as a result of a demand by the Borrower pursuant to this
Section 9.07(a) unless and until such Lender shall have received one or more payments from either
the Borrower or one or more Eligible Assignees in an aggregate amount at least equal to the
aggregate outstanding principal amount of the Advances owing to such Lender, together with accrued
interest thereon to the date of payment of such principal amount and all other amounts payable to
such Lender under this Agreement, and (vi) the parties to each such assignment shall execute and
deliver to the Agent,

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for its acceptance and recording in the Register, an Assignment and
Acceptance, together with any Note subject to such assignment and a processing and recordation fee
of $3,500 payable by the parties to each such assignment, provided, however, that
(A) in the case of each assignment made as a result of a demand by the Borrower, such recordation
fee shall be payable by the Borrower except that no such recordation fee shall be payable in the
case of an assignment made at the request of the Borrower to an Eligible Assignee that is an
existing Lender and (B) no consent shall be required for an assignment to an Affiliate of the
assignor Lender. Upon such execution, delivery, acceptance and recording, from and after the
effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a
party hereto and, to the extent that rights and obligations hereunder have been assigned to it
pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder
and (y) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other
than its rights under Sections 2.11, 2.14 and 9.04 to the extent any claim thereunder relates to an
event arising prior to such assignment) and be released from its obligations (other than its
obligations under Section 8.05 to the extent any claim thereunder relates to an event arising prior
to such assignment) under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).

          (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created under or in connection
with, this Agreement or any other instrument or document furnished pursuant hereto; (ii) such
assigning Lender makes no representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or any other Loan Party or the performance or observance by
the Borrower or any other Loan Party of any of its obligations under this Agreement or any other
instrument or document furnished pursuant hereto; (iii) such assignee confirms that it has received
a copy of this Agreement, together with copies of the financial
statements referred to in Section 4.01 and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, such
assigning Lender or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such
assignee appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under this Agreement as are delegated to the Agent by the terms
hereof, together with such powers and discretion as are reasonably incidental thereto; and (vii)
such assignee agrees that it will perform in accordance with their terms all of the obligations
that by the terms of this Agreement are required to be performed by it as a Lender.

          (c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to
such assignment, the Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice thereof to the
Borrower.

          (d) The Agent shall maintain at its address referred to in Section 9.02 a copy of each
Assumption Agreement and each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the Commitment of, and

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principal amount of the Advances owing to, each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower and the Guarantors, the Agent and the Lenders may treat each Person whose
name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The
Register shall be available for inspection by the Borrower or any Lender at any reasonable time and
from time to time upon reasonable prior notice.

          (e) Each Lender may sell participations to one or more banks or other entities (other than the
Borrower or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitment, the Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender’s obligations under this Agreement (including, without limitation, its Commitment to the
Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Lender shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Guarantors, the
Agent 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 and (v) no participant
under any such participation shall have any right to approve any amendment or waiver of any
provision of this Agreement or any Note, or any consent to any departure by the Borrower or any
other Loan Party therefrom, except to the extent that such amendment, waiver or consent would
reduce the principal of, or interest on, the Notes or any fees or other amounts payable hereunder,
in each case to the extent subject to such participation, or postpone any date fixed for any
payment of principal of, or interest on, the Notes or any fees or other amounts payable hereunder,
in each case to the extent subject to such participation.

          (f) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 9.07, disclose to the assignee or participant or proposed
assignee or participant, any information relating to the Borrower furnished to such Lender by or on
behalf of the Borrower; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the confidentiality of any
Information relating to the Borrower or any of its Subsidiaries received by it from such Lender.

          (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create 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 in accordance with Regulation A of the Board of Governors of
the Federal Reserve System, 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 party hereto.

          SECTION 9.08. Confidentiality. Each of the Agent, the Lenders and the Issuing Bank
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective
managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and
other representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any Note or any action or
proceeding relating to this Agreement or any Note 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

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assignee of or participant in, or any prospective assignee of or
participant in, any of its rights or obligations under this Agreement (subject to the conditions
set forth in Section 9.07(f)) or (ii) any actual or prospective party (or its managers,
administrators, trustees, partners, directors, officers, employees, agents, advisors and other
representatives) to any swap, derivative or other transaction under which payments are to be made
by reference to the Borrower and its obligations, this Agreement or payments hereunder, (iii) any
rating agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) with the consent
of the Borrower or (h) to the extent such Information (x) becomes publicly available other than as
a result of a breach of this Section or (y) becomes available to the Agent, any Lender, the Issuing
Bank or any of their respective Affiliates on a nonconfidential basis from a source other than the
Borrower.

          For purposes of this Section, “Information” means all information received from the
Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of
their respective businesses, other than any such information that is available to the Agent, any
Lender or the Issuing Bank on a nonconfidential basis prior to disclosure by the Borrower or any of
its Subsidiaries, provided that, in the case of information received from the Borrower or
any of its Subsidiaries after the date hereof, such information is clearly identified at the time
of delivery as confidential. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.

          SECTION 9.10. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 9.11. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart
of a signature page to this Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Agreement.

          SECTION 9.13. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the Notes, 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 any such New York State court or, to the extent
permitted by law, in such federal court. The Borrower hereby further irrevocably consents to the
service of process in any action or proceeding in such courts by the mailing thereof by any parties
hereto by registered or certified mail, postage prepaid, to the Borrower at its address specified
pursuant to Section 9.02. Each of the parties hereto agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right
that any party may otherwise have to bring any action or proceeding relating to this Agreement or
the Notes in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that 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 the
Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest

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extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          SECTION 9.15. No Liability of the Issuing Banks. The Borrower assumes all risks of
the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its
use of such Letter of Credit. Neither an Issuing Bank nor any of its officers or directors shall
be liable or responsible for: (a) the use that may be made of any Letter of Credit or any acts or
omissions of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency
or genuineness of documents, or of any endorsement thereon, even if such documents should prove to
be in any or all respects invalid, insufficient, fraudulent or forged; (c) payment by such Issuing
Bank against presentation of documents that do not comply with the terms of a Letter of Credit,
including failure of any documents to bear any reference or adequate reference to the Letter of
Credit; or (d) any other circumstances whatsoever in making or failing to make payment under any
Letter of Credit, except that the Borrower shall have a claim against such Issuing Bank, and such
Issuing Bank shall be liable to the Borrower, to the extent of any direct, but not consequential,
damages suffered by the Borrower that the Borrower proves were caused by such Issuing Bank’s
willful misconduct or gross negligence when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. In furtherance and not in
limitation of the foregoing, such Issuing Bank may accept documents that appear on their face to be
in order, without responsibility for further investigation, regardless of any notice or information
to the contrary; provided that nothing herein shall be deemed to excuse such Issuing Bank
if it acts with gross negligence or willful misconduct in accepting such documents.

          SECTION 9.16. Patriot Act Notice. Each Lender and the Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of the Patriot
Act, it is required to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information that will allow
such Lender or the Agent, as applicable, to identify the Borrower in
accordance with the Patriot Act. The Borrower shall provide such information and take such
actions as are reasonably requested by the Agent or any Lenders in order to assist the Agent and
the Lenders in maintaining compliance with the Patriot Act.

