Document:

exv4w5

Exhibit 4.5

 

ART TECHNOLOGY GROUP, INC.,

as Issuer,

and

                                        ,

as Trustee

                                        

INDENTURE

                                        

Dated as of                     , 20___

                                        

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	1	 
	SECTION 1.02. Other Definitions
	 	 	8	 
	SECTION 1.03. Incorporation by Reference of Trust Indenture Act
	 	 	8	 
	SECTION 1.04. Rules of Construction
	 	 	8	 
	 
	 	 	 	 
	ARTICLE TWO
	 	 	 	 
	 
	 	 	 	 
	THE SECURITIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Issuable in Series
	 	 	9	 
	SECTION 2.02. Establishment of Terms of Series of Securities
	 	 	9	 
	SECTION 2.03. Execution and Authentication
	 	 	12	 
	SECTION 2.04. Registrar and Paying Agent
	 	 	13	 
	SECTION 2.05. Paying Agent to Hold Assets in Trust
	 	 	13	 
	SECTION 2.06. Holder Lists
	 	 	14	 
	SECTION 2.07. Transfer and Exchange
	 	 	14	 
	SECTION 2.08. Replacement Securities
	 	 	15	 
	SECTION 2.09. Outstanding Securities
	 	 	15	 
	SECTION 2.10. Treasury Securities
	 	 	16	 
	SECTION 2.11. Temporary Securities
	 	 	16	 
	SECTION 2.12. Cancellation
	 	 	16	 
	SECTION 2.13. Defaulted Interest
	 	 	17	 
	SECTION 2.14. Global Securities
	 	 	17	 
	SECTION 2.15. CUSIP and ISIN Numbers
	 	 	18	 
	 
	 	 	 	 
	ARTICLE THREE
	 	 	 	 
	 
	 	 	 	 
	REDEMPTION
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Notices to Trustee
	 	 	18	 
	SECTION 3.02. Selection of Securities to be Redeemed
	 	 	19	 
	SECTION 3.03. Notice of Redemption
	 	 	19	 
	SECTION 3.04. Effect of Notice of Redemption
	 	 	20	 
	SECTION 3.05. Deposit of Redemption Price
	 	 	20	 
	SECTION 3.06. Securities Redeemed in Part
	 	 	20	 

- i -

 

	 	 	 	 	 
	 	 	Page
	ARTICLE FOUR
	 	 	 	 
	 
	 	 	 	 
	COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Payment of Principal and Interest
	 	 	20	 
	SECTION 4.02. Maintenance of Office or Agency
	 	 	21	 
	SECTION 4.03. Corporate Existence
	 	 	21	 
	SECTION 4.04. Compliance Certificate
	 	 	22	 
	SECTION 4.05. Waiver of Stay, Extension or Usury Laws
	 	 	22	 
	SECTION 4.06. SEC Reports
	 	 	22	 
	 
	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	 
	 	 	 	 
	SUCCESSOR CORPORATION
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Merger, Consolidation, or Sale of Assets
	 	 	23	 
	 
	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	 
	 	 	 	 
	DEFAULT AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	24	 
	SECTION 6.02. Acceleration
	 	 	25	 
	SECTION 6.03. Other Remedies
	 	 	26	 
	SECTION 6.04. Waiver of Past Defaults
	 	 	26	 
	SECTION 6.05. Control by Majority
	 	 	26	 
	SECTION 6.06. Limitation on Suits
	 	 	27	 
	SECTION 6.07. Rights of Holders to Receive Payment
	 	 	27	 
	SECTION 6.08. Collection Suit by Trustee
	 	 	27	 
	SECTION 6.09. Trustee May File Proofs of Claim
	 	 	27	 
	SECTION 6.10. Priorities
	 	 	28	 
	SECTION 6.11. Undertaking for Costs
	 	 	28	 
	 
	 	 	 	 
	ARTICLE SEVEN
	 	 	 	 
	 
	 	 	 	 
	TRUSTEE
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Duties of Trustee
	 	 	29	 
	SECTION 7.02. Rights of Trustee
	 	 	30	 
	SECTION 7.03. Individual Rights of Trustee
	 	 	31	 
	SECTION 7.04. Trustee’s Disclaimer
	 	 	31	 
	SECTION 7.05. Notice of Default
	 	 	31	 
	SECTION 7.06. Reports by Trustee to Holders
	 	 	32	 
	SECTION 7.07. Compensation and Indemnity
	 	 	32	 
	SECTION 7.08. Replacement of Trustee
	 	 	33	 
	SECTION 7.09. Successor Trustee by Merger, Etc.
	 	 	34	 
	SECTION 7.10. Eligibility; Disqualification
	 	 	34	 

- ii -

 

	 	 	 	 	 
	 	 	Page
	SECTION 7.11. Preferential Collection of Claims Against the Issuer
	 	 	34	 
	 
	 	 	 	 
	ARTICLE EIGHT
	 	 	 	 
	 
	 	 	 	 
	DISCHARGE OF INDENTURE; DEFEASANCE
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Termination of the Issuer’s Obligations
	 	 	35	 
	SECTION 8.02. Legal Defeasance and Covenant Defeasance
	 	 	36	 
	SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance
	 	 	37	 
	SECTION 8.04. Application of Trust Money
	 	 	38	 
	SECTION 8.05. Repayment to the Issuer
	 	 	39	 
	SECTION 8.06. Reinstatement
	 	 	39	 
	 
	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	 
	 	 	 	 
	AMENDMENTS, SUPPLEMENTS AND WAIVERS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Without Consent of Holders
	 	 	39	 
	SECTION 9.02. With Consent of Holders
	 	 	40	 
	SECTION 9.03. Compliance with the Trust Indenture Act
	 	 	41	 
	SECTION 9.04. Revocation and Effect of Consents
	 	 	42	 
	SECTION 9.05. Notation on or Exchange of Securities
	 	 	42	 
	SECTION 9.06. Trustee To Sign Amendments, Etc
	 	 	42	 
	SECTION 9.07. Trustee Protected
	 	 	43	 
	 
	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01. Trust Indenture Act Controls
	 	 	43	 
	SECTION 10.02. Notices
	 	 	43	 
	SECTION 10.03. Communications by Holders with Other Holders
	 	 	45	 
	SECTION 10.04. Certificate and Opinion as to Conditions Precedent
	 	 	45	 
	SECTION 10.05. Statements Required in Certificate or Opinion
	 	 	45	 
	SECTION 10.06. Rules by Trustee and Agents
	 	 	46	 
	SECTION 10.07. Legal Holidays
	 	 	46	 
	SECTION 10.08. Governing Laws
	 	 	46	 
	SECTION 10.09. No Adverse Interpretation of Other Agreements
	 	 	46	 
	SECTION 10.10. No Recourse Against Others
	 	 	46	 
	SECTION 10.11. Successors
	 	 	46	 
	SECTION 10.12. Duplicate Originals
	 	 	46	 
	SECTION 10.13. Severability
	 	 	46	 
	SECTION 10.14. Securities in a Foreign Currency or in ECU
	 	 	47	 
	SECTION 10.15. Judgment Currency
	 	 	47	 

- iii -

 

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	 
	 	 	 	 
	SINKING FUNDS
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01. Applicability of Article
	 	 	48	 
	SECTION 11.02. Satisfaction of Sinking Fund Payments with Securities
	 	 	48	 
	SECTION 11.03. Redemption of Securities for Sinking Fund
	 	 	49	 

- iv - 

 

CROSS-REFERENCE TABLE

			
	Trust Indenture Act Section	 	Indenture Section
	§ 310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	Not Applicable
	(a)(4)
	 	Not Applicable
	(a)(5)
	 	7.10
	(b)
	 	7.10
	(c)

§ 311(a)
	 	Not Applicable

7.11
	(b)
	 	7.11
	(c)
	 	Not Applicable
	§ 312(a)
	 	2.06
	(b)
	 	10.03
	(c)
	 	10.03
	§ 313(a)
	 	7.06
	(b)
	 	7.06
	(c)
	 	7.06
	(d)
	 	7.06
	§ 314(a)
	 	4.04, 4.06; 10.05
	(b)
	 	Not Applicable
	(c)(1)
	 	10.04
	(c)(2)
	 	10.04
	(c)(3)
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	10.05
	(f)
	 	Not Applicable
	§ 315(a)
	 	7.01
	(b)
	 	7.05
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.11
	§316(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	Not Applicable
	(a)(last sentence)
	 	2.10
	(b)
	 	6.07
	(c)
	 	9.04
	§317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.05
	§ 318(a)
	 	10.01

- v -

 

			
	Note:	 	This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this
Indenture.

- vi -

 

     INDENTURE dated as of                     , 20___ between Art Technology Group, Inc., a Delaware
corporation, as Issuer (the “Issuer”), and                                         , as trustee (the “Trustee”).

THIS INDENTURE WITNESSETH

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Securities issued under this Indenture:

ARTICLE ONE

DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01. Definitions.

          Set forth below are certain defined terms used in this Indenture.

          “Additional Amounts” means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Issuer in respect of
certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

          “Affiliate” of any Person means any other Person which directly or indirectly controls or is
controlled by, or is under direct or indirect common control with, the referent Person. For
purposes of this definition, “control” of a Person shall mean the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and “controlling,” “controlled by,” and “under common
control” shall have correlative meanings.

          “Agent” means any Registrar, Paying Agent or Service Agent.

          “amend” means to amend, supplement, restate, amend and restate or otherwise modify; and
“amendment” shall have a correlative meaning.

          “asset” means any asset or property.

          “Attributable Indebtedness,” when used with respect to any Sale and Leaseback Transaction,
means, as at the time of determination, the present value (discounted at a rate equivalent to the
Issuer’s then-current weighted average cost of funds for borrowed money as at the time of
determination, compounded on a semi-annual basis) of the total obligations of the lessee for rental
payments during the remaining term of the lease included in any such Sale and Leaseback
Transaction.

          “Authorized Newspaper” means a newspaper in an official language of the country of publication
customarily published at least once a day for at least five (5) days in each calendar week and of
general circulation in the place in connection with which the term is used. If it shall be
impractical in the opinion of the Trustee to make any publication of any notice

- 1 -

 

required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof
that is made or given by the Trustee shall constitute a sufficient publication of such notice.

          “Bankruptcy Law” means Title 11 of the United States Code, as amended, or any similar federal
or state law for the relief of debtors.

          “Bearer Security” means any Security, including any interest coupon appertaining thereto, that
does not provide for the identification of the Holder thereof.

          “Board of Directors” shall mean, with respect to any Person, (i) in the case of any
corporation, the board of directors of such Person, (ii) in the case of any limited liability
company, the board of managers of such Person, (iii) in the case of any partnership, the Board of
Directors of the general partner of such Person, and (iv) in any other case, the functional
equivalent of the foregoing.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Issuer to have been adopted by the Board of Directors of the Issuer or pursuant to
authorization by the Board of Directors of the Issuer and to be in full force and effect on the
date of the certificate and delivered to the Trustee.

          “Business Day” means, unless otherwise provided by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate for a particular Series of Securities, a day other
than a Saturday, Sunday or other day on which banking institutions in the City of New York, New
York are authorized or required by law to close.

          “Capitalized Lease” means a lease required to be capitalized for financial reporting purposes
in accordance with GAAP.

          “Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent
or other amounts under a Capitalized Lease, and the amount of such obligations shall be the
capitalized amount thereof determined in accordance with GAAP.

          “Corporate Trust Office” means the corporate trust office of the Trustee located at
                                        , or such other office, designated by the Trustee by written notice to the
Issuer, at which at any particular time its corporate trust business shall be administered.

          “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law.

          “Default” means (1) any Event of Default or (2) any event, act or condition that, after notice
or the passage of time or both, would be an Event of Default.

          “Depository” means, with respect to the Securities of any Series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depository for
such Series by the Issuer, which Depository shall be a clearing agency registered under the
Exchange Act, and if at any time there is more than one such Person, “Depository” as used with
respect to the Securities of any Series shall mean the Depository with respect to the Securities of
such Series.

- 2 -

 

          “Discount Security” means any Security that provides for an amount less than the stated
principal amount thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02.

          “Dollars” and “$” means the currency of The United States of America.

          “ECU” means the European Currency Unit as determined by the Commission of the European Union.

          “Equity Interests” of any Person means (1) any and all shares or 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.

          “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

          “Fair Market Value” means, with respect to any asset, the price (after taking into account any
liabilities relating to such assets) that would be negotiated in an arm’s-length transaction for
cash between a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction, as such price is determined in good faith by the Board of
Directors of the Issuer or a duly authorized committee thereof, as evidenced by a resolution of
such Board of Directors or committee.

          “Foreign Currency” means any currency or currency unit issued by a government other than the
government of The United States of America.

          “GAAP” means generally accepted accounting principles 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 may be approved by a significant segment of the
accounting profession of the United States, as in effect from time to time, unless otherwise
provided for in a particular Series of Securities by a Board Resolution, a supplemental indenture
hereto or an Officers’ Certificate.

          “Global Security” or “Global Securities” means a Security or Securities, as the case may be,
in the form established pursuant to Section 2.02 evidencing all or part of a Series of Securities,
issued to the Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.

          “guarantee” means a direct or indirect guarantee by any Person of any Indebtedness of any
other Person and includes any obligation, direct or indirect, contingent or otherwise, of such
Person: (1) to purchase or pay (or advance or supply funds for the purchase or payment of)
Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services (unless such purchase
arrangements are on arm’s-length terms and are entered into in the ordinary course of business), to
take-or-pay, or to maintain financial statement conditions or otherwise); or (2) entered into for
purposes of assuring in any other manner the obligee of such

- 3 -

 

Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof
(in whole or in part), and “guarantee,” when used as a verb, and “guaranteed” have correlative
meanings.

          “Hedging Obligations” of any Person means the obligations of such Person pursuant to (1) any
interest rate swap agreement, interest rate collar agreement or other similar agreement or
arrangement designed to alter the risks to that Person arising from fluctuations in interest rates,
(2) agreements or arrangements designed to alter the risks to that Person arising from fluctuations
in foreign currency exchange rates in the conduct of its operations, or (3) any forward contract,
commodity swap agreement, commodity option agreement or other similar agreement or arrangement
designed to protect such Person against fluctuations in commodity prices, in each case entered into
in the ordinary course of business for bona fide hedging purposes and not for the purpose of
speculation.

          “Holder” means a Person in whose name a Security is registered or the holder of a Bearer
Security.

          “incur” means, with respect to any Indebtedness or Obligation, incur, create, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with
respect to such Indebtedness or Obligation.

          “Indebtedness” of any Person at any date means, without duplication:

          (1) all liabilities, contingent or otherwise, of such Person for borrowed money
(whether or not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof);

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

          (3) all reimbursement obligations of such Person in respect of letters of credit,
letters of guaranty, bankers’ acceptances and similar credit transactions;

          (4) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except (i) trade payables and accrued expenses incurred by such Person
in the ordinary course of business in connection with obtaining goods, materials or services
and (ii) customary adjustments of purchase price, contingent payments, earnout payments or
similar obligations of such Person arising under any of the documents pertaining to any
acquisition of any Person or assets or Equity Interests of any Person or any sale, transfer
or other disposition of assets to any Person;

          (5) all Capitalized Lease Obligations of such Person;

          (6) all Indebtedness of others secured by a Lien on any asset of such Person, whether
or not such Indebtedness is assumed by such Person;

          (7) all Indebtedness of others guaranteed by such Person to the extent of such
guarantee; provided, however, that Indebtedness of the Issuer or its Subsidiaries

- 4 -

 

that is guaranteed by the Issuer or the Issuer’s Subsidiaries shall only be counted
once in the calculation of the amount of Indebtedness of the Issuer and its Subsidiaries on
a consolidated basis;

          (8) all Attributable Indebtedness;

          (9) to the extent not otherwise included in this definition, Hedging Obligations of
such Person, determined as the net amount of all payments that would be required to be made
in respect thereof in the event of a termination (including an early termination) on the
date of determination; and

          (10) all obligations of such Person under conditional sale or other title retention
agreements relating to assets purchased by such Person.

          The amount of any Indebtedness which is incurred at a discount to the principal amount at
maturity thereof as of any date shall be deemed to have been incurred at the accreted value thereof
as of such date. The amount of Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above, the maximum liability of
such Person for any such contingent obligations at such date and, in the case of clause (6), the
lesser of (a) the Fair Market Value of any asset subject to a Lien securing the Indebtedness of
others on the date that the Lien attaches and (b) the amount of the Indebtedness secured.

          “Indenture” means this Indenture, as amended, supplemented or otherwise modified from time to
time in accordance with the terms hereof, and shall include the form and terms of particular Series
of Securities established as contemplated hereunder.

          “interest” with respect to any Discount Security which by its terms bears interest only after
a Maturity Date, means interest payable after such Maturity Date.

          “Issuer” means the party named as such above until a successor replaces it and thereafter
means the successor.

          “Issuer Order” means a written order signed in the name of the Issuer by an Officer, who must
be the Issuer’s principal executive officer, principal financial officer or principal accounting
officer.

          “Lien” means, with respect to any asset, any mortgage, deed of trust, lien (statutory or
other), pledge, lease, easement, restriction, charge, security interest or other encumbrance of any
kind or nature in respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law, including any conditional sale or other title retention agreement, and any
lease in the nature thereof.

          “Maturity Date,” when used with respect to any Security or installment of principal thereof,
means the date on which the principal of such Security or such 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, notice of option to elect repayment or otherwise.

- 5 -

 

          “Obligation” means any principal, interest, penalties, fees, indemnification, reimbursements,
costs, expenses, damages and other liabilities payable under the documentation governing any
Indebtedness.

          “Officer” means any of the following of the Issuer: the Chairman of the Board of Directors,
the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary.

          “Officers’ Certificate” means a certificate signed by two Officers (on behalf of the Issuer in
their representative capacities, and not in their individual capacities).

          “Opinion of Counsel” means a written opinion from legal counsel who is reasonably acceptable
to the Trustee. The counsel may (but need not) be an employee of, or counsel to, the Issuer or the
Trustee.

          “Person” means any individual, corporation, partnership, limited liability company, joint
venture, incorporated or unincorporated association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof or other entity of any
kind.

          “Plan of Liquidation,” with respect to any Person, means a plan that provides for,
contemplates or the effectuation of which is preceded or accompanied by (whether or not
substantially contemporaneously, in phases or otherwise): (1) the sale, lease, conveyance or other
disposition of all or substantially all of the assets of such Person otherwise than as an entirety
or substantially as an entirety; and (2) the distribution of all or substantially all of the
proceeds of such sale, lease, conveyance or other disposition of all or substantially all of the
remaining assets of such Person to holders of Equity Interests of such Person.

          “principal” of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the Security.

          “redeem” means to redeem, repurchase, purchase, defease, retire, discharge or otherwise
acquire or retire for value, and “redemption” has a correlative meaning.

          “Responsible Officer” means, when used with respect to the Trustee, any officer in the
Corporate Trust Office or equivalent office, group or department of the Trustee to whom any
corporate trust matter is referred because of such officer’s knowledge of and familiarity with the
particular subject and shall also mean any officer who shall have direct responsibility for the
administration of this Indenture.

          “Sale and Leaseback Transactions” means with respect to any Person an arrangement with any
bank, insurance company or other lender or investor or to which such lender or investor is a party,
providing for the leasing by such Person of any asset of such Person which has been or is being
sold or transferred by such Person to such lender or investor or to any Person to whom funds have
been or are to be advanced by such lender or investor on the security of such asset.

          “SEC” means the U.S. Securities and Exchange Commission.

- 6 -

 

          “Securities” means the debentures, notes or other debt instruments of the Issuer of any Series
authenticated and delivered under this Indenture.

          “Securities Act” means the U.S. Securities Act of 1933, as amended.

          “Series” or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Issuer created pursuant to Sections 2.01 and 2.02 hereof.

          “Stated Maturity” means, with respect to any installment of interest or principal on any
Indebtedness, the date on which such payment of interest or principal is scheduled to be paid in
the documentation governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date originally scheduled
for the payment thereof.

          “Subsidiary” means, with respect to any Person:

          (1) any corporation, limited liability company, association or other business entity of
which more than 50% of the total voting power of the Equity Interests entitled (without
regard to the occurrence of any contingency) to vote in the election of the Board of
Directors thereof are at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of that Person (or a combination thereof);
and

          (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are such Person or of one or more Subsidiaries of such Person (or any combination
thereof).

          Unless otherwise specified, “Subsidiary” refers to a Subsidiary of the Issuer.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended.

          “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean each Person who is then a Trustee hereunder, and if
at any time there is more than one such Person, “Trustee” as used with respect to the Securities of
any Series shall mean the Trustee with respect to Securities of that Series.

          “U.S. Government Obligations” means direct, non-callable obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the United States pledges
its full faith and credit.

- 7 -

 

SECTION 1.02. Other Definitions.

	 	 	 	 	 
	 	 	DEFINED IN
	TERM	 	SECTION
	“Covenant Defeasance”
	 	 	8.02	 
	“Event of Default”
	 	 	6.01	 
	“Journal”
	 	 	10.14	 
	“Judgment Currency”
	 	 	10.15	 
	“Legal Defeasance”
	 	 	8.02	 
	“mandatory sinking fund payment”
	 	 	11.01	 
	“Market Exchange Rate”
	 	 	10.14	 
	“New York Banking Day”
	 	 	10.15	 
	“optional sinking fund payment”
	 	 	11.01	 
	“Paying Agent”
	 	 	2.04	 
	“Registrar”
	 	 	2.04	 
	“Required Currency”
	 	 	10.15	 
	“Service Agent”
	 	 	2.04	 
	“Successor”
	 	 	5.01	 

SECTION 1.03. Incorporation by Reference of Trust Indenture Act. 

     Whenever this Indenture refers to a provision of the Trust Indenture Act, such provision is
incorporated by reference in, and made a part of, this Indenture. The following Trust Indenture Act
terms used in this Indenture have the following meanings:

     “indenture securities” means the Securities.

     “indenture security holder” means a Holder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Trustee.

     “obligor” on the indenture securities means the Issuer and any other obligor on the
Securities.

     All other Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by SEC rule
and not otherwise defined herein have the meanings assigned to them therein.

SECTION 1.04. Rules of Construction.

     Unless the context otherwise requires:

          (1) a term has the meaning assigned to it;

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          (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

          (3) references to “generally accepted accounting principles” and “GAAP” shall mean
generally accepted accounting principles or GAAP in effect as of the time and for the period
as to which such accounting principles are to be applied;

          (4) “or” is not exclusive;

          (5) words in the singular include the plural, and words in the plural include the
singular;

          (6) all references in this Indenture to “Articles,” “Sections” and other subdivisions
are to the designated Articles, Sections and provisions of this Indenture, unless otherwise
indicated;

          (7) provisions apply to successive events and transactions;

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

          (9) the words “including,” “includes” and similar words shall not be limiting and shall
be deemed to be followed by “without limitation.”

ARTICLE TWO

THE SECURITIES

SECTION 2.01. Issuable in Series.

          The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of
a Series shall be identical except as may be set forth in a Board Resolution, a supplemental
indenture or an Officers’ Certificate detailing the adoption of the terms thereof pursuant to the
authority granted under a Board Resolution. In the case of Securities of a Series to be issued from
time to time, the Board Resolution, supplemental indenture or Officers’ Certificate detailing the
adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide
for the method by which specified terms (such as interest rate, maturity date, record date or date
from which interest shall accrue) are to be determined. Securities may differ between Series in
respect of any matters, provided that all Series of Securities shall be equally and ratably
entitled to the benefits of this Indenture.

SECTION 2.02. Establishment of Terms of Series of Securities.

          At or prior to the issuance of any Securities within a Series, the following shall be
established (as to the Series generally, in the case of Section 2.02(a), and either as to such
Securities within the Series or as to the Series generally in the case of Sections 2.02(a) through
2.02(y)) by or pursuant to a Board Resolution, and set forth or determined in the manner

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provided in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate
pursuant to authority granted under a Board Resolution:

          (a) the title of the Series (which shall distinguish the Securities of that particular Series
from the Securities of any other Series);

          (b) the price or prices (expressed as a percentage of the principal amount thereof) at which
the Securities of the Series will be issued;

          (c) any limit upon the aggregate principal amount of the Securities of the Series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series
pursuant to Section 2.07, 2.08, 2.11, 3.06 or 9.05);

          (d) the date or dates on which the principal of the Securities of the Series is payable;

          (e) the rate or rates (which may be fixed or variable) per annum or, if applicable, the method
used to determine such rate or rates (including, but not limited to, any commodity, commodity
index, stock exchange index or financial index) at which the Securities of the Series shall bear
interest, if any, the date or dates from which such interest, if any, shall accrue, the date or
dates on which such interest, if any, shall commence and be payable and any regular record date for
the interest payable on any interest payment date;

          (f) the place or places where the principal of and interest, if any, on the Securities of the
Series shall be payable, where the Securities of such Series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Issuer in respect of the
Securities of such Series and this Indenture may be served, and the method of such payment, if by
wire transfer, mail or other means;

          (g) if applicable, the period or periods within which, the price or prices at which and the
other detailed terms and conditions upon which the Securities of the Series may be redeemed, in
whole or in part, at the option of the Issuer;

          (h) the obligations, if any, of the Issuer to redeem or purchase the Securities of the Series
pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the
date or dates on which or period or periods within which, the price or prices at which and the
other detailed terms and provisions upon which Securities of the Series shall be redeemed or
purchased, in whole or in part, pursuant to such obligations;

          (i) if other than denominations of $1,000 and integral multiples thereof, the denominations in
which the Securities of the Series shall be issuable;

          (j) the forms of the Securities of the Series in bearer or fully registered form (and, if in
fully registered form, whether the Securities will be issuable as Global Securities);

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          (k) if other than the principal amount thereof, the portion of the principal amount of the
Securities of the Series that shall be payable upon acceleration or declaration of acceleration of
the maturity thereof pursuant to Section 6.02;

          (l) the currency of denomination of the Securities of the Series, which may be in Dollars or
any Foreign Currency;

          (m) the designation of the currency, currencies or currency units in which payment of the
principal of and interest, if any, on the Securities of the Series will be made;

          (n) if payments of principal of or interest, if any, on the Securities of the Series are to be
made in one or more currencies or currency units other than that or those in which such Securities
are denominated, the manner in which the exchange rate with respect to such payments will be
determined;

          (o) the terms, if any, of subordination of the Securities of the Series;

          (p) any provisions relating to any security provided for the Securities of the Series;

          (q) any addition to or change in the Events of Default which applies to any Securities of the
Series and any change in the right of the Trustee or the requisite Holders of such Securities to
declare the principal amount thereof due and payable pursuant to Section 6.02;

          (r) any addition to or change in the covenants set forth in Articles Four or Five which
applies to Securities of the Series;

          (s) the provisions, if any, relating to conversion of any Securities of such Series into
Equity Interests, including if applicable, the conversion price, the conversion period, provisions
as to whether conversion will be mandatory, at the option of the Holders thereof or at the option
of the Issuer, the events requiring an adjustment of the conversion price and provisions affecting
conversion if such Series of Securities are redeemed;

          (t) any exchange features of the Securities of such Series;

          (u) any addition to or change in the provisions relating to satisfaction and discharge of
Obligations under this Indenture with respect to the Securities of such Series, or in the
provisions relating to legal defeasance or covenant defeasance under this Indenture with respect to
the Securities of such Series;

          (v) any addition to or change in the provisions relating to modification of this Indenture
both with and without the consent of Holders of the Securities of such Series;

          (w) any other terms or provisions of the Securities of the Series (which may amend,
supplement, modify or delete any provision of this Indenture insofar as it applies to such Series);
and

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          (x) any registrars, paying agents, service agents, depositories, interest rate calculation
agents, exchange rate calculation agents or other agents with respect to Securities of such Series
if other than those appointed herein.

          All Securities of any one Series need not be issued at the same time and may be issued from
time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the
Board Resolution, supplemental indenture or Officers’ Certificate referred to above, and the
authorized principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers’ Certificate.

SECTION 2.03. Execution and Authentication.

          One Officer of the Issuer (who shall have been duly authorized by all requisite corporate
actions) shall sign the Securities for the Issuer by manual or facsimile signature.

          If an Officer whose signature is on a Security was an Officer at the time of such execution
but no longer holds that office at the time the Security is authenticated, the Security shall
nevertheless be valid.

