Document:

EX-10.1 Third Amended and Restated Credit Agreemen

Exhibit 10.1

Execution Version

 

 

Published CUSIP Number: 67082KAC9

Revolving Credit CUSIP Number: 67082KAD7

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

dated as of January 26, 2010,

by and among

O’CHARLEY’S INC.,

as Borrower,

the Lenders referred to herein,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

BANK OF AMERICA, N.A., as Syndication Agent,

REGIONS BANK, as Documentation Agent

WELLS FARGO SECURITIES, LLC,

REGIONS BANK

and

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arrangers and Joint Book Managers

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	Section 1.1

	 	Definitions
	 	 	1	 
	Section 1.2

	 	General
	 	 	19	 
	Section 1.3

	 	Other Definitions and Provisions
	 	 	19	 
	ARTICLE II REVOLVING CREDIT FACILITY	 	 	20	 
	Section 2.1

	 	Revolving Credit Loans
	 	 	20	 
	Section 2.2

	 	Swingline Loans
	 	 	20	 
	Section 2.3

	 	Procedure for Advances of Revolving Credit Loans
	 	 	22	 
	Section 2.4

	 	Repayment of Loans
	 	 	23	 
	Section 2.5

	 	Evidence of Debt
	 	 	25	 
	Section 2.6

	 	Permanent Reduction of the Revolving Credit Commitment
	 	 	25	 
	Section 2.7

	 	Termination of Revolving Credit Facility
	 	 	26	 
	ARTICLE III LETTER OF CREDIT FACILITY	 	 	26	 
	Section 3.1

	 	L/C Commitment
	 	 	26	 
	Section 3.2

	 	Procedure for Issuance of Letters of Credit
	 	 	27	 
	Section 3.3

	 	Commissions and Other Charges
	 	 	28	 
	Section 3.4

	 	L/C Participations
	 	 	28	 
	Section 3.5

	 	Reimbursement Obligation of the Borrower
	 	 	29	 
	Section 3.6

	 	Obligations Absolute
	 	 	30	 
	Section 3.7

	 	Effect of Application
	 	 	30	 
	ARTICLE IV	 	 	30	 
	Section 4.1

	 	[Intentionally Omitted]
	 	 	30	 
	Section 4.2

	 	[Intentionally Omitted]
	 	 	30	 
	Section 4.3

	 	[Intentionally Omitted]
	 	 	30	 
	Section 4.4

	 	Application of Proceeds
	 	 	30	 
	Section 4.5

	 	[Intentionally Omitted]
	 	 	31	 
	ARTICLE V GENERAL LOAN PROVISIONS	 	 	31	 
	Section 5.1

	 	Interest
	 	 	31	 
	Section 5.2

	 	Notice and Manner of Conversion or Continuation of Loans
	 	 	34	 
	Section 5.3

	 	Fees
	 	 	34	 
	Section 5.4

	 	Manner of Payment
	 	 	35	 
	Section 5.5

	 	Crediting of Payments and Proceeds
	 	 	36	 
	Section 5.6

	 	Adjustments
	 	 	37	 
	Section 5.7

	 	Obligations of Lenders
	 	 	37	 
	Section 5.8

	 	Changed Circumstances
	 	 	38	 
	Section 5.9

	 	Indemnity
	 	 	39	 
	Section 5.10

	 	Increased Costs
	 	 	39	 
	Section 5.11

	 	Taxes
	 	 	41	 
	Section 5.12

	 	Security
	 	 	43	 
	Section 5.13

	 	Mitigation Obligations; Replacement of Lenders
	 	 	43	 
	ARTICLE VI CLOSING; CONDITIONS OF CLOSING AND BORROWING	 	 	44	 
	Section 6.1

	 	Closing
	 	 	44	 
	Section 6.2

	 	Conditions to Closing and Initial Extensions of Credit
	 	 	44	 

 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 6.3

	 	Conditions to All Extensions of Credit
	 	 	49	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE BORROWER	 	 	50	 
	Section 7.1

	 	Representations and Warranties
	 	 	50	 
	Section 7.2

	 	Survival of Representations and
Warranties, Etc.
	 	 	58	 
	ARTICLE VIII FINANCIAL INFORMATION AND NOTICES	 	 	58	 
	Section 8.1

	 	Financial Statements and Projections
	 	 	58	 
	Section 8.2

	 	Officer’s Compliance Certificate
	 	 	60	 
	Section 8.3

	 	Accountants’ Certificate
	 	 	60	 
	Section 8.4

	 	Other Reports
	 	 	60	 
	Section 8.5

	 	Notice of Litigation and Other Matters
	 	 	60	 
	Section 8.6

	 	Accuracy of Information
	 	 	61	 
	ARTICLE IX AFFIRMATIVE COVENANTS	 	 	62	 
	Section 9.1

	 	Preservation of Corporate Existence and Related Matters
	 	 	62	 
	Section 9.2

	 	Maintenance of Property
	 	 	62	 
	Section 9.3

	 	Insurance
	 	 	62	 
	Section 9.4

	 	Accounting Methods and Financial Records
	 	 	62	 
	Section 9.5

	 	Payment and Performance of Obligations
	 	 	62	 
	Section 9.6

	 	Compliance with Laws and Approvals
	 	 	63	 
	Section 9.7

	 	Environmental Laws
	 	 	63	 
	Section 9.8

	 	Compliance with ERISA
	 	 	63	 
	Section 9.9

	 	Compliance with Agreements
	 	 	63	 
	Section 9.10

	 	Visits and Inspections
	 	 	64	 
	Section 9.11

	 	Additional Subsidiaries
	 	 	64	 
	Section 9.12

	 	Use of Proceeds
	 	 	65	 
	Section 9.13

	 	Conduct of Business
	 	 	65	 
	Section 9.14

	 	Further Assurances
	 	 	65	 
	ARTICLE X FINANCIAL COVENANTS	 	 	66	 
	Section 10.1

	 	Maximum Adjusted Debt to EBITDAR Ratio
	 	 	66	 
	Section 10.2

	 	Maximum Senior Secured Leverage Ratio
	 	 	66	 
	Section 10.3

	 	Minimum Fixed Charge Coverage Ratio
	 	 	66	 
	Section 10.4

	 	Maximum Expansion Capital Expenditures
	 	 	66	 
	ARTICLE XI NEGATIVE COVENANTS	 	 	67	 
	Section 11.1

	 	Limitations on Debt
	 	 	67	 
	Section 11.2

	 	Limitations on Liens
	 	 	69	 
	Section 11.3

	 	Limitations on Loans, Advances, Investments and Acquisitions
	 	 	70	 
	Section 11.4

	 	Limitations on Mergers and Liquidation
	 	 	71	 
	Section 11.5

	 	Limitations on Sale of Assets
	 	 	72	 
	Section 11.6

	 	Limitations on Dividends and Distributions
	 	 	73	 
	Section 11.7

	 	Limitations on Exchange and Issuance of Ownership Interests
	 	 	74	 
	Section 11.8

	 	Transactions with Affiliates
	 	 	74	 
	Section 11.9

	 	Certain Accounting Changes; Organizational Documents
	 	 	74	 
	Section 11.10

	 	Amendments; Payments and Prepayments of Subordinated Debt
	 	 	75	 
	Section 11.11

	 	Restrictive Agreements
	 	 	75	 
	Section 11.12

	 	Nature of Business
	 	 	75	 
	Section 11.13

	 	Impairment of Security Interests
	 	 	75	 
	Section 11.14

	 	SRLS Entities Restrictions
	 	 	76	 

 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 11.15

	 	Franchisees Restrictions
	 	 	76	 
	ARTICLE XII DEFAULT AND REMEDIES	 	 	76	 
	Section 12.1

	 	Events of Default
	 	 	76	 
	Section 12.2

	 	Remedies
	 	 	79	 
	Section 12.3

	 	Rights and Remedies Cumulative;
Non-Waiver; etc.
	 	 	80	 
	Section 12.4

	 	Administrative Agent May File Proofs of Claim
	 	 	80	 
	ARTICLE XIII THE ADMINISTRATIVE AGENT	 	 	81	 
	Section 13.1

	 	Appointment and Authority
	 	 	81	 
	Section 13.2

	 	Rights as a Lender
	 	 	81	 
	Section 13.3

	 	Exculpatory Provisions
	 	 	81	 
	Section 13.4

	 	Reliance by the Administrative Agent
	 	 	82	 
	Section 13.5

	 	Delegation of Duties
	 	 	82	 
	Section 13.6

	 	Resignation of Administrative Agent
	 	 	83	 
	Section 13.7

	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	84	 
	Section 13.8

	 	No Other Duties, etc.
	 	 	84	 
	Section 13.9

	 	Collateral and Guaranty Matters
	 	 	84	 
	ARTICLE XIV MISCELLANEOUS	 	 	85	 
	Section 14.1

	 	Notices
	 	 	85	 
	Section 14.2

	 	Expenses; Indemnity
	 	 	86	 
	Section 14.3

	 	Right of Setoff
	 	 	88	 
	Section 14.4

	 	Governing Law
	 	 	88	 
	Section 14.5

	 	Jurisdiction and Venue
	 	 	88	 
	Section 14.6

	 	Waiver of Jury Trial
	 	 	89	 
	Section 14.7

	 	Reversal of Payments
	 	 	89	 
	Section 14.8

	 	Injunctive Relief; Punitive Damages
	 	 	89	 
	Section 14.9

	 	Accounting Matters
	 	 	90	 
	Section 14.10

	 	Successors and Assigns; Participations
	 	 	90	 
	Section 14.11

	 	Amendments, Waivers and Consents
	 	 	93	 
	Section 14.12

	 	Confidentiality
	 	 	94	 
	Section 14.13

	 	Performance of Duties
	 	 	95	 
	Section 14.14

	 	All Powers Coupled with Interest
	 	 	95	 
	Section 14.15

	 	Survival of Indemnities
	 	 	95	 
	Section 14.16

	 	Titles and Captions
	 	 	95	 
	Section 14.17

	 	Severability of Provisions
	 	 	95	 
	Section 14.18

	 	Electronic Execution of Assignments
	 	 	95	 
	Section 14.19

	 	Counterparts; Integration; Effectiveness
	 	 	96	 
	Section 14.20

	 	Term of Agreement
	 	 	96	 
	Section 14.21

	 	Advice of Counsel
	 	 	96	 
	Section 14.22

	 	USA Patriot Act
	 	 	96	 
	Section 14.23

	 	No Strict Construction
	 	 	96	 
	Section 14.24

	 	Inconsistencies with Other Documents; Independent Effect of
Covenants
	 	 	97	 

 

iii

 

	 	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A-1

	 	—
	 	Form of Amended and Restated Revolving Credit Note
	Exhibit A-2

	 	 	 	Form of Amended and Restated Swingline Note
	Exhibit B

	 	—
	 	Form of Notice of Borrowing
	Exhibit C

	 	—
	 	Form of Notice of Account Designation
	Exhibit D

	 	—
	 	Form of Notice of Prepayment
	Exhibit E

	 	—
	 	Form of Notice of Conversion/Continuation
	Exhibit F

	 	—
	 	Form of Officer’s Compliance Certificate
	Exhibit G

	 	—
	 	Form of Assignment and Assumption
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule 1.1

	 	 	 	Existing Letters of Credit
	Schedule 7.1(a)

	 	—
	 	Jurisdictions of Organization and Qualification
	Schedule 7.1(b)

	 	—
	 	Subsidiaries and Capitalization
	Schedule 7.1(h)

	 	—
	 	Environmental Matters
	Schedule 7.1(i)

	 	—
	 	ERISA Plans
	Schedule 7.1(l)

	 	—
	 	Material Contracts
	Schedule 7.1(m)

	 	—
	 	Labor and Collective Bargaining Agreements
	Schedule 7.1(r)

	 	—
	 	Real Property
	Schedule 7.1(t)

	 	—
	 	Debt and Guaranty Obligations
	Schedule 7.1(u)

	 	—
	 	Litigation
	Schedule 11.2

	 	—
	 	Existing Liens
	Schedule 11.3

	 	—
	 	Existing Loans, Advances and Investments

 

2

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of the 26th day of January,
2010, by and among O’CHARLEY’S INC., a Tennessee corporation, as Borrower, the lenders who are or
may become a party to this Agreement, as Lenders, and WACHOVIA BANK, NATIONAL ASSOCIATION, a
national banking association, as Administrative Agent for the Lenders.

STATEMENT OF PURPOSE

Pursuant to the Second Amended and Restated Credit Agreement dated as of October 18, 2006 (as
amended, restated, supplemented or otherwise modified prior to the date hereof, the “Existing
Credit Agreement”), by and among the Borrower, the lenders party thereto (the “Existing
Lenders”) and Wachovia Bank, National Association, as administrative agent, the Existing
Lenders extended certain credit facilities to the Borrower pursuant to the terms thereof.

The Borrower has requested, and, subject to the terms and conditions hereof, the Lenders have
agreed, to amend and restate the Existing Credit Agreement on the terms and conditions of this
Agreement.

It is the intent of the parties hereto that this Agreement not constitute a novation of the
obligations and liabilities of the parties under the Existing Credit Agreement or be deemed to be
evidence or constitute repayment of all or any portion of such obligations and liabilities, but
that this Agreement amend and restate in its entirety the Existing Credit Agreement and re-evidence
the obligations and liabilities of the Borrower and the other credit parties outstanding
thereunder.

It is also the intent of the Borrower and Subsidiary Guarantors (as defined below) to confirm
that all obligations under the loan documents referred to in the Existing Credit Agreement shall
continue in full force and effect as modified by the Loan Documents referred to herein and that,
from and after the Closing Date, all references to the “Credit Agreement” contained in any such
existing loan documents shall be deemed to refer to this Agreement.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, the parties hereby agree that the Existing Credit
Agreement is hereby amended and restated as follows:

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. The following terms when used in this Agreement shall have
the meanings assigned to them below:

“Adjusted Debt” means, as of any date of calculation, the sum of the following
determined on a Consolidated basis, without duplication, for the Borrower and its Subsidiaries in
accordance with GAAP: (a) Debt as of such date, plus (b) the product of (i) Rental Expense for the
four (4) consecutive Fiscal Quarter period ending on or immediately prior to such date, multiplied
by (ii) 8.0; provided, however, that for purposes of calculating compliance with
Section 10.1, Rental Expense for the four (4) consecutive Fiscal Quarter period ending on such

 

 

 

date shall be increased to include rental expense associated with any sale-leaseback
transaction permitted hereunder on a pro forma basis.

“Adjusted Debt to EBITDAR Ratio” shall mean the ratio set forth in Section 10.1.

“Administrative Agent” means Wachovia in its capacity as Administrative Agent
hereunder, and any successor thereto appointed pursuant to Section 13.6.

“Administrative Agent’s Office” means the office of the Administrative Agent specified
in or determined in accordance with the provisions of Section 14.1(c).

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

“Affiliate” means, with respect to any Person, any other Person (other than a
Subsidiary of the Borrower) which directly or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such first Person or any of its
Subsidiaries. The term “control” means (a) the power to vote ten percent (10%) or more of the
securities or other equity interests of a Person having ordinary voting power, or (b) the
possession, directly or indirectly, of any other power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or
otherwise.

“Agreement” means this Credit Agreement, as amended, restated, supplemented or
otherwise modified from time to time.

“Aggregate Commitment” means the aggregate amount of the Lenders’ Commitments
hereunder, as such amount may be reduced or otherwise modified at any time or from time to time
pursuant to the terms hereof. On the Closing Date, the Aggregate Commitment shall be Forty-Five
Million Dollars ($45,000,000).

“Applicable Law” means all applicable provisions of constitutions, laws, statutes,
ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders
of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

“Applicable Margin” shall have the meaning assigned thereto in Section 5.1(c).

“Application” means an application, in the form specified by the Issuing Lender from
time to time, requesting the Issuing Lender to issue a Letter of Credit.

“Approved Fund” means any Person (other than a natural Person), including, without
limitation, any special purpose entity, that is (or will be) engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course
of its business; provided, that such Approved Fund must be administered by (a) a Lender,
(b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or
manages a Lender.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by

 

2

 

Section 14.10), and accepted by the Administrative Agent, in substantially the form of Exhibit
G or any other form approved by the Administrative Agent.

“Base Rate” means, at any time, the higher of (a) the Prime Rate, (b) the Federal
Funds Rate plus 1/2 of 1% and (c) except during a LIBOR Unavailability Period, 0.750% plus the LIBOR
Rate; each change in the Base Rate shall take effect simultaneously with the corresponding change
or changes in the Prime Rate, Federal Funds Rate or LIBOR Rate.

“Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate as
provided in Section 5.1(a).

“Borrower” means O’Charley’s Inc., a Tennessee corporation, in its capacity as
borrower hereunder.

“Business Day” means (a) for all purposes other than as set forth in clause (b) below,
any day other than a Saturday, Sunday or legal holiday on which banks in Charlotte, North Carolina
and New York, New York, are open for the conduct of their commercial banking business, and (b) with
respect to all notices and determinations in connection with, and payments of principal and
interest with respect to any LIBOR Rate Loan , or any Base Rate Loan as to which the interest rate
is determined by reference to LIBOR, any day that is a Business Day described in clause (a) and
that is also a day for trading by and between banks in Dollar deposits in the London interbank
market.

“Calculation Date” shall have the meaning assigned thereto in Section 5.1(c).

“Capital Asset” means, with respect to the Borrower and its Subsidiaries, any asset
that should, in accordance with GAAP, be classified and accounted for as a capital asset on a
Consolidated balance sheet of the Borrower and its Subsidiaries.

“Capital Expenditures” means with respect to the Borrower and its Subsidiaries for any
period, the aggregate cost of all Capital Assets acquired by the Borrower and its Subsidiaries
during such period, as determined in accordance with GAAP.

“Capital Lease” means any lease of any property by the Borrower or any of its
Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and accounted for as a
capital lease on a Consolidated balance sheet of the Borrower and its Subsidiaries.

“Cash Equivalents” shall have the meaning assigned thereto in Section 11.3(b).

“Cash Management Program” means the cash management program of the Swingline Lender
and any other cash management or other arrangement which the Borrower and the Swingline Lender
agree should be included in the borrowing and repayment of Swingline Loans pursuant to Section 2.2.

“Change in Control” shall have the meaning assigned thereto in Section 12.1(i).

“Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any
change

 

3

 

in any law, rule regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority.

“Closing Date” means the date of this Agreement or such later Business Day upon which
each condition described in Section 6.2 shall be satisfied or waived in all respects in a manner
acceptable to the Administrative Agent, in its sole discretion.

“Code” means the Internal Revenue Code of 1986, and the rules and regulations
thereunder, each as amended or modified from time to time.

“Collateral” means the collateral security for the Obligations pledged or granted
pursuant to the Security Documents.

“Collateral Agreement” means the Third Amended and Restated Collateral Agreement dated
as of the date hereof, executed by the Borrower and the Subsidiary Guarantors in favor of the
Administrative Agent for the ratable benefit of itself and the Lenders, as amended, restated,
supplemented or otherwise modified from time to time.

“Collateral Assignment Agreement” means the Second Amended and Restated Collateral
Assignment Agreement dated as of the date hereof, executed by the Borrower or any of its
Subsidiaries, as applicable, in favor of the Administrative Agent for the ratable benefit of itself
and the Lenders, as amended, restated or supplemented from time to time.

“Commitment” means, as to any Lender, the obligation of such Lender to make Loans to
and issue or participate in Letters of Credit issued for the account of the Borrower hereunder in
an aggregate principal or face amount at any time outstanding not to exceed the amount set forth
opposite such Lender’s name in the Register, as the same may be reduced or otherwise modified at
any time or from time to time pursuant to the terms hereof.

“Commitment Fee Rate” shall have the meaning assigned thereto in Section 5.3(a).

“Commitment Percentage” means, as to any Lender at any time, the ratio of (a) the
amount of the Commitment of such Lender to (b) the Aggregate Commitments of all of the Lenders.

“Consolidated” means, when used with reference to financial statements or financial
statement items of the Borrower and its Subsidiaries, such statements or items on a consolidated
basis in accordance with applicable principles of consolidation under GAAP.

“Consolidated Cash Taxes” means, for any applicable period of computation, the
aggregate of all taxes assessed on income (including, without limitation, any federal, state, local
and foreign income taxes) (other than extraordinary, unusual or non-recurring income taxes) that
are actually paid in cash by the Borrower and its Subsidiaries on a Consolidated basis during such
period; excluding income taxes paid as part of a settlement or closing agreement with any tax
authority.

“Credit Facility” means, collectively, the Revolving Credit Facility and the L/C
Facility.

 

4

 

“Credit Parties” means, collectively, the Borrower and the Subsidiary Guarantors.

“Cumulative Net Income” means Net Income for the period commencing with the Fiscal
Quarter beginning December 28, 2009 and ending as of the end of the last Fiscal Quarter with
respect to which the Borrower has delivered to the Administrative Agent quarterly financial
statements pursuant to Section 8.1(a) of this Agreement.

“Debt” means, with respect to the Borrower and its Subsidiaries at any date and
without duplication, the sum of the following calculated in accordance with GAAP: (a) all
liabilities, obligations and indebtedness for borrowed money including, but not limited to,
obligations evidenced by bonds, debentures, notes or other similar instruments of any such Person,
(b) all obligations to pay the deferred purchase price of property or services of any such Person
(including, without limitation, all obligations under non-competition agreements), except trade
payables arising in the ordinary course of business not more than ninety (90) days past due, (c)
all obligations of any such Person as lessee under Capital Leases, (d) all Debt of any other Person
secured by a Lien on any asset of any such Person, (e) all Guaranty Obligations of any such Person,
(f) all obligations, contingent or otherwise, of any such Person relative to the face amount of
letters of credit, whether or not drawn, including, without limitation, any Reimbursement
Obligation, and banker’s acceptances issued for the account of any such Person, (g) all obligations
of any such Person to redeem, repurchase, exchange, defease or otherwise make payments in respect
of capital stock or other securities or partnership interests of such Person, (h) the Termination
Values of all Hedging Agreements and (i) all outstanding payment obligations with respect to
Synthetic Leases.

“Default” means any of the events specified in Section 12.1 which with the passage of
time, the giving of notice or any other condition, would constitute an Event of Default.

“Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Revolving Credit Loans, participations in L/C Obligations or participations in Swingline Loans
required to be funded by it hereunder within one Business Day of the date required to be funded by
it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other Lender
any other amount required to be paid by it hereunder within one Business Day of the date when due,
unless such amount is the subject of a good faith dispute, (c) has notified the Borrower (and the
Borrower has, in turn, notified the Administrative Agent) or the Administrative Agent (including
through any written public statement) in writing that it does not intend to comply with any of its
funding obligations under this Agreement or has made a public statement to the effect that it does
not intend to comply with its funding obligations under this Agreement, or (d) has become or is
insolvent or has become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or
appointment.

“Disputes” means any dispute, claim or controversy arising out of, connected with or
relating to this Agreement or any other Loan Document, between or among parties hereto and to the
other Loan Documents.

 

5

 

“Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the
United States.

“Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

“EBITDA” means, for any period, the sum of the following determined on a Consolidated
basis, without duplication, for the Borrower and its Subsidiaries in accordance with GAAP: (a) Net
Income for such period plus (b) the sum of the following to the extent deducted in
determining Net Income: (i) Tax Expense, (ii) Interest Expense, (iii) amortization, depreciation
and other non-cash charges and (iv) non-cash stock compensation expenses, less (c) interest
income and any extraordinary gains, plus (d) extraordinary losses in amounts reasonably
acceptable to the Administrative Agent, plus (e) non-recurring charges for severance,
recruiting and relocation expenses arising from organization changes, restaurant closings or office
relocations or consolidations, in amounts reasonably acceptable to the Administrative Agent and the
Required Lenders.

“EBITDAR” means, for any period, the sum of the following determined on a Consolidated
basis, without duplication, for the Borrower and its Subsidiaries: (a) EBITDA for such period,
plus (b) Rental Expense for such period.

“Eligible Assignee” means (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved
Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative
Agent, (ii) in the case of any assignment of a Revolving Credit Commitment, the Swingline Lender
and the Issuing Lender, and (iii) unless a Default or Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or delayed);
provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

“Employee Benefit Plan” means (a) any employee benefit plan within the meaning of
Section 3(3) of ERISA which is maintained for employees of the Borrower or any ERISA Affiliate or
(b) any Pension Plan or Multiemployer Plan that has at any time within the preceding six (6) years
been maintained for the employees of the Borrower or any current or former ERISA Affiliate.

“Environmental Claims” means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigations (other than internal reports prepared by any Person in the ordinary course of
business and not in response to any third party action or request of any kind) or proceedings
relating in any way to any actual or alleged violation of or liability under any Environmental Law
or relating to any permit issued, or any approval given, under any such Environmental Law,
including, without limitation, any and all claims by Governmental Authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages, contribution, indemnification
cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from
alleged injury or threat of injury to human health or the environment.

 

6

 

“Environmental Laws” means any and all federal, foreign, state, provincial and local
laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, legally binding
interpretations and orders of courts or Governmental Authorities, relating to the protection of
human health or the environment, including, but not limited to, requirements pertaining to the
manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling,
reporting, licensing, permitting, investigation or remediation of Hazardous Materials.

“ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and
regulations thereunder, each as amended or modified from time to time.

“ERISA Affiliate” means any Person who together with the Borrower is treated as a
single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section
4001(b) of ERISA.

“Eurodollar Reserve Percentage” means, for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor)
for determining the maximum reserve requirement (including, without limitation, any basic,
supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category
of liabilities for a member bank of the Federal Reserve System in New York City.

“Event of Default” means any of the events specified in Section 12.1, provided that
any requirement for passage of time, giving of notice, or any other condition, has been satisfied.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Lender or any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar
tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
5.13(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is attributable
to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply
with Section 5.11(e), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 5.11(a).

“Existing Credit Agreement” shall have the meaning given thereto in the Statement of
Purpose herein.

“Existing Lenders” shall have the meaning assigned thereto in the Statement of Purpose
herein.

 

7

 

“Existing Letters of Credit” means those letters of credit existing on the Closing
Date and identified on Schedule 1.1.

“Existing Loans” shall have the meaning assigned thereto in Section 6.2(h).

“Expansion Capital Expenditures” means Capital Expenditures of the Borrower and its
Subsidiaries associated solely with (i) re-branding initiatives of the Borrower and its
Subsidiaries, (ii) new store openings and (iii) store remodeling.

“Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to the
sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then
outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then
outstanding, and (iii) such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans
then outstanding, or (b) the making of any Loan or participation in any Letter of Credit by such
Lender, as the context requires.

“FDIC” means the Federal Deposit Insurance Corporation, or any successor thereto.

“Federal Funds Rate” means, the rate per annum (rounded upwards, if necessary, to the
next higher 1/100th of 1%) representing the daily effective federal funds rate as quoted by the
Administrative Agent and confirmed in Federal Reserve Board Statistical Release H.15 (519) or any
successor or substitute publication selected by the Administrative Agent. If, for any reason, such
rate is not available, then “Federal Funds Rate” shall mean a daily rate which is determined, in
the opinion of the Administrative Agent, to be the rate at which federal funds are being offered
for sale in the national federal funds market at 9:00 a.m. (Charlotte time). Rates for weekends or
holidays shall be the same as the rate for the most immediately preceding Business Day.

“FIRREA” means, Financial Institutions Reform, Recovery and Enforcement Act of 1989,
as amended.

“Fiscal Quarter” means each fiscal quarter of the Borrower and its Subsidiaries ending
on the Sunday that is sixteen (16), twenty-eight (28), forty (40) and fifty-two (52) weeks (or
fifty-three (53) weeks in Fiscal Years containing fifty-three (53) weeks) from the first day of the
Borrower’s Fiscal Year.

“Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on the
Sunday closest to December 31.

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

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

 

8

 

“Franchisee” means, any Person with whom the Borrower or any of its Subsidiaries has
entered into a franchise agreement or similar arrangement for the purpose of developing and
operating restaurants.

“GAAP” means generally accepted accounting principles, as recognized by the American
Institute of Certified Public Accountants and the Financial Accounting Standards Board,
consistently applied and maintained on a consistent basis for the Borrower and its Subsidiaries
throughout the period indicated and (subject to Section 14.9) consistent with the prior financial
practice of the Borrower and its Subsidiaries.

“Governmental Approvals” means all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and reports to, all Governmental Authorities.

“Governmental Authority” means any nation, province, state or political subdivision
thereof, and any government or any Person exercising executive, legislative, regulatory or
administrative functions of or pertaining to government, and any corporation or other entity owned
or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

“Guaranty Obligation” means, with respect to the Borrower and its Subsidiaries,
without duplication, any obligation, contingent or otherwise, of any such Person pursuant to which
such Person has directly or indirectly guaranteed any Debt or other obligation of any other Person
and, without limiting the generality of the foregoing, any obligation, direct or indirect,
contingent or otherwise, of any such Person (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Debt or other obligation (whether arising by virtue of partnership
arrangements, by agreement to keep well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement condition or otherwise) or (b) entered into for the
purpose of assuring in any other manner the obligee of such Debt or other obligation of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or in part);
provided, that the term Guaranty Obligation shall not include endorsements for collection
or deposit in the ordinary course of business.

“Hazardous Materials” means any substances or materials (a) which are or become
defined as hazardous wastes, hazardous substances, pollutants, contaminants, or toxic substances
under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious,
radioactive, carcinogenic, mutagenic or otherwise harmful to human health or the environment and
are or become regulated by any Governmental Authority, (c) the presence of which require
investigation or remediation under any Environmental Law or common law, (d) the discharge or
emission or release of which requires a permit or license under any Environmental Law or other
Governmental Approval, (e) which are deemed to constitute a nuisance or a trespass which pose a
health or safety hazard to Persons or neighboring properties, (f) which consist of underground or
aboveground storage tanks, whether empty, filled or partially filled with any substance, or (g)
which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam
insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil, nuclear fuel,
natural gas or synthetic gas.

“Hedging Agreement” means any agreement with respect to any Interest Rate Contract,
forward rate agreement, commodity swap, forward foreign exchange agreement, currency swap

 

9

 

agreement, cross-currency rate swap agreement, currency option agreement or other agreement or
arrangement designed to alter the risks of any Person arising from fluctuations in interest rates,
currency values or commodity prices, all as amended, restated, supplemented or otherwise modified
from time to time.

“Hedging Obligations” shall have the meaning assigned thereto in the definition of
“Obligations.”

“Indemnified Taxes” means Taxes and Other Taxes other than Excluded Taxes.

“Intercompany Loan” means the revolving credit facility extended to the Borrower by
O’Charley’s Finance Company, Inc., pursuant to that certain Revolving Credit Agreement dated as of
October 7, 2002 by and between the Borrower and O’Charley’s Finance Company, Inc. and that certain
Secured Demand Promissory Note dated as of October 7, 2002 by the Borrower to O’Charley’s Finance
Company, Inc., each as amended, restated, supplemented or otherwise modified from time to time in
accordance with the terms of the Intercreditor and Subordination Agreement.

“Intercreditor and Subordination Agreement” means the second amended and restated
intercreditor and subordination agreement dated as of the date hereof between the Administrative
Agent and O’Charley’s Finance Company, Inc., as amended, restated, supplemented or otherwise
modified from time to time.

“Interest Expense” means, with respect to the Borrower and its Subsidiaries for any
period, the gross interest expense (including, without limitation, interest expense attributable to
Capital Leases and all net payment obligations pursuant to Hedging Agreements), all determined for
such period on a Consolidated basis, without duplication, in accordance with GAAP.

“Interest Period” shall have the meaning assigned thereto in Section 5.1(b).

“Interest Rate Contract” means any interest rate swap agreement, interest rate cap
agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or
any other agreement regarding the hedging of interest rate risk exposure executed in connection
with hedging the interest rate exposure of any Person and any confirming letter executed pursuant
to such agreement, all as amended, restated, supplemented or otherwise modified from time to time.

“ISP98” means the International Standby Practices (1998 Revision, effective January 1,
1999), International Chamber of Commerce Publication No. 590.

“Issuing Lender” means (a) Wachovia, in its capacity as issuer of any Letter of
Credit, or any successor thereto and (b) with respect to the Existing Letters of Credit, the Lender
issuing such Existing Letter of Credit.

“L/C Commitment” means the lesser of (a) Twenty Million Dollars ($20,000,000) and (b)
the Revolving Credit Commitment.

“L/C Facility” means the letter of credit facility established pursuant to Article
III.

 

10

 

“L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate
undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount
of drawings under Letters of Credit which have not then been reimbursed pursuant to Section 3.5.

“L/C Participant” means, with respect to the L/C Facility, each Person executing this
Agreement as a Lender under the Revolving Credit Facility (other than the Issuing Lender).

“Lender” means each Person executing this Agreement as a Lender (including, without
limitation, the Issuing Lender, L/C Participants and the Swingline Lender unless the context
otherwise requires) set forth on the signature pages hereto and each Person that hereafter becomes
a party to this Agreement as a Lender pursuant to Section 14.10.

“Lending Office” means, with respect to any Lender, the office of such Lender
maintaining such Lender’s Revolving Credit Commitment Percentage of the Extensions of Credit.

“Letters of Credit” means the collective reference to letters of credit issued
pursuant to Section 3.1 and the Existing Letters of Credit.

“LIBOR” means,

(a) with respect to LIBOR Rate Loans, the rate of interest per annum determined on the basis
of the rate for deposits in Dollars in minimum amounts of at least Five Million Dollars
($5,000,000) for a period equal to the applicable Interest Period which appears on the Reuters
Screen LIBOR01 Page (or any successor page) at approximately 11:00 a.m. (London time) two (2)
Business Days prior to the first day of the applicable Interest Period (rounded upward, if
necessary, to the nearest 1/100th of 1%). If, for any reason, such rate does not appear on Reuters
Screen LIBOR01 Page (or any successor page), then “LIBOR” shall be determined by the Administrative
Agent to be the arithmetic average of the rate per annum at which deposits in Dollars in minimum
amounts of at least Five Million Dollars ($5,000,000) would be offered by first class banks in the
London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two
(2) Business Days prior to the first day of the applicable Interest Period for a period equal to
such Interest Period. Each calculation by the Administrative Agent of LIBOR shall be conclusive
and binding for all purposes, absent manifest error;

(b) for any interest calculation with respect to a Base Rate Loan, the rate of interest per
annum determined on the basis of the rate for deposits in Dollars in the approximate amount of the
Base Rate Loan being made, continued or converted for a period equal to one (1) month commencing
that day which appears on the Reuters Screen LIBOR01 Page (or any successor page) at approximately
11:00 a.m. (London time) on the applicable date of determination. If, for any reason, such rate
does not appear on Reuters Screen LIBOR01 Page (or any successor page), then “LIBOR” shall be
determined by the Administrative Agent to be the arithmetic average of the rate per annum at which
deposits in Dollars the approximate amount of the Base Rate Loan being made, continued or converted
would be offered by first class banks in the London interbank market to the Administrative Agent at
approximately 11:00 a.m. (London time) on the applicable date of determination for a period equal
to one (1) month. Each calculation by the

 

11

 

Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent
manifest error.

“LIBOR Rate” means a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 
	LIBOR Rate =

	 	LIBOR
	 	 
	 

	 	 	 	 
	 

	 	1.00-Eurodollar Reserve Percentage	 	 

“LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate
as provided in Section 5.1(a).

“LIBOR Unavailability Period” means any period of time during which a notice to the
Borrower in accordance with Section 5.8 shall remain in force and effect.

“Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien,
pledge, charge, security interest, hypothecation or encumbrance of any kind in respect of such
asset. For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any
asset which it has acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease or other title retention agreement relating to such
asset.

“Loan Documents” means, collectively, this Agreement, the Notes, the Applications, the
Intercreditor and Subordination Agreement, the Subsidiary Guaranty Agreement, the Collateral
Agreement, the Security Documents, each joinder agreement executed pursuant to Section 9.11 and
each other document, instrument, certificate and agreement executed and delivered by the Borrower
or any Subsidiary thereof in connection with this Agreement or otherwise referred to herein or
contemplated hereby (excluding any Hedging Agreement), all as may be amended, restated,
supplemented or otherwise modified from time to time.

“Loans” means the collective reference to the Revolving Credit Loans and the Swingline
Loans and “Loan” means any of such Loans.

“Maintenance Capital Expenditures” means, with respect to the Borrower and its
Subsidiaries, Capital Expenditures less Expansion Capital Expenditures.

“Material Adverse Effect” means, with respect to the Borrower or any of its
Subsidiaries, a material adverse effect on the properties, business, operations or condition
(financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole, or the ability of
any such Person to perform its obligations under any Loan Document to which it is a party.

“Material Contract” means (a) any contract or other agreement, written or oral, of the
Borrower or any of its Subsidiaries involving monetary liability of or to any such Person in an
amount in excess of Ten Million Dollars ($10,000,000) per annum, or (b) any other contract or
agreement, written or oral, of the Borrower or any of its Subsidiaries the failure to comply with
which could reasonably be expected to have a Material Adverse Effect.

“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

 

12

 

“Mortgages” means the collective reference to each deed of trust, mortgage, or other
real property security document encumbering certain real property now or hereafter owned by the
Borrower or any Subsidiary, in each case in form and content satisfactory to the Administrative
Agent and executed by the Borrower or any Subsidiary thereof in favor of the Administrative Agent
for the ratable benefit of itself and the Lenders, as each such document may be amended, restated,
or supplemented from time to time.

“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which the Borrower or any ERISA Affiliate is making, or is accruing an obligation to make,
or has accrued an obligation to make contributions within the preceding six (6) years.

“Net Income” means, with respect to the Borrower and its Subsidiaries, for any period
of determination, the net income (or loss) for such period, determined on a Consolidated basis in
accordance with GAAP; provided that there shall be excluded from Net Income (a) the net
income (or loss) of any Person (other than a Subsidiary which shall be subject to clause (c)
below), in which the Borrower or any of its Subsidiaries has a joint interest with a third party,
except to the extent such net income is actually paid to the Borrower or any of its Subsidiaries by
dividend or other distribution during such period (in an amount not to exceed the Borrower’s or
such Subsidiary’s share of the equity income from such Person), (b) the net income (or loss) of any
Person accrued prior to the date it becomes a Subsidiary of such Person or is merged into or
consolidated with such Person or any of its Subsidiaries or that Person’s assets are acquired by
such Person or any of its Subsidiaries except to the extent included pursuant to the foregoing
clause (a), and (c) the net income (if positive) of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary to the Borrower or
any of its Subsidiaries of such net income (i) is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order, statute rule or
governmental regulation applicable to such Subsidiary or (ii) would be subject to any taxes payable
on such dividends or distributions.

“Notes” means the collective reference to the Revolving Credit Notes and the Swingline
Note, and “Note” means any of such Notes.

“Notice of Account Designation” shall have the meaning assigned thereto in Section
2.3(b).

“Notice of Borrowing” shall have the meaning assigned thereto in Section 2.3(a).

“Notice of Conversion/Continuation” shall have the meaning assigned thereto in Section
5.2.

“Notice of Prepayment” shall have the meaning assigned thereto in Section 2.4(c).

“Obligations” means, in each case, whether now in existence or hereafter arising: (a)
the principal of and interest on (including interest accruing after the filing of any bankruptcy or
similar petition) the Loans, (b) the L/C Obligations, (c) all existing or future payment and other
obligations owing by the Borrower under any Hedging Agreement (which such Hedging Agreement is
permitted hereunder) with any Person that is a Lender hereunder, or any Affiliate of a Lender, at
the time such Hedging Agreement is executed (all such obligations with respect

 

13

 

to any such Hedging Agreement, “Hedging Obligations”) and (d) all other fees and
commissions (including attorneys’ fees), charges, indebtedness, loans, liabilities, financial
accommodations, obligations, covenants and duties owing by the Borrower or any of its Subsidiaries
to the Lenders or the Administrative Agent, in each case under or in respect of this Agreement, any
Note, any Letter of Credit or any of the other Loan Documents of every kind, nature and
description, direct or indirect, absolute or contingent, due or to become due, contractual or
tortious, liquidated or unliquidated, and whether or not evidenced by any note.

“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

“Officer’s Compliance Certificate” shall have the meaning assigned thereto in Section
8.2.

“Operating Lease” shall mean, as to any Person as determined in accordance with GAAP,
any lease of property (whether real, personal or mixed) by such Person as lessee which is not a
Capital Lease.

“Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder or
under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any other Loan Document.

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

“Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which
is subject to the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is
maintained for the employees of the Borrower or any ERISA Affiliates or (b) has at any time within
the preceding six (6) years been maintained for the employees of the Borrower or any of its current
or former ERISA Affiliates.

“Permitted Acquisition” shall have the meaning assigned thereto in Section 11.3(c).

“Permitted Lien” means any Lien permitted pursuant to Section 11.2 hereof.

“Permitted Note Repurchases” means the repurchase by the Borrower of the Senior
Subordinated Notes on the open market, or the redemption of the Senior Subordinated Notes pursuant
to the terms thereof, in either case in an aggregate amount not to exceed Sixty-Two Million Five
Hundred Thousand ($62,500,000) during any Fiscal Year and One Hundred Twenty-Five Million
($125,000,000) during the term of the Credit Facility; provided that immediately prior to
and after giving effect to any such repurchase, (i) no Default or Event of Default shall have
occurred and be continuing, and (ii) there shall be no outstanding Loans under the Credit Facility.

“Person” means an individual, corporation, limited liability company, partnership,
association, trust, business trust, joint venture, joint stock company, pool, syndicate, sole
proprietorship, unincorporated organization, Governmental Authority or any other form of entity or
group thereof.

 

14

 

“Prime Rate” means, at any time, the rate of interest per annum publicly announced
from time to time by Wachovia as its prime rate. Each change in the Prime Rate shall be effective
as of the opening of business on the day such change in such prime rate occurs. The parties hereto
acknowledge that the rate announced publicly by Wachovia as its prime rate is an index or base rate
and shall not necessarily be its lowest or best rate charged to its customers or other banks.

“Real Property Collateral” means all fee-owned real property subject to a Mortgage as
of the Closing Date.

“Register” shall have the meaning assigned thereto in Section 14.10(c).

“Reimbursement Obligation” means the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.

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

“Rental Expense” means, with respect to the Borrower and its Subsidiaries for any
period, all rental expenses with respect to long-term real property leases and operating leases of
the Borrower and its Subsidiaries for such period, determined on a Consolidated basis in accordance
with GAAP.

“Required Lenders” means, at any date, any combination of Lenders holding at least
sixty-six and two-thirds percent (66 2/3%) of the Revolving Credit Commitments (or the Revolving
Credit Loans if such Commitments have been terminated), provided that the Revolving Credit
Commitment of, and the portion of the Extensions of Credit, as applicable, held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

“Responsible Officer” means any of the following: the chief executive officer,
president, vice-president, chief financial officer or secretary of the Borrower or applicable
Subsidiary Guarantor or any other officer of the Borrower or applicable Subsidiary Guarantor
reasonably acceptable to the Administrative Agent.

“Revolving Credit Commitment” means (a) as to any Lender, the obligation of such
Lender to make Revolving Credit Loans to the account of the Borrower hereunder in an aggregate
principal amount at any time outstanding not to exceed the amount set forth opposite such Lender’s
name on the Register as such amount may be reduced or modified at any time or from time to time
pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all Lenders to
make Revolving Credit Loans, as such amount may be reduced or modified at any time or from time to
time pursuant to the terms hereof. The Revolving Credit Commitment of all Lenders on the Closing
Date shall be Forty-Five Million Dollars ($45,000,000).