          SECTION 9.17. Power of Attorney. Each Subsidiary of the Borrower may from time to
time authorize and appoint the Borrower as its attorney-in-fact to execute and deliver (a) any
amendment, waiver or consent in accordance with Section 9.01 on behalf of and in the name of such
Subsidiary and (b) any notice or other communication hereunder, on behalf of and in the name of
such Subsidiary. Such authorization shall become effective as of the date on which such Subsidiary
delivers to the Agent a power of attorney enforceable under applicable law and any additional
information to the Agent as necessary to make such power of attorney the legal, valid and binding
obligation of such Subsidiary.

          SECTION 9.18. No Fiduciary Duty. Each of the Agent, each Lender and their Affiliates
(collectively, solely for purposes of this paragraph, the “Lenders”), may have economic interests
that conflict with those of the Borrower. The Borrower agrees that nothing in the Loan Documents
or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or
other implied duty between the Lenders and the Borrower, its stockholders or its Affiliates. The
Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents are
arm’s-length commercial transactions between the Lenders, on the one hand, and the Borrower, on the
other, (ii) in connection therewith and with the process leading to such transaction each of the
Lenders is acting solely as a principal and not the agent or fiduciary of the Borrower, its
management, stockholders, creditors or any other Person, (iii) no Lender has assumed an advisory or
fiduciary responsibility in favor of the Borrower with respect to the transactions contemplated
hereby or the process leading hereto (irrespective of whether any Lender or any of its Affiliates
has advised or is currently advising the Borrower on other matters) or any other obligation to the
Borrower except the obligations expressly set forth in the Loan

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Documents and (iv) the Borrower has
consulted its own legal and financial advisors to the extent it deemed appropriate. The Borrower
further acknowledges and agrees that it is responsible for making its own independent judgment with
respect to such transactions and the process leading thereto. The Borrower agrees that it will not
claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary
or similar duty to the Borrower, in connection with such transaction or the process leading thereto

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          SECTION 9.19. Waiver of Jury Trial. Each of the Borrower, the Guarantors, the Agent
and the Lenders hereby irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this
Agreement or the Notes or the actions of the Agent or any Lender in the negotiation,
administration, performance or enforcement thereof.

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

	 	 	 	 	 
	 	BATESVILLE HOLDINGS, INC., as Borrower

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	BATESVILLE SERVICES, INC., as Guarantor

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	CITIBANK, N.A., as Agent

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	Initial Lenders

CITIBANK, N.A.

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 

66

 

	 	 	 	 	 

	 	 	 	 	 
	 	FIFTH THIRD BANK

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	REGIONS BANK

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	THE NORTHERN TRUST COMPANY

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	WILLIAM STREET LLC

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 

67

 

SCHEDULE I

BATESVILLE HOLDINGS, INC.

FIVE YEAR CREDIT AGREEMENT

APPLICABLE LENDING OFFICES

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Letter of	 	 	 	 
	Name of Initial	 	Credit	 	Credit	 		 	
	Lender	 	Commitment	 	Commitment	 	Domestic Lending Office	 	Eurodollar Lending Office
	Bank of America,
N.A.

	 	$	45,000,000	 	 	$	10,000,000	 	 	101 N. Tryon Street,
4th Floor

Charlotte, NC 28255

Attn: Manpreet Kaur

T: 415-436-4777

ext. 8544

F: 214-290-9446
	 	101 N. Tryon Street,
4th Floor

Charlotte, NC 28255

Attn: Manpreet Kaur

T: 415-436-4777

ext. 8544

F: 214-290-9446
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Citibank, N.A.

	 	$	67,500,000	 	 	$	15,000,000	 	 	2 Penn’s Way

Suite 110

New Castle, DE 19720

Attn: Michael Gordon

T: 302-894-6047

F: 212-994-0847
	 	2 Penn’s Way Suite 110

New Castle, DE 19720

Attn: Michael Gordon

T: 302-894-6047

F: 212-994-0847
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Fifth Third Bank

	 	$	45,000,000	 	 	 	 	 	 	38 Fountain Square Plaza

Cincinnati, OH 45263

Attn: Joyce Elam

T: 513-358-7336

F: 513-358-3479
	 	38 Fountain Square Plaza

Cincinnati, OH 45263

Attn: Joyce Elam

T: 513-358-7336

F: 513-358-3479
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	JPMorgan Chase
Bank, N.A.

	 	$	67,500,000	 	 	$	15,000,000	 	 	21 South Clark St.

Chicago, IL 60603

Attn: Cecily A. Roland

T: 312-732-2016

F: 312-385-7098
	 	21 South Clark St.

Chicago, IL 60603

Attn: Cecily A. Roland

T: 312-732-2016

F: 312-385-7098
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	The Northern Trust 

Company

	 	$	25,000,000	 	 	 	 	 	 	50 S. LaSalle Street

Chicago, IL 60675

Attn: Ms. Sharon Jackson

T: 312-630-1609

F: 312-630-1566
	 	50 S. LaSalle Street

Chicago, IL 60675

Attn: Ms. Sharon Jackson

T: 312-630-1609

F: 312-630-1566
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	PNC Bank, National 

Association

	 	$	45,000,000	 	 	$	10,000,000	 	 	201 East Fifth Street

Cincinnati, OH 45202

Attn: Marc Accamando

T: 412-768-6214

F: 412-768-4586
	 	201 East Fifth Street

Cincinnati, OH 45202

Attn: Marc Accamando

T: 412-768-6214

F: 412-768-4586
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Regions Bank

	 	$	35,000,000	 	 	 	 	 	 	417 North 20th Street

Birmingham, AL 35203

Attn: Ashley Lewis

T: 205-420-5574

F: 205-801-5250
	 	417 North 20th Street

Birmingham, AL 35203

Attn: Ashley Lewis

T: 205-420-5574

F: 205-801-5250

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	Letter of	 	 	 	 
	Name of Initial	 	Credit	 	Credit	 		 	
	Lender	 	Commitment	 	Commitment	 	Domestic Lending Office	 	Eurodollar Lending Office
	U.S. Bank National
Association

	 	$	45,000,000	 	 	 	 	 	 	One U.S. Bank Plaza

SL-MO-T12M

St. Louis, MO 63101

Attn: Barbara Campbell

T: 920-237-7370

F: 920-237-7993
	 	One U.S. Bank Plaza

SL-MO-T12M

St. Louis, MO 63101

Attn: Barbara Campbell

T: 920-237-7370

F: 920-237-7993
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	William Street LLC

	 	$	25,000,000	 	 	 	 	 	 	1 New York Plaza,

40th Floor

New York, NY 10004

Attn: Pedro Ramirez

T: 917-343-8319

F: 212-428-1243
	 	1 New York Plaza,

40th Floor

New York, NY 10004

Attn: Pedro Ramirez

T: 917-343-8319

F: 212-428-1243
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Total:

	 	$	400,000,000	 	 	$	50,000,000	 	 	 	 	 

2

 

SCHEDULE II

GUARANTORS

Batesville Services, Inc.

 

 

SCHEDULE 2.01(b)

EXISTING LETTERS OF CREDIT

None.

 

 

SCHEDULE 3.01(b)

DISCLOSED LITIGATION

	1.	 	Funeral Consumers Alliance, Inc. vs. Service Corporation International, et al. filed on May
2, 2005 in the United States District Court for the Northern District of California (the
“FCA Matter”), and purported copycat class action lawsuits filed after the FCA Matter
on behalf of consumers based on essentially the same factual allegations alleged in the FCA
Matter. The FCA Matter has been transferred to the United States District Court for the
Southern District of Texas.
	 