          A Security shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

          The Trustee shall at any time, and from time to time, authenticate Securities for original
issue in the principal amount provided in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate, upon receipt by the Trustee of an Issuer Order. Such Issuer Order may
authorize authentication and delivery pursuant to oral or electronic instructions from the Issuer
or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in
writing. Each Security shall be dated the date of its authentication unless otherwise provided by a
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

          The aggregate principal amount of Securities of any Series outstanding at any time may not
exceed any limit upon the maximum principal amount for such Series set forth in the Board
Resolution, supplemental indenture or Officers’ Certificate delivered pursuant to Section 2.02,
except as provided in Section 2.08.

          Prior to the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.02) shall be fully protected in relying on: (i) the Board Resolution,
supplemental indenture or Officers’ Certificate establishing the form of the Securities of that
Series or of Securities within that Series and the terms of the Securities of that Series or of
Securities within that Series, (ii) an Officers’ Certificate complying with Section 10.05, and
(iii) an Opinion of Counsel complying with Section 10.05.

          The Trustee may appoint an authenticating agent reasonably acceptable to the Issuer to
authenticate Securities. Unless otherwise provided in the appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An

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authenticating agent has the same rights as an Agent to deal with the Issuer and Affiliates of
the Issuer. The Trustee shall have the right to decline to authenticate and deliver any Securities
of such Series if the Trustee, being advised by counsel, determines that such action may not
lawfully be taken or if the Trustee in good faith by shall determine that such action would expose
the Trustee to personal liability.

SECTION 2.04. Registrar and Paying Agent.

          The Issuer shall maintain, with respect to each Series of Securities, at the place or places
specified with respect to such Series pursuant to Section 2.02, an office or agency where (a)
Securities of such Series may be surrendered for registration of transfer or exchange
(“Registrar”), (b) Securities of such Series may be presented or surrendered for payment (“Paying
Agent”) and (c) notices and demands to or upon the Issuer in respect of the Securities of such
Series and this Indenture may be served (“Service Agent”). The Issuer may act as Registrar or
Paying Agent. The Registrar shall keep a register with respect to each Series of Securities and to
their transfer and exchange. The term “Registrar” includes any co-registrar; the term “Paying
Agent” includes any additional paying agent; and the term “Service Agent” includes any additional
service agent. The Issuer hereby appoints the Trustee the initial Registrar, Paying Agent and
Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case
may be, is appointed prior to the time Securities of that Series are first issued. The Issuer will
give prompt written notice to the Trustee of the name and address, and any change in the name or
address, of each Registrar, Paying Agent or Service Agent. If at any time the Issuer shall fail to
maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the
Trustee with the name and address thereof, such presentations, surrenders, notices and demands may
be made or served at the Corporate Trust Office of the Trustee, and the Issuer hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and demands.

          The Issuer shall enter into an appropriate agency agreement with any Agent not a party to this
Indenture, which agreement shall implement the provisions of this Indenture that relate to such
Agent. The Issuer shall notify the Trustee, in advance, of the name and address of any such Agent.
If the Issuer fails to maintain a Registrar or Paying Agent, the Trustee shall act as such.

          The Issuer may also from time to time designate one or more co-registrars, additional paying
agents or additional service agents and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the Issuer of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.02 for Securities of any Series for such purposes. The Issuer will give
prompt written notice to the Trustee of any such designation or rescission and of any change in the
name or address of any such co-registrar, additional paying agent or additional service agent.

SECTION 2.05. Paying Agent to Hold Assets in Trust.

          The Issuer shall require each Paying Agent other than the Trustee or the Issuer or any
Subsidiary to agree in writing that each Paying Agent shall hold in trust for the benefit of

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Holders or the Trustee all assets held by the Paying Agent for the payment of principal of, or
interest on, the Securities (whether such assets have been distributed to it by the Issuer or any
other obligor on the Securities), and shall notify the Trustee of any Default by the Issuer (or any
other obligor on the Securities) in making any such payment. The Issuer at any time may require a
Paying Agent to distribute all assets held by it to the Trustee and account for any assets
disbursed, and the Trustee may at any time during the continuance of any payment Default, upon
written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to
the Trustee and to account for any assets distributed. Upon distribution to the Trustee of all
assets that shall have been delivered by the Issuer to the Paying Agent, the Paying Agent shall
have no further liability for such assets. If the Issuer or a Subsidiary of the Issuer acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders
of any Series of Securities all money held by it as Paying Agent.

SECTION 2.06. Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of the Holders of each Series of Securities and
shall otherwise comply with Trust Indenture Act § 312(a). If the Trustee is not the Registrar, the
Issuer shall furnish to the Trustee at least ten (10) days before each interest payment date with
respect to any Series of Securities and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require, of the names and
addresses of the Holders of such Series of Securities, which list may be conclusively relied upon
by the Trustee.

SECTION 2.07. Transfer and Exchange.

          Subject to Section 2.14, where Securities of a Series are presented to the Registrar with a
request to register a transfer or to exchange them for an equal principal amount of Securities of
the same Series, the Registrar shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided, however, that the Securities surrendered for
transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in
form satisfactory to the Issuer and the Registrar, duly executed by the Holder thereof or his or
her attorney duly authorized in writing. To permit registrations of transfers and exchanges, the
Issuer shall execute and the Trustee shall authenticate Securities at the Registrar’s request. No
service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Issuer may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.06
or 9.05).

          Without the prior written consent of the Issuer, the Registrar shall not be required to
register the transfer or exchange of Securities of any Series (i) during the period beginning at
the opening of business fifteen (15) days before the mailing of a notice of redemption of
Securities of that Series selected for redemption and ending at the close of business on the day of
such mailing, or (ii) selected, called or being called for redemption in whole or in part pursuant
to Article Three, except the unredeemed portion of such Securities, if any.

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SECTION 2.08. Replacement Securities.

          If a mutilated Security is surrendered to the Trustee or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the Issuer shall issue and the
Trustee shall authenticate and deliver a replacement Security of the same Series if the
requirements of Section 8-405 of the Uniform Commercial Code are met and the Holder satisfies any
other reasonable requirements of the Trustee. If required by the Trustee or the Issuer, such
Holder shall furnish an indemnity bond sufficient in the judgment of the Issuer and the Trustee to
protect the Issuer, the Trustee or any Agent from any loss which any of them may suffer if a
Security is replaced. The Issuer and the Trustee may each charge such Holder for its reasonable
out-of-pocket expenses in replacing a Security pursuant to this Section 2.08, including reasonable
fees and expenses of counsel and of the Trustee.

          Every replacement Security of any Series issued pursuant to this Section in lieu of any lost,
destroyed or wrongfully taken Security shall constitute an original additional contractual
obligation of the Issuer, whether or not the lost, destroyed or wrongfully taken 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 of that Series duly issued hereunder.

          In case any such mutilated, destroyed, lost or wrongfully taken Security has become or is
about to become due and payable, the Issuer in its discretion may, instead of issuing a new
Security, pay such Security.

          The provisions of this Section 2.08 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of lost, destroyed or
wrongfully taken Securities.

SECTION 2.09. Outstanding Securities.

          Subject to Section 2.10, the Securities outstanding at any time are all the Securities
authenticated by the Trustee except those cancelled by it, those delivered to it for cancellation,
those reductions in the interest on a Global Security effected by the Trustee in accordance with
the provisions hereof and those described in this Section as not outstanding. Subject to Section
2.10, a Security does not cease to be outstanding because the Issuer or any of its Affiliates holds
the Security.

          If a Security is replaced pursuant to Section 2.08 (other than a mutilated Security
surrendered for replacement), it ceases to be outstanding unless a Responsible Officer of the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

          If the Paying Agent (other than the Issuer, a Subsidiary of the Issuer or an Affiliate of the
Issuer) holds on the Maturity Date of Securities of a Series money sufficient to pay such
Securities payable on that date, then on and after that date such Securities of the Series cease to
be outstanding and interest on them ceases to accrue.

- 15 -

 

          In determining whether the Holders of the requisite principal amount of outstanding Securities
have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the
principal amount of a Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity Date thereof pursuant to Section
6.02.

          If the principal amount of any Security is considered paid under Section 4.01, it ceases to be
outstanding and interest ceases to accrue. If on any redemption date or the Maturity Date the
Trustee or Paying Agent (other than the Issuer or an Affiliate thereof) holds cash in Dollars or
U.S. Government Obligations, or a combination thereof, in amounts sufficient to pay all of the
principal and interest due on the Securities payable on that date, then on and after that date such
Securities cease to be outstanding and interest on them ceases to accrue.

SECTION 2.10. Treasury Securities.

     In determining whether the Holders of the required principal amount of Securities of a Series
have concurred in any request, demand, authorization, direction, notice, consent or waiver
Securities of a Series owned by the Issuer or an Affiliate of the Issuer shall be disregarded,
except that for the purposes of determining whether the Trustee shall be protected in relying on
any such request, demand, authorization, direction, notice, consent or waiver only Securities of a
Series that the Trustee knows are so owned shall be so disregarded.

SECTION 2.11. Temporary Securities.

          Until definitive Securities of a Series are ready for delivery, the Issuer may prepare and the
Trustee shall authenticate temporary Securities upon an Issuer Order. Temporary Securities shall be
substantially in the form of definitive Securities of the same Series but may have variations that
the Issuer considers appropriate for temporary Securities. Without unreasonable delay, the Issuer
shall prepare and the Trustee shall authenticate definitive Securities of the same Series and
Maturity Date in exchange for temporary Securities. Until such exchange, temporary Securities shall
be entitled to the same rights, benefits and privileges as definitive Securities of the same
Series.

SECTION 2.12. Cancellation.

          The Issuer at any time may deliver Securities to the Trustee for cancellation. The Registrar
and the Paying Agent shall forward to the Trustee any Securities surrendered to them for transfer,
exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying
Agent (other than the Issuer or a Subsidiary), and no one else, shall cancel and, at the written
direction of the Issuer, shall dispose of all Securities surrendered for transfer, exchange,
payment or cancellation in accordance with its customary procedures. Certification of the
destruction of all cancelled Securities shall be delivered to the Issuer upon request by the
Issuer. Subject to Section 2.08, the Issuer may not issue new Securities to replace Securities
that it has paid or delivered to the Trustee for cancellation. If the Issuer or any of its
Subsidiaries shall acquire any of the Securities, such acquisition shall not operate as a
redemption or satisfaction of

- 16 -

 

the Indebtedness represented by such Securities unless and until the same are surrendered to
the Trustee for cancellation pursuant to this Section 2.12.

SECTION 2.13. Defaulted Interest.

          If the Issuer defaults in a payment of interest on the Securities of any Series, it shall pay
the defaulted interest, plus (to the extent lawful) any interest payable on the defaulted interest,
in any lawful manner. The Issuer may pay the defaulted interest to the Persons who are the Holders
of the Securities of such Series on a subsequent special record date, which date shall be the
fifteenth (15th) day next preceding the date fixed by the Issuer for the payment of
defaulted interest or the next succeeding Business Day if such date is not a Business Day. At
least fifteen (15) days before any such subsequent special record date, the Issuer (or, upon the
written request of the Issuer, the Trustee in the name and at the expense of the Issuer) shall mail
to each Holder, with a copy to the Trustee, a notice that states the subsequent special record
date, the payment date and the amount of defaulted interest, and interest payable on such defaulted
interest, if any, to be paid.

SECTION 2.14. Global Securities.

          (a) Terms of Securities. A Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole
or in part in the form of one or more Global Securities and the Depository for such Global Security
or Securities.

          (b) Transfer and Exchange. Notwithstanding any provisions to the contrary contained in
Section 2.07 of this Indenture and in addition thereto, any Global Security shall be exchangeable
pursuant to Section 2.07 of this Indenture for Securities registered in the names of Holders other
than the Depository for such Security or its nominee only if (i) such Depository notifies the
Issuer that it is unwilling or unable to continue as Depository for such Global Security or if at
any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in
either case, the Issuer fails to appoint a successor Depository registered as a clearing agency
under the Exchange Act within ninety (90) days of such event, (ii) the Issuer executes and delivers
to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so
exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global
Security shall have happened and be continuing. Any Global Security that is exchangeable pursuant
to the preceding sentence shall be exchangeable for Securities registered in such names as the
Depository shall direct in writing in an aggregate amount equal to the principal amount of the
Global Security with like tenor and terms. Except as provided in this Section 2.14(b), a Global
Security may not be transferred except as a whole by the Depository with respect to such Global
Security to a nominee of such Depository, by a nominee of such Depository to such Depository or
another nominee of such Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such a successor Depository.

          (c) Legend. Any Global Security issued hereunder shall bear a legend in substantially
the following form:

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     “This Security is a Global Security within the meaning of the Indenture hereinafter referred
to and is registered in the name of the Depository or a nominee of the Depository. This Security is
exchangeable for Securities registered in the name of a Person other than the Depository or its
nominee only in the limited circumstances described in the Indenture, and may not be transferred
except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository
to the Depository or another nominee of the Depository or by the Depository or any such nominee to
a successor Depository or a nominee of such a successor Depository.”

          (d) Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise
authorize participants to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action which a Holder is entitled to give or take under this Indenture.

          (e) Payments. Notwithstanding the other provisions of this Indenture, unless otherwise
specified as contemplated by Section 2.02, payment of the principal of and interest, if any, on any
Global Security shall be made to the Holder thereof.

          (f) Consents, Declaration and Directions. Except as provided in Section 2.09 (last
sentence), the Issuer, the Trustee and any Agent shall treat a Person as the Holder of such
principal amount of outstanding Securities of such Series represented by a Global Security as shall
be specified in a written statement of the Depository with respect to such Global Security, for
purposes of obtaining any consents, declarations, waivers or directions required to be given by the
Holders pursuant to this Indenture.

SECTION 2.15. CUSIP and ISIN Numbers.

          The Issuer in issuing the Securities may use “CUSIP” or “ISIN” numbers, and if so, the Trustee
shall use the “CUSIP” or “ISIN” numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that any such notice may state that no representation is made as to the
correctness or accuracy of the “CUSIP” or “ISIN” numbers printed in the notice or on the
Securities, and that reliance may be placed only on the other identification numbers printed on the
Securities. The Issuer will promptly notify the Trustee of any change in the “CUSIP” or “ISIN”
numbers.

ARTICLE THREE

REDEMPTION

SECTION 3.01. Notices to Trustee.

          The Issuer may, with respect to any Series of Securities, reserve the right to redeem and pay
the Series of Securities or may covenant to redeem and pay the Series of Securities or any part
thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such
Securities. If a Series of Securities is redeemable and the Issuer wants or is obligated to redeem
prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms
of such Securities, it shall notify the Trustee of the redemption date and the principal amount of
Series of Securities to be redeemed. The Issuer shall give the notice of

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redemption to the Trustee at least forty-five (45) days before the redemption date (unless a
shorter notice shall be agreed to by the Trustee in writing), together with such documentation and
records as shall enable the Trustee to select the Securities to be redeemed.

SECTION 3.02. Selection of Securities to be Redeemed.

          Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, if less than all the Securities of a Series are to be
redeemed, the Trustee shall select the Securities of the Series to be redeemed as follows:

          (1) if such Securities are listed on a national securities exchange, in compliance with
the requirements of the principal national securities exchange on which such Securities are
listed; or

          (2) if such Securities are not so listed, on a pro rata basis, by lot or by such other
method as the Trustee shall deem fair and appropriate.

          In the event of partial redemption, the Trustee shall make the selection from Securities of
the Series outstanding not previously called for redemption. The Trustee may select for redemption
portions of the principal of Securities of the Series that have denominations larger than $1,000.
Securities of the Series and portions of them it selects shall be in amounts of $1,000 or integral
multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations
pursuant to Subsection 2.02(i), the minimum principal denomination for each Series and integral
multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for
redemption also apply to portions of Securities of that Series called for redemption.

SECTION 3.03. Notice of Redemption.

          Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental
indenture hereto or an Officers’ Certificate, at least thirty (30) days but not more than sixty
(60) days before a redemption date, the Issuer shall mail, or cause to be mailed, a notice of
redemption by first-class mail, postage prepaid, to each Holder whose Securities are to be redeemed
and if any Bearer Securities are outstanding, publish on one occasion a notice in an Authorized
Newspaper (except that a redemption referred to in Article Eight may be more than sixty (60) days
before the applicable redemption date). At the Issuer’s request, the Trustee shall forward the
notice of redemption in the Issuer’s name and at the Issuer’s expense. Each notice for redemption
shall identify the Securities of the Series to be redeemed (including the CUSIP or ISIN number, if
any) and shall state:

          (1) the date fixed for the redemption of such Securities;

          (2) the price fixed for the redemption of such securities;

          (3) the name and address of the Paying Agent;

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          (4) that Securities of the Series called for redemption must be surrendered to the
Paying Agent to collect the redemption price therefor;

          (5) that interest on Securities of the Series called for redemption shall cease to
accrue on and after the redemption date thereof, and the only remaining right of the Holders
of such Securities shall be to receive payment of the redemption price therefor upon
surrender to the Trustee or Paying Agent of the Securities to be redeemed; and

          (6) any other information as may be required by the terms of the particular Series or
the Securities of a Series being redeemed.

          At the Issuer’s request, the Trustee shall give the notice of redemption in the Issuer’s name
and at its expense.

SECTION 3.04. Effect of Notice of Redemption.

          Once notice of redemption is mailed or published as provided in accordance with Section 3.03,
Securities of a Series called for redemption shall become due and payable on the redemption date
and at the redemption price therefor. A notice of redemption may not be conditional. Upon surrender
to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to
the redemption date; provided 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 at the close of business on the relevant record date therefor according to
their terms and the terms of this Indenture.

SECTION 3.05. Deposit of Redemption Price. 

          On or before 10:00 a.m. New York time on the redemption date, the Issuer shall deposit with
the Paying Agent funds sufficient to pay the redemption price of and accrued and unpaid interest,
if any, on all Securities to be redeemed on that date.

SECTION 3.06. Securities Redeemed in Part.

          Upon surrender of a Security that is to be redeemed in part, the notice of redemption that
relates to such Security shall state the portion of the principal amount thereof to be redeemed. A
new Security or Securities of the same Series and the same Maturity Date equal in principal amount
to the unredeemed portion of the original Security shall be issued in the name of the Holder
thereof upon surrender and cancellation of the original Security surrendered.

ARTICLE FOUR

COVENANTS

SECTION 4.01. Payment of Principal and Interest.

          The Issuer shall pay or cause to be paid the principal of and interest on the Securities of
each Series in the manner provided in such Securities and this Indenture. An

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installment of principal of, or interest on, Securities shall be considered paid on the date
it is due if the Trustee or the Paying Agent (other than the Issuer or an Affiliate thereof) holds
on that date funds designated for and sufficient to pay the installment. The Paying Agent shall
return to the Issuer promptly, and in any event, no later than five (5) Business Days following the
date of payment, any money (including accrued interest) that exceeds such amount of principal and
interest paid on the Securities. If a payment date is not a Business Day, at a place of payment,
payment may be made at that place on the next succeeding day that is a Business Day, and no
interest shall accrue on such payment for the intervening period.

SECTION 4.02. Maintenance of Office or Agency.

          The Issuer covenants and agrees for the benefit of the Holders of each Series of Securities
that it will maintain in the Borough of Manhattan, The City of New York, New York the office or
agency (which may be an office or drop facility of the Trustee, the Registrar or the Service Agent,
as applicable, for such Securities or an Affiliate of such Trustee, the Registrar or the Service
Agent, as applicable, for such Securities) where such Securities may be surrendered for
registration of transfer or for exchange and where notices and demands to or upon the Issuer in
respect of such Securities and this Indenture may be served. The Issuer will give prompt written
notice to the Trustee for such Securities of the location, and any change in the location, of such
office or agency. If at any time the Issuer shall fail to maintain any such required office or
agency or shall fail to furnish such Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of such
Trustee.

          The Issuer may also from time to time designate one or more other offices or agencies where
Holders of a Series of Securities may be presented or surrendered for any or all such purposes and
may from time to time rescind such designations. The Issuer will give prompt written notice to the
Trustee for such Series of Securities of any such designation or rescission and of any change in
the location of any such other office or agency.

          With respect to each Series of Securities, the Issuer hereby designates the Corporate Trust
Office of the Trustee for such Securities as one such office or agency of the Issuer in accordance
with Section 2.05 hereof.

SECTION 4.03. Corporate Existence.

          Except as otherwise permitted by Article Five and the other provisions of this Indenture, the
Issuer shall do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence and its material rights (charter and statutory) and material
franchises; provided, however, that the Issuer shall not be required to preserve any such right or
franchise if the Board of Directors of the Issuer shall determine that the preservation thereof is
no longer desirable in the conduct of the business of the Issuer and its Subsidiaries, taken as a
whole, or if the failure so to preserve would not reasonably be expected to have a material adverse
effect on the Issuer and its Subsidiaries, taken as a whole.

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SECTION 4.04. Compliance Certificate.

          The Issuer shall deliver to the Trustee with respect to such Series, within one hundred twenty
(120) days after the end of each fiscal year of the Issuer, an Officers’ Certificate stating that,
in the course of the performance by the signers of their duties as Officers of the Issuer, they
would normally have knowledge of any Default and whether or not the signers know of any Default
that occurred during such fiscal year. If they do know of such a Default, the certificate shall
describe the Default, its status and what action, if any, the Issuer is taking or proposes to take
with respect thereto. The Issuer also shall comply with Trust Indenture Act § 314(a)(4).

SECTION 4.05. Waiver of Stay, Extension or Usury Laws.

          The Issuer covenants (to the extent permitted by applicable law) that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law or any usury law or other law that would prohibit or forgive the Issuer from
paying all or any portion of the principal of and/or interest on such Securities, wherever enacted,
now or at any time hereafter in force, or which may affect the covenants or the performance of this
Indenture, and (to the extent permitted by applicable law) hereby expressly waives all benefit or
advantage of 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 4.06. SEC Reports.

          (a) Whether or not required by the SEC’s rules and regulations, so long as any Securities of
any Series are outstanding, the Issuer will furnish to the Holders of such Securities, cause the
Trustee with respect to such Securities to furnish to the Holders of such Securities, or file
electronically with the SEC through the SEC’s Electronic Data Gathering, Analysis and Retrieval
System (or any successor system), within the time periods (including any extensions thereof)
specified in the SEC’s rules and regulations:

          (1) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K (or any successor forms) if the
Issuer were required to file these Forms, including a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and, with respect to the annual
information only, a report on the annual financial statements by the Issuer’s independent
accountants; and

          (2) all current reports that would be required to be filed with the SEC on Form 8-K (or
any successor form) if the Issuer were required to file these reports.

          (b) In addition, whether or not required by the SEC’s rules and regulations, the Issuer will
file a copy of all of the information and reports referred to in clauses (a)(1) and (a)(2) above
with the SEC for public availability within the time periods applicable to the Issuer under Section
13(a) or 15(d) of the Exchange Act (unless the SEC will not accept the filing, in which case the
Issuer shall make the information available to securities analysts and prospective

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investors upon request). The Issuer also shall comply with the other provisions of Trust
Indenture Act § 314(a).

ARTICLE FIVE

SUCCESSOR CORPORATION

SECTION 5.01. Merger, Consolidation, or Sale of Assets.

          (a) The Issuer will not, directly or indirectly, in a single transaction or a series of
related transactions, (1) consolidate or merge with or into any other Person (other than a merger
with an Affiliate of the Issuer solely for the purpose of changing the Issuer’s jurisdiction of
incorporation to another State of the United States or forming a direct holding company of the
Issuer), or sell, lease, transfer, convey or otherwise dispose of or assign all or substantially
all of the assets of the Issuer or the Issuer and its Subsidiaries (taken as a whole) to any other
Person or (2) effect a Plan of Liquidation, unless, in either case:

          (1) either:

          (i) the Issuer will be the surviving or continuing corporation; or

          (ii) the Person formed by or surviving such consolidation or merger (if not the
Issuer) or to which such sale, lease, conveyance or other disposition shall be made
(or, in the case of a Plan of Liquidation, any Person to which assets are
transferred) (collectively, the “Successor”) is a corporation organized and existing
under the laws of any State of the United States of America or the District of
Columbia, and the Successor expressly assumes, by a supplemental indenture hereto in
form and substance satisfactory to the Trustee, all of the Obligations of the Issuer
under the Securities and this Indenture; and

          (2) immediately after giving effect to such transaction and the assumption of the
obligations as set forth in clause (a)(1) above, if applicable, and the incurrence of any
Indebtedness to be incurred in connection therewith, no Default shall have occurred and be
continuing.

          (b) For purposes of the foregoing, the sale, lease, transfer, conveyance or other disposition
or assignment of all or substantially all of the assets of one or more of the Issuer’s
Subsidiaries, the Equity Interests of which constitute all or substantially all of the assets of
the Issuer, will be deemed to be the transfer of all or substantially all of the assets of the
Issuer.

          (c) Upon any consolidation, combination or merger of the Issuer, or any sale, lease, transfer,
conveyance or other disposition or assignment of all or substantially all of the assets of the
Issuer in accordance with the foregoing, in which the Issuer is not the continuing obligor under
the Securities and this Indenture, the surviving entity formed by such consolidation or into which
the Issuer is merged or the entity to which the sale, lease, transfer, conveyance, or other
disposition or assignment is made will succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under the Securities and this Indenture with the same effect

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as if such surviving entity had been named therein as the Issuer, and, except in the case of
such a lease, the Issuer will be released from its Obligations under the Securities and this
Indenture.

          (d) This Section 5.01 shall not apply to (i) any sale, lease, transfer, conveyance or other
disposition or assignment of assets between or among (A) the Issuer and any of its Subsidiaries or
(B) two or more Subsidiaries of the Issuer, or (ii) any merger or consolidation between the Issuer
and any of its Subsidiaries or between any two Subsidiaries of the Issuer.

ARTICLE SIX

DEFAULT AND REMEDIES

SECTION 6.01. Events of Default.

          “Event of Default,” wherever used herein with respect to Securities of any Series, means any
one of the following events, unless in the establishing Board Resolution, supplemental indenture or
Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of
Default:

          (1) failure by the Issuer to pay interest on any of Security of that Series when it
becomes due and payable and the continuance of any such failure for thirty (30) consecutive
days;

          (2) failure by the Issuer to pay the principal on any Security of that Series when it
becomes due and payable, whether at Stated Maturity, upon redemption, upon purchase, upon
acceleration or otherwise;

          (3) failure to deposit any sinking fund payment, when and as due in respect of any
Security of that Series;

          (4) failure by the Issuer to comply with any other agreement or covenant in this
Indenture and the continuance of any such failure for sixty (60) consecutive days after
notice of such failure has been given to the Issuer by the Trustee or by the Holders of at
least twenty-five percent (25%) of the aggregate principal amount of the Securities of that
Series then outstanding;

          (5) the Issuer pursuant to or within the meaning of any Bankruptcy Law:

          (i) commences a voluntary case,

          (ii) consents to the entry of an order for relief against it in an involuntary
case,

          (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its assets,

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          (iv) makes a general assignment for the benefit of its creditors, or

          (6) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

          (i) is for relief against the Issuer as debtor in an involuntary case,

          (ii) appoints a Custodian of the Issuer or for all or substantially all of its
assets, or

          (iii) orders the liquidation of the Issuer, and the order or decree remains
unstayed and in effect for ninety (90) days; or

          (7) any other Event of Default provided with respect to Securities of that Series,
which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’
Certificate, in accordance with Section 2.02(r).

SECTION 6.02. Acceleration.

          If an Event of Default specified in Section 6.01(5) or Section 6.01(6) with respect to the
Issuer occurs, all outstanding Securities shall become immediately due and payable without any
further action or notice. If an Event of Default (other than an Event of Default specified in
Section 6.01(5) or Section 6.01(6) with respect to the Issuer) shall have occurred and be
continuing under this Indenture and the Securities of any Series, the Trustee, by notice to the
Issuer, or the Holders of at least twenty-five percent (25%) in aggregate principal amount of the
Securities of such Series then outstanding by notice to the Issuer and the Trustee, may declare all
amounts owing under such Securities of such Series to be due and payable immediately. Upon such
acceleration or declaration of acceleration, the aggregate principal (or, if any Securities of that
Series are Discount Securities, such portion of the principal as may be specified in the terms of
such Securities) of and accrued and unpaid interest on the outstanding Securities of such Series
shall immediately become due and payable; provided, however, that after such acceleration or
declaration of acceleration, but before a judgment or decree based on acceleration or declaration
of acceleration, the Holders of a majority in aggregate principal amount of such outstanding
Securities of such Series may rescind and annul such acceleration or declaration of acceleration:

          (1) if the rescission would not conflict with any judgment or decree;

          (2) if all existing Defaults have been cured or waived (except nonpayment of principal
and interest that has become due solely because of this acceleration);

          (3) to the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due (otherwise than by such
declaration of acceleration), has been paid;

          (4) if the Issuer has paid to the Trustee its reasonable compensation and reimbursed
the Trustee of its expenses, disbursements and advances; and

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          (5) in the event of a cure or waiver of a Default of the type set forth in Section
6.01(5) or Section 6.01(6), the Trustee shall have received an Officers’ Certificate and an
Opinion of Counsel that such Default has been cured or waived.