“Revolving Credit Commitment Percentage” means, as to any Lender at any time, the
ratio of (a) the amount of the Revolving Credit Commitment of such Lender to (b) the Revolving
Credit Commitments of all Lenders.

 

15

 

“Revolving Credit Facility” means the revolving credit facility established pursuant
to Article II.

“Revolving Credit Loan” means any revolving loan made to the Borrower pursuant to
Section 2.1, and all such revolving loans collectively as the context requires.

“Revolving Credit Maturity Date” means the earliest of the dates referred to in
Section 2.7.

“Revolving Credit Notes” means the collective reference to any Third Amended and
Restated Revolving Credit Notes made by the Borrower at the request of a Lender, payable to the
order of such Lender holding a Revolving Credit Commitment, substantially in the form of Exhibit
A-1 hereto, evidencing the Revolving Credit Facility, and any amendments, supplements and
modifications thereto, any substitutes therefor, and any replacements, restatements, renewals or
extensions thereof, in whole or in part.

“Sanctioned Entity” means (i) an agency of the government of, (ii) an organization
directly or indirectly controlled by, or (iii) a person resident in a country that is subject to a
sanctions program identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/programs, or as otherwise published from time to time
as such program may be applicable to such agency, organization or person.

“Sanctioned Person” means a person named on the list of Specially Designated Nationals
or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/enforcement/ofac/sdn/index.html, or as otherwise published from time to time.

“Scheduled Principal Repayments” means, for any applicable period of computation, the
aggregate of all scheduled principal repayments of Debt by the Borrower (excluding scheduled
principal repayments on Capital Leases in existence on October 4, 2009).

“Security Documents” means the collective reference to the Subsidiary Guaranty
Agreement, the Collateral Agreement, the Mortgages, the Collateral Assignment Agreement and each
other agreement or writing pursuant to which the Borrower or any Subsidiary thereof purports to
pledge or grant a security interest in any property or assets securing the Obligations or any such
Person purports to guaranty the payment and/or performance of the Obligations, all as amended,
restated, supplemented or otherwise modified from time to time.

“Senior Secured Debt” means Total Secured Debt less Subordinated Debt that is
secured.

“Senior Secured Leverage Ratio” shall have the meaning assigned thereto in Section
10.2.

“Senior Subordinated Notes” means the 9.00% unsecured senior subordinated notes issued
by the Borrower due November 1, 2013 in the aggregate original principal amount not to exceed One
Hundred Twenty-Five Million ($125,000,000) as described in the Indenture dated November 4, 2003.

 

16

 

“Solvent” means, as to the Borrower and its Subsidiaries on a particular date, that
any such Person (a) has capital sufficient to carry on its business and transactions and all
business and transactions in which it has committed to engage and is able to pay its debts as they
mature, (b) owns property having a value, both at fair valuation and at present fair saleable
value, greater than the amount required to pay its probable liabilities (including contingencies),
and (c) does not believe that it will incur debts or liabilities beyond its ability to pay such
debts or liabilities as they mature.

“SRLS Entities” means, collectively, SRLS LLC 5001, SRLS LLC 5002, SRLS LLC 5003, SRLS
LLC 5004, SRLS LLC 5005 and SRLS LLC 5006.

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

“Subordinated Debt” means the collective reference to (i) the Senior Subordinated
Notes and (ii) other subordinated Debt consisting of high-yield notes or convertible notes with a
maturity no earlier than a date that is six (6) months after the Revolving Credit Maturity Date
issued on terms and conditions (including subordination provisions) in form and substance
reasonably satisfactory to the Administrative Agent and consistent with then-current market terms
and conditions for such tenor of subordinated Debt.

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

“Subsidiary Guaranteed Obligations” means the collective reference to the guaranteed
obligations of each of the Subsidiaries party to the Subsidiary Guaranty Agreement.

“Subsidiary Guarantors” means the collective reference to the Domestic Subsidiaries of
the Borrower now or hereafter party to the Subsidiary Guaranty Agreement; provided,
however, that SRLS Entities and any Franchisees shall not be Subsidiary Guarantors.

“Subsidiary Guaranty Agreement” means the unconditional amended and restated guaranty
agreement dated as of the date hereof, executed by the Subsidiary Guarantors in favor of the
Administrative Agent for the ratable benefit of itself and the Lenders, as amended, restated,
supplemented or otherwise modified from time to time.

“Swingline Commitment” means the lesser of (a) Five Million Dollars ($5,000,000) and
(b) the Revolving Credit Commitment.

“Swingline Facility” means the swingline facility established pursuant to Section 2.2.

 

17

 

“Swingline Lender” means Regions Bank, in its capacity as provider of Swingline Loans,
or any successor swingline lender hereunder.

“Swingline Loan” means any swingline loan made by the Swingline Lender to the Borrower
pursuant to Section 2.2, and all such swingline loans collectively as the context requires.

“Swingline Note” means the Third Amended and Restated Swingline Note made by the
Borrower at the request of the Swingline Lender, payable to the order of the Swingline Lender,
substantially in the form of Exhibit A-2 hereto, evidencing the Swingline Loans, and any
amendments, supplements and modifications thereto, any substitutes therefor, and any replacements,
restatements, renewals or extensions thereof, in whole or in part.

“Swingline Termination Date” means the Revolving Credit Maturity Date.

“Synthetic Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in
accordance with GAAP.

“Tax Expense” means, with respect to the Borrower and its Subsidiaries for any period,
expense for federal, state, local and foreign income, value added and similar taxes, franchise
taxes and single business taxes without duplication, for such period, calculated in accordance with
GAAP.

“Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority with respect
to this Agreement, any of the other Loan Documents or the transactions that are the subject
thereof, including any interest, additions to tax or penalties applicable thereto.

“Termination Event” means except for any such event or condition that could not
reasonably be expected to have a Material Adverse Effect: (a) a “Reportable Event” described in
Section 4043 of ERISA for which the notice requirement has not been waived by the PBGC, or (b) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan during a plan year in which
it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination
of a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of
a Pension Plan amendment as a termination, under Section 4041 of ERISA, if the plan assets are not
sufficient to pay all plan liabilities, or (d) the institution of proceedings to terminate, or the
appointment of a trustee with respect to, any Pension Plan by the PBGC, or (e) any other event or
condition which would constitute grounds under Section 4042(a) of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien
pursuant to Section 412 of the Code or Section 302 of ERISA, or (g)the partial or complete
withdrawal of the Borrower or any ERISA Affiliate from a Multiemployer Plan if withdrawal liability
is asserted by such plan, or (h)any event or condition which results in the reorganization or
insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (i) any event or
condition which results in the termination of a Multiemployer Plan

 

18

 

under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a
Multiemployer Plan under Section 4042 of ERISA.

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

“Total Secured Debt” means, as of any date of determination with respect to the
Borrower and its Subsidiaries on a Consolidated basis without duplication, the sum of all secured
Debt of the Borrower and its Subsidiaries.

“Uniform Customs” means the Uniform Customs and Practice for Documentary Credits (1993
Revision), effective January, 1994 International Chamber of Commerce Publication No. 500.

“UCC” means the Uniform Commercial Code as in effect in the State of New York, as
amended or modified from time to time.

“United States” means the United States of America.

“Wachovia” means Wachovia Bank, National Association, a national banking association,
and its successors.

Section 1.2 General. Unless otherwise specified, a reference in this Agreement to a
particular article, section, subsection, Schedule or Exhibit is a reference to that article,
section, subsection, Schedule or Exhibit of this Agreement. Wherever from the context it appears
appropriate, each term stated in either the singular or plural shall include the singular and
plural, and pronouns stated in the masculine, feminine or neuter gender shall include the
masculine, the feminine and the neuter. Any reference herein to “Charlotte time” shall refer to
the applicable time of day in Charlotte, North Carolina.

Section 1.3 Other Definitions and Provisions.

(a) Use of Capitalized Terms. Unless otherwise defined therein, all
capitalized terms defined in this Agreement shall have the defined meanings when used in
this Agreement and the other Loan Documents or any certificate, report or other document
made or delivered pursuant to this Agreement.

(b) Miscellaneous. The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement.

 

19

 

(c) Plural and Singular. The meanings of defined terms are equally applicable
to the singular and plural forms of the defined terms.

ARTICLE II

REVOLVING CREDIT FACILITY

Section 2.1 Revolving Credit Loans. Subject to the terms and conditions of this
Agreement, and in reliance upon the representations and warranties set forth herein, each Lender
severally agrees to make Revolving Credit Loans to the Borrower from time to time from the Closing
Date through, but not including, the Revolving Credit Maturity Date as requested by the Borrower in
accordance with the terms of Section 2.3; provided, that (a) the aggregate principal amount
of all outstanding Revolving Credit Loans (after giving effect to any amount requested) shall not
exceed the Revolving Credit Commitment less the Swingline Commitment less all L/C
Obligations and (b) the principal amount of outstanding Revolving Credit Loans from any Lender to
the Borrower shall not at any time exceed such Lender’s Revolving Credit Commitment less
such Lender’s Revolving Credit Commitment Percentage of outstanding L/C Obligations and
less such Lender’s Revolving Credit Commitment Percentage of the Swingline Commitment.
Each Revolving Credit Loan by a Lender shall be in a principal amount equal to such Lender’s
Revolving Credit Commitment Percentage of the aggregate principal amount of Revolving Credit Loans
requested on such occasion. Subject to the terms and conditions hereof, the Borrower may borrow,
repay and reborrow Revolving Credit Loans hereunder until the Revolving Credit Maturity Date.

Section 2.2 Swingline Loans.

(a) Availability. Subject to the terms and conditions of this Agreement, the
Swingline Lender agrees to make Swingline Loans to the Borrower from time to time from the
Closing Date through, but not including, the Swingline Termination Date; provided,
that the aggregate principal amount of all outstanding Swingline Loans (after giving effect
to any amount requested), shall not exceed the lesser of (i) the Revolving Credit Commitment
less the sum of all outstanding Revolving Credit Loans and the L/C Obligations and (ii) the
Swingline Commitment; provided further that the Swingline Lender will not
make a Swingline Loan after it has received written notice from the Administrative Agent
that one or more of the applicable conditions to Extensions of Credit specified in Section
6.3 is not then satisfied until such conditions are satisfied or waived in accordance with
the provisions of this Agreement (and the Swingline Lender shall be entitled to conclusively
rely on any such notice and shall have no obligation to independently investigate the
accuracy of such notice and shall have no liability to the Borrower in respect thereof if
such notice proves to be inaccurate).

(b) Procedure for Advances of Swingline Loans. The Borrower shall give the
Swingline Lender notice at such times and in such form and substance as may be agreed upon
by the Swingline Lender and the Borrower; provided, however, that the obligation of
the Swingline Lender under this Section 2.2 to make any such Swingline Loan to the Borrower
shall be subject to all the terms and conditions hereof (including, without limitation, the
terms and conditions set forth in subsection (a) above).

 

20

 

(c) Payment of Principal and Interest. Principal and interest on Swingline
Loans deemed requested pursuant to Section 2.2(b) hereof shall be paid pursuant to the terms
and conditions agreed upon between the Swingline Lender and the Borrower without any
deduction, setoff or counterclaim whatsoever. Principal and interest on Swingline Loans
requested pursuant to this Section 2.2 shall be paid pursuant to the terms of this
Agreement. Unless sooner paid pursuant to the provisions hereof or the provisions of any
Cash Management Program, the principal of the Swingline Loans shall be paid in full,
together with accrued interest thereon, on the Swingline Termination Date.

(d) Refunding.

(i) Swingline Loans shall be refunded by the Lenders with a Revolving Credit
Commitment on demand by the Swingline Lender. Such refundings shall be made by the
Lenders in accordance with their respective Revolving Credit Commitment Percentages
and shall thereafter be reflected as Revolving Credit Loans of the Lenders on the
books and records of the Administrative Agent. Each Lender shall fund its
respective Revolving Credit Commitment Percentage of Revolving Credit Loans as
required to repay Swingline Loans outstanding to the Swingline Lender upon demand by
the Swingline Lender but in no event later than 2:00 p.m. (Charlotte time) on the
next succeeding Business Day after such demand is made. No Lender’s obligation to
fund its respective Revolving Credit Commitment Percentage of a Swingline Loan shall
be affected by any other Lender’s failure to fund its Revolving Credit Commitment
Percentage of a Swingline Loan, nor shall any Lender’s Revolving Credit Commitment
Percentage be increased as a result of any such failure of any other Lender to fund
its Revolving Credit Commitment Percentage of a Swingline Loan.

(ii) The Borrower shall pay to the Swingline Lender on demand the amount of
such Swingline Loans to the extent amounts received from the Lenders pursuant to
subsection 2.2(d)(i) are not sufficient to repay in full the outstanding Swingline
Loans requested or required to be refunded. In addition, the Borrower hereby
authorizes the Administrative Agent to charge any account maintained by the Borrower
with the Swingline Lender (up to the amount available therein) in order to
immediately pay the Swingline Lender the amount of such Swingline Loans to the
extent amounts received from the Lenders pursuant to subsection 2.2(d)(i) are not
sufficient to repay in full the outstanding Swingline Loans requested or required to
be refunded. If any portion of any such amount paid to the Swingline Lender shall
be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy
or otherwise, the loss of the amount so recovered shall be ratably shared among all
the Lenders in accordance with their respective Revolving Credit Commitment
Percentages (unless the amounts so recovered by or on behalf of the Borrower pertain
to a Swingline Loan extended after the occurrence and during the continuance of an
Event of Default of which the Administrative Agent has received notice in the manner
required pursuant to Section 13.3 and which such Event of Default has not been
waived by the Required Lenders or the Lenders, as applicable).

 

21

 

(iii) Each Lender with a Revolving Credit Commitment acknowledges and agrees
that its obligation to refund Swingline Loans in accordance with the terms of this
Section 2.2 is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including, without limitation, non-satisfaction of the
conditions set forth in Article VI. Further, each Lender agrees and acknowledges
that if prior to the refunding of any outstanding Swingline Loans pursuant to this
Section 2.2, one of the events described in Section 12.1(j) or (k) shall have
occurred, each Lender will, on the date the applicable Revolving Credit Loan would
have been made, purchase an undivided participating interest in the Swingline Loan
to be refunded in an amount equal to its Revolving Credit Commitment Percentage of
the aggregate amount of such Swingline Loan. Each Lender will immediately transfer
to the Swingline Lender, in immediately available funds, the amount of its
participation and upon receipt thereof the Swingline Lender will deliver to such
Lender a certificate evidencing such participation dated the date of receipt of such
funds and for such amount. Whenever, at any time after the Swingline Lender has
received from any Lender such Lender’s participating interest in a Swingline Loan,
the Swingline Lender receives any payment on account thereof, the Swingline Lender
will distribute to such Lender its participating interest in such amount
(appropriately adjusted, in the case of interest payments, to reflect the period of
time during which such Lender’s participating interest was outstanding and funded).

(e) Defaulting Lenders. Notwithstanding anything to the contrary contained in
this Section 2.2, the Swingline Lender shall not be obligated to make any Swingline
Loans at a time when any other Lender is a Defaulting Lender, unless the Swingline Lender
has entered into arrangements satisfactory to it to eliminate the Swingline Lender’s risk
with respect to any such Defaulting Lender’s funding obligations hereunder, including by
cash collateralizing such Defaulting Lender’s Commitment Percentage of the applicable
outstanding Swingline Loans. On demand by the Swingline Lender or the Administrative Agent
from time to time, the Borrower shall cash collateralize each Defaulting Lender’s Commitment
Percentage of the outstanding Swingline Loans on terms reasonably satisfactory to the
Administrative Agent and the Swingline Lender. Any such cash collateral shall be deposited
in a separate account with the Administrative Agent, subject to the exclusive dominion and
control of the Administrative Agent, as collateral (solely for the benefit of the Swingline
Lender) for the payment and performance of each Defaulting Lender’s Commitment Percentage of
outstanding Swingline Loans. Moneys in such account shall be applied by the Administrative
Agent to reimburse the Swingline Lender immediately for each Defaulting Lender’s Commitment
Percentage of any Swingline Loans which have not otherwise been refunded by the Borrower or
such Defaulting Lender pursuant to the terms of this Section 2.2

Section 2.3 Procedure for Advances of Revolving Credit Loans.

(a) Requests for Borrowing.

 

22

 

(i) Revolving Credit Loans. The Borrower shall give the Administrative
Agent irrevocable prior written notice substantially in the form of Exhibit B
attached hereto (a “Notice of Borrowing”) not later than 11:00 a.m.
(Charlotte time) (i) on the same Business Day as each Base Rate Loan and (ii) at
least three (3) Business Days before each LIBOR Rate Loan, of its intention to
borrow, specifying (A) the date of such borrowing, which shall be a Business Day,
(B) the amount of such borrowing, which shall be, (x) with respect to Base Rate
Loans in an aggregate principal amount of $1,000,000 or a whole multiple of $500,000
in excess thereof, and (y) with respect to LIBOR Rate Loans in an aggregate
principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof,
(C) whether the Loans are to be LIBOR Rate Loans or Base Rate Loans, and (D) in the
case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto.
A Notice of Borrowing received after 11:00 a.m. (Charlotte time) shall be deemed
received on the next Business Day. The Administrative Agent shall promptly notify
the Lenders of each Notice of Borrowing.

(ii) Swingline Loans. Swingline Loans shall be requested in the manner
set forth in Section 2.2(b).

(b) Disbursements.

(i) Revolving Credit Loans. Not later than 2:00 p.m. (Charlotte time)
on the proposed borrowing date, each Lender will make available to the
Administrative Agent, for the account of the Borrower, at the office of the
Administrative Agent in funds immediately available to the Administrative Agent,
such Lender’s Revolving Credit Commitment Percentage of the Revolving Credit Loans
to be made on such borrowing date. The Borrower hereby irrevocably authorizes the
Administrative Agent to disburse the proceeds of each borrowing requested pursuant
to this Section 2.3 in immediately available funds by crediting or wiring such
proceeds to the deposit account of the Borrower identified in the most recent notice
substantially in the form of Exhibit C hereto (a “Notice of Account
Designation”) delivered by the Borrower to the Administrative Agent or as may be
otherwise agreed upon by the Borrower and the Administrative Agent from time to
time. Subject to Section 5.7 hereof, the Administrative Agent shall not be
obligated to disburse the portion of the proceeds of any Revolving Credit Loan
requested pursuant to this Section 2.3 to the extent that any Lender has not made
available to the Administrative Agent its Revolving Credit Commitment Percentage of
such Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline
Loans shall be made by the Lenders as provided in Section 2.2(d).

(ii) Swingline Loans. Swingline Loans shall be disbursed in the manner
set forth in Section 2.2(b).

Section 2.4 Repayment of Loans.

 

23

 

(a) Repayment on Termination Date. The Borrower hereby agrees to repay the
outstanding principal amount of (i) all Revolving Credit Loans in full on the Revolving
Credit Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(c),
together, in each case, with all accrued but unpaid interest thereon.

(b) Mandatory Repayment of Revolving Credit Loans. If at any time the
outstanding principal amount of all Revolving Credit Loans plus the Swingline Commitment and
L/C Obligations exceeds the Revolving Credit Commitment, then the Borrower shall repay
immediately upon notice from the Administrative Agent, by payment to the Administrative
Agent for the account of the Lenders, Extensions of Credit in an amount equal to such excess
with each such repayment applied first to the principal amount of outstanding
Swingline Loans, second to the principal amount of outstanding Revolving Credit
Loans and third, with respect to any Letters of Credit then outstanding, a payment
of cash collateral into a cash collateral account opened by the Administrative Agent, for
the benefit of the Lenders in an amount equal to the aggregate then undrawn and unexpired
amount of such Letters of Credit (such cash collateral to be applied in accordance with
Section 12.2(b)).

(c) Optional Repayments. The Borrower may at any time and from time to time
repay the Loans, in whole or in part, upon at least three (3) Business Days’ irrevocable
notice to the Administrative Agent with respect to LIBOR Rate Loans and one (1) Business Day
irrevocable notice with respect to Base Rate Loans and Swingline Loans, substantially in the
form attached hereto as Exhibit D (a “Notice of Prepayment”) specifying the date and
amount of repayment and whether the repayment is of LIBOR Rate Loans, Base Rate Loans,
Swingline Loans or a combination thereof, and, if of a combination thereof, the amount
allocable to each. Upon receipt of such notice, the Administrative Agent shall promptly
notify each Lender. If any such notice is given, the amount specified in such notice shall
be due and payable on the date set forth in such notice. Partial repayments shall be in an
aggregate amount (i) of $1,000,000 or a whole multiple of $500,000 in excess thereof with
respect to Base Rate Loans (other than Swingline Loans), (ii) of $1,000,000 or a whole
multiple of $500,000 in excess thereof with respect to LIBOR Rate Loans and (iii) permitted
pursuant to the Cash Management Program (or as otherwise agreed to by the Swingline Lender
and the Borrower) with respect to Swingline Loans. Each such repayment shall be accompanied
by any amount required to be paid pursuant to Section 5.9 hereof.

(d) Limitation on Repayment of LIBOR Rate Loans. The Borrower may not repay
any LIBOR Rate Loan on any day other than on the last day of the Interest Period applicable
thereto unless such repayment is accompanied by any amount required to be paid pursuant to
Section 5.9 hereof.

(e) Hedging Agreements. No repayment or prepayment pursuant to this Section
2.4 shall affect any of the Borrower’s obligations under any Hedging Agreement.

 

24

 

Section 2.5 Evidence of Debt.

(a) Extensions of Credit. The Extensions of Credit made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by the Administrative
Agent and each Lender shall be conclusive absent manifest error of the amount of the Extensions of
Credit made by the Lenders to the Borrower and the interest and payments thereon. Any failure to
so record or any error in doing so shall not, however, limit or otherwise affect the obligation of
the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of
any conflict between the accounts and records maintained by any Lender and the accounts and records
of the Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the request of any
Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Revolving Credit Note, and/or Swingline Note, as applicable,
which shall evidence such Lender’s Revolving Credit Loans, and/or Swingline Loans, as applicable,
in addition to such accounts or records. Each Lender may attach schedules to its Notes and endorse
thereon the date, amount and maturity of its Loans and payments with respect thereto.

(b) Participations. In addition to the accounts and records referred to in subsection
(a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of participations in Letters
of Credit and Swingline Loans. In the event of any conflict between the accounts and records
maintained by the Administrative Agent and the accounts and records of any Lender in respect of
such matters, the accounts and records of the Administrative Agent shall control in the absence of
manifest error.

Section 2.6 Permanent Reduction of the Revolving Credit Commitment.

(a) Voluntary Reduction. The Borrower shall have the right at any time and
from time to time, upon at least five (5) Business Days prior written notice to the
Administrative Agent, to permanently reduce, without premium or penalty, (i) the entire
Revolving Credit Commitment at any time or (ii) portions of the Revolving Credit Commitment,
from time to time, in an aggregate principal amount not less than $1,000,000 or any whole
multiple of $500,000 in excess thereof. The amount of each partial permanent reduction
shall permanently reduce the Lenders’ Revolving Credit Commitments pro rata in accordance
with their respective Revolving Credit Commitment Percentages.

(b) [Intentionally Omitted].

(c) Corresponding Payment. Each permanent reduction permitted pursuant to this
Section 2.6 shall be accompanied by a payment of principal sufficient to reduce the
aggregate outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations, as
applicable, after such reduction to the Revolving Credit Commitment as so reduced and if the
Revolving Credit Commitment as so reduced is less than the aggregate amount of all
outstanding Letters of Credit, the Borrower shall be required to deposit cash collateral in

 

25

 

a cash collateral account opened by the Administrative Agent in an amount equal to the
aggregate then undrawn and unexpired amount of such Letters of Credit. Such cash collateral
shall be applied in accordance with Section 12.2(b). Any reduction of the Revolving Credit
Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans
and Swingline Loans (and furnishing of cash collateral satisfactory to the Administrative
Agent for all L/C Obligations) and shall result in the termination of the Revolving Credit
Commitment and the Swingline Commitment and the Revolving Credit Facility. Such cash
collateral shall be applied in accordance with Section 12.2(b). If the reduction of the
Revolving Credit Commitment requires the repayment of any LIBOR Rate Loan, such repayment
shall be accompanied by any amount required to be paid pursuant to Section 5.9.

Section 2.7 Termination of Revolving Credit Facility. The Revolving Credit Facility
shall terminate on the earliest of (a) August 1, 2013; provided that such date shall be
automatically extended to January 26, 2014 if the Senior Subordinated Notes are repaid or redeemed
in full, or refinanced in full (in accordance with the terms hereof) such that the maturity date of
such refinancing Debt is no earlier than April 27, 2014, (b) the date of termination by the
Borrower pursuant to Section 2.6, or (c) the date of termination by the Administrative Agent on
behalf of the Lenders pursuant to Section 12.2(a).

ARTICLE III

LETTER OF CREDIT FACILITY

Section 3.1 L/C Commitment.

(a) Availability. Subject to the terms and conditions hereof, the Issuing
Lender, in reliance on the agreements of the L/C Participants set forth in Section 3.4(a),
agrees to issue standby Letters of Credit for the account of the Borrower on any Business
Day from the Closing Date through but not including the fifth (5th) Business Day prior to
the Revolving Credit Maturity Date in such form as may be approved from time to time by the
Issuing Lender; provided, that the Issuing Lender shall have no obligation to issue,
and L/C Participants shall have no obligation to participate in, any Letter of Credit if,
after giving effect to such issuance, (a) the L/C Obligations would exceed the L/C
Commitment or (b) the aggregate principal amount of outstanding Revolving Credit Loans, plus
the Swingline Commitment, plus the aggregate amount of L/C Obligations would exceed the
Revolving Credit Commitment. Each Letter of Credit shall (i) be in a minimum amount of
$50,000, (ii) be a standby letter of credit issued to support obligations of the Borrower or
any of the Subsidiary Guarantors, contingent or otherwise, incurred in the ordinary course
of business, (iii) expire on a date satisfactory to the Issuing Lender, which date shall be
no later than the earlier of (A) one year from the date of issuance of such Letter of Credit
and (B) the fifth (5th) Business Day prior to the Revolving Credit Maturity Date and (iv) be
subject to the Uniform Customs and/or ISP98, as set forth in the Application or as
determined by the Issuing Lender and, to the extent not inconsistent therewith, the laws of
the State of North Carolina. The Issuing Lender shall not at any time be obligated to
issue, and L/C Participants shall have no obligation to participate in, any Letter of Credit
hereunder if such issuance would conflict

 

26

 

with, or cause the Issuing Lender or any L/C Participant to exceed any limits imposed
by, any Applicable Law. References herein to “issue” and derivations thereof with respect
to Letters of Credit shall also include extensions or modifications of any existing Letters
of Credit, unless the context otherwise requires. The Existing Letters of Credit shall be
deemed to be Letters of Credit issued and outstanding under this Agreement on and after the
Closing Date; provided, however, that such Existing Letters of Credit shall be
replaced by letters of credit issued by Wachovia, as Issuing Lender, pursuant to and under
the terms of this Agreement upon the expiration and/or maturity thereof and shall not
otherwise be extended, renewed or modified.

(b) Defaulting Lenders. Notwithstanding anything to the contrary contained in
this Section 3.1, the Issuing Lender shall not be obligated to issue any Letter of
Credit at a time when any other Lender is a Defaulting Lender, unless the Issuing Lender has
entered into arrangements satisfactory to it to eliminate the Issuing Lender’s risk with
respect to any such Defaulting Lender’s reimbursement obligations hereunder, including by
cash collateralizing such Defaulting Lender’s Commitment Percentage of the liability with
respect to such Letter of Credit. On demand by the Issuing Lender or the Administrative
Agent from time to time, the Borrower shall cash collateralize each Defaulting Lender’s
Commitment Percentage of the outstanding Letter of Credit Obligations on terms reasonably
satisfactory to the Administrative Agent and the Issuing Lender. Any such cash collateral
shall be deposited in a separate account with the Administrative Agent, subject to the
exclusive dominion and control of the Administrative Agent, as collateral (solely for the
benefit of the Issuing Lender) for the payment and performance of each Defaulting Lender’s
Commitment Percentage of outstanding L/C Obligations. Moneys in such account shall be
applied by the Administrative Agent to reimburse the Issuing Lender immediately for each
Defaulting Lender’s Commitment Percentage of any drawing under any Letter of Credit which
has not otherwise been reimbursed by the Borrower or such Defaulting Lender pursuant to the
terms of this Section 3.1.

Section 3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time
to time request that the Issuing Lender issue a Letter of Credit by delivering to the Issuing
Lender at the Administrative Agent’s Office an Application therefor, completed to the satisfaction
of the Issuing Lender, and such other certificates, documents and other papers and information as
the Issuing Lender may reasonably request. Upon receipt of any Application, the Issuing Lender
shall process such Application and the certificates, documents and other papers and information
delivered to it in connection therewith in accordance with its customary procedures and shall,
subject to Section 3.1 and Article VI hereof, promptly issue the Letter of Credit requested thereby
(but in no event shall the Issuing Lender be required to issue any Letter of Credit earlier than
three (3) Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by issuing the original
of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by the Issuing
Lender and the Borrower. The Issuing Lender shall promptly furnish to the Borrower a copy of such
Letter of Credit and promptly notify each Lender of the issuance and upon request by any Lender,
furnish to such Lender a copy of such Letter of Credit and the amount of such Lender’s Letter of
Credit participation therein.

 

27

 

Section 3.3 Commissions and Other Charges.

(a) Letter of Credit Commission. The Borrower shall pay to the Administrative
Agent, for the account of the Issuing Lender and the L/C Participants, a letter of credit
commission with respect to each Letter of Credit in an amount equal to the face amount of
such Letter of Credit, as applicable, multiplied by the Applicable Margin
with respect to LIBOR Rate Loans for the Revolving Credit Facility (determined on a per
annum basis). Such commission shall be payable quarterly in arrears on the last Business
Day of each calendar quarter and on the Revolving Credit Maturity Date. The Administrative
Agent shall, promptly following its receipt thereof, distribute to the Issuing Lender and
the L/C Participants all commissions received pursuant to this Section 3.3(a) in accordance
with their respective Revolving Credit Commitment Percentages.

(b) Issuance Fee. In addition to the foregoing commission, the Borrower shall
pay the Issuing Lender, for its own account, an issuance fee with respect to each Letter of
Credit in an amount equal to the face amount of such Letter of Credit multiplied by 0.125%
per annum. Such issuance fee shall be payable quarterly in arrears on the last Business Day
of each calendar quarter and on the Revolving Credit Maturity Date.

(c) Other Fees and Expenses. In addition to the foregoing fees and
commissions, the Borrower shall pay or reimburse the Issuing Lender, for its own account,
for such normal and customary costs and expenses as are incurred or charged by the Issuing
Lender in issuing, effecting payment under, amending or otherwise administering any Letter
of Credit.

Section 3.4 L/C Participations.

(a) Participations. The Issuing Lender irrevocably agrees to grant and hereby
grants to each L/C Participant, and, to induce the Issuing Lender to issue Letters of Credit
hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts
and purchases from the Issuing Lender, on the terms and conditions hereinafter stated, for
such L/C Participant’s own account and risk an undivided interest equal to such L/C
Participant’s Revolving Credit Commitment Percentage in the Issuing Lender’s obligations and
rights under and in respect of each Letter of Credit issued hereunder and the amount of each
draft paid by the Issuing Lender thereunder. Each L/C Participant unconditionally and
irrevocably agrees with the Issuing Lender that, if a draft is paid under any Letter of
Credit for which the Issuing Lender is not reimbursed in full by the Borrower through a
Revolving Credit Loan or otherwise in accordance with the terms of this Agreement, such L/C
Participant shall pay to the Issuing Lender upon demand at the Issuing Lender’s address for
notices specified herein an amount equal to such L/C Participant’s Revolving Credit
Commitment Percentage of the amount of such draft, or any part thereof, which is not so
reimbursed.

(b) Payments by L/C Participants. Upon becoming aware of any amount required
to be paid by any L/C Participant to the Issuing Lender pursuant to Section 3.4(a) in
respect of any unreimbursed portion of any payment made by the Issuing Lender under any
Letter of Credit, the Issuing Lender shall notify each L/C Participant of the

 

28

 

amount and due date of such required payment and such L/C Participant shall pay to the
Issuing Lender the amount specified on the applicable due date. If any such amount is paid
to the Issuing Lender after the date such payment is due, such L/C Participant shall pay to
the Issuing Lender on demand, in addition to such amount, the product of (i) such amount,
times (ii) the daily average Federal Funds Rate as determined by the Administrative
Agent during the period from and including the date such payment is due to the date on which
such payment is immediately available to the Issuing Lender, times (iii) a fraction the
numerator of which is the number of days that elapse during such period and the denominator
of which is 360. A certificate of the Issuing Lender with respect to any amounts owing
under this Section 3.4(b) shall be conclusive in the absence of manifest error. With
respect to payment to the Issuing Lender of the unreimbursed amounts described in this
Section 3.4(b), if the L/C Participants receive notice that any such payment is due (A)
prior to 1:00 p.m. (Charlotte time) on any Business Day, such payment shall be due that
Business Day, and (B) after 1:00 p.m. (Charlotte time) on any Business Day, such payment
shall be due on the following Business Day.

(c) Distributions to L/C Participants. Whenever, at any time after the Issuing
Lender has made payment under any Letter of Credit and has received from any L/C Participant
its Revolving Credit Commitment Percentage of such payment in accordance with this Section
3.4, the Issuing Lender receives any payment related to such Letter of Credit (whether
directly from the Borrower or otherwise, or any payment of interest on account thereof, the
Issuing Lender will distribute to such L/C Participant its pro rata share thereof;
provided, that in the event that any such payment received by the Issuing Lender
shall be required to be returned by the Issuing Lender, such L/C Participant shall return to
the Issuing Lender the portion thereof previously distributed by the Issuing Lender to it.

Section 3.5 Reimbursement Obligation of the Borrower. In the event of any drawing
under any Letter of Credit, the Borrower agrees to reimburse (either with the proceeds of a
Revolving Credit Loan as provided for in this Section 3.5 or with funds from other sources), in
same day funds, the Issuing Lender on each date on which the Issuing Lender notifies the Borrower
of the date and amount of a draft paid under any Letter of Credit for the amount of (a) such draft
so paid and (b) any amounts referred to in Section 3.3(c) incurred by the Issuing Lender in
connection with such payment. Unless the Borrower shall immediately notify the Issuing Lender that
the Borrower intends to reimburse the Issuing Lender for such drawing from other sources or funds,
the Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative Agent
requesting that the Lenders make a Revolving Credit Loan bearing interest at the Base Rate on such
date in the amount of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c)
incurred by the Issuing Lender in connection with such payment, and the Lenders shall make a
Revolving Credit Loan bearing interest at the Base Rate in such amount, the proceeds of which shall
be applied to reimburse the Issuing Lender for the amount of the related drawing and costs and
expenses. Each Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan
in accordance with this Section 3.5 to reimburse the Issuing Lender for any draft paid under a
Letter of Credit is absolute and unconditional and shall not be affected by any circumstance
whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Section
2.3(a) or Article VI. If the Borrower has elected to pay the amount of such drawing with funds from
other sources and shall

 

29

 

fail to reimburse the Issuing Lender as provided above, the unreimbursed amount of such
drawing shall bear interest at the rate which would be payable on any outstanding Base Rate Loans
which were then overdue from the date such amounts become payable (whether at stated maturity, by
acceleration or otherwise) until payment in full.

Section 3.6 Obligations Absolute. The Borrower’s obligations under this Article III
(including, without limitation, the Reimbursement Obligation) shall be absolute and unconditional
under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment
which the Borrower may have or have had against the Issuing Lender or any beneficiary of a Letter
of Credit or any other Person. The Borrower also agrees that the Issuing Lender and the L/C
Participants shall not be responsible for, and the Borrower’s Reimbursement Obligation under
Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents
or of any endorsements thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any
Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims
whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.
The Issuing Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however transmitted, in connection
with any Letter of Credit, except for errors or omissions caused by the Issuing Lender’s gross
negligence or willful misconduct, as determined by a court of competent jurisdiction by final
nonappealable judgment. The Borrower agrees that any action taken or omitted by the Issuing Lender
under or in connection with any Letter of Credit or the related drafts or documents, if done in the
absence of gross negligence or willful misconduct, shall be binding on the Borrower and shall not
result in any liability of the Issuing Lender or any L/C Participant to the Borrower. The
responsibility of the Issuing Lender to the Borrower in connection with any draft presented for
payment under any Letter of Credit, in addition to any payment obligation expressly provided for in
such Letter of Credit, shall be limited to determining that the documents (including each draft)
delivered under such Letter of Credit in connection with such presentment are in conformity with
such Letter of Credit.

Section 3.7 Effect of Application. To the extent that any provision of any
Application related to any Letter of Credit is inconsistent with the provisions of this Article
III, the provisions of this Article III shall apply.

ARTICLE IV

Section 4.1 [Intentionally Omitted].

Section 4.2 [Intentionally Omitted].

Section 4.3 [Intentionally Omitted].

Section 4.4 Application of Proceeds. Any proceeds received by the Administrative
Agent or any Lender in accordance with the terms of this Agreement or any other Loan Document in
connection with any disposition of Collateral (including, without limitation, whether by reason of
insurance or condemnation events), shall be applied in accordance with Section 5.5.

 

30

 

Section 4.5 [Intentionally Omitted].

ARTICLE
V

GENERAL LOAN PROVISIONS

Section 5.1 Interest.

(a) Interest Rate Options. Subject to the provisions of this Section 5.1, at
the election of the Borrower, (i) Revolving Credit Loans shall bear interest at (A) the Base
Rate plus the Applicable Margin as set forth in Section 5.1(c) or (B) the LIBOR Rate
plus the Applicable Margin as set forth in Section 5.1(c) and (ii) any Swingline
Loan shall bear interest at the Base Rate plus the Applicable Margin as set forth in
Section 5.1(c). The Borrower shall select the rate of interest and Interest Period, if any,
applicable to any Loan at the time a Notice of Borrowing is given pursuant to Section 2.3,
as applicable, or at the time a Notice of Conversion/Continuation is given pursuant to
Section 5.2. Any Loan or any portion thereof as to which the Borrower has not duly
specified an interest rate as provided herein shall be deemed a Base Rate Loan.

(b) Interest Periods. In connection with each LIBOR Rate Loan, the Borrower,
by giving notice at the times described in Section 5.1(a), shall elect an interest period
(each, an “Interest Period”) to be applicable to such Loan, which Interest Period
shall be a period of one (1), two (2), three (3), or six (6) months with respect to each
LIBOR Rate Loan; provided that:

(i) the Interest Period shall commence on the date of advance of or conversion
to any LIBOR Rate Loan and, in the case of immediately successive Interest Periods,
each successive Interest Period shall commence on the date on which the immediately
preceding Interest Period expires;

(ii) if any Interest Period would otherwise expire on a day that is not a
Business Day, such Interest Period shall expire on the next succeeding Business Day;
provided, that if any Interest Period with respect to a LIBOR Rate Loan
would otherwise expire on a day that is not a Business Day but is a day of the month
after which no further Business Day occurs in such month, such Interest Period shall
expire on the immediately preceding Business Day;

(iii) any Interest Period with respect to a LIBOR Rate Loan that begins on the
last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall
end on the last Business Day of the relevant calendar month at the end of such
Interest Period;

(iv) no Interest Period shall extend beyond the Revolving Credit Maturity Date;
and

(v) there shall be no more than six (6) Interest Periods in effect at any time.

 

31

 

(c) Applicable Margin. The Applicable Margin provided for in Section 5.1(a)
with respect to any Loan (the “Applicable Margin”) shall be based upon the table set
forth below and shall be determined and adjusted quarterly on the date (each a
“Calculation Date”) ten (10) Business Days after the earlier of (i) the date on
which Borrower provides or (ii) the date on which the Borrower is required to provide, an
Officer’s Compliance Certificate for the most recently ended Fiscal Quarter of the Borrower;
provided, however, that (A) the initial Applicable Margin shall be based on Pricing
Level IV (as shown below) and shall remain at Pricing Level IV until the first Calculation
Date occurring after the Closing Date and, thereafter the Pricing Level shall be determined
by reference to the Adjusted Debt to EBITDAR Ratio as of the last day of the most recently
ended Fiscal Quarter of the Borrower preceding the applicable Calculation Date, and (B) if
the Borrower fails to provide the Officer’s Compliance Certificate as required by Section
8.2 for the most recently ended Fiscal Quarter of the Borrower preceding the applicable
Calculation Date, the Applicable Margin from such Calculation Date shall be based on Pricing
Level I (as shown below) until such time as an appropriate Officer’s Compliance Certificate
is provided, at which time the Pricing Level shall be determined by reference to the
Adjusted Debt to EBITDAR Ratio as of the last day of the most recently ended Fiscal Quarter
of the Borrower preceding such Calculation Date. Subject to Sections 5.1(c)(ii)(A) and (B)
in the preceding sentence, the Applicable Margin shall be effective from one Calculation
Date until the next Calculation Date. Any adjustment in the Applicable Margin shall be
applicable to all Extensions of Credit then existing or subsequently made or issued.

Notwithstanding the foregoing, in the event that any financial statement or Officer’s
Compliance Certificate delivered pursuant to Section 8.1 or 8.2 is shown to be inaccurate
(regardless of whether (i) this Agreement is in effect, (ii) the Revolving Credit Commitment
is in effect, or (iii) any Extension of Credit is outstanding when such inaccuracy is
discovered or such financial statement or Officer’s Compliance Certificate was delivered),
and such inaccuracy, if corrected, would have led to the application of a higher Applicable
Margin for any period (an “Applicable Period”) than the Applicable Margin applied
for such Applicable Period, then (x) the Borrower shall promptly deliver to the
Administrative Agent a corrected Officer’s Compliance Certificate for such Applicable
Period, (y) the Applicable Margin for such Applicable Period shall be determined as if the
Adjusted Debt to EBITDAR Ratio in the corrected Officer’s Compliance Certificate were
applicable for such Applicable Period, and (z) the Borrower shall promptly and retroactively
be obligated to pay to the Administrative Agent the accrued additional interest and fees
owing as a result of such increased Applicable Margin for such Applicable Period, which
payment shall be promptly applied by the Administrative Agent in accordance with Section
5.4. Nothing in this paragraph shall limit the rights of the Administrative Agent and
Lenders with respect to Sections 5.1(d) and 12.2 nor any of their other rights under this
Agreement. The Borrower’s obligations under this paragraph shall survive the termination of
the Revolving Credit Commitment and the repayment of all other Obligations hereunder.

 

32

 

Pricing Grid

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Adjusted Debt to	 	Applicable Base	 	Applicable LIBOR
	Level	 	EBITDAR Ratio	 	Rate Margin	 	Rate Margin
	I

	 	Greater than or equal
to 5.00 to 1.00
	 	 	3.250	%	 	 	4.000	%
	II

	 	Greater than or equal
to 4.50 to 1.00 but
less than 5.00 to
1.00
	 	 	3.000	%	 	 	3.750	%
	III

	 	Greater than or equal
to 4.00 to 1.00 but
less than 4.50 to 1.00
	 	 	2.750	%	 	 	3.500	%
	IV

	 	Greater than or equal
to 3.50 to 1.00 but
less than 4.00 to 1.00
	 	 	2.500	%	 	 	3.250	%
	V

	 	Less than 3.50 to 1.00
	 	 	2.250	%	 	 	3.000	%

(d) Default Rate. Subject to Section 12.3, at the discretion of the
Administrative Agent or as directed by the Required Lenders, upon the occurrence and during
the continuance of an Event of Default, (i) the Borrower shall no longer have the option to
request LIBOR Rate Loans or Swingline Loans, (ii) all outstanding LIBOR Rate Loans shall
bear interest at a rate per annum of two percent (2%) in excess of the rate then applicable
to LIBOR Rate Loans until the end of the applicable Interest Period and thereafter at a rate
equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans, and
(iii) all outstanding Base Rate Loans and other Obligations arising hereunder or under any
other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in
excess of the rate then applicable to Base Rate Loans or such other Obligations arising
hereunder or under any other Loan Document. Interest shall continue to accrue on the
Obligations after the filing by or against the Borrower of any petition seeking any relief
in bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether
state, federal or foreign.