	2.	 	Pioneer Valley Casket Co., Inc., et al. vs. Service Corporation International, et al. filed
July 8, 2005 in the United States District Court for the Northern District of California.
This matter has been transferred to the United States District Court for the Southern District
of Texas
	 
	3.	 	Civil Investigative Demands by the Attorney General of Maryland and certain other state
attorneys general with respect to purported anticompetitive practices in the death care
industry.
	 
	4.	 	Vertie Staples v. Batesville Casket Company, Inc. filed on August 17, 2007 in the United
States District Court for the Eastern District of Arkansas.
	 

 

 

SCHEDULE 5.02(a)

EXISTING LIENS

None

 

 

SCHEDULE 5.02(c)

EXISTING INDEBTEDNESS

	1.	 	Deferred compensation obligations owed to Designated Individuals (as defined in Schedule
2.03(e) of the Distribution Agreement).
	 
	2.	 	Purchase price adjustments that may be due to HII and/or certain of its subsidiaries for
asset acquisitions in connection with consummation of the Spin Transaction.

 

 

EXHIBIT A — FORM OF

REVOLVING CREDIT

PROMISSORY NOTE

	 	 	 
	U.S.$                                        

	 	Dated:                                         , 200_

          FOR VALUE RECEIVED, the undersigned, BATESVILLE HOLDINGS, INC., an Indiana corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of
__________________________ (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date
applicable to the Lender (each as defined in the Credit Agreement referred to below) the principal
sum of U.S.$[amount of the Lender’s Commitment in figures] or, if less, the aggregate principal
amount of the Advances made by the Lender to the Borrower pursuant to the Credit Agreement dated as
of March 28, 2008 among the Borrower, the Lender and certain other lenders parties thereto, and
Citibank, N.A. as Agent for the Lender and such other lenders (as amended or modified from time to
time, the “Credit Agreement”; the terms defined therein being used herein as therein
defined) outstanding on such Termination Date.

          The Borrower promises to pay interest on the unpaid principal amount of each Advance from the
date of such Advance until such principal amount is paid in full, at such interest rates, and
payable at such times, as are specified in the Credit Agreement.

          Both principal and interest in respect of each Advance in Dollars are payable in lawful money
of the United States of America to the Agent at its account maintained at 388 Greenwich Street, New
York, New York 10013, in same day funds. Each Advance owing to the Lender by the Borrower pursuant
to the Credit Agreement, and all payments made on account of principal thereof, shall be recorded
by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part
of this Promissory Note.

          This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
Advances by the Lender to the Borrower from time to time in an aggregate amount not to exceed at
any time outstanding the U.S. dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Advance being evidenced by this Promissory Note and (ii) contains
provisions for acceleration of the maturity hereof upon the happening of certain stated events and
also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and
conditions therein specified.

	 	 	 	 	 
	 	BATESVILLE HOLDINGS, INC.

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 

 

 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	 	Unpaid	 	 	 	 
	 	 	 	 	Amount of	 	 	Principal Paid	 	 	Principal	 	 	Notation	 
	Date	 	 	Advance	 	 	or Prepaid	 	 	Balance	 	 	Made By	 

 

2

 

EXHIBIT B — FORM OF NOTICE OF

BORROWING

Citibank, N.A., as Agent

   for the Lenders parties

   to the Credit Agreement

   referred to below

   Two Penns Way

   New Castle, Delaware 19720

[Date]

          Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

          The undersigned, Batesville Holdings, Inc., refers to the Credit Agreement, dated as of March
28, 2008 (as amended or modified from time to time, the “Credit Agreement”, the terms
defined therein being used herein as therein defined), among the undersigned, certain Lenders
parties thereto and Citibank, N.A., as Agent for said Lenders, and hereby gives you notice,
irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests
a Borrowing under the Credit Agreement, and in that connection sets forth below the information
relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the
Credit Agreement:

     (i) The Business Day of the Proposed Borrowing is                                         , 200_.

     (ii) The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances]
[Eurodollar Rate Advances].

     (iii) The aggregate amount of the Proposed Borrowing is $                                        .

     [(iv) The initial Interest Period for each Eurodollar Rate Advance made as part of the
Proposed Borrowing is       month[s].]

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

     (A) the representations and warranties contained in Section 4.01 of the Credit
Agreement (except the representations set forth in subsection (e)(iii) thereof and in
subsection (f) thereof (other than clause (ii) thereof)) are correct, before and after
giving effect to the Proposed Borrowing and to the application of the proceeds therefrom, as
though made on and as of such date, except (x) to the extent that such representations and
warranties specifically refer to an earlier date, such representations and warranties shall
be true and correct as of such earlier date and (y) the representations and warranties
contained in subsections (i) and (ii) of Section 4.01(e) shall be deemed to refer to the
most recent financial statements furnished pursuant to subsections (i) and (ii),
respectively, of Section 5.01(a); and

 

 

     (B) no event has occurred and is continuing, or would result from such Proposed
Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

	 	 	 	 	 
	 	Very truly yours,

BATESVILLE HOLDINGS, INC.

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

2

 

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Credit Agreement dated as of March 28, 2008 (as amended or modified
from time to time, the “Credit Agreement”) among Batesville Holdings, Inc., an Indiana
corporation (the “Company”), the Lenders (as defined in the Credit Agreement) and Citibank,
N.A., as agent for the Lenders (the “Agent”). Terms defined in the Credit Agreement are
used herein with the same meaning.

          The “Assignor” and the “Assignee” referred to on Schedule I hereto agree as follows:

          1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the [Credit Agreement as of the date hereof] [the Letter of Credit Facility] equal to the
percentage interest specified on Schedule 1 hereto of [all outstanding rights and obligations under
the Credit Agreement together with participations in Letters of Credit held by the Assignor on the
date hereof] [such Assignor’s Unissued Letter of Credit Commitment]. After giving effect to such
sale and assignment, the Assignee’s [Revolving Credit Commitment and the amount of the Advances
owing to the Assignee] [Letter of Credit Commitment] will be as set forth on Schedule 1 hereto.

          2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Credit Agreement or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to be created under or
in connection with, the Credit Agreement or any other instrument or document furnished pursuant
thereto; (iii) makes no representation or warranty and assumes no responsibility with respect to
the financial condition of the Borrower or any other Loan Party or the performance or observance by
the Borrower or any other Loan Party of any of its obligations under the Credit Agreement or any
other instrument or document furnished pursuant thereto; and (iv) attaches the Note[, if any,] held
by the Assignor [and requests that the Agent exchange such Note for a new Note payable to the order
of [the Assignee in an amount equal to the Revolving Credit Commitment assumed by the Assignee
pursuant hereto or new Notes payable to the order of the Assignee in an amount equal to the
Revolving Credit Commitment assumed by the Assignee pursuant hereto and] the Assignor in an amount
equal to the Revolving Credit Commitment retained by the Assignor under the Credit Agreement[,
respectively,] as specified on Schedule 1 hereto].

          3. The Assignee (i) confirms that it has received a copy of the Credit Agreement, together
with copies of the financial statements referred to in Section 4.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without
reliance upon the Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement; (iii) confirms that it is an Eligible
Assignee; (iv) appoints and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers and discretion under the Credit Agreement as are delegated to the Agent by the
terms thereof, together with such powers and discretion as are reasonably incidental thereto; (v)
agrees that it will perform in accordance with their terms all of the obligations that by the terms
of the Credit Agreement are required to be performed by it as a Lender; and (vi) attaches any U.S.
Internal Revenue Service forms required under Section 2.14 of the Credit Agreement.