No such rescission shall affect any subsequent Default or impair any right consequent thereto.

SECTION 6.03. Other Remedies.

          If a Default with respect to Securities of any Series at the time outstanding occurs and is
continuing, the Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of, or interest on, such Securities or to enforce the performance
of any provision of such Securities or this Indenture.

          The Trustee for such Securities may maintain a proceeding even if it does not possess any of
such Securities or does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Holder of Securities in exercising any right or remedy accruing upon a Default shall
not impair the right or remedy or constitute a waiver of or acquiescence in the Default. No remedy
is exclusive of any other remedy. All remedies are cumulative to the extent permitted by law.

SECTION 6.04. Waiver of Past Defaults.

          Holders of at least a majority in aggregate principal amount of the then outstanding
Securities of any Series (which may include consents obtained in connection with a tender offer or
exchange offer of such Securities), by notice to the Trustee for such Securities, may, on behalf of
all of the Holders of such Securities, waive an existing Default with respect to such Securities
and its consequences, except a Default in the payment of principal or interest on such Securities;
provided, however, that the Holders of a majority in aggregate principal amount of the then
outstanding Securities of any Series may, on behalf of all of the Holders of such Securities,
rescind an acceleration of such Securities and its consequences, including any related payment
Default that resulted from such acceleration. When a Default is waived, it is cured and ceases.

SECTION 6.05. Control by Majority.

          (a) The Holders of at least a majority in aggregate principal amount of the outstanding
Securities of any Series may direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee of such Series or exercising any trust or power conferred on it
with respect to such Series. Subject to Section 7.01, however, the Trustee may refuse to follow
any direction that conflicts with any law or this Indenture, that the Trustee determines may be
unduly prejudicial to the rights of another Holder, or that may involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.

          (b) In the event the Trustee takes any action or follows any direction pursuant to this
Indenture, the Trustee shall be entitled to indemnification against any loss or expense caused by
taking such action or following such direction.

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SECTION 6.06. Limitation on Suits.

          (a) Subject to Section 6.07, no Holder of any Securities of any Series will have any right to
institute any proceeding with respect to this Indenture or such Securities for any remedy
thereunder, unless the Trustee for such Securities:

          (1) has failed to act for a period of sixty (60) consecutive days after receiving
notice of a continuing Event of Default from such Holder and a request to act by Holders of
at least twenty-five percent (25%) in aggregate principal amount of the outstanding
Securities of such Series;

          (2) has been offered indemnity satisfactory to it in its reasonable judgment; and

          (3) has not received from the Holders of a majority in aggregate principal amount of
the outstanding Securities of such Series a direction inconsistent with such request.

          (b) A Holder of any Securities of any Series may not use this Indenture to prejudice the
rights of another Holder of such Securities of such Series or to obtain a preference or priority
over another Holder of Securities of such Series.

SECTION 6.07. Rights of Holders to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of any
Securities of any Series to receive payment of principal of, and interest on, such Securities, on
or after the respective due dates expressed in such Securities (including, if applicable, in
connection with an offer to purchase or redeem), or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected without the consent of
such Holder.

SECTION 6.08. Collection Suit by Trustee.

          If a Default specified in Section 6.01(1), 6.01(2) or 6.01(3) with respect to Securities of
any Series occurs and is continuing, the Trustee for such Securities may recover judgment in its
own name and as trustee of an express trust against the Issuer or any other obligor on such
Securities for the whole amount of principal and accrued interest and fees remaining unpaid,
together with interest on overdue principal and, to the extent that payment of such interest is
lawful, interest on overdue installments of interest, in each case at the rate per annum borne by
such Securities and such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and advances of such
Trustee, its agents and counsel.

SECTION 6.09. Trustee May File Proofs of Claim.

          The Trustee for each Series of Securities may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of such Trustee (including
any claim for the compensation, expenses, disbursements and advances of

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such Trustee, its agents and counsel) and the Holders of the Securities for which it acts as
trustee allowed in any judicial proceedings relating to the Issuer (or any other obligor upon such
Securities), its creditors or its property and shall be entitled and empowered to collect, receive
and distribute any monies or other property payable or deliverable on any such claims, and any
Custodian in any such judicial proceeding is hereby authorized by each Holder of such Securities to
make such payments to such Trustee and, in the event that such Trustee shall consent to the making
of such payments directly to such Holders, to pay to such Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of such Trustee, its agents and
counsel, and any other amounts due such Trustee under this Indenture. Nothing herein contained
shall be deemed to authorize such Trustee to authorize or consent to or accept or adopt on behalf
of any Holder for which it acts as trustee any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of such Holder, or to authorize such Trustee to
vote in respect of the claim of any such Holder in any such proceeding. The Trustee shall be
entitled to participate as a member of any official committee of creditors in the matters as it
deems necessary or advisable.

SECTION 6.10. Priorities.

          If the Trustee for any Series of Securities collects any money or property pursuant to this
Article Six, it shall pay out the money or property in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under this
Indenture, including payment of all reasonable compensation, expenses and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of collection;

     Second: to Holders of such Securities for interest accrued on such Securities,
ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities for interest; and

     Third: to Holders of such Securities for principal amounts due and unpaid on
such Securities, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal; and

     Fourth: to the Issuer with respect to such Securities or to such other Person
or Persons as a court of competent jurisdiction shall direct.

          The Trustee, upon prior notice to the Issuer, may fix a record date and payment date for any
payment to Holders of Securities pursuant to this Section 6.10.

SECTION 6.11. Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against any Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11 does not apply to a
suit by the Trustee, a suit by a Holder of a Security pursuant to Section 6.07 hereof, or

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a suit by Holders of more than 10% in aggregate principal amount of the then outstanding
Securities of any Series.

ARTICLE SEVEN

TRUSTEE

SECTION 7.01. Duties of Trustee.

          (a) If a Default has occurred and is continuing, the Trustee shall exercise such of the rights
and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent Person would exercise or use under the circumstances in the conduct of his or
her own affairs.

          (b) Except during the continuance of a Default:

          (1) The Trustee need perform only those duties as are specifically set forth herein or
in the Trust Indenture Act, and no duties, covenants, responsibilities or obligations shall
be implied in this Indenture against the Trustee.

          (2) In the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates (including Officers’ Certificates) or opinions (including Opinions of Counsel)
furnished to the Trustee and conforming to the requirements of this Indenture. However, in
the case of any such certificates or opinions which by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture.

          (c) Notwithstanding anything to the contrary herein, the Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

          (1) This paragraph does not limit the effect of Section 7.01(b).

          (2) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

          (3) The Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05.

          (d) 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 to
take or omit to take any action under this Indenture or take any action at the request or direction
of Holders if it shall have reasonable grounds for believing that repayment of such funds is not
assured to it.

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          (e) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to this Section 7.01.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuer. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

          (g) In the absence of bad faith, negligence or willful misconduct on the part of the Trustee,
the Trustee shall not be responsible for the application of any money by any Paying Agent other
than the Trustee.

SECTION 7.02. Rights of Trustee.

          Subject to Section 7.01:

          (a) The Trustee may rely conclusively on any resolution, certificate (including any Officers’
Certificate), statement, instrument, opinion (including any Opinion of Counsel), notice, request,
direction, consent, order, bond, debenture, or other paper or document believed by it to be genuine
and to have been signed or presented by the proper Person. The Trustee need not investigate any
fact or matter stated in such document.

          (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
and an Opinion of Counsel, which shall conform to the provisions of Section 10.05. The Trustee
shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officers’ Certificate or Opinion of Counsel.

          (c) The Trustee may act through its attorneys and agents and shall not be responsible for the
misconduct or negligence of any agent (other than an agent who is an employee of the Trustee)
appointed with due care.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it reasonably believes to be authorized or within its rights or powers under this Indenture.

          (e) The Trustee may consult with counsel of its selection and the advice or opinion of such
counsel as to matters of law shall be full and complete authorization and protection from liability
in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance
with the advice or opinion of such counsel.

          (f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity satisfactory to it against the costs, expenses and liabilities which may be
incurred therein or thereby.

          (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate (including any Officers’ Certificate), statement, instrument,
opinion (including any Opinion of Counsel), notice, request, direction, consent,

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order, bond, debenture, 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, upon
reasonable notice to the Issuer, to examine the books, records, and premises of the Issuer,
personally or by agent or attorney at the sole cost of the Issuer.

          (h) The Trustee shall not be required to give any bond or surety in respect of the performance
of its powers and duties hereunder.

          (i) The permissive rights of the Trustee to do things enumerated in this Indenture shall not
be construed as duties.

          (j) Except with respect to Section 4.01 and Section 4.04, the Trustee shall have no duty to
inquire as to the performance of the Issuer with respect to the covenants contained in Article
Four. In addition, the Trustee shall not be deemed to have knowledge of any Default except (i) any
Default occurring pursuant to Section 4.01, Section 4.04, Section 6.01(1), Section 6.01(2) or
Section 6.01(3) or (ii) any Default of which the Trustee shall have received written notification.

          (k) 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 and
other Person employed to act for it hereunder.

SECTION 7.03. Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Issuer or an Affiliate of the Issuer with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04. Trustee’s Disclaimer.

          The Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for the Issuer’s use of
the proceeds from the Securities, and it shall not be responsible for any statement in the
Securities other than its authentication.

SECTION 7.05. Notice of Default.

          If a Default occurs and is continuing with respect to the Securities of any Series and the
Trustee receives written notice of such Default, the Trustee shall mail to each Holder of the
Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in
an Authorized Newspaper, notice of a Default within thirty (30) days after it occurs or, if later,
after a Responsible Officer of the Trustee has knowledge of such Default. Except in the case of a
Default in payment of principal of or interest on any Security of any Series, the Trustee may
withhold the notice if and so long as the Board of Directors, the executive

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committee, or a trust committee of directors and/or Responsible Officers, of the Trustee in
good faith determines that withholding the notice is in the interests of Holders of that Series.

SECTION 7.06. Reports by Trustee to Holders.

          Within sixty (60) days after each January 1, beginning with January 1, 20___, the Trustee
shall, to the extent that any of the events described in Trust Indenture Act § 313(a) occurred
within the previous twelve months, but not otherwise, mail to each Holder a brief report dated as
of such date that complies with Trust Indenture Act § 313(a). The Trustee also shall comply with
Trust Indenture Act §§ 313(b), 313(c) and 313(d).

          A copy of each report at the time of its mailing to Holders of any Series shall be filed with
the SEC and each stock exchange on which the Securities of that Series are listed. The Issuer shall
promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

          The Issuer shall notify the Trustee if the Securities of any Series become listed on any
securities exchange or of any delisting thereof, and the Trustee shall comply with Trust Indenture
Act § 313(d).

SECTION 7.07. Compensation and Indemnity.

          The Issuer shall pay to the Trustee from time to time such compensation as the Issuer and the
Trustee shall from time to time agree in writing for its services hereunder. The Trustee’s
compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Issuer shall reimburse the Trustee upon request for all reasonable disbursements, expenses and
advances (including reasonable fees and expenses of counsel) incurred or made by it in addition to
the compensation for its services, except any such disbursements, expenses and advances as may be
attributable to the Trustee’s negligence, bad faith or willful misconduct. Such expenses shall
include the reasonable fees and expenses of the Trustee’s agents and counsel.

          The Issuer shall indemnify each of the Trustee or any predecessor Trustee and its agents for,
and hold them harmless against, any and all loss, damage, claims (including taxes (other than taxes
based upon, measured by or determined by the income of the Trustee)), liability or expense incurred
by them arising out of or in connection with the acceptance or administration of this trust
(including the reasonable costs and expenses of defending themselves against or investigating any
claim or liability in connection with the exercise or performance of any of the Trustee’s rights,
powers or duties hereunder), except in each of the foregoing cases to the extent caused by any
negligence, bad faith or willful misconduct on their part. The Trustee shall notify the Issuer
promptly of any claim asserted against the Trustee or any of its agents for which it may seek
indemnity. The Issuer may, subject to the approval of the Trustee (which approval shall not be
unreasonably withheld), defend the claim and the Trustee shall cooperate in the defense. The
Trustee and its agents subject to the claim may have separate counsel and the Issuer shall pay the
reasonable fees and expenses of such counsel; provided, however, that the Issuer will not be
required to pay such fees and expenses if, subject to the approval of the Trustee (which approval
shall not be unreasonably withheld), it assumes the Trustee’s defense and there

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is no conflict of interest between the Issuer and the Trustee and its agents subject to the
claim in connection with such defense as reasonably determined by the Trustee. The Issuer need not
pay for any settlement made without its written consent. The Issuer need not reimburse any expense
or indemnify against any loss or liability to the extent incurred by the Trustee through its
negligence, bad faith or willful misconduct.

          When the Trustee incurs expenses or renders services after a Default specified in Section
6.01(5) or Section 6.01(6) occurs, such expenses and the compensation for such services shall be
paid to the extent allowed under any Bankruptcy Law.

          Notwithstanding any other provision in this Indenture, the foregoing provisions of this
Section 7.07 shall survive the satisfaction and discharge of this Indenture or the appointment of a
successor Trustee.

SECTION 7.08. Replacement of Trustee.

          The Trustee may resign with respect to the Securities of one or more Series by so notifying
the Issuer at least thirty (30) days prior to the date of the proposed resignation. The Holders of
a majority in principal amount of the Securities of any Series may remove the Trustee with respect
to that Series by so notifying the Issuer and the Trustee and may appoint a successor Trustee. The
Issuer may remove the Trustee with respect to Securities of one or more Series if:

          (1) the Trustee fails to comply with Section 7.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or its property; or

          (4) the Trustee becomes incapable of acting.

          If the Trustee retires, whether by resignation or removal, or if a vacancy exists in the
office of Trustee for any reason, the Issuer shall notify each Holder of such event and shall
promptly appoint a successor Trustee. Within one (1) year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Securities may appoint a
successor Trustee to replace the successor Trustee appointed by the Issuer.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Issuer. Immediately after that, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, the retiring Trustee shall transfer all property held by it as
Trustee to the successor Trustee, the resignation or removal of the retiring Trustee shall become
effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee
with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A
successor Trustee shall mail notice of its succession to each Holder of each such Series and, if
any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized
Newspaper.

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          If a successor Trustee with respect to the Securities of any one or more Series does not take
office within sixty (60) days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Issuer or the Holders of at least ten percent (10%) in principal amount of the
Securities of the applicable Series may petition any court of competent jurisdiction for the
appointment of a successor Trustee at the expense of the Issuer.

          If the Trustee fails to comply with Section 7.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Notwithstanding the appointment of a successor Trustee pursuant to this Section 7.08, the
Issuer’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

SECTION 7.09. Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the resulting, surviving or transferee
corporation without any further act shall, if such resulting, surviving or transferee corporation
is otherwise eligible hereunder, be the successor Trustee; provided, however, that such corporation
shall be otherwise qualified and eligible under this Article Seven.

SECTION 7.10. Eligibility; Disqualification.

          The Trustee shall at all times satisfy the requirements of Trust Indenture Act §§ 310(a)(1),
310(a)(2) and 310(a)(5). The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of condition. The Trustee
shall comply with Trust Indenture Act § 310(b); provided, however, that there shall be excluded
from the operation of Trust Indenture Act § 310(b)(1) any indenture or indentures under which other
securities, or certificates of interest or participation in other securities, of the Issuer are
outstanding, if the requirements for such exclusion set forth in Trust Indenture Act § 310(b)(1)
are met. The provisions of Trust Indenture Act § 310 shall apply to the Issuer and any other
obligor of the Securities.

SECTION 7.11. Preferential Collection of Claims Against the Issuer.

          The Trustee, in its capacity as Trustee hereunder, shall comply with Trust Indenture Act
§ 311(a), excluding any creditor relationship listed in Trust Indenture Act § 311(b). A Trustee
who has resigned or been removed shall be subject to Trust Indenture Act § 311(a) to the extent
indicated.

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ARTICLE EIGHT

DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.01. Termination of the Issuer’s Obligations.

          Except as otherwise provided in the last paragraph of this Section 8.01, this Indenture will
be discharged and will cease to be of further effect as to a Series of Securities issued hereunder,
when either:

          (a) all such Securities that have been authenticated (except lost, stolen or destroyed
Securities that have been replaced or paid and Securities for whose payment money has been
deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the
Issuer or discharged from this trust), have been delivered to the Trustee for cancellation, or

     (b) (1) all such Securities that have not been delivered to the Trustee for
cancellation have become due and payable by reason of the mailing of a notice of redemption
or otherwise or will become due and payable within one year and the Issuer has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders of such Securities cash in Dollars or U.S. Government Obligations, or
a combination thereof, in amounts sufficient (without reinvestment) to pay and discharge the
entire Indebtedness (including all principal and accrued interest) on such Securities not
theretofore delivered to the Trustee for cancellation to the date of maturity or redemption;

     (2) the Issuer has paid or caused to be paid all other sums payable by the Issuer under
this Indenture; and

     (3) the Issuer has delivered irrevocable instructions to the Trustee for such
Securities under this Indenture to apply the deposited money toward the payment of such
Securities at maturity or on the date of redemption, as the case may be.

In addition, the Issuer must deliver an Officers’ Certificate and an Opinion of Counsel to the
Trustee for such Securities stating that all conditions precedent to satisfaction and discharge
have been complied with.

          In the case of clause (b) of this Section 8.01, and subject to the next sentence and
notwithstanding the foregoing paragraph, the Issuer’s obligations in Sections 2.06, 2.07, 2.08,
2.09, 4.01, 4.02, 4.03 (as to legal existence of the Issuer only), 7.07, 8.05 and 8.06 shall
survive until such Securities are no longer outstanding pursuant to the last paragraph of Section
2.09. In addition, nothing in this Section 8.01 shall be deemed to discharge the obligations in
Section 7.07, 8.04(a), 8.05 or 8.06, all of which shall survive the satisfaction and discharge of
this Indenture.

          After such delivery or irrevocable deposit, the Trustee upon request by the Issuer shall
acknowledge in writing the discharge of the Issuer’s obligations under such Securities and this
Indenture except for the surviving obligations specified above.

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SECTION 8.02. Legal Defeasance and Covenant Defeasance.

          (a) The Issuer may at any time, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers’ Certificate, elect to have either Section 8.02(b) or 8.02(c)
applied to all outstanding Securities of any Series upon compliance with the conditions set forth
below in this Article Eight.

          (b) Upon the Issuer’s exercise under Section 8.02(a) of the option applicable to this Section
8.02(b), the Issuer will, subject to the satisfaction of the conditions set forth in Section 8.03,
be deemed to have been discharged from its obligations with respect to all outstanding Securities
of such Series on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Issuer will be deemed to have paid
and discharged the entire Indebtedness represented by the outstanding Securities of such Series,
which will thereafter be deemed to be “outstanding” only for the purposes of Section 8.04 and the
other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied
all its or their other obligations under such Securities and this Indenture (and the Trustee for
such Securities, on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive until otherwise
terminated or discharged hereunder:

          (1) the rights of Holders of outstanding Securities of such Series to receive, solely
from the trust fund described in Section 8.04, and as more fully set forth in Section 8.04,
payments in respect of the principal of or interest on, such Securities when such payments
are due;

          (2) the Issuer’s obligations with respect to such Securities under Article Two and
Section 4.02 hereof;

          (3) the rights, powers, trusts, duties and immunities of the Trustee for such
Securities hereunder and the Issuer’s obligations in connection therewith; and

          (4) the provisions of this Article Eight applicable to Legal Defeasance (including
Sections 8.04, 8.05 and 8.06).

          Subject to compliance with this Article Eight, the Issuer may exercise its option under this
Section 8.02(b) notwithstanding the prior exercise of its option under Section 8.02(c) hereof.

          (c) Upon the Issuer’s exercise under Section 8.02(a) hereof of the option applicable to this
Section 8.02(c), the Issuer will, subject to the satisfaction of the conditions set forth in
Section 8.03 hereof, be released from its obligations under the covenants specified in a Board
Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section
2.02(v), with respect to the outstanding Securities of the applicable Series on and after the date
the conditions set forth in Section 8.03 hereof are satisfied (hereinafter, “Covenant Defeasance”),
and such Securities shall thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders of such Securities (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all
other purposes hereunder (it being understood that such Securities shall not

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be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means
that, with respect to the outstanding Securities of such Series, the Issuer may omit to comply with
and shall have no obligation or liability in respect of any term, condition or limitation set forth
in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein
to any such covenant or by reason of any reference in any such covenant to any other provision
herein or in any other document and such omission to comply shall not constitute a Default under
Section 6.01, but, except as specified above, the remainder of this Indenture and such Securities
will be unaffected thereby. In addition, upon the Issuer’s exercise under Section 8.02(a) of the
option applicable to this Section 8.02(c), subject to the satisfaction of the conditions set forth
in Section 8.03, clause (4) of Section 6.01 shall not constitute an Event of Default.

SECTION 8.03. Conditions to Legal Defeasance or Covenant Defeasance.

     In order to exercise either Legal Defeasance under Section 8.02(b) or Covenant Defeasance
under Section 8.02(c) with respect to Securities of any Series:

          (1) the Issuer must irrevocably deposit with the Trustee for such Securities, in trust,
for the benefit of the Holders of such Securities, money or U.S. Government Obligations or a
combination thereof, in such amounts as will be sufficient (without reinvestment), in the
opinion of a nationally recognized firm of independent public accountants selected by the
Issuer, to pay the principal of and interest on, and any mandatory sinking fund payments in
respect of, the outstanding Securities of such Series on the stated date for payment thereof
or on the applicable redemption date, as the case may be, and the Issuer must specify
whether such Securities are being defeased to such stated date for payment or to a
particular redemption date;

          (2) in the case of Legal Defeasance, the Issuer shall have delivered to the Trustee for
such Securities an Opinion of Counsel in the United States reasonably acceptable to the
Trustee confirming that:

          (i) the Issuer has received from, or there has been published by, the Internal
Revenue Service, a ruling, or

          (ii) since the date of this Indenture, there has been a change in the
applicable U.S. federal income tax law,

in either case to the effect that, and based thereon, the Holders of the outstanding
Securities of such Series will not recognize income, gain or loss for U.S. federal income
tax purposes as a result of such Legal Defeasance and will be subject to U.S. federal income
tax on the same amounts, in the same manner and at the same times as would have been the
case if such Legal Defeasance had not occurred;

          (3) in the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee
for such Securities an Opinion of Counsel in the United States reasonably acceptable to the
Trustee confirming that the Holders of such Securities will not recognize income, gain or
loss for U.S. federal income tax purposes as a result of such Covenant Defeasance and will
be subject to U.S. federal income tax on the same

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amounts, in the same manner and at the same times as would have been the case if such
Covenant Defeasance had not occurred;

          (4) no Default with respect to such Securities shall have occurred and be continuing on
the date of such deposit (other than a Default resulting from the borrowing of funds to be
applied to such deposit);

          (5) the Legal Defeasance or Covenant Defeasance shall not result in a breach or
violation of, or constitute a default under, any material agreement or instrument to which
the Issuer or any of its Subsidiaries is a party or by which the Issuer or any of its
Subsidiaries is bound (other than any such default resulting solely from the borrowing of
funds to be applied to such deposit and the grant of any Lien on such deposit in favor of
the Trustee and/or the Holders);

          (6) the Issuer shall have delivered to the Trustee for such Securities an Officers’
Certificate stating that the deposit was not made by the Issuer with the intent of
preferring the Holders of such Securities over any other creditors of the Issuer or with the
intent of defeating, hindering, delaying or defrauding any other of its creditors; and

          (7) the Issuer shall have delivered to the Trustee for such Securities an Officers’
Certificate and an Opinion of Counsel, stating, in the case of the Officers’ Certificate,
clauses (1) through (6) of this Section 8.03, as applicable, have been complied with and
stating, in the case of the Opinion of Counsel, that the conditions provided for in clause
(2) or (3), as applicable, and clause (5) of this Section 8.03 have been complied with.

SECTION 8.04. Application of Trust Money.

          (a) The Trustee or Paying Agent shall hold in trust all money and U.S. Government Obligations
(including the proceeds thereof) deposited with it pursuant to this Article Eight in respect of the
outstanding Securities of any Series, and shall apply the deposited money and U.S. Government
Obligations (including any proceeds thereof) in accordance with this Indenture to the payment of
the principal of and the interest on such Securities. The Trustee shall be under no obligation to
invest said money and U.S. Government Obligations (including any proceeds thereof), except as it
may agree with the Issuer.

          (b) The Issuer will pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the money or U.S. Government Obligations (including any proceeds thereof)
deposited pursuant to Section 8.03, 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 of the applicable Series.

          (c) Anything in this Article Eight to the contrary notwithstanding, the Trustee shall promptly
deliver or pay to the Issuer from time to time upon the request of the Issuer any money or U.S.
Government Obligations held by it as provided in Section 8.03 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 excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

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SECTION 8.05. Repayment to the Issuer.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer, in trust
for the payment of the principal of, premium, if any, or interest on, any Series of Securities and
remaining unclaimed for two years after such principal, premium, if any, or interest has become due
and payable shall be paid to the Issuer on its request or (if then held by the Issuer) will be
discharged from such trust; and the Holders of such Securities will thereafter be permitted to look
only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Issuer as trustee thereof, will 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 Issuer cause to be published once, in the New York Times
and The Wall Street Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than thirty (30) days from the date of such
notification or publication, any unclaimed balance of such money then remaining will be repaid to
the Issuer.

SECTION 8.06. Reinstatement.

          If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in
accordance with this Article Eight or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Issuer’s Obligations under this Indenture and the applicable Securities shall be revived and
reinstated as though no deposit had occurred pursuant to this Article Eight until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance with this Article Eight;
provided, however, that if the Issuer has made any payment of interest on, or principal of, any
such Securities following the reinstatement of its obligations, the Issuer shall be subrogated to
the rights of the Holders of such Securities to receive such payment from the money or U.S.
Government Obligations held by the Trustee or Paying Agent.

ARTICLE NINE

AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01. Without Consent of Holders.

     Subject to Section 9.02 of this Indenture, the Issuer and the Trustee may amend or supplement
this Indenture or the Securities of one or more Series without the consent of any Holder:

          (1) to cure any ambiguity, defect or inconsistency;

          (2) to provide for uncertificated Securities in addition to or in place of certificated
Securities;

          (3) to provide for the assumption of the Issuer’s obligations to the Holders of the
Securities in the case of a merger, consolidation or sale of all or substantially all of the
assets, in accordance with Article Five;

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          (4) to make any change that would provide any additional rights or benefits to the
Holders of Securities or that does not adversely affect the legal rights hereunder of any
Holder;

          (5) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act;

          (6) to provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture; or

          (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more Series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee.

          Upon the request of the Issuer accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.02(b), the Trustee will join with the Issuer in the
execution of any amended or supplemental indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

SECTION 9.02. With Consent of Holders.

          (a) The Issuer and the Trustee may enter into a supplemental indenture hereto with the written
consent of the Holders of at least a majority in aggregate principal amount of the outstanding
Securities of each Series affected by such supplemental indenture (including consents obtained in
connection with a tender offer or exchange offer for the Securities of such Series), for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of any supplemental indenture hereto or of modifying in any manner the rights
of the Holders of each such Series. Subject to Section 6.07, the Holders of at least a majority in
aggregate principal amount of the outstanding Securities of each Series by notice to the Trustee
(including waivers obtained in connection with a tender offer or exchange offer for the Securities
of such Series) may waive compliance by the Issuer with any provision of this Indenture or the
Securities with respect to such Series without notice to any other Holders.