(e) Interest Payment and Computation. Interest on each Base Rate Loan shall be
payable in arrears on the last Business Day of each calendar quarter commencing March 31,
2010; and interest on each LIBOR Rate Loan shall be payable on the last day of each Interest
Period applicable thereto, and if such Interest Period extends over three (3) months, at the
end of each three (3) month interval during such Interest Period. Interest on LIBOR Rate
Loans and all fees payable hereunder shall be computed on the basis of a 360-day year and
assessed for the actual number of days elapsed and interest on Base Rate Loans shall be
computed on the basis of a 365/366-day year and assessed for the actual number of days
elapsed.

(f) Maximum Rate. In no contingency or event whatsoever shall the aggregate of
all amounts deemed interest under this Agreement charged or collected pursuant to the terms
of this Agreement exceed the highest rate permissible under any Applicable Law which a court
of competent jurisdiction shall, in a final determination,

 

33

 

deem applicable hereto. In the event that such a court determines that the Lenders
have charged or received interest hereunder in excess of the highest applicable rate, the
rate in effect hereunder shall automatically be reduced to the maximum rate permitted by
Applicable Law and the Lenders shall at the Administrative Agent’s option (i) promptly
refund to the Borrower any interest received by the Lenders in excess of the maximum lawful
rate or (ii) apply such excess to the principal balance of the Obligations on a pro
rata basis. It is the intent hereof that the Borrower not pay or contract to pay,
and that neither the Administrative Agent nor any Lender receive or contract to receive,
directly or indirectly in any manner whatsoever, interest in excess of that which may be
paid by the Borrower under Applicable Law.

Section 5.2 Notice and Manner of Conversion or Continuation of Loans. Provided that
no Default or Event of Default has occurred and is then continuing, the Borrower shall have the
option to (a) convert at any time following the third Business Day after the Closing Date all or
any portion of any outstanding Base Rate Loans (other than Swingline Loans) in a principal amount
equal to $1,000,000 or any whole multiple of $500,000 in excess thereof into one or more LIBOR Rate
Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its
outstanding LIBOR Rate Loans in a principal amount equal to $1,000,000 or a whole multiple of
$500,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such
LIBOR Rate Loans as LIBOR Rate Loans. Whenever the Borrower desires to convert or continue Loans
as provided above, the Borrower shall give the Administrative Agent irrevocable prior written
notice in the form attached as Exhibit E (a “Notice of Conversion/Continuation”) not later
than 11:00 a.m. (Charlotte time) three (3) Business Days before the day on which a proposed
conversion or continuation of such Loan is to be effective specifying (A) the Loans to be converted
or continued, and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of
the Interest Period therefor, (B) the effective date of such conversion or continuation (which
shall be a Business Day), (C) the principal amount of such Loans to be converted or continued, and
(D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan. The
Administrative Agent shall promptly notify the Lenders of such Notice of Conversion/Continuation.
LIBOR Rate Loans shall be converted to Base Rate Loans upon the expiration of the applicable
Interest Period unless the Administrative Agent shall have received a Notice of
Conversion/Continuation pursuant to the above.

Section 5.3 Fees.

(a) Commitment Fee. Commencing on the Closing Date, the Borrower shall pay to
the Administrative Agent, for the account of the Lenders (other than any Defaulting Lender),
a non-refundable commitment fee at a rate per annum equal to the applicable rate based upon
the table set forth below (the “Commitment Fee Rate”) on the aggregate average daily
unused portion of the Revolving Credit Commitment (other than the Defaulting Lenders’, if
any); provided, that the amount of outstanding Swingline Loans shall not be
considered usage of the Revolving Credit Commitment for the purpose of calculating such
commitment fee (other than with respect to calculating any commitment fee due to the
Swingline Lender in which case, the full Swingline Commitment shall be deemed usage of the
Revolving Credit Commitment). The commitment fee shall be payable in arrears on the last
Business Day of each calendar

 

34

 

quarter during the term of this Agreement commencing on the first such date following
the Closing Date, and on the Revolving Credit Maturity Date. Such commitment fee shall be
distributed by the Administrative Agent to the Lenders (other than any Defaulting Lender)
pro rata in accordance with the Lenders’ respective Revolving Credit
Commitment Percentages. The Commitment Fee Rate shall be based upon the table set forth
below and shall be determined and adjusted quarterly on each Calculation Date;
provided, however, that (i) the initial Commitment Fee Rate shall be based
on Pricing Level IV (as shown below) and shall remain at Pricing Level IV until the first
Calculation Date occurring after the Closing Date and thereafter the Pricing Level shall be
determined by reference to the Adjusted Debt to EBITDAR Ratio as of the last day of the most
recently ended Fiscal Quarter of the Borrower preceding the applicable Calculation Date, and
(ii) if the Borrower fails to provide the Officer’s Compliance Certificate as required by
Section 8.2 for the most recently ended Fiscal Quarter of the Borrower preceding the
applicable Calculation Date, the Commitment Fee Rate from such Calculation Date shall be
based on Pricing Level I (as shown below) until such time as an appropriate Officer’s
Compliance Certificate is provided, at which time the Pricing Level shall be determined by
reference to the Adjusted Debt to EBITDAR Ratio as of the last day of the most recently
ended Fiscal Quarter of the Borrower preceding such Calculation Date. Subject to Sections
5.3(a)(i) and (ii) in the preceding sentence, the Commitment Fee Rate shall be effective
from one Calculation Date until the next Calculation Date.

	 	 	 	 	 	 	 
	Pricing Level	 	Adjusted Debt to EBITDAR Ratio	 	Commitment Fee Rate
	I

	 	Greater than or equal to 5.00 to 1.00
	 	 	1.000	%
	II

	 	Greater than or equal to 4.50 to
1.00, but less than 5.00 to 1.00
	 	 	0.875	%
	III

	 	Greater than or equal to 4.00 to
1.0, but less than 4.50 to 1.00
	 	 	0.750	%
	IV

	 	Greater than or equal to 3.50 to
1.00 but less than 4.00 to 1.00
	 	 	0.625	%
	V

	 	Less than 3.50 to 1.00
	 	 	0.500	%

(b) Upfront Fees. On the Closing Date, the Borrower shall pay to the
Administrative Agent, for the account of the Lenders, Upfront Fees as provided in that
certain commitment letter between the Borrower and the Administrative Agent dated as of
December 8, 2009 (the “Commitment Letter”).

(c) Administrative Agent’s and Other Fees. In order to compensate the
Administrative Agent for structuring and syndicating the Loans and for its obligations
hereunder, the Borrower agrees to pay to the Administrative Agent, for its account (and, in
the case of the other lead arrangers with respect to applicable arrangement fees, for their
respective accounts), the administrative fee and other fees set forth in the Commitment
Letter.

 

35

 

Section 5.4 Manner of Payment.

(a) Sharing of Payments. Each payment by the Borrower on account of the
principal of or interest on the Loans or of any fee, commission or other amounts (including
the Reimbursement Obligation) payable to the Lenders under this Agreement or any other Loan
Document shall be made not later than 1:00 p.m. (Charlotte time) on the date specified for
payment under this Agreement to the Administrative Agent at the Administrative Agent’s
Office for the account of the Lenders (other than as set forth below) pro
rata in accordance with their respective Revolving Credit Commitment Percentages
(except as specified below), in Dollars, in immediately available funds and shall be made
without any setoff, counterclaim or deduction whatsoever. Any payment received after such
time but before 2:00 p.m. (Charlotte time) on such day shall be deemed a payment on such
date for the purposes of Section 12.1, but for all other purposes shall be deemed to have
been made on the next succeeding Business Day. Any payment received after 2:00 p.m.
(Charlotte time) shall be deemed to have been made on the next succeeding Business Day for
all purposes. Upon receipt by the Administrative Agent of each such payment, the
Administrative Agent shall distribute to each Lender at its address for notices set forth
herein its pro rata share of such payment in accordance with such Lender’s
Revolving Credit Commitment Percentage (except as specified below) and shall wire advice of
the amount of such credit to each Lender. Each payment to the Administrative Agent of the
Issuing Lender’s fees or L/C Participants’ commissions shall be made in like manner, but for
the account of the Issuing Lender or the L/C Participants, as the case may be. Each payment
to the Administrative Agent of Administrative Agent’s fees or expenses shall be made for the
account of the Administrative Agent and any amount payable to any Lender under Sections 5.8,
5.9, 5.10, 5.11 or 14.2 shall be paid to the Administrative Agent for the account of the
applicable Lender. Subject to Section 5.1(b)(ii), if any payment under this Agreement shall
be specified to be made upon a day which is not a Business Day, it shall be made on the next
succeeding day which is a Business Day and such extension of time shall in such case be
included in computing any interest if payable along with such payment.

(b) Defaulting Lenders. Notwithstanding the foregoing clause (a), if any
Defaulting Lender shall have failed to fund all or any portion of any Revolving Credit Loan
(each such Revolving Credit Loan, an “Affected Loan”), each payment by the Borrower
hereunder shall be applied first to such Affected Loan and the principal amount and interest
with respect to such payment shall be distributed (i) to each Lender that is not a
Defaulting Lender (each, a “Non-Defaulting Lender”) pro rata based
on the outstanding principal amount of Affected Loans owing to all Non-Defaulting Lenders,
until the principal amount of all Affected Loans has been repaid in full and (ii) to the
extent of any remaining amount of such payment, to each Lender as set forth in clause (a).
Each payment made by the Borrower on account of the interest on any Affected Loans shall be
distributed to each Non-Defaulting Lender pro rata based on the outstanding principal amount
of Affected Loans owing to all Non-Defaulting Lenders.

Section 5.5 Crediting of Payments and Proceeds. In the event that the Borrower shall
fail to pay any of the Obligations when due and the Obligations have been accelerated pursuant to
Section 12.2, all payments received by the Lenders on the Obligations

 

36

 

and all net proceeds from the enforcement of the Obligations shall be applied: (a) first to
all expenses then due and payable by the Borrower hereunder and under the other Loan Documents, (b)
then to all indemnity obligations then due and payable by the Borrower hereunder and under the
other Loan Documents, (c) then to all Administrative Agent’s and Issuing Lender’s fees then due and
payable, (d) then to all commitment and other fees and commissions then due and payable, (e) then
to accrued and unpaid interest on the Loans and accrued and unpaid interest on the Reimbursement
Obligation (pro rata in accordance with all such amounts due), (f) then to the principal amount of
the Loans and Reimbursement Obligation and any payments (including any termination payments and any
accrued and unpaid interest thereon) due in respect of Hedging Obligations (pro rata in accordance
with all such amounts due) and (g) then to the cash collateral account described in Section 12.2(b)
hereof to the extent of any L/C Obligations then outstanding, in that order.

Section 5.6 Adjustments. If any Lender shall, by exercising any right of setoff or
counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its
Loans or other obligations hereunder resulting in such Lender’s receiving payment of a proportion
of the aggregate amount of its Loans and accrued interest thereon or other such obligations (other
than pursuant to Sections 5.9, 5.10, 5.11 or 14.2 hereof) greater than its pro rata
share thereof as provided herein, then the Lender receiving such greater proportion shall (a)
notify the Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Loans and such other obligations of the other Lenders, or make such other
adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and other amounts owing them; provided that:

(a) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, without interest, and

(b) the provisions of this paragraph shall not be construed to apply to (x) any payment made
by the Borrower pursuant to and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or sale of a participation in
any of its Loans or participations in Swingline Loans and Letters of Credit to any assignee or
participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of
this paragraph shall apply).

Each Credit Party consents to the foregoing and agrees, to the extent it may effectively do so
under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against each Credit Party rights of setoff and counterclaim with respect
to such participation as fully as if such Lender were a direct creditor of each Credit Party in the
amount of such participation.

Section 5.7 Obligations of Lenders.

(a) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
borrowing that such Lender will not make available to the Administrative Agent such Lender’s

 

37

 

share of such borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.3(b) and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable borrowing available to the Administrative Agent, then
the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith
on demand such corresponding amount with interest thereon, for each day from and including the date
such amount is made available to the Borrower to but excluding the date of payment to the
Administrative Agent, at (i) in the case of a payment to be made by such Lender, the greater of the
daily average Federal Funds Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation and (ii) in the case of a payment to be made
by the Borrower, the interest rate applicable to Base Rate Loans. If the Borrower and such Lender
shall pay such interest to the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrower the amount of such interest paid by the
Borrower for such period. If such Lender pays its share of the applicable Borrowing to the
Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in such
borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower may
have against a Lender that shall have failed to make such payment to the Administrative Agent.

(b) Nature of Obligations of Lenders Regarding Extensions of Credit. The obligations
of the Lenders under this Agreement to make the Loans and issue or participate in Letters of Credit
are several and are not joint or joint and several. The failure of any Lender to make available
its Commitment Percentage of any Loan requested by the Borrower shall not relieve it or any other
Lender of its obligation, if any, hereunder to make its Commitment Percentage of such Loan
available on the borrowing date, but no Lender shall be responsible for the failure of any other
Lender to make its Commitment Percentage of such Loan available on the borrowing date.

Section 5.8 Changed Circumstances.

(a) Circumstances Affecting LIBOR Rate Availability. If, with respect to any Interest
Period or with respect to Base Rate Loans as to which the interest rate is determined with
reference to the LIBOR Rate, the Administrative Agent or any Lender (after consultation with the
Administrative Agent) shall determine that, by reason of circumstances affecting the foreign
exchange and interbank markets generally, deposits in eurodollars, in the applicable amounts are
not being quoted via the Reuters Screen LIBOR01 Page or offered to the Administrative Agent or such
Lender for such Interest Period, then the Administrative Agent shall forthwith give notice thereof
to the Borrower. Thereafter, until the Administrative Agent notifies the Borrower that such
circumstances no longer exist, the obligation of the Lenders to make LIBOR Rate Loans and Base Rate
Loans as to which the interest rate is determined with reference to the LIBOR Rate and the right of
the Borrower to convert any Loan to or continue any Loan as a LIBOR Rate Loan or a Base Rate Loan
as to which the interest rate is determined with reference to the LIBOR Rate shall be suspended,
and (i) the Borrower shall repay in full (or cause to be repaid in full) the then outstanding
principal amount of each such LIBOR Rate Loan together with accrued interest thereon, on the last
day of the then current Interest Period applicable to such LIBOR Rate Loan or convert the then
outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan as of the last day of
such Interest Period and (ii) all outstanding

 

38

 

Base Rate Loans as to which interest was determined with reference to the LIBOR Rate shall
have interest rates calculated in accordance with clauses (a) and (b) in the definition of Base
Rate.

(b) Laws Affecting LIBOR Rate Availability. If, after the date hereof, the
introduction of, or any change in, any Applicable Law or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any of the Lenders (or any of
their respective Lending Offices) with any request or directive (whether or not having the force of
law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful
or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its
obligations hereunder to make or maintain any LIBOR Rate Loan or any Base Rate Loan as to which the
interest rate is determined with reference to the LIBOR Rate, such Lender shall promptly give
notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice
to the Borrower and the other Lenders. Thereafter, until the Administrative Agent notifies the
Borrower that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR
Rate Loans and Base Rate Loans as to which the interest rate is determined with reference to the
LIBOR Rate and the right of the Borrower to convert any Loan or continue any Loan as a LIBOR Rate
Loan or a Base Rate Loan as to which the interest rate is determined with reference to the LIBOR
Rate shall be suspended and thereafter the Borrower may select only Base Rate Loans (as to which
the interest rates shall be calculated pursuant to clauses (a) and (b) of the definition of “Base
Rate”) hereunder, and (ii) if any of the Lenders may not lawfully continue to maintain a LIBOR Rate
Loan or any Base Rate Loan as to which the interest rate is determined with reference to the LIBOR
Rate to the end of the then current Interest Period applicable thereto, the applicable Loan shall
immediately be converted to a Base Rate Loan (as to which the interest rates shall be calculated
pursuant to clauses (a) and (b) of the definition of “Base Rate”) for the remainder of such
Interest Period.

Section 5.9 Indemnity. The Borrower hereby indemnifies each of the Lenders against
any loss or expense which may arise or be attributable to each Lender’s obtaining, liquidating or
employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a
consequence of any failure by the Borrower to make any payment when due of any amount due hereunder
in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow, continue or
convert on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation
or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the
last day of the Interest Period therefor. The amount of such loss or expense shall be determined,
in the applicable Lender’s sole discretion, based upon the assumption that such Lender funded its
Revolving Credit Commitment Percentage of the LIBOR Rate Loans in the London interbank market and
using any reasonable attribution or averaging methods which such Lender deems appropriate and
practical. A certificate of such Lender setting forth the basis for determining such amount or
amounts necessary to compensate such Lender shall be forwarded to the Borrower through the
Administrative Agent and shall be conclusively presumed to be correct save for manifest error.

Section 5.10 Increased Costs.

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

 

39

 

(i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or advances, loans or other credit extended or participated in by, any Lender (except
any reserve requirement reflected in the LIBOR Rate) or the Issuing Lender;

(ii) subject any Lender or the Issuing Lender to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or
any LIBOR Rate Loan made by it, or change the basis of taxation of payments to such Lender
or the Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 5.11 and the imposition of, or any change in the rate of any Excluded Tax
payable by such Lender or the Issuing Lender); or

(iii) impose on any Lender or the Issuing Lender or the London interbank market any
other condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making,
converting into or maintaining any LIBOR Rate Loan (or of maintaining its obligation to make any
such Loan), or to increase the cost to such Lender or the Issuing Lender of participating in,
issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or
to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such
Lender or the Issuing Lender hereunder (whether of principal, interest or any other amount) then,
upon written request of such Lender or the Issuing Lender, the Borrower shall promptly pay to any
such Lender or the Issuing Lender, as the case may be, such additional amount or amounts as will
compensate such Lender or the Issuing Lender, as the case may be, for such additional costs
incurred or reduction suffered.

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

(c) Certificates for Reimbursement. A certificate of a Lender or the Issuing Lender
setting forth the amount or amounts necessary to compensate such Lender or the Issuing Lender or
its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay

 

40

 

such Lender or the Issuing Lender, as the case may be, the amount shown as due on any such
certificate within fifteen (15) days after receipt thereof.

(d) Delay in Requests. Failure or delay on the part of any Lender or the Issuing
Lender to demand compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or the Issuing Lender’s right to demand such compensation; provided that the
Borrower shall not be required to compensate a Lender or the Issuing Lender pursuant to this
Section for any increased costs incurred or reductions suffered more than six (6) months prior to
the date that such Lender or the Issuing Lender, as the case may be, notifies the Borrower of the
Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing
Lender’s intention to claim compensation therefor (except that if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the nine-month period referred to above
shall be extended to include the period of retroactive effect thereof).

Section 5.11 Taxes.

(a) Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if
the Borrower shall be required by Applicable Law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, Lender or Issuing Lender, 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 timely pay the full amount
deducted to the relevant Governmental Authority in accordance with Applicable Law.

(b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
paragraph (a) above, the Borrower shall timely pay any Other Taxes (other than Excluded Taxes) to
the relevant Governmental Authority in accordance with Applicable Law.

(c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the Issuing Lender, within thirty (30) days after demand therefor, for the
full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender
or the Issuing Lender, as the case may be, and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount
of such payment or liability delivered to the Borrower by a Lender or the Issuing Lender (with a
copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of
a Lender or the Issuing Lender, shall be conclusive absent manifest error.

(d) Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such

 

41

 

Governmental Authority evidencing such payment, a copy of the return reporting such payment or
other evidence of such payment reasonably satisfactory to the Administrative Agent.

(e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by
the Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by Applicable Law as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup or other
withholding or information reporting requirements. Without limiting the generality of the
foregoing, in the event that the Borrower is a resident for tax purposes in the United States, any
Foreign Lender shall deliver to the Borrower and the Administrative Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Lender
becomes a Lender under this Agreement (and from time to time thereafter upon the request of the
Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

(A) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States is a party,

(B) duly completed copies of Internal Revenue Service Form W-8ECI,

(C) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender
is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent
shareholder” of the Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a
“controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly
completed copies of Internal Revenue Service Form W-8BEN, or

(D) any other form prescribed by Applicable Law as a basis for claiming exemption from or a
reduction in United States Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by Applicable Law to permit the Borrower to determine the
withholding or deduction required to be made.

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

 

42

 

paid by the relevant Governmental Authority with respect to such refund); provided
that the Borrower, upon the request of the Administrative Agent, such Lender or the Issuing Lender,
agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the
Issuing Lender in the event the Administrative Agent, such Lender or the Issuing Lender is required
to repay such refund to such Governmental Authority. This paragraph shall not be construed to
require the Administrative Agent, any Lender or the Issuing Lender to make available its tax
returns (or any other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

(g) Survival. Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in this Section shall
survive the payment in full of the Obligations and the termination of the Commitments.

Section 5.12 Security. The Obligations of the Borrower and the Subsidiary Guaranteed
Obligations shall be secured as provided in the Security Documents.

Section 5.13 Mitigation Obligations; Replacement of Lenders.

(a) Designation of a Different Lending Office. If any Lender requests compensation
under Section 5.10, or requires the Borrower to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 5.11, then such Lender
shall use reasonable efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i)
would eliminate or reduce amounts payable pursuant to Section 5.10 or Section 5.11, as the case may
be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such designation or
assignment. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

(b) Replacement of Lenders. If any Lender requests compensation under Section 5.10,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 5.11, or if any Lender is a Defaulting
Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section 14.10), all of
its interests, rights and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that:

(i) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 14.10,

(ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and participations in Letters of Credit, accrued

 

43

 

interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 5.9) from
the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts),

(iii) in the case of any such assignment resulting from a claim for
compensation under Section 5.10 or payments required to be made pursuant to Section
5.11, such assignment will result in a reduction in such compensation or payments
thereafter, and

(iv) such assignment does not conflict with Applicable Law.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

ARTICLE VI

CLOSING; CONDITIONS OF CLOSING AND BORROWING

Section 6.1 Closing. The closing shall take place at the offices of Winston & Strawn
LLP at 10:00 a.m. on January 26, 2010 or at such other place, and on such other date and time as
the parties hereto shall mutually agree.

Section 6.2 Conditions to Closing and Initial Extensions of Credit. The obligation of
the Lenders to close this Agreement and to make the initial Loan or issue or participate in the
initial Letter of Credit, if any, is subject to the satisfaction of each of the following
conditions:

(a) Executed Loan Documents. This Agreement, the Revolving Credit Notes (if
requested by any Lender), the Swingline Note (if requested by the Swingline Lender), the
Security Documents (including, without limitation, the amendments or modifications to each
Mortgage and each new Mortgage), the Intercreditor and Subordination Agreement, together
with any other applicable Loan Documents, shall have been duly authorized, executed and
delivered to the Administrative Agent by the parties thereto, shall be in full force and
effect and no Default or Event of Default shall exist thereunder, and the Borrower shall
have delivered original counterparts thereof to the Administrative Agent.

(b) Closing Certificates; etc.

(i) Officer’s Certificate of the Borrower. The Administrative Agent
shall have received a certificate from a Responsible Officer, in form and substance
satisfactory to the Administrative Agent, to the effect that all representations and
warranties of the Borrower and its Subsidiaries contained in this Agreement and the
other Loan Documents are true, correct and complete; that neither the Borrower nor
any of its Subsidiaries is in violation of any of the covenants contained in this
Agreement and the other Loan Documents; that, after

 

44

 

giving effect to the transactions contemplated by this Agreement, no Default or
Event of Default has occurred and is continuing; and that the Borrower and its
Subsidiaries have satisfied each of the closing conditions.

(ii) Certificate of Secretary of the Borrower and each of the Subsidiary
Guarantors. The Administrative Agent shall have received a certificate of the
secretary or assistant secretary of the Borrower and each of the Subsidiary
Guarantors certifying as to the incumbency and genuineness of the signature of each
officer of the Borrower or such Subsidiary Guarantor executing the Loan Documents to
which it is a party and certifying that attached thereto is a true, correct and
complete copy of (A) the articles of incorporation or other organizational document
of the Borrower or such Subsidiary Guarantor and all amendments thereto, certified
as of a recent date by the appropriate Governmental Authority in its jurisdiction of
incorporation, (B) the bylaws or other operative document of the Borrower or such
Subsidiary Guarantor as in effect on the date of such certifications, (C)
resolutions duly adopted by the Board of Directors or other governing body of the
Borrower or such Subsidiary Guarantor authorizing the borrowings contemplated
hereunder and the execution, delivery and performance of this Agreement and the
other Loan Documents to which it is a party, and (D) each certificate required to be
delivered pursuant to Section 6.2(b)(iii).

(iii) Certificates of Good Standing. The Administrative Agent shall
have received long-form certificates as of a recent date of the good standing of the
Borrower and each Subsidiary Guarantor under the laws of its respective jurisdiction
of organization and, to the extent requested by the Administrative Agent, each other
jurisdiction where the Borrower and each of the Subsidiary Guarantors is qualified
to do business and a certificate of the relevant taxing authorities of such
jurisdictions certifying that such Person has filed required tax returns and owes no
delinquent taxes.

(iv) Opinions of Counsel. The Administrative Agent shall have received
favorable opinions of counsel to the Borrower and the Subsidiary Guarantors,
including local counsel opinions, addressed to the Administrative Agent and the
Lenders with respect to the Borrower, the Subsidiary Guarantors, real estate
collateral matters, the Loan Documents and such other matters as the Lenders shall
request.

(v) Tax Forms. The Administrative Agent shall have received copies of
the United States Internal Revenue Service forms required by Section 5.11(e) hereof.

(c) Collateral.

(i) Filings and Recordings. All filings and recordations that are
necessary to perfect the security interests of the Lenders in the collateral
described in the Security Documents, including, without limitation, the amendments
and

 

45

 

modifications to the Mortgages, shall have been received by the Administrative
Agent and the Administrative Agent shall have received evidence satisfactory thereto
that upon such filings and recordations such security interests constitute valid and
perfected first priority Liens therein, subject only to Permitted Liens.

(ii) Pledged Collateral. The Administrative Agent shall have received
(A) original stock certificates or other certificates evidencing the capital stock
or other ownership interests pledged pursuant to the Collateral Agreement, together
with an undated stock power for each such certificate duly executed in blank by the
registered owner thereof and (B) each original promissory note pledged pursuant to
the Collateral Agreement.

(iii) Lien Searches. The Administrative Agent shall have received the
results of Lien searches ordered by the Administrative Agent (including searches as
to UCC lien filings, judgments, pending litigation, tax, bankruptcy and intellectual
property matters), in form and substance reasonably satisfactory thereto, made
against the Credit Parties under the Uniform Commercial Code (or applicable judicial
docket) as in effect in each jurisdiction in which filings or recordations under the
Uniform Commercial Code should be made to evidence or perfect security interests in
all assets of such Credit Party, indicating among other things that the assets of
each such Credit Party are free and clear of any Lien (except for Permitted Liens).

(iv) Hazard and Liability Insurance. The Administrative Agent shall
have received certificates of insurance, evidence of payment of all insurance
premiums for the current policy year of each, and, if requested by the
Administrative Agent, copies (certified by a Responsible Officer) of insurance
policies in the form required under the Security Documents and otherwise in form and
substance reasonably satisfactory to the Administrative Agent.

(v) Real Property Documentation. The Administrative Agent shall have
received each new Mortgage, each requested amendment/ modification to the existing
Mortgages, any and all certificates, documents and information reasonably requested
by Administrative Agent or the Lenders on the parcels of real property subject to
the Mortgages, including, without limitation, title insurance, title exceptions,
matters relating to flood hazard properties, surveys, environmental assessments,
engineering and structural reports, permanent certificates of occupancy and evidence
of zoning compliance, each in form and substance reasonably satisfactory to the
Administrative Agent. With respect to each parcel of real property already subject
to Mortgages, the Administrative Agent shall have received such endorsements to
title insurance policies as may be requested by the Administrative Agent, such title
policy endorsements to be in form and substance satisfactory to the Administrative
Agent.

(vi) Intellectual Property Security Agreements. The Administrative
Agent shall have received duly executed intellectual property security agreements.

 

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(d) Consents; Defaults.

(i) Governmental and Third Party Approvals. The Borrower shall have
obtained all necessary approvals, authorizations and consents of any Person and of
all Governmental Authorities and courts having jurisdiction with respect to the
transactions contemplated by this Agreement and the other Loan Documents.

(ii) No Injunction, Etc. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or proposed before
any Governmental Authority to enjoin, restrain, or prohibit, or to obtain
substantial damages in respect of, or which is related to or arises out of this
Agreement, the other Loan Documents or the consummation of the transactions
contemplated hereby or thereby, or which, in the Administrative Agent’s sole
discretion, would make it inadvisable to consummate the transactions contemplated by
this Agreement and such other Loan Documents.

(iii) No Event of Default. No Default or Event of Default shall have
occurred and be continuing.

(e) Financial Matters.

(i) Financial Statements. The Administrative Agent shall have received
the most recent audited Consolidated financial statements of the Borrower and its
Subsidiaries, all in form and substance satisfactory to the Administrative Agent and
prepared in accordance with GAAP.

(ii) Financial Projections. The Administrative Agent shall have
received pro forma Consolidated financial statements for the
Borrower and its Subsidiaries, and projections prepared by management of the
Borrower, of balance sheets, income statements and cash flow statements on a
quarterly basis for the first year following the Closing Date and on an annual basis
for each year thereafter during the term of the Credit Facility (and which will not
be inconsistent with information provided to the Administrative Agent prior to the
delivery of the Commitment Letter).

(iii) Financial Condition Certificate. The Borrower shall have
delivered to the Administrative Agent a certificate, in form and substance
satisfactory to the Administrative Agent, and certified as accurate by a Responsible
Officer, that (A) the Borrower and each of its Subsidiaries are each Solvent, (B)
the Borrower’s and its Subsidiaries’ payables are current and not past due in any
material respect, (C) attached thereto are calculations evidencing compliance on a
pro forma basis with the covenants contained in Article X hereof, (D) the financial
projections previously delivered to the Administrative Agent represent the good
faith estimates (utilizing reasonable assumptions) of the financial condition and
operations of the Borrower and its Subsidiaries and (E) attached thereto is a
calculation of the Applicable Margin pursuant to Section 5.1(c).

 

47

 

(iv) Payment at Closing; Fee Letters. The Borrower shall have paid to
the Administrative Agent and the Lenders the fees set forth or referenced in Section
5.3 and any other accrued and unpaid fees or commissions due hereunder (including,
without limitation, legal fees and expenses) and to any other Person such amount as
may be due thereto in connection with the transactions contemplated hereby,
including all taxes, fees and other charges in connection with the execution,
delivery, recording, filing and registration of any of the Loan Documents.

(f) Miscellaneous.

(i) Notice of Borrowing. The Administrative Agent shall have received
a Notice of Borrowing, as applicable, from the Borrower in accordance with Section
2.3(a), and a Notice of Account Designation specifying the account or accounts to
which the proceeds of any Loans made after the Closing Date are to be disbursed.

(ii) Existing Debt. All Debt of the Borrower and its Subsidiaries,
other than Debt permitted pursuant to Section 11.1 and the Existing Letters of
Credit, shall be repaid in full and terminated and all security therefor released.

(iii) Due Diligence and Other Documents. The Administrative Agent
shall have completed, to its satisfaction, all legal, tax, business and other due
diligence with respect to the business, assets, liabilities, operations and
condition (financial or otherwise) of the Borrower and its Subsidiaries in scope and
determination satisfactory to the Administrative Agent in its sole discretion. All
opinions, certificates and other instruments and all proceedings in connection with
the transactions contemplated by this Agreement shall be satisfactory in form and
substance to the Administrative Agent. The Administrative Agent shall have received
copies of all other documents, certificates and instruments reasonably requested
thereby, with respect to the transactions contemplated by this Agreement.

(g) Amendment to Intercompany Loan. The Administrative Agent shall have
received executed versions of an amendment to the Intercompany Loan (i) extending the
maturity date thereof to a date at least six (6) months following the Revolving Credit
Maturity Date and (ii) otherwise in form and substance satisfactory to the Administrative
Agent.

(h) Repayment and Assignment of Certain Amounts Outstanding under Existing Credit
Agreement. On the Closing Date, (i) all outstanding loans under the Existing Credit
Agreement (the “Existing Loans”) made by any Existing Lender who is not a Lender
hereunder shall be assigned in full to the Administrative Agent (or such new Lender as the
Administrative Agent may direct) and the commitments and other obligations and rights
(except as expressly set forth in the Existing Credit Agreement) of such Existing Lender
shall be terminated, (ii) all outstanding Existing Loans not being assigned under clause (i)
above shall be deemed Revolving Credit Loans hereunder and

 

48

 

the Administrative Agent shall make such transfers of funds as are necessary in order
that the outstanding balance of such Revolving Credit Loans together with any Revolving
Credit Loans funded on the Closing Date, are in accordance with the Revolving Credit
Commitment Percentage of the Lenders hereunder, (iii) there shall have been paid in cash in
full all accrued but unpaid interest due on the Existing Loans on the Closing Date, (iv)
there shall have been paid in cash in full all accrued but unpaid fees under the Existing
Credit Agreement due to the Existing Lenders and all other amounts, costs and expenses then
owing to any of the Existing Lenders and/or Wachovia, as administrative agent under the
Existing Credit Agreement, (v) all outstanding Letters of Credit under the Existing Credit
Agreement shall be Letters of Credit hereunder and (vi) all outstanding promissory notes
issued by the Borrower to the Existing Lenders under the Existing Credit Agreement shall be
promptly returned to the Borrower for cancellation.

(i) No Material Adverse Change. No material adverse change or Material Adverse
Effect shall have occurred in the business, operations, financial condition, liabilities
(whether actual or contingent) or properties of the Borrower and its Subsidiaries, taken as
a whole, since December 28, 2008.

(j) Patriot Act. The Borrower and each of the Subsidiary Guarantors shall have
provided to the Administrative Agent and the Lenders the documentation and other information
requested by the Administrative Agent in order to comply with requirements of the Act and
other applicable “Know Your Customer” and anti-laundering rules and regulations.

(k) FIRREA Appraisals. The Administrative Agent shall have received copies of
FIRREA compliant appraisals addressed to the Administrative Agent, including, without
limitation, fair market values, for all real property parcels included as Real Property
Collateral. The value of all Real Property Collateral (supported by the foregoing
appraisals) shall be at least $90,000,000 on the Closing Date.

Section 6.3 Conditions to All Extensions of Credit. The obligations of the Lenders to
make any Extensions of Credit (including the initial Extension of Credit), convert or continue any
Loan and/or the Issuing Lender to issue or extend any Letter of Credit are subject to the
satisfaction of the following conditions precedent on the relevant borrowing, continuation,
conversion, issuance or extension date:

(a) Continuation of Representations and Warranties. The representations and
warranties contained in Article VII shall be true and correct on and as of such borrowing,
continuation, conversion, issuance or extension date with the same effect as if made on and
as of such date, except for any representation and warranty made as of an earlier date,
which representation and warranty shall remain true and correct as of such earlier date.

(b) No Existing Default. No Default or Event of Default shall have occurred
and be continuing (i) on the borrowing, continuation or conversion date with respect to such
Loan or after giving effect to the Loans to be made, continued or converted on such date or
(ii) on the issuance or extension date with respect to such Letter of Credit or after giving
effect to the issuance or extension of such Letter of Credit on such date.

 

49

 

(c) Notices. The Administrative Agent shall have received a Notice of
Borrowing or Notice of Conversion/Continuation, as applicable, from the Borrower in
accordance with Section 2.3(a) or Section 5.2.

(d) Additional Documents. The Administrative Agent shall have received each
additional document, instrument, legal opinion or other item reasonably requested by it.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF THE BORROWER

Section 7.1 Representations and Warranties. To induce the Administrative Agent and
Lenders to enter into this Agreement and to induce the Lenders to make Extensions of Credit, the
Borrower and its Subsidiaries hereby represent and warrant to the Administrative Agent and Lenders
both before and after giving effect to the transactions contemplated hereunder that:

(a) Organization; Power; Qualification. Each of the Borrower and its
Subsidiaries is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation, has the power and authority to own its
properties and to carry on its business as now being and hereafter proposed to be conducted
and is duly qualified and authorized to do business in each jurisdiction in which the
character of its properties or the nature of its business requires such qualification and
authorization, except to the extent that the failure to so qualify or be in good standing
could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. The
jurisdictions in which the Borrower and its Subsidiaries are organized and qualified to do
business as of the Closing Date are described on Schedule 7.1(a).

(b) Ownership. Each Subsidiary of the Borrower as of the Closing Date is
listed on Schedule 7.1(b). As of the Closing Date, the capitalization of the
Borrower and its Subsidiaries consists of the number of shares, authorized, issued and
outstanding, of such classes and series, with or without par value, membership interests, or
other ownership interests described on Schedule 7.1(b). All outstanding shares or
other ownership interests of the Borrower and its Subsidiaries have been duly authorized and
validly issued and are fully paid and nonassessable, with no personal liability attaching to
the ownership thereof, and not subject to any preemptive or similar rights. The
equityholders of the Subsidiaries of the Borrower and the number of shares or other
ownership units owned by each as of the Closing Date are described on Schedule
7.1(b). As of the Closing Date, there are no outstanding stock purchase warrants,
subscriptions, options, securities, instruments or other rights of any type or nature
whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit
the issuance of capital stock, membership interests or other ownership interests of the
Borrower or its Subsidiaries, except as described on Schedule 7.1(b).

 

50

 

(c) Authorization of Agreement, Loan Documents and Borrowing. Each of the
Borrower and its Subsidiaries has the right, power and authority and has taken all necessary
corporate and other action to authorize the execution, delivery and performance of this
Agreement and each of the other Loan Documents to which it is a party in accordance with
their respective terms. This Agreement and each of the other Loan Documents have been duly
executed and delivered by the duly authorized officers of the Borrower and each of its
Subsidiaries party thereto, and each such document constitutes the legal, valid and binding
obligation of the Borrower or its Subsidiary party thereto, enforceable in accordance with
its terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar state or federal debtor relief laws from time to time
in effect which affect the enforcement of creditors’ rights in general and the availability
of equitable remedies.

(d) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The
execution, delivery and performance by the Borrower and its Subsidiaries of the Loan
Documents to which each such Person is a party, in accordance with their respective terms,
the Extensions of Credit hereunder and the transactions contemplated hereby do not and will
not, by the passage of time, the giving of notice or otherwise, (i) require any Governmental
Approval or violate any Applicable Law relating to the Borrower or any of its Subsidiaries,
(ii) conflict with, result in a breach of or constitute a default under the articles of
incorporation, bylaws or other organizational documents of the Borrower or any of its
Subsidiaries or, except as could not reasonably be expected to result in a Material Adverse
Effect, any indenture, agreement or other instrument to which such Person is a party or by
which any of its properties may be bound or any Governmental Approval relating to such
Person, (iii) result in or require the creation or imposition of any Lien upon or with
respect to any property now owned or hereafter acquired by such Person other than Liens
arising under the Loan Documents or (iv) require any consent or authorization of, filing
with, or other act in respect of, an arbitrator or Governmental Authority and no consent of
any other Person is required in connection with the execution, delivery, performance,
validity or enforceability of this Agreement except, in each case, (A) as may be required by
laws affecting the offering and sale of securities generally, (B) filings with the United
States Copyright Office and/or the United States Patent and Trademark Office, (C) filings
under the UCC and recording of the Mortgages and (D) those notices, consents and
authorizations which have been obtained prior to the Closing Date.

(e) Compliance with Law; Governmental Approvals. Each of the Borrower and its
Subsidiaries (i) has all Governmental Approvals required by any Applicable Law for it to
conduct its business, each of which is in full force and effect, is final and not subject to
review on appeal and is not the subject of any pending or, to the best of its knowledge,
threatened attack by direct or collateral proceeding, (ii) is in compliance with each
Governmental Approval applicable to it and in compliance with all other Applicable Laws
relating to it or any of its respective properties and (iii) has timely filed all material
reports, documents and other materials required to be filed by it under all Applicable Laws
with any Governmental Authority and has retained all material records and documents required
to be retained by it under Applicable Law in each case, except as could not reasonably be
expected to result in a Material Adverse Effect.

 

51

 

(f) Tax Returns and Payments. Each of the Borrower and its Subsidiaries has
duly filed or caused to be filed all federal, state, local and other material tax returns
required by Applicable Law to be filed, and has paid prior to delinquency all federal,
state, local and other material taxes, assessments and governmental charges or levies upon
it and its property, income, profits and assets which are due and payable. Such returns
accurately reflect in all material respects all liability for taxes of the Borrower and its
Subsidiaries for the periods covered thereby. There is no ongoing audit or examination or,
to the knowledge of the Borrower, other investigation by any Governmental Authority of the
tax liability of the Borrower and its Subsidiaries that could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. No Governmental
Authority has notified the Borrower or any of its Subsidiaries of any Lien or other claim
against the Borrower or any Subsidiary thereof with respect to unpaid taxes which has not
been discharged or resolved. The charges, accruals and reserves on the books of the
Borrower and any of its Subsidiaries in respect of federal, state, local and other taxes for
all Fiscal Years and portions thereof since the organization of the Borrower and any of its
Subsidiaries are in the judgment of the Borrower adequate, and the Borrower does not
anticipate any additional taxes or assessments for any of such years.

(g) Intellectual Property Matters. Each of the Borrower and its Subsidiaries
owns or possesses rights to use all franchises, licenses, copyrights, copyright
applications, patents, patent rights or licenses, patent applications, trademarks, trademark
rights, service mark, service mark rights, trade names, trade name rights, copyrights and
rights with respect to the foregoing which are required to conduct its business except where
the absence thereof could not reasonably be expected to have a Material Adverse Effect. No
event has occurred which permits, or after notice or lapse of time or both would permit, the
revocation or termination of any such rights, and, to Borrower’s knowledge, neither the
Borrower nor any Subsidiary thereof is liable to any Person for infringement under
Applicable Law with respect to any such rights as a result of its business operations.

(h) Environmental Matters. Except as to matters described in Schedule
7.1(h) and such other matters which could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect:

(i) The properties owned, leased or operated by the Borrower and its
Subsidiaries now do not contain, and to their knowledge have not previously
contained, any Hazardous Materials in amounts or concentrations which (A) constitute
or constituted a violation of applicable Environmental Laws or (B) could give rise
to any liability under applicable Environmental Laws;

(ii) The Borrower, each Subsidiary and such properties and all operations
conducted in connection therewith are in compliance, and have been in compliance,
with all applicable Environmental Laws, and there is no contamination at, under or
about such properties or such operations which could interfere with the continued
operation of such properties or impair the fair saleable value thereof;

 

52

 

(iii) Neither the Borrower nor any Subsidiary thereof has received any notice
of violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters, Hazardous Materials, or compliance with
Environmental Laws, nor does the Borrower or any Subsidiary thereof have knowledge
or reason to believe that any such notice will be received or is being threatened;

(iv) Hazardous Materials have not been transported or disposed of to or from
the properties owned, leased or operated by the Borrower and its Subsidiaries in
violation of, or in a manner or to a location which could give rise to liability
under, Environmental Laws, nor have any Hazardous Materials been generated, treated,
stored or disposed of at, on or under any of such properties in violation of, or in
a manner that could give rise to liability under, any applicable Environmental Laws;

(v) No judicial proceedings or governmental or administrative action is
pending, or, to the knowledge of the Borrower, threatened, under any Environmental
Law to which the Borrower or any Subsidiary thereof is or will be named as a
potentially responsible party with respect to such properties or operations
conducted in connection therewith, nor are there any consent decrees or other
decrees, consent orders, administrative orders or other orders, or other
administrative or judicial requirements outstanding under any Environmental Law with
respect to Borrower, any Subsidiary or such properties or such operations; and

(vi) There has been no release, or to the best of the Borrower’s knowledge,
threat of release, of Hazardous Materials at or from any properties owned, leased or
operated by the Borrower or any Subsidiary, now or in the past, in violation of or
in amounts or in a manner that could give rise to any liability under Environmental
Laws.