 

 

          4. Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

          5. Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the
Agent shall make all payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal, interest and facility
fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods prior to the Effective
Date directly between themselves.

          7. This Assignment and Acceptance shall be governed by, and construed in accordance with, the
laws of the State of New York.

          8. This Assignment and Acceptance may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

2

 

Schedule 1

to

Assignment and Acceptance

	 	 	 
	Percentage interest assigned:
	 	                    %
	 
	 	 
	[Assignee’s Revolving Credit Commitment:
	 	$                    
	 
	 	 
	Aggregate outstanding principal amount of Advances assigned:
	 	$                    
	 
	 	 
	Principal amount of Note payable to Assignee:
	 	$                    
	 
	 	 
	Principal amount of Note payable to Assignor:
	 	$                    ]
	 
	 	 
	[Assignee’s Letter of Credit Commitment:
	 	$                    ]
	 
	 	 
	Effective Date*:                     , 200___
	 	 

	 	 	 	 	 
	 	[NAME OF ASSIGNOR], as Assignor

 	 
	 	By  	 	 
	 	 	Title: 	 
	 
	 	Dated:                      , 200___ 	 
	 
	 	[NAME OF ASSIGNEE], as Assignee

 	 
	 	By  	 	 
	 	 	Title: 	 
	 
	 	Dated:                      , 200___ 	 
	 
	 	Domestic Lending Office:

           [Address]

 	 
	 
	 	Eurodollar Lending Office:

           [Address]

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

			
	* 	 	This date should be no earlier than five Business Days
after the delivery of this Assignment and Acceptance to the Agent.

3

 

	 	 	 	 	 
	Accepted [and Approved]** this

                     day of                     , 200___

CITIBANK, N.A., as Agent

 	 	 
	By  	 	 	 
	 	Title: 	 	 
	 	 	 	 
	 
	[Approved this                      day

of                     , 200___

BATESVILLE HOLDINGS, INC.

 	 	 
	By  	
 	]* 	 
	 	Title: 	 	 
	 	 	 	 
	 
	[Approved this                      day

of                     , 200___

[ISSUING BANK]

 	 	 
	By  	
 	]*** 	 
	 	Title: 	 	 
	 	 	 	 
	 

 

			
	** 	 	Required if the Assignee is an Eligible Assignee solely
by reason of clause (iii) of the definition of “Eligible Assignee”.
	 
	* 	 	Required if the Assignee is an Eligible Assignee solely
by reason of clause (iii) of the definition of “Eligible Assignee”.
	 
	*** 	 	Required unless the Assignee is an Affiliate of the
Assignor.

4

 

EXHIBIT D — FORM OF

COMPLIANCE CERTIFICATE

Financial Statement Date:                     ,

To: Citibank, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement, dated as of March 28, 2008 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), among
Batesville Holdings, Inc., an Indiana corporation (the “Borrower”), the Lenders from time
to time party thereto, Citibank, N.A., as Agent, and certain other Persons party thereto.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                     of the Borrower, and that, as such, he/she is authorized to execute and deliver this
Certificate to the Agent on the behalf of the Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. Attached hereto as Schedule 1 are the year-end audited financial statements
required by Section 5.01(a)(i) of the Agreement for the fiscal year of the Borrower ended
as of the above date, together with the report and opinion of an independent certified public
accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. Attached hereto as Schedule 1 are the unaudited financial statements required by
Section 5.01(a)(ii) of the Agreement for the fiscal quarter of the Borrower ended as of the
above date. Such financial statements fairly present the financial condition, results of
operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such
date and for such period, subject only to normal year-end audit adjustments and the absence of
footnotes.

[select one:]

     2. [To the best knowledge of the undersigned during such fiscal period, the Borrower performed
and observed each covenant and condition of the Loan Documents applicable to it.]

—or—

     [The following covenants or conditions have not been performed or observed and the following
is a list of each such Default and its nature and status:]

     3. The representations and warranties of the Borrower contained in Section 4.01 of the
Agreement are true and correct on and as of the date hereof, except (i) to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are true
and correct as of such earlier date, and except that for purposes of this Compliance Certificate,
(ii) the representations and warranties contained in subsections (i) and (ii) of Section
4.01(e) shall be deemed to refer to the most recent financial statements furnished pursuant to
subsections (i) and (ii), respectively, of Section 5.01(a)

D — 1

Form of Compliance Certificate

 

 

of the Agreement, including the statements in connection with which this Compliance
Certificate is delivered and (iii) the representations and warranties contained in subsection
4.01(e)(iii) and in subsection 4.01(f)(i) shall be true and correct only as of the date
of the Effective Date, each Increase Date and each Extension Date.

     4. The financial covenant analyses and information set forth on Schedule 2 attached
hereto are true and correct in all material respects on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                                         ,
                    .

	 	 	 	 	 
	 	BATESVILLE HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

D — 2

Form of Compliance Certificate

 

 

For the
Quarter/Year ended                                          (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 	 	 
	I.	 	Consolidated Indebtedness.	 	 
	 
	 	 	 	 	 	 
	 

	 	A.
	 	For the Borrower and its Subsidiaries, calculated on a
consolidated basis, all Indebtedness at Statement Date
calculated before giving consideration to the second
paragraph of Section 5.03(a).
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	B.
	 	For the Borrower and its Subsidiaries calculated on a
consolidated basis, 25% of the principal amount of any
mandatorily convertible unsecured bonds, debentures,
preferred stock or similar instruments in a principal
amount not to exceed $500,000,000 in the aggregate
during the term of the Agreement which are payable in no
more than three years (whether by redemption, call option
or otherwise) solely in common stock or other common
equity interests of the Borrower or its Subsidiaries
(the “Convertibles”)
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	C.
	 	Actual Consolidated Indebtedness
at Statement Date (Lines 1A. + 1.B.):
	 	$                    
	 
	 	 	 	 	 	 
	II.	 	Consolidated EBITDA.	 	 
	 
	 	 	 	 	 	 
	 

	 	A.
	 	Net income (or loss)
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	B.
	 	Interest expense.
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	C.
	 	Income tax expense
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	D.
	 	Depreciation expense
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	E.
	 	Amortization expense
	 	$                    
	 
	 	 	 	 	 	 
	 

	 	F.
	 	Actual Consolidated EBITDA for the period of
four fiscal quarters ended at Statement Date
(Lines II.A. + II.B. + II.C. + II.D. + II.E):
	 	$                    
	 
	 	 	 	 	 	 
	III.	 	Actual Consolidated Indebtedness to Consolidated EBITDA
Ratio at Statement Date (Line I.C.  ̧ Line II.F.):	 	                    
to 1
	 
	 	 	 	 	 	 
	 	 	Maximum permitted by
Section 5.03(a):	 	3.50 to 1
	 
	 	 	 	 	 	 
	IV.	 	Consolidated interest payable on, and amortization
of debt discount in respect of, all Indebtedness during
the period of	 	 

 

 

	 	 	 	 	 	 	 
	 	 	four fiscal quarters ended at Statement Date	 	$                    
	 
	 	 	 	 	 	 
	V.	 	Actual Consolidated EBITDA to Consolidated Interest
Ratio at Statement Date (Line II.F.  ̧ Line IV):	 	                    
to 1
	 