          (b) Notwithstanding Section 9.02(a), without the consent of each Holder affected, no amendment
or waiver may (with respect to any Securities held by a non-consenting Holder):

          (1) reduce the principal or change the Stated Maturity of any Security or reduce the
amount of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;

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          (2) reduce the rate of or extend the time for payment of interest on any Security;

          (3) reduce the principal amount of Discount Securities payable upon acceleration of the
maturity thereof;

          (4) waive a redemption payment with respect to any Security or change any of the
provisions with respect to the redemption of any Securities, except as specifically set
forth in the Board Resolution, supplemental indenture or Officers’ Certificate delivered
pursuant to Section 2.02;

          (5) make the principal of or interest, if any, on any Security payable in money or
currency other than that stated in the Security;

          (6) waive a Default in the payment of principal of or interest on any Security (except
a rescission of acceleration of the Securities of any Series by the Holders of at least a
majority in principal amount of the outstanding Securities of such Series and a waiver of
the payment Default that resulted from such acceleration);

          (7) change the amount of Securities whose Holders must consent to an amendment,
supplement or waiver; or

          (8) make any change in Section 6.07, this Section 9.02(b), Section 10.14 or Section
10.15.

          (c) It shall not be necessary for the consent of the Holders of Securities under this Section
9.02 to approve the particular form of any proposed amendment, supplement or waiver, but it shall
be sufficient if such consent approves the substance thereof.

          (d) A consent to any amendment, supplement or waiver under this Indenture by any Holder given
in connection with an exchange (in the case of an exchange offer) or a tender (in the case of a
tender offer) of such Holder’s Securities will not be rendered invalid by such tender or exchange.

          (e) After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Issuer shall mail, or cause to be mailed, to the Holders of Securities affected thereby and, if any
Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized
Newspaper, a notice briefly describing the amendment, supplement or waiver. Any failure of the
Issuer to mail or publish such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such amendment, supplement or waiver.

SECTION 9.03. Compliance with the Trust Indenture Act.

          Every amendment to this Indenture or the Securities of one or more Series shall be set forth
in a supplemental indenture hereto that complies with the Trust Indenture Act as then in effect.

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SECTION 9.04. Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion
of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of
the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security before the date on which the Trustee
receives an Officers’ Certificate certifying that the Holders of the requisite Securities have
consented (and not theretofore revoked such consent) to the amendment, supplement or waiver.

          The Issuer may, but shall not be obligated to, fix a record date for the purpose of
determining the Holders entitled to consent to any amendment, supplement or waiver, which record
date shall be at least thirty (30) days prior to the first solicitation of such consent. If a
record date is fixed, then notwithstanding the last sentence of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to revoke any consent previously given, whether or not
such Persons continue to be Holders after such record date. No such consent shall be valid or
effective for more than ninety (90) days after such record date. The Issuer shall inform the
Trustee in writing of the fixed record date if applicable.

          After an amendment, supplement or waiver becomes effective, it shall bind every Holder, unless
it makes a change described in any of clauses (1) through (9) of Section 9.02(b), in which case,
the amendment, supplement or waiver shall bind only each Holder of Securities who has consented to
it and every subsequent Holder of a Securities or portion of Securities that evidences the same
debt as the consenting Holder’s Securities; provided, however, that no such amendment, supplement
or waiver shall impair or affect the right of any Holder to receive payment of principal of, and
interest on, a Security, on or after the respective due dates therefor, or to bring suit for the
enforcement of any such payment on or after such respective dates without the consent of such
Holder.

SECTION 9.05. Notation on or Exchange of Securities.

          If an amendment, supplement or waiver changes the terms of a Security, the Issuer may require
the Holder of the Security to deliver it to the Trustee. The Issuer shall provide the Trustee with
an appropriate notation on the Security about the changed terms and cause the Trustee to return it
to the Holder at the Issuer’s expense. Alternatively, if the Issuer or the Trustee so determines,
the Issuer in exchange for the Security shall issue, and the Trustee shall authenticate, a new
Security that reflects the changed terms. Failure to make the appropriate notation or issue a new
Security shall not affect the validity and effect of such amendment, supplement or waiver.

SECTION 9.06. Trustee To Sign Amendments, Etc.

          The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this
Article Nine; provided, however, that the Trustee may, but shall not be obligated to, execute any
such amendment, supplement or waiver which affects the Trustee’s own rights,

 - 42 - 

 

duties or immunities under this Indenture. The Trustee shall be entitled to receive, and
shall be fully protected in relying upon, an Opinion of Counsel and an Officers’ Certificate each
stating that the execution of any amendment, supplement or waiver authorized pursuant to this
Article Nine is authorized or permitted by this Indenture and constitutes legal, valid and binding
obligations of the Issuer enforceable in accordance with its terms, subject to customary
exceptions. Such Opinion of Counsel shall be at the expense of the Issuer.

SECTION 9.07. Trustee Protected.

          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 Section 7.01) shall be fully protected in
relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures
hereto, except that the Trustee need not sign any supplemental indenture that adversely affects its
rights.

ARTICLE TEN

MISCELLANEOUS

SECTION 10.01. Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies, or conflicts with another provision
which is required or deemed to be included in this Indenture by the Trust Indenture Act, such
required or deemed provision shall control.

SECTION 10.02. Notices.

          Any notices or other communications to the Issuer, any Subsidiary of the Issuer, or the
Trustee required or permitted hereunder shall be in writing, and shall be sufficiently given if
made by hand delivery, by nationally recognized overnight courier service, by facsimile
transmission or registered or certified mail, postage prepaid, return receipt requested, addressed
as follows:

if to the Issuer or any of its Subsidiaries:

Art Technology Group, Inc.

One Main Street

Cambridge, Massachusetts 02142

Attention:    Chief Financial Officer

Telephone:   (617) 386-1000

Facsimile:      •

With a copy to (which copy alone shall not constitute notice):

Art Technology Group, Inc.

One Main Street

 - 43 - 

 

Cambridge, Massachusetts 02142

Attention:     General Counsel

Telephone:      (617) 386-1000

Facsimile:       •

And with a copy to (which copy alone shall not constitute notice):

Foley Hoag LLP

Seaport World Trade Center West

155 Seaport Boulevard

Boston, Massachusetts 02210

Attention:       John D. Patterson, Esq.

Telephone:     (617) 832-1000

Facsimile:       (617) 832-7000

if to the Trustee:

                                        

                                        

                                        

Attention:                                          

Telephone:                                         

Facsimile:                                            

          Each of the Issuer (both for itself and any of its Subsidiaries) and the Trustee by written
notice to each other such Person may designate additional or different addresses for notices to
such Person. Any notice or communication to the Issuer, any Subsidiary of the Issuer, and the
Trustee shall be deemed to have been given or made as of the date so delivered if personally
delivered; when replied to; when receipt is acknowledged, if sent by facsimile transmission during
normal business hours of the recipient, or, if not sent during normal business hours of the
recipient, on the Business Day after the day receipt is acknowledged; five (5) calendar days after
mailing if sent by registered or certified mail, postage prepaid (except that a notice of change of
address shall not be deemed to have been given until actually received by the addressee); one (1)
Business Day after deposit with a nationally recognized overnight courier service guaranteeing
overnight delivery of such notice or communication.

          Any notice or communication to a Holder required or permitted hereunder shall be mailed to the
Holder at the Holder’s address as it appears on the registration books of the Registrar and, if any
Bearer Securities are outstanding, published in an Authorized Newspaper.

          Failure to mail a notice or communication to a Holder of Securities of any Series or any
defect in it shall not affect its sufficiency with respect to other Holders of that or any other
Series. If a notice or communication is mailed or published in the manner provided above, within
the time prescribed, it is duly given, whether or not the addressee receives it.

          If the Issuer mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time.

 - 44 - 

 

SECTION 10.03. Communications by Holders with Other Holders.

          Holders of any Series may communicate pursuant to Trust Indenture Act § 312(b) with other
Holders of that Series or any other Series with respect to their rights under this Indenture or the
Securities of that Series or any other Series. The Issuer, the Trustee, the Registrar and any other
Person shall have the protection of Trust Indenture Act § 312(c).

SECTION 10.04. Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Issuer to the Trustee to take any action under this
Indenture, the Issuer shall furnish to the Trustee, at the request of the Trustee:

          (1) an Officers’ Certificate, in form and substance reasonably satisfactory to the
Trustee, stating that all conditions precedent, if any, to be performed or effected by the
Issuer, if any, provided for in this Indenture relating to the proposed action have been
complied with; and

          (2) an Opinion of Counsel, in form and substance reasonably satisfactory to the
Trustee, stating that, in the opinion of such counsel, all such conditions precedent, if
any, have been complied with.

SECTION 10.05. Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than the Officers’ Certificate required by Section 4.04 or a
certificate provided pursuant to Trust Indenture Act § 314(a)(4)) shall comply with the provisions
of Trust Indenture Act § 314(e) and shall include:

          (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

          (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;

          (3) a statement that, in the opinion of such Person, 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 has been complied with or satisfied; and

          (4) a statement as to whether or not, in the opinion of each such Person, such
condition or covenant has been complied with; provided, however, that with respect to
matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.

 - 45 - 

 

SECTION 10.06. Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or a meeting of Holders of one or more
Series. Any Agent may make reasonable rules and set reasonable requirements for its functions.

SECTION 10.07. Legal Holidays.

          If a payment date is not a Business Day, payment may be made on the next succeeding day that
is a Business Day.

SECTION 10.08. Governing Laws.

          This Indenture and the Securities will be governed by and construed in accordance with the
laws of the State of New York.

SECTION 10.09. No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of any
of the Issuer or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture.

SECTION 10.10. No Recourse Against Others.

          No director, officer, employee, incorporator, stockholder, member or manager of the Issuer or
any Subsidiary shall have any liability for any obligations of the Issuer or any Subsidiary under
the Securities of any Series or this Indenture or for any claim based on, in respect of, or by
reason of such obligations or their creation, and no Officer shall have any personal liability for
any Officers’ Certificate signed by such Officer or any inaccuracy therein. Each Holder of
Securities of any Series by accepting such Securities waives and releases all such liability. Such
waiver and release shall be part of the consideration for issuance of such Securities.

SECTION 10.11. Successors.

          All agreements of the Issuer or any Subsidiary in this Indenture and the Securities shall bind
their respective successors. All agreements of the Trustee in this Indenture shall bind its
successor.

SECTION 10.12. Duplicate Originals.

          All parties may sign any number of copies of this Indenture. Each signed copy or counterpart
shall be an original, but all of them together shall represent the same agreement.

SECTION 10.13. Severability.

          To the extent permitted by applicable law, in case any one or more of the provisions in this
Indenture or in the Securities shall be held invalid, illegal or unenforceable, in

 - 46 - 

 

 any respect for any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions shall not in any way be affected or impaired
thereby, it being intended that all of the provisions hereof shall be enforceable to the full
extent permitted by law.

SECTION 10.14. Securities in a Foreign Currency or in ECU.

          Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate delivered pursuant to Section 2.02 of this Indenture with respect to a
particular Series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all Series or
all Series affected by a particular action at the time outstanding and, at such time, there are
outstanding Securities of any Series which are denominated in a coin or currency other than Dollars
(including ECUs), then the principal amount of Securities of such Series which shall be deemed to
be outstanding for the purpose of taking such action shall be that amount of Dollars that could be
obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section
10.14, “Market Exchange Rate” shall mean the noon Dollar buying rate in New York City, New York for
cable transfers of that currency as published by the Federal Reserve Bank of New York; provided,
however, in the case of ECUs, “Market Exchange Rate” shall mean the rate of exchange determined by
the Commission of the European Union (or any successor thereto) as published in the Official
Journal of the European Union (such publication or any successor publication, the “Journal”). If
such Market Exchange Rate is not available for any reason with respect to such currency, the
Trustee shall use, in its sole discretion and without liability on its part, such quotation of the
Federal Reserve Bank of New York or, in the case of ECUs, the rate of exchange as published in the
Journal, as of the most recent available date, or quotations or, in the case of ECUs, rates of
exchange from one or more major banks in The City of New York, New York or in the country of issue
of the currency in question or, in the case of ECUs, in Luxembourg or such other quotations or, in
the case of ECUs, rates of exchange as the Trustee, upon consultation with the Issuer, shall deem
appropriate. The provisions of this paragraph shall apply in determining the equivalent principal
amount in respect of Securities of a Series denominated in currency other than Dollars in
connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

          All decisions and determinations of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, to the extent permitted by law, be conclusive for all
purposes and irrevocably binding upon the Issuer and all Holders.

SECTION 10.15. Judgment Currency.

          The Issuer agrees, to the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of or interest or other amount on the Securities of any Series (the
“Required Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York, New York the Required Currency with
the Judgment Currency on the day on which final unappealable

 - 47 - 

 

 judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange
used shall be the rate at which in accordance with normal banking procedures the Trustee could
purchase in The City of New York, New York the Required Currency with the Judgment Currency on the
New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not
entered in accordance with the preceding clause (a) of this Section 10.15), in any currency other
than the Required Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable
in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of
action for the purpose of recovering in the Required Currency the amount, if any, by which such
actual receipt shall fall short of the full amount of the Required Currency so expressed to be
payable, and (iii) shall not be affected by judgment being obtained for any other sum due under
this Indenture. For purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York, New York on which banking institutions
are authorized or required by law, regulation or executive order to close.

ARTICLE ELEVEN

SINKING FUNDS

SECTION 11.01. Applicability of Article.

          The provisions of this Article shall be applicable to any sinking fund for the retirement of
the Securities of a Series, except as otherwise permitted or required by any form of Security of
such Series issued pursuant to this Indenture.

          The minimum amount of any sinking fund payment provided for by the terms of the Securities of
any Series is herein referred to as a “mandatory sinking fund payment” and any other amount
provided for by the terms of Securities of such Series is herein referred to as an “optional
sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of
any sinking fund payment may be subject to reduction as provided in Section 11.02. Each sinking
fund payment shall be applied to the redemption of Securities of any Series as provided for by the
terms of the Securities of such Series.

SECTION 11.02. Satisfaction of Sinking Fund Payments with Securities.

          The Issuer may, in satisfaction of all or any part of any sinking fund payment with respect to
the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver
outstanding Securities of such Series to which such sinking fund payment is applicable (other than
any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as
credit Securities of such Series to which such sinking fund payment is applicable and which have
been repurchased by the Issuer or redeemed either at the election of the Issuer pursuant to the
terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the
application of permitted optional sinking fund payments or other optional redemptions pursuant to
the terms of such Securities, provided that such Securities have

 - 48 - 

 

not been previously so credited. Such Securities shall be received by the Trustee, together
with an Officers’ Certificate with respect thereto, not later than fifteen (15) days prior to the
date on which the Trustee begins the process of selecting Securities for redemption, and shall be
credited for such purpose by the Trustee at the price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments
pursuant to this Section 11.02, the principal amount of Securities of such Series to be redeemed in
order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call
Securities of such Series for redemption, except upon receipt of an Issuer Order that such action
be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the
next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent
shall from time to time upon receipt of an Issuer Order pay over and deliver to the Issuer any cash
payment so being held by the Trustee or such Paying Agent upon delivery by the Issuer to the
Trustee of Securities of that Series purchased by the Issuer having an unpaid principal amount
equal to the cash payment required to be released to the Issuer.

SECTION 11.03. Redemption of Securities for Sinking Fund.

          Not less than forty-five (45) days (unless otherwise indicated in the Board Resolution,
supplemental indenture or Officers’ Certificate in respect of a particular Series of Securities)
prior to each sinking fund payment date for any Series of Securities, the Issuer will deliver to
the Trustee an Officers’ Certificate specifying the amount of the next ensuing mandatory sinking
fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.02, and
the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund
payment, and the Issuer shall thereupon be obligated to pay the amount therein specified.

          Not less than thirty (30) days (unless otherwise indicated in the Board Resolution,
supplemental indenture or Officers’ Certificate in respect of a particular Series of Securities)
before each such sinking fund payment date the Trustee shall select the Securities to be redeemed
upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Issuer in the manner
provided in Section 3.03. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 3.04, 3.05 and 3.06.

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed.

 - 49 - 

 

	 	 	 	 	 
	 	ART TECHNOLOGY GROUP, INC.,

      as Issuer

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its: 	 
	 

	 	 	 	, 	 
	 

	 	 

 
 
 
as Trustee	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Its: 	 
	 

 - 50 -exv10w1

Exhibit 10.1

EXECUTION VERSION

$100,000,000 REVOLVING CREDIT FACILITY

CREDIT AGREEMENT

by and among

THE NORTH AMERICAN COAL CORPORATION

and

THE LENDERS PARTY HERETO

and

U.S. BANK NATIONAL ASSOCIATION and REGIONS BANK, as Co-Syndication Agents

and

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

Dated as of October 27, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	1.	 	CERTAIN DEFINITIONS	 	1
	 	 	1.1	 	Certain Definitions	 	1
	 	 	1.2	 	Construction	 	22
	 	 	1.3	 	Accounting Principles	 	23
	 
	 	 	 	 	 	 	 	 
	2.	 	REVOLVING CREDIT AND SWING LOAN FACILITIES	 	23
	 	 	2.1	 	Revolving Credit Commitments	 	23
	 
	 	 	 	2.1.1	 	Revolving Credit Loans	 	23
	 
	 	 	 	2.1.2	 	Swing Loan Commitment	 	24
	 	 	2.2	 	Nature of Lenders’ Obligations with Respect to Revolving Credit Loans	 	24
	 	 	2.3	 	Commitment Fees	 	24
	 	 	2.4	 	[Intentionally Omitted]	 	24
	 	 	2.5	 	Revolving Credit Loan Requests; Swing Loan Requests	 	25
	 
	 	 	 	2.5.1	 	Revolving Credit Loan Requests	 	25
	 
	 	 	 	2.5.2	 	Swing Loan Requests	 	25
	 	 	2.6	 	Making Revolving Credit Loans and Swing Loans; Presumptions by the
Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay
Swing Loans	 	25
	 
	 	 	 	2.6.1	 	Making Revolving Credit Loans	 	25
	 
	 	 	 	2.6.2	 	Presumptions by the Administrative Agent	 	26
	 
	 	 	 	2.6.3	 	Making Swing Loans	 	26
	 
	 	 	 	2.6.4	 	Repayment of Revolving Credit Loans	 	26
	 
	 	 	 	2.6.5	 	Borrowings to Repay Swing Loans	 	26
	 	 	2.7	 	Notes	 	27
	 	 	2.8	 	Use of Proceeds	 	27
	 	 	2.9	 	Letter of Credit Subfacility	 	27
	 
	 	 	 	2.9.1	 	Issuance of Letters of Credit	 	27
	 
	 	 	 	2.9.2	 	Letter of Credit Fees	 	28
	 
	 	 	 	2.9.3	 	Disbursements, Reimbursement	 	28
	 
	 	 	 	2.9.4	 	Repayment of Participation Advances	 	29
	 
	 	 	 	2.9.5	 	Documentation	 	30
	 
	 	 	 	2.9.6	 	Determinations to Honor Drawing Requests	 	30
	 
	 	 	 	2.9.7	 	Nature of Participation and Reimbursement Obligations	 	30
	 
	 	 	 	2.9.8	 	Indemnity	 	32
	 
	 	 	 	2.9.9	 	Liability for Acts and Omissions	 	32
	 
	 	 	 	2.9.10	 	Issuing Lender Reporting Requirements	 	33
	 	 	2.10	 	Reduction of Revolving Credit Commitment 	 	34
	 	 	2.11	 	Increase in Revolving Credit Commitments 	 	34
	 
	 	 	 	2.11.1	 	Increasing Lenders and New Lenders	 	34
	 
	 	 	 	2.11.2	 	Treatment of Outstanding Loans and Letters of Credit	 	35

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	3.	 	[INTENTIONALLY OMITTED]	 	35
	 
	 	 	 	 	 	 	 	 
	4.	 	INTEREST RATES	 	35
	 	 	4.1	 	Interest Rate Options	 	35
	 
	 	 	 	4.1.1	 	Revolving Credit Interest Rate Options; Swing Line Interest Rate	 	36
	 
	 	 	 	4.1.2	 	Rate Quotations	 	36
	 	 	4.2	 	Interest Periods	 	36
	 
	 	 	 	4.2.1	 	Amount of Borrowing Tranche	 	36
	 
	 	 	 	4.2.2	 	Renewals	 	36
	 	 	4.3	 	Interest After Default	 	36
	 
	 	 	 	4.3.1	 	Letter of Credit Fees, Interest Rate	 	37
	 
	 	 	 	4.3.2	 	Other Obligations	 	37
	 
	 	 	 	4.3.3	 	Acknowledgment	 	37
	 	 	4.4	 	LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits
Not Available	 	37
	 
	 	 	 	4.4.1	 	Unascertainable	 	37
	 
	 	 	 	4.4.2	 	Illegality; Increased Costs; Deposits Not Available	 	37
	 
	 	 	 	4.4.3	 	Administrative Agent’s and Lender’s Rights	 	37
	 	 	4.5	 	Selection of Interest Rate Options	 	38
	 
	 	 	 	 	 	 	 	 
	5.	 	PAYMENTS	 	38
	 	 	5.1	 	Payments	 	38
	 	 	5.2	 	Pro Rata Treatment of Lenders	 	39
	 	 	5.3	 	Sharing of Payments by Lenders	 	39
	 	 	5.4	 	Presumptions by Administrative Agent	 	40
	 	 	5.5	 	Interest Payment Dates	 	40
	 	 	5.6	 	Voluntary Prepayments	 	41
	 
	 	 	 	5.6.1	 	Right to Prepay	 	41
	 
	 	 	 	5.6.2	 	Replacement of a Lender	 	41
	 	 	5.7	 	[Intentionally Omitted]	 	42
	 	 	5.8	 	Increased Costs	 	42
	 
	 	 	 	5.8.1	 	Increased Costs Generally	 	42
	 
	 	 	 	5.8.2	 	Capital Requirements	 	43
	 
	 	 	 	5.8.3	 	Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans	 	43
	 
	 	 	 	5.8.4	 	Delay in Requests	 	43
	 	 	5.9	 	Taxes	 	43
	 
	 	 	 	5.9.1	 	Payments Free of Taxes	 	43
	 
	 	 	 	5.9.2	 	Payment of Other Taxes by the Borrower	 	44
	 
	 	 	 	5.9.3	 	Indemnification by the Borrower	 	44
	 
	 	 	 	5.9.4	 	Evidence of Payments	 	44
	 
	 	 	 	5.9.5	 	Status of Lenders	 	44
	 	 	5.10	 	Indemnity	 	45
	 	 	5.11	 	Settlement Date Procedures	 	46

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	6.	 	REPRESENTATIONS AND WARRANTIES	 	46
	 	 	6.1	 	Representations and Warranties	 	46
	 	 	 	 	6.1.1	 	Organization and Qualification; Power and Authority;
Compliance With Laws; Title to Properties; Event of Default	 	46
	 
	 	 	 	6.1.2	 	Subsidiaries and Owners; Investment Companies	 	47
	 
	 	 	 	6.1.3	 	Validity and Binding Effect	 	47
	 
	 	 	 	6.1.4	 	No Conflict; Material Contracts; Consents	 	47
	 
	 	 	 	6.1.5	 	Litigation	 	48
	 
	 	 	 	6.1.6	 	Financial Statements	 	48
	 
	 	 	 	6.1.7	 	Margin Stock	 	49
	 
	 	 	 	6.1.8	 	Full Disclosure	 	49
	 
	 	 	 	6.1.9	 	Taxes	 	49
	 
	 	 	 	6.1.10	 	Patents, Trademarks, Copyrights, Licenses, Etc	 	49
	 
	 	 	 	6.1.11	 	Employment Matters	 	49
	 
	 	 	 	6.1.12	 	Insurance	 	50
	 
	 	 	 	6.1.13	 	ERISA Compliance	 	50
	 
	 	 	 	6.1.14	 	Environmental Matters	 	51
	 
	 	 	 	6.1.15	 	Title to Property	 	52
	 
	 	 	 	6.1.16	 	Solvency	 	53
	 
	 	 	 	6.1.17	 	Coal Act; Black Lung Act	 	53
	 
	 	 	 	6.1.18	 	Bonding Capacity	 	53
	 
	 	 	 	6.1.19	 	Permit Blockage	 	53
	 	 	6.2	 	Updates to Schedules	 	53
	 
	 	 	 	 	 	 	 	 
	7.	 	CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT	 	53
	 	 	7.1	 	First Loans and Letters of Credit	 	54
	 
	 	 	 	7.1.1	 	Deliveries	 	54
	 
	 	 	 	7.1.2	 	Payment of Fees	 	55
	 	 	7.2	 	Each Loan or Letter of Credit	 	55
	 
	 	 	 	 	 	 	 	 
	8.	 	COVENANTS	 	55
	 	 	8.1	 	Affirmative Covenants	 	55
	 
	 	 	 	8.1.1	 	Preservation of Existence, Etc	 	55
	 
	 	 	 	8.1.2	 	Payment of Liabilities, Including Taxes, Etc	 	55
	 
	 	 	 	8.1.3	 	Maintenance of Insurance	 	56
	 
	 	 	 	8.1.4	 	Maintenance of Properties and Leases	 	56
	 
	 	 	 	8.1.5	 	Visitation Rights	 	56
	 
	 	 	 	8.1.6	 	Keeping of Records and Books of Account	 	56
	 
	 	 	 	8.1.7	 	Compliance with Laws; Use of Proceeds	 	56
	 
	 	 	 	8.1.8	 	Anti-Terrorism Laws	 	57
	 
	 	 	 	8.1.9	 	Maintenance of Material Contracts	 	57
	 
	 	 	 	8.1.10	 	Maintenance of Licenses, Etc	 	57
	 
	 	 	 	8.1.11	 	Maintenance of Permits	 	57
	 	 	8.2	 	Negative Covenants	 	57
	 
	 	 	 	8.2.1	 	Indebtedness	 	57
	 
	 	 	 	8.2.2	 	Liens, Etc	 	58

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	 	 	 	8.2.3	 	Guaranties	 	59
	 
	 	 	 	8.2.4	 	Loans and Investments	 	59
	 
	 	 	 	8.2.5	 	Dividends and Related Distributions	 	61
	 
	 	 	 	8.2.6	 	Liquidations, Mergers, Consolidations, Acquisitions	 	61
	 
	 	 	 	8.2.7	 	Dispositions of Assets or Subsidiaries	 	61
	 
	 	 	 	8.2.8	 	Affiliate Transactions	 	63
	 
	 	 	 	8.2.9	 	Subsidiaries, Partnerships and Joint Ventures	 	63
	 
	 	 	 	8.2.10	 	Continuation of or Change in Business	 	63
	 
	 	 	 	8.2.11	 	Fiscal Year	 	63
	 
	 	 	 	8.2.12	 	Issuance of Stock	 	64
	 
	 	 	 	8.2.13	 	Changes in Organizational Documents	 	64
	 
	 	 	 	8.2.14	 	Negative Pledges	 	64
	 
	 	 	 	8.2.15	 	Amendments to Senior Note Purchase Agreements	 	64
	 
	 	 	 	8.2.16	 	Maximum Debt/EBITDA Ratio	 	65
	 
	 	 	 	8.2.17	 	Minimum Interest Coverage Ratio	 	65
	 	 	8.3	 	Reporting Requirements	 	65
	 
	 	 	 	8.3.1	 	Quarterly Financial Statements	 	65
	 
	 	 	 	8.3.2	 	Annual Financial Statements	 	65
	 
	 	 	 	8.3.3	 	Certificate of the Borrower	 	65
	 
	 	 	 	8.3.4	 	Notices	 	65
	 
	 	 	 	 	 	 	 	 
	9.	 	DEFAULT	 	66
	 	 	9.1	 	Events of Default	 	66
	 
	 	 	 	9.1.1	 	Payments Under Loan Documents	 	66
	 
	 	 	 	9.1.2	 	Breach of Warranty	 	67
	 
	 	 	 	9.1.3	 	Breach of Negative Covenants or Visitation Rights	 	67
	 
	 	 	 	9.1.4	 	Breach of Other Covenants	 	67
	 
	 	 	 	9.1.5	 	Defaults in Other Agreements or Indebtedness	 	67
	 
	 	 	 	9.1.6	 	Final Judgments or Orders	 	67
	 
	 	 	 	9.1.7	 	Loan Document Unenforceable	 	67
	 
	 	 	 	9.1.8	 	[Intentionally Omitted]	 	67
	 
	 	 	 	9.1.9	 	Events Relating to Plans and Benefit Arrangements	 	67
	 
	 	 	 	9.1.10	 	Change in Control	 	68
	 
	 	 	 	9.1.11	 	Relief Proceedings	 	68
	 	 	9.2	 	Consequences of Event of Default	 	68
	 
	 	 	 	9.2.1	 	Events of Default Other Than Bankruptcy, Insolvency or	 	 
	 
	 	 	 	 	 	Reorganization Proceedings	 	68
	 
	 	 	 	9.2.2	 	Bankruptcy, Insolvency or Reorganization Proceedings	 	68
	 
	 	 	 	9.2.3	 	Set-off	 	68
	 
	 	 	 	9.2.4	 	Application of Proceeds	 	69
	 
	 	 	 	 	 	 	 	 
	10.	 	THE ADMINISTRATIVE AGENT	 	69
	 	 	10.1	 	Appointment and Authority	 	69
	 	 	10.2	 	Rights as a Lender	 	70
	 	 	10.3	 	Exculpatory Provisions	 	70
	 	 	10.4	 	Reliance by Administrative Agent	 	71

iv

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	10.5	 	Delegation of Duties	 	71
	 	 	10.6	 	Resignation of Administrative Agent	 	71
	 	 	10.7	 	Non-Reliance on Administrative Agent and Other Lenders	 	72
	 	 	10.8	 	No Other Duties, etc	 	72
	 	 	10.9	 	Administrative Agent’s Fee	 	72
	 	 	10.10	 	No Reliance on Administrative Agent’s Customer Identification Program	 	73
	 