(i) ERISA.

(i) As of the Closing Date, neither the Borrower nor any ERISA Affiliate
maintains or contributes to, or has any obligation under, any Employee Benefit Plans
other than those identified on Schedule 7.1(i);

(ii) The Borrower and each ERISA Affiliate is in material compliance with all
applicable provisions of ERISA and the regulations and published interpretations
thereunder with respect to all Employee Benefit Plans except for any required
amendments for which the remedial amendment period as defined in Section 401(b) of
the Code has not yet expired and except where a failure to so comply could not
reasonably be expected to have a Material Adverse Effect. Each Employee Benefit
Plan that is intended to be qualified under Section 401(a) of the Code has been
determined by the Internal Revenue Service to be so qualified, and each trust
related to such plan has been determined to be exempt under Section 501(a) of the
Code except for such plans that have not yet received

 

53

 

determination letters but for which the remedial amendment period for
submitting a determination letter has not yet expired. No liability has been
incurred by the Borrower or any ERISA Affiliate which remains unsatisfied for any
taxes or penalties with respect to any Employee Benefit Plan or any Multiemployer
Plan except for a liability that could not reasonably be expected to have a Material
Adverse Effect;

(iii) As of the Closing Date, no Pension Plan has been terminated for which the
liabilities have not been satisfied in full, nor has any accumulated funding
deficiency (as defined in Section 412 of the Code) been incurred (without regard to
any waiver granted under Section 412 of the Code), nor has any funding waiver from
the Internal Revenue Service been received or requested with respect to any Pension
Plan, nor has the Borrower or any ERISA Affiliate failed to make any contributions
or to pay any amounts due and owing as required by Section 412 of the Code, Section
302 of ERISA or the terms of any Pension Plan prior to the due dates of such
contributions under Section 412 of the Code or Section 302 of ERISA, nor has there
been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of
ERISA with respect to any Pension Plan;

(iv) Except where the failure of any of the following representations to be
correct in all material respects could not reasonably be expected to have a Material
Adverse Effect, neither the Borrower nor any ERISA Affiliate has: (A) engaged in a
nonexempt prohibited transaction described in Section 406 of the ERISA or Section
4975 of the Code, (B) incurred any liability to the PBGC which remains outstanding
other than the payment of premiums and there are no premium payments which are due
and unpaid, (C) failed to make a required contribution or payment to a Multiemployer
Plan, or (D) failed to make a required installment or other required payment under
Section 412 of the Code;

(v) No Termination Event has occurred or is reasonably expected to occur; and

(vi) Except where the failure of any of the following representations to be
correct in all material respects could not reasonably be expected to have a Material
Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary
course of business), lawsuit and/or investigation is existing or, to the knowledge
of the Borrower after due inquiry, threatened concerning or involving any (A)
employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently
maintained or contributed to by the Borrower or any ERISA Affiliate, (B) Pension
Plan or (C) Multiemployer Plan.

(j) Margin Stock. Neither the Borrower nor any Subsidiary thereof is engaged
principally or as one of its activities in the business of extending credit for the purpose
of “purchasing” or “carrying” any “margin stock” (as each such term is defined or used,
directly or indirectly, in Regulation U of the Board of Governors of the Federal Reserve
System). No part of the proceeds of any of the Loans or Letters of Credit will be used for
purchasing or carrying margin stock or for any purpose which violates, or which

 

54

 

would be inconsistent with, the provisions of Regulation T, U or X of such Board of
Governors. If requested by any Lender (through the Administrative Agent) or the
Administrative Agent, the Borrower will furnish to the Administrative Agent and each Lender
a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR
Form U-1 referred to in Regulation U.

(k) Government Regulation. Neither the Borrower nor any Subsidiary thereof is
an “investment company” or a company “controlled” by an “investment company” (as each such
term is defined or used in the Investment Company Act of 1940, as amended) and neither the
Borrower nor any Subsidiary thereof is, or after giving effect to any Extension of Credit
will be, subject to regulation under the Interstate Commerce Act, as amended, or any other
Applicable Law (including, without limitation, the Trading with the Enemy Act, OFAC
regulations and Executive Order 13224 Blocking Property and Prohibiting Transactions with
Persons Who Commit, Threaten to Commit, or Support Terrorism) which limits its ability to
incur or consummate the transactions contemplated hereby.

(l) Material Contracts. Schedule 7.1(l) sets forth a complete and
accurate list of all Material Contracts of the Borrower and its Subsidiaries in effect as of
the Closing Date not listed on any other Schedule hereto; other than as set forth in
Schedule 7.1(l), each such Material Contract is, and after giving effect to the
consummation of the transactions contemplated by the Loan Documents will be, in full force
and effect in accordance with the terms thereof. To the extent requested by the
Administrative Agent, the Borrower and its Subsidiaries have delivered to the Administrative
Agent a true and complete copy of each Material Contract required to be listed on
Schedule 7.1(l) or any other Schedule hereto. Neither the Borrower nor any
Subsidiary (nor, to the knowledge of the Borrower, any other party thereto) is in breach of
or in default under any Material Contract in any material respect.

(m) Employee Relations. Each of the Borrower and its Subsidiaries has a stable
work force in place and is not, as of the Closing Date, party to any collective bargaining
agreement nor has any labor union been recognized as the representative of its employees
except as set forth on Schedule 7.1(m). The Borrower knows of no pending,
threatened or contemplated strikes, work stoppage or other collective labor disputes
involving its employees or those of its Subsidiaries that could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

(n) Burdensome Provisions. Neither the Borrower nor any Subsidiary thereof is
a party to any indenture, agreement, lease or other instrument, or subject to any corporate
or partnership restriction, Governmental Approval or Applicable Law which is so unusual or
burdensome as in the foreseeable future could be reasonably expected to have a Material
Adverse Effect. The Borrower and its Subsidiaries do not presently anticipate that future
expenditures needed to meet the provisions of any statutes, orders, rules or regulations of
a Governmental Authority will be so burdensome as to have a Material Adverse Effect. No
Subsidiary is party to any agreement or instrument or otherwise subject to any restriction
or encumbrance that restricts or limits its ability to make dividend payments or other
distributions in respect of its capital stock to the

 

55

 

Borrower or any Subsidiary or to transfer any of its assets or properties to the
Borrower or any other Subsidiary in each case other than existing under or by reason of the
Loan Documents or Applicable Law.

(o) Financial Statements. The (i) audited Consolidated balance sheet of the
Borrower and its Subsidiaries as of December 28, 2008 and the related audited statements of
income and retained earnings and cash flows for the Fiscal Year then ended and (ii)
unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as of October 4,
2009 and related unaudited interim statements of income and retained earnings, copies of
which have been furnished to the Administrative Agent and each Lender, are complete and
correct in all material respects and fairly present on a Consolidated basis the assets,
liabilities and financial position of the Borrower and its Subsidiaries as at such dates,
and the results of the operations and changes of financial position for the periods then
ended (other than customary year-end adjustments for unaudited financial statements). All
such financial statements, including the related schedules and notes thereto, have been
prepared in accordance with GAAP. As of the Closing Date, the Borrower and its Subsidiaries
have no Debt, obligation or other unusual forward or long-term commitment required by GAAP
to be reflected in the foregoing financial statements or in the notes thereto which is not
fairly reflected in the foregoing financial statements or in the notes thereto.

(p) No Material Adverse Change. Since December 28, 2008, there has been no
material adverse change in the properties, business, operations, or condition (financial or
otherwise) of the Borrower and its Subsidiaries, taken as a whole, and no event has occurred
or condition arisen that could reasonably be expected to have a Material Adverse Effect.

(q) Solvency. As of the Closing Date and after giving effect to each Extension
of Credit made hereunder, the Borrower and each of its Subsidiaries will be Solvent.

(r) Titles to Properties. Schedule 7.1(r) sets forth a list of each
parcel of real property owned or leased by the Borrower or its Subsidiaries as of the
Closing Date. Each of the Borrower and its Subsidiaries has such title to the real property
owned or leased by it as is necessary to the conduct of its business and valid and legal
title to all of its material personal property and assets, including, but not limited to,
those reflected on the balance sheets of the Borrower and its Subsidiaries delivered
pursuant to Section 7.1(o), except those which have been disposed of by the Borrower or its
Subsidiaries subsequent to such date which dispositions have been in the ordinary course of
business or as otherwise expressly permitted hereunder.

(s) Liens. None of the properties and assets of the Borrower or any Subsidiary
thereof is subject to any Lien, except Liens permitted pursuant to Section 11.2. No
financing statement under the Uniform Commercial Code of any state which names the Borrower
or any Subsidiary thereof or any of their respective trade names or divisions as debtor and
which has not been terminated, has been filed in any state or other jurisdiction and neither
the Borrower nor any Subsidiary thereof has signed any such

 

56

 

financing statement or any security agreement authorizing any secured party thereunder
to file any such financing statement, except to perfect those Liens permitted by Section
11.2 hereof.

(t) Debt and Guaranty Obligations. Schedule 7.1(t) is a complete and
correct listing of all Debt and Guaranty Obligations of the Borrower and its Subsidiaries as
of the Closing Date in excess of $1,000,000. The Borrower and its Subsidiaries have
performed and are in compliance in all material respects with all of the terms of such Debt
and Guaranty Obligations and all instruments and agreements relating thereto, and no default
or event of default, or event or condition which with notice or lapse of time or both would
constitute such a default or event of default on the part of the Borrower or any of its
Subsidiaries exists with respect to any such Debt or Guaranty Obligation.

(u) Litigation. Except for matters existing on the Closing Date which are set
forth on Schedule 7.1(u), there are no actions, suits or proceedings pending or, to
the knowledge of the Borrower, threatened against the Borrower or any Subsidiary thereof or
any of their respective properties in any court or before any arbitrator of any kind or
before or by any Governmental Authority for which liability to the Borrower or its
Subsidiaries could reasonably be expected to have a Material Adverse Effect.

(v) Absence of Defaults. No event has occurred or is continuing which
constitutes a Default or an Event of Default, or which constitutes, or which with the
passage of time or giving of notice or both would constitute, a default or event of default
by the Borrower or any Subsidiary thereof under any Material Contract or judgment, decree or
order to which the Borrower or its Subsidiaries is a party or by which the Borrower or its
Subsidiaries or any of their respective properties may be bound or which would require the
Borrower or its Subsidiaries to make any payment thereunder prior to the scheduled maturity
date therefor.

(w) Senior Debt Status. The Obligations of the Borrower and each of its
Subsidiaries under this Agreement and each of the other Loan Documents ranks and shall
continue to rank at least senior in priority of payment to the Senior Subordinated Notes and
all other Subordinated Debt of each such Person and is designated as “Senior Indebtedness”
under all instruments and documents, now or in the future, relating to the Senior
Subordinated Notes and all other Subordinated Debt of such Person.

(x) OFAC. None of the Borrower, any Subsidiary or Subsidiary Guarantor of the
Borrower or, to the knowledge of the Borrower or any Subsidiary thereof, any Affiliate of
the Borrower: (i) is a Sanctioned Person, (ii) has more than 10% of its assets in Sanctioned
Entities, or (iii) derives more than 10% of its operating income from investments in, or
transactions with, Sanctioned Persons or Sanctioned Entities. The proceeds of any Loan will
not be used and have not been used to fund any operations in, finance any investments or
activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity.

(y) Accuracy and Completeness of Information. All written information, reports
and other papers and data produced by or on behalf of the Borrower or any

 

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Subsidiary thereof (other than financial projections, which shall be subject to the
standard set forth in Section 8.1(c)) and furnished to the Lenders were, at the time the
same were so furnished, complete and correct in all material respects to the extent
necessary to give the recipient a true and accurate knowledge of the subject matter. No
document furnished or written statement made to the Administrative Agent or the Lenders by
the Borrower or any Subsidiary thereof in connection with the negotiation, preparation or
execution of this Agreement or any of the Loan Documents contains or will contain any untrue
statement of a fact material to the creditworthiness of the Borrower or its Subsidiaries or
omits or will omit to state a fact necessary in order to make the statements contained
therein not misleading. The Borrower is not aware of any facts which it has not disclosed
in writing to the Administrative Agent having a Material Adverse Effect, or insofar as the
Borrower can now foresee, which could reasonably be expected to have a Material Adverse
Effect.

Section 7.2 Survival of Representations and Warranties, Etc. All representations and
warranties set forth in this Article VII and all representations and warranties contained in any
certificate, or any of the Loan Documents (including, but not limited to, any such representation
or warranty made in or in connection with any amendment thereto) shall constitute representations
and warranties made under this Agreement. All representations and warranties made under this
Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are
expressly made as of a specific date), shall survive the Closing Date and shall not be waived by
the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders
or any borrowing hereunder.

ARTICLE VIII

FINANCIAL INFORMATION AND NOTICES

Until all the Obligations have been paid and satisfied in full and the Commitments terminated,
unless consent has been obtained in the manner set forth in Section 14.11, the Borrower will
furnish or cause to be furnished to the Administrative Agent at the Administrative Agent’s Office
at the address set forth in Section 14.1 and to the Lenders at their respective addresses as set
forth in the Register, or such other office as may be designated by the Administrative Agent and
Lenders from time to time:

Section 8.1 Financial Statements and Projections.

(a) Quarterly Financial Statements. As soon as practicable and in any event
within forty-five (45) days after the end of the first three (3) Fiscal Quarters of each
Fiscal Year (or, if either such date is earlier, on the date of any required public filing
thereof, or five (5) days following any date on which the Borrower may be required by GAAP
to file such statements), an unaudited Consolidated and consolidating balance sheet of the
Borrower and its Subsidiaries as of the close of such Fiscal Quarter and unaudited
Consolidated and consolidating statements of income, retained earnings and cash flows for
the Fiscal Quarter then ended and that portion of the Fiscal Year then ended, including the
notes thereto, all in reasonable detail setting forth in comparative form the corresponding
figures as of the end of and for the corresponding period in the

 

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preceding Fiscal Year and prepared by the Borrower in accordance with GAAP and, if
applicable, containing disclosure of the effect on the financial position or results of
operations of any change in the application of accounting principles and practices during
the period, and certified by the chief financial officer of the Borrower to present fairly
in all material respects the financial condition of the Borrower and its Subsidiaries on a
Consolidated and consolidating basis as of their respective dates and the results of
operations of the Borrower and its Subsidiaries for the respective periods then ended,
subject to normal year end adjustments. Delivery by the Borrower to the Administrative
Agent and the Lenders of the Borrower’s quarterly report to the SEC on Form 10-Q with
respect to any Fiscal Quarter, or the availability of such report on EDGAR Online, within
the period specified above shall be deemed to be compliance by the Borrower with this
Section 8.1(a).

(b) Annual Financial Statements. As soon as practicable and in any event
within ninety (90) days after the end of each Fiscal Year (or, if either such date is
earlier, on the date of any required public filing thereof, or five (5) days following any
date on which the Borrower may be required by GAAP to file such statements), an audited
Consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such
Fiscal Year and audited Consolidated statements of income, retained earnings and cash flows
for the Fiscal Year then ended, including the notes thereto, all in reasonable detail
setting forth in comparative form the corresponding figures as of the end of and for the
preceding Fiscal Year and prepared by an independent certified public accounting firm
approved by the Audit Committee of the Board of Directors of the Borrower and reasonably
acceptable to the Administrative Agent in accordance with GAAP and, if applicable,
containing disclosure of the effect on the financial position or results of operations of
any change in the application of accounting principles and practices during the year, and
accompanied by a report thereon by such certified public accountants that is not qualified
with respect to scope limitations imposed by the Borrower or any of its Subsidiaries or with
respect to accounting principles followed by the Borrower or any of its Subsidiaries not in
accordance with GAAP. Delivery by the Borrower to the Administrative Agent and the Lenders
of the Borrower’s annual report to the SEC on Form 10-K with respect to any Fiscal Quarter,
or the availability of such report on EDGAR Online, within the period specified above shall
be deemed to be compliance by the Borrower with this Section 8.1(b).

(c) Annual Business Plan and Financial Projections. As soon as practicable and
in any event within sixty (60) days after the beginning of each Fiscal Year, a business plan
of the Borrower and its Subsidiaries for the ensuing four (4) Fiscal Quarters and the Fiscal
Year thereafter, such plan to be prepared in accordance with GAAP and to include, on a
quarterly basis, the following: a quarterly operating and capital budget for the ensuing
four (4) Fiscal Quarters, a yearly operating and capital budget for the Fiscal Year
thereafter, a projected income statement, statement of cash flows and balance sheet and a
report containing management’s discussion and analysis of such projections, accompanied by a
certificate from the chief financial officer of the Borrower to the effect that, to the best
of such officer’s knowledge, such projections are good faith estimates (utilizing reasonable
assumptions) of the projected financial condition and operations of the Borrower and its
Subsidiaries for such period.

 

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Section 8.2 Officer’s Compliance Certificate. At each time financial statements are
delivered pursuant to Sections 8.1 (a) or (b) and at such other times as the Administrative Agent
shall reasonably request, a certificate of the chief financial officer or the treasurer of the
Borrower in the form of Exhibit F attached hereto (an “Officer’s Compliance Certificate”).

Section 8.3 Accountants’ Certificate. At each time financial statements are delivered
pursuant to Section 8.1(b), a certificate of the independent public accountants certifying such
financial statements addressed to the Administrative Agent for the benefit of the Lenders:

(a) stating that in making the examination necessary for the certification of such
financial statements, they obtained no knowledge of any Default or Event of Default or, if
such is not the case, specifying such Default or Event of Default and its nature and period
of existence; and

(b) including the calculations prepared by such accountants required to establish
whether or not the Borrower and its Subsidiaries are in compliance with the financial
covenants set forth in Article X hereof as at the end of each respective period.

Section 8.4 Other Reports.

(a) Promptly upon receipt thereof, copies of all reports, if any, submitted to the
Borrower or its Board of Directors by its independent public accountants in connection with
their auditing function, including, without limitation, any management report and any
management responses thereto;

(b) Such other information regarding the operations, business affairs and financial
condition of the Borrower or any of its Subsidiaries as the Administrative Agent or any
Lender may reasonably request; and

Section 8.5 Notice of Litigation and Other Matters. Prompt (but in no event later
than ten (10) days after an officer of the Borrower obtains knowledge thereof) telephonic and
written notice of:

(a) the commencement of all proceedings and investigations by or before any
Governmental Authority and all actions and proceedings in any court or before any arbitrator
against or involving the Borrower or any Subsidiary thereof or any of their respective
properties, assets or businesses which in any such case could reasonably be expected to
result in a Material Adverse Effect;

(b) any notice of any violation received by the Borrower or any Subsidiary thereof from
any Governmental Authority including, without limitation, any notice of violation of
Environmental Laws which in any such case could reasonably be expected to have a Material
Adverse Effect;

 

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(c) any labor controversy that has resulted in, or threatens to result in, a strike or
other work action against the Borrower or any Subsidiary thereof that could reasonably be
expected to have a Material Adverse Effect;

(d) any attachment, judgment, Lien, levy or order exceeding $5,000,000 that may be
assessed against or threatened in writing against the Borrower or any Subsidiary thereof;

(e) (i) any Default or Event of Default, (ii) the occurrence or existence of any event
or circumstance that foreseeably will become a Default or Event of Default or (iii) any
event which constitutes or which with the passage of time or giving of notice or both would
constitute a default or event of default under any Material Contract to which the Borrower
or any of its Subsidiaries is a party or by which the Borrower or any Subsidiary thereof or
any of their respective properties may be bound;

(f) (i) any unfavorable determination letter from the Internal Revenue Service
regarding the qualification of an Employee Benefit Plan under Section 401(a) of the Code
(along with a copy thereof), (ii) all notices received by the Borrower or any ERISA
Affiliate of the PBGC’s intent to terminate any Pension Plan or to have a trustee appointed
to administer any Pension Plan, (iii) all notices received by the Borrower or any ERISA
Affiliate from a Multiemployer Plan sponsor concerning the imposition or amount of
withdrawal liability pursuant to Section 4202 of ERISA and (iv) the Borrower obtaining
knowledge or reason to know that the Borrower or any ERISA Affiliate has filed or intends to
file a notice of intent to terminate any Pension Plan under a distress termination within
the meaning of Section 4041(c) of ERISA;

(g) any event which makes any of the representations set forth in Section 7.1
inaccurate in any respect;

(h) a copy of any notice of any default or event of default, acceleration, redemption,
request for a material waiver, request for a material amendment or any other notice of a
material event delivered to or received by any Person (including, without limitation, any
trustee or noteholder) in connection with the Senior Subordinated Notes or any other
Subordinated Debt.

Section 8.6 Accuracy of Information. All written information, reports, statements and
other papers and data furnished by or on behalf of the Borrower to the Administrative Agent or any
Lender whether pursuant to this Article VIII or any other provision of this Agreement, or any of
the Security Documents, shall be, at the time the same is so furnished, comply with the
representations and warranties set forth in Section 7.1(y).

 

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ARTICLE IX

AFFIRMATIVE COVENANTS

Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner provided for in Section 14.11, the
Borrower will, and will cause each of its Subsidiaries to:

Section 9.1 Preservation of Corporate Existence and Related Matters. Except as
permitted by Section 11.4, preserve and maintain its separate corporate, limited liability company
or partnership existence and all rights, franchises, licenses and privileges necessary to the
conduct of its business, and qualify and remain qualified as a foreign corporation, limited
liability company or limited partnership and authorized to do business in each jurisdiction where
the nature and scope of its activities require it to so qualify under Applicable Law except where
the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

Section 9.2 Maintenance of Property. In addition to the requirements of any of the
Security Documents, protect and preserve in accordance with sound business practices all properties
useful in and material to its business, including copyrights, patents, trade names, service marks
and trademarks; maintain in accordance with sound business practices all buildings, equipment and
other tangible real and personal property useful in and material to its business; and from time to
time make or cause to be made all renewals, replacements and additions to such property necessary
for the conduct of its business, so that the business carried on in connection therewith may be
conducted at all times in a commercially reasonable manner in accordance with prudent business
practices.

Section 9.3 Insurance. Maintain insurance with financially sound and reputable
insurance companies against such risks and in such amounts as are customarily maintained by similar
businesses (including hazard and business interruption coverage) and as are required by Applicable
Law and as are required by any Security Documents, and on the Closing Date and from time to time
thereafter deliver to the Administrative Agent upon its request a detailed list of the insurance
then in effect, stating the names of the insurance companies, the amounts and rates of the
insurance, the dates of the expiration thereof and the properties and risks covered thereby.

Section 9.4 Accounting Methods and Financial Records. Maintain a system of
accounting, and keep such books, records and accounts (which shall be true and complete in all
material respects) as may be required or as may be necessary to permit the preparation of financial
statements in accordance with GAAP and in compliance with the regulations of any Governmental
Authority having jurisdiction over it or any of its properties.

Section 9.5 Payment and Performance of Obligations. Pay and perform all Obligations
or Subsidiary Guaranteed Obligations, as applicable, under this Agreement and the other Loan
Documents, and pay or perform (a) all taxes, assessments and other governmental charges that may be
levied or assessed upon it or any of its property, and (b) all other indebtedness, obligations and
liabilities in accordance with customary trade practices; provided, that the Borrower or
such Subsidiary may contest any item described in clauses (a) or (b) of this

 

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Section 9.5 in good faith so long as adequate reserves are maintained with respect thereto in
accordance with GAAP.

Section 9.6 Compliance with Laws and Approvals. Observe and remain in compliance in
all material respects with all Applicable Laws and maintain in full force and effect all material
Governmental Approvals, in each case applicable to the conduct of its business.

Section 9.7 Environmental Laws. In addition to and without limiting the generality of
Section 9.6, (a) comply in all material respects with, and use commercially reasonable efforts to
ensure such compliance by all tenants and subtenants with, all applicable Environmental Laws and
obtain and comply with and maintain, and use commercially reasonable efforts to ensure that all
tenants and subtenants, if any, obtain and comply with and maintain, in all material respects, any
and all licenses, approvals, notifications, registrations or permits required by applicable
Environmental Laws, (b) conduct and complete all investigations, studies, sampling and testing, and
all remedial, removal and other actions required under Environmental Laws, and promptly comply with
all lawful orders and directives of any Governmental Authority regarding Environmental Laws, and
(c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and their
respective parents, Subsidiaries, Affiliates, employees, agents, officers and directors, from and
against any claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or
in any way relating to the presence of Hazardous Materials, or the violation of, noncompliance with
or liability under any Environmental Laws applicable to the operations of the Borrower or any such
Subsidiary, or any orders, requirements or demands of Governmental Authorities related thereto,
including, without limitation, reasonable attorney’s and consultant’s fees, investigation and
laboratory fees, response costs, court costs and litigation expenses, except to the extent that any
of the foregoing directly result from the gross negligence or willful misconduct of the party
seeking indemnification therefor.

Section 9.8 Compliance with ERISA. In addition to and without limiting the generality
of Section 9.6, (a) except where the failure to so comply could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect, (i) comply with all material
applicable provisions of ERISA and the regulations and published interpretations thereunder with
respect to all Employee Benefit Plans, (ii) not take any action or fail to take action the result
of which could be a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any
prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and
(iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability
under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section
4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s
request such additional information about any Employee Benefit Plan as may be reasonably requested
by the Administrative Agent to the extent that the furnishing of such information does not violate
ERISA, the Health Insurance Portability and Accountability Act of 1996 or any other Applicable Law.

Section 9.9 Compliance with Agreements. Except to the extent that non-compliance,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, comply with each term, condition and provision of all leases,

 

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agreements and other instruments entered into in the conduct of its business including,
without limitation, any Material Contract.

Section 9.10 Visits and Inspections. Permit representatives of the Administrative
Agent or any Lender, from time to time, to visit and inspect its properties; inspect, audit and
make extracts from its books, records and files, including, but not limited to, management letters
prepared by independent accountants; and discuss with its principal officers, and its independent
accountants, its business, assets, liabilities, financial condition, results of operations and
business prospects. Unless a Default or Event of Default has occurred and is continuing, the
representatives of the Administrative Agent or any Lender will provide the Borrower with advance
notice of such visits and inspections, and will visit and inspect during the Borrower’s normal
business hours.

Section 9.11 Additional Subsidiaries

(a) Additional Domestic Subsidiaries. Within thirty (30) days after the
creation or acquisition of any Domestic Subsidiary of the Borrower (excluding any
Franchisees other than those Franchisees that are or become wholly-owned by the Borrower)
with assets in excess of $500,000, cause to be executed and delivered to the Administrative
Agent (i) duly executed joinder agreements in form and substance reasonably satisfactory to
the Administrative Agent joining such Subsidiary to the Collateral Agreement, the Collateral
Assignment Agreement and any other applicable Security Documents, (ii) updated Schedules
7.1(a), 7.1(b) and 7.1(r) reflecting the creation or acquisition of such
Subsidiary, (iii) a Subsidiary Guaranty Agreement duly executed and delivered by such
Subsidiary, (iv) favorable legal opinions addressed to the Administrative Agent and Lenders
in form and substance reasonably satisfactory thereto with respect to such joinder
agreement, (v) original stock or other certificates and stock or other transfer powers
evidencing the ownership interests of the Borrower in such Subsidiary, (vi) all documents
required by Section 9.11(c), and (vii) any other documents and certificates as may be
requested by the Administrative Agent.

(b) Additional Foreign Subsidiaries. Notify the Administrative Agent at the
time that any Person becomes a first tier Foreign Subsidiary of the Borrower (excluding any
Franchisees), and promptly thereafter (and in any event within thirty (30) days), cause (i)
the Borrower or applicable Subsidiary to deliver to the Administrative Agent a supplement to
the Security Documents pledging sixty-five percent (65%) of the total outstanding ownership
interest or capital stock of such new Foreign Subsidiary and a consent thereto executed by
such new Foreign Subsidiary (including, without limitation, if applicable, original stock
certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of any
relevant foreign jurisdiction) evidencing the capital stock of such new Foreign Subsidiary,
together with an appropriate undated stock power for each certificate duly executed in blank
by the registered owner thereof), (ii) such Person to deliver to the Administrative Agent
documents of the types referred to in clauses (ii) and (iii) of Section 6.2(b) and favorable
opinions of counsel to such Person (which shall cover, among other things, the legality,
validity, binding effect and enforceability of the documentation referred to in clauses (i)
and (ii)), and (iii) such Person to deliver to the Administrative Agent such other documents
and closing

 

64

 

certificates as may be reasonably requested by the Administrative Agent, all in form,
content and scope reasonably satisfactory to the Administrative Agent.

(c) Real Property Substitutions. It is understood and agreed that from time to
time, the Borrower may, at any time at its option, substitute real property parcels
comprising Real Property Collateral with other non-Collateral real property parcels;
provided that:

(i) On an aggregate basis (per such substitution) such substituted real
property parcels shall be of equal or greater value (as evidenced by the appraisals
required below) as the Real Property Collateral to be released; and

(ii) prior to each such substitution, the Borrower or its direct and indirect
Subsidiaries (excluding any SRLS Entity and any Franchisees) shall, with respect to
the applicable substitution property, cause to be executed and delivered to the
Administrative Agent (A) Mortgages (unless otherwise agreed by the Administrative
Agent and the Required Lenders), (B) an updated Schedule 7.1(r) together
with title insurance policies, copies of title exceptions, flood surveys, property
surveys, environmental assessments, FIRREA compliant appraisals and any other
related real property documentation, all with respect to the real property parcels
to be substituted and all in form and content reasonably acceptable to the
Administrative Agent and (C) an updated Schedule 7.1(h) in form and content
reasonably acceptable to the Administrative Agent.

(d) Additional Subsidiary Guarantors. Notwithstanding anything to the contrary
contained herein, in the event that any Subsidiary shall guaranty the payment or performance
of the Senior Subordinated Notes (or any other Debt permitted pursuant to Section 11.1), the
Borrower shall cause such Subsidiary to immediately execute a joinder to the Subsidiary
Guaranty Agreement and the Security Documents described in Section 9.11(a) and to deliver
all of the other instruments, documents, certificates and opinions required pursuant to
Section 9.11(a).

Section 9.12 Use of Proceeds. The Borrower shall use the proceeds of the Extensions
of Credit (a) to refinance Debt under the Existing Credit Agreement, (b) for general corporate
purposes of the Borrower and the Subsidiary Guarantors, including, without limitation, working
capital, capital expenditures in the ordinary course of business, Permitted Acquisitions and
redemptions, repurchases and dividends permitted under Section 11.6(c) of this Agreement, and (c)
to pay fees and expenses incurred in connection with the transactions contemplated herein.

Section 9.13 Conduct of Business. Engage only in businesses in substantially the same
fields as the businesses conducted on the Closing Date.

Section 9.14 Further Assurances. Make, execute and deliver all such additional and
further acts, things, deeds and instruments as the Administrative Agent or any Lender (through the
Administrative Agent) may reasonably require to document and consummate the transactions
contemplated hereby and to vest completely in and insure the Administrative Agent

 

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and the Lenders their respective rights under this Agreement, the Letters of Credit and the
other Loan Documents.

ARTICLE X

FINANCIAL COVENANTS

Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner set forth in Section 14.11, the Borrower
and its Subsidiaries on a Consolidated basis will not:

Section 10.1 Maximum Adjusted Debt to EBITDAR Ratio. As of any Fiscal Quarter end,
permit the ratio of (a) Adjusted Debt on such date (less any cash in excess of $5,000,000
existing on the Consolidated balance sheet on such date) to (b) EBITDAR for the period of four (4)
consecutive Fiscal Quarters ending on or immediately prior to such date to be greater than 5.25 to
1.00.

Section 10.2 Maximum Senior Secured Leverage Ratio. As of any Fiscal Quarter end,
permit the ratio of (a) Senior Secured Debt on such date (less any cash in excess of
$5,000,000 existing on the Consolidated balance sheet on such date) to (b) EBITDA for the period of
four (4) consecutive Fiscal Quarters ending on or immediately prior to such date to be greater than
1.25 to 1.00; provided, however, that for purposes of calculating compliance with this
financial covenant, EBITDA for the four (4) consecutive Fiscal Quarter period ending on or
immediately prior to such date shall be reduced to reflect rental expense associated with any
sale-leaseback transaction permitted hereunder on a pro forma basis.

Section 10.3 Minimum Fixed Charge Coverage Ratio. As of any Fiscal Quarter end,
permit the ratio of (a) (i) EBITDAR for the period of four (4) consecutive Fiscal Quarters ending
on or immediately prior to such date, minus (ii) Maintenance Capital Expenditures for the period of
four (4) consecutive Fiscal Quarters ending on or immediately prior to such date to (b) (i) Rental
Expense for the period of four (4) consecutive Fiscal Quarters ending on or immediately prior to
such date (provided, however, that for purposes of calculating compliance with this
Section 10.3, Rental Expense for the four (4) consecutive Fiscal Quarter period ending on such date
shall be increased to include rental expense associated with any sale-leaseback transaction
permitted hereunder on a pro forma basis), plus (ii) Interest Expense for the
period of four (4) consecutive Fiscal Quarters ending on or immediately prior to such date, plus
(iii) Scheduled Principal Repayments for the period of four (4) consecutive Fiscal Quarters ending
on or immediately prior to such date, plus (iv) dividends or similar distributions that are paid in
cash during the period of four (4) consecutive Fiscal Quarters ending on or immediately prior to
such date, plus (v) Consolidated Cash Taxes for the period of four (4) consecutive Fiscal Quarters
ending on or immediately prior to such date, to be less than 1.25 to 1.00.

Section 10.4 Maximum Expansion Capital Expenditures. Permit the aggregate amount of
all Expansion Capital Expenditures (a) in Fiscal Year 2010 to exceed fifteen percent (15%) of
EBITDA for Fiscal Year 2009 and (b) in Fiscal Year 2011 and each Fiscal Year thereafter, to exceed
thirty percent (30%) of EBITDA for the immediately preceding Fiscal Year.

 

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ARTICLE XI

NEGATIVE COVENANTS

Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner set forth in Section 14.11, the Borrower
will not and will not permit any of its Subsidiaries to:

Section 11.1 Limitations on Debt. Create, incur, assume or suffer to exist any Debt
except:

(a) the Obligations (excluding Hedging Obligations permitted pursuant to Section
11.1(b));

(b) Debt incurred in connection with a Hedging Agreement with a counterparty and upon
terms and conditions (including interest rate) reasonably satisfactory to the Administrative
Agent; provided, that any counterparty that is a Lender shall be deemed satisfactory
to the Administrative Agent.

(c) Debt existing on the Closing Date and not otherwise permitted under this Section
11.1, as set forth on Schedule 7.1(t), and the renewal, refinancing, extension and
replacement (but not the increase in the aggregate principal amount) thereof;

(d) purchase money Debt of the Borrower and its Subsidiaries;

(e) unsecured Debt of the Borrower and the Subsidiary Guarantors not otherwise
permitted hereunder in an aggregate amount not to exceed Twenty-Five Million Dollars
($25,000,000) on any date of determination;

(f) the Senior Subordinated Notes and any refinancing of the Senior Subordinated Notes
with senior unsecured notes (which may or may not be subordinated); provided that,
with respect to any such refinancing, (A) no Default or Event of Default shall have occurred
and be continuing and would be caused by such refinancing, (B) the Administrative Agent
shall have received satisfactory written evidence that the Borrower would be in compliance
with all covenants contained in this Agreement on a pro forma basis after
giving effect to any such refinancing, (C) the amount of any such refinancing shall not
exceed the aggregate outstanding principal amount of the Senior Subordinated Notes at the
time of such refinancing 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, (D) the final maturity date of such refinancing shall not be prior to the
Revolving Credit Maturity Date, (E) such refinanced Debt shall rank no higher than pari
passu with the Obligations and shall be unsecured, (F) the terms relating to principal
amount (such as amortization), and other material terms taken as a whole, of any such
refinancing, and of any agreement entered into and of any instrument issued in connection
therewith, are no less favorable in any material respect (other than with respect to
subordination) to the Credit Parties or the Lenders than the terms of the Senior
Subordinated Notes and the interest rate applicable

 

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to any such refinancing does not exceed the then applicable market interest rate and
(G) shall otherwise be issued on terms and conditions reasonably satisfactory to the
Administrative Agent;

(g) other Subordinated Debt; provided, however, (i) that no Default or Event of
Default shall have occurred and be continuing and would be caused by the issuance of such
Subordinated Debt and (ii) the Administrative Agent shall have received satisfactory written
evidence that the Borrower would be in compliance with all covenants contained in this
Agreement on a pro forma basis after giving effect to the issuance of any
such Subordinated Debt;

(h) Guaranty Obligations (including, without limitation, the Subsidiary Guaranteed
Obligations) in favor of the Administrative Agent for the benefit of the Administrative
Agent and the Lenders;

(i) Guaranty Obligations with respect to Debt permitted pursuant to subsections (a)
through (g), (m) and (n) of this Section 11.1;

(j) Guaranty Obligations with respect to Operating Leases of the Subsidiary Guarantors;

(k) Guaranty Obligations with respect to Debt of (i) Franchisees of the Borrower or
(ii) any SRLS Entities; provided, that the aggregate outstanding amount of all such
Guaranty Obligations permitted under this Section 11.1(k) plus the aggregate amount
of all Permitted Acquisitions permitted under Section 11.3(c) hereunder plus the
aggregate outstanding amount of all investments (other than Permitted Acquisitions)
permitted under Section 11.3(c) hereunder plus the aggregate amount of all sales
permitted under Section 11.5(j) hereunder shall not exceed Twenty Million Dollars
($20,000,000) in the aggregate during the term of the Credit Facility;

(l) Debt owed by any Subsidiary Guarantor to the Borrower, by the Borrower to any
Subsidiary Guarantor, or by any Subsidiary Guarantor to another Subsidiary Guarantor;

(m) Debt of the Borrower and its Subsidiaries incurred in connection with Capital
Leases in an aggregate amount not to exceed Ten Million Dollars ($10,000,000) per calendar
year; and

(n) Debt of the Borrower and the Subsidiary Guarantors secured by non-Collateral assets
in an aggregate amount not to exceed Fifty Million Dollars ($50,000,000) on any date of
determination;

provided, that no agreement or instrument with respect to Debt permitted to be incurred by
this Section shall restrict, limit or otherwise encumber (by covenant or otherwise) the ability of
any Subsidiary of the Borrower to make any payment to the Borrower or any of the Subsidiary
Guarantors (in the form of dividends, intercompany advances or otherwise) for the purpose of
enabling the Borrower to pay the Obligations; provided, further, that
notwithstanding any of the foregoing, no SRLS Entity shall be permitted to incur any Guaranty
Obligations.

 

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Section 11.2 Limitations on Liens. Create, incur, assume or suffer to exist, any Lien
on or with respect to any of its assets or properties (including, without limitation, shares of
capital stock or other ownership interests), real or personal, whether now owned or hereafter
acquired, except:

(a) Liens for taxes, assessments and other governmental charges or levies (excluding
any Lien imposed pursuant to any of the provisions of ERISA or Environmental Laws) not yet
due or as to which the period of grace (not to exceed thirty (30) days), if any, related
thereto has not expired or which are being contested in good faith and by appropriate
proceedings if adequate reserves are maintained to the extent required by GAAP;

(b) the claims of materialmen, mechanics, carriers, warehousemen, processors or
landlords for labor, materials, supplies or rentals incurred in the ordinary course of
business, (i) which are not overdue for a period of more than thirty (30) days or (ii) which
are being contested in good faith and by appropriate proceedings;

(c) Liens consisting of deposits or pledges made in the ordinary course of business in
connection with, or to secure payment of, obligations under workers’ compensation,
unemployment insurance or similar legislation;

(d) Liens constituting encumbrances in the nature of zoning restrictions, easements and
rights or restrictions of record on the use of real property, which in the aggregate are not
substantial in amount and which do not, in any case, materially detract from the value of
such property or materially impair the use thereof in the ordinary conduct of business;

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

(f) Liens not otherwise permitted by this Section 11.2 and in existence on the Closing
Date and described on Schedule 11.2;

(g) Liens securing Debt permitted under Section 11.1(d) and Section 11.1(m);
provided that (i) such Liens shall be created within six (6) months from the date of
the acquisition or lease of the related asset, (ii) such Liens do not at any time encumber
any property other than the property financed by such Debt, (iii) the amount of Debt secured
thereby is not increased and (iv) the principal amount of Debt secured by any such Lien
shall at no time exceed one hundred percent (100%) of the original purchase price or lease
payment amount of such property at the time it was acquired;

(h) Liens on real property incurred in connection with leases permitted by Section
11.5(l);

(i) Liens on non-Collateral assets incurred in accordance with Section 11.1(n); and

 

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(j) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 12.1(n) or securing appeal or other surety bonds related to such
judgments.

Section 11.3 Limitations on Loans, Advances, Investments and Acquisitions. Purchase,
own, invest in or otherwise acquire, directly or indirectly, any capital stock, interests in any
partnership or joint venture (including, without limitation, the creation or capitalization of any
Subsidiary), evidence of Debt or other obligation or security, substantially all or a portion of
the business or assets of any other Person or any other investment or interest whatsoever in any
other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions
of credit to, or any investment in cash or by delivery of property in, any Person except:

(a) investments (i) in Subsidiaries existing on the Closing Date, (ii)in Subsidiaries
(other than the SRLS Entities and any Franchisees) formed or acquired after the Closing Date
so long as the Borrower and the Subsidiaries (other than the SRLS Entities and any
Franchisees) comply with all applicable provisions of this Credit Agreement (including,
without limitation, Section 9.11), (iii) loans made pursuant to Section 11.1(l) hereof, and
(iv) the other loans, advances and investments described on Schedule 11.3 existing
on the Closing Date;

(b) investments in (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency thereof maturing within one year
from the date of acquisition thereof, (ii) commercial paper, variable or fixed rate notes
maturing no more than six (6) months from the date of acquisition thereof and issued by, or
guaranteed by, a domestic corporation rated A-1 (or the equivalent thereof) or better by
Standard & Poor’s or P-1 (or the equivalent thereof) or better by Moody’s, (iii)
certificates of deposit maturing no more than one year from the date of creation thereof
issued by (A) any of the Lenders or (B) commercial banks incorporated under the laws of the
United States of America, each having combined capital, surplus and undivided profits of not
less than $500,000,000 and having a rating of “A” or better by a nationally recognized
rating agency; provided, that, in each case, the aggregate amount invested in such
certificates of deposit shall not at any time exceed $10,000,000 for any one such
certificate of deposit and $20,000,000 for any one such bank, (iv)time deposits maturing no
more than thirty (30) days from the date of creation thereof with commercial banks or
savings banks or savings and loan associations each having membership either in the FDIC or
the deposits of which are insured by the FDIC and in amounts not exceeding the maximum
amounts of insurance thereunder, (v) repurchase agreements with a Lender or a bank or trust
company or a recognized securities dealer having capital and surplus in excess of
$500,000,000 for direct obligations issued by or fully guaranteed by the United States of
America or (vi) money-market funds; provided that such money-market funds shall be
rated AAA- (or the equivalent thereof) or better by Standard & Poor’s (such investments
described in items (i) through (vi) above, “Cash Equivalents”);

(c) investments by the Borrower or any of the Subsidiary Guarantors in the form of
acquisitions of a substantially similar business or line of business (whether by the
acquisition of capital stock, assets or any combination thereof) of any other Person (each,

 

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a “Permitted Acquisition”) and other loans, investments and advances by the Borrower
or any of the Subsidiary Guarantors in (i) Franchisees of the Borrower or (ii) any SRLS
Entities; provided, however, that the aggregate amount of all such Permitted
Acquisitions permitted under this Section 11.3(c) plus the aggregate outstanding
amount of all loans, investments and advances (other than Permitted Acquisitions) permitted
under this Section 11.3(c) plus the aggregate outstanding amount of all Guaranty
Obligations permitted under Section 11.1(k) hereunder plus the aggregate amount of
all sales permitted under Section 11.5(j) hereunder shall not exceed Twenty Million Dollars
($20,000,000) in the aggregate during the term of the Credit Facility; provided
further, however, that any such investment or other acquisition of equity of a
Franchisee resulting in the Borrower owning one hundred percent (100%) of the assets of such
Franchisee shall be excluded from the foregoing aggregate dollar limitation so long as the
Borrower shall comply with the applicable provisions of Section 9.11 with respect to such
Franchisee;

(d) Hedging Agreements permitted pursuant to Section 11.1;

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

(f) other loans, investments and advances in an aggregate amount not to exceed $500,000
on any date of determination; and

(g) investments in “rabbi trusts” made by the Borrower or any Subsidiary Guarantor in
connection with executive deferred compensation arrangements entered into by the Borrower or
such Subsidiary Guarantor in the ordinary course of business consistent with past practice.