	 	 	 	 	 	 
	 	 	Maximum permitted by
Section 5.03(b):	 	3.50 to 1

D — 2

Form of Compliance Certificate

 

 

EXHIBIT E — FORM OF

OPINION OF COUNSEL

FOR THE BORROWER

March 28, 2008

To each of the Lenders and the

Agents party to the Credit Agreement

described herein

Ladies and Gentlemen:

     We have acted as counsel to Batesville Holdings, Inc., an Indiana corporation (the
“Borrower”) and Batesville Services, Inc., an Indiana corporation (the “Guarantor”)
in connection with the Credit Agreement dated as of March 28, 2008 (the “Credit Agreement”)
among the Borrower, the financial institutions party thereto as lenders (the “Lenders”),
and Citibank, N.A., as administrative agent for such Lenders (in such capacity, the
“Administrative Agent”). The Administrative Agent and the syndication agent referred to in
the Credit Agreement are herein collectively referred to as the “Agents” and the Borrower
and the Guarantor are each individually referred to as an “Opinion Party” and collectively
as the “Opinion Parties”). This opinion letter is delivered to you pursuant to Section
3.01(h)(iv) of the Credit Agreement.

     In connection with this opinion, we have examined originals or counterparts of the following
documents (collectively, the “Opinion Documents”):

	 	(i)	 	a counterpart of the Credit Agreement executed by each Opinion Party, and
	 
	 	(ii)	 	the Notes executed by the Borrower on the date hereof.

     We have also examined originals or counterparts of such records and documents as we have
deemed necessary and relevant for purposes of this opinion. In addition, we have examined the
originals, or copies certified to our satisfaction, of such other corporate records of the Opinion
Parties, certificates of public officials and of an officer of the Borrower (including the
certificate dated the date hereof and attached hereto as Exhibit A), and agreements,
instruments and other documents, as we have deemed necessary as a basis for the opinions expressed
below. In addition, we have relied on the opinion letter with respect to the Opinion Parties
issued by John Zerkle on even date herewith and certificates or comparable documents of an officer
of the Borrower as to certain matters of fact relating to this opinion. We have also made such
investigations of law as we have deemed necessary and relevant as a basis for this opinion.

     In making our examinations, we have assumed: (i) the genuineness of all signatures on all
documents furnished to us (including, without limitation, those of each Opinion Party); (ii) the

 

 

authenticity of all documents and records submitted to us as originals; (iii) the conformity
to original documents of documents and records submitted to us as copies; (iv) the truthfulness of
all statements of fact made in documents and records submitted to us; and (v) the accuracy of all
written statements made to us as to issues of fact.

     Capitalized terms used herein and not otherwise defined herein have the meanings assigned to
such terms in the Credit Agreement. For purposes of this opinion letter:

     “Applicable Law” means those laws, rules and regulations of the State of New
York and the United States of America which in our experience are normally applicable to the
transactions of the type provided for in the Opinion Documents, except that the term
“Applicable Law” does not include, and we express no opinion with regard to (i) any law,
rule or regulation relating to (A) any federal or state securities, commodities, insurance,
or investment company laws and regulations; (B) any federal or state labor, pension, or
other employee benefit laws and regulations; (C) any federal or state antitrust, trade or
unfair competition laws and regulations; (D) any federal or state laws and regulations
relating to the environment, safety, health, or other similar matters; (E) any laws, rules,
and regulations of any county, municipality, subdivision or similar local authority of any
jurisdiction or any agency or instrumentality thereof; (F) any federal or state tax laws or
regulations; or (G) any federal or state laws or regulations relating to copyrights,
patents, trademarks, or other intellectual property.

     “Government Approvals” means any order, consent, approval, license, permit,
authorization of, or filing, recording, registration or qualification with, or exemption by,
or notice to any governmental body or authority of the State of New York or of the United
States of America, pursuant to any Applicable Law.

     Based upon the foregoing and subject to the limitations, qualifications and assumptions set
forth in this opinion, and having due regard for such legal considerations as we deem relevant in
respect of Applicable Law, we are of the opinion that:

     1. No Governmental Approval is necessary or required in connection with the execution,
delivery or performance by, or enforcement against (i) each Opinion Party of the Credit Agreement
and (ii) the Borrower of the Notes.

     2. (a) The Credit Agreement is, and after giving effect to the initial Borrowing, the Notes
will be, legal, valid and binding obligations of the Borrower, enforceable against the Borrower in
accordance with their respective terms.

          (b) The obligations of the Guarantor set forth in the Credit Agreement are legal, valid and
binding obligations of the Guarantor, enforceable against the Guarantor in accordance with its
terms.

     3. The execution, delivery and performance by each Opinion Party of the Credit Agreement and
of the Notes by the Borrower, and the consummation of the transactions contemplated by the Opinion
Documents, does not and will not violate any Applicable Law.

 

 

     The foregoing opinions are, with your concurrence, predicated on and qualified in their
entirety by the following:

     (a) The foregoing opinions are based on and are limited to Applicable Law. We render no
opinion with respect to the law of any other jurisdiction, and we have assumed the validity,
binding effect and enforceability of the Opinion Documents under the law of each such other
jurisdiction relevant thereto.

     (b) Our opinions are (i) subject to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance, preference, liquidation, conservatorship or
other similar law affecting creditor’s rights generally, and such duties and standards as are or
may be imposed on creditors (including, without limitation, good faith, materiality, reasonableness
and fair dealing) under any applicable law or judicial decision, and (ii) subject to general
principles of equity and public policy, and we express no opinion as to the availability of
specific performance, injunctive relief or any other equitable remedy.

     (c) We express no opinion as to the legality, validity, binding effect or enforceability of
any provision in the Opinion Documents (i) purporting to restrict access to courts or to legal or
equitable remedies; (ii) purporting to establish evidentiary standards; (iii) purporting to grant a
right of set-off of moneys, securities and other properties of any Person other than the Person
granting such right; (iv) providing for rights of contribution; (v) purporting to irrevocably
appoint any Person as attorney-in-fact; (vi) purporting to indemnify, defend or hold harmless any
Person (A) in conflict with principles of public policy, or (B) to the extent precluded by federal
or state securities laws, (vii) purporting to indemnify or exculpate any Person from the
consequences of its own negligence or strict liability or for illegality or violation of laws;
(viii) purporting to affect any right to trial by jury, venue or jurisdiction; or (ix) pertaining
to subrogation rights, delay or omission of enforcement of rights or remedies, severability or
marshaling of assets.

     (d) We express no opinion as to any provision of the Opinion Documents insofar as it provides
that any Person purchasing a participation from a Lender pursuant thereto may exercise set-off or
similar rights with respect to such participation.