	 	 	 	 	 	 	 	 
	11.	 	MISCELLANEOUS	 	73
	 	 	11.1	 	Modifications, Amendments or Waivers	 	73
	 
	 	 	 	11.1.1	 	Increase of Commitment	 	73
	 
	 	 	 	11.1.2	 	Extension of Payment; Reduction of Principal Interest or Fees; Modification of Terms of Payment	 	73
	 
	 	 	 	11.1.3	 	Miscellaneous	 	73
	 	 	11.2	 	No Implied Waivers; Cumulative Remedies	 	74
	 	 	11.3	 	Expenses; Indemnity; Damage Waiver	 	74
	 
	 	 	 	11.3.1	 	Costs and Expenses	 	74
	 
	 	 	 	11.3.2	 	Indemnification by the Borrower	 	74
	 
	 	 	 	11.3.3	 	Reimbursement by Lenders	 	75
	 
	 	 	 	11.3.4	 	Waiver of Consequential Damages, Etc	 	75
	 
	 	 	 	11.3.5	 	Payments	 	75
	 	 	11.4	 	Holidays.	 	75
	 	 	11.5	 	Notices; Effectiveness; Electronic Communication	 	76
	 
	 	 	 	11.5.1	 	Notices Generally	 	76
	 
	 	 	 	11.5.2	 	Electronic Communications	 	76
	 
	 	 	 	11.5.3	 	Change of Address, Etc	 	77
	 	 	11.6	 	Severability	 	77
	 	 	11.7	 	Duration; Survival	 	77
	 	 	11.8	 	Successors and Assigns	 	77
	 
	 	 	 	11.8.1	 	Successors and Assigns Generally	 	77
	 
	 	 	 	11.8.2	 	Assignments by Lenders	 	77
	 
	 	 	 	11.8.3	 	Register	 	79
	 
	 	 	 	11.8.4	 	Participations	 	79
	 
	 	 	 	11.8.5	 	Limitations upon Participant Rights Successors and Assigns Generally	 	80
	 
	 	 	 	11.8.6	 	Certain Pledges; Successors and Assigns Generally	 	80
	 	 	11.9	 	Confidentiality	 	80
	 
	 	 	 	11.9.1	 	General	 	80
	 
	 	 	 	11.9.2	 	Sharing Information With Affiliates of the Lenders	 	80
	 	 	11.10	 	Counterparts; Integration; Effectiveness	 	81
	 
	 	 	 	11.10.1	 	Counterparts; Integration; Effectiveness	 	81
	 	 	11.11	 	CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE;
SERVICE OF PROCESS; WAIVER OF JURY TRIAL	 	81
	 
	 	 	 	11.11.1	 	Governing Law	 	81
	 
	 	 	 	11.11.2	 	SUBMISSION TO JURISDICTION	 	81
	 
	 	 	 	11.11.3	 	WAIVER OF VENUE	 	82
	 
	 	 	 	11.11.4	 	SERVICE OF PROCESS	 	82
	 
	 	 	 	11.11.5	 	WAIVER OF JURY TRIAL	 	82

v

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 	 	11.12	 	USA Patriot Act Notice	 	82

vi

 

LIST OF SCHEDULES AND EXHIBITS

	 	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE 1.1(A)
	 	—	 	PRICING GRID
	SCHEDULE 1.1(B)
	 	—	 	COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES
	SCHEDULE 1.1(P)
	 	—	 	PERMITTED LIENS
	SCHEDULE 1.1(S)
	 	—	 	PROJECT MINING SUBSIDIARIES
	SCHEDULE 6.1.1
	 	—	 	QUALIFICATIONS TO DO BUSINESS
	SCHEDULE 6.1.2
	 	—	 	SUBSIDIARIES
	SCHEDULE 6.1.4
	 	—	 	MATERIAL CONTRACTS
	SCHEDULE 6.1.14
	 	—	 	ENVIRONMENTAL DISCLOSURES
	SCHEDULE 7.1.1
	 	—	 	OPINION OF COUNSEL
	SCHEDULE 8.2.1
	 	—	 	PERMITTED INDEBTEDNESS
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	EXHIBIT 1.1(A)
	 	—	 	ASSIGNMENT AND ASSUMPTION AGREEMENT
	EXHIBIT 1.1(N)(1)
	 	—	 	REVOLVING CREDIT NOTE
	EXHIBIT 1.1(N)(2)
	 	—	 	SWING LOAN NOTE
	EXHIBIT 2.5.1
	 	—	 	LOAN REQUEST
	EXHIBIT 2.5.2
	 	—	 	SWING LOAN REQUEST
	EXHIBIT 2.11
	 	—	 	NEW LENDER JOINDER
	EXHIBIT 8.3.3
	 	—	 	QUARTERLY COMPLIANCE CERTIFICATE

vii

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (as hereafter amended, the “Agreement”) is dated as of October 27, 2009
and is made by and among The North American Coal Corporation, a Delaware corporation (the
"Borrower”), the LENDERS (as hereinafter defined), U.S. BANK NATIONAL ASSOCIATION and REGIONS BANK,
each as Co-Syndication Agents and PNC BANK, NATIONAL ASSOCIATION, in its capacity as administrative
agent for the Lenders under this Agreement (hereinafter referred to in such capacity as the
"Administrative Agent”).

     The Borrower has requested the Lenders to provide a revolving credit facility to the Borrower
in an aggregate principal amount not to exceed $100,000,000. In consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound hereby, the
parties hereto covenant and agree as follows:

1. CERTAIN DEFINITIONS

     1.1 Certain Definitions. In addition to words and terms defined elsewhere in this
Agreement, the following words and terms shall have the following meanings, respectively, unless
the context hereof clearly requires otherwise:

          Administrative Agent shall mean PNC Bank, National Association, and its successors and
assigns.

          Administrative Agent’s Fee shall have the meaning specified in Section 10.9
[Administrative Agent’s Fee].

          Administrative Agent’s Letter shall have the meaning specified in Section10.9
[Administrative Agent’s Fee].

          Affiliate as to any Person shall mean any other Person (i) which directly or
indirectly controls, is controlled by, or is under common control with such Person, (ii) which
beneficially owns or holds 10% or more of any class of the voting interests or other equity
interests of such Person, or (iii) 10% or more of any class of voting interests or other equity
interests of which is beneficially owned or held, directly or indirectly, by such Person.

          Anti-Terrorism Laws shall mean any Laws relating to terrorism or money laundering,
including Executive Order No. 13224, the USA Patriot Act, the Laws comprising or implementing the
Bank Secrecy Act, and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be amended, renewed,
extended, or replaced).

          Applicable Letter of Credit Fee Rate shall mean the percentage rate per annum based on
the Debt/EBITDA Ratio then in effect according to the pricing grid on Schedule 1.1(A) below
the heading “Letter of Credit Fee.”

 

 

          Applicable Margin shall mean, as applicable:

          (A) the percentage spread to be added to the Base Rate applicable to Revolving Credit Loans
under the Base Rate Option based on the Debt/EBITDA Ratio then in effect according to the pricing
grid on Schedule 1.1(A) below the heading “Revolving Credit Base Rate Spread”, or

          (B) the percentage spread to be added to the LIBOR Rate applicable to Revolving Credit Loans
under the LIBOR Rate Option based on the Debt/EBITDA Ratio then in effect according to the pricing
grid on Schedule 1.1(A) below the heading “Revolving Credit LIBOR Rate Spread”.

          Approved Fund shall mean any fund that is engaged in making, purchasing, holding or
investing in bank loans and similar extensions of credit in the ordinary course of business and
that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or
an Affiliate of an entity that administers or manages a Lender.

          Assignment and Assumption shall mean an assignment and assumption entered into by a
Lender and an assignee permitted under Section 11.8 [Successors and Assigns], in substantially the
form of Exhibit 1.1(A).

          Authorized Officer shall mean, with respect to the Borrower, the Chairman of the Board
of Directors, Chief Executive Officer, President, Chief Financial Officer, Secretary, Assistant
Secretary, Vice President, Principal Accounting Officer, Controller, Treasurer or Assistant
Treasurer of the Borrower or such other individuals, designated by written notice to the
Administrative Agent from the Borrower, authorized to execute notices, reports and other documents
on behalf of the Borrower required hereunder. The Borrower may amend such list of individuals from
time to time by giving written notice of such amendment to the Administrative Agent.

          Base Rate shall mean, for any day, a fluctuating per annum rate of interest equal to
the highest of (a) the Federal Funds Open Rate, plus 0.5%, and (b) the Prime Rate, and (c)
the Daily LIBOR Rate, plus 100 basis points (1.0%). Any change in the Base Rate (or any
component thereof) shall take effect at the opening of business on the day such change occurs.

          Base Rate Option shall mean the option of the Borrower to have Loans bear interest at
the rate and under the terms set forth in Section 4.1.1(i) [Revolving Credit Base Rate Option].

          Black Lung Act shall mean, collectively, the Black Lung Benefits Revenue Act of 1977,
as amended and the Black Lung Benefits Reform Act of 1977, as amended.

          Borrower shall mean The North American Coal Corporation, a corporation organized and
existing under the laws of the State of Delaware.

          Borrowing Date shall mean, with respect to any Loan, the date for the making thereof
or the renewal or conversion thereof at or to the same or a different Interest Rate Option, which
shall be a Business Day.

 - 2 -

 

          Borrowing Tranche shall mean specified portions of Loans outstanding as follows: (i)
any Loans to which a LIBOR Rate Option applies which become subject to the same Interest Rate
Option under the same Loan Request by the Borrower and which have the same Interest Period shall
constitute one Borrowing Tranche, and (ii) all Loans to which a Base Rate Option applies shall
constitute one Borrowing Tranche.

          Business Day shall mean any day other than a Saturday or Sunday or a legal holiday on
which commercial banks are authorized or required to be closed for business in Pittsburgh,
Pennsylvania and if the applicable Business Day relates to any Loan to which the LIBOR Rate Option
applies, such day must also be a day on which dealings are carried on in the London interbank
market.

          Change in Control shall mean each and every issue, sale or other disposition of shares
of stock of the Borrower which results in any person (as such term is used in section 13(d) and
section 14(d)(2) of the Exchange Act) or related persons (other than (i) NACCO or any of its
Affiliates or (ii) the Permitted Holders) constituting a group (as such term is used in Rule 13d-5
under the Exchange Act), becoming the “beneficial owners” (as such term is used in Rule 13d-3 under
the Exchange Act as in effect on the Closing Date), directly or indirectly, of more than 50% of the
total voting power of all classes then outstanding of the Borrower’s voting stock.

          Change in Law shall mean the occurrence, after the date of this Agreement, of any of
the following: (a) the adoption or taking effect of any Law, (b) any change in any Law or in the
administration, interpretation or application thereof by any Official Body or (c) the making or
issuance of any request, guideline or directive (whether or not having the force of Law) by any
Official Body.

          Closing Date shall mean the Business Day on which the first Loan shall be made, which
shall be October 27, 2009.

          Coal Act shall mean the Coal Industry Retiree Health Benefits Act of 1992, as amended.

          Code shall mean the Internal Revenue Code of 1986, as the same may be amended or
supplemented from time to time, and any successor statute of similar import, and the rules and
regulations thereunder, as from time to time in effect.

          Commitment shall mean as to any Lender, its Revolving Credit Commitment and, in the
case of PNC, the aggregate of its Revolving Credit Commitment and Swing Loan Commitment, and
Commitments shall mean the aggregate of the Revolving Credit Commitments of all of the
Lenders and Swing Loan Commitment of PNC.

          Commitment Fee shall have the meaning specified in Section 2.3 [Commitment Fees].

          Compliance Certificate shall have the meaning specified in Section 8.3.3 [Certificate
of the Borrower].

 - 3 -

 

          Consolidated Current Debt shall mean, without duplication, (a) all liabilities of the
Borrower and its Consolidated Subsidiaries for borrowed money and liabilities for borrowed money
secured by any real or personal property of any kind of the Borrower and its Consolidated
Subsidiaries, which are payable within one year plus (b) the aggregate amount of any Guaranty by
the Borrower or any of its Consolidated Subsidiaries of liabilities of the type described in the
foregoing clause (a) except:

          (i) any liabilities which are renewable or extendable at the option of the debtor to a
date in excess of one year;

          (ii) any liabilities, although payable in one year, which constitute principal payments
on indebtedness expected to mature more than one year from their creation; and

          (iii) any liabilities to reimburse the issuer of letters of credit or other surety
instruments, which letters of credit or other sureties are not drawn.

          Consolidated Debt shall mean the total amount of Consolidated Current Debt and
Consolidated Funded Debt of the Borrower and its Consolidated Subsidiaries outstanding on the date
of determination, after eliminating all offsetting debits and credits between the Borrower and its
Consolidated Subsidiaries and all other items required to be eliminated in the course of
preparation of consolidated financial statements of the Borrower and its Consolidated Subsidiaries.

          Consolidated EBITDA shall mean, for any period, Consolidated Net Income for such
period plus the sum of (i) to the extent deducted in computing such Consolidated Net Income and
without duplication, (A) income tax expense, (B) Consolidated Interest Expense, (C) depreciation
and amortization expense and (D) depletion expense, and (E) the product of (1) equity in
earnings of unconsolidated Affiliates multiplied by (2) the tax rate of such unconsolidated
Affiliates divided by (3) (1 minus such tax rate) and (ii) the aggregate amount of equity
advances and capital contributions made to the Borrower or any of its Consolidated Subsidiaries in
cash during such period or within thirty (30) days following the end of such period and
specifically designated for allocation to such period and not in the period in which made; provided
that there shall be excluded from such calculation, to the extent included in Consolidated Net
Income for such period, (a) non-cash extraordinary items of gain or loss, (b) non-recurring gains
or losses and (c) any items of gain or loss of any Person (other than a Person in which the
Borrower owns all of the outstanding equity interests) which is accounted for by the Borrower on
the equity method of accounting. For purposes of calculating Consolidated EBITDA for any period,
if during such period the Borrower or any of its Subsidiaries shall have acquired the equity
interest of any Person which becomes a Subsidiary of the Borrower or acquired all, substantially
all or a substantial part of the operating assets of any Person or disposed of all or substantially
all of the equity interest in any Subsidiary or all or substantially all of the operating assets of
any Subsidiary of the Borrower or a substantial part of the assets of the Borrower, Consolidated
EBITDA for such period shall be calculated after giving pro forma effect thereto as if such
acquisition or disposition occurred on the first day of such period.

 - 4 -

 

          As used in this definition of Consolidated EBITDA, a sale, lease or other disposition of
assets shall be deemed to be a “substantial part” of the assets of the Borrower and its
Subsidiaries if the book value of such assets, when added to the book value of all other assets
sold, leased or otherwise disposed of by the Borrower and its Subsidiaries during the same fiscal
year, exceeds 15% of the book value of Consolidated Total Assets, determined as of the end of the
fiscal year immediately preceding such sale, lease or other disposition; provided that
there shall be excluded from any determination of a “substantial part” any (i) sale or disposition
of assets in the ordinary course of business of the Borrower and its Subsidiaries, and (ii) any
transfer of assets from the Borrower to any Wholly-Owned Subsidiary or from any Subsidiary to the
Borrower or a Wholly-Owned Subsidiary.

          Consolidated Funded Debt shall mean:

          (i) liabilities of the Borrower and its Consolidated Subsidiaries for borrowed money,
other than Consolidated Current Debt and Indebtedness of the Borrower owed to any of its
Subsidiaries;

          (ii) liabilities for borrowed money secured by any lien existing on any real or
personal property of any kind owned by the Borrower or its Consolidated Subsidiaries
(whether or not those liabilities have been assumed);

          (iii) any Obligations in connection with any capital leases of the Borrower and its
Consolidated Subsidiaries; and

          (iv) the aggregate amount of any Guaranty by the Borrower or any of its Consolidated
Subsidiaries of liabilities of the types described in the foregoing clause (i), (ii) and (iii)
other than Guaranties which constitute Consolidated Current Debt.

          Consolidated Interest Coverage Ratio shall mean at any date, the ratio of (a)
Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended as of
such date to (b) Consolidated Interest Expense for such period of four consecutive fiscal quarters
taken as a single accounting period.

          Consolidated Interest Expense shall mean for any period, the sum of (i) interest
expense of the Borrower and its Consolidated Subsidiaries for such period (including imputed
interest on any Obligations in connection with any capital leases), determined on a consolidated
basis in accordance with GAAP and (ii) letter of credit fees paid by the Borrower with respect to
Consolidated Debt for such period. For purposes of calculation of Consolidated Interest Expense
for any period, if during such period the Borrower or any Subsidiary of the Borrower shall have
acquired the equity interest of any Person which becomes a Subsidiary of the Borrower or acquired
all, substantially all or a substantial part of the operating assets of any Person or disposed of
all or substantially all of the equity interest in any Subsidiary or all or substantially all of
the operating assets of any Subsidiary of the Borrower or a substantial part of the assets of the
Borrower, Consolidated Interest Expense for such period shall be calculated after giving pro forma
effect to any Consolidated Funded Debt incurred or assumed in connection with the any such
acquisition and to any Consolidated Funded Debt assumed by a third party or otherwise

 - 5 -

 

discharged in connection with any such disposition as if such Consolidated Funded Debt has
been incurred or discharged as of the first day of such period.

          As used in this definition of Consolidated Interest Expense, a sale, lease or other
disposition of assets shall be deemed to be a “substantial part” of the assets of the Borrower and
its Subsidiaries if the book value of such assets, when added to the book value of all other assets
sold, leased or otherwise disposed of by the Borrower and its Subsidiaries during the same fiscal
year, exceeds 15% of the book value of Consolidated Total Assets, determined as of the end of the
fiscal year immediately preceding such sale, lease or other disposition; provided that
there shall be excluded from any determination of a “substantial part” any (i) sale or disposition
of assets in the ordinary course of business of the Borrower and its Subsidiaries, and (ii) any
transfer of assets from the Borrower to any Wholly-Owned Subsidiary or from any Subsidiary to the
Borrower or a Wholly-Owned Subsidiary.

          Consolidated Net Income shall mean with reference to any period, the net income (or
loss) of the Borrower and its Consolidated Subsidiaries for such period (taken as a cumulative
whole), as determined in accordance with GAAP, after deducting all operating expenses, provisions
for all taxes and reserves (including reserves for all deferred income taxes) and all other items
required to be deducted in the course of the preparation of consolidated financial statements of
the Borrower and its Consolidated Subsidiaries in accordance with GAAP.

          Consolidated Subsidiary shall mean each Subsidiary that is included in the
consolidated balance sheet of the Borrower prepared in accordance with GAAP, other than Project
Mining Subsidiaries.

          Consolidated Total Assets means, as of any date of determination, (a) the total amount
of all assets of the Borrower and its Consolidated Subsidiaries as such amounts would be shown as
assets on a Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as of such
time prepared in accordance with GAAP, minus (b) to the extent included in clause (a), all amounts
properly attributable to minority interest, if any, in the stock and surplus of Consolidated
Subsidiaries.

          Contamination shall mean the presence or release or threat of release of Regulated
Substances in, on, under or emanating to or from the Real Property, which pursuant to Environmental
Laws requires notification or reporting to an Official Body, or which pursuant to Environmental
Laws requires the investigation, cleanup, removal, remediation, containment, abatement of or other
response action or which otherwise constitutes a violation of Environmental Laws.

          Daily LIBOR Rate shall mean, for any day, the rate per annum determined by the
Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the
LIBOR Reserve Percentage on such day.

          Debt/EBITDA Ratio shall mean, as of the end of any date of determination, the ratio of
Consolidated Debt at such date to Consolidated EBITDA for the period of four

 - 6 -

 

consecutive fiscal quarters immediately preceding such date of determination taken as a single
accounting period.

          Defaulting Lender shall mean any Lender that (a) has failed to fund any portion of the
Loans, participations with respect to Letters of Credit, or participations in Swing Line Loans
required to be funded by it hereunder within one Business Day of the date required to be funded by
it hereunder unless such failure has been cured and all interest accruing as a result of such
failure has been fully paid in accordance with the terms hereof, (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 the subject of a good faith dispute
or unless such failure has been cured and all interest accruing as a result of such failure has
been fully paid in accordance with the terms hereof, or (c) has since the date of this Agreement
been deemed insolvent by an Official Body or become the subject of a bankruptcy, receivership,
conservatorship or insolvency proceeding.

          Delinquent Lender shall have the meaning specified in Section 5.3 [Sharing of Payments
by Lenders].

          Dollar, Dollars, U.S. Dollars and the symbol $ shall mean lawful money of the
United States of America.

          Drawing Date shall have the meaning specified in Section 2.9.3 [Disbursements,
Reimbursement].

          Environmental Complaint shall mean any written complaint by any Person or Official
Body setting forth a cause of action for personal injury or property damage, natural resource
damage, contribution or indemnity for response costs, civil or administrative penalties, criminal
fines or penalties, or declaratory or equitable relief arising under any Environmental Laws or any
order, notice of violation, citation, subpoena, request for information or other written notice or
demand of any type issued by an Official Body pursuant to any Environmental Laws.

          Environmental Laws shall mean all federal, state, local and foreign Laws and any
consent decrees, settlement agreements, judgments, orders, directives or policies or programs
having the force and effect of law issued by or entered into with an Official Body pertaining or
relating to: (i) pollution or pollution control; (ii) protection of human health or the
environment; (iii) employee safety in the workplace; (iv) the presence, use, management,
generation, manufacture, processing, extraction, treatment, recycling, refining, reclamation,
labeling, transport, storage, collection, distribution, disposal or release or threat of release of
Regulated Substances; (v) the presence of Contamination; (vi) the protection of endangered or
threatened species and (vii) the protection of Environmentally Sensitive Areas.

          Environmentally Sensitive Area shall mean (i) any wetland as defined by applicable
Environmental Laws; (ii) any area designated as a coastal zone pursuant to applicable Laws,
including Environmental Laws; (iii) any area of historic or archeological significance or scenic
area as defined or designated by applicable Laws, including Environmental Laws; (iv) habitats of
endangered species or threatened species as designated by applicable Laws,

 - 7 -

 

including Environmental Laws or (v) a floodplain or other flood hazard area as defined pursuant to any
applicable Laws.

          ERISA shall mean the Employee Retirement Income Security Act of 1974, as the same may
be amended or supplemented from time to time, and any successor statute of similar import, and the
rules and regulations thereunder, as from time to time in effect.

          ERISA Affiliate shall mean, at any time, any trade or business (whether or not
incorporated) under common control with the Borrower and are treated as a single employer under
Section 414 of the Code.

          ERISA Event shall mean (a) a reportable event (under Section 4043 of ERISA and
regulations thereunder) with respect to a Pension Plan, (b) the filing of a notice of intent to
terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan, (c) an event or
condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan, or (d) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon Borrower or any ERISA Affiliate; excluding (i) those events for which the requirement
of notice has been waived by the PBGC; (ii) a reportable event described in ERISA Section
4043(c)(3) (decline in number of participants); (iii) a reportable event described in ERISA Section
4043(c)(9) (change in members of a control group) to the extent that the reportable event is
permitted under Section 8.2.5 hereof or relates to members of the ERISA Group other than the
Borrower and its Subsidiaries; (iv) a reportable event described in ERISA Section 4043(c)(10)
(liquidation) to the extent that the reportable event results from a liquidation of a member of the
ERISA Group that is permitted under Section 8.2.6 hereof or is unrelated to a case under Title 11
of the United States Code or a similar State law; and (v) a reportable event described in ERISA
section 4043(c)(11) (extraordinary dividend or stock redemption) to the extend that the reportable
event is permitted under Section 8.2.5 hereof or results from the declaration of an extraordinary
dividend payable to, or an extraordinary stock redemption of, a member of the ERISA Group other
than the Borrower and its Subsidiaries (clauses (i) through (v) above, collectively, the “Exempt
Reportable Events”).

          ERISA Group shall mean, at any time, the Borrower and all members of a controlled
group of corporations and all trades or businesses (whether or not incorporated) under common
control and all other entities which, together with the Borrower, are treated as a single employer
under Section 414 of the Internal Revenue Code.

          Event of Default shall mean any of the events described in Section 9.1 [Events of
Default] and referred to therein as an “Event of Default.”

          Exchange Act shall mean the Securities Exchange Act of 1934, as amended.

          Excluded Taxes shall mean, 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),

 - 8 -

 

by the jurisdiction (or any political subdivision thereof) under the Laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable lending office is located, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the Borrower
is located and (c) in the case of a Foreign Lender, 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 5.9.5 [Status of Lenders],
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 5.9.1 [Payment Free of Taxes].

          Executive Order No. 13224 shall mean the Executive Order No. 13224 on Terrorist
Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed,
extended, amended or replaced.

          Expiration Date shall mean, with respect to the Revolving Credit Commitments, October
27, 2012.

          Federal Funds Effective Rate for any day shall mean the rate per annum (based on a
year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced
by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted
average of the rates on overnight federal funds transactions arranged by federal funds brokers on
the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor)
in substantially the same manner as such Federal Reserve Bank computes and announces the weighted
average it refers to as the “Federal Funds Effective Rate” as of the date of this Agreement;
provided, if such Federal Reserve Bank (or its successor) does not announce such rate on
any day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds Effective Rate
for the last day on which such rate was announced.

          Federal Funds Open Rate for any day shall mean the rate per annum (based on a year of
360 days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP
North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day
opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate),
or as set forth on such other recognized electronic source used for the purpose of displaying such
rate as selected by the Administrative Agent (an “Alternate Source”) (or if such rate for such day
does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source,
or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any
substitute screen) or any Alternate Source, a comparable replacement rate determined by the
Administrative Agent at such time (which determination shall be conclusive absent manifest error);
provided however, that if such day is not a Business Day, the Federal Funds Rate for such day shall
be the “open” rate on the immediately preceding Business Day. If and when the Federal Funds Rate
changes, the rate of interest with respect to any advance to which the Federal Funds Rate applies
will change automatically without notice to the Borrower, effective on the date of any such change.

 - 9 -

 

          Foreign Lender shall mean 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 of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

          GAAP shall mean generally accepted accounting principles as are in effect in the
United States from time to time, subject to the provisions of Section 1.3 [Accounting Principles],
and applied on a consistent basis both as to classification of items and amounts.

          Guaranty of any Person shall mean any obligation of such Person guaranteeing or in
effect guaranteeing any liability or obligation of any other Person in any manner, whether directly
or indirectly, including any agreement to indemnify or hold harmless any other Person, any
performance bond or other suretyship arrangement and any other form of assurance against loss,
except endorsement of negotiable or other instruments for deposit or collection in the ordinary
course of business.

          Increasing Lender shall have the meaning assigned to that term in Section 2.11
[Increase in Revolving Credit Commitments].

          Indebtedness shall mean, as to any Person at any time, without duplication, (a) all
indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred
purchase price of property or services (other than trade payables incurred in the ordinary course
of such Person’s business and amounts owed to NACCO under the Tax Sharing Agreement and/or in
respect of state taxes paid by NACCO on behalf of the Borrower and its Subsidiaries), (c) all
obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d)
all obligations of such Person created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (e) all obligations of such Person as lessee under leases
that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all
obligations, contingent or otherwise, of such Person in respect of acceptances, letters of credit,
surety bonds or similar extensions of credit, (g) net reimbursement obligations (contingent or
otherwise) under any letter of credit, currency swap agreement, interest rate swap, cap, collar or
floor agreement or other interest rate management device, (h) all Indebtedness of others referred
to in clauses (a) through (g) above or clause (i) below guaranteed directly or indirectly in any
manner by such Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Indebtedness or to advance or supply funds for the payment or
purchase of such Indebtedness, (2) to purchase, sell or lease (as lessee or lessor) property, or to
purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such
Indebtedness or to assure the holder of such Indebtedness against loss, (3) to supply funds to or
in any other manner invest in the debtor (including any agreement to pay for property or services
irrespective of whether such property is received or such services are rendered) or (4) otherwise
to assure a creditor against loss, and (i) all Indebtedness referred to in clauses (a) through (h)
above secured by any Lien on property (including, without limitation, accounts and contract rights)
owned by such Person, even though such Person has not assumed or become liable for the payment of
such Indebtedness.