Section 11.4 Limitations on Mergers and Liquidation. Merge, consolidate or enter into
any similar combination with any other Person or liquidate, wind-up or dissolve itself (or suffer
any liquidation or dissolution) except:

(a) any Subsidiary of the Borrower may be merged or consolidated with or into the
Borrower (provided that the Borrower shall be the continuing or surviving Person) or with or
into any Subsidiary Guarantor (provided that the Subsidiary Guarantor shall be the
continuing or surviving Person);

(b) any Subsidiary of the Borrower may merge into the Person such Subsidiary was formed
to acquire in connection with a Permitted Acquisition; provided that the surviving
entity shall promptly execute and deliver such agreements and documents as may be required
pursuant to Section 9.11 or such other documents evidencing continuing guaranty
and/or security interests as may be requested by the Administrative Agent.

(c) any Subsidiary of the Borrower may wind-up into the Borrower or any Subsidiary
Guarantor and any Foreign Subsidiary of the Borrower may wind-up into the Borrower or any
Subsidiary Guarantor.

 

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Section 11.5 Limitations on Sale of Assets. Convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets (including, without limitation, the
sale of any receivables and leasehold interests and any sale-leaseback or similar
transaction), whether now owned or hereafter acquired except:

(a) the sale of inventory in the ordinary course of business;

(b) the sale of obsolete assets no longer used or usable in the business of the
Borrower or any of its Subsidiaries;

(c) the transfer of assets to the Borrower or any Subsidiary Guarantor of the Borrower
pursuant to Section 11.4;

(d) the sale or discount without recourse of accounts receivable arising in the
ordinary course of business in connection with the compromise or collection thereof;

(e) the disposition of any Hedging Agreement;

(f) [Intentionally Omitted];

(g) sales by Stoney River Management Company, Inc. of up to 6% of the membership
interests in each of the SRLS Entities, to the general manager of each such entity pursuant
to, and in accordance with, the terms and provisions set forth in each such entity’s
operating agreement;

(h) [Intentionally Omitted];

(i) [Intentionally Omitted];

(j) sales of assets to Franchisees or any SRLS Entities; provided, that the
aggregate amount of all such sales permitted under this Section 11.5(j) plus the
aggregate outstanding amount of all Guaranty Obligations permitted under Section 11.1(k)
hereunder plus the aggregate amount of all Permitted Acquisitions permitted under
Section 11.3(c) hereunder plus the aggregate outstanding amount of all investments
(other than Permitted Acquisitions) permitted under Section 11.3(c) hereunder shall not
exceed Twenty Million Dollars ($20,000,000) in the aggregate during the term of the Credit
Facility;

(k) sales of equipment made in connection with equipment sale-leaseback transactions
provided that (i) no Default or Event of Default has occurred and is continuing both before
and after giving effect to such sale-leaseback transaction and (ii) the Borrower is in
compliance with all covenants contained in this Agreement on a pro forma
basis after giving effect to such sale-leaseback transaction;

(l) leases of restaurant properties to Persons in order to facilitate the sale of
alcoholic beverages at such restaurant properties, which leases shall be on terms and
conditions reasonably satisfactory to the Administrative Agent; provided that no
Default or Event of Default has occurred, is continuing, or would be caused thereby;
provided

 

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further that neither the Borrower nor any Subsidiary thereof shall
be party to more than five (5) such leases at any time during the term of the Credit
Facility;

(m) sales of real property subject to a Mortgage (including sale-leaseback
transactions) and sales of other assets in which the security interest of the Administrative
Agent is (or is intended to be) perfected in an amount not to exceed Ten Million Dollars
($10,000,000) during the term of the Credit Facility; provided that (i) no Default
or Event of Default has occurred, is continuing, or would be caused thereby, (ii) the
Borrower shall have demonstrated to the Administrative Agent pro forma
compliance with each covenant contained in, and in the manner set forth in, Article X for
all asset sales exceeding $2,500,000 in the aggregate in any Fiscal Year (which shall be
evidenced by an Officer’s Compliance Certificate, in form and substance reasonably
satisfactory to the Administrative Agent, delivered to the Administrative Agent prior to
such asset sale), and (iii) substitutions of Real Property Collateral (as contemplated in
Section 9.11) shall not be deemed to utilize this Section 11.5(m) (provided, that
substituted real property moved from Collateral to non-Collateral status shall be subject to
the asset sale limitations set forth in Section 11.5(n) below and other limitations set
forth herein);

(n) sales (including sale-leaseback transactions) of (i) real property not subject to a
Mortgage, (ii) Equipment (as defined in the Collateral Agreement) and (iii) Inventory (as
defined in the Collateral Agreement and excluding sales of inventory otherwise permitted
pursuant to Section 11.5(a)) in an aggregate amount not to exceed Thirty Million Dollars
($30,000,000) during any Fiscal Year and Fifty Million Dollars ($50,000,000) during the term
of the Credit Facility;

(o) ordinary course sales of Cash Equivalents in connection with 11.3(b) and made in
accordance with the Borrower’s past practices; and

(p) the transfer of assets owned by a Subsidiary or a Subsidiary Guarantor to the
Borrower or a Subsidiary Guarantor; provided that the Borrower and each such
transferee shall ensure compliance with the provisions of the Security Documents and shall
otherwise execute such agreements and other documents as may be requested by the
Administrative Agent in connection with the maintenance of perfected security interests in
favor of the Administrative Agent and the Lenders.

Upon the consummation of sales made pursuant to the above Section 11.5, and upon the request
of the Borrower, the Administrative Agent and the Lenders will release their liens on the
applicable property and the Administrative Agent shall execute such documents as may be necessary
to evidence such releases, all such documents to be in form and substance satisfactory to the
Administrative Agent.

Section 11.6 Limitations on Dividends and Distributions. Declare or pay any dividends
upon any of its capital stock or any other ownership interests; purchase, redeem, retire or
otherwise acquire, directly or indirectly, any shares of its capital stock or other ownership
interests, or make any distribution of cash, property or assets among the holders of shares of its
capital stock or other ownership interests, or make any change in its capital structure, except:

 

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(a) the Borrower or any Subsidiary may pay dividends in shares of its own capital
stock, membership interests, or other ownership units;

(b) any Subsidiary may pay cash dividends or dividends in property to the Borrower or
to its parent Subsidiary;

(c) so long as no Default or Event of Default has occurred or would be caused thereby,
and the Borrower is in pro forma compliance with the covenants set forth in
Article X hereof, the Borrower may redeem and repurchase shares of its stock pursuant to a
repurchase program authorized from time to time by its Board of Directors and/or declare and
make cash dividend payments, in an aggregate amount over the term of the Credit Facility
(for all such redemptions, repurchases and dividends) not to exceed Ten Million Dollars
($10,000,000) plus fifty percent (50%) of Cumulative Net Income; provided that all
such stock so repurchased shall be immediately retired by the Borrower and shall not be
retained as treasury stock (or any equivalent thereof); and

(d) the Borrower may accept shares of its stock owned by the applicable optionee or
employee (i) in payment of the exercise price of stock options or (ii) to satisfy tax
withholding requirements in respect of equity incentives in the form of restricted stock
awards and stock options, in each case, granted to employees of the Borrower or its
Subsidiaries by the Borrower’s board of directors or a committee thereof.

Section 11.7 Limitations on Exchange and Issuance of Ownership Interests. Issue, sell
or otherwise dispose of any class or series of capital stock or other ownership interests that, by
its terms or by the terms of any security into which it is convertible or exchangeable, is, or upon
the happening of an event or passage of time would be, (a) convertible or exchangeable into Debt or
(b) required to be redeemed or repurchased, including at the option of the holder, in whole or in
part, or has, or upon the happening of an event or passage of time would have, a redemption or
similar payment due.

Section 11.8 Transactions with Affiliates. Except for transactions permitted by 11.3,
11.6 and 11.7, directly or indirectly (a) make any loan or advance to, or purchase or assume any
note or other obligation to or from, any of its officers, directors, shareholders or other
Affiliates, or to or from any member of the immediate family of any of its officers, directors,
shareholders or other Affiliates, or subcontract any operations to any of its Affiliates or (b)
enter into, or be a party to, any other transaction not described in clause (a) above with any of
its Affiliates, except pursuant to the reasonable requirements of its business and upon fair and
reasonable terms that are no less favorable to it than it would obtain in a comparable arm’s length
transaction with a Person not its Affiliate.

Section 11.9 Certain Accounting Changes; Organizational Documents. (a) Change its
Fiscal Year end or any Fiscal Quarter end, or make any change in its accounting treatment and
reporting practices except consistent with GAAP or (b) amend, modify or change its articles of
incorporation (or corporate charter or other similar organizational documents) or amend, modify or
change its bylaws (or other similar documents) in any manner adverse in any respect to the rights
or interests of the Lenders.

 

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Section 11.10 Amendments; Payments and Prepayments of Subordinated Debt. Amend or
modify (or permit the modification or amendment of) any of the terms or provisions of the Senior
Subordinated Notes (or any documents executed in connection with the permitted
refinancing thereof) or any other Subordinated Debt, or cancel or forgive, make any payment or
prepayment on, or redeem or acquire for value (including without limitation by way of depositing
with any trustee with respect thereto money or securities before due for the purpose of paying when
due) the Senior Subordinated Notes or any other Subordinated Debt, other than, so long as no
Default or Event of Default shall have occurred and be continuing or would be caused thereby, (i)
regularly scheduled payments of accrued interest on the Senior Subordinated Notes (including
additional interest required to be paid on account of a registration default arising under the
registration rights agreements in connection with the Senior Subordinated Notes in an amount not to
exceed more than one percent (1%) per year per annum) to the extent such payments are permitted
under the subordination provisions thereof (and any Debt resulting from the refinancing thereof in
accordance with Section 11.1(f)), (ii) Permitted Note Repurchases, (iii) the redemption or
repurchase in whole of the Subordinated Senior Notes in connection with the refinancing thereof in
accordance with the terms of Section 11.1(f), and (iv) principal payments or prepayments of
intercompany Subordinated Debt between the Borrower and the Subsidiary Guarantors.

Section 11.11 Restrictive Agreements.

(a) Negative Pledges. Enter into any Debt which (i) contains any negative
pledge on assets or any covenants more restrictive than the provisions of Articles IX, X and
XI hereof, or (ii) restricts, limits or otherwise encumbers its ability to incur Liens on or
with respect to any of its assets or properties other than the assets or properties securing
such Debt (excluding, solely for the purposes of this Section 11.11(a), the Senior
Subordinated Notes (and any Debt resulting from the refinancing thereof in accordance with
Section 11.1(f)) so long as such Senior Subordinated Notes (and any Debt resulting from the
refinancing thereof in accordance with Section 11.1(f)) do not restrict, limit or otherwise
encumber the ability of the Borrower or any Subsidiary to incur Liens in favor of the
Administrative Agent or any Lender under this Credit Facility).

(b) Restrictions on Dividends. Enter into or permit to exist any agreement
which impairs or limits the ability of any Subsidiary of the Borrower to pay dividends or
distributions to the Borrower.

Section 11.12 Nature of Business. Alter the character or conduct of the business
conducted by the Borrower and its Subsidiaries as of the Closing Date.

Section 11.13 Impairment of Security Interests. Take or omit to take any action which
might or would have the result of materially impairing the security interests in favor of the
Administrative Agent with respect to the Collateral or grant to any Person (other than the
Administrative Agent for the benefit of itself and the Lenders pursuant to the Security Documents)
any interest whatsoever in the Collateral, except for Liens permitted under Section 11.2 and asset
sales permitted under Section 11.5.

 

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Section 11.14 SRLS Entities Restrictions. (a) Except as permitted under Section 11.4 of this Agreement, materially change or alter the
character or conduct of business by any SRLS Entity from and after the Closing Date, (b) except
as expressly permitted under this Agreement, increase the assets, liabilities or revenue of any
SRLS Entity from and after the Closing Date or (c) permit any SRLS Entity to create, incur, assume or
suffer to exist any Guaranty Obligations at any time.

Section 11.15 Franchisees Restrictions. Permit the amount of total assets, as determined in accordance with GAAP, of all Franchisees that are
Subsidiaries to exceed Twenty-Five Million Dollars ($25,000,000) in the aggregate.

ARTICLE XII

DEFAULT AND REMEDIES

Section 12.1 Events of Default. Each of the following shall constitute an Event of
Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment or order of any court or any order, rule
or regulation of any Governmental Authority or otherwise:

(a) Default in Payment of Principal of Loans and Reimbursement Obligations.
The Borrower shall default in any payment of principal of any Loan or Reimbursement
Obligation when and as due (whether at maturity, by reason of acceleration or otherwise).

(b) Other Payment Default. The Borrower or any other Credit Party shall
default in the payment when and as due (whether at maturity, by reason of acceleration or
otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any other
Obligation, and such default shall continue unremedied for five (5) Business Days.

(c) Misrepresentation. Any representation, warranty, certification or
statement of fact made or deemed to be made by or on behalf of the Borrower or any of its
Subsidiaries under this Agreement, any other Loan Document or any document delivered in
connection herewith or therewith that is subject to materiality or Material Adverse Effect
qualifications, be incorrect or misleading in any material respect when made or deemed made,
or any representation, warranty, certification or statement of fact made or deemed made by
or on behalf of the Borrower or any Subsidiary under this Agreement, any other Loan
Document, or in any document delivered in connection herewith or therewith that is not
subject to materiality or Material Adverse Effect qualification shall be incorrect or
misleading in any material respect when made or deemed made.

(d) Default in Performance of Certain Covenants. The Borrower or any
Subsidiary thereof shall default in the performance or observance of any covenant or
agreement contained in Sections 8.1, 8.2, 8.5(e)(i), 9.10, 9.11 or 9.12 or Articles X or XI
of this Agreement.

 

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(e) Default in Performance of Other Covenants and Conditions. The Borrower or
any Subsidiary thereof shall default in the performance or observance of any term, covenant,
condition or agreement contained in this Agreement (other than as specifically provided for
otherwise in this Section 12.1) or any other Loan Document and such default shall continue
for a period of thirty (30) days after written notice thereof has been given to the Borrower
by the Administrative Agent.

(f) Hedging Agreement. The Borrower shall default in the performance or
observance of any terms, covenant, condition or agreement (after giving effect to any
applicable grace or cure period) under any Hedging Agreement and such default causes the
termination of such Hedging Agreement or permits any counterparty to such Hedging
Agreement to terminate any such Hedging Agreement and the Termination Value owed by the
Borrower as a result thereof exceeds $5,000,000.

(g) Debt Cross-Default. The Borrower or any of its Subsidiaries shall (i)
default in the payment of any Debt (other than the Loans or any Reimbursement Obligation)
the aggregate outstanding amount of which Debt is in excess of $5,000,000 beyond the period
of grace if any, provided in the instrument or agreement under which such Debt was created,
or (ii) default in the observance or performance of any other agreement or condition
relating to any Debt (other than the Loans or any Reimbursement Obligation) the aggregate
outstanding amount of which Debt is in excess of $5,000,000 or contained in any instrument
or agreement evidencing, securing or relating thereto or any other event shall occur or
condition exist, the effect of which default or other event or condition is to cause, or to
permit the holder or holders of such Debt (or a trustee or agent on behalf of such holder or
holders) to cause, with the giving of notice if required, any such Debt to become due prior
to its stated maturity (any applicable grace period having expired).

(h) Other Cross-Defaults. The Borrower or any of its Subsidiaries shall
default in the payment when due, or in the performance or observance, of any obligation or
condition of any Material Contract which default is not cured within any applicable grace
period, unless, but only as long as, the existence of any such default is being contested by
the Borrower or any such Subsidiary in good faith by appropriate proceedings and adequate
reserves in respect thereof have been established on the books of the Borrower or such
Subsidiary to the extent required by GAAP.

(i) Change in Control. (i) Any person or group of persons (within the meaning
of Section 13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership
or control in one or more series of transactions of more than twenty percent (20%) of the
common stock or twenty percent (20%) of the voting power of the Borrower entitled to vote in
the election of members of the board of directors of the Borrower, (ii) there shall have
occurred under any indenture or other instrument evidencing any Debt in excess of $1,000,000
any “change in control” (as defined in such indenture or other evidence of Debt) obligating
the Borrower to repurchase, redeem or repay all or any part of the Debt or capital stock
provided for therein, or (iii) any “Change of Control” under any Subordinated Debt permitted
under this Agreement of the Borrower or its Subsidiaries, including, without limitation, the
Senior Subordinated

 

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Notes, or any document executed in connection therewith (any such event,
a “Change in Control”).

(j) Voluntary Bankruptcy Proceeding. The Borrower or any Subsidiary thereof
shall (i) commence a voluntary case under the federal bankruptcy laws (as now or hereafter
in effect), (ii) file a petition seeking to take advantage of any other laws, domestic or
foreign, relating to bankruptcy, insolvency, reorganization, winding up or composition for
adjustment of debts, (iii) consent to or fail to contest in a timely and appropriate manner
any petition filed against it in an involuntary case under such bankruptcy laws or other
laws, (iv) apply for or consent to, or fail to contest in a timely and appropriate manner,
the appointment of, or the taking of possession by, a receiver,
custodian, trustee, or liquidator of itself or of a substantial part of its property,
domestic or foreign, (v) admit in writing its inability to pay its debts as they become due,
(vi) make a general assignment for the benefit of creditors, or (vii) take any corporate
action for the purpose of authorizing any of the foregoing.

(k) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be
commenced against the Borrower or any Subsidiary thereof in any court of competent
jurisdiction seeking (i) relief under the federal bankruptcy laws (as now or hereafter in
effect) or under any other laws, domestic or foreign, relating to bankruptcy, insolvency,
reorganization, winding up or adjustment of debts, or (ii) the appointment of a trustee,
receiver, custodian, liquidator or the like for the Borrower or any Subsidiary thereof or
for all or any substantial part of their respective assets, domestic or foreign, and such
case or proceeding shall continue without dismissal or stay for a period of sixty (60)
consecutive days, or an order granting the relief requested in such case or proceeding
(including, but not limited to, an order for relief under such federal bankruptcy laws)
shall be entered.

(l) Failure of Agreements. Any material provision of this Agreement or any
material provision of any other Loan Document shall for any reason cease to be valid and
binding on the Borrower or Subsidiary party thereto or any such Person shall so state in
writing, or any Loan Document shall for any reason cease to create a valid and perfected
first priority Lien on, or security interest in, any of the collateral purported to be
covered thereby, in each case other than in accordance with the express terms hereof or
thereof.

(m) Termination Event. The occurrence of any of the following events: (i) the
Borrower or any ERISA Affiliate fails to make full payment when due of all amounts which,
under the provisions of any Pension Plan or Section 412 of the Code, the Borrower or any
ERISA Affiliate is required to pay as contributions thereto, (ii) an accumulated funding
deficiency in excess of $1,000,000 occurs or exists, whether or not waived, with respect to
any Pension Plan, (iii) a Termination Event or (iv) the Borrower or any ERISA Affiliate as
employers under one or more Multiemployer Plans makes a complete or partial withdrawal from
any such Multiemployer Plan and the plan sponsor of such Multiemployer Plans notifies such
withdrawing employer that such employer has incurred a withdrawal liability requiring
payments in an amount exceeding $1,000,000.

 

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(n) Judgment. A judgment or order for the payment of money which causes the
aggregate amount of all such judgments (net of any amounts paid or fully covered by
independent third party insurance as to which the relevant insurance company does not
dispute coverage) to exceed $5,000,000 in any Fiscal Year shall be entered against the
Borrower or any of its Subsidiaries by any court and such judgment or order shall continue
without discharge or stay for a period of thirty (30) days.

(o) Environmental. Any one or more Environmental Claims shall have been
asserted against the Borrower or any of its Subsidiaries; the Borrower and its Subsidiaries
would be reasonably likely to incur liability as a result thereof; and such liability would
be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect.

Section 12.2 Remedies. Upon the occurrence of an Event of Default, with the consent
of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders,
the Administrative Agent shall, by notice to the Borrower:

(a) Acceleration; Termination of Facilities. Terminate the Commitments and
declare the principal of and interest on the Loans and the Reimbursement Obligations at the
time outstanding, and all other amounts owed to the Lenders and to the Administrative Agent
under this Agreement or any of the other Loan Documents (including, without limitation, all
L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit
shall have presented or shall be entitled to present the documents required thereunder) and
all other Obligations (other than Hedging Obligations), to be forthwith due and payable,
whereupon the same shall immediately become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived by each Credit Party,
anything in this Agreement or the other Loan Documents to the contrary notwithstanding, and
terminate the Credit Facility and any right of the Borrower to request borrowings or Letters
of Credit thereunder; provided, that upon the occurrence of an Event of Default
specified in Section 12.1(j) or (k), the Credit Facility shall be automatically terminated
and all Obligations (other than Hedging Obligations) shall automatically become due and
payable without presentment, demand, protest or other notice of any kind, all of which are
expressly waived by each Credit Party, anything in this Agreement or in any other Loan
Document to the contrary notwithstanding.

(b) Letters of Credit. With respect to all Letters of Credit with respect to
which presentment for honor shall not have occurred at the time of an acceleration pursuant
to the preceding paragraph, the Borrower shall at such time deposit in a cash collateral
account opened by the Administrative Agent an amount equal to the aggregate then undrawn and
unexpired amount of such Letters of Credit. Amounts held in such cash collateral account
shall be applied by the Administrative Agent to the payment of drafts drawn under such
Letters of Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay the other
Obligations on a pro rata basis. After all such Letters of Credit shall
have expired or been fully drawn upon, the Reimbursement Obligation shall have been
satisfied and all other Obligations shall have been paid in full, the balance, if any, in
such cash collateral account shall be returned to the Borrower.

 

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(c) Rights of Collection. Exercise on behalf of the Lenders all of its other
rights and remedies under this Agreement, the other Loan Documents and Applicable Law, in
order to satisfy all of the Borrower’s Obligations.

Section 12.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the
rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not
intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right
or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given hereunder or under the
other Loan Documents or that may now or hereafter exist at law or in equity or by suit or
otherwise. No delay or failure to take action on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right, power or privilege preclude any other or
further exercise thereof or the exercise of any other right, power or privilege or be construed to
be a waiver of any Event of Default. No course of dealing between the Borrower, any of its
Subsidiaries, the Administrative Agent and the Lenders or their respective agents or employees
shall be effective to change, modify or discharge any provision of this Agreement or any of the
other Loan Documents or to constitute a waiver of any Event of Default.

Section 12.4 Administrative Agent May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any
Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C
Obligation shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall
be entitled and empowered, by intervention in such proceeding or otherwise:

(a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in order to
have the claims of the Lenders and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders and the
Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders and the Administrative Agent under Sections 3.3, 5.3 and 14.2) allowed in such
judicial proceeding; and

(b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3, 5.3 and
14.2.

 

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Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

ARTICLE XIII

THE ADMINISTRATIVE AGENT

Section 13.1 Appointment and Authority. Each of the Lenders, the Issuing Lender and
the Swingline Lender hereby irrevocably appoints Wachovia to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof 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
Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender, and neither the
Borrower nor any Subsidiary thereof shall have rights as a third party beneficiary of any of such
provisions.

Section 13.2 Rights as a Lender. The Person serving as the Administrative Agent
hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires,
include the Person serving as the Administrative 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 Administrative Agent
hereunder and without any duty to account therefor to the Lenders.

Section 13.3 Exculpatory Provisions. The Administrative 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 Administrative Agent:

(a) shall not be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing;

(b) shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan
Documents that the Administrative Agent is required to exercise as directed in writing by 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 Administrative Agent shall
not be required to take any action that, in its opinion or the opinion of its counsel, may expose
the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law;
and

 

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(c) shall not, except as expressly set forth herein and in the other Loan Documents, have any
duty to disclose, and shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as
the Administrative Agent or any of its Affiliates in any capacity.

The Administrative Agent shall not be liable for any action taken or not taken by it (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 Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Section 14.11 and Section 12.2) or (ii) in the
absence of its own gross negligence or willful misconduct as determined by a court of competent
jurisdiction by final nonappealable judgment. The Administrative Agent shall be deemed not to
have knowledge of any Default unless and until notice describing such Default is given to the
Administrative Agent by the Borrower, a Lender or the Issuing Lender.

The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into
(i) any statement, warranty or representation made in or in connection with this Agreement or any
other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (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 (v) the
satisfaction of any condition set forth in Article VI or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

Section 13.4 Reliance by the Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing (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 Administrative
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 a Loan, or the issuance of a
Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the
Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such
Lender or the Issuing Lender unless the Administrative Agent shall have received notice to the
contrary from such Lender or the Issuing Lender prior to the making of such Loan or the issuance of
such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel
for the Borrower), independent accountants and other experts selected by it, and shall not be
liable for any action taken or not taken by it in accordance with the advice of any such counsel,
accountants or experts.

Section 13.5 Delegation of Duties. The Administrative 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 Administrative Agent. The Administrative Agent
and any such sub-agent may perform any and all of its duties and exercise its rights and powers by
or through their respective Related Parties. The exculpatory provisions

 

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of this Article shall
apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative Agent.

Section 13.6 Resignation of Administrative Agent.

(a) The Administrative Agent may at any time give notice of its resignation to the Lenders,
the Issuing Lender 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 the United States, or an Affiliate of any such
bank with an office in the United States. 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
Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on
behalf of the Lenders and the Issuing Lender, appoint a successor Administrative Agent meeting the
qualifications set forth above provided that if the Administrative Agent shall notify the Borrower
and the Lenders that no qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held by the Administrative
Agent on behalf of the Lenders or the Issuing Lender under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (2) all payments, communications and determinations provided
to be made by, to or through the Administrative Agent shall instead be made by or to each Lender
and the Issuing Lender directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this paragraph. Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative
Agent, and the retiring Administrative Agent shall be discharged from all of its duties and
obligations 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 Administrative
Agent shall be the same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the retiring Administrative Agent’s resignation hereunder and
under the other Loan Documents, the provisions of this Article and Section 14.2 shall continue in
effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective
Related Parties in respect of any actions taken or omitted to be taken by any of them while the
retiring Administrative Agent was acting as Administrative Agent.

(b) Any resignation by Wachovia as Administrative Agent pursuant to this Section shall also
constitute its resignation as Issuing Lender and Swingline Lender. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring Issuing Lender
and Swingline Lender, (b) the retiring Issuing Lender and Swingline Lender shall be discharged from
all of their respective duties and obligations hereunder or under the other Loan Documents, and (c)
the successor Issuing Lender shall issue letters of credit in substitution for the Letters of
Credit, if any, outstanding at the time of such succession or make

 

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other arrangement satisfactory
to the retiring Issuing Lender to effectively assume the obligations of the retiring Issuing Lender
with respect to such Letters of Credit.

Section 13.7 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and
the Issuing Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender and the Issuing Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any other Loan Document or any related agreement or
any document furnished hereunder or thereunder.

Section 13.8 No Other Duties, etc. Anything herein to the contrary notwithstanding,
none of the syndication agents, documentation agents, co-agents, book manager, lead manager,
arranger, lead arranger or co-arranger listed on the cover page or signature pages 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 Administrative Agent, a Lender or the
Issuing Lender hereunder.

Section 13.9 Collateral and Guaranty Matters. The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion,

(a) to release any Lien on any Collateral granted to or held by the Administrative Agent, for
the ratable benefit of itself and the Lenders, under any Loan Document (i) upon repayment of the
outstanding principal of and all accrued interest on the Loans and Reimbursement Obligations,
payment of all outstanding fees and expenses hereunder, the termination of the Revolving Credit
Commitment and the expiration or termination of all Letters of Credit, (ii) that is sold or to be
sold as part of or in connection with any sale permitted hereunder or under any other Loan
Document, (iii) that is Real Property Collateral being substituted with other real estate pursuant
to the terms of Section 9.11(c), or (iv) subject to Section 14.11, if approved, authorized or
ratified in writing by the Required Lenders;

(b) to subordinate or release any Lien on any Collateral granted to or held by the
Administrative Agent under any Loan Document to the holder of any lien permitted pursuant to
Section 11.2; and

(c) to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty
Agreement, the Collateral Agreement and any other Loan Documents if such Person ceases to be a
Subsidiary as a result of a transaction permitted hereunder.

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing
the Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under the Subsidiary Guaranty
Agreement pursuant to this Section.

 

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ARTICLE XIV

MISCELLANEOUS

Section 14.1 Notices.

(a) Method of Communication. Except as otherwise provided in this Agreement,
all notices and communications hereunder shall be in writing (for purposes hereof, the term
“writing” shall include information in electronic format such as electronic mail and
internet web pages), or by telephone subsequently confirmed in writing. Any notice shall be
effective if delivered by hand delivery or sent via electronic mail, posting on an internet
web page, telecopy, recognized overnight courier service or
certified mail, return receipt requested, and shall be presumed to be received by a
party hereto (i) on the date of delivery if delivered by hand or sent by electronic mail,
posting on an internet web page (provided the recipients of such notice have been made
specifically aware of the posting of such notice by any other method permitted by this
Section 14.1(a)), telecopy, (ii) on the next Business Day if sent by recognized overnight
courier service and (iii) on the third Business Day following the date sent by certified
mail, return receipt requested. A telephonic notice to the Administrative Agent as
understood by the Administrative Agent will be deemed to be the controlling and proper
notice in the event of a discrepancy with or failure to receive a confirming written notice.

(b) Addresses for Notices. Notices to any party shall be sent to it at the
following addresses, or any other address as to which all the other parties are notified in
writing.

	 	 	 
	
If to the Borrower:

	 	O’Charley’s Inc.
	 

	 	3038 Sidco Drive
	 

	 	Nashville, Tennessee 37204
	 

	 	Attention: Mr. Lawrence Hyatt, Chief Financial Officer
	 

	 	Telephone No.: (615) 782-8818
	 

	 	Telecopy No.: (615) 782-5031
	 
	 	 
	
With copies to:

	 	Bass, Berry & Sims PLC
	 

	 	150 Third Avenue South
	 

	 	Nashville, TN 37201
	 

	 	Attention: J. Page Davidson
	 

	 	Telephone No.: (615) 742-6200
	 

	 	Telecopy No.: (615) 742-6293
	 
	 	 
	If to Wachovia as
Administrative Agent:

	 	

Wachovia Bank, National Association
	 

	 	NC0680
	 

	 	1525 West W.T. Harris Blvd.
	 

	 	Charlotte, North Carolina 28262
	 

	 	Attention: Syndication Agency Services

 

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	 	Telephone No.: (704) 590-2703
	 

	 	Telecopy No.: (704) 590-3481
	 
	 	 
	
With a copy to:

	 	Wells Fargo Restaurant Finance
	 

	 	101 Federal Street, 20th Floor
	 

	 	Boston, Massachusetts 02110
	 

	 	Attention: Ms. Meghan Hinds
	 

	 	Telephone No.: (617) 574-6337
	 

	 	Telecopy No.: (617) 574-6370
	 
	 	 
	
If to any Lender:

	 	To the address set forth on the Register.

(c) Administrative Agent’s Office. The Administrative Agent hereby designates
its office located at the address set forth above, or any subsequent office which shall have
been specified for such purpose by written notice to the Borrower and Lenders, as the
Administrative Agent’s Office referred to herein, to which payments due are to be made and
at which Loans will be disbursed and Letters of Credit issued.

Section 14.2 Expenses; Indemnity.

(a) Costs and Expenses. The Borrower and any other Credit Party, jointly and
severally, shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent) in connection with the syndication of
the credit facilities provided for herein, the preparation, negotiation, execution, delivery
and administration of this Agreement and the other Loan Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Lender in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder
and (iii) all reasonable out-of-pocket expenses incurred by the Administrative Agent, any
Lender or the Issuing Lender (including the reasonable fees, charges and disbursements of
any counsel for the Administrative Agent, any Lender or the Issuing Lender) in connection
with the enforcement or protection of its rights (A) in connection with this Agreement and
the other Loan Documents, including its rights under this Section, or (B) in connection with
the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans
or Letters of Credit.

(b) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and
each Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims (including, without limitation, any Environmental Claims or civil penalties or fines
assessed by OFAC), damages, liabilities and related expenses (including the fees, charges,
settlement costs and disbursements of any counsel for any Indemnitee) incurred by any
Indemnitee or asserted against any Indemnitee by any third party or by the

 

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Borrower or any
other Credit Party arising out of, in connection with, or as a result of (i) the execution
or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions contemplated
hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the
proceeds therefrom (including any refusal by the Issuing Lender to honor a demand for
payment under a Letter of Credit if the documents presented in connection with such demand
do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by the
Borrower or any of its Subsidiaries, or any Environmental Claim related in any way to the
Borrower or any of its Subsidiaries, (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether brought by
a third party or by the Borrower or any other Credit Party, and regardless of whether any
Indemnitee is a party thereto, or (v) any claim (including, without limitation, any
Environmental Claims or civil penalties or fines assessed by OFAC), investigation,
litigation or other proceeding (whether or not the Administrative Agent or any Lender is a
party thereto) and the prosecution and defense thereof, arising out of or in any way
connected with the Loans, this Agreement, any other Loan Document, or any documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or
thereby, including without limitation, reasonable attorneys and consultant’s fees,
provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses (x) are determined
by a court of competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or (y) result from a
claim brought by the Borrower or any other Credit Party against an Indemnitee for breach in
bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if
the Borrower or such Credit Party has obtained a final and nonappealable judgment in its
favor on such claim as determined by a court of competent jurisdiction.

(c) Reimbursement by Lenders. To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under clause (a) or (b) of this Section to be
paid by it to the Administrative Agent (or any sub-agent thereof), the Issuing Lender or any
Related Party of any of the foregoing, each Lender severally agrees to pay to the
Administrative Agent (or any such sub-agent), the Issuing Lender or such Related Party, as
the case may be, such Lender’s Applicable Margin (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount,
provided that the unreimbursed expense or indemnified loss, claim, damage, liability
or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the Issuing Lender in its capacity as such,
or against any Related Party of any of the foregoing acting for the Administrative Agent (or
any such sub-agent) or Issuing Lender in connection with such capacity. The obligations of
the Lenders under this clause (c) are subject to the provisions of Section 5.7.

(d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
Applicable Law, the Borrower shall not assert, and hereby waives, any claim against any

 

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Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as a
result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. No Indemnitee referred to in clause (b) above
shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic or
other information transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby.

(e) Payments. All amounts due under this Section shall be payable promptly
after demand therefor.

Section 14.3 Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender, the Issuing Lender, the Swingline Lender and each of their respective
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by Applicable Law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the Issuing Lender, the Swingline Lender or any such
Affiliate to or for the credit or the account of the Borrower or any other Credit Party against any
and all of the obligations of the Borrower or such Credit Party now or hereafter existing under
this Agreement or any other Loan Document to such Lender, the Issuing Lender or the Swingline
Lender, irrespective of whether or not such Lender, the Issuing Lender or the Swingline Lender
shall have made any demand under this Agreement or any other Loan Document and although such
obligations of the Borrower or such Credit Party may be contingent or unmatured or are owed to a
branch or office of such Lender, the Issuing Lender or the Swingline Lender different from the
branch or office holding such deposit or obligated on such indebtedness. The rights of each
Lender, the Issuing Lender, the Swingline Lender and their respective Affiliates under this Section
are in addition to other rights and remedies (including other rights of setoff) that such Lender,
the Issuing Lender, the Swingline Lender or their respective Affiliates may have. Each Lender, the
Issuing Lender and the Swingline Lender agrees to notify the Borrower and the Administrative Agent
promptly after any such setoff and application; provided that the failure to give such
notice shall not affect the validity of such setoff and application.

Section 14.4 Governing Law. This Agreement and the other Loan Documents, unless
otherwise expressly set forth therein, shall be governed by, construed and enforced in accordance
with and all issues related to the legality, validity or enforceability hereof and thereof shall be
determined under the laws of the State of New York (including Section 5-1401 and Section 5-1402 of
the General Obligations Law of the State of New York), without regard to the conflicts of law
principles thereof.

Section 14.5 Jurisdiction and Venue.

(a) Jurisdiction. The Borrower hereby irrevocably consents to the personal
jurisdiction of the state and federal courts located in New York, New York and Mecklenburg
County, North Carolina (and any courts from which an appeal from any of

 

88

 

such courts must or
may be taken), in any action, claim or other proceeding arising out of any dispute in
connection with this Agreement and the other Loan Documents, any rights or obligations
hereunder or thereunder, or the performance of such rights and obligations. The Borrower
hereby irrevocably consents to the service of a summons and complaint and other process in
any action, claim or proceeding brought by the Administrative Agent or any Lender in
connection with this Agreement or the other Loan Documents, any rights or obligations
hereunder or thereunder, or the performance of such rights and obligations, on behalf of
itself or its property, in the manner specified in Section 14.1. Nothing in this Section
14.5 shall affect the right of the Administrative Agent or any Lender to serve legal process
in any other manner permitted by Applicable Law or affect the right of the Administrative
Agent or any Lender to bring any action or proceeding against the Borrower or its properties
in the courts of any other jurisdictions.

(b) Venue. The Borrower hereby irrevocably waives any objection it may have
now or in the future to the laying of venue in the aforesaid jurisdictions in any action,
claim or other proceeding arising out of or in connection with this Agreement, any other
Loan Document or the rights and obligations of the parties hereunder or thereunder. The
Borrower irrevocably waives, in connection with such action, claim or proceeding, any plea
or claim that the action, claim or other proceeding has been brought in an inconvenient
forum.

Section 14.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 14.7 Reversal of Payments. To the extent the Borrower makes a payment or
payments to the Administrative Agent for the ratable benefit of the Lenders or the Administrative
Agent receives any payment or proceeds of the collateral which payments or proceeds or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or
federal law, common law or equitable cause, then, to the extent of such payment or proceeds
received, the Obligations or part thereof intended to be satisfied shall be revived and continued
in full force and effect as if such payment or proceeds had not been received by the Administrative
Agent.

Section 14.8 Injunctive Relief; Punitive Damages.

 

89

 

(a) Injunctive Relief. The Borrower recognizes that, in the event the Borrower fails
to perform, observe or discharge any of its obligations or liabilities under this Agreement, any
remedy of law may prove to be inadequate relief to the Lenders. Therefore, the Borrower agrees that
the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief
in any such case without the necessity of proving actual damages.

(b) Punitive Damages. The Administrative Agent, the Lenders and the Borrower (on
behalf of itself and its Subsidiaries) hereby agree that no such Person shall have a remedy of
punitive or exemplary damages against any other party to a Loan Document and each such Person
hereby waives any right or claim to punitive or exemplary damages that it may now have or that may
arise in the future in connection with any Dispute, whether such Dispute is resolved through
arbitration or judicially.

Section 14.9 Accounting Matters. All financial and accounting calculations,
measurements and computations made for any purpose relating to this Agreement, including, without
limitation, all computations utilized by the Borrower or any Subsidiary thereof to determine
compliance with any covenant contained herein, shall, except as otherwise expressly contemplated
hereby or unless there is an express written direction by the Administrative Agent to the contrary
agreed to by the Borrower, be performed in accordance with GAAP as in effect on the Closing Date.
In the event that changes in GAAP shall be mandated by the Financial Accounting Standards Board, or
any similar accounting body of comparable standing, or shall be recommended by the Borrower’s
certified public accountants, to the extent that such changes would modify such accounting terms or
the interpretation or computation thereof, such changes shall be followed in defining such
accounting terms only from and after the date the Borrower and the Required Lenders shall have
amended this Agreement to the extent necessary to reflect any such changes in the financial
covenants and other terms and conditions of this Agreement.

Section 14.10 Successors and Assigns; Participations.

(a) Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that neither the Borrower nor any other Credit Party may assign or
otherwise transfer any of its rights or obligations hereunder without the prior written consent of
the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of
paragraph (d) of this Section or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of paragraph (f) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in
paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

(b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a

 

90

 

portion of its Revolving Credit Commitment and the Loans at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

(i) Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Revolving Credit Commitment and the Loans at the time owing to it
or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and

(B) in any case not described in paragraph (b)(i)(A) of this Section, the
aggregate amount of the Revolving Credit Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the applicable Revolving Credit
Commitment is not then in effect, the principal outstanding balance of the
Loans of the assigning Lender subject to each such assignment (determined as of the
date the Assignment and Assumption with respect to such assignment is delivered to
the Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date) shall not be less than $5,000,000, in the case of
any assignment in respect of the Revolving Credit Facility, unless each of the
Administrative Agent and, so long as no Default or Event of Default has occurred and
is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed);

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of
a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Revolving Credit Commitment assigned;

(iii) Required Consents. No consent shall be required for any assignment except to
the extent required by paragraph (b)(i)(B) of this Section and, in addition:

(A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (x) a Default or Event of Default has occurred
and is continuing at the time of such assignment or (y) such assignment is to a
Lender, an Affiliate of a Lender or an Approved Fund;

(B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in respect of
the Revolving Credit Facility if such assignment is to a Person that is not a Lender
with a Revolving Credit Commitment, an Affiliate of such Lender or an Approved Fund
with respect to such Lender; and

(C) the consents of the Issuing Lender and the Swingline Lender (such consents
not to be unreasonably withheld or delayed) shall be required for any assignment
that increases the obligation of the assignee to participate in exposure under one
or more Letters of Credit (whether or not then outstanding) or for any assignment in
respect of the Revolving Credit Facility.

 

91

 

(iv) Assignment and Assumption. The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500 for each assignment, and the assignee, if it is not a Lender, shall
deliver to the Administrative Agent an Administrative Questionnaire.

(v) No Assignment to Borrower. No such assignment shall be made to the Borrower or
any of the Borrower’s Affiliates or Subsidiaries.

(vi) No Assignment to Natural Persons. No such assignment shall be made to a natural
person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 5.8, 5.9, 5.10, 5.11 and 14.2 with respect to facts and
circumstances occurring prior to the effective date of such assignment. Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply with this paragraph
shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (d) of this Section.