     (e) We have assumed, as to each Person (other than the Opinion Parties) shown as being a party
to any of the Loan Documents, (i) that such Person is duly organized, validly existing and in good
standing under the laws of the jurisdiction in which it is organized, (ii) that such Loan Documents
have been duly authorized, executed and delivered by such Person, (iii) that such Person has the
requisite power and authority to execute, deliver and perform its obligations under the Loan
Documents to which it is a party and will perform such obligations in compliance with all laws and
regulations applicable to it, (iv) that there are no suits, actions or proceedings pending against
such Person or judicial or administrative orders, judgments, or decrees binding on such Person that
affect the legality, validity, binding effect or enforceability of the Loan Documents to which it
is a party, (v) that no consent, license, approval or authorization of, or filing or registration
with, any governmental authority is required for the valid execution, delivery and performance of
the Loan Documents to which such Person is a party, and (vi) that the execution, delivery and
performance of such Loan Documents by such Person does not violate (1) any provision of any law or
regulation, (2) any order, judgment, writ,

 

 

injunction, award or decree of any court, arbitrator, or governmental authority, (3) the charter of
bylaws of such Person, or (4) any indenture, lease or other agreement to which such Person is a
party or by which such Person or any of its assets is bound. Furthermore, we have assumed as to
each Person party to the Loan Documents (other than the Opinion Parties) that such Loan Documents
constitute the legal, valid and binding obligation of such Person enforceable against such Person
in accordance with their terms, subject to the type of qualifications regarding enforceability as
are set forth in this opinion. We have also assumed that each Lender will make each extension of
credit under the Loan Documents for its own account in the ordinary course of its commercial
lending business and not with a view to, or for sale in connection with, any distribution of its
Note or extensions of credit and that no Lender is participating in any such distribution other
than assignments and participations made in accordance with the terms of the Loan Documents and not
in violation of any securities laws.

     (f) We express no opinion as to the effect on the opinions herein stated of (i) the compliance
or non-compliance of any party (other than the Opinion Parties to the extent expressly set forth in
our opinions above) to the Loan Documents with any state, federal or other laws or regulations
applicable to it, and (ii) the legal or regulatory status or the nature of the business of any such
party (other than the Opinion Parties to the extent expressly set forth in our opinions above).

     (g) We express no opinion as to the effect of the law of any jurisdiction other than the State
of New York wherein any Lender or Agent may be located or wherein enforcement of the Loan Documents
may be sought which limits the interest, fees or other charges legally chargeable or collectible.

     (h) We have assumed that the factual matters included in the representations and warranties
made by the Opinion Parties in the Opinion Documents are true and accurate as of the date hereof.

     (i) Requirements in the Opinion Documents specifying that provisions thereof may only be
waived in writing may not be legal, valid, binding and enforceable to the extent that an oral
agreement or an implied agreement by trade practice or course of conduct has been created modifying
any provision of such documents.

     (j) We express no opinion as to any provision in the Opinion Documents (i) with respect to
consent to jurisdiction, (ii) with respect to a waiver of inconvenient forum with respect to
proceedings in any court, (iii) purporting to waive rights to notice, or (iv) providing that
remedies are cumulative or that decisions by a party are conclusive.

     (k) This opinion is given only as of the date hereof, and we have no obligation to report to
you or any other Person any fact or circumstance that may hereafter come to our attention or any
change in law.

     This opinion (i) is delivered in connection with the Opinion Documents only to counsel for the
Administrative Agent, you and your assignees permitted under the Credit Agreement, solely in your
capacities identified as addressees of this opinion, and only in connection with the transactions
described above, (ii) does not extend to counsel for the Administrative Agent, you or

 

 

your assignees when acting in any other capacity or to any other Person without our prior express
written consent, and (iii) may not be quoted, circulated, or published, in whole or in part, or
furnished to any other Person (other than to independent auditors and attorneys, participants or
transferees, regulators or government agencies, or pursuant to a court order, subpoena or other
legal process) without our prior express written consent. This opinion is strictly limited to the
matters stated herein, and no other or more extensive opinion is intended, implied or to be
inferred beyond the matters expressly stated herein.

	 	 	 	 	 
	 	Very truly yours,

Bracewell & Giuliani LLP

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

Exhibit A

Certificate from the Borrower’s Vice President

(See Attached)

 

 

OFFICERS’ CERTIFICATE

          This certificate is delivered in connection with the opinion of Bracewell & Giuliani LLP dated
as of March 28, 2008 and issued in connection with the Credit Agreement (the “Credit
Agreement”) dated as of the same date between Batesville Holdings, Inc., an Indiana corporation
(the “Borrower”), the financial institutions party thereto as lenders (the
“Lenders”), and Citibank, N.A., as administrative agent for such Lenders. Capitalized
terms used in this Certificate and not otherwise defined herein have the meanings assigned to such
terms in the Credit Agreement.

     The undersigned hereby certifies, solely in his capacity as an officer of the Borrower, and
not in his personal capacity, that he is the duly elected and acting Vice President of the Borrower
and that there are no indentures, loan or credit agreements, leases, guarantees, mortgages,
security agreements, bonds, notes, orders, writs, judgments, awards, injunctions, decrees or any
other agreements or instruments that affect or purport to affect the Borrower’s right to borrow
money or the Borrower’s obligations under the Credit Agreement or the Notes.

     Dated as of March 28, 2008.

	 	 	 	 	 
	 	Batesville Holdings, Inc.

 	 
	 	By:  	 	 
	 	 	Mark R. Lanning 	 
	 	 	Vice President 	 

 

 

	 	 	 	 	 

[On Company Letterhead]

March 28, 2008

To each of the Lenders and the

Agents party to the Credit Agreement

described herein

	 	Re:	 	 The Credit Agreement dated as of March 28, 2008 (the “Credit
Agreement”) among Batesville Holdings, Inc., an Indiana corporation (the
“Company”), each lender from time to time party thereto, Citibank, N.A., as
Administrative Agent, and certain other Persons party thereto.

Ladies and Gentlemen:

     I am Sr. Vice President and Secretary of the Company, and have represented the Company and
Batesville Services, Inc. (the “Guarantor”) in connection with the Credit Agreement.
Capitalized terms used herein and defined in the Credit Agreement but not defined herein are used
herein as therein defined. The Administrative Agent and the syndication agent referred to in the
Credit Agreement are herein collectively referred to as the “Agents” and the Company and
the Guarantor are each individually referred to as an “Opinion Party” and collectively as
the “Opinion Parties”).

     In connection with the rendering of this opinion, I have reviewed (i) the Credit Agreement
executed by the Opinion Parties and the Notes executed by the Company on the date hereof
(collectively, the “Opinion Documents”); (ii) Organization Documents and resolutions of the
Opinion Parties; and (iii) such other matters of fact and law which I deemed necessary in order to
render this opinion.

     I have also discussed the matters addressed in this opinion with officers of one or more
Opinion Parties to the extent I deemed appropriate to enable me to render this opinion.

     In connection with this opinion, I have assumed (i) the genuineness of all signatures (other
than the signatures of the Opinion Parties); (ii) the authenticity of all documents submitted to me
as originals; and (iii) the conformity to original documents of all documents submitted to me as
photostatic or certified copies and the authenticity of the originals of such copies.

     Based upon the foregoing, and subject to the qualifications and exceptions hereinafter set
forth, I am of the opinion that:

     1. Each Opinion Party is a corporation duly organized and validly existing under the laws of
the jurisdiction of its organization.

     2. The execution, delivery and performance by each Opinion Party of the Opinion Documents to
which it is a party, and the consummation of the transactions contemplated

 

 

thereby, are within such Opinion Party’s corporate powers, have been duly authorized by all
necessary corporate action, and do not contravene the Organization Documents of such Opinion Party.
The Opinion Documents have been duly executed and delivered by an authorized officer of each
Opinion Party that is a party thereto.

     3. To the best of my knowledge, there are no pending or overtly threatened actions or
proceedings against the Company or any of its Subsidiaries before any court, governmental agency or
arbitrator that purport to affect the legality, validity, binding effect or enforceability of any
Opinion Document or the consummation of the transactions contemplated thereby or, except as
described in Schedule 3.01(b) to the Credit Agreement, that are likely to have a materially adverse
effect upon the financial condition or operations of the Company or any of its Subsidiaries.