 - 10 -

 

          Indemnified Taxes shall mean Taxes other than Excluded Taxes.

          Indemnitee shall have the meaning specified in Section 11.3.2 [Indemnification by the
Borrower].

          Information shall mean all information received from the Borrower or any of its
Subsidiaries relating to the Borrower or any of such Subsidiaries or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or the Issuing Lender on a non-confidential basis prior to disclosure by the Borrower or any
of its Subsidiaries.

          Insolvency Proceeding shall mean, with respect to any Person, (a) a case, action or
proceeding with respect to such Person (i) before any court or any other Official Body under any
bankruptcy, insolvency, reorganization or other similar Law now or hereafter in effect, or (ii) for
the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of the Borrower or otherwise relating to the liquidation, dissolution,
winding-up or relief of such Person, or (b) any general assignment for the benefit of creditors,
composition, marshaling of assets for creditors, or other, similar arrangement in respect of such
Person’s creditors generally or any substantial portion of its creditors; undertaken under any Law.

          Interest Period shall mean the period of time selected by the Borrower in connection
with (and to apply to) any election permitted hereunder by the Borrower to have Revolving Credit
Loans bear interest under the LIBOR Rate Option. Subject to the last sentence of this definition,
such period shall be one, two, three or six Months. Such Interest Period shall commence on the
effective date of such Interest Rate Option, which shall be (i) the Borrowing Date if the Borrower
is requesting new Loans, or (ii) the date of renewal of or conversion to the LIBOR Rate Option if
the Borrower is renewing or converting to the LIBOR Rate Option applicable to outstanding Loans.
Notwithstanding the second sentence hereof: (A) any Interest Period which would otherwise end on a
date which is not a Business Day shall be extended to the next succeeding Business Day unless such
Business Day falls in the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day, and (B) the Borrower shall not select, convert to or renew an Interest
Period for any portion of the Loans that would end after the Expiration Date.

          Interest Rate Hedge shall mean an interest rate exchange, collar, cap, swap,
adjustable strike cap, adjustable strike corridor or similar agreements entered into by the
Borrower in order to provide protection to, or minimize the impact upon, the Borrower of increasing
floating rates of interest applicable to Indebtedness.

          Interest Rate Option shall mean any LIBOR Rate Option or Base Rate Option.

          IRS shall mean the Internal Revenue Service.

          Issuing Lender shall mean PNC, in its individual capacity as issuer of Letters of
Credit hereunder and any other Lender that Borrower, Administrative Agent and such other Lender may
agree may from time to time issue Letters of Credit hereunder.

 - 11 -

 

          Joint Venture shall mean a corporation, partnership, limited liability company or
other entities in which any Person other than the Borrower and its Subsidiaries holds, directly or
indirectly, an equity interest.

          Law shall mean any law (including common law), constitution, statute, treaty,
regulation, rule, ordinance, opinion, release, ruling, order, injunction, writ, decree, bond,
judgment, authorization or approval, lien or award by or settlement agreement with any Official
Body.

          Lender Provided Interest Rate Hedge shall mean an Interest Rate Hedge which is
provided by any Lender or its Affiliate and with respect to which the Administrative Agent
confirms: (i) is documented in a standard International Swap Dealer Association Agreement, (ii)
provides for the method of calculating the reimbursable amount of the provider’s credit exposure in
a reasonable and customary manner, and (iii) is entered into for hedging (rather than speculative)
purposes.

          Lenders shall mean the financial institutions named on Schedule 1.1(B) and
their respective successors and assigns as permitted hereunder, each of which is referred to herein
as a Lender.

          Letter of Credit shall have the meaning specified in Section 2.9.1 [Issuance of
Letters of Credit].

          Letter of Credit Borrowing shall have the meaning specified in Section 2.9.3
[Disbursements, Reimbursement].

          Letter of Credit Fee shall have the meaning specified in Section 2.9.2 [Letter of
Credit Fees].

          Letter of Credit Obligation shall mean, as of any date of determination, the aggregate
amount available to be drawn under all outstanding Letters of Credit on such date (if any Letter of
Credit shall increase in amount automatically in the future, such aggregate amount available to be
drawn shall currently give effect to any such future increase) plus the aggregate
Reimbursement Obligations and Letter of Credit Borrowings on such date.

          Letter of Credit Sublimit shall have the meaning specified in Section 2.9.1 [Issuance
of Letters of Credit].

          LIBOR Rate shall mean, with respect to the Loans comprising any Borrowing Tranche to
which the LIBOR Rate Option applies for any Interest Period, the interest rate per annum determined
by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary, to
the nearest 1/100th of 1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on
such other substitute Bloomberg page that displays rates at which US dollar deposits are offered by
leading banks in the London interbank deposit market), or the rate which is quoted by another
source selected by the Administrative Agent which has been approved by the British Bankers’
Association as an authorized information vendor for the purpose of displaying rates at which US
dollar deposits are offered by leading banks in the London interbank deposit market (an “Alternate
Source”), at approximately 11:00 a.m., London

 - 12 -

 

time, two (2) Business Days prior to the commencement of such Interest Period as the London
interbank offered rate for U.S. Dollars for an amount comparable to such Borrowing Tranche and
having a borrowing date and a maturity comparable to such Interest Period (or if there shall at any
time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any
Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time
(which determination shall be conclusive absent manifest error)), by (ii) a number equal to 1.00
minus the LIBOR Reserve Percentage. LIBOR may also be expressed by the following formula:

Average of London interbank offered rates quoted

by Bloomberg or appropriate successor as shown on

	 	 	 	 	 
	 

	 	LIBOR =	 	Bloomberg Page BBAM1
	 

	 	 	 	 
	 

	 	 	 	 1.00 – LIBOR Reserve Percentage

          The LIBOR Rate shall be adjusted with respect to any Loan to which the LIBOR Rate Option
applies that is outstanding on the effective date of any change in the LIBOR Reserve Percentage as
of such effective date. The Administrative Agent shall give prompt notice to the Borrower of the
LIBOR Rate as determined or adjusted in accordance herewith, which determination shall be
conclusive absent manifest error.

          LIBOR Rate Option shall mean the option of the Borrower to have Loans bear interest at
the rate and under the terms set forth in Section 4.1.1(ii) [Revolving Credit LIBOR Rate Option].

          LIBOR Reserve Percentage shall mean as of any day the maximum percentage in effect on
such day, as prescribed by the Board of Governors of the Federal Reserve System (or any successor)
for determining the reserve requirements (including supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”).

          Lien shall mean any mortgage, deed of trust, pledge, lien, security interest, charge
or other encumbrance or security arrangement of any nature whatsoever, whether voluntarily or
involuntarily given, including any conditional sale or title retention arrangement, and any
assignment, deposit arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or not a lien or other
encumbrance is created or exists at the time of the filing).

          Loan Documents shall mean this Agreement, the Administrative Agent’s Letter, the Notes
and any other instruments, certificates or documents delivered in connection herewith or therewith.

          Loan Request shall have the meaning specified in Section 2.5 [Revolving Credit Loan
Requests; Swing Loan Requests].

          Loans shall mean collectively and Loan shall mean separately all Revolving
Credit Loans or Swing Loans, or any Revolving Credit Loan or Swing Loan.

 - 13 -

 

          Material Adverse Change shall mean any set of circumstances or events which (a) has or
could reasonably be expected to have any material adverse effect whatsoever upon the validity or
enforceability of this Agreement or any other Loan Document, (b) is or could reasonably be expected
to be material and adverse to the business, properties, assets, financial condition, results of
operations of the Borrower and its Subsidiaries, taken as a whole, (c) impairs materially or could
reasonably be expected to impair materially the ability of the Borrower and its Subsidiaries, taken
as a whole, to duly and punctually pay or perform its Indebtedness under this Agreement or any
Note, or (d) impairs materially or could reasonably be expected to impair materially the ability of
the Administrative Agent or any of the Lenders, to the extent permitted, to enforce their legal
remedies pursuant to this Agreement or any other Loan Document.

          Material Contract shall mean each coal or other supply or services contract to which
the Borrower or any Subsidiary is a party and which provides for annual payments to the Borrower or
any Subsidiary which are expected to be in excess of $5,000,000.

          Month, with respect to an Interest Period under the LIBOR Rate Option, shall mean the
interval between the days in consecutive calendar months numerically corresponding to the first day
of such Interest Period. If any LIBOR Rate Interest Period begins on a day of a calendar month for
which there is no numerically corresponding day in the month in which such Interest Period is to
end, the final month of such Interest Period shall be deemed to end on the last Business Day of
such final month.

          Multiemployer Plan shall mean any employee benefit plan which is a “multiemployer
plan” within the meaning of Section 4001(a)(3) of ERISA and to which the Borrower or any member of
the ERISA Group is then making or accruing an obligation to make contributions or, within the
preceding five Plan years, has made or had an obligation to make such contributions.

          NACCO shall mean NACCO Industries, Inc., a Delaware corporation.

          Net Proceeds means, with respect to any sale of property by the Borrower or any
Subsidiary, the net proceeds from such sale received by the Person, net of:

               (a) actual expenses and fees relating to such sale (including, without limitation, legal,
accounting and investment banking fees, sales commissions and relocation expenses);

               (b) taxes paid or payable or estimated by the Borrower (in good faith) to be payable in
connection with such sale after taking into account any reduction in consolidated tax liability due
to available tax credits or deductions or any tax sharing arrangements;

               (c) repayment or prepayment of any Indebtedness that is required to be repaid or prepaid in
connection with such sale;

 - 14 -

 

               (d) provision for minority interest holders in any Subsidiary as a result of such sale;

               (e) payments of unassumed liabilities (not constituting Indebtedness ) relating to the assets
or property sold at the time of, or within thirty (30) days after, the date of such sale; and

               (f) appropriate amounts to be provided by the Borrower or any Subsidiary as the case may be,
as reserves in accordance with GAAP, against any liabilities associated with such sale and retained
by the Borrower or any Subsidiary, as the case may be, after the sale including, without
limitation, pension and other post-employment benefit liabilities, liabilities related to
environmental matters and liabilities under any indemnification obligations associated with such
sale.

          New Lender shall have the meaning assigned to that term in Section 2.11 [Increase in
Revolving Credit Commitments].

          Non-Consenting Lender shall have the meaning specified in Section 11.1 [Modifications,
Amendments or Waivers].

          Non-Recourse Indebtedness shall mean any Indebtedness other than Recourse
Indebtedness.

          Notes shall mean, collectively, the promissory notes in the form of Exhibit
1.1(N)(1) evidencing the Revolving Credit Loans and in the form of Exhibit 1.1(N)(2)
evidencing the Swing Loan.

          Notices shall have the meaning specified in Section 11.5 [Notices; Effectiveness;
Electronic Communication].

          Obligation shall mean any obligation or liability of the Borrower howsoever created,
arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due, under or in connection with (i) this Agreement, the Notes, the
Letters of Credit, the Administrative Agent’s Letter or any other Loan Document whether to the
Administrative Agent, any of the Lenders or their Affiliates or other persons provided for under
such Loan Documents, (ii) any Lender Provided Interest Rate Hedge and (iii) any Other Lender
Provided Financial Service Product.

          Official Body shall mean the government of the United States of America or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

          Other Lender Provided Financial Service Product shall mean agreements or other
arrangements under which any Lender or Affiliate of a Lender provides any of the following

 - 15 -

 

products or services to the Borrower: (a) credit cards, (b) credit card processing services,
(c) debit cards, (d) purchase cards, (e) ACH transactions, (f) cash management, including
controlled disbursement, accounts or services, or (g) foreign currency exchange.

          Other Taxes shall mean 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.

          Participant has the meaning specified in Section 11.8.4 [Participations].

          Participation Advance shall have the meaning specified in Section 2.9.3
[Disbursements, Reimbursement].

          Payment Date shall mean the first day of each calendar quarter after the date hereof
and on the Expiration Date or upon acceleration of the Notes.

          Payment In Full shall mean the indefeasible payment in full in cash of the Loans and
other Obligations hereunder, termination of the Commitments and expiration or termination of all
Letters of Credit.

          PBGC shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA or any successor.

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

          Permitted Holders shall mean, collectively, the parties to the Stockholders’
Agreement, dated as of March 15, 1990, as amended from time to time, by and among National City
Bank (Cleveland, Ohio), as depository, the Participating Stockholders (as defined therein) and
NACCO.

          Permitted Investments shall mean:

          (i) direct obligations of the United States of America or any agency or instrumentality
thereof or obligations backed by the full faith and credit of the United States of America maturing
in twelve (12) months or less from the date of acquisition;

          (ii) commercial paper maturing in 180 days or less rated not lower than A-1, by Standard &
Poor’s or P-1 by Moody’s Investors Service, Inc. on the date of acquisition;

          (iii) demand deposits, time deposits or certificates of deposit maturing within one year in
commercial banks whose obligations are rated A-1, A or the equivalent or better by Standard &
Poor’s on the date of acquisition; and

 - 16 -

 

          (iv) money market or mutual funds whose investments are limited to those types of investments
described in clauses (i)-(iii) above.

          Permitted Liens shall mean:

          (i) Liens for taxes, assessments, or similar charges, incurred in the ordinary course of
business and which are not yet due and payable;

          (ii) Pledges or deposits made in the ordinary course of business to secure payment of
workmen’s compensation, or to participate in any fund in connection with workmen’s compensation,
unemployment insurance, old-age pensions or other social security programs;

          (iii) Liens of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing
obligations incurred in the ordinary course of business that are not yet due and payable and Liens
of landlords securing obligations to pay lease payments that are not yet due and payable or in
default;

          (iv) Good-faith pledges or deposits made in the ordinary course of business to secure
performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases,
not in excess of the aggregate amount due thereunder, or to secure statutory obligations, or
surety, appeal, indemnity, performance or other similar bonds required in each case for the
Borrower or any Consolidated Subsidiaries and incurred in the ordinary course of business;

          (v) Encumbrances consisting of zoning restrictions, easements or other restrictions on the use
of real property, none of which materially impairs the use of such property or the value thereof,
and none of which is violated in any material respect by existing or proposed structures or land
use;

          (vi) Liens on property leased by the Borrower or any Subsidiary of the Borrower under capital
leases securing obligations of the Borrower or such Subsidiary to the lessor under such leases;

          (vii) Any Lien existing on the date of this Agreement and described on Schedule 1.1(P)
and any renewal, extension or replacement of such Lien, provided that if such Lien secures
any Indebtedness, the principal amount secured thereby is not hereafter increased, and no
additional assets become subject to such Lien;

          (viii) Purchase Money Security Interests and capitalized leases;

          (ix) Liens securing Indebtedness other than Recourse Indebtedness in an aggregate principal
amount not to exceed $1,000,000 at any time outstanding;

          (x) other Liens securing Recourse Debt in an aggregate principal amount not to exceed
$1,000,000 at any time outstanding; and

          The following, (A) if the validity or amount thereof is being contested in good faith by
appropriate and lawful proceedings diligently conducted so long as levy and execution

- 17 -

 

thereon have been stayed and continue to be stayed or (B) if a final judgment is entered and
such judgment is discharged within thirty (30) days of entry, and in either case they do not in the
aggregate, materially impair the ability of the Borrower to perform its Obligations hereunder or
under the other Loan Documents:

          (1) Claims or Liens for taxes, assessments or charges due and payable and subject to interest
or penalty; provided that the Borrower maintains such reserves or other appropriate
provisions as shall be required by GAAP and pays all such taxes, assessments or charges forthwith
upon the commencement of proceedings to foreclose any such Lien;

          (2) Claims, Liens or encumbrances upon, and defects of title to, real or personal property,
including any attachment of personal or real property or other legal process prior to adjudication
of a dispute on the merits;

          (3) Claims or Liens of mechanics, materialmen, warehousemen, carriers, or other statutory
nonconsensual Liens; or

          (4) Liens resulting from final judgments or orders described in Section 9.1.6 [Final Judgments
or Orders].

          Person shall mean any individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, joint venture, government or
political subdivision or agency thereof, or any other entity.

          Plan shall mean at any time an employee pension benefit plan (including a Multiple
Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of ERISA or is subject to
the minimum funding standards under Section 412 of the Code and either (i) is maintained by any
member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time
within the preceding five years been maintained by any entity which was at such time a member of
the ERISA Group for employees of any entity which was at such time a member of the ERISA Group.

          PNC shall mean PNC Bank, National Association, its successors and assigns.

          Potential Default shall mean any event or condition which with notice or passage of
time, or both, would constitute an Event of Default.

          Prime Rate shall mean the interest rate per annum announced from time to time by the
Administrative Agent at its Principal Office as its then prime rate, which rate may not be the
lowest or most favorable rate then being charged commercial borrowers or others by the
Administrative Agent. Any change in the Prime Rate shall take effect at the opening of business on
the day such change is announced.

          Principal Office shall mean the main banking office of the Administrative Agent in
Pittsburgh, Pennsylvania.

          Project Mining Subsidiary shall mean any Subsidiary of the Borrower (a) whose
Indebtedness is Non-Recourse Indebtedness and (b) the customers of which finance or guarantee

- 18 -

 

the financing and certain other obligations of such Subsidiary. Schedule 1.1(S)
hereto sets forth a list of such Project Mining Subsidiaries as of the Closing Date.

          Published Rate shall mean the rate of interest published each Business Day in The Wall
Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for
a one month period (or, if no such rate is published therein for any reason, then the Published
Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the London
interbank deposit market for a one month period as published in another publication selected by the
Administrative Agent).

          Purchase Money Security Interest shall mean Liens upon tangible personal property
securing loans to the Borrower or any Subsidiary of the Borrower or deferred payments by the
Borrower or such Subsidiary for the purchase of such tangible personal property.

          Ratable Share shall mean the proportion that a Lender’s Commitment (excluding the
Swing Loan Commitment) bears to the Commitments (excluding the Swing Loan Commitment) of all of the
Lenders. If the Commitments have terminated or expired, the Ratable Shares shall be determined
based upon the Commitments (excluding the Swing Loan Commitment) most recently in effect, giving
effect to any assignments.

          Real Property shall mean the real property, both owned and leased, and the surface,
coal, and mineral rights, interests and coal leases of the Borrower and its Subsidiaries.

          Recourse Indebtedness of any Person shall mean all items that, in accordance with
GAAP, would be classified as indebtedness on a Consolidated balance sheet of such Person (other
than trade payables incurred in the ordinary course of business and amounts owed to NACCO under the
Tax Sharing Agreement and/or in respect of state taxes paid by NACCO on behalf of the Borrower and
its Subsidiaries; but shall not include indebtedness as to which no recourse may be asserted
against the Borrower or any of its Consolidated Subsidiaries except to the extent that such
indebtedness is secured by a Lien on specified assets of the Borrower or any of its Consolidated
Subsidiaries.

          Regulated Substances shall mean, without limitation, any substance, material or waste,
regardless of its form or nature, defined under Environmental Laws as a “hazardous substance”,
“pollutant”, “pollution”, “contaminant”, “hazardous or toxic substance”, “extremely hazardous
substance”, “toxic chemical”, “toxic substance”, “toxic waste”, “hazardous waste”, “special
handling waste”, “industrial waste”, “residual waste”, “solid waste”, “municipal waste”, “mixed
waste”, “infectious waste”, “chemotherapeutic waste”, “medical waste”, “regulated substance” or any
other material, substance or waste, regardless of its form or nature, which otherwise is regulated
by Environmental Laws.

          Reimbursement Obligation shall have the meaning specified in Section 2.9.3
[Disbursements, Reimbursement].

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

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          Relief Proceeding shall mean any proceeding seeking a decree or order for relief in
respect of the Borrower or any Subsidiary of the Borrower in a voluntary or involuntary case under
any applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter in
effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or similar official) of the Borrower or any Subsidiary of the Borrower
for any substantial part of its property, or for the winding-up or liquidation of its affairs, or
an assignment for the benefit of its creditors.

          Required Environmental Notices shall mean all notices, reports, plans, forms or other
filings which are required pursuant to Environmental Laws or Required Environmental Permits to be
submitted to an Official Body or which otherwise must be maintained.

          Required Environmental Permits shall mean all permits, licenses, bonds, consents,
approvals or authorizations required under Environmental Laws to own, occupy or maintain the Real
Property.

          Required Lenders shall mean

          (A) If there exists fewer than three (3) Lenders, all Lenders (other than any Defaulting
Lender), and

          (B) If there exist three (3) or more Lenders, Lenders (other than any Defaulting Lender)
having more than 50% of the sum of the aggregate amount of the Revolving Credit Commitments of the
Lenders (excluding any Defaulting Lender) or, after the termination of the Revolving Credit
Commitments, the outstanding Revolving Credit Loans and Ratable Share of Letter of Credit
Obligations of the Lenders (excluding any Defaulting Lender).

          Required Mining Permits shall mean all permits, licenses, authorizations, plans,
approvals and bonds necessary under the Environmental Laws for the Borrower or any of its
Subsidiaries to continue to conduct coal mining and related operations on, in or under the Real
Property, and any and all other mining properties owned or leased by the Borrower or any such
Subsidiary (collectively “Mining Property”) substantially in the manner as such operations had been
authorized immediately prior to Borrower’s or such Subsidiary’s acquisition of its interests in the
Real Property and as may be necessary for Borrower or such Subsidiary to conduct coal mining and
related operations on, in or under the Mining Property as described in any plan of operation.

          Required Share shall have the meaning assigned to such term in Section 5.11
[Settlement Date Procedures].

          Restricted Payments shall have the meaning specified in Section 8.2.5 [Dividends and
Related Distributions].

          Revolving Credit Commitment shall mean, as to any Lender at any time, the amount
initially set forth opposite its name on Schedule 1.1(B) in the column labeled “Amount of
Commitment for Revolving Credit Loans,” as such Commitment is thereafter assigned or modified and
Revolving Credit Commitments shall mean the aggregate Revolving Credit Commitments of all
of the Lenders.

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          Revolving Credit Loans shall mean collectively and Revolving Credit Loan shall
mean separately all Revolving Credit Loans or any Revolving Credit Loan made by the Lenders or one
of the Lenders to the Borrower pursuant to Section 2.1 [Revolving Credit Commitments] or 2.9.3
[Disbursements, Reimbursement].

          Revolving Facility Usage shall mean at any time the sum of the outstanding Revolving
Credit Loans, the outstanding Swing Loans, and the Letter of Credit Obligations.

          Senior Notes shall mean those certain notes in an original aggregate amount of
$45,000,000, issued in connection with the Senior Note Purchase Agreements.

          Senior Note Purchase Agreements shall mean those certain note purchase agreements
dated October 4, 2004 and January 27, 2005, by and among the Borrower and the Purchasers (in each
case, as defined therein).

          Settlement Date shall mean the Business Day on which the Administrative Agent elects
to effect settlement pursuant to Section 5.11 [Settlement Date Procedures].

          Solvent shall mean, with respect to any Person on a particular date, that on such date
(i) the fair value of the property of such Person is greater than the total amount of liabilities,
including, without limitation, contingent liabilities, of such Person, (ii) the present fair
saleable value of the assets of such Person is not less than the amount that will be required to
pay the probable liability of such Person on its debts as they become absolute and matured, (iii)
such Person is able to realize upon its assets and pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business, (iv) such Person
does not intend to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay as such debts and liabilities mature, and (v) such Person is not engaged in
business or a transaction, and is not about to engage in business or a transaction, for which such
Person’s property would constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which such Person is engaged. In computing the amount of
contingent liabilities at any time, it is intended that such liabilities will be computed at the
amount which, in light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability.

          Standard & Poor’s shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.

          Statements shall have the meaning specified in Section 6.1.6(i) [Historical
Statements].

          Subsidiary of any Person at any time shall mean any corporation, trust, partnership,
any limited liability company or other business entity (i) of which more than 50% of the
outstanding voting securities or other interests normally entitled to vote for the election of one
or more directors (or Persons performing similar functions) (regardless of any contingency which
does or may suspend or dilute the voting rights) is at such time owned directly or indirectly by
such Person or one or more of such Person’s Subsidiaries, or (ii) which is controlled or capable of
being controlled by such Person or one or more of such Person’s Subsidiaries.

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          Subsidiary Equity Interests shall have the meaning specified in Section 6.1.2
[Subsidiaries and Owners; Investment Companies].

          Swing Loan Commitment shall mean PNC’s commitment to make Swing Loans to the Borrower
pursuant to Section 2.1.2 [Swing Loan Commitment] hereof in an aggregate principal amount up to
$10,000,000 outstanding at any one time.

          Swing Loan Note shall mean the Swing Loan Note of the Borrower in the form of
[Exhibit 1.1(N)(2)] evidencing the Swing Loans, together with all amendments, extensions,
renewals, replacements, refinancings or refundings thereof in whole or in part.

          Swing Loan Request shall mean a request for Swing Loans made in accordance with
Section 2.5.2 [Swing Loan Requests] hereof.

          Swing Loans shall mean collectively and Swing Loan shall mean separately all
Swing Loans or any Swing Loan made by PNC to the Borrower pursuant to Section 2.1.2 [Swing Loan
Commitment] hereof.

          Tax Sharing Agreement shall mean that certain Amended Tax Sharing Agreement between
NACCO and its Subsidiaries, dated May 14, 1997, related to the allocation of federal tax
liabilities among NACCO and its Consolidated U.S. Subsidiaries, as amended, supplemented or
otherwise modified from time to time.

          Taxes shall mean all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Official Body, including any
interest, additions to tax or penalties applicable thereto.

          Unused Revolving Credit Commitment shall mean, at any time, the amount in excess of
(i) the Revolving Credit Commitment, minus (ii) the Revolving Facility Usage.

          USA Patriot Act shall mean the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as
the same has been, or shall hereafter be, renewed, extended, amended or replaced.

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

          Wholly-Owned Subsidiary means, at any time, any Subsidiary one hundred percent (100%)
of all of the equity interests (except directors’ qualifying shares) and voting interests of which
are owned by any one or more of the Borrower and the Borrower’s other Wholly-Owned Subsidiaries at
such time.

     1.2 Construction. Unless the context of this Agreement otherwise clearly requires,
the following rules of construction shall apply to this Agreement and each of the other Loan
Documents: (i) references to the plural include the singular, the plural, the part and the whole
and

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the words “include,” “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”; (ii) the words “hereof,” “herein,” “hereunder,” “hereto” and similar terms in
this Agreement or any other Loan Document refer to this Agreement or such other Loan Document as a
whole; (iii) article, section, subsection, clause, schedule and exhibit references are to this
Agreement or other Loan Document, as the case may be, unless otherwise specified; (iv) reference to
any Person includes such Person’s successors and assigns; (v) reference to any agreement, including
this Agreement and any other Loan Document together with the schedules and exhibits hereto or
thereto, document or instrument means such agreement, document or instrument as amended, modified,
replaced, substituted for, superseded or restated; (vi) relative to the determination of any period
of time, “from” means “from and including,” “to” means “to but excluding,” and “through” means
“through and including”; (vii) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights, (viii) section headings herein and in
each other Loan Document are included for convenience and shall not affect the interpretation of
this Agreement or such Loan Document, (ix) unless otherwise specified, all references herein to
times of day shall be references to Eastern Time, and (x) any references to any Law shall
mean such Law as it may be amended, restated, replaced, or supplemented from time to time.

     1.3 Accounting Principles. Except as otherwise provided in this Agreement, all
computations and determinations as to accounting or financial matters and all financial statements
to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting or financial terms
shall have the meanings ascribed to such terms by GAAP; provided, however, that all
accounting terms used in Section 8.2 [Negative Covenants] (and all defined terms used in the
definition of any accounting term used in Section 8.2 [Negative Covenants] shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date hereof applied on a
basis consistent with those used in preparing Statements referred to in Section 6.1.6(i)
[Historical Statements]. In the event of any change after the date hereof in GAAP, and if such
change would affect the computation of any of the financial covenants set forth in Section 8.2
[Negative Covenants], then the parties hereto agree to endeavor, in good faith, to agree upon an
amendment to this Agreement that would adjust such financial covenants in a manner that would
preserve the original intent thereof, but would allow compliance therewith to be determined in
accordance with the Borrower’s financial statements at that time, provided that,
until so amended such financial covenants shall continue to be computed in accordance with GAAP
prior to such change therein.