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

(d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Revolving Credit Commitment and/or the Loans owing to
it); provided that (i)
such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent, Issuing Lender, Swingline Lender 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.

 

92

 

Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver or modification described in Section
14.11 that directly affects such Participant and could not be affected by a vote of the Required
Lenders. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall
be entitled to the benefits of Sections 5.8, 5.9, 5.10 and 5.11 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To
the extent permitted by law, each Participant also shall be entitled to the benefits of Section
14.2 as though it were a Lender, provided such Participant agrees to be subject to Section 5.6 as
though it were a Lender.

(e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Sections 5.10 and 5.11 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant, unless the sale of
the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 5.11 unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section
5.11(e) as though it were a Lender.

(f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including without limitation any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

Section 14.11 Amendments, Waivers and Consents. Except as set forth below or as
specifically provided in any Loan Document, any term, covenant, agreement or condition of this
Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any
consent given by the Lenders, if, but only if, such amendment, waiver or consent is in writing
signed by the Required Lenders (or by the Administrative Agent with the consent of the Required
Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the
Borrower; provided, that no amendment, waiver or consent shall:

(a) (i) increase the Revolving Credit Commitment of any Lender or increase the amount of any
Revolving Credit Loan, (ii) reduce the Revolving Credit Commitment Percentage, rate of interest or
fees payable on any Revolving Credit Loan or Reimbursement Obligation, (iii) reduce or forgive the
principal amount of any Revolving Credit Loan or the amount of any
Reimbursement Obligation, (iv) extend the originally scheduled time or times of payment of the
principal of any Revolving Credit Loan or Reimbursement Obligation or the time or times of payment
of interest on any Revolving Credit Loan or Reimbursement Obligation or any fee or commission with
respect thereto, (v) permit any subordination of the principal or interest on any Revolving Credit
Loan or Reimbursement Obligation or (vi) extend the time of the obligation of the Lenders holding
Revolving Credit Commitments to make or issue or participate in letters, in

 

93

 

each case, without the
written consent of each Lender holding Revolving Credit Loans or a Revolving Credit Commitment;

(b) (i) release the Borrower from the Obligations (other than Hedging Obligations) hereunder,
(ii) permit any assignment (other than as specifically permitted or contemplated in this Agreement)
of any of the Borrower’s rights and obligations hereunder, (iii) release any material portion of
the Collateral or release any Security Document (other than asset sales permitted pursuant to
Section 11.5 (which such Collateral may be released upon the consent of the Administrative Agent
only) and as otherwise specifically permitted or contemplated in this Agreement or the applicable
Security Document), (iv) release any Subsidiary Guarantor from its respective Guaranty Obligations,
(v) permit any Liens (other than Permitted Liens) on any Collateral secured under this Credit
Facility or (vi) amend the provisions of this Section 14.11 or the definition of Required Lenders,
in each case, without the prior written consent of each Lender.

In addition, no amendment, waiver or consent to the provisions of Section 5.4 with respect to the
pro rata treatment of payments, or Section 5.5 with respect to the application of
proceeds, shall be made without the consent of each Lender adversely affected thereby.

In addition, no amendment, waiver or consent shall be made to the provisions of (a) Article XIII
without the written consent of the Administrative Agent, and (b) Article III without the written
consent of the Issuing Lender.

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have the right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Revolving Credit
Commitment of such Lender may not be increased or extended without the consent of such Lender.

Section 14.12 Confidentiality. Each of the Administrative Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and
agents, including accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (b) to the extent requested by,
or required to be disclosed to, any rating agency, or regulatory or similar authority (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 under this
Agreement or under any other Loan Document (or any Hedging Agreement with a Lender or the
Administrative Agent) or any action or proceeding relating to this Agreement or any other Loan
Document (or any Hedging Agreement with a Lender or the Administrative Agent) 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 purchasing Lender, proposed
purchasing Lender, Participant or proposed Participant or (ii) any actual or prospective
counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and
its obligations, (g) with the consent of the Borrower, (h) to Gold Sheets and other similar
bank trade publications, such information to consist of deal terms and other information
customarily found in such

 

94

 

publications, or (i) 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
Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower
or (j) to governmental regulatory authorities in connection with any regulatory examination of the
Administrative Agent or any Lender or in accordance with the Administrative Agent’s or any Lender’s
regulatory compliance policy if the Administrative Agent or such Lender deems necessary for the
mitigation of claims by those authorities against the Administrative Agent or such Lender or any of
its subsidiaries or affiliates. For purposes of this Section, “Information” means all
information received from any Credit Party relating to any Credit Party or any of their respective
businesses, other than any such information that is available to the Administrative Agent or any
Lender on a nonconfidential basis prior to disclosure by any Credit Party; provided that,
in the case of information received from a Credit Party 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 14.13 Performance of Duties. The Borrower’s obligations under this Agreement
and each of the other Loan Documents shall be performed by the Borrower at its sole cost and
expense.

Section 14.14 All Powers Coupled with Interest. All powers of attorney and other
authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the
Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other
Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of
the Obligations remain unpaid or unsatisfied, any of the Commitments remain in effect or the Credit
Facility has not been terminated.

Section 14.15 Survival of Indemnities. Notwithstanding any termination of this
Agreement, the indemnities to which the Administrative Agent and the Lenders are entitled under the
provisions of this Article XIV and any other provision of this Agreement and the other Loan
Documents shall continue in full force and effect and shall protect the Administrative Agent and
the Lenders against events arising after such termination as well as before.

Section 14.16 Titles and Captions. Titles and captions of Articles, Sections and
subsections in, and the table of contents of, this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement.

Section 14.17 Severability of Provisions. Any provision of this Agreement or any
other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remainder of such provision or the remaining provisions hereof or thereof
or affecting the validity or enforceability of such provision in any other jurisdiction.

Section 14.18 Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be

 

95

 

deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

Section 14.19 Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto in different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement and the other Loan Documents, and any separate letter agreements with
respect to fees payable to the Administrative Agent, constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. In the event of any
conflict between the provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion of supplemental
rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint
participation of the respective parties thereto and shall be construed neither against nor in favor
of any party, but rather in accordance with the fair meaning thereof.

Section 14.20 Term of Agreement. This Agreement shall remain in effect from the
Closing Date through and including the date upon which all Obligations arising hereunder or under
any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full and
all Commitments have been terminated. The Administrative Agent is hereby permitted to release all
Liens on the Collateral in favor of the Administrative Agent, for the ratable benefit of itself and
the Lenders, upon repayment of the outstanding principal of and all accrued interest on the Loans,
payment of all outstanding fees, expenses and other Obligations hereunder and the termination of
the Lender’s Commitments. No termination of this Agreement shall affect the rights and obligations
of the parties hereto arising prior to such termination or in respect of any provision of this
Agreement which survives such termination.

Section 14.21 Advice of Counsel. Each of the parties represents to each other party
hereto that it has discussed this Agreement with its counsel.

Section 14.22 USA Patriot Act. The Administrative Agent and each Lender hereby
notifies the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies the Borrower and Guarantors, which information includes the
name and address of each Borrower and Guarantor and other information that will allow such Lender
to identify such Borrower or Guarantor in accordance with the Act.

Section 14.23 No Strict Construction. The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

 

96

 

Section 14.24 Inconsistencies with Other Documents; Independent Effect of Covenants.

(a) In the event there is a conflict or inconsistency between this Agreement and any
other Loan Document, the terms of this Agreement shall control; provided, that any
provision of the Security Documents which imposes additional burdens on the Borrower or its
Subsidiaries or further restricts the rights of the Borrower or its Subsidiaries or gives
the Administrative Agent or Lenders additional rights shall not be deemed to be in conflict
or inconsistent with this Agreement and shall be given full force and effect.

(b) This Agreement constitutes an amendment and restatement of the Existing Credit
Agreement, as amended, effective from and after the Closing Date. The execution and
delivery of this Agreement shall not constitute a novation of any Debt or other obligations
owing to the Lenders or the Administrative Agent under the Existing Credit Agreement based
on facts or events occurring or existing prior to the execution and delivery of this
Agreement. On the Closing Date, the credit facilities described in the Existing Credit
Agreement, as amended, shall be amended, supplemented, modified and restated in their
entirety by the facilities described herein, and all loans and other obligations of the
Borrower outstanding as of such date under the Existing Credit Agreement, as amended, shall
be deemed to be loans and obligations outstanding under the corresponding facilities
described herein, without any further action by any Person, except that the Administrative
Agent shall make such transfers of funds as are necessary in order that the outstanding
balance of such Loans, together with any Loans funded on the Closing Date, reflect the
Commitments of the Lenders hereunder.

(c) The Borrower expressly acknowledges and agrees that each covenant contained in
Articles IX, X, or XI hereof shall be given independent effect. Accordingly, the Borrower
shall not engage in any transaction or other act otherwise permitted under any covenant
contained in Articles IX, X, or XI if, before or after giving effect to such transaction or
act, the Borrower shall or would be in breach of any other covenant contained in Articles
IX, X, or XI.

[Signature pages to follow]

 

97

 

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

	 	 	 	 	 
	 	O’CHARLEY’S INC., as Borrower

 	 
	 	By:  	/s/ Jeffrey D. Warne
 	 
	 	 	Name:  	Jeffrey D. Warne 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

[Signature Pages Continue]

[Third Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION, 
as Administrative Agent and Lender

 	 
	 	By:  	/s/
Stephen A. Leon
 	 
	 	 	Name:  	Stephen A. Leon 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Pages Continue]

[Third Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	REGIONS BANK, as Documentation Agent, 
Swingline Lender and Lender

 	 
	 	By:  	/s/ Scott Corley
 	 
	 	 	Name:  	Scott Corley 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Third Amended and Restated Credit Agreement]

 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as Syndication Agent
 and Lender

 	 
	 	By:  	/s/ John H. Schmidt
 	 
	 	 	Name:  	John H. Schmidt 	 
	 	 	Title:  	Vice President 	 
	 

[Third Amended and Restated Credit Agreement]exv4w1

EXECUTION COPY

 

 

 

TEEKAY CORPORATION, as Issuer

TO

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

INDENTURE

Dated as of January 27, 2010

$450,000,000

8.5% Senior Notes Due January 15, 2020

 

 

 

TEEKAY CORPORATION

Reconciliation and tie between Sections 310 through 318, inclusive, of the

Trust Indenture Act of 1939 and this Indenture

	 	 	 	 	 
	Trust Indenture	 	 	Indenture
	Act Sections	 	 	Section
	ss.310	(a)(1)	 	 	6.09

	 	(a)(2)	 	 	6.09

	 	(a)(3)	 	 	Not Applicable

	 	(a)(4)	 	 	Not Applicable

	 	(b)	 	 	6.08, 6.10

	ss.311	 (a) 	 	 	6.13

	 	(b)	 	 	6.13

	ss.312 	(a)	 	 	7.01, 7.02

	 	(b)	 	 	7.02

	 	(c)		 	7.02

	ss.313	(a)	 	 	7.03

	 	(b)		 	7.03

	 	(c)	 	 	7.03

	 	(d)	 	 	7.03

	ss.314 	(a)	 	 	7.04

	 	(a)(4)	 	 	10.11

	 	(b)	 	 	Not Applicable

	 	(c)(1)	 	 	1.02

	 	(c)(2)	 	 	1.02

	 	(c)(3)	 	 	Not Applicable

	 	(d)	 	 	Not Applicable

	 	(e)	 	 	1.02

	ss.315 	(a)	 	 	6.01

	 	(b)	 	 	6.02

	 	(c)	 	 	6.03

	 	(d)	 	 	6.01

	 	(d)(1)	 	 	6.01

	 	(e)	 	 	5.14

	ss.316	 (a)	 	 	1.01

	 	(a)(l)(A)	 	 	5.02, 5.12

	 	(a)(l)(B)	 	 	5.13

	 	(a)(2)	 	 	Not Applicable

	 	(b)	 	 	5.08

	ss.317	 (a)(1)	 	 	5.03

	 	(a)(2)	 	 	5.04

	 	(b)	 	 	10.03

	ss.318 	(a)	 	 	1.07

 

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

 

TABLE OF CONTENTS*

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	 
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	 
	 	 	 	 
	SECTION 1.01 Definitions
	 	 	1	 
	SECTION 1.02 Compliance Certificates and Opinions
	 	 	12	 
	SECTION 1.03 Form of Documents Delivered to Trustee
	 	 	13	 
	SECTION 1.04 Acts of Holders; Record Dates
	 	 	13	 
	SECTION 1.05 Notices, Etc., to Trustee and Company
	 	 	15	 
	SECTION 1.06 Notice to Holders; Waiver
	 	 	15	 
	SECTION 1.07 Conflict with Trust Indenture Act
	 	 	16	 
	SECTION 1.08 Effect of Headings and Table of Contents
	 	 	16	 
	SECTION 1.09 Successors and Assigns
	 	 	16	 
	SECTION 1.10 Separability Clause
	 	 	16	 
	SECTION 1.11 Benefits of Indenture
	 	 	16	 
	SECTION 1.12 Governing Law
	 	 	16	 
	SECTION 1.13 Legal Holidays
	 	 	17	 
	SECTION 1.14 Consent to Service; Jurisdiction
	 	 	17	 
	SECTION 1.15 Conversion of Currency
	 	 	17	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	FORMS OF SECURITY

	 
	 	 	 	 
	SECTION 2.01 Forms Generally
	 	 	18	 
	SECTION 2.02 Form of Face of Security
	 	 	19	 
	SECTION 2.03 Form of Reverse of Security
	 	 	20	 
	SECTION 2.04 Form of Trustee’s Certificate of Authentication
	 	 	23	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	THE SECURITIES

	 
	 	 	 	 
	SECTION 3.01 Title and Terms
	 	 	23	 
	SECTION 3.02 Denominations
	 	 	23	 
	SECTION 3.03 Execution, Authentication, Delivery and Dating
	 	 	24	 
	SECTION 3.04 Temporary Securities
	 	 	24	 
	SECTION 3.05 Registration; Registration of Transfer and Exchange
	 	 	25	 
	SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Securities
	 	 	27	 
	SECTION 3.07 Payment of Interest; Interest Rights Preserved
	 	 	27	 
	SECTION 3.08 Persons Deemed Owners
	 	 	28	 
	SECTION 3.09 Cancellation
	 	 	28	 
	SECTION 3.10 Computation of Interest
	 	 	28	 
	SECTION 3.11 CUSIP Numbers
	 	 	29	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	SATISFACTION AND DISCHARGE

	 
	 	 	 	 
	SECTION 4.01 Satisfaction and Discharge of Indenture
	 	 	29	 
	SECTION 4.02 Application of Trust Money
	 	 	30	 

 

			
	*	 	This table of contents shall not, for any
purpose, be deemed a part of the Indenture.

ii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE V

	 
	 	 	 	 
	REMEDIES

	 
	 	 	 	 
	SECTION 5.01 Events of Default
	 	 	30	 
	SECTION 5.02 Acceleration of Maturity; Rescission and Annulment
	 	 	31	 
	SECTION 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	32	 
	SECTION 5.04 Trustee May File Proofs of Claim
	 	 	33	 
	SECTION 5.05 Trustee May Enforce Claims Without Possession of Securities
	 	 	33	 
	SECTION 5.06 Application of Money Collected
	 	 	33	 
	SECTION 5.07 Limitation on Suits
	 	 	33	 
	SECTION 5.08 Unconditional Right of Holders to Receive Principal, Premium and Interest
	 	 	34	 
	SECTION 5.09 Restoration of Rights and Remedies
	 	 	34	 
	SECTION 5.10 Rights and Remedies Cumulative
	 	 	34	 
	SECTION 5.11 Delay or Omission Not Waiver
	 	 	34	 
	SECTION 5.12 Control by Holders
	 	 	35	 
	SECTION 5.13 Waiver of Past Defaults
	 	 	35	 
	SECTION 5.14 Undertaking for Costs
	 	 	35	 
	SECTION 5.15 Waiver of Usury, Stay or Extension Laws
	 	 	35	 
	SECTION 5.16 No Personal Liability of Incorporators, Shareholders, Officers, Directors or Employees
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	THE TRUSTEE

	 
	 	 	 	 
	SECTION 6.01 Certain Duties and Responsibilities
	 	 	36	 
	SECTION 6.02 Notice of Defaults
	 	 	36	 
	SECTION 6.03 Certain Rights of Trustee
	 	 	37	 
	SECTION 6.04 Not Responsible for Recitals or Issuance of Securities
	 	 	38	 
	SECTION 6.05 May Hold Securities and Act as Trustee under Other Indentures
	 	 	38	 
	SECTION 6.06 Money Held in Trust
	 	 	38	 
	SECTION 6.07 Compensation and Reimbursement
	 	 	38	 
	SECTION 6.08 Disqualification; Conflicting Interests
	 	 	39	 
	SECTION 6.09 Corporate Trustee Required; Eligibility
	 	 	39	 
	SECTION 6.10 Resignation and Removal; Appointment of Successor
	 	 	39	 
	SECTION 6.11 Acceptance of Appointment by Successor
	 	 	40	 
	SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business
	 	 	41	 
	SECTION 6.13 Preferential Collection of Claims Against Company
	 	 	41	 
	SECTION 6.14 Appointment of Authenticating Agent
	 	 	41	 
	SECTION 6.15 Trustee’s Application for Instructions from the Company
	 	 	42	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

	 
	 	 	 	 
	SECTION 7.01 Company to Furnish Trustee Names and Addresses of Holders
	 	 	42	 
	SECTION 7.02 Preservation of Information; Communications to Holders
	 	 	43	 
	SECTION 7.03 Reports by Trustee
	 	 	43	 
	SECTION 7.04 Reports by Company
	 	 	43	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	CONSOLIDATIONS, MERGERS AND CERTAIN SALES OF ASSETS

	 
	 	 	 	 
	SECTION 8.01 The Company May Consolidate, Etc. Only on Certain Terms
	 	 	44	 
	SECTION 8.02 Successor Substituted
	 	 	44	 

iii

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE IX

	 
	 	 	 	 
	SUPPLEMENTAL INDENTURES

	 
	 	 	 	 
	SECTION 9.01 Supplemental Indentures Without Consent of Holders
	 	 	44	 
	SECTION 9.02 Supplemental Indentures With Consent of Holders
	 	 	45	 
	SECTION 9.03 Execution of Supplemental Indentures
	 	 	46	 
	SECTION 9.04 Effect of Supplemental Indentures
	 	 	46	 
	SECTION 9.05 Conformity with Trust Indenture Act
	 	 	46	 
	SECTION 9.06 Reference in Securities to Supplemental Indentures
	 	 	46	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	COVENANTS

	 
	 	 	 	 
	SECTION 10.01 Payment of Principal Amount, Premium and Interest
	 	 	46	 
	SECTION 10.02 Maintenance of Office or Agency
	 	 	46	 
	SECTION 10.03 Money for Securities Payments to be Held in Trust
	 	 	47	 
	SECTION 10.04 Corporate Existence
	 	 	48	 
	SECTION 10.05 Maintenance of Properties
	 	 	48	 
	SECTION 10.06 Payment of Taxes and Other Claims
	 	 	48	 
	SECTION 10.07 Maintenance of Insurance
	 	 	48	 
	SECTION 10.08 Limitation on Liens
	 	 	48	 
	SECTION 10.09 Change of Control Triggering Event
	 	 	49	 
	SECTION 10.10 Provision of Financial Information
	 	 	49	 
	SECTION 10.11 Statement By Officers as to Default; Compliance Certificates
	 	 	50	 
	SECTION 10.12 Waiver of Certain Covenants
	 	 	50	 
	SECTION 10.13 Indemnification of Judgment Currency
	 	 	51	 
	SECTION 10.14 Payments for Consent
	 	 	51	 
	SECTION 10.15 Additional Amounts
	 	 	51	 
	 
	 	 	 	 
	ARTICLE XI

	 
	 	 	 	 
	REDEMPTION OF SECURITIES

	 
	 	 	 	 
	SECTION 11.01 Right of Redemption
	 	 	53	 
	SECTION 11.02 Applicability of Article
	 	 	53	 
	SECTION 11.03 Election to Redeem; Notice to Trustee
	 	 	53	 
	SECTION 11.04 Selection by Trustee of Securities to Be Redeemed
	 	 	54	 
	SECTION 11.05 Notice of Redemption
	 	 	54	 
	SECTION 11.06 Deposit of Redemption Price
	 	 	54	 
	SECTION 11.07 Securities Payable on Redemption Date
	 	 	55	 
	SECTION 11.08 Securities Redeemed in Part
	 	 	55	 
	 
	 	 	 	 
	ARTICLE XII

	 
	 	 	 	 
	DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 
	SECTION 12.01 Company’s Option to Effect Defeasance or Covenant Defeasance
	 	 	55	 
	SECTION 12.02 Defeasance and Discharge
	 	 	55	 
	SECTION 12.03 Covenant Defeasance
	 	 	56	 
	SECTION 12.04 Conditions to Defeasance or Covenant Defeasance
	 	 	56	 
	SECTION 12.05 Deposited Money and United States Government Obligations to be Held in Trust; Other Miscellaneous Provisions
	 	 	57	 
	SECTION 12.06 Reinstatement
	 	 	58	 

Testimonium

Signatures and Seals

iv

 

     INDENTURE, dated as of January 27, 2010, between Teekay Corporation, a corporation duly
domesticated and existing under the laws of the Republic of The Marshall Islands, as issuer (herein
called the “Company”), having its principal executive office at 4th Floor, Belvedere
Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda, and The Bank of New York Mellon Trust
Company, N.A., as Trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issue of its 8.5% Senior Notes due January
15, 2020 of substantially the tenor and amount hereinafter set forth (each a “Security” and,
collectively, the “Securities”), and to provide therefor the Company has duly authorized the
execution and delivery of this Indenture.

     All things necessary to make the Securities, when executed by the Company and authenticated
and delivered hereunder and duly issued by the Company, the valid obligations of the Company, and
to make this Indenture a valid agreement of the Company, in accordance with its terms, have been
done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 1.01 Definitions.

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

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

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

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

     (4) unless the context otherwise requires, any reference to an “Article” or a
“Section”, or to an “Annex” or a “Schedule”, refers to an Article or Section of, or to an
Annex or a Schedule attached to, this Indenture, as the case may be;

     (5) unless the context otherwise requires, any reference to a statute, rule or
regulation refers to the same (including any successor statute, rule or regulation thereto)
as it may be amended from time to time;

     (6) “including” means including without limitation; and

 

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

     (b) Certain terms, used principally in Article VI, are defined in that Article. Other terms
are defined as follows:

     “Acquired Debt” means Debt of a Person existing at the time such Person became a Subsidiary
and not Incurred in connection with, or in contemplation of, such Person becoming a Subsidiary.

     “Additional Amounts” has the meaning specified in Section 10.15.

     “Additional Securities” means any additional Securities that may be issued under a
supplemental indenture after the date that the Securities are first issued by the Company and
authenticated by the Trustee under this Indenture, which shall rank pari passu with the Securities
initially issued in all respects.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall
be deemed to be control. For purposes of this definition, the terms “controlling”, “controlled by”
and “under common control with” have meanings correlative to the foregoing.

     “Agent Members” means members of, or direct participants in, the United States Depository.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.14 to
act on behalf of the Trustee to authenticate Securities.

     “Board of Directors” means either the board of directors of the Company or any duly authorized
committee of that board authorized to act for it in respect thereof.

     “Board Resolution” means a copy of a resolution certified by the Corporate Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification, and delivered to the Trustee.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in the City of New York, New York or such other city in which the
Corporate Trust Office of the Trustee is located, are authorized or obligated by law, regulation or
executive order to close.

     “Capitalized Lease” means, as applied to any Person, any lease of any property (whether real,
personal or mixed) of which the discounted present value of the rental obligations of such Person,
as lessee, in conformity with GAAP, is required to be capitalized on the balance sheet of such
Person; and “Capitalized Lease Obligation” is defined to mean the rental obligations, as aforesaid,
under such lease.

     “Capital Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital stock or ownership interests, whether outstanding prior to or issued after the
date of this Indenture, including, without limitation, all Common Stock and Preferred Stock.

     “Change of Control” has the meaning specified in Section 10.09(b)(1).

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

     “Clearstream” means Clearstream Banking, S.A.

2

 

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

     “Common Stock” of any Person means Capital Stock of such Person that does not rank prior, as
to the payment of dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding up of such Person, to shares of Capital Stock of any other
class of such Person.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company (or its successor Person) by its Chief Executive Officer, its President or a
Vice-President, and by its Chief Financial Officer, its Vice President, Finance, its Treasurer, an
Assistant Treasurer, its Controller, its Corporate Secretary or an Assistant Secretary, and
delivered to the Trustee.

     “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a Maturity comparable to the remaining term of the
Securities that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable Maturity to
the remaining term of the Securities.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) on the third Business Day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal Reserve Bank of New
York and designated “H.15 (519) Selected Interest Rates” or (ii) if such release (or any successor
release) is not published or does not contain such prices on such Business Day, (A) the average of
the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations for such Redemption Date, or (B) if the Trustee
obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
Reference Treasury Dealer Quotations.

     “Corporate Trust Office” means the corporate trust office of the Trustee or its affiliate at
which at any particular time its corporate trust business may be administered and any additional
office it may designate in writing to the Company. At the date of this Indenture, the Corporate
Trust Office of the Trustee is located at 700 S. Flower St., Suite 500, Los Angeles, CA 90014,
Attention: Corporate Trust Administration.

     “corporation” means a corporation, association, company, joint-stock company, limited
liability company, partnership or business trust.

     “Currency Agreement” means any foreign exchange contract, currency swap agreement or other
similar agreement or arrangement designed to protect the Company or any of its Subsidiaries against
fluctuations in currency values to or under which the Company or any of its Subsidiaries is a party
or a beneficiary on the date of this indenture or becomes a party or a beneficiary thereafter.

     “Debt” means, with respect to any Person at any date of determination (without duplication):

     (1) all debt of such Person for borrowed money,

     (2) all obligations of such Person evidenced by bonds, debentures, notes or other similar
instruments,

     (3) all obligations of such Person in respect of letters of credit or other similar
instruments (including reimbursement obligations with respect thereto),

3

 

     (4) all obligations of such Person to pay the deferred purchase price of property or services,
which purchase price is due more than six months after the date of placing such property in service
or taking delivery thereto or the completion of such services, except trade payables,

     (5) all obligations of such Person as lessee under Capitalized Leases,

     (6) all Debt of Persons other than such Person secured by a Lien on any asset of such person,
whether or not such Debt is assumed by such Person; provided that the amount of such Debt shall be
the lesser of (A) the fair market value of such asset at such date of determination and (B) the
amount of such Debt,

     (7) all Debt of Persons other than such Person guaranteed by such Person to the extent such
Debt is guaranteed by such Person, and

     (8) to the extent not otherwise included in this definition, obligations under Currency
Agreements and Interest Rate Agreements.

     The amount of Debt of any Person at any date shall be the outstanding balance at such date of
all unconditional obligations as described above and, with respect to contingent obligations, the
maximum liability upon the occurrence of the contingency giving rise to the obligation, provided
that the amount outstanding at any time of any Debt issued with original issue discount is the face
amount of such Debt less the remaining unamortized portion of the original issue discount of such
Debt at such time as determined in conformity with GAAP; and provided further that Debt shall not
include any liability for federal, state, local, foreign or other taxes.

     “default” has the meaning specified in Section 6.02.

     “Defaulted Interest” has the meaning specified in Section 3.07.

     “Disqualified Equity Interests” of any Person means any class of Equity Interests of such
Person that, by its terms, or by the terms of any related agreement or of any security into or for
which it is convertible, puttable or exchangeable, is, or upon the happening of any event or the
passage of time would be, required to be redeemed by such Person, whether or not at the option of
the holder thereof, or matures or is mandatorily redeemable, pursuant to a sinking fund obligation
or otherwise, in whole or in part, on or prior to the date which is 91 days after the final
maturity date of the Securities; provided, however, that any class of Equity Interests of such
Person that, by its terms, authorizes such Person to satisfy in full its obligations with respect
to the payment of dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise)
or repurchase thereof or otherwise by the delivery of Equity Interests that are not Disqualified
Equity Interests, and that is not convertible, puttable or exchangeable into or for Disqualified
Equity Interests or Debt, will not be deemed to be Disqualified Equity Interests so long as such
Person satisfies its obligations with respect thereto solely by the delivery of Equity Interests
that are not Disqualified Equity Interests; provided, further, however, that any Equity Interests
that would not constitute Disqualified Equity Interests but for provisions thereof giving holders
thereof (or the holders of any security into or for which such Equity Interests are convertible,
exchangeable or exercisable) the right to require the Company to redeem such Equity Interests upon
the occurrence of a change in control occurring prior to the 91st day after the final maturity date
of the Securities shall not constitute Disqualified Equity Interests if the change of control
provisions applicable to such Equity Interests are no more favorable to such holders than
provisions of Section 10.09, and such Equity Interests specifically provide that the Company will
not redeem any such Equity Interests pursuant to such provisions prior to the Company’s purchase of
the notes as required pursuant to the provisions of Section 10.09.

     “Equity Interests” of any Person means (1) any and all shares and other equity interests
(including common stock, preferred stock, limited liability company interests and partnership
interests) in such person and (2) all rights to purchase, warrants or options (whether or not
currently exercisable), participations or other equivalents of or interests in (however designated)
such shares or other interests in such Person.

4

 

     “Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear System.

     “Event of Default” has the meaning specified in Section 5.01.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor act
thereto.

     “Expiration Date” has the meaning specified in Section 1.04.

     “generally accepted accounting principles” and “GAAP” mean generally accepted accounting
principles in the United States as in effect as of the date of this Indenture, including, without
limitation, those set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other entity as approved
by a significant segment of the accounting profession.

     “Global Security” means a Security that is registered in the Security Register in the name of
the United States Depository or its nominee.

     “Governing Board Members” means the individuals serving as members of the protectorate or
governing boards of (x) the Trust or its trustee or (y) if the individuals serving as members of
the protectorate or governing boards of the Trust or its trustee immediately prior to any
restructuring or dissolution of the Trust or any transfer of Capital Stock of the Company held
directly or indirectly thereby represent at least a majority of the members of the protectorate or
governing board of the Trust (or trustee thereof) or other entity replacing the Trust as a direct
or indirect owner of all, or substantially all, of the Capital Stock of the Company held directly
or indirectly by the Trust immediately prior to such restructuring, dissolution or transfer, such
replacement trust (or its trustee) or entity, together with any new members whose election or
appointment was approved by at least two-thirds of the members of such board.

     “Gradation” means a gradation within a Rating Category or a change to another Rating Category,
which shall include:

     (1) “+” and “-” in the case of S&P’s current Rating Categories (e.g., a decline from BB+ to BB
would constitute a decrease of one gradation),

     (2) 1 and 2 in the case of Moody’s current Rating Categories (e.g., a decline from B1 to B2
would constitute a decrease of one gradation), or

     (3) the equivalent in respect of successor Rating Categories of S&P or Moody’s or Rating
Categories used by Rating Agencies other than S&P and Moody’s.

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

     “Incur” means with respect to any Debt, to incur, create, issue, assume, guarantee or
otherwise become liable for or with respect to, or become responsible for, the payment of,
contingently or otherwise, such Debt, including an incurrence of Acquired Debt by reason of the
acquisition of more than 50% of the Capital Stock of any Person; provided that neither the accrual
of interest nor the accretion of original issue discount shall be considered an Incurrence of Debt.

     “Indenture” means this instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof.

     “Independent Investment Banker” means J.P. Morgan Securities Inc. or its successor or, if such
firm is unwilling or unable to select the Comparable Treasury Issue, one of the remaining Reference
Treasury Dealers appointed by the Company.

5

 

     “Interest Payment Date” has the meaning specified in Section 2.02.

     “Interest Rate Agreement” means any interest rate protection agreement, interest rate future
agreement, interest rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement
or arrangement designed to protect the Company or any of its Subsidiaries against fluctuations in
interest rates to or under which the Company or any of its Subsidiaries is a party or a beneficiary
on the date hereof or becomes a party or a beneficiary hereafter.

     “Investment Grade” means:

     (1) BBB- or above in the case of S&P (or its equivalent under any successor Rating Categories
of S&P);

     (2) Baa3 or above, in the case of Moody’s (or its equivalent under any successor Rating
Categories of Moody’s); and

     (3) the equivalent in respect of the Rating Categories of any Rating Agencies substituted for
S&P or Moody’s.

     “Kattegat” means Kattegat Limited, a Bermudian exempt company, which on the date of this
Indenture is wholly owned by the Trust.

     “Lien” means, any mortgage, lien, pledge, security interest, encumbrance or charge of any kind
(including, without limitation, any conditional sale or other title retention agreement or lease in
the nature thereof, any sale with recourse against the seller or any Affiliate of the seller, or
any agreement to give any security interest).

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

     “Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its
successors.

     “Notice of Default” means a written notice of the kind specified in Section 5.01(a)(4).

     “Offer” has the meaning specified in the definition of Offer to Purchase.

     “Offer Expiration Date” has the meaning specified in the definition of Offer to Purchase.

     “Offer to Purchase” means a written offer (the “Offer”) pursuant to Section 10.09 sent by the
Company by first class mail, postage prepaid, to each Holder at his address appearing in the
Security Register on the date of the Offer offering to purchase all Outstanding Securities at the
purchase price specified in such Offer (as determined pursuant to this Indenture). Unless
otherwise required by applicable law, the Offer shall specify an expiration date (the “Offer
Expiration Date”) of the Offer to Purchase which shall be, subject to any contrary requirements of
applicable law, not less than 30 days or more than 60 days after the date of such Offer and a
settlement date (the “Purchase Date”) for purchase of Securities within five Business Days after
the Offer Expiration Date. The Company shall notify the Trustee at least 15 Business Days (or such
shorter period as is acceptable to the Trustee) prior to the mailing of the Offer of the Company’s
obligation to make an Offer to Purchase, and the Offer shall be mailed by the Company or, at the
Company’s request, by the Trustee in the name and at the expense of the Company. The Offer shall
contain information concerning the business of the Company and its Subsidiaries which the Company
in good faith believes will enable such Holders of the Securities to make an informed decision with
respect to the Offer to Purchase (which at a minimum will include):

6

 

     (1) the most recent annual and quarterly financial statements and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” contained in the documents required to
be filed with the Trustee pursuant to this Indenture (which requirements may be satisfied by
delivery of such documents together with the Offer),

     (2) a description of material developments in the Company’s business subsequent to the date of
the latest of such financial statements referred to in clause (1) (including a description of the
events requiring the Company to make the Offer to Purchase),

     (3) if applicable, appropriate pro forma financial information concerning the Offer to
Purchase and the events requiring the Company to make the Offer to Purchase and

     (4) any other information required by applicable law to be included therein.

     The Offer shall contain all instructions and materials necessary to enable such Holders of the
Securities to tender Securities pursuant to the Offer to Purchase. The Offer shall also state:

     (1) the Offer to Purchase is being made pursuant to Section 10.09 of the Indenture;

     (2) the Expiration Date and the Purchase Date;

     (3) the aggregate principal amount of the Outstanding Securities offered to be purchased by
the Company pursuant to the Offer to Purchase (the “Purchase Amount”);

     (4) the purchase price to be paid by the Company for each U.S.$1,000 aggregate principal
amount of Securities accepted for payment (as specified pursuant to this Indenture) (the “Purchase
Price”);

     (5) that the Holder may tender all or any portion of the Securities registered in the name of
such Holder and that any portion of a Security tendered must be tendered in a minimum denomination
of U.S.$2,000 principal amount and integral multiples of U.S.$1,000 principal amount in excess
thereof;

     (6) the place or places where Securities are to be surrendered for tender pursuant to the
Offer to Purchase;

     (7) that interest on any Security not tendered or tendered but not purchased by the Company
pursuant to the Offer to Purchase will continue to accrue;

     (8) that on the Purchase Date, the Purchase Price will become due and payable upon each
Security being accepted for payment pursuant to the Offer to Purchase and that interest thereon
shall cease to accrue on and after the Purchase Date;

     (9) that each Holder of the Securities electing to tender a Security pursuant to the Offer to
Purchase will be required to surrender such Security at the place or places specified in the Offer
prior to the close of business on the Expiration Date (such Security being, if the Company or the
Trustee so requires, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing);

     (10) that Holders of the Securities will be entitled to withdraw all or any portion of
Securities tendered if the Company (or its Paying Agent) receives, not later than the close of
business on the Expiration Date, a telegram, telex, facsimile transmission or letter setting forth
the name of the Holder, the principal amount of the Security the Holder tendered, the certificate
number of the Security the Holder tendered and a statement that such Holder is withdrawing all or a
portion of his tender;

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     (11) that (a) if Securities in an aggregate principal amount less than or equal to the
Purchase Amount are duly tendered and not withdrawn pursuant to the Offer to Purchase, the Company
shall purchase all such Securities and (b) if Securities in an aggregate principal amount in excess
of the Purchase Amount are tendered and not withdrawn pursuant to the Offer to Purchase, the
Company shall purchase Securities having an aggregate principal amount equal to the Purchase Amount
on a pro rata basis (with such adjustments as may be deemed appropriate so that only Securities in
denominations of $2,000 or integral multiples of $1,000 in excess thereof shall be purchased); and

     (12) that in the case of any Holder whose Security is purchased only in part, the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Security or Securities, of any authorized denomination as requested
by such Holder, in an aggregate principal amount equal to and in exchange for the unpurchased
portion of the Security so tendered.

     Any Offer to Purchase shall be governed by and effected in accordance with the Offer for such
Offer to Purchase. The Trustee shall have no duty, obligation or responsibility to review, comment
upon or approve the Offer to Purchase and any comments with respect thereto by the Trustee shall
not be deemed to expand the scope of the Trustee’s duties and obligations hereunder.

     “Officers’ Certificate” means a certificate signed by the Chief Executive Officer, the
President or a Vice President, and by the Chief Financial Officer, the Vice President, Finance, the
Treasurer, an Assistant Treasurer, the Controller, the Corporate Secretary or an Assistant
Secretary, of the Company, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company,
including an employee of the Company, and who shall be reasonably acceptable to the Trustee.

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

     (1) Securities theretofore cancelled by the Trustee or delivered to the Trustee for
cancellation;

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

     (3) Securities, except to the extent provided in Sections 12.02 and 12.03, with respect to
which the Company has effected defeasance and/or covenant defeasance as provided in Article XII;
and

     (4) Securities which have been paid pursuant to Section 3.06 or in exchange for or in lieu of
which other Securities have been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver or other action, only
Securities which the Trustee knows to be so owned by written notice delivered at its notice address
specified in Section 1.05

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hereof, shall be so disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s
right so to act with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

     “pari passu”, when used with respect to the ranking of any Debt of any Person in relation to
other Debt of such Person, means that each such Debt (a) either (i) is not subordinated in right of
payment to any other Debt of such Person or (ii) is subordinate in right of payment to the same
Debt of such Person as is the other and is so subordinate to the same extent and (b) is not
subordinate in right of payment to the other or to any Debt of such Person as to which the other is
not so subordinate.

     “Path” means Path Spirit Limited, an English company limited by guarantee which is the trust
protector of the Trust.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities on behalf of the Company, which initially shall be
the Trustee.

     “Permitted Holder” means the Trust, a majority of the Governing Board Members (each in his or
her capacity as a Governing Board Member), or any other entity (including Resolute, Kattegat and
Path), more than 50% of the total voting power of the Voting Stock or other controlling interest of
which is, at the time of any transfer of Capital Stock of the Company by the Trust or any such
other entity, “beneficially owned” by the Trust or by a majority of the Governing Board Members
(each in his or her capacity as a Governing Board Member).

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

     “Predecessor Securities” of any particular Securities means one or more previous Securities
evidencing all or a portion of the same debt as that evidenced by such particular Securities; and,
for the purposes of this definition, one or more Securities authenticated and delivered under
Section 3.06 in exchange for or in lieu of one or more mutilated, destroyed, lost or stolen
Securities shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Securities.

     “Preferred Stock” of any Person means Capital Stock of such Person of any class or classes
(however designated) that ranks prior, as to the payment of dividends or as to the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up of such Person, to
shares of Capital Stock of any other class of such Person.

     “Purchase Amount” has the meaning specified in the definition of Offer to Purchase.

     “Purchase Date” has the meaning specified in the definition of Offer to Purchase.

     “Purchase Price” has the meaning specified in the definition of Offer to Purchase.

     “Qualified Equity Interests” of any Person means Equity Interests of such Person other than
Disqualified Equity Interests; provided that such Equity Interests shall not be deemed Qualified
Equity Interests to the extent sold or owed to a Subsidiary of such Person or financed, directly or
indirectly, using funds (1) borrowed from such Person or any Subsidiary of such Person until and to
the extent such borrowing is repaid or (2) contributed, extended, guaranteed or advanced by such
Person or any Subsidiary of such Person (including, without limitation, in respect of any employee
stock ownership or benefit plan). Unless otherwise specified, Qualified Equity Interests refer to
Qualified Equity Interests of the Company.

     “Qualified Equity Offering” means the issuance and sale of Qualified Equity Interests of the
Company to Persons other than any Person who is, prior to such issuance and sale, an Affiliate of
the Company which proceeds are contributed to the Company; provided, however, that cash proceeds

9

 

therefrom equal to not less than the Redemption Price of the Securities to be redeemed are
received by the Company as a capital contribution immediately prior to such redemption.

     “Rating Agencies” means:

     (1) S&P and Moody’s; or

     (2) if S&P or Moody’s or both of them are not making ratings of the Securities publicly
available, a nationally recognized United States rating agency or agencies, as the case may be,
selected by the Company, which will be substituted for S&P or Moody’s or both, as the case may be.

     “Rating Category” means:

     (1) with respect to S&P, any of the following categories (any of which may include a “+” or
“-”): AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories);

     (2) with respect to Moody’s, any of the following categories: Aaa, Aa, A, Baa, Ba, B, Caa,
Ca, C and D (or equivalent successor categories); and

     (3) the equivalent of any such categories of S&P or Moody’s used by another Rating Agency, if
applicable.

     “Rating Decline” means that at any time within 90 days (which period shall be extended so long
as the rating of the Securities is under publicly announced consideration for possible downgrade by
any Rating Agency) after the date of public notice of a Change of Control, or of the intention of
the Company or of any person to effect a Change of Control, the rating of the Securities is
decreased by both Rating Agencies by one or more Gradations and the rating by such Rating Agencies
on the Securities following such downgrade is below Investment Grade.

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

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

     “Reference Treasury Dealer” means (i) each of J.P. Morgan Securities Inc. and any other
primary United States Government Securities dealer in New York City (a “Primary Treasury Dealer”)
designated by, and not affiliated with, J.P. Morgan Securities Inc., provided however, that if J.P.
Morgan Securities Inc. or any of its designees shall cease to be a Primary Treasury Dealer, the
Company will appoint another Primary Treasury Dealer as a substitute for such entity and (ii) any
other Primary Treasury Dealer selected by the Company.

     The Company shall appoint each Reference Treasury Dealer and shall timely furnish the Trustee
with detailed contact information for each such Person that shall include the relevant name,
telephone number and fax number and street and e-mail address.

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

     “Regular Record Date” has the meaning specified in Section 2.02.

     “Relevant Debt” means any Debt for borrowed money in the form of bonds, notes, debentures or
other Debt securities issued by way of public offering or private placement, including any
guarantee or indemnity given in respect of debt of any third party for money borrowed in the form
of bonds, notes,

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debentures or other Debt securities issued by way of a public offering or private placement,
but, for greater clarity, shall not include loans (or collateral debt securities relating to such
loans) made by banks or other financial institutions, customers or strategic partners.