     The opinions set forth above are expressly subject to the following limitations and
assumptions, in addition to those above:

	 	a)	 	In the foregoing opinions, the phrase “to my knowledge” refers to my
conscious awareness of information.
	 
	 	b)	 	I am licensed to practice law in the State of Indiana and do not hold
myself out as an expert on the law of any state other than the State of Indiana.
Consequently, the foregoing opinions are limited in all respects to the federal
laws of the United States of America and the law of the State of Indiana (without
consideration of judicial or administrative interpretations or announcements). I
express no opinion as to the laws of any other state or jurisdiction other than as
set forth in the immediately preceding sentence.
	 
	 	c)	 	I have, with respect to factual matters, to the extent I have deemed
appropriate, assumed that the statements, recitals, representations and warranties
contained in the Loan Documents are accurate and complete.
	 
	 	d)	 	This opinion is rendered as of the date of this letter, and I undertake
no obligation, and hereby disclaim any obligation, to update or supplement such
opinions to reflect any fact or circumstance that may hereafter come to my
attention or any changes in law that may hereafter occur or become effective.

     This opinion (i) is delivered in connection with the Opinion Documents only to counsel for the
Administrative Agent, you and your assignees permitted under the Credit Agreement, solely in your
capacities identified as addressees of this opinion, and only in connection with the transactions
described above, (ii) does not extend to counsel for the Administrative Agent, you or your
assignees when acting in any other capacity or to any other Person without my prior express written
consent, and (iii) may not be quoted, circulated, or published, in whole or in part, or furnished
to any other Person (other than to independent auditors and attorneys, participants or transferees,
regulators or government agencies, or pursuant to a court order, subpoena or other legal process)
without my prior express written consent. This opinion is strictly limited to the matters stated
herein, and no other or more extensive opinion is intended, implied or to be inferred beyond the
matters expressly stated herein.

 

 

	 	 	 	 	 
	 	Yours truly,

 	 
	 	
 	 
	 	John R. Zerkle 	 
	 	Sr. Vice President and Secretary of
Batesville Holdings, Inc. 	 

 

 

EXHIBIT F — FORM OF

GUARANTY SUPPLEMENT

                     ____, 20____

Citibank, N.A., as Agent

  for the Lenders parties

  to the Credit Agreement

  referred to below

  Two Penns Way

  New Castle, Delaware 19720

          Attention: Bank Loan Syndications Department

Credit Agreement dated as of March 28, 2008 among

Batesville Holdings, Inc., an Indiana corporation (the “Borrower”), the Lenders

party to the Credit Agreement, and Citibank, N.A., as Agent

Ladies and Gentlemen:

          Reference is made to the above-captioned Credit Agreement and to the Guaranty referred to
therein. The capitalized terms defined in the Credit Agreement and not otherwise defined herein
are used herein as therein defined.

          Section 1. Guaranty; Limitation of Liability. (a) The undersigned hereby
absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at
scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise,
of all obligations of the Borrower now or hereafter existing under or in respect of the Loan
Documents (including, without limitation, any extensions, modifications, substitutions, amendments
or renewals of any or all of the foregoing obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premium, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”),
and agrees to pay any and all expenses (including, without limitation, reasonable fees and expenses
of counsel) incurred by the Agent or any Lender in enforcing any rights under this Guaranty
Supplement, the Guaranty or any other Loan Document. Without limiting the generality of the
foregoing, the undersigned’s liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by the Borrower to the Agent or any Lender under or in
respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to
the existence of a bankruptcy, reorganization or similar proceeding involving the Borrower.

          (b) The undersigned, and by its acceptance of this Guaranty Supplement, the Agent and each
Lender, hereby confirms that it is the intention of all such Persons that this Guaranty Supplement,
the Guaranty and the obligations of the undersigned hereunder and thereunder not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent
applicable to this Guaranty Supplement, the Guaranty and the obligations of the undersigned
hereunder and thereunder. To effectuate the foregoing intention, the Agent, the Lenders and
the

 

 

undersigned hereby irrevocably agree that the obligations of the undersigned under this
Guaranty Supplement and the Guaranty at any time shall be limited to the maximum amount as will
result in the obligations of the undersigned under this Guaranty Supplement and the Guaranty not
constituting a fraudulent transfer or conveyance.

          (c) The undersigned hereby unconditionally and irrevocably agrees that in the event any
payment shall be required to be made to the Agent or any Lender under this Guaranty Supplement, the
Guaranty or any other guaranty, the undersigned will contribute, to the maximum extent permitted by
applicable law, such amounts to each other Guarantor and each other guarantor so as to maximize the
aggregate amount paid to the Agent and the Lenders under or in respect of the Loan Documents.

          Section 2. Obligations Under the Guaranty. The undersigned hereby agrees, as of the
date first above written, to be bound as a Guarantor by all of the terms and conditions of the
Guaranty to the same extent as each of the other Guarantors thereunder. The undersigned further
agrees, as of the date first above written, that each reference in the Guaranty to an “Additional
Guarantor” or a “Guarantor” shall also mean and be a reference to the undersigned, and each
reference in any other Loan Document to a “Guarantor” or a “Loan Party” shall also mean and be a
reference to the undersigned.

          Section 3. Representations and Warranties. The undersigned hereby makes each
representation and warranty set forth in Article IV of the Credit Agreement to the same extent as
each other Guarantor.

          Section 4. Delivery by Telecopier. Delivery of an executed counterpart of a
signature page to this Guaranty Supplement by telecopier or other electronic communication shall be
effective as delivery of an original executed counterpart of this Guaranty Supplement.

          Section 5. Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. (a) This
Guaranty Supplement shall be governed by, and construed in accordance with, the laws of the State
of New York.

          (b) The undersigned hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any New York State court or any federal court of the
United States of America sitting in New York City, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Guaranty Supplement, the Guaranty or any of
the other Loan Documents to which it is or is to be a party, or for recognition or enforcement of
any judgment, and the undersigned hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such federal court. The undersigned 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
Guaranty Supplement or the Guaranty or any other Loan Document shall affect any right that any
party may otherwise have to bring any action or proceeding relating to this Guaranty Supplement,
the Guaranty or any of the other Loan Documents to which it is or is to be a party in the courts of
any other jurisdiction.

          (c) The undersigned irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Guaranty Supplement, the
Guaranty or any of the other Loan Documents to which it is or is to be a party in any New York
State or federal court. The undersigned hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such suit, action or proceeding
in any such court.

 

 

          (d) THE UNDERSIGNED HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES OR THE ACTIONS OF THE AGENT OR ANY LENDER IN
THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF ADDITIONAL GUARANTOR]

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

 

 

EXECUTION COPY

U.S. $400,000,000

CREDIT AGREEMENT

Dated as of March 28, 2008

Among

BATESVILLE HOLDINGS, INC.