2. REVOLVING CREDIT AND SWING LOAN FACILITIES

     2.1 Revolving Credit Commitments.

          2.1.1 Revolving Credit Loans. Subject to the terms and conditions hereof and relying
upon the representations and warranties herein set forth, each Lender severally agrees to make
Revolving Credit Loans to the Borrower at any time or from time to time on or after the date hereof
to the Expiration Date; provided that after giving effect to such Loan (i) the aggregate
amount of Loans from such Lender shall not exceed such Lender’s Revolving Credit Commitment minus
such Lender’s Ratable Share of the Letter of Credit Obligations and (ii) the

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Revolving Facility Usage shall not exceed the Revolving Credit Commitments. Within such
limits of time and amount and subject to the other provisions of this Agreement, the Borrower may
borrow, repay and reborrow pursuant to this Section 2.1.

          2.1.2 Swing Loan Commitment. Subject to the terms and conditions hereof and relying
upon the representations and warranties herein set forth, and in order to facilitate loans and
repayments between Settlement Dates, PNC may, at its option, cancelable at any time for any reason
whatsoever, make swing loans (the “Swing Loans”) to the Borrower at any time or from time to time
after the date hereof to, but not including, the Expiration Date, in an aggregate principal amount
up to but not in excess of $10,000,000 (the “Swing Loan Commitment”), provided that after giving
effect to such Loan, the Revolving Facility Usage shall not exceed the Revolving Credit
Commitments. Within such limits of time and amount and subject to the other provisions of this
Agreement, the Borrower may borrow, repay and reborrow pursuant to this Section 2.1.2.

     2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans. Each
Lender shall be obligated to participate in each request for Revolving Credit Loans pursuant to
Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests] in accordance with its Ratable
Share. The aggregate of each Lender’s Revolving Credit Loans outstanding hereunder to the Borrower
at any time shall never exceed its Revolving Credit Commitment minus its Ratable Share of the
Letter of Credit Obligations. The obligations of each Lender hereunder are several. The failure
of any Lender to perform its obligations hereunder shall not affect the Obligations of the Borrower
to any other party nor shall any other party be liable for the failure of such Lender to perform
its obligations hereunder. The Lenders shall have no obligation to make Revolving Credit Loans
hereunder on or after the Expiration Date.

     2.3 Commitment Fees. Accruing from the date hereof until the Expiration Date, the
Borrower agrees to pay to the Administrative Agent for the account of each Lender according to its
Ratable Share, a nonrefundable commitment fee (the “Commitment Fee”) equal to 0.50% (computed on
the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed) multiplied by
the average daily difference between the amount of (i) the Revolving Credit Commitments (for
purposes of this computation, PNC’s Swing Loans shall be deemed to be borrowed amounts under its
Revolving Credit Commitment) and (ii) the Revolving Facility Usage; provided,
however, that any Commitment Fee accrued with respect to the Revolving Credit Commitment of
a Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrower so long as such Lender shall be a
Defaulting Lender except to the extent that such Commitment Fee shall otherwise have been due and
payable by the Borrower prior to such time; and provided further that no Commitment
Fee shall accrue with respect to the Revolving Commitment of a Defaulting Lender so long as such
Lender shall be a Defaulting Lender. Subject to the proviso in the directly preceding sentence,
all Commitment Fees shall be payable in arrears on each Payment Date.

     2.4 [Intentionally Omitted] 

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     2.5 Revolving Credit Loan Requests; Swing Loan Requests. 

          2.5.1 Revolving Credit Loan Requests. Except as otherwise provided herein, the
Borrower may from time to time prior to the Expiration Date request the Lenders to make Revolving
Credit Loans, or renew or convert the Interest Rate Option applicable to existing Revolving Credit
pursuant to Section 4.2 [Interest Periods], by delivering to the Administrative Agent, not later
than 10:00 a.m., (i) three (3) Business Days prior to the proposed Borrowing Date with respect to
the making of Revolving Credit Loans to which the LIBOR Rate Option applies or the conversion to or
the renewal of the LIBOR Rate Option for any Loans; and (ii) the same Business Day of the proposed
Borrowing Date with respect to the making of a Revolving Credit Loan to which the Base Rate Option
applies or the last day of the preceding Interest Period with respect to the conversion to the Base
Rate Option for any Loan, a duly completed request therefor substantially in the form of
Exhibit 2.5.1 or a request by telephone immediately confirmed in writing by letter, e-mail,
facsimile or telex in such form (each, a “Loan Request”), it being understood that the
Administrative Agent may rely on the authority of any individual making such a telephonic request
without the necessity of receipt of such written confirmation. Each Loan Request shall be
irrevocable and shall specify the aggregate amount of the proposed Loans comprising each Borrowing
Tranche, and, if applicable, the Interest Period, which amounts shall be in integral multiples of
$1,000,000 and not less than $5,000,000 for each Borrowing Tranche under the LIBOR Rate Option and
in integral multiples of $1,000,000 and not less than the lesser of $5,000,000 or the maximum
amount available for Borrowing Tranches under the Base Rate Option.

          2.5.2 Swing Loan Requests. Except as otherwise provided herein, the Borrower may from
time to time prior to the Expiration Date request PNC to make Swing Loans by delivery to PNC not
later than 12:00 p.m. on the proposed Borrowing Date of a duly completed request therefor
substantially in the form of Exhibit 2.5.2 hereto or a request by telephone immediately
confirmed in writing by letter, e-mail, facsimile or telex (each, a “Swing Loan Request”), it being
understood that the Administrative Agent may rely on the authority of any individual making such a
telephonic request without the necessity of receipt of such written confirmation. Each Swing Loan
Request shall be irrevocable and shall specify the proposed Borrowing Date and the principal amount
of such Swing Loan, which shall be not less than $100,000.

     2.6 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative
Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans.

          2.6.1 Making Revolving Credit Loans. The Administrative Agent shall, promptly after
receipt by it of a Loan Request pursuant to Section 2.5 [Revolving Credit Loan Requests; Swing Loan
Requests], notify the Lenders of its receipt of such Loan Request specifying the information
provided by the Borrower and the apportionment among the Lenders of the requested Revolving Credit
Loans as determined by the Administrative Agent in accordance with Section 2.2 [Nature of Lenders’
Obligations with Respect to Revolving Credit Loans]. Each Lender shall remit the principal amount
of each Revolving Credit Loan to the Administrative Agent such that the Administrative Agent is
able to, and the Administrative Agent shall, to the extent the Lenders have made funds available to
it for such purpose and

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subject to Section 7.2 [Each Loan or Letter of Credit], fund such Revolving Credit Loans to
the Borrower in U.S. Dollars and immediately available funds at the Principal Office prior to 2:00
p.m., on the applicable Borrowing Date; provided that if any Lender fails to remit such
funds to the Administrative Agent in a timely manner, the Administrative Agent may elect in its
sole discretion to fund with its own funds the Revolving Credit Loans of such Lender on such
Borrowing Date, and such Lender shall be subject to the repayment obligation in Section 2.6.2
[Presumptions by the Administrative Agent].

          2.6.2 Presumptions by the Administrative Agent. Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Loan that such Lender will not
make available to the Administrative Agent such Lender’s share of such Loan, the Administrative
Agent may assume that such Lender has made such share available on such date in accordance with
Section 2.6.1 [Making Revolving Credit Loans] 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 Loan 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 Federal Funds Effective
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 Loans under the Base Rate Option. If such Lender pays its share of the
applicable Loan to the Administrative Agent, then the amount so paid shall constitute such Lender’s
Loan. 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.

          2.6.3 Making Swing Loans. So long as PNC elects to make Swing Loans, PNC shall, after
receipt by it of a Swing Loan Request pursuant to Section 2.5.2, [Swing Loan Requests] fund such
Swing Loan to the Borrower in U.S. Dollars and immediately available funds at the Principal Office
prior to 2:00 p.m. on the Borrowing Date.

          2.6.4 Repayment of Revolving Credit Loans. The Borrower shall repay the Revolving
Credit Loans together with all outstanding interest thereon on the Expiration Date.

          2.6.5 Borrowings to Repay Swing Loans. PNC may, at its option, exercisable at any time
for any reason whatsoever, request that Swing Loans be refunded as Revolving Loans, and each Lender
shall make a Revolving Credit Loan in an amount equal to such Lender’s Ratable Share of the
aggregate principal amount of the outstanding Swing Loans, plus, if PNC so requests, accrued
interest thereon, provided that no Lender shall be obligated in any event to make Revolving
Credit Loans in excess of its Revolving Credit Commitment minus its Ratable Share of Letter of
Credit Obligations. Revolving Credit Loans made pursuant to the preceding sentence shall bear
interest at the Base Rate Option unless and until converted to a LIBOR Rate Option in accordance
with this Agreement and shall be deemed to have been properly requested in accordance with Section
2.5.1 [Revolving Credit Loan Requests] without regard to any of the requirements of that provision.
PNC shall provide notice to the Lenders (which may be telephonic or written notice by letter,
facsimile or telex) that such Revolving Credit Loans are to be made under this Section 2.6.5 and of
the apportionment among the Lenders, and the Lenders

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shall be unconditionally obligated to fund such Revolving Credit Loans (whether or not the
conditions specified in Section 2.5.1 [Revolving Credit Loan Requests] are then satisfied) by the
time PNC so requests, which shall not be earlier than 3:00 p.m. on the Business Day next after the
date the Lenders receive such notice from PNC.

     2.7 Notes. The Obligation of the Borrower to repay the aggregate unpaid principal
amount of the Revolving Credit Loans and Swing Loans made to it by each Lender, together with
interest thereon, shall be evidenced by a revolving credit Note and a swing Note, dated the Closing
Date payable to the order of such Lender in a face amount equal to the Revolving Credit Commitment
or Swing Loan Commitment, as applicable, of such Lender.

     2.8 Use of Proceeds. The proceeds of the Loans shall be used (i) to refinance
existing Indebtedness of the Borrower, (ii) to pay for transaction fees and expenses related to
entering into this Credit Agreement and (iii) for general corporate purposes.

     2.9 Letter of Credit Subfacility. 

          2.9.1 Issuance of Letters of Credit. Borrower may at any time prior to the Expiration
Date request the issuance of a standby or trade letter of credit (each a “Letter of Credit”) on
behalf of itself or any Subsidiary (provided that such Subsidiary also completes any necessary
documentation, including a letter of credit application, to the reasonable satisfaction of the
Issuing Lender) or the amendment or extension of an existing Letter of Credit, by delivering to the
Issuing Lender (with a copy to the Administrative Agent) a completed application and agreement for
letters of credit, or request for such amendment or extension, as applicable, in such form as the
Issuing Lender may specify from time to time by no later than 10:00 a.m. at least five (5) Business
Days, or such shorter period as may be agreed to by the Issuing Lender, in advance of the proposed
date of issuance. Promptly after receipt of any letter of credit application, the Issuing Lender
shall confirm with the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such Letter of Credit application and if not, such Issuing Lender will
provide Administrative Agent with a copy thereof. Unless the Issuing Lender has received notice
from any Lender, Administrative Agent or the Borrower, at least one day prior to the requested date
of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable
conditions in Section 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied,
then, subject to the terms and conditions hereof and in reliance on the agreements of the other
Lenders set forth in this Section 2.9, the Issuing Lender or any of the Issuing Lender’s Affiliates
will issue a Letter of Credit or agree to such amendment or extension, provided that each Letter of
Credit shall (A) have a maximum maturity of twelve (12) months from the date of issuance (unless
the Borrower requests a Letter of Credit with automatic extension provisions, then the maximum
maturity shall be the maturity set forth therein), and (B) in no event expire later than the
Expiration Date and provided further that in no event shall (i) the Letter of Credit Obligations
exceed, at any one time, $10,000,000 (the “Letter of Credit Sublimit”) or (ii) the Revolving
Facility Usage exceed, at any one time, the Revolving Credit Commitments. Each request by the
Borrower for the issuance, amendment or extension of a Letter of Credit shall be deemed to be a
representation by the Borrower that it shall be in compliance with the preceding sentence and with
Section 7 [Conditions of Lending and Issuance of Letters of Credit] after giving effect to the
requested issuance, amendment or extension of such Letter of Credit. Promptly after its delivery
of any Letter of Credit or any amendment to a

- 27 -

 

Letter of Credit to the beneficiary thereof, the applicable Issuing Lender will also deliver
to Borrower and Administrative Agent a true and complete copy of such Letter of Credit or
amendment. Notwithstanding the foregoing, the Issuing Lender shall not be under any obligation to
issue any Letter of Credit if any Law shall by its terms purport to enjoin or restrain the Issuing
Lender from issuing such Letter of Credit or any Law applicable to the Issuing Lender or any
request or directive (whether or not having the force of law) from any Official Body with
jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain
from, the issuance of letters of credit generally or such Letter of Credit in particular.

          2.9.2 Letter of Credit Fees. The Borrower shall pay (i) to the Administrative Agent
for the ratable account of the Lenders a fee (the “Letter of Credit Fee”) equal to the Applicable
Letter of Credit Fee Rate, and (ii) to the Issuing Lender for its own account a fronting fee equal
to 0.25% per annum (in each case computed on the basis of a year of 360 days and actual days
elapsed), which fees shall be computed on the daily average Letter of Credit Obligations and shall
be payable quarterly in arrears on each Payment Date following issuance of each Letter of Credit.
The Borrower shall also pay to the Issuing Lender for the Issuing Lender’s sole account the Issuing
Lender’s then in effect customary fees and administrative expenses payable with respect to the
Letters of Credit as the Issuing Lender may generally charge or incur from time to time in
connection with the issuance, maintenance, amendment (if any), assignment or transfer (if any),
negotiation, and administration of Letters of Credit.

          2.9.3 Disbursements, Reimbursement. Immediately upon the issuance of each Letter of
Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the Issuing Lender a participation in such Letter of Credit and each drawing
thereunder in an amount equal to such Lender’s Ratable Share of the maximum amount available to be
drawn under such Letter of Credit and the amount of such drawing, respectively.

               2.9.3.1 In the event of any request for a drawing under a Letter of Credit by the beneficiary
or transferee thereof, the Issuing Lender will promptly notify the Borrower and the Administrative
Agent thereof prior to 10:00 a.m. on the date of such drawing. Provided that it shall have
received such notice, the Borrower shall reimburse (such obligation to reimburse the Issuing Lender
shall sometimes be referred to as a “Reimbursement Obligation”) the Issuing Lender prior to 2:00
p.m. on each date that an amount is paid by the Issuing Lender under any Letter of Credit (each
such date, a “Drawing Date”) by paying to the Administrative Agent for the account of the Issuing
Lender an amount equal to the amount so paid by the Issuing Lender. In the event the Borrower
fails to reimburse the Issuing Lender (through the Administrative Agent) for the full amount of any
drawing under any Letter of Credit by 2:00 p.m. on the Drawing Date, the Administrative Agent will
promptly notify each Lender thereof, and the Borrower shall be deemed to have requested that
Revolving Credit Loans be made by the Lenders under the Base Rate Option to be disbursed on the
Drawing Date under such Letter of Credit, subject to the amount of the unutilized portion of the
Revolving Credit Commitment and subject to the conditions set forth in Section 7.2 [Each Loan or
Letter of Credit] other than any notice requirements. Any notice given by the Administrative Agent
or Issuing Lender pursuant to this Section 2.9.3.1 may be oral if immediately confirmed in writing;
provided that the lack of such an immediate confirmation shall not affect the conclusiveness or
binding effect of such notice.

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               2.9.3.2 Each Lender shall upon any notice pursuant to Section 2.9.3.1 make available to the
Administrative Agent for the account of the Issuing Lender an amount in immediately available funds
equal to its Ratable Share of the amount of the drawing, whereupon the participating Lenders shall
(subject to Section 2.9.3 [Disbursement; Reimbursement]) each be deemed to have made a Revolving
Credit Loan under the Base Rate Option to the Borrower in that amount. If any Lender so notified
fails to make available to the Administrative Agent for the account of the Issuing Lender the
amount of such Lender’s Ratable Share of such amount by no later than 3:00 p.m. on the Drawing
Date, then interest shall accrue on such Lender’s obligation to make such payment, from the Drawing
Date to the date on which such Lender makes such payment (i) at a rate per annum equal to the
Federal Funds Effective Rate during the first three (3) days following the Drawing Date and (ii) at
a rate per annum equal to the rate applicable to Loans under the Revolving Credit Base Rate Option
on and after the fourth day following the Drawing Date. The Administrative Agent and the Issuing
Lender will promptly give notice (as described in Section 2.9.3.1 above) of the occurrence of the
Drawing Date, but failure of the Administrative Agent or the Issuing Lender to give any such notice
on the Drawing Date or in sufficient time to enable any Lender to effect such payment on such date
shall not relieve such Lender from its obligation under this Section 2.9.3.2.

               2.9.3.3 With respect to any unreimbursed drawing that is not converted into Revolving Credit
Loans under the Base Rate Option to the Borrower in whole or in part as contemplated by Section
2.9.3.1, because of the Borrower’s failure to satisfy the conditions set forth in Section 7.2 [Each
Loan or Letter of Credit] other than any notice requirements, or for any other reason, the Borrower
shall be deemed to have incurred from the Issuing Lender a borrowing (each a “Letter of Credit
Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the rate per annum applicable
to the Revolving Credit Loans under the Base Rate Option. Each Lender’s payment to the
Administrative Agent for the account of the Issuing Lender pursuant to Section 2.9.3
[Disbursements, Reimbursement] shall be deemed to be a payment in respect of its participation in
such Letter of Credit Borrowing (each a “Participation Advance”) from such Lender in satisfaction
of its participation obligation under this Section 2.9.3.

          2.9.4 Repayment of Participation Advances.

               2.9.4.1 Upon (and only upon) receipt by the Administrative Agent for the account of the
Issuing Lender of immediately available funds from the Borrower (i) in reimbursement of any payment
made by the Issuing Lender under the Letter of Credit with respect to which any Lender has made a
Participation Advance to the Administrative Agent, or (ii) in payment of interest on such a payment
made by the Issuing Lender under such a Letter of Credit, the Administrative Agent on behalf of the
Issuing Lender will pay to each Lender, in the same funds as those received by the Administrative
Agent, the amount of such Lender’s Ratable Share of such funds, except the Administrative Agent
shall retain for the account of the Issuing Lender the amount of the Ratable Share of such funds of
any Lender that did not make a Participation Advance in respect of such payment by the Issuing
Lender.

               2.9.4.2 If the Administrative Agent is required at any time to return to the Borrower, or to a
trustee, receiver, liquidator, custodian, or any official in any Insolvency

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Proceeding, any portion of any payment made by the Borrower to the Administrative Agent for
the account of the Issuing Lender pursuant to this Section in reimbursement of a payment made under
the Letter of Credit or interest or fee thereon, each Lender shall, on demand of the Administrative
Agent, forthwith return to the Administrative Agent for the account of the Issuing Lender the
amount of its Ratable Share of any amounts so returned by the Administrative Agent plus interest
thereon from the date such demand is made to the date such amounts are returned by such Lender to
the Administrative Agent, at a rate per annum equal to the Federal Funds Effective Rate in effect
from time to time.

          2.9.5 Documentation. The Borrower agrees to be bound by the terms of the Issuing
Lender’s application and agreement for letters of credit and the Issuing Lender’s written
regulations and customary practices relating to letters of credit, though such interpretation may
be different from the Borrower’s own. In the event of a conflict between such application or
agreement and this Agreement, this Agreement shall govern. It is understood and agreed that,
except in the case of gross negligence or willful misconduct, the Issuing Lender shall not be
liable for any error, negligence and/or mistakes, whether of omission or commission, in following
the Borrower’s instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto.

          2.9.6 Determinations to Honor Drawing Requests. In determining whether to honor any
request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing Lender shall
be responsible only to determine that the documents and certificates required to be delivered under
such Letter of Credit have been delivered and that they comply on their face with the requirements
of such Letter of Credit.

          2.9.7 Nature of Participation and Reimbursement Obligations. Each Lender’s obligation
in accordance with this Agreement to make the Revolving Credit Loans or Participation Advances, as
contemplated by Section 2.9.3 [Disbursements, Reimbursement], as a result of a drawing under a
Letter of Credit, and the Obligations of the Borrower to reimburse the Issuing Lender upon a draw
under a Letter of Credit, shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Section 2.9 under all circumstances, including the
following circumstances:

          (i) any set-off, counterclaim, recoupment, defense or other right which such Lender may have
against the Issuing Lender or any of its Affiliates, the Borrower or any other Person for any
reason whatsoever, or which the Borrower may have against the Issuing Lender or any of its
Affiliates, any Lender or any other Person for any reason whatsoever;

          (ii) the failure of the Borrower or any other Person to comply, in connection with a Letter of
Credit Borrowing, with the conditions set forth in Sections 2.1 [Revolving Credit Commitments], 2.5
[Revolving Credit Loan Requests; Swing Loan Requests], 2.6 [Making Revolving Credit Loans and Swing
Loans; Etc.] or 7.2 [Each Loan or Letter of Credit] or as otherwise set forth in this Agreement for
the making of a Revolving Credit Loan, it being acknowledged that such conditions are not required
for the making of a Letter of Credit Borrowing and the obligation of the Lenders to make
Participation Advances under Section 2.9.3 [Disbursements, Reimbursement];

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          (iii) any lack of validity or enforceability of any Letter of Credit;

          (iv) any claim of breach of warranty that might be made by the Borrower or any Lender against
any beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment,
counterclaim, crossclaim, defense or other right which the Borrower or any Lender may have at any
time against a beneficiary, successor beneficiary any transferee or assignee of any Letter of
Credit or the proceeds thereof (or any Persons for whom any such transferee may be acting), the
Issuing Lender or its Affiliates or any Lender or any other Person, whether in connection with this
Agreement, the transactions contemplated herein or any unrelated transaction (including any
underlying transaction between the Borrower or any Subsidiaries of the Borrower and the beneficiary
for which any Letter of Credit was procured);

          (v) the lack of power or authority of any signer of (or any defect in or forgery of any
signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy,
enforceability or genuineness of any draft, demand, instrument, certificate or other document
presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in
connection with any Letter of Credit, or the transport of any property or provision of services
relating to a Letter of Credit, in each case even if the Issuing Lender or any of its Affiliates
has been notified thereof;

          (vi) payment by the Issuing Lender or any of its Affiliates under any Letter of Credit against
presentation of a demand, draft or certificate or other document which does not comply with the
terms of such Letter of Credit;

          (vii) the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit,
or any other Person having a role in any transaction or obligation relating to a Letter of Credit,
or the existence, nature, quality, quantity, condition, value or other characteristic of any
property or services relating to a Letter of Credit;

          (viii) any failure by the Issuing Lender or any of its Affiliates to issue any Letter of
Credit in the form requested by the Borrower, unless the Issuing Lender has received written notice
from the Borrower of such failure within three Business Days after the Issuing Lender shall have
furnished the Borrower and the Administrative Agent a copy of such Letter of Credit and such error
is material and no drawing has been made thereon prior to receipt of such notice;

          (ix) any adverse change in the business, operations, properties, assets, condition (financial
or otherwise) or prospects of the Borrower or Subsidiaries of the Borrower;

          (x) any breach of this Agreement or any other Loan Document by any party thereto;

          (xi) the occurrence or continuance of an Insolvency Proceeding with respect to the Borrower;

          (xii) the fact that an Event of Default or a Potential Default shall have occurred and be
continuing;

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          (xiii) the fact that the Expiration Date shall have passed or this Agreement or the
Commitments hereunder shall have been terminated; and

          (xiv) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing.

          Nothing in the preceding section shall relieve the Issuing Lender from liability for the
Issuing Lender’s gross negligence or willful misconduct in connection with actions or omissions
described in clauses (i) through (xiv) of such section. In no event shall the Issuing Lender or
its Affiliates be liable to any Lender for any indirect, consequential, incidental, punitive,
exemplary or special damages or expenses (including without limitation attorneys’ fees), or for any
damages resulting from any change in the value of any property relating to a Letter of Credit.

          2.9.8 Indemnity. The Borrower hereby agrees to protect, indemnify, pay and save
harmless the Issuing Lender and any of its Affiliates that has issued a Letter of Credit from and
against any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments,
losses, costs, charges and expenses (including reasonable fees, expenses and disbursements of
counsel) which the Issuing Lender or any of its Affiliates may incur or be subject to as a
consequence, direct or indirect, of the issuance of any Letter of Credit, other than as a result of
(A) the gross negligence or willful misconduct of the Issuing Lender as determined by a final
non-appealable judgment of a court of competent jurisdiction or (B) the wrongful dishonor by the
Issuing Lender or any of Issuing Lender’s Affiliates of a proper demand for payment made under any
Letter of Credit, except if such dishonor resulted from any act or omission, whether rightful or
wrongful, of any present or future de jure or de facto government or Official Body.

          2.9.9 Liability for Acts and Omissions. As between the Borrower and the Issuing
Lender, or the Issuing Lender’s Affiliates, the Borrower assumes all risks of the acts and
omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters
of Credit. In furtherance and not in limitation of the foregoing, the Issuing Lender shall not be
responsible for any of the following, including any losses or damages to the Borrower or other
Person or property relating therefrom: (i) the form, validity, sufficiency, accuracy, genuineness
or legal effect of any document submitted by any party in connection with the application for an
issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects
invalid, insufficient, inaccurate, fraudulent or forged (even if the Issuing Lender or its
Affiliates shall have been notified thereof); (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any such Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of
Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with
any conditions required in order to draw upon such Letter of Credit or any other claim of the
Borrower against any beneficiary of such Letter of Credit, or any such transferee, or any dispute
between or among the Borrower and any beneficiary of any Letter of Credit or any such transferee;
(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in
interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any
document required

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in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii)
the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing
under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of
the Issuing Lender or its Affiliates, as applicable, including any act or omission of any Official
Body, and none of the above shall affect or impair, or prevent the vesting of, any of the Issuing
Lender’s or its Affiliates rights or powers hereunder. Nothing in the preceding sentence shall
relieve the Issuing Lender from liability for the Issuing Lender’s gross negligence or willful
misconduct in connection with actions or omissions described in such clauses (i) through (viii) of
such sentence. In no event shall the Issuing Lender or its Affiliates be liable to the Borrower
for any indirect, consequential, incidental, punitive, exemplary or special damages or expenses
(including without limitation attorneys’ fees), or for any damages resulting from any change in the
value of any property relating to a Letter of Credit.

          Without limiting the generality of the foregoing, the Issuing Lender and each of its
Affiliates (i) may rely on any oral or other communication believed in good faith by the Issuing
Lender or such Affiliate to have been authorized or given by or on behalf of the applicant for a
Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face
substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may
honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was
pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,
and shall be entitled to reimbursement to the same extent as if such presentation had initially
been honored, together with any interest paid by the Issuing Lender or its Affiliate; (iv) may
honor any drawing that is payable upon presentation of a statement advising negotiation or payment,
upon receipt of such statement (even if such statement indicates that a draft or other document is
being delivered separately), and shall not be liable for any failure of any such draft or other
document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any
paying or negotiating bank claiming that it rightfully honored under the laws or practices of the
place where such bank is located; and (vi) may settle or adjust any claim or demand made on the
Issuing Lender or its Affiliate in any way related to any order issued at the applicant’s request
to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar
document (each an “Order”) and honor any drawing in connection with any Letter of Credit that is
the subject of such Order, notwithstanding that any drafts or other documents presented in
connection with such Letter of Credit fail to conform in any way with such Letter of Credit.

          In furtherance and extension and not in limitation of the specific provisions set forth above,
any action taken or omitted by the Issuing Lender or its Affiliates under or in connection with the
Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or
omitted in good faith, shall not put the Issuing Lender or its Affiliates under any resulting
liability to the Borrower or any Lender.

          2.9.10 Issuing Lender Reporting Requirements. Each Issuing Lender shall, on the first
Business Day of each month, provide to Administrative Agent and Borrower a schedule of the Letters
of Credit issued by it, in form and substance satisfactory to Administrative Agent, showing the
date of issuance of each Letter of Credit, the account party, the original face amount (if any),
and the expiration date of any Letter of Credit outstanding at any time during the preceding month,
and any other information relating to such Letter of Credit that the Administrative Agent may
request.