     “Reporting Failure” means the failure of the Company to file or furnish with the Commission
and furnish to the Trustee and each Holder of Securities, within the time periods specified in
Section 10.10 (after giving effect to any grace period specified under Rule 12b-25 under the
Exchange Act), the reports and information which the Company may be required to file or furnish
with the Commission pursuant to such provision.

     “Resolute” means Resolute Investments, Ltd., a Bermudian exempt company, which on the date of
this Indenture is wholly owned by Kattegat.

     “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
trust officer or any other officer or authorized associate of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be such officers,
respectively, or to whom any corporate trust matter is referred because of such person’s knowledge
of and familiarity with the particular subject and who shall have direct responsibility for the
administration of this Indenture.

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

     “Securities Act” means the United States Securities Act of 1933, as amended, and (unless the
context otherwise requires) includes the rules and regulations of the Commission promulgated
thereunder.

     “Security” and “Securities” have the meaning set forth in the first recital of this Indenture
and more particularly means any Securities authenticated and delivered under this Indenture. For
all purposes of this Indenture, the term “Securities” shall include any Additional Securities that
may be issued under a supplemental indenture and, for purposes of this Indenture, both the
Securities and the Additional Securities shall vote together as one series of Securities under this
Indenture.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.05.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.07.

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

     “Subsidiary” means, with respect to the Company, any business entity of which more than 50% of
the outstanding Voting Stock is owned directly or indirectly by the Company and one or more other
Subsidiaries of the Company.

     “Successor Company” has the meaning specified in Section 8.02.

     “Successor Security” of any particular Security means every Security issued after, and
evidencing all or a portion of the same debt as that evidenced by, such particular Security; and
for the purposes of this definition, any Security authenticated and delivered under Section 3.06 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

     “Taxing Jurisdiction” means the Republic of The Marshall Islands or any jurisdiction from or
through which payment on the Securities is made, or any political subdivision thereof, or any
authority or agency therein or thereof having power to tax.

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     “Treasury Yield” means, with respect to any Redemption Date, the rate per year equal to the
semi-annual equivalent yield to Maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.

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

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as in force at the date
as of which this instrument was executed; provided, however, that in the event the Trust Indenture
Act of 1939 is amended after such date, “Trust Indenture Act” means, to the extent required by such
amendment, the Trust Indenture Act of 1939 as so amended.

     “Trust” means The Kattegat Trust, a Bermudian charitable trust, the trustee of which is
Kattegat Private Trustees (Bermuda) Limited.

     “United States” means the United States of America (including the States thereof and the
District of Columbia), its territories, its possessions and other areas subject to its
jurisdiction.

     “United States Depositary” means The Depository Trust Company until a successor United States
Depositary shall have become such pursuant to the applicable provisions of this Indenture, and
thereafter “United States Depositary” shall mean each successor United States Depositary.

     “U.S. Dollars” and “$” means such coin or currency of the United States which is legal tender
for payment of public and private debts.

     “United States Government Obligations” has the meaning specified in Section 12.04.

     “United States Government Securities” means securities that are direct obligations of the
United States, direct obligations of the Federal Home Loan Mortgage Corporation, direct obligations
of the Federal National Mortgage Association, securities which the timely payment of whose
principal and interest is unconditionally guaranteed by the full faith and credit of the United
States, trust receipts or other evidence of indebtedness of a direct claim upon the instrument
described above and money market mutual funds that invest solely in such securities.

     “Vice President”, when used with respect to the Company or the Trustee, means any vice
president, whether or not designated by a number or a word or words added before or after the title
“vice president”.

     “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the board of directors or similar governing body of
such Person.

SECTION 1.02 Compliance Certificates and Opinions.

     (a) Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate and
such other certificates and Opinions of Counsel as may be required under the Trust Indenture Act or
as set forth herein. Each such certificate, Opinion of Counsel or other expert opinion shall be
reasonably satisfactory in form and substance to the Trustee and shall include

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

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

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

     (4) a statement as to whether, in the opinion of each such individual, such condition
or covenant necessary for any action in the Trustee’s opinion has been complied with.

SECTION 1.03 Form of Documents Delivered to Trustee.

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

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

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

SECTION 1.04 Acts of Holders; Record Dates.

     (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given, made or taken by Holders may be embodied in
and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred
to as the “Act” of the Holders signing such instrument or instruments and the Holders bound
thereby. Proof of execution of any such instrument or of a writing appointing any such agent shall
be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor
of the Trustee and the Company, if made in the manner provided in this Section.

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

     (c) The ownership of Securities (including the principal amount and serial numbers of
Securities held by any Person, and the date of holding the same) shall be proved by the Security
Register.

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

     (e) The Company may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities entitled to give, make or take any request, demand, authorization,
direction, vote, notice, consent, waiver or other action provided or permitted by this Indenture to
be given, made or taken by Holders of Securities, provided that the Company may not set a record
date for, and the provisions of this paragraph shall not apply with respect to, the giving or
making of any notice, declaration, request or direction referred to in the next paragraph. If not
set by the Company prior to the first solicitation of a Holder made by any Person in respect of any
such matter referred to in the foregoing sentence, the record date for any such matter shall be the
30th day (or, if later, the date of the most recent list of Holders required to be provided
pursuant to Section 7.01) prior to such first solicitation. If any record date is set pursuant to
this paragraph, the Holders of Outstanding Securities on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders remain Holders after
such record date; provided that no such action shall be effective hereunder unless taken on or
prior to the applicable Expiration Date by Holders of the requisite principal amount of Outstanding
Securities on such record date. Nothing in this paragraph shall be construed to prevent the
Company from setting a new record date for any action for which a record date has previously been
set pursuant to this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the requisite principal amount of
Outstanding Securities on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice of such record
date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee
in writing and to each Holder of Securities in the manner set forth in Section 1.06.

     (f) The Trustee may set any day as a record date for the purpose of determining the Holders of
Outstanding Securities entitled to join in the giving or making of (1) any Notice of Default, (2)
any declaration of acceleration referred to in Section 5.02, (3) any request to institute
proceedings referred to in Section 5.07(b) or (4) any direction referred to in Section 5.12. If
any record date is set pursuant to this paragraph, the Holders of Outstanding Securities on such
record date, and no other Holders, shall be entitled to join in such notice, declaration, request
or direction, whether or not such Holders remain Holders after such record date; provided that no
such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities on such record date.
Nothing in this paragraph shall be construed to prevent the Trustee from setting a new record date
for any action for which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no action by any Person be
cancelled and of no effect), and nothing in this paragraph shall be construed to render ineffective
any action taken by Holders of the requisite principal amount of Outstanding Securities on the date
such action is taken. Promptly after any record date is set pursuant to this paragraph, the
Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder
of Securities in the manner set forth in Section 1.06.

     (g) With respect to any record date set pursuant to this Section, the party hereto which sets
such record date may designate any day as the “Expiration Date” and from time to time may change
the Expiration Date to any earlier or later day; provided that no such change shall be effective
unless notice of the proposed new Expiration Date is given to the other party hereto in writing,
and to each Holder of Securities in the manner set forth in Section 1.06, on or prior to the
existing Expiration Date. If an Expiration Date is not designated with respect to any record date
set pursuant to this Section, the party hereto which set such record date shall be deemed to have
initially designated the 180th day after such record date as the Expiration Date with respect
thereto, subject to its right to change the Expiration Date

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as provided in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

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

SECTION 1.05 Notices, Etc., to Trustee and Company.

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

     (a) the Trustee by any Holder or by the Company shall be sufficient for purposes other than
with respect to securities for payment or for registrations of transfer or exchange, if made,
given, furnished or filed in writing (or by facsimile transmissions to The Bank of New York Mellon
Trust Company, N.A., 700 S. Flower Street, Suite 500, Los Angeles, CA 90017 Attn: Corporate Trust
Administration, Telecopy: (213) 630-6298, provided that oral confirmation of receipt shall have
been received) to or with the Trustee at its Corporate Trust Office, Attention: Corporate Trust
Administration;

     (b) if, for purpose of Section 3.05 (with respect to securities for payment or for
registrations of transfer or exchange) to The Bank of New York Mellon, 111 Sanders Creek Parkway,
Syracuse, New York 13057; or

     (c) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing and mailed, international air
mail postage prepaid or by overnight air courier or by facsimile transmissions to the Company
addressed to it at the address of its principal executive office specified in the first paragraph
of this instrument, Telecopy: (441) 292-3931, provided that oral confirmation of receipt shall have
been received, Attention: General Counsel, with a copy to: Perkins Coie LLP, 1120 N.W. Couch
Street, Tenth Floor, Portland, Oregon 97209, Telecopy (503) 346-2008, Attn: David S. Matheson,
Esq., or at any other address or facsimile transmission number previously furnished in writing to
the Trustee by the Company.

     The foregoing means of communication shall be the exclusive means for properly giving the
foregoing requests, demands, authorizations, directions, notices, consents, waivers, Acts or other
documents to the Trustee, the Company or any Holder under this Section 1.05.

     All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

     Notwithstanding anything to the contrary herein, the Trustee agrees to accept and act upon
instructions or directions pursuant to this Indenture sent by facsimile transmission; provided,
however, that (a) the party providing such written instruction, after such transmission, promptly
provides the originally executed instruction or direction to the Trustee, (b) such originally
execute instruction or direction is signed by an authorized representative of the party providing
such instruction or direction and (c) such instructions or directions, if from the Company, shall
be accompanied by an incumbency certificate listing such authorized representative, which
incumbency certificate shall be amended whenever a person is to be added or deleted from the
listing.

SECTION 1.06 Notice to Holders; Waiver.

     (a) Where this Indenture provides for notice to Holders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage

15

 

prepaid, to each Holder affected by such event, at its address as it appears in the Security
Register, not later than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders. Where this
Indenture provides for notice in any manner, such notice may be waived in writing by the Person
entitled to receive such notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver.

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

     (c) Notwithstanding anything to the contrary contained herein, as long as the Securities are
in the form of a Global Security, notice to the Holders may be made electronically in accordance
with procedures of the Depositary.

SECTION 1.07 Conflict with Trust Indenture Act.

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

SECTION 1.08 Effect of Headings and Table of Contents.

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

SECTION 1.09 Successors and Assigns.

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

SECTION 1.10 Separability Clause.

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

SECTION 1.11 Benefits of Indenture.

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

SECTION 1.12 Governing Law.

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

16

 

SECTION 1.13 Legal Holidays.

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

SECTION 1.14 Consent to Service; Jurisdiction.

     (a) The Company and the Trustee agree that any legal suit, action or proceeding arising out of
or relating to this Indenture, and the Company agrees that any legal suit, action or proceeding
arising out of or relating to the Securities, may be instituted in any federal or state court in
the Borough of Manhattan, the City of New York, waives any objection which it may now or hereafter
have to the laying of the venue of any such legal suit, action or proceeding, waives any immunity
from jurisdiction or to service of process in respect of any such suit, action or proceeding, and
irrevocably submits to the exclusive jurisdiction of any such court in any such suit, action or
proceeding.

     (b) The Company hereby designates and appoints Watson, Farley & Williams (New York) LLP, New
York, New York as its authorized agent upon which process may be served in any legal suit, action
or proceeding arising out of or relating to this Indenture or the Securities which may be
instituted in any federal or state court in the Borough of Manhattan, The City of New York, New
York, and agrees that service of process upon such agent, and written notice of said service to the
Company by the Person serving the same, shall be deemed in every respect effective service of
process upon the Company in any such suit, action or proceeding and further designates its
domicile, the domicile of New York, New York specified above and any domicile it may have in the
future as its domicile to receive any notice hereunder (including service of process). Service of
process, to be effective upon the Trustee, must be served at the Trustee’s Corporate Trust Office
in The City of New York. If for any reason Watson, Farley & Williams (New York) LLP, New York, New
York (or any successor agent for this purpose) shall cease to act as agent for service of process
as provided above, the Company will promptly appoint a successor agent for this purpose reasonably
acceptable to the Trustee, and provide written notice of such appointment to the Trustee in the
manner provided herein. The Company agrees to take any and all actions as may be necessary to
maintain such designation and appointment of such agent in full force and effect.

SECTION 1.15 Conversion of Currency.

     The Company covenants and agrees that the following provisions shall apply to conversion of
currency in the case of the Securities and this Indenture in the event the Company is in default
under the terms of this Indenture:

     (a) If for the purpose of obtaining judgment in, or enforcing the judgment of, any court in
any country, it becomes necessary to convert into a currency (the “judgment currency”) an amount
due in U.S. Dollars, then the conversion shall be made at the rate of exchange prevailing on the
Business Day before the day on which the judgment is given or the order of enforcement is made, as
the case may be (unless a court shall otherwise determine).

     (b) If there is a change in the rate of exchange prevailing between the Business Day before
the day on which the judgment is given or an order of enforcement is made, as the case may be (or
such other date as a court shall determine), and the date of receipt of the amount due, the Company
will pay such additional amount (or, as the case may be, be refunded such lesser amount), if any,
as may be necessary so that the amount paid in the judgment currency when converted at the rate of
exchange prevailing on the date of receipt will produce the amount in U.S. Dollars originally due.

17

 

     (c) In the event of the winding-up of the Company at any time while any amount or damages
owing under the Securities of this Indenture, or any judgment or order rendered in respect thereof,
shall remain outstanding, the Company shall indemnify and hold the Holders and the Trustees
harmless against any deficiency arising or resulting from any variation in rates of exchange
between (1) the date as of which the equivalent of the amount in U.S. Dollars due or contingently
due under the Securities and this Indenture (other than under this Subsection (c)) is calculated
for the purposes of such winding-up and (2) the final date for the filing of proofs of claim in
such winding-up. For the purpose of this Subsection (c), the final date for the filing of proofs
of claim in the winding-up of the Company shall be the date fixed by the liquidator or otherwise in
accordance with the relevant provisions of applicable law as being the latest practicable date as
at which liabilities of the Company may be ascertained for such winding-up prior to payment by the
liquidator or otherwise in respect thereto.

     (d) The obligations contained in Subsections (b) and (c) of this Section 1.15 shall constitute
separate and independent obligations of the Company from its other obligations under the Securities
and this Indenture, shall give rise to separate and independent causes of action against the
Company, shall apply irrespective of any waiver or extension granted by any Holders or the Trustees
or any of them from time to time and shall continue in full force and effect notwithstanding any
judgment or order or the filing of any proof of claim in the winding-up of the Company for a
liquidated sum in respect of amounts due hereunder (other than under subsection (c) above) or under
any such judgment or order. Any such deficiency as aforesaid shall be deemed to constitute a loss
suffered by the Holders or the Trustee, as the case may be, and no proof or evidence of any actual
loss shall be required by the Company or the liquidator or otherwise or any of them which shall be
liable for such deficiency. In the case of Subsection (c) above, the amount of such deficiency
shall not be deemed to be reduced by any variation in rates of exchange occurring between the said
final date and the date of any liquidating distribution.

     (e) The term “rate(s) of exchange” shall mean the rate of exchange pursuant to the Noon Day
Buying Rate quoted by the Federal Reserve Bank of New York or, if such rate is not then available
therefrom, the WM/Reuters Intraday Spot Rate quoted by WM/Reuters or any similar rate of exchange
quoted by a successor exchange rate service at 12:00 noon (New York City time) for the purchase of,
or conversion into, U.S. Dollars from the judgment currency other than U.S. Dollars referred to in
subsections (a) and (c) above and includes any premiums and costs of exchange payable.

     (f) The Trustee shall have no duty or liability with respect to monitoring or enforcing this
Section 1.15 and shall have no liability to the Holders due to fluctuations in currency rates.

ARTICLE II

FORMS OF SECURITY

SECTION 2.01 Forms Generally.

     (a) The Securities and the Trustee’s certificates of authentication shall be in substantially
the forms set forth in this Article, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or as may, consistently herewith, be determined
by the officers executing such Securities, as evidenced by their execution of the Securities.

     (b) The definitive Securities shall be printed, lithographed or engraved or produced by any
combination of these methods on steel engraved borders or may be produced in any other manner,
provided that such manner is permitted by the rules of any securities exchange on which the
Securities may be listed, all as determined by the officers executing such Securities, as evidenced
by their execution of such Securities.

     (c) In certain cases described elsewhere herein, the legends set forth in the first and second
paragraphs of Section 2.02 may be omitted from Securities issued hereunder.

18

 

SECTION 2.02 Form of Face of Security.

     [INCLUDE IF SECURITY IS A GLOBAL SECURITY — THIS SECURITY IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN
PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN
WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]

     [INCLUDE IF SECURITY IS A GLOBAL SECURITY AND THE DEPOSITORY
TRUST COMPANY IS THE UNITED STATES DEPOSITARY — UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, 55 WATER STREET, NEW YORK, NEW YORK 10004,
TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF CEDE & CO., AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

TEEKAY CORPORATION

8.5% Senior Notes due January 15, 2020

			
	 	 	 
	CUSIP NO.87900YAA1

No. ___
	 	ISIN NO. US87900YAA10

$___

     Teekay Corporation, a corporation duly domesticated and existing under the laws of the
Republic of The Marshall Islands (herein called the “Company”, which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to
___, or registered assigns, the principal sum of ___U.S. Dollars [IF THE SECURITY IS
A GLOBAL SECURITY, THEN INSERT -, which principal sum may from time to time be increased or
decreased to such other principal sum at maturity, as may be set forth in the records of the
Trustee hereinafter referred to in accordance with the Indenture,] on January 15, 2020, and to pay
interest thereon at a rate of 8.5% per annum in cash semi-annually to the Holder of record at the
close of business on January 1 and July 1, as the case may be (the “Regular Record Date”),
immediately preceding the applicable Interest Payment Date, on January 15 and July 15 of each year
(the “Interest Payment Dates”), commencing on July 15, 2010. The Company shall pay interest at a
rate of 8.5% plus 1% per annum on any principal, premium, if any, and any installment of interest
which is overdue (to the extent that the payment of interest shall be legally enforceable),
including post-petition interest in any proceeding under any applicable federal or state
bankruptcy, insolvency or similar law, from the dates such amounts are due until such amounts are
paid.

     Any interest not punctually paid as provided in the Indenture will forthwith cease to be
payable to the Holder on such Regular Record Date and may either (i) be paid by the Company to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business

19

 

on a Special Record Date for the payment of such Defaulted Interest to be fixed by the
Company, notice of which states the Special Record Date, the payment date (which shall be not less
than five nor more than 10 days after the Special Record Date), and the amount to be paid, and such
notice shall be given to Holders of Securities not less than 10 days prior to such Special Record
Date, or (ii) be paid by the Company at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in said Indenture. Interest
on this Security shall be computed on the basis set forth in the Indenture.

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the
City of New York, in such coin or currency of the United States as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the option of the
Company, payment of interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.

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

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

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

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	 	TEEKAY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	Attest:
	 	 	 	 
	 

	 	 

	 	 

SECTION 2.03 Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the Company designated as its
8.5% Senior Notes due January 15, 2020 (herein called the “Securities”), issued and to be issued
under an indenture dated as of January 27, 2010 (herein called the “Indenture”), between the
Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the
“Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered.

     As provided for in the Indenture, the Company may, subject to certain limitations, from time
to time, without notice or other consent of the Holders, create and issue Additional Securities
ranking pari passu with the Securities issued the date hereof so that such Additional Securities
shall be consolidated and form a single series with the Securities initially issued by the Company
and shall have the same terms as to status, redemption or otherwise as Securities originally
issued. Any Additional Securities shall be issued with the benefit of any indenture supplemental
to the Indenture.

     At the Company’s option, the Company may redeem the Securities in whole or in part at any time
at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities to
be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal
and interest on the Securities to be redeemed (excluding the portion of any such interest accrued
to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a
360-day year

20

 

consisting of twelve 30-day months) at the Treasury Yield, plus 50 basis points, plus, in each
case, accrued and unpaid interest to the Redemption Date.

     The Securities shall be subject to redemption, at the option of the Company, as a whole but
not in part, at any time upon not fewer than 30 nor more than 60 days’ notice mailed to each Holder
of Securities at the addresses appearing in the Security Register at a Redemption Price equal to
100% of the principal amount of the Securities plus accrued interest to but excluding the
Redemption Date if the Company has become or would become obligated to pay on the next date on
which any amount would be payable under or with respect to the Securities, any Additional Amounts
as a result of any change or amendment to the laws (including any regulations promulgated
thereunder) of any Taxing Jurisdiction, or any change in or amendment to any official position
regarding the application or interpretation of such laws or regulations, which change or amendment
is announced or becomes effective on or after January 27, 2010.

     At any time or from time to time prior to January 15, 2013, the Company, at its option, may
redeem up to 35% of the aggregate principal amount of the Securities issued under the Indenture
with the net cash proceeds of one or more Qualified Equity Offerings at a Redemption Price equal to
108.5% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest
thereon, if any, to the Redemption Date; provided that (1) at least 65% of the aggregate principal
amount of Securities issued under the Indenture remains outstanding immediately after the
occurrence of such redemption and (2) the redemption occurs within 60 days of the date of the
closing of any such Qualified Equity Offering.

     If less than all of the Securities are to be redeemed at any time, the Trustee shall select
the Securities to be redeemed by such method as the Trustee shall deem fair and appropriate in the
aggregate principal amount specified by the Company. The Trustee may select for redemption
Securities and portions of Securities in amounts of U.S.$2,000 or whole multiples of U.S.$1,000 in
excess thereof.

     In the event of redemption or purchase pursuant to an Offer to Purchase of this Security in
part only, a new Security or Securities for the unredeemed or unpurchased portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.

     If an Event of Default (other than certain bankruptcy or insolvency Events of Default) shall
occur and be continuing, the entire unpaid principal amount of, premium, if any, accrued interest
on all the Outstanding Securities may be declared due and payable in the manner and with the effect
provided in the Indenture. If a bankruptcy or insolvency Event of Default occurs, the entire
unpaid principal amount of, premium, if any, and accrued interest on, all the Outstanding
Securities will be immediately due any payable without any declaration or other act on the part of
the Trustee or any Holder.

     The Indenture provides that, subject to certain conditions, if a Change of Control Triggering
Event occurs, the Company shall be required to make an Offer to Purchase for all or a specified
portion of the Securities.

     The Indenture contains provisions for defeasance at any time of (i) the entire indebtedness of
this Security or (ii) certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth therein.

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

21

 

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal amount of (and premium, if any) and interest on this Security at the times, place and
rate, and in the coin or currency, herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in the Borough of Manhattan,
the City of New York, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities are issuable only in registered form without coupons in principal amounts of
U.S.$2,000 at maturity and any integral multiple of U.S.$1,000 in excess thereof. As provided in
the Indenture and subject to certain limitations therein set forth, Securities are exchangeable for
a like aggregate principal amount of Securities of a different authorized denomination, as
requested by the Holder surrendering the same.

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

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

     Interest on this Security shall be computed on the basis of a 360-day year of twelve 30-day
months.

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

     The Indenture and this Security shall be governed by and construed in accordance with the laws
of the State of New York.

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Security purchased in its entirety by the Company pursuant
to Section 10.09 of the Indenture, check the box: o

     If you want to elect to have only a part of this Security purchased by the Company pursuant to
Section 10.09 of the Indenture, state the amount (which must be in denominations of $2,000 or
integral multiples of U.S.$1,000 in excess thereof):

$____________

	 	 	 	 	 	 	 
	Dated:

	 	 	 	Your Signature:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Sign exactly as name appears on the other side of
this Security)
	 

	 	 	 	Signature Guarantee:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(Signature must be guaranteed by a member firm of the New York Stock Exchange or a
commercial bank or trust company)

22

 

SECTION 2.04 Form of Trustee’s Certificate of Authentication.

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

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

	 	 	 	 	 
	 	THE BANK OF NEW YORK MELLON TRUST

COMPANY, N.A., not
in its individual capacity but solely as Trustee

 
	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

ARTICLE III

THE SECURITIES

SECTION 3.01 Title and Terms.

     (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is not limited.

     (b) The Securities shall be known and designated as the “8.5% Senior Notes due January 15,
2020” of the Company. Their Stated Maturity shall be January 15, 2020 and they shall bear interest
thereon at a rate of 8.5% per annum in cash semi-annually to the Holder of record at the close of
business on the Regular Record Date immediately preceding the applicable Interest Payment Date, on
the Interest Payment Date, commencing on July 15, 2010.

     (c) The principal amount of (and premium, if any) and interest on the Securities shall be
payable at the office or agency of the Company in the Borough of Manhattan, City of New York, New
York maintained for such purpose or at any other office or agency maintained by the Company for
such purpose; provided, however, that at the option of the Company payment of interest may be made
by check mailed to the address of the Person entitled thereto as such address shall appear in the
Security Register.

     (d) The Securities shall be subject to repurchase by the Company pursuant to an Offer to
Purchase as provided in Section 10.09.

     (e) The Securities shall be redeemable as provided in Article XI.

     (f) The Securities shall be subject to defeasance at the option of the Company as provided in
Article XII.

     (g) Additional Securities ranking pari passu with the Securities issued the date hereof may be
created and issued from time to time by the Company without notice to or consent of the Holders and
shall be consolidated with and form a single series with the Securities initially issued and shall
have the same terms as to status, redemption or otherwise as the Securities originally issued. Any
Additional Securities shall be issued with the benefit of an indenture supplemental to this
Indenture.

SECTION 3.02 Denominations.

     The Securities shall be issuable only in registered form without coupons and only in principal
amounts of $2,000 at Maturity and any integral multiple of $1,000 in excess thereof.

23

 

SECTION 3.03 Execution, Authentication, Delivery and Dating.

     (a) The Securities shall be executed on behalf of the Company by its Chief Executive Officer,
its President, its Chief Financial Officer attested to by its Corporate Secretary or one of its
Assistant Secretaries. The signature of any of these officers on the Securities may be manual or
facsimile.

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

     (c) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities; and the Trustee in
accordance with the Company Order shall authenticate and deliver such Securities.

     (d) Each Security shall be dated the date of its authentication.

     (e) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder.

     (f) In case the Company, pursuant to Article VIII, shall be consolidated or merged with or
into any other Person or shall convey, transfer, lease or otherwise dispose of substantially all of
its properties and assets to any Person, and the successor Person resulting from such
consolidation, or surviving such merger, or into which the Company shall have been merged, or the
successor Person which shall have received a conveyance, transfer, lease or other disposition as
aforesaid, shall have executed an indenture supplemental hereto with the Trustee pursuant to
Article VIII, any of the Securities authenticated or delivered prior to such consolidation, merger,
conveyance, transfer, lease or other disposition may, from time to time, at the request of the
successor Person, be exchanged for other Securities executed in the name of the successor Person
with such changes in phraseology and form as may be appropriate, but otherwise in substance of like
tenor as the Securities surrendered for such exchange and of like principal amount; and the Trustee
upon Company Order of the successor Person, shall authenticate and deliver replacement Securities
as specified in such request for the purpose of such exchange. If replacement Securities shall at
any time be authenticated and delivered in any new name of a successor Person pursuant to this
Section in exchange or substitution for or upon registration of transfer of any Securities, such
successor Person, at the option of any Holder but without expense to such Holder, shall provide for
the exchange of all Securities at the time outstanding held by such Holder for Securities
authenticated and delivered in such new name.

SECTION 3.04 Temporary Securities.

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

     (b) If temporary Securities are issued, the Company will cause definitive Securities to be
prepared without unreasonable delay. After the preparation of definitive Securities, the temporary
Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section 10.02, without
charge to the Holder.

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Upon surrender for cancellation of any one or more temporary Securities the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount
of definitive Securities of authorized denominations. Until so exchanged the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as definitive
Securities.

SECTION 3.05 Registration; Registration of Transfer and Exchange.

     (a) Registration, Registration of Transfer and Exchange Generally.

     (1) The Company shall cause to be kept at the Corporate Trust Office of the Trustee a
register (the register maintained in such office and in any other office or agency
designated pursuant to Section 10.02 being herein sometimes collectively referred to as the
“Security Register”) in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Securities and of transfers and exchanges
of Securities. The Trustee is hereby appointed “Security Registrar” for the purpose of
registering Securities and transfers and exchanges of Securities as herein provided.

     (2) Upon surrender for registration of transfer of any Security at an office or agency
of the Company designated pursuant to Section 10.02 for such purpose, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Securities of any authorized denominations and of
a like aggregate principal amount bearing such restrictive legends as may be required by
this Indenture.

     (3) At the option of the Holder, and subject to the other provisions of this Section
3.05, Securities may be exchanged for other Securities of any authorized denominations and
of a like tenor or aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency of the Company. Whenever any Securities are so
surrendered for exchange, and subject to the other provisions of this Section 3.05, the
Company shall execute, and the Trustee shall authenticate and deliver, the Securities which
the Holder making the exchange is entitled to receive.

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

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

     (6) No service charge shall be made for any registration of transfer or exchange of
Securities, but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection with any registration of
transfer or exchange of Securities, other than exchanges pursuant to Sections 3.04, 9.06 or
11.08 or in accordance with any Offer to Purchase pursuant to Section 10.09 not involving
any transfer.

     (7) The Company shall not be required (i) to issue, register the transfer of or
exchange any Securities during a period beginning at the opening of business 15 days before
the day of the mailing of a notice of redemption of Securities selected for redemption under
Section 11.04 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.

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     (b) [Intentionally Omitted]

     (c) [Intentionally Omitted]

     (d) The provisions of clauses (1), (2), (3), (4) and (5) of this Subsection (d) shall apply
only to Global Securities:

     (1) Each Global Security authenticated under this Indenture shall be registered in the
name of the United States Depositary or a nominee thereof and delivered to the United States
Depositary or a nominee thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.

     (2) Notwithstanding any other provision in this Indenture or the Securities, no Global
Security may be exchanged in whole or in part for Securities registered, and no transfer of
a Global Security in whole or in part may be registered, in the name of any Person other
than the United States Depositary or a nominee thereof unless (A) the United States
Depositary (i) has notified the Company that it is unwilling or unable to continue as United
States Depositary for such Global Security or (ii) has ceased to be a clearing agency
registered under the Exchange Act, and in either case the Company thereupon fails to appoint
a successor depositary within 120 days of such notice, (B) the Company, at its option,
executes and delivers to the Trustee a Company Order that such Global Security shall be
exchanged in whole for Securities that are not Global Securities, or (C) there shall have
occurred and be continuing an Event of Default with respect to such Global Security.

     (3) Securities issued in exchange for a Global Security or any portion thereof pursuant
to clause (2) of this Subsection (d) shall be issued in definitive, fully registered form,
without interest coupons, shall have an aggregate principal amount equal to that of such
Global Security or portion thereof to be so exchanged, shall be registered in such names and
be in such authorized denominations as the United States Depositary shall designate and
shall bear any legends required hereunder. Any Global Security to be exchanged in whole
shall be surrendered by the United States Depositary to the Trustee, as Security Registrar.
With regard to any Global Security to be exchanged in part, either such Global Security
shall be so surrendered for exchange or, if the Trustee is acting as custodian for the
United States Depositary or its nominee with respect to such Global Security, the principal
amount thereof shall be reduced, by an amount equal to the portion thereof to be so
exchanged, by means of an appropriate adjustment made on the records of the Trustee and the
United States Depositary. Upon any such surrender or adjustment, the Trustee shall
authenticate and deliver the Security issuable on such exchange to or upon the order of the
United States Depositary or an authorized representative thereof.

     (4) In the event of the occurrence of any of the events specified in clause (2) of this
Subsection (d), the Company will promptly make available to the Trustee a reasonable supply
of certificated Securities in definitive, fully registered form, without interest coupons.

     (5) Neither any Agent Members nor any other Persons on whose behalf Agent Members may
act (including Euroclear and Clearstream and account holders and participants therein) shall
have any rights under this Indenture with respect to any Global Security, or under any
Global Security, and the United States Depositary or such nominee, as the case may be, may
be treated by the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner and Holder of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written certification, proxy
or other authorization furnished by the United States Depositary or such nominee, as the
case may be, or impair, as between the United States Depositary, its Agent Members and any
other person on whose behalf an Agent Member may act, the operation of customary practices
of such Persons governing the exercise of the rights of a Holder of any Security.

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SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Securities.

     (a) If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a new Security of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

     (1) If there shall be delivered to the Company and the Trustee (A) evidence to their
satisfaction of the destruction, loss or theft of any Security and (B) such security or
indemnity as may be required by them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Company or the Trustee that such Security
has been acquired by a bona fide purchaser, the Company shall execute and upon its request
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

     (b) Upon the issuance of any new Security under this Section, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     (c) Every new Security issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities duly issued hereunder.

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

SECTION 3.07 Payment of Interest; Interest Rights Preserved.

     (a) Interest on any Security which is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

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

     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities (or their respective Predecessor Securities) are registered at
the close of business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Security and the
date of the proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when deposited to be held in
trust for the benefit

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of the Persons entitled to such Defaulted Interest as in this clause provided. The
Company shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of the proposed
payment. The Company shall promptly notify the Trustee of such Special Record Date and
shall cause notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each Holder at its address as it
appears in the Security Register in accordance with Section 1.06, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such Defaulted Interest
shall be paid to the Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (2). The payment date for such Defaulted
Interest shall be not less than 5 nor more than 10 days after the Special Record Date.

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

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

SECTION 3.08 Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered on the Securities Register as the owner of such Security for the purpose of receiving
payment of principal amount of (and premium, if any) and (subject to Section 3.07) interest on such
Security and for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by
notice to the contrary.

SECTION 3.09 Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any Offer to Purchase pursuant to Section 10.09 shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it.
The Company may at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever,
and may deliver to the Trustee (or any other Person for delivery to the Trustee) for cancellation
any Securities previously authenticated hereunder which the Company has not issued and sold, and
all Securities so delivered shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee
shall be disposed of by the Trustee in accordance with its customary procedures and certification
of their disposal delivered to the Company unless by Company Order the Company shall direct that
cancelled Securities be returned to it.

SECTION 3.10 Computation of Interest.

     Except as otherwise contemplated by Section 3.01, interest on the Securities shall be computed
on the basis of a 360-day year of twelve 30-day months.

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SECTION 3.11 CUSIP Numbers.

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

ARTICLE IV

SATISFACTION AND DISCHARGE

SECTION 4.01 Satisfaction and Discharge of Indenture.

     (a) This Indenture shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Securities herein expressly provided for), and the Trustee,
upon a Company Order and at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture (including, but not limited to, Article
XII), when

     (1) either

     (i) all Securities theretofore authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been replaced or
paid as provided in Section 3.06 and (ii) Securities for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust, as provided in
Section 10.03) have been delivered to the Trustee for cancellation; or

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

     (A) have become due and payable, or

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

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

and the Company, in the case of subclause (A), (B) or (C) of this Subsection (a)(1)(ii), has
deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose money
in an amount sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal amount (and premium, if any)
and interest to the date of such deposit (in the case of Securities which have become due and
payable) or to the Stated Maturity or Redemption Date, as the case may be;

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

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

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     (b) Notwithstanding the satisfaction and discharge of this Indenture pursuant to this Article
IV, the obligations of the Company to the Trustee under Section 6.07, the obligations of the
Trustee to any Authenticating Agent under Section 6.14 and, if money shall have been deposited with
the Trustee pursuant to subclause (ii) of Subsection (a)(1) of this Section, the obligations of the
Trustee under Section 4.02 and Section 10.03(e) shall survive.

SECTION 4.02 Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.03, all money deposited with the
Trustee pursuant to Section 4.01 shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine,
to the Persons entitled thereto, to the principal (and premium, if any) and interest for whose
payment such money has been deposited with the Trustee.

ARTICLE V

REMEDIES

SECTION 5.01 Events of Default.

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

     (1) default in the payment of the principal of (or premium, if any, on) any Security
when due; or

     (2) default in the payment of any accrued and unpaid interest upon any Security when it
becomes due and payable, and continuance of such default for a period of 30 days; or

     (3) default in the payment of the principal and interest (and premium, if any) on
Securities required to be purchased upon the occurrence of a Change of Control Triggering
Event when due and payable; or

     (4) default in the performance, or breach, of any covenant, warranty or agreement of
the Company in this Indenture (other than a covenant, warranty or agreement default in whose
performance or whose breach is elsewhere in this Section specifically dealt with or which
has expressly been included in this Indenture solely for the benefit of the Securities), and
continuance of such default or breach for a period of 60 consecutive days (or 90 days in the
case of a Reporting Failure) after the receipt by the Company of a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a
“Notice of Default” hereunder, which notice has been given by registered or certified mail
to the Company by the Trustee or to the Company and the Trustee by the Holders of at least
25% in aggregate principal amount of the Outstanding Securities; or

     (5) a default or defaults with respect to any issue or issues of other Debt of the
Company or any Subsidiary having an outstanding aggregate principal amount of $50 million
for all such issues of all such Persons, whether such Debt now exists or shall hereafter be
created, which default or defaults shall constitute a failure to pay all or any portion of
the principal of such Debt when due and payable or shall have resulted in such Debt becoming
or being declared due and payable prior to the date on which it would otherwise have become
due and payable and such Debt has not been discharged in full or such acceleration has not
been rescinded or annulled (by cure, waiver or otherwise) within 60 days of such
acceleration; provided, however, that any secured Debt in excess of the limits set forth
above shall be deemed to have been

30

 

declared due and payable if the lender in respect thereof takes any action to enforce a
security interest against, or an assignment of, or to collect on, seize, dispose of or apply
any assets of the Company or its Subsidiaries (including lock-box and other similar
arrangements) securing such Debt, or to set off against any bank accounts of the Company or
its Subsidiaries in excess of $50 million in the aggregate; or

     (6) any final judgments or orders (not covered by insurance) for the payment of money
in excess of $50 million in the aggregate for all such final judgments or orders against all
such Persons (treating any deductibles, self-insurance or retention as not so covered) shall
be rendered against the Company or any Subsidiary and shall not be paid or discharged, and
there shall be any period of 60 consecutive days following entry of the final judgment or
order or that causes the aggregate amount for all such final judgments or orders outstanding
and not paid or discharged against all such Persons to exceed $50 million in the aggregate
during which a stay of enforcement of such final judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; or

     (7) the Company or any Subsidiary 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 Company or any Subsidiary 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 60 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 Company or any Subsidiary shall take
any corporate action to authorize any of the actions set forth above in this Subsection (7);

     (8) the Company and/or one or more Subsidiaries fails to make at the final (but not any
interim) fixed maturity of one or more issues of Debt principal payments aggregating $50
million or more, and all such defaulted payments shall not have been made, waived or
extended within 60 days of the payment default that causes the aggregate amount described in
this subsection (8) to exceed $50 million.

SECTION 5.02 Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default (other than an Event of Default specified in Section 5.01(a)(7))
shall occur and be continuing, then and in every such case the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities may, and the Trustee at the
request of such Holders shall, declare the entire unpaid principal of, premium, if any, and accrued
interest on the Securities to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such principal of, premium,
if any, and accrued interest on the Securities shall become immediately due and payable. If an
Event of Default specified in Section 5.01(a)(5) or (8) occurs, such declaration of acceleration
shall be automatically rescinded and annulled if the event triggering such Event of Default
pursuant to Section 5.01(a)(5) or (8) shall be remedied or cured by the Company and/or the relevant
Subsidiaries or waived by the Holders of the Relevant Debt within 60 days after the declaration of
acceleration with respect thereto.

     (b) If an Event of Default specified in Section 5.01(a)(7) above occurs, all unpaid principal
of, premium, if any, and accrued interest on the Securities then outstanding shall ipso facto
become and be immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder.

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     The Holders of at least a majority in principal amount of the outstanding Securities by
written notice to the Company and to the Trustee, may waive all past defaults and rescind and annul
a declaration of acceleration and its consequences if:

     (1) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all
sums paid or advanced by the Trustee under this Indenture and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, (B) all overdue
interest on all Securities, (C) the principal of (and premium, if any, on), any Securities
that have become due otherwise than by such declaration or occurrence of acceleration and
interest thereon at the rate prescribed therefor by such Securities, and (D) to the extent
that payment of such interest is lawful, interest upon overdue interest at the rate
prescribed therefor by such Securities,

     (2) all existing Events of Default, other than the non-payment of the principal of the
Securities that have become due solely by such declaration of acceleration, have been cured
or waived, and

     (3) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.

SECTION 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

     (a) The Company covenants that if

     (1) default is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for a period of 30 days, or

     (2) default is made in the payment of the principal amount of (or premium, if any, on)
any Security at the Maturity thereof or, with respect to any Security required to have been
purchased pursuant to an Offer to Purchase made by the Company, at the Purchase Date
thereof,

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

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

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

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SECTION 5.04 Trustee May File Proofs of Claim.

     (a) In case of any judicial proceeding relative to the Company (or any other obligor upon the
Securities), its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the same; and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.07.

     (b) No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditor’s or other similar
committee.

SECTION 5.05 Trustee May Enforce Claims Without Possession of Securities.

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

SECTION 5.06 Application of Money Collected.

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

FIRST: To the payment of all amounts due the Trustee under Section 6.07; and

SECOND: To the payment first, of the amounts then due and unpaid for principal amount of
(and premium, if any) and second, interest on the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of
any kind, according to the amounts due and payable on such Securities for principal (and
premium, if any) and interest, respectively.

SECTION 5.07 Limitation on Suits.

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

     (a) such Holder has previously given written notice to the Trustee as required hereunder of a
continuing Event of Default;

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     (b) the Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities shall have made written request to the Trustee to institute or defend a suit or
proceeding in respect of such Event of Default in its own name as Trustee hereunder;

     (c) such Holder or Holders have offered to the Trustee indemnity reasonably satisfactory to
the Trustee against all costs, expenses and liabilities to be incurred in compliance with such
request;

     (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and

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

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

SECTION 5.08 Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal amount of (and
premium, if any) and (subject to Section 3.07) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the Redemption Date or in
the case of an Offer to Purchase made by the Company and required to be accepted as to such
Security, on the Purchase Date) and to institute suit for the enforcement of any such payment, and
such rights shall not be impaired or affected without the consent of such Holder.

SECTION 5.09 Restoration of Rights and Remedies.

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

SECTION 5.10 Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.06, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

SECTION 5.11 Delay or Omission Not Waiver.

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

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expedient, by the Trustee (subject to the limitations contained in the Indenture) or by the
Holders, as the case may be.

SECTION 5.12 Control by Holders.

     The Holders of a majority in principal amount of the Outstanding Securities shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee, provided that (a) such
direction shall not be in conflict with any rule of law or with this Indenture and shall not expose
the Trustee to personal liability, and (b) the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with such direction.

SECTION 5.13 Waiver of Past Defaults.

     (a) The Holders of not less than a majority in principal amount of the Outstanding Securities
may, on behalf of the Holders of all the Securities, waive any past default hereunder and its
consequences, except a default

     (1) in the payment of the principal amount of (or premium, if any) or interest on any
Security, or

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

     (b) Upon any such waiver described in Subsection (a) of this Section, such default shall cease
to exist and any Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; provided that no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

SECTION 5.14 Undertaking for Costs.

     In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require
any party litigant in such suit to file an undertaking to pay the costs of such suit, and may
assess costs against any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, that neither this Section nor the Trust Indenture Act shall be deemed to
authorize any court to require such an undertaking or to make such an assessment in any suit
instituted by the Company or the Trustee.

SECTION 5.15 Waiver of Usury, Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage or any such law and covenants that it will
not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

SECTION 5.16 No Personal Liability of Incorporators, Shareholders, Officers, Directors or Employees.