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN

as Initial Lenders

and

CITIBANK, N.A.

as Administrative Agent

and

JPMORGAN CHASE BANK, N.A.

as Syndication Agent

and

CITIGROUP GLOBAL MARKETS INC.

and

J.P. MORGAN SECURITIES INC.

as Joint Lead Arrangers and Joint Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 1.01.
	 	Certain Defined Terms	 	 	1	 
	 
	 	 	 	 	 	 
	SECTION 1.02.
	 	Computation of Time Periods	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 1.03.
	 	Accounting Terms	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01.
	 	The Advances and Letters of Credit	 	 	16	 
	 
	 	 	 	 	 	 
	SECTION 2.02.
	 	Making the Advances	 	 	17	 
	 
	 	 	 	 	 	 
	SECTION 2.03.
	 	Issuance of and Drawings and Reimbursement Under Letters of Credit	 	 	18	 
	 
	 	 	 	 	 	 
	SECTION 2.04.
	 	Fees	 	 	19	 
	 
	 	 	 	 	 	 
	SECTION 2.05.
	 	Termination or Reduction of the Commitments	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 2.06.
	 	Repayment of Advances and Letter of Credit Drawings	 	 	20	 
	 
	 	 	 	 	 	 
	SECTION 2.07.
	 	Interest on Advances	 	 	21	 
	 
	 	 	 	 	 	 
	SECTION 2.08.
	 	Interest Rate Determination	 	 	22	 
	 
	 	 	 	 	 	 
	SECTION 2.09.
	 	Optional Conversion of Advances	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 2.10.
	 	Prepayments of Advances	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 2.11.
	 	Increased Costs	 	 	23	 
	 
	 	 	 	 	 	 
	SECTION 2.12.
	 	Illegality	 	 	24	 
	 
	 	 	 	 	 	 
	SECTION 2.13.
	 	Payments and Computations	 	 	25	 
	 
	 	 	 	 	 	 
	SECTION 2.14.
	 	Taxes	 	 	26	 
	 
	 	 	 	 	 	 
	SECTION 2.15.
	 	Sharing of Payments, Etc.	 	 	27	 
	 
	 	 	 	 	 	 
	SECTION 2.16.
	 	Evidence of Debt	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 2.17.
	 	Use of Proceeds	 	 	28	 
	 
	 	 	 	 	 	 
	SECTION 2.18.
	 	Increase in the Aggregate Commitments	 	 	28	 

 

 

	 	 	 	 	 	 	 
	SECTION 2.19.
	 	Extension of Termination Date	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE III
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01.
	 	Conditions Precedent to Effectiveness of Section 2.01	 	 	32	 
	 
	 	 	 	 	 	 
	SECTION 3.03.
	 	Conditions Precedent to Each Borrowing, Issuance, Commitment Increase and Extension Date	 	 	33	 
	 
	 	 	 	 	 	 
	SECTION 3.03.
	 	Determinations Under Section 3.01	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01.
	 	Representations and Warranties of the Company	 	 	34	 
	 
	 	 	 	 	 	 
	ARTICLE V
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.01.
	 	Affirmative Covenants	 	 	37	 
	 
	 	 	 	 	 	 
	SECTION 5.02.
	 	Negative Covenants	 	 	41	 
	 
	 	 	 	 	 	 
	SECTION 5.03.
	 	Financial Covenants	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.01.
	 	Events of Default	 	 	46	 
	 
	 	 	 	 	 	 
	SECTION 6.02.
	 	Actions in Respect of the Letters of Credit upon Default	 	 	48	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 7.01.
	 	Unconditional Guaranty; Limitation of Liability	 	 	48	 
	 
	 	 	 	 	 	 
	SECTION 7.02.
	 	Guaranty Absolute	 	 	49	 
	 
	 	 	 	 	 	 
	SECTION 7.03.
	 	Waivers and Acknowledgments	 	 	50	 
	 
	 	 	 	 	 	 
	SECTION 7.04.
	 	Subrogation	 	 	51	 
	 
	 	 	 	 	 	 
	SECTION 7.05.
	 	Guaranty Supplements	 	 	51	 
	 
	 	 	 	 	 	 
	SECTION 7.06.
	 	Subordination	 	 	52	 
	 
	 	 	 	 	 	 
	SECTION 7.07.
	 	Continuing Guaranty; Assignments	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 	 	 	 	 	 

ii

 

	 	 	 	 	 	 	 
	SECTION 8.01.
	 	Authorization and Authority	 	 	53	 
	 
	 	 	 	 	 	 
	SECTION 8.02.
	 	Agent Individually	 	 	53	 
	 
	 	 	 	 	 	 
	SECTION 8.03.
	 	Duties of Agent; Exculpatory Provisions	 	 	54	 
	 
	 	 	 	 	 	 
	SECTION 8.04.
	 	Reliance by Agent	 	 	55	 
	 
	 	 	 	 	 	 
	SECTION 8.05.
	 	Delegation of Duties	 	 	55	 
	 
	 	 	 	 	 	 
	SECTION 8.06.
	 	Resignation of Agent	 	 	55	 
	 
	 	 	 	 	 	 
	SECTION 8.07.
	 	Non-Reliance on Agent and Other Lenders	 	 	56	 
	 
	 	 	 	 	 	 
	SECTION 8.08.
	 	No Other Duties, etc	 	 	57	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.01.
	 	Amendments, Etc.	 	 	57	 
	 
	 	 	 	 	 	 
	SECTION 9.02.
	 	Notices, Etc.	 	 	57	 
	 
	 	 	 	 	 	 
	SECTION 9.03.
	 	No Waiver; Remedies	 	 	58	 
	 
	 	 	 	 	 	 
	SECTION 9.04.
	 	Costs and Expenses	 	 	58	 
	 
	 	 	 	 	 	 
	SECTION 9.05.
	 	Right of Set-off	 	 	59	 
	 
	 	 	 	 	 	 
	SECTION 9.06.
	 	Binding Effect	 	 	60	 
	 
	 	 	 	 	 	 
	SECTION 9.07.
	 	Assignments and Participations	 	 	60	 
	 
	 	 	 	 	 	 
	SECTION 9.08.
	 	Confidentiality	 	 	62	 
	 
	 	 	 	 	 	 
	SECTION 9.10.
	 	Governing Law	 	 	63	 
	 
	 	 	 	 	 	 
	SECTION 9.11.
	 	Execution in Counterparts	 	 	63	 
	 
	 	 	 	 	 	 
	SECTION 9.13.
	 	Jurisdiction, Etc.	 	 	63	 
	 
	 	 	 	 	 	 
	SECTION 9.15.
	 	No Liability of the Issuing Banks	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 9.16.
	 	Patriot Act Notice	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 9.17.
	 	Power of Attorney	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 9.18.
	 	No Fiduciary	 	 	64	 
	 
	 	 	 	 	 	 
	SECTION 9.19.
	 	Waiver of Jury Trial	 	 	66	 

iii

 

Schedules

Schedule I — List of Applicable Lending Offices

Schedule II — Guarantors

Schedule 2.01(b) — Existing Letters of Credit

Schedule 3.01(b) — Disclosed Litigation

Schedule 5.02(a) — Existing Liens

Schedule 5.02(c) — Existing Indebtedness

Schedule 9.02 — Borrower’s Address

Exhibits

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Note
	 
	 	 	 	 
	Exhibit B

	 	—
	 	Form of Notice of Borrowing
	 
	 	 	 	 
	Exhibit C

	 	—
	 	Form of Assignment and Acceptance
	 
	 	 	 	 
	Exhibit D

	 	—
	 	Form of Compliance Certificate
	 
	 	 	 	 
	Exhibit E

	 	—
	 	Form of Opinion of Counsel for the Borrower
	 
	 	 	 	 
	Exhibit F

	 	—
	 	Form of Guaranty Supplement

iv

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