     No recourse for the payment of the principal of, premium, if any, or interest on, any of the
Securities, or for any claim based thereon or otherwise in respect thereof, and no recourse under
or upon any obligation, covenant or agreement of the Company in this Indenture, or in any of the
Securities, or because of the creation of any Debt represented thereby, shall be had against any
incorporator, shareholder, officer, director, employee, Affiliate or controlling person of the
Company or of any successor Person thereof.

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ARTICLE VI

THE TRUSTEE

SECTION 6.01 Certain Duties and Responsibilities.

     (a) The Trustee hereby accepts the trusts imposed on it by this Indenture. The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act.

     (b) Except during the continuance of an Event of Default, The Trustee undertakes to perform
such functions and duties and only such functions and duties as are specifically set forth in this
Indenture, and no implied duties or obligations shall be read into this Indenture against the
Trustee. During the continuance of an Event of Default, the Trustee shall exercise the same degree
of care and skill as a prudent person would exercise under the circumstances in the conduct of such
person’s own affairs.

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

     (i) this Subsection shall not be construed to limit the effect of Subsection
(b) of this Section;

     (ii) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer, unless it shall be conclusively proved by a court of
final jurisdiction that is not appealable that the Trustee was negligent in
ascertaining the pertinent facts;

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

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

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

SECTION 6.02 Notice of Defaults.

     If a default occurs hereunder with respect to the Securities and is known to the Trustee, the
Trustee shall give the Holders notice of such default hereunder as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any default of the character
specified in Section 5.01(a)(4), no such notice to Holders shall be given until the expiration of
the applicable 60-day period (or 90-day period in the case of a Reporting Failure) referred to
therein. For the purpose of this Section, the term “default” means any event which is, or after
notice or lapse of time or both would become, an Event of Default.

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SECTION 6.03 Certain Rights of Trustee.

     (a) No provision of this Indenture shall be construed to relieve the Trustee from its duties,
except to the extent permitted by the Trust Indenture Act. Subject to the provisions of Section
6.01, whether or not therein expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the Trustee shall be subject
to the provisions of this Section.

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

     (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;

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

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

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

     (6) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or
other paper or document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney;

     (7) the Trustee may execute any of the trusts or powers hereunder and perform any duty
hereunder, either directly or by or through its agents (which may include a calculation
agent other than the Company or an Affiliate of the Company with respect to any calculation
relating to the Redemption Price under Section 11.01(a)), attorneys, accountants or other
experts and the Trustee shall not be responsible or liable for any misconduct or negligence
on the part of any agent, attorney, accountants or other experts if reasonable care has been
exercised in the appointment;

     (8) the Trustee shall not deemed to have notice of any default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written
notice of any event which is in fact such a default is received by the Trustee at the
Corporate Trust Office of the Trustee and such notice references the Securities and this
Indenture;

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

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

     (11) the Trustee may rely on the prices provided by a Reference Treasury Dealer or the
exchange rates provided by the Persons referred to in Sections 1.15(e) and 10.13, and the
Trustee shall not be liable for any loss, damage or expense incurred as a result of errors
or omissions of any such Reference Treasury Dealer or Person.

SECTION 6.04 Not Responsible for Recitals or Issuance of Securities.

     The recitals, statements and representations contained herein and in the Securities, except
the Trustee’s certificates of authentication, shall be taken as the statements of the Company, and
the Trustee assumes no responsibility for their correctness. The Trustee makes no representations
as to the validity or sufficiency of this Indenture or of the Securities issued hereunder, and the
Trustee assumes no responsibility in respect of such matters. The Trustee shall not be accountable
for the use or application by the Company of Securities or the proceeds thereof. The Trustee shall
not have any responsibility or liability for any information provided to Holders or any other
Person, including without limitation in the solicitation of any consent or waiver hereunder, or
pursuant to any offering documents, or pursuant to any Offer to Purchase.

SECTION 6.05 May Hold Securities and Act as
 Trustee under Other Indentures.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 6.08 and 6.13, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

     Subject to the limitations imposed by the Trust Indenture Act, nothing in this Indenture shall
prohibit the Trustee from acting as trustee under other indentures under which other securities, or
certificates of interest or participation in their securities, of the Company are outstanding in
the same manner as if it were not Trustee hereunder.

SECTION 6.06 Money Held in Trust.

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

SECTION 6.07 Compensation and Reimbursement.

     The Company agrees

     (a) to pay to the Trustee from time to time reasonable compensation for all services rendered
by it hereunder (which compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);

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

     (c) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or
expense incurred without negligence, willful misconduct or bad faith on its part (subject to the
provisions of Sections 6.01 and 6.03), arising out of or in connection with the acceptance or
administration of this trust (including with respect to the determination of the “spot rate of
exchange” pursuant to Section 10.13 and of the Redemption Price pursuant to Section 11.01(a)),
including the reasonable costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties hereunder;

     (d) that the Trustee shall have a lien against all money held under this Indenture prior to
the Securities as to all property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 6.07 for such compensation, expenses, advances and
counsel fees incurred in or about the execution of the trusts created hereby; and

     (e) when the Trustee incurs expenses or renders services in connection with an Event of
Default specified in Section 5.01(a)(7), the expenses (including the reasonable charges and
expenses of its counsel) and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy, insolvency or other similar
law.

     The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.
Failure by the Trustee to notify the Company shall not relieve the Company of its obligations
hereunder, except to the extent it may be materially prejudiced by such failure.

     The provisions of this Section shall survive the termination of this Indenture and the
resignation or removal of the Trustee.

SECTION 6.08 Disqualification; Conflicting Interests.

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

SECTION 6.09 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder. The Trustee shall be a corporation or
national banking association, organized and doing business under the laws of the United States of
America or of any state thereof, authorized to exercise corporate trust powers, and be a Person
that is otherwise eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000. If such Person publishes reports of condition at
least annually, pursuant to law or to the requirements of said supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such Person shall be
deemed to be its combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

SECTION 6.10 Resignation and Removal; Appointment of Successor.

     (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee under Section 6.11.

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     (b) The Trustee may resign at any time by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee.

     (c) The Trustee may be removed at any time by Act of the Holders of a majority in aggregate
principal amount of the Outstanding Securities, delivered to the Trustee and to the Company.

     (d) If at any time:

     (1) the Trustee shall fail to comply with Section 6.08 after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security for at least
six months, or

     (2) the Trustee shall cease to be eligible under Section 6.09 and shall fail to resign
after written request therefor by the Company or by any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (A) the Company by a Board Resolution may remove the Trustee, or (B)
subject to Section 5.14, any Holder who has been a bona fide Holder of a Security for at least six
months may, on behalf of himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board Resolution, shall
promptly appoint a successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of
the Holders of a majority in principal amount of the Outstanding Securities, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee
and supersede the successor Trustee appointed by the Company. If no successor Trustee shall have
been so appointed by the Company or the Holders and accepted appointment in the manner hereinafter
provided, any Holder who has been a bona fide Holder of a Security for at least six months may, on
behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee.

     (f) The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to all Holders in the manner provided in Section 1.06. Each
notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

SECTION 6.11 Acceptance of Appointment by Successor.

     (a) Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee; but, on request of the Company or the successor Trustee,
such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee
and shall duly assign, transfer and deliver to such successor Trustee all property and money held
by such retiring Trustee hereunder. Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and confirming to such
successor Trustee all such rights, powers and trusts.

40

 

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

     (c) The Company shall prepare such transfer instruments as are reasonably acceptable to the
Trustee for the Successor Trustee to execute evidencing the foregoing and vesting in the successor
all such rights and powers and trusts hereunder.

SECTION 6.12 Merger, Conversion, Consolidation or Succession to Business.

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

SECTION 6.13 Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or become a creditor of the Company (or any other obligor
upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims (whether or not litigated) against the Company (or any such
other obligor).

SECTION 6.14 Appointment of Authenticating Agent.

     (a) The Trustee may appoint an Authenticating Agent or Agents which shall be authorized to act
on behalf of the Trustee to authenticate Securities issued upon original issue and upon exchange,
registration of transfer, partial conversion or partial redemption or pursuant to Section 3.06, and
Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating
Agent shall be acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal or State authority.
If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions to
this Section, such Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.

     (b) Any corporation into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion or
consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to
the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be
an Authenticating Agent, provided such corporation shall otherwise be eligible under this Section,
without the execution or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

     (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon
receiving

41

 

such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company
and shall mail written notice of such appointment by first-class mail, postage prepaid, to all
Holders as their names and addresses appear in the Security Register. Any successor Authenticating
Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under
the provisions of this Section.

     (d) The Trustee agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section, and the Trustee shall be entitled to be
reimbursed for such payments, subject to the provisions of Section 6.07.

     (e) If an appointment is made pursuant to this Section, the Securities may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:

     “This is one of the Securities described in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON TRUST
	 

	 	 	 	COMPANY, N.A., As Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	As Authenticating Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

SECTION 6.15 Trustee’s Application for Instructions from the Company.

     Any application by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
the Indenture and the date on and/or after which such action shall be taken or such omission shall
be effective. The Trustee shall not be liable for any action taken by, or omission of the Trustee
in accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than five Business Days after the date of any officer of
the Company actually receives such application, unless any such officer shall have consented in
writing to any earlier date), unless prior to taking any such action, or the effective date in the
case of any omission, the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 7.01 Company to Furnish Trustee Names and Addresses of Holders.

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

     (a) semi-annually, not more than 15 days after each Regular Record Date, a list, in such form
as the Trustee may reasonably require, of the names and addresses of the Holders as of such Regular
Record Date, and

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     (b) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date not
more than 15 days prior to the time such list is furnished;
excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar.

SECTION
7.02 Preservation of Information; Communications to
Holders.

     (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

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

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to the names and addresses of Holders
made pursuant to Section 3.12 of the Trust Indenture Act.

SECTION 7.03 Reports by Trustee.

     (a) Within 60 days after March 1 of each year commencing with the first March 1 after the
first issuance of the Securities, the Trustee shall transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act
at the times and in the manner provided pursuant thereto.

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

SECTION 7.04 Reports by Company.

     The Company shall file with the Trustee and the Commission, and transmit to Holders, such
information, documents and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act; provided
that any such information, documents or reports required to be filed with the Commission pursuant
to Sections 13 or 15(d) of the Exchange Act shall, subject to Section 10.10, be filed with the
Trustee within 15 days after the same is so required to be filed with the Commission. The Trustee
shall not be obligated to ensure that the Company files such information, documents and other
reports hereunder or complies with the provisions of the Trust Indenture Act with respect thereto.

     Delivery of such information, document or other reports to the Trustee is for informational
purposes only. The Trustee’s receipt thereof shall not constitute actual or constructive notice of
any information contained therein or determinable for any purpose information contained therein,
including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is
entitled to and shall have the right to conclusively rely on Officers’ Certificates).

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ARTICLE VIII

CONSOLIDATIONS, MERGERS AND CERTAIN SALES OF ASSETS

SECTION 8.01 The Company May Consolidate, Etc. Only on Certain Terms

     (a) The Company may not, in a single transaction or a series of related transactions,

     (i) consolidate or merge with or into any other Person or permit any other Person to
consolidate or merge with or into the Company, or

     (ii) directly or indirectly transfer, sell, lease or otherwise dispose of all or substantially
all of its assets,

unless, in the case of clauses (i) or (ii) of this covenant:

     (1) in a transaction in which the Company does not survive or in which the Company
sells, leases or otherwise disposes of all or substantially all of its assets, the successor
entity to the Company is organized under (i) the laws of the United States or any State
thereof or the District of Columbia, (ii) the laws of the Republic of The Marshall Islands,
(iii) the laws of the Commonwealth of the Bahamas, (iv) the laws of the Bermuda Islands, (v)
the laws of the Republic of Liberia or (vi) the laws of any other country recognized by the
United States and which, in the case of any of the events under subclause (i), (ii), (iii),
(iv), (v) or (vi), shall expressly assume, by a supplemental indenture executed and
delivered to the Trustee in form satisfactory to the Trustee, all of the Company’s
obligations under the Indenture;

     (2) immediately before and after giving effect to such transaction, no Event of Default
or event that with the passing of time or the giving of notice, or both, would constitute an
Event of Default shall have occurred and be continuing; and

     (3) the Company, or if applicable, the Successor Company has delivered to the Trustee
an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer, lease or acquisition and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture, complies with
this Article and that all conditions precedent herein provided for relating to such
transaction have been complied with.

SECTION 8.02 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any transfer, conveyance, sale, lease or other disposition of all or substantially all of the
properties and assets of the Company in accordance with Section 8.01 (in each such case the
successor entity shall be known as the “Successor Company”), the Successor Company shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and the Securities.

ARTICLE IX

SUPPLEMENTAL INDENTURES

SECTION 9.01 Supplemental Indentures Without Consent of Holders.

     (a) Without the consent of any Holders, the Company, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

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     (1) to evidence the succession of another Person to the Company and the assumption by
any such successor of the covenants of the Company herein and in the Securities; or

     (2) to add to the covenants of the Company for the benefit of the Holders, or to
surrender any right or power herein conferred upon the Company; or

     (3) to secure the Securities pursuant to the requirements of Section 10.08 or
otherwise; or

     (4) to comply with any requirements of the Commission in order to effect and maintain
the qualification of this Indenture under the Trust Indenture Act and thereafter maintain
the qualification of this Indenture under the Trust Indenture Act; or

     (5) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture which shall not be inconsistent with
the provisions of this Indenture, provided such action pursuant to this clause (5) shall not
adversely affect the interests of the Holders in any material respect; or

     (6) to issue Additional Securities as provided in Section 3.01;

     (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee pursuant to the requirements of Section 6.11; or

     (8) to make any change that does not materially and adversely affect the rights of any
Holder.

SECTION 9.02 Supplemental Indentures With Consent of Holders.

     (a) With the consent of the Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of modifying in any manner the
rights of the Holders under this Indenture; provided, however, that no such supplemental indenture
shall, without the consent of the Holder of each Outstanding Security affected thereby,

     (1) change the Stated Maturity of the principal amount of, or any installment of
interest on, any Security, or

     (2) reduce the principal amount of, any premium payable, or the rate of interest on,
any Security, or

     (3) change the place of payment where, or the coin or currency in which, the principal
amount of, any premium, or interest on, any Security is payable, or

     (4) impair the right to institute suit for the enforcement of any such payment on, or
with respect to, any Security, or

     (5) reduce the percentage of the aggregate principal amount of the Outstanding
Securities, the consent of whose Holders is necessary to modify or amend this Indenture, or

     (6) modify any provision of this Indenture relating to the modification or amendment of
the Indenture, except as otherwise specified in this Indenture, or

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     (7) reduce the percentage of the aggregate principal amount of the Outstanding
Securities, the consent of whose Holders is required for any waiver of compliance with
certain provisions of this Indenture or certain defaults hereunder and their consequences
provided for in this Indenture.

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

SECTION 9.03 Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Sections 6.01 and 6.03) shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture which affects the
Trustee’s own rights, duties or immunities under this Indenture or otherwise.

SECTION 9.04 Effect of Supplemental Indentures.

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

SECTION 9.05 Conformity with Trust Indenture Act.

     Every amendment or supplement to this indenture or the Securities executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act as is then in effect.

SECTION 9.06 Reference in Securities to Supplemental Indentures.

     Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Trustee, bear a notation in form
approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee
and the Company, to any such supplemental indenture may be prepared and executed by the Company and
authenticated and delivered by the Trustee in exchange for Outstanding Securities.

ARTICLE X

COVENANTS

SECTION 10.01 Payment of Principal Amount, Premium and Interest.

     The Company covenants and agrees for the benefit of the Holders that it will duly and
punctually pay the principal amount of (and premium, if any) and interest on the Securities in
accordance with the terms of the Securities and this Indenture.

SECTION 10.02 Maintenance of Office or Agency.

     (a) The Company will maintain in the Borough of Manhattan, The City of New York, an office or
agency where Securities may be presented or surrendered for payment, where Securities may be
surrendered for registration of transfer or exchange and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served. The Company will give
prompt

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

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

SECTION 10.03 Money for Securities Payments to be Held in Trust.

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

     (b) Whenever the Company shall have one or more Paying Agents, it will, prior to each due date
of the principal amount of (and premium, if any) or interest on any Securities, deposit with a
Paying Agent a sum sufficient to pay the principal amount (and premium, if any) or interest so
becoming due, such sum to be held in trust for the benefit of the Persons entitled to such
principal amount, premium or interest, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

     (c) The Company will cause each Paying Agent other than the Trustee to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the
provisions of this Section, that such Paying Agent will:

     (1) hold all sums held by it for the payment of the principal amount of (and premium,
if any) or interest on Securities in trust for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon
the Securities) in the making of any payment of the principal amount (and premium, if any)
or interest; and

     (3) at any time during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

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

     (e) Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal amount of (and premium, if any) or interest on any Security
and remaining unclaimed for two years after such principal (and premium, if any) or interest has

47

 

become due and payable shall be paid to the Company on Company Request, or (if then held by
the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof, and all liability
of the Trustee or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the expense of the Company
cause to be published once, in a newspaper published in the English language, customarily published
on each Business Day and of general circulation in The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

SECTION 10.04 Corporate Existence.

     Subject to Article VIII, the Company will do or cause to be done all things necessary to
preserve and keep in full force and effect its existence, rights (charter and statutory) and
franchises; provided, however, that the Company shall not be required to preserve any such right or
franchise if the Board of Directors in good faith shall determine that the preservation thereof is
no longer desirable in the conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.

SECTION 10.05 Maintenance of Properties.

     The Company will cause all material properties used or useful in the conduct of its business
or the business of any Subsidiary of the Company to be maintained and kept in good condition,
repair and working order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the
judgment of the Company may be necessary so that the business carried on in connection therewith
may be properly and advantageously conducted at all times; provided, however, that nothing in this
Section shall prevent the Company from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, as determined by the Board of Directors in good faith,
desirable in the conduct of its business or the business of any Subsidiary and not disadvantageous
in any material respect to the Holders.

SECTION 10.06 Payment of Taxes and Other Claims.

     The Company will pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (a) all taxes, assessments and governmental charges levied or imposed upon the
Company or any of its Subsidiaries or upon the income, profits or property of the Company or any of
its Subsidiaries, and (b) all lawful claims for labor, materials and supplies which, if unpaid,
might by law become a lien upon the property of the Company or any of its Subsidiaries; provided,
however, that the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings.

SECTION 10.07 Maintenance of Insurance.

     The Company shall, and shall cause its Subsidiaries to, keep at all times all of their
properties which are of an insurable nature insured against loss or damage with insurers believed
by the Company to be responsible to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties in accordance with good
business practice.

SECTION 10.08 Limitation on Liens.

     The Company may not, directly or indirectly, Incur, assume or suffer to exist any Lien on or
with respect to any property or assets, now owned or hereafter acquired, to secure any present or
future Relevant Debt of the Company without making effective provision for securing the Securities:

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     (1) in the event such Relevant Debt is pari passu with the Securities, equally and
ratably with such Relevant Debt as to such property or assets for so long as such Relevant
Debt will be so secured, or

     (2) in the event such Relevant Debt is subordinate in right of payment to the
Securities, prior to such Relevant Debt as to such property or assets for so long as such
Relevant Debt will be so secured.

SECTION 10.09 Change of Control Triggering Event.

     (a) Subject to Section 10.09(c), within 30 days of the occurrence of a Change of Control
Triggering Event, unless the Company has previously exercised its right to redeem all Outstanding
Securities under Section 11.01, the Company will be required to make an Offer to Purchase all
Outstanding Securities at a purchase price equal to 101% of the principal amount thereof plus
accrued and unpaid interest, if any, to the date of purchase.

     (b) A “Change of Control” will be deemed to occur at such time as either:

     (1) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the
Exchange Act), other than any Permitted Holder or Permitted Holders, becomes the ultimate
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act and including by reason
of any change in the ultimate “beneficial ownership” of the Capital Stock of the Company) of
more than 50% of the total voting power of the Voting Stock of the Company (calculated on a
fully diluted basis); or

     (2) individuals who at the beginning of any period of two consecutive calendar years
constituted the Board of Directors of the Company (together with any new directors whose
election by such Board of Directors or whose nomination for election was approved by a vote
of at least two-thirds of the members of such Board of Directors then still in office who
either were members of such Board of Directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any reason to
constitute at least 50% of the members of such Board of Directors then in office.

     (c) The Company will not be required to make an Offer to Purchase any Securities upon a Change
of Control Triggering Event if it has previously exercised its right to redeem all of the
Securities as described under Article XI in the manner, at the times and otherwise in compliance
with the requirements set forth in this Indenture.

     (d) If the Company fails to make the Offer to Purchase or fails to pay the purchase price and
accrued interest described above on the date specified therefor, the Trustee and the Holders of
Securities will have the rights described under Section 5.01.

     (e) In the event that the Company makes an Offer to Purchase the Securities, the Company shall
comply with any applicable securities laws and regulations, including any applicable requirements
of Section 14(e) of, and Rule 14e-1 under, the Exchange Act.

SECTION 10.10 Provision of Financial Information.

     (a) Whether or not the Company is then subject to Sections 13(a) or 15(d) of the Exchange Act,
the Company will furnish to the trustee and the holders, so long as the notes are outstanding:

     (1) within 120 days after the end of each of the first three fiscal quarters in each
fiscal year, quarterly reports on Form 6-K (or any successor form) containing unaudited
financial statements (including a balance sheet and statement of income, changes in
stockholders’ equity and cash flow) and a management’s discussion and analysis of financial
condition and results of

49

 

operations (or equivalent disclosure) for and as of the end of such fiscal quarter
(with comparable financial statements for the corresponding fiscal quarter of the
immediately preceding fiscal year);

     (2) within 120 days after the end of each fiscal year, an annual report on Form 20-F
(or any successor form) containing the information required to be contained therein for such
fiscal year; and

     (3) at or prior to such times at would be required to be filed or furnished to the SEC
if the Company was then a ‘‘foreign private issuer’’ subject to Sections 13(a) or 15(d) of
the Exchange Act, all such other reports and information that the Company would have been
required pursuant thereto;

provided, however, that to the extent that the Company ceases to qualify as a ‘‘foreign private
issuer’’ within the meaning of the Exchange Act, whether or not the Company is then subject to
Sections 13(a) or 15(d) of the Exchange Act, the Company will furnish to the trustee and the
holders, so long as any notes are outstanding, within (1) if the Company is then subject to
Sections 13(a) or 15(d) of the Exchange Act, 30 days of the respective dates on which the Company
is required to file such documents pursuant to the Exchange Act, or (2) if the Company is not then
subject to Sections 13(a) or 15(d) under the Exchange Act, the applicable time periods described
above with respect to quarterly, annual and other reports and information, all reports and other
information that would be required to be filed with (or furnished to) the Commission pursuant
Sections 13(a) or 15(d) of the Exchange Act if it were required to file such documents under the
Exchange Act.

     (b) In addition, whether or not required by the rules and regulations of the Commission, the
Company will electronically file or furnish, as the case may be, a copy of all such information and
reports with the Commission for public availability within the time periods specified above
(unless the Commission will not accept such a filing). Notwithstanding the foregoing, the Company
will be deemed to have furnished such reports and information referred to in paragraph (a) of this
Section 10.10 to the Trustee and the Holders of notes if the Company has filed such reports and
information with the Commission via the EDGAR system (or any successor system) and such reports and
information are publicly available.

SECTION 10.11 Statement By Officers as to Default; Compliance Certificates.

     (a) The Company will deliver to the Trustee, within 120 days after the end of each fiscal year
(which is currently December 31), of the Company ending after the date hereof an Officers’
Certificate, stating that, after conducting a review of the activities of the Company and its
Subsidiaries and of the Company’s and its Subsidiaries performance under this Indenture, the
Company has fulfilled all obligations thereunder, or whether the Company is in default in the
performance and observance of any of the terms, provisions and conditions of this Indenture, and if
the Company shall be in default, specifying all such defaults and the nature and status thereof of
which it has knowledge.

     (b) The Company shall deliver to the Trustee, as soon as possible and in any event within 10
days after the Company becomes aware of the occurrence of an Event of Default or an event which,
with notice or the lapse of time or both, would constitute an Event of Default, an Officers’
Certificate setting forth the details of such Event of Default or default, and the action which the
Company proposes to take with respect thereto.

SECTION 10.12 Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any covenant or condition set
forth in Section 8.01, Sections 10.04 to 10.10(a), inclusive, and Sections 10.13 to 10.14,
inclusive, if before the time for such compliance the Holders of at least a majority in principal
amount of the Outstanding Securities shall, by Act of such Holders, either waive such compliance in
such instance or generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so expressly waived, and,
until such waiver shall become

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effective, the obligations of the Company and the duties of the Trustee in respect of any such
covenant or condition shall remain in full force and effect; provided, however, with respect to an
Offer to Purchase as to which an Offer has been mailed, no such waiver may be made or shall be
effective against any Holder tendering Securities pursuant to such Offer, and the Company may not
omit to comply with the terms of such Offer as to such Holder.

SECTION 10.13 Indemnification of Judgment Currency.

     The Company shall indemnify the Trustee and any Holder against any loss incurred by the
Trustee or such Holder, as the case may be, as a result of any judgment or order being given or
made for any amount due under this Indenture or such Security (by reason of the Company being in
default under this Indenture) and being expressed and paid in a currency (the “Judgment Currency”)
other than U.S. Dollars, and as a result of any variation between (i) the rate of exchange at which
the U.S. Dollar amount is converted into the Judgment Currency for the purpose of such judgment or
order and (ii) the spot rate of exchange in The City of New York at which the Trustee or such
Holder, as the case may be, on the date that the amount of the Judgment Currency is actually
received by the Trustee or such Holder. The foregoing indemnity shall constitute a separate and
independent obligation of the Company and shall continue in full force and effect notwithstanding
any such judgment or order as aforesaid. The term “spot rate of exchange” shall include any
premiums and costs of exchange payable in connection with the purchase of, or conversion into, U.S.
Dollars from the Judgment Currency pursuant to the Noon Day Buying Rate quoted by the Federal
Reserve Bank of New York or, if such rate is not then available therefrom, the WM/Reuters Intraday
Spot Rate quoted by WM/Reuters or any similar rate of exchange quoted by a successor exchange rate
service, at 12:00 noon (New York City time).

SECTION 10.14 Payments for Consent.

     The Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or
otherwise, to any Holder of the Securities for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Securities unless such
consideration is offered to be paid or is paid to all Holders of the Securities that consent, waive
or agree to amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.

SECTION 10.15 Additional Amounts.

     (a) All payments made by the Company under or with respect to the Securities shall be made
free and clear of and without withholding or deduction for or on account of any present or future
tax, duty, levy, impost, assessment or other governmental charge (hereinafter “Taxes”) imposed or
levied by or on behalf of any Taxing Jurisdiction, unless the Company is required to withhold or
deduct Taxes by law or by the interpretation or administration thereof. If the Company is so
required to withhold or deduct any amount of interest for or on account of Taxes from any payment
made under or with respect to the Securities, the Company shall pay such additional amounts of
interest (“Additional Amounts”) as may be necessary so that the net amount received by each Holder
(including Additional Amounts) after such withholding or deduction shall not be less than the
amount the Holder would have received if such Taxes had not been withheld or deducted; provided,
however, that the Company will not pay any Additional Amounts in connection with any Taxes that are
imposed due to any of the following (“Excluded Additional Amounts”):

     (1) the Holder or beneficial owner has some connection with the Taxing Jurisdiction
other than merely holding the Securities or receiving principal or interest payments on the
Securities (such as citizenship, nationality, residence, domicile, or existence of a
business, a permanent establishment, a dependent agent, a place of business or a place of
management present or deemed present within the Taxing Jurisdiction);

     (2) any tax imposed on, or measured by net income;

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     (3) the Holder or beneficial owner fails to comply with any certification,
identification or other reporting requirements concerning its nationality, residence,
identity or connection with the Taxing Jurisdiction, if (A) such compliance is required by
applicable law, regulation, administrative practice or treaty as a precondition to exemption
from all or a part of the Tax, (B) the Holder or beneficial owner is able to comply with
such requirements without undue hardship, and (C) at least 30 calendar days prior to the
first payment date with respect to which such requirements under the applicable law,
regulation, administrative practice or treaty shall apply, the Company has notified such
Holder that such Holder will be required to comply with such requirements;

     (4) the Holder fails to present (where presentation is required) its Security within 30
calendar days after the Company has made available to the Holder a payment of principal or
interest, provided that the Company will pay Additional Amounts which a Holder would have
been entitled to had the Security owned by such Holder been presented on any day (including
the last day) within such 30-day period;

     (5) any estate, inheritance, gift, value added, use or sales Taxes or any similar
Taxes;

     (6) where any Additional Amounts are imposed on a payment on the Securities to an
individual and are required to be made pursuant to European Union Directive 2003/48/EC or
any other directive implementing the conclusions of the Economic and Financial Council of
Ministers of the member states of the European Union (ECOFIN) Council meeting of November
26-27, 2000 on the taxation of savings or any law implementing or complying with, or
introduced in order to conform to, such Directive; or

     (7) where the Holder or beneficial owner could avoid any Additional Amounts by
requesting that a payment on the Securities be made by, or presenting the relevant
Securities for payment to, another Paying Agent located in a Member State of the European
Union.

     (b) The Company shall also (1) make such withholding or deduction and (2) remit the full
amount deducted or withheld to the relevant authority in accordance with applicable law. The
Company shall furnish to the Holders of the Securities, within 30 days after the date the payment
of any Taxes are due pursuant to applicable law, certified copies of tax receipts evidencing such
payment by the Company.

     (c) The Company shall indemnify and hold harmless each Holder for the amount (other than
Excluded Additional Amounts) of (1) any Taxes not withheld or deducted by the Company and levied or
imposed and paid by such Holder as a result of payments made under or with respect to the
Securities, (2) any liability (including penalties, interest and expenses) arising therefrom or
with respect thereto, and (3) any Taxes imposed with respect to any reimbursement under clause (1)
or (2) of this paragraph (c) of this Section 10.15.

     (d) At least 30 days prior to each date on which any payment under or with respect to the
Securities is due and payable, if the Company is aware that it will be obligated to pay Additional
Amounts with respect to such payment, the Company shall deliver to the Trustee an Officers’
Certificate stating the fact that such Additional Amounts will be payable, the amounts so payable
and such other information necessary to enable the Trustee to pay such Additional Amounts to
Holders on the payment date. Whenever in this Indenture there is mentioned, in any context, the
payment of principal (and premium, if any), interest or any other amount payable under or with
respect to any Security, such mention (except where expressly mentioned) shall be deemed to include
mention of the payment of Additional Amounts provided for in this Section 10.15 to the extent that,
in such context, Additional Amounts are, were or would be payable in respect thereof.

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ARTICLE XI

REDEMPTION OF SECURITIES

SECTION 11.01 Right of Redemption.

     (a) At the Company’s option, the Company may redeem the Securities in whole or in part at any
time at a Redemption Price equal to the greater of (i) 100% of the principal amount of the
Securities to be redeemed and (ii) the sum of the present values of the remaining scheduled
payments of principal and interest on the Securities to be redeemed (excluding the portion of any
such interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Yield, plus 50
basis points, plus, in each case, accrued and unpaid interest to the Redemption Date.

     (b) At the Company’s option, the Company may redeem the Securities in whole, but not in part,
at any time at a Redemption Price equal to 100% of the principal amount of the Securities to be
redeemed together with accrued and unpaid interest thereon to the Redemption Date, and any other
amounts owed to the Holders of the Securities under the terms of this Indenture or the Securities,
upon notice mailed to each Holder of Securities at the addresses appearing in the Security
Register, if, as a result of any change or amendment to the laws (or regulations promulgated
thereunder) of any Taxing Jurisdiction, or any change in or amendment to any official position or
administration or assessing practices regarding the application or interpretation of such laws or
regulations, which change or amendment is announced or becomes effective on or after January 27,
2010, the Company has become or would become obligated to pay, on the next date on which any amount
would be payable under or with respect to the Securities, any Additional Amounts, to a Holder in
accordance with Section 10.15 hereof, provided that the Company determines, in its business
judgment, that the obligation to pay such Additional Amounts cannot be avoided by the use of
reasonable measures available to the Company which would not involve any liability of any kind to
the Company, except for any cost or expense which is minimal, not including substitution of the
obligor under the Securities.

     (c) At any time or from time to time prior to January 15, 2013, the Company, at its option,
may redeem up to 35% of the aggregate principal amount of the Securities issued under this
Indenture with the net cash proceeds of one or more Qualified Equity Offerings at a Redemption
Price equal to 108.5% of the principal amount of the Securities to be redeemed, plus accrued and
unpaid interest thereon, if any, to the Redemption Date; provided that (1) at least 65% of the
aggregate principal amount of Securities issued under this Indenture remains outstanding
immediately after the occurrence of such redemption and (2) the redemption occurs within 60 days of
the date of the closing of any such Qualified Equity Offering.

SECTION 11.02 Applicability of Article.

     Redemption of Securities at the election of the Company or otherwise, as permitted or required
by any provision of this Indenture, shall be made in accordance with such provision and this
Article.

SECTION 11.03 Election to Redeem; Notice to Trustee.

     The election of the Company to redeem the Securities shall be evidenced by a Board Resolution.
In case of any redemption at the election of the Company, the Company shall, not less than 30 days
nor more than 60 days prior to the Redemption Date fixed by it (unless a shorter notice period
shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the
principal amount of Securities to be redeemed. Such notice shall be accompanied by an Officers’
Certificate and an Opinion of Counsel from the Company to the effect that such redemption shall
comply with the conditions herein.

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SECTION 11.04 Selection by Trustee of Securities to Be Redeemed.

     (a) If less than all the Securities are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from
the Outstanding Securities not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for redemption of portions
of the principal of Securities; provided, however, that no such partial redemption shall reduce the
portion of the principal amount of a Security not redeemed to less than U.S.$2,000. Securities and
any portions of such Securities selected by the Trustee shall be in amounts of U.S.$2,000 or
integral multiples of U.S.$1,000 in excess thereof.

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

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

SECTION 11.05 Notice of Redemption.

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

     All notices of redemption shall state:

     (a) the principal amount of each Security held by such Holder to be redeemed;

     (b) the Redemption Date;

     (c) the Redemption Price;

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

     (e) the CUSIP number;

     (f) if fewer than all of the Outstanding Securities are to be redeemed, then the
identification and principal amounts at Maturity of the particular Securities to be redeemed; and

     (g) the place or places where such Securities are to be surrendered for payment of the
Redemption Price.

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

SECTION 11.06 Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company shall deposit or cause to be deposited with
the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 10.03) an amount of money in same day funds (or New York
Clearing House funds if such deposit is made prior to the applicable Redemption Date) sufficient to
pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

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SECTION 11.07 Securities Payable on Redemption Date.

     (a) Notice of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price therein specified and
from and after such date (unless the Company shall default in the payment of the Redemption Price
and accrued interest) such Securities shall cease to bear interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security shall be paid by the Company
at the Redemption Price together with accrued interest to the Redemption Date; provided, however,
that installments of interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as
such on the relevant Regular Record Dates according to the terms and the provisions of Section
3.07.

     (b) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal thereof (and premium, if any, thereon) shall, until paid, bear interest
from the Redemption Date at the rate borne by such Security.

SECTION 11.08 Securities Redeemed in Part.

     Any Security that is to be redeemed only in part shall be surrendered to the Paying Agent at
the office of the Paying Agent or to the office or agency referred to in Section 10.02 (with, if
the Company or the Trustee so require, due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such
Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge, a replacement
Security or Securities, of any authorized denomination as requested by such Holder in an aggregate
principal amount equal to, and in exchange for, the principal amount of the Security so surrendered
that is not redeemed.

ARTICLE XII

DEFEASANCE AND COVENANT DEFEASANCE

SECTION 12.01 Company’s Option to Effect Defeasance or Covenant Defeasance.

     The Company may at its option by Board Resolution, at any time, elect to have either Section
12.02 or Section 12.03 applied to the Outstanding Securities upon compliance with the conditions
set forth below in this Article XII.

SECTION 12.02 Defeasance and Discharge.

     Upon the Company’s exercise of the option provided in Section 12.01 applicable to this
Section, on the 123rd day after the deposit of funds with the Trustee (as more fully discussed
below), the Company shall be deemed to have been discharged from its obligations with respect to
the Outstanding Securities on the date the conditions set forth below are satisfied (hereinafter,
“defeasance”). For this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by the Outstanding Securities and to have
satisfied all its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall survive until otherwise
terminated or discharged hereunder: (A) the rights of Holders of such Securities to receive,
solely from the trust fund described in Section 12.04 and as more fully set forth in such Section,
payments in respect of the principal amount of (and premium, if any) and interest on such
Securities when such payments are due, (B) the Company’s obligations with respect to such
Securities under Sections 3.04, 3.05, 3.06, 10.02 and 10.03, (C) the rights, powers, trusts, duties
and immunities of the Trustee hereunder and (D) this Article XII. Subject to compliance with this
Article Twelve, the Company may exercise its option under this Section 12.02 notwithstanding the
prior exercise of its option under Section 12.03.

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SECTION 12.03 Covenant Defeasance.

     Upon the Company’s exercise of the option provided in Section 12.01 applicable to this
Section, (a) the Company shall be released from its obligations under Sections 10.05 through 10.10,
inclusive and 10.15, and clauses (2) and (3) of Section 8.01(a), (b) the occurrence of an event
specified in Sections 5.01(a)(3), 5.01(a)(4) (with respect to any of Sections 10.05 through 10.10,
inclusive and Section 10.15), 5.01(a)(5), 5.01(a)(6) and 5.01(a)(8) shall not be deemed to be an
Event of Default (hereinafter, “covenant defeasance”). For this purpose, such covenant defeasance
means that the Company may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such Section, Clause or Article, whether directly or
indirectly by reason of any reference elsewhere herein to any such Section, Clause or Article or by
reason of any reference in any such Section, Clause or Article to any other provision herein or in
any other document, but the remainder of this Indenture and such Securities shall be unaffected
thereby.

SECTION 12.04 Conditions to Defeasance or Covenant Defeasance.

     (a) The following shall be the conditions to application of Section 12.02 to the then
Outstanding Securities:

     (1) The Company shall irrevocably have deposited or caused to be deposited with the
Trustee (or another trustee satisfying the requirements of Section 6.09 who shall agree to
comply with the provisions of this Article XII applicable to it) as trust funds in trust for
the purpose of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities, (A) money in an amount,
or (B) United States Government Obligations which through the scheduled payment of principal
and interest in respect thereof in accordance with their terms will provide, not later than
one day before the due date of any payment, money in an amount, or (C) a combination
thereof, sufficient, in the opinion of a nationally recognized firm of independent certified
public accountants expressed in a written certification thereof delivered to the Trustee, to
pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee)
to pay and discharge, the principal of (premium, if any) and each installment of interest,
if any, on the Outstanding Securities on the Stated Maturity (or Redemption Date, if
applicable) of such principal or installment of interest in accordance with the terms of
this Indenture and of such Securities. For this purpose, “United States Government
Obligations” means securities that are (x) direct obligations of the United States for the
payment of which its full faith and credit is pledged or (y) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States
the payment of which is unconditionally guaranteed as a full faith and credit obligation by
the United States, which, in either case, are not callable or redeemable at the option of
the issuer thereof, and shall also include a depository receipt issued by a bank (as defined
in Section 3(a)(2) of the Securities Act) as custodian with respect to any such United
States Government Obligation or a specific payment of principal of or interest on any such
United States Government Obligation held by such custodian for the account of the Holder of
such depository receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the Holder of such depository
receipt from any amount received by the custodian in respect of the United States Government
Obligation or the specific payment of principal of or interest on the United States
Government Obligation evidenced by such depository receipt.

     (2) In the case of an election under Section 12.02, the Company has delivered to the
trustee (A) either (i) an Opinion of Counsel to the effect that Holders will not recognize
income, gain or loss for U.S. federal income tax purposes as a result of such deposit,
defeasance and discharge and will be subject to U.S. federal income tax on the same amount
and in the same manner and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred, which Opinion of Counsel must be based upon (and
accompanied by copy of) a ruling of the Internal Revenue Service to the same effect or based
upon a change in applicable U.S. federal income tax law after the date of the indenture or
(ii) a ruling directed to the trustee received from the Internal Revenue Service to the same
effect as the aforementioned

56

 

Opinion of Counsel and (B) an Opinion of Counsel to the effect that the creation of the
defeasance trust does not violate the Investment Company Act of 1940, as amended, and, after
the passage of 123 days following the deposit, the trust fund will not be subject to the
effect of Section 547 of the United States Bankruptcy Code or Section 15 of the New York
Debtor and Creditor Law.

     (3) Immediately after giving effect to such deposit on a pro forma basis, no Event of
Default, or event that after the giving of notice or lapse of time or both would become an
Event of Default, shall have occurred and be continuing on the date of such deposit or
during the period ending on the 123rd day after the date of such deposit.

     (4) If at such time the Securities are listed on a national securities exchange, the
Company has delivered to the trustee an Opinion of Counsel to the effect that the Securities
will not be delisted as a result of such deposit, defeasance and discharge.

     (5) Such deposit, defeasance or covenant defeasance and discharge shall not result in a
breach or violation of, or constitute a default under, any other agreement or instrument to
which the Company or any Subsidiary is a party or by which the Company or any Subsidiary is
bound.

     (6) The Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for relating to
either the defeasance under Section 12.02 or the covenant defeasance under Section 12.03 (as
the case may be) have been complied with.

     (b) (i) The provisions described in clauses (1), (2)(B), (3) and (4) in Subsection (a) and
(ii) the delivery by the Company or the Trustee of an Opinion of Counsel to the effect that, among
other things, the Holders will not recognize income, gain or loss for federal income tax purposes
as a result of such deposit and defeasance of certain covenants and Events of Default and will be
subject to U.S. federal income tax on the same amount and in the same manner and at the same times
as would have been the case if such deposit and defeasance had not occurred, shall be conditions to
the application of Section 12.03 to the then Outstanding Securities.

			
	SECTION 12.05	 	Deposited Money and United States Government Obligations to be Held in Trust; Other Miscellaneous Provisions.

     (a) Subject to the provisions of the last paragraph of Section 10.03, all money and United
States Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee—collectively, for purposes of this Section 12.05, the “Trustee”) pursuant to
Section 12.04 in respect of the Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities, of all sums due and to become due thereon
in respect of principal (and premium, if any) and interest, but such money need not be segregated
from other funds except to the extent required by law.

     (b) The Company shall pay and indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against the United States Government Obligations deposited pursuant to
Section 12.04 or the principal and interest received in respect thereof other than any such tax,
fee or other charge which by law is for the account of the Holders of the Outstanding Securities.

     (c) Anything in this Article XII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Company from time to time upon Company Request any money or United States Government
Obligations held by it as provided in Section 12.04 which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in

57

 

excess of the amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance.

SECTION 12.06 Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in accordance with Section
12.02 or 12.03 by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XII until such time as the Trustee or Paying Agent is permitted to apply
all such money in accordance with Section 12.02 or 12.03; provided, however, that if the Company
makes any payment of principal amount of (and premium, if any) or interest on any Security
following the reinstatement of its obligations, the Company shall be subrogated to the rights of
the Holders of such Securities to receive such payment from the money held by the Trustee or the
Paying Agent.

      

     This Indenture may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	TEEKAY CORPORATION
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Bjorn Moller 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Arthur Bensler 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title: Executive Vice President and Secretary	 	 
	 
	 	 	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 	 	 
	/s/ Alex Buffett 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	THE BANK OF NEW YORK MELLON TRUST
	 

	 	 	 	 	 	COMPANY, N.A.,
as trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Raymond Torres 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title: Authorized Signatory

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