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     2.10 Reduction of Revolving Credit Commitment. The Borrower shall have the right at
any time after the Closing Date upon five (5) days’ prior written notice to the Administrative
Agent to permanently reduce (ratably among the Lenders in proportion to their Ratable Shares) the
Revolving Credit Commitments, in a minimum amount of $5,000,000 and whole multiples of $1,000,000,
or to terminate completely the Revolving Credit Commitments, without penalty or premium except as
hereinafter set forth; provided that any such reduction or termination shall be accompanied
by prepayment of the Notes, together with outstanding Commitment Fees, and the full amount of
interest accrued on the principal sum to be prepaid (and all amounts referred to in Section 5.10
[Indemnity] hereof) to the extent necessary to cause the aggregate Revolving Facility Usage after
giving effect to such prepayments to be equal to or less than the Revolving Credit Commitments as
so reduced or terminated. Any notice to reduce the Revolving Credit Commitments under this Section
shall be irrevocable, except a termination in full of the Revolving Credit Commitments may be
conditioned on the effectiveness of a replacement credit facility.

     2.11 Increase in Revolving Credit Commitments.

          2.11.1 Increasing Lenders and New Lenders. The Borrower may, at any time prior to the
second anniversary of the Closing Date, make a one time request that (1) the current Lenders
increase their Revolving Credit Commitments (any current Lender which elects to increase its
Revolving Credit Commitment shall be referred to as an “Increasing Lender”) or (2) one or more new
lenders (each a “New Lender”) join this Agreement and provide a Revolving Credit Commitment
hereunder, subject to the following terms and conditions:

          (i) No Obligation to Increase. No current Lender shall be obligated to increase its
Revolving Credit Commitment and any increase in the Revolving Credit Commitment by any current
Lender shall be in the sole discretion of such current Lender.

          (ii) Defaults. There shall exist no Events of Default or Potential Default on the
effective date of such increase after giving effect to such increase.

          (iii) Aggregate Revolving Credit Commitments. Such increase shall be in an amount
less than or equal to $50,000,0000.

          (iv) Resolutions; Opinion. The Borrower shall deliver to the Administrative Agent on
or before the effective date of such increase the following documents in a form reasonably
acceptable to the Administrative Agent: (1) certifications of its corporate secretary with attached
resolutions certifying that the increase in the Revolving Credit Commitment has been approved by
the Borrower, and (2) an opinion of counsel addressed to the Administrative Agent and the Lenders
addressing the authorization and execution of the Loan Documents by, and enforceability of the Loan
Documents against, the Borrower.

          (v) Notes. The Borrower shall execute and deliver (1) to each Increasing Lender a
replacement revolving credit Note reflecting the new amount of such Increasing Lender’s Revolving
Credit Commitment after giving effect to the increase (and the prior Note issued to such Increasing
Lender shall be deemed to be terminated) and (2) to each New Lender

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a revolving credit Note reflecting the amount of such New Lender’s Revolving Credit
Commitment.

          (vi) Approval of New Lenders. Any New Lender shall be subject to the approval of the
Administrative Agent, which approval shall not be unreasonably withheld or delayed.

          (vii) Increasing Lenders. Each Increasing Lender shall confirm its agreement to
increase its Revolving Credit Commitment pursuant to an acknowledgement in a form acceptable to the
Administrative Agent, signed by it and the Borrower and delivered to the Administrative Agent at
least five (5) days before the effective date of such increase.

          (viii) New Lenders—Joinder. Each New Lender shall execute a lender joinder in
substantially the form of Exhibit 2.11 pursuant to which such New Lender shall join and
become a party to this Agreement and the other Loan Documents with a Revolving Credit Commitment in
the amount set forth in such lender joinder.

          2.11.2 Treatment of Outstanding Loans and Letters of Credit.

          (i) Repayment of Outstanding Loans; Borrowing of New Loans. On the effective date of
such increase, the Borrower shall repay all Loans then outstanding, subject to the Borrower’s
indemnity obligations under Section 5.10 [Indemnity]; provided that it may borrow new Loans
with a Borrowing Date on such date. Each of the Lenders shall participate in any new Loans made on
or after such date in accordance with their respective Ratable Shares after giving effect to the
increase in Revolving Credit Commitments contemplated by this Section.

          (ii) Outstanding Letters of Credit. Repayment of Outstanding Loans; Borrowing of New
Loans. On the effective date of such increase, each Increasing Lender and each New Lender (i)
will be deemed to have purchased a participation in each then outstanding Letter of Credit equal to
its Ratable Share of such Letter of Credit and the participation of each other Lender in such
Letter of Credit shall be adjusted accordingly and (ii) will acquire, (and will pay to the
Administrative Agent, for the account of each Lender, in immediately available funds, an amount
equal to) its Ratable Share of all outstanding Participation Advances.

3.
[INTENTIONALLY OMITTED]

4. INTEREST RATES

     4.1 Interest Rate Options. The Borrower shall pay interest in respect of the outstanding
unpaid principal amount of the Loans as selected by it from the Base Rate Option or LIBOR Rate
Option set forth below applicable to the Loans, it being understood that, subject to the provisions
of this Agreement, the Borrower may select different Interest Rate Options and different Interest
Periods to apply simultaneously to the Loans comprising different Borrowing Tranches and may
convert to or renew one or more Interest Rate Options with respect to all or any portion of the
Loans comprising any Borrowing Tranche; provided that there shall not be at any one time
outstanding more than six (6) Borrowing Tranches in the aggregate among all of the Loans and
provided further that if an Event of Default or Potential Default exists and is

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continuing, the Borrower may not request, convert to, or renew the LIBOR Rate Option for any Loans
and the Required Lenders may demand that all existing Borrowing Tranches bearing interest under the
LIBOR Rate Option shall be converted at the end of the applicable Interest Period to the Base Rate
Option. If at any time the designated rate applicable to any Loan made by any Lender exceeds such
Lender’s highest lawful rate, the rate of interest on such Lender’s Loan shall be limited to such
Lender’s highest lawful rate.

          4.1.1 Revolving Credit Interest Rate Options; Swing Line Interest Rate. The Borrower
shall have the right to select from the following Interest Rate Options applicable to the Revolving
Credit Loans:

          (i) Revolving Credit Base Rate Option: A fluctuating rate per annum (computed on the
basis of a year of 360 days and actual days elapsed) equal to the Base Rate plus the Applicable
Margin, such interest rate to change automatically from time to time effective as of the effective
date of each change in the Base Rate; or

          (ii) Revolving Credit LIBOR Rate Option: A rate per annum (computed on the basis of a
year of 360 days and actual days elapsed) equal to the LIBOR Rate plus the Applicable Margin.

Subject to Section 4.3 [Interest After Default], only the Base Rate Option applicable to Revolving
Credit Loans shall apply to the Swing Loans.

          4.1.2 Rate Quotations. The Borrower may call the Administrative Agent on or before
the date on which a Loan Request is to be delivered to receive an indication of the rates then in
effect, but it is acknowledged that such projection shall not be binding on the Administrative
Agent or the Lenders nor affect the rate of interest which thereafter is actually in effect when
the election is made.

     4.2 Interest Periods. At any time when the Borrower shall select, convert to or renew
a LIBOR Rate Option, the Borrower shall notify the Administrative Agent thereof at least three (3)
Business Days prior to the effective date of such LIBOR Rate Option by delivering a Loan Request.
The notice shall specify an Interest Period during which such Interest Rate Option shall apply.
Notwithstanding the preceding sentence, the following provisions shall apply to any selection of,
renewal of, or conversion to a LIBOR Rate Option:

          4.2.1 Amount of Borrowing Tranche. Each Borrowing Tranche of Loans under the LIBOR
Rate Option shall be in integral multiples of $1,000,000 and not less than $5,000,000; and

          4.2.2 Renewals. In the case of the renewal of a LIBOR Rate Option at the end of an
Interest Period, the first day of the new Interest Period shall be the last day of the preceding
Interest Period, without duplication in payment of interest for such day.

     4.3 Interest After Default. To the extent permitted by Law, upon the occurrence of an
Event of Default and until such time such Event of Default shall have been cured or waived, and at
the discretion of the Administrative Agent or upon written demand by the Required Lenders to the
Administrative Agent:

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          4.3.1 Letter of Credit Fees, Interest Rate. The Letter of Credit Fees and the rate of
interest for each Loan otherwise applicable pursuant to Section 2.9.2 [Letter of Credit Fees] or
Section 4.1 [Interest Rate Options], respectively, shall be increased by 2.0% per annum;

          4.3.2 Other Obligations. Each other Obligation hereunder if not paid when due shall
bear interest at a rate per annum equal to the sum of the rate of interest applicable under the
Revolving Credit Base Rate Option plus an additional 2.0% per annum from the time such Obligation
becomes due and payable and until it is paid in full; and

          4.3.3 Acknowledgment. The Borrower acknowledges that the increase in rates referred
to in this Section 4.3 reflects, among other things, the fact that such Loans or other amounts have
become a substantially greater risk given their default status and that the Lenders are entitled to
additional compensation for such risk; and all such interest shall be payable by Borrower upon
demand by Administrative Agent.

     4.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available.

          4.4.1 Unascertainable. If on any date on which a LIBOR Rate would otherwise be
determined, the Administrative Agent shall have determined that:

          (i) adequate and reasonable means do not exist for ascertaining such LIBOR Rate, or

          (ii) a contingency has occurred which materially and adversely affects the London interbank
eurodollar market relating to the LIBOR Rate, the Administrative Agent shall have the rights
specified in Section 4.4.3 [Administrative Agent’s and Lender’s Rights].

          4.4.2 Illegality; Increased Costs; Deposits Not Available. If at any time any Lender
shall have determined that:

          (i) the making, maintenance or funding of any Loan to which a LIBOR Rate Option applies has
been made impracticable or unlawful by compliance by such Lender in good faith with any Law or any
interpretation or application thereof by any Official Body or with any request or directive of any
such Official Body (whether or not having the force of Law), or

          (ii) such LIBOR Rate Option will not adequately and fairly reflect the cost to such Lender of
the establishment or maintenance of any such Loan, or

          (iii) after making all reasonable efforts, deposits of the relevant amount in Dollars for the
relevant Interest Period for a Loan, or to banks generally, to which a LIBOR Rate Option applies,
respectively, are not available to such Lender with respect to such Loan, or to banks generally, in
the interbank eurodollar market,

then the Administrative Agent shall have the rights specified in Section 4.4.3 [Administrative
Agent’s and Lender’s Rights].

          4.4.3 Administrative Agent’s and Lender’s Rights. In the case of any event specified
in Section 4.4.1 [Unascertainable] above, the Administrative Agent shall promptly so

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notify the Lenders and the Borrower thereof, and in the case of an event specified in Section
4.4.2 [Illegality; Increased Costs; Deposits Not Available] above, such Lender shall promptly so
notify the Administrative Agent and endorse a certificate to such notice as to the specific
circumstances of such notice, and the Administrative Agent shall promptly send copies of such
notice and certificate to the other Lenders and the Borrower. Upon such date as shall be specified
in such notice (which shall not be earlier than the date such notice is given), the obligation of
(A) the Lenders, in the case of such notice given by the Administrative Agent, or (B) such Lender,
in the case of such notice given by such Lender, to allow the Borrower to select, convert to or
renew a LIBOR Rate Option shall be suspended until the Administrative Agent shall have later
notified the Borrower, or such Lender shall have later notified the Administrative Agent, of the
Administrative Agent’s or such Lender’s, as the case may be, determination that the circumstances
giving rise to such previous determination no longer exist. If at any time the Administrative
Agent makes a determination under Section 4.4.1 [Unascertainable] and the Borrower has previously
notified the Administrative Agent of its selection of, conversion to or renewal of a LIBOR Rate
Option and such Interest Rate Option has not yet gone into effect, such notification shall be
deemed to provide for selection of, conversion to or renewal of the Base Rate Option otherwise
available with respect to such Loans. If any Lender notifies the Administrative Agent of a
determination under Section 4.4.2 [Illegality; Increased Costs; Deposits Not Available], the
Borrower shall, subject to the Borrower’s indemnification Obligations under Section 5.10
[Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option applies, on the date
specified in such notice either convert such Loan to the Base Rate Option otherwise available with
respect to such Loan or prepay such Loan in accordance with Section 5.6 [Voluntary Prepayments].
Absent due notice from the Borrower of conversion or prepayment, such Loan shall automatically be
converted to the Base Rate Option otherwise available with respect to such Loan upon such specified
date.

     4.5 Selection of Interest Rate Options. If the Borrower fails to select a new
Interest Period to apply to any Borrowing Tranche of Loans under the LIBOR Rate Option at the
expiration of an existing Interest Period applicable to such Borrowing Tranche in accordance with
the provisions of Section 4.2 [Interest Periods], the Borrower shall be deemed to have converted
such Borrowing Tranche to the Base Rate Option commencing upon the last day of the existing
Interest Period.

5. PAYMENTS

     5.1 Payments. All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Administrative Agent’s Fee or other fees or
amounts due from the Borrower hereunder shall be payable prior to 2:00 p.m. on the date when due
without presentment, demand, protest or notice of any kind, all of which are hereby expressly
waived by the Borrower, and without set-off, counterclaim or other deduction of any nature, and an
action therefor shall immediately accrue. Such payments shall be made to the Administrative Agent
at the Principal Office for the account of PNC with respect to the Swing Loans and for the ratable
accounts of the Lenders with respect to the Revolving Credit Loans in U.S. Dollars and in
immediately available funds, and the Administrative Agent shall promptly distribute such amounts to
the Lenders in immediately available funds; provided that in the event payments are
received by 2:00 p.m. by the Administrative Agent with respect to the Loans and such payments are
not distributed to the Lenders on the same day received by the Administrative

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Agent, the Administrative Agent shall pay the Lenders the Federal Funds Effective Rate with
respect to the amount of such payments for each day held by the Administrative Agent and not
distributed to the Lenders. The Administrative Agent’s and each Lender’s statement of account,
ledger or other relevant record shall, in the absence of manifest error, be conclusive as the
statement of the amount of principal of and interest on the Loans and other amounts owing under
this Agreement and shall be deemed an “account stated.”

     5.2 Pro Rata Treatment of Lenders. Each borrowing shall be allocated to each Lender
according to its Ratable Share, and each selection of, conversion to or renewal of any Interest
Rate Option and each payment or prepayment by the Borrower with respect to principal, interest,
Commitment Fees, Letter of Credit Fees, or other fees (except for the Administrative Agent’s Fee
and the Issuing Lender’s fronting fee) or amounts due from the Borrower hereunder to the Lenders
with respect to the Loans, shall (except as otherwise may be provided with respect to a Defaulting
Lender or a Delinquent Lender and except as provided in Section 4.4.3 [Administrative Agent’s and
Lender’s Rights] in the case of an event specified in Section 4.4 [LIBOR Rate Unascertainable;
Etc.], 5.6.2 [Replacement of a Lender] or 5.8 [Increased Costs]) be made in proportion to the
applicable Loans outstanding from each Lender and, if no such Loans are then outstanding, in
proportion to the Ratable Share of each Lender. Notwithstanding any of the foregoing, each
borrowing or payment or prepayment by the Borrower of principal, interest, fees or other amounts
from the Borrower with respect to Swing Loans shall be made by or to PNC according to Section 2.6.5
[Borrowings to Repay Swing Loans].

     5.3 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by realization upon
security, or by any other non-pro rata source, 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 greater than its Ratable 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:

          (i) if any such participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase price restored to the
extent of such recovery, together with interest or other amounts, if any, required by Law
(including court order) to be paid by the Lender or the holder making such purchase; and

          (ii) the provisions of this Section 5.3 shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of the Loan Documents 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 Participation Advances to any assignee or participant, other
than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section 5.3
shall apply).

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

Notwithstanding anything to the contrary contained in this Agreement or any of the other Loan
Documents, any Lender that fails at any time to comply with the provisions of this Section 5.3 with
respect to purchasing participations from the other Lenders whereby such Lender’s share of any
payment received, whether by setoff or otherwise, is in excess of its Ratable Share of such
payments due and payable to all of the Lenders, when and to the full extent required by the
provisions of this Agreement, shall be deemed delinquent (a “Delinquent Lender”)
and shall be deemed a Delinquent Lender until such time as each such delinquency and all of its
obligations hereunder are satisfied. A Delinquent Lender shall be deemed to have assigned any and
all payments due to it from the Borrower, whether on account of or relating to outstanding Loans,
Letters of Credit, interest, fees or otherwise, to the remaining nondelinquent Lenders for
application to, and reduction of, their respective Ratable Share of all outstanding Loans and other
unpaid Obligations of the Borrower. The Delinquent Lender hereby authorizes the Administrative
Agent to distribute such payments to the nondelinquent Lenders in proportion to their respective
Ratable Share of all outstanding Loans and other unpaid Obligations of the Borrower. A Delinquent
Lender shall be deemed to have satisfied in full a delinquency when and if, as a result of
application of the assigned payments to all outstanding Loans and other unpaid Obligations of the
Borrower to the nondelinquent Lenders, the Lenders’ respective Ratable Share of all outstanding
Loans and unpaid Obligations have returned to those in effect immediately prior to such delinquency
and without giving effect to the nonpayment causing such delinquency.

     5.4 Presumptions by Administrative Agent. Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or the Issuing Lender hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made
such payment on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Lender, as the case may be, the amount due. In such
event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing
Lender, as the case may be, severally agrees to repay to the Administrative Agent forthwith on
demand the amount so distributed to such Lender or the Issuing Lender, with interest thereon, for
each day from and including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation.

     5.5 Interest Payment Dates. Interest on Loans to which the Base Rate Option applies
shall be due and payable in arrears on each Payment Date. Interest on Loans to which the LIBOR
Rate Option applies shall be due and payable on the last day of each Interest Period for those
Loans and, if such Interest Period is longer than three (3) Months, also on the 90th day of such
Interest Period. Interest on the principal amount of each Loan or other monetary Obligation shall
be due and payable on demand after such principal amount or other monetary Obligation

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becomes due and payable (whether on the stated Expiration Date, upon acceleration or
otherwise).

     5.6 Voluntary Prepayments.

          5.6.1 Right to Prepay. The Borrower shall have the right at its option from time to
time to prepay the Loans in whole or part without premium or penalty (except as provided in Section
5.6.2 [Replacement of a Lender] below, in Section 5.8 [Increased Costs] and Section 5.10
[Indemnity]). Whenever the Borrower desires to prepay any part of the Loans, it shall provide a
prepayment notice to the Administrative Agent by 1:00 p.m. at least one (1) Business Day prior to
the date of prepayment of the Revolving Credit Loans or no later than 1:00 p.m. on the date of
prepayment of Swing Loans, setting forth the following information:

          (w) the date, which shall be a Business Day, on which the proposed prepayment
is to be made;

          (x) a statement indicating the application of the prepayment between Loans to
which the Base Rate Option applies and Loans to which the LIBOR Rate Option applies;

          (y) a statement indicating the application of the prepayment between the
Revolving Credit Loans and Swing Loans; and

          (z) the total principal amount of such prepayment, which shall not be less than
the lesser of (i) the Facility Usage or (ii) $100,000 for any Swing Loan or
$1,000,000 for any Revolving Credit Loan.

          All prepayment notices shall be irrevocable. The principal amount of the Loans for which a
prepayment notice is given, together with interest on such principal amount except with respect to
Loans to which the Base Rate Option applies, shall be due and payable on the date specified in such
prepayment notice as the date on which the proposed prepayment is to be made. Except as provided
in Section 4.4.3 [Administrative Agent’s and Lender’s Rights], if the Borrower prepays a Loan but
fails to specify the applicable Borrowing Tranche which the Borrower is prepaying, the prepayment
shall be applied first to Loans to which the Base Rate Option applies, then to Loans to which the
LIBOR Rate Option applies. Any prepayment hereunder shall be subject to the Borrower’s Obligation
to indemnify the Lenders under Section 5.10 [Indemnity].

          5.6.2 Replacement of a Lender. In the event any Lender (i) gives notice under Section
4.4 [LIBOR Rate Unascertainable, Etc.], (ii) requests compensation under Section 5.8 [Increased
Costs], or requires the Borrower to pay any additional amount to any Lender or any Official Body
for the account of any Lender pursuant to Section 5.9 [Taxes], (iii) is a Defaulting Lender, (iv)
becomes subject to the control of an Official Body (other than normal and customary supervision),
or (v) is a Non-Consenting Lender referred to in Section 11.1 [Modifications, Amendments or
Waivers], then in any such event the Borrower may, at its sole expense, 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
11.8 [Successors and Assigns]), all of its interests, rights and obligations under this Agreement
and the related Loan Documents to an assignee that shall

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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 11.8 [Successors and Assigns];

          (ii) such Lender shall have received payment of an amount equal to the outstanding principal
of its Loans and Participation Advances, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents (including any amounts under
Section 5.10 [Indemnity]) 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
5.8.1 [Increased Costs Generally] or payments required to be made pursuant to Section 5.9 [Taxes],
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.

     5.7 [Intentionally Omitted]

     5.8 Increased Costs.

          5.8.1 Increased Costs Generally. If any Change in Law shall:

          (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 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 Loan under
the LIBOR Rate Option 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
5.9 [Taxes] 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, the Issuing Lender or the London interbank market any other
condition, cost or expense affecting this Agreement or any Loan under the LIBOR Rate Option made by
such Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan under the LIBOR Rate Option (or of maintaining its obligation to make

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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 request of such Lender or the Issuing Lender, the Borrower will 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, as the case may be, for such additional costs incurred or reduction
suffered.

          5.8.2 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 Commitments 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 the
Borrower will 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.

          5.8.3 Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New
Loans. 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 Sections 5.8.1 [Increased Costs Generally] or 5.8.2 [Capital Requirements] and
delivered to the Borrower shall be conclusive absent manifest error. The Borrower shall pay such
Lender or the Issuing Lender, as the case may be, the amount shown as due on any such certificate
within ten (10) days after receipt thereof.

          5.8.4 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 nine 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 (9) month period referred to above
shall be extended to include the period of retroactive effect thereof).

     5.9 Taxes. 

          5.9.1 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

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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 Official Body in accordance with applicable Law.

          5.9.2 Payment of Other Taxes by the Borrower. Without limiting the provisions of
Section 5.9.1 [Payments Free of Taxes] above, the Borrower shall timely pay any Other Taxes to the
relevant Official Body in accordance with applicable Law.

          5.9.3 Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Lender, within ten (10) days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes
or Other 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 or Other Taxes were correctly or legally imposed or asserted by the
relevant Official Body. 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.

          5.9.4 Evidence of Payments. As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to an Official Body, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Official Body
evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent.

          5.9.5 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. Notwithstanding the submission of such documentation claiming a
reduced rate of or exemption from U.S. withholding tax, the Administrative Agent shall be entitled
to withhold United States federal income taxes at the full 30% withholding rate if in its
reasonable judgment it is required to do so under the due diligence requirements imposed upon a
withholding agent under § 1.1441-7(b) of the United States Income Tax Regulations. Further, the
Administrative Agent is indemnified under § 1.1461-1(e) of the United States Income Tax Regulations
against any claims and demands of any Lender or assignee or participant of a Lender for the amount
of any tax it deducts and withholds in

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accordance with regulations under § 1441 of the Internal Revenue Code. 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 withholding or information reporting requirements.

          Without limiting the generality of the foregoing, in the event that the Borrower is resident
for tax purposes in the United States of America, 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:

          (i) two (2) duly completed valid originals of IRS Form W-8BEN claiming eligibility for
benefits of an income tax treaty to which the United States of America is a party,

          (ii) two (2) duly completed valid originals of IRS Form W-8ECI,

          (iii) 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) two (2) duly
completed valid originals of IRS Form W-8BEN, or

          (iv) 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.

          (v) To the extent that any Lender is not a Foreign Lender, such Lender shall submit to the
Administrative Agent two (2) originals of a W-9 or any other form prescribed by applicable Law
demonstrating that such Lender is not a Foreign Lender.

     5.10 Indemnity. In addition to the compensation or payments required by Section 5.8
[Increased Costs]or Section 5.9 [Taxes], the Borrower shall indemnify each Lender against all
liabilities, losses or expenses (including loss of margin, any loss or expense incurred in
liquidating or employing deposits from third parties and any loss or expense incurred in connection
with funds acquired by a Lender to fund or maintain Loans subject to a LIBOR Rate Option) which
such Lender sustains or incurs as a consequence of any

          (i) payment, prepayment, conversion or renewal of any Loan to which a LIBOR Rate Option
applies on a day other than the last day of the corresponding Interest Period (whether or not such
payment or prepayment is mandatory, voluntary or automatic and whether or not such payment or
prepayment is then due),

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          (ii) attempt by the Borrower to revoke (expressly, by later inconsistent notices or otherwise)
in whole or part any Loan Requests under Section 2.5 [Revolving Credit Loan Requests; Swing Loan
Requests] or Section 4.2 [Interest Periods] or notice relating to prepayments under Section 5.6
[Voluntary Prepayments], or

          (iii) default by the Borrower in the performance or observance of any covenant or condition
contained in this Agreement or any other Loan Document, including any failure of the Borrower to
pay when due (by acceleration or otherwise) any principal, interest, Commitment Fee or any other
amount due hereunder.

          If any Lender sustains or incurs any such loss or expense, it shall from time to time notify
the Borrower of the amount determined in good faith by such Lender (which determination may include
such assumptions, allocations of costs and expenses and averaging or attribution methods as such
Lender shall deem reasonable) to be necessary to indemnify such Lender for such loss or expense.
Such notice shall set forth in reasonable detail the basis for such determination. Such amount
shall be due and payable by the Borrower to such Lender ten (10) Business Days after such notice is
given.

     5.11 Settlement Date Procedures. In order to minimize the transfer of funds between
the Lenders and the Administrative Agent, the Borrower may borrow, repay and reborrow Swing Loans
and PNC may make Swing Loans as provided in Section 2.1.2 [Swing Loan Commitments] hereof during
the period between Settlement Dates. The Administrative Agent shall notify each Lender of its
Ratable Share of the total of the Revolving Credit Loans and the Swing Loans (each a “Required
Share”). On such Settlement Date, each Lender shall pay to the Administrative Agent the amount
equal to the difference between its Required Share and its Revolving Credit Loans, and the
Administrative Agent shall pay to each Lender its Ratable Share of all payments made by the
Borrower to the Administrative Agent with respect to the Revolving Credit Loans. The
Administrative Agent shall also effect settlement in accordance with the foregoing sentence on the
proposed Borrowing Dates for Revolving Credit Loans and may at its option effect settlement on any
other Business Day. These settlement procedures are established solely as a matter of
administrative convenience, and nothing contained in this Section 5.11 shall relieve the Lenders of
their obligations to fund Revolving Credit Loans on dates other than a Settlement Date pursuant to
Section 2.1.2 [Swing Loan Commitment]. The Administrative Agent may at any time at its option for
any reason whatsoever require each Lender to pay immediately to the Administrative Agent such
Lender’s Ratable Share of the outstanding Revolving Credit Loans and each Lender may at any time
require the Administrative Agent to pay immediately to such Lender its Ratable Share of all
payments made by the Borrower to the Administrative Agent with respect to the Revolving Credit
Loans.

6. REPRESENTATIONS AND WARRANTIES

     6.1 Representations and Warranties. The Borrower represents and warrants to the
Administrative Agent and each of the Lenders as follows:

          6.1.1 Organization and Qualification; Power and Authority; Compliance With Laws; Title to
Properties; Event of Default. The Borrower has full power to enter into, execute, deliver and
carry out this Agreement and the other Loan Documents, to incur the Indebtedness

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contemplated by the Loan Documents and to perform its Obligations under the Loan Documents to
which it is a party, and all such actions have been duly authorized by all necessary proceedings on
its part. The Borrower and each Subsidiary of the Borrower (i) is a corporation, partnership or
limited liability company duly organized, validly existing and in good standing under the laws of
its jurisdiction of organization, (ii) has the lawful power to own or lease its properties and to
engage in the business it presently conducts or proposes to conduct, (iii) as of the Closing Date
and as of each subsequent date that any updated Schedules are delivered pursuant to Section 6.2
[Updates to Schedule] hereof, is duly licensed or qualified and in good standing in each
jurisdiction listed on Schedule 6.1.1 and in all other jurisdictions where the property
owned or leased by it or the nature of the business transacted by it or both makes such licensing
or qualification necessary except where failure to do so could not individually or in the
aggregate, reasonably be expected to constitute a Material Adverse Change, (iv) is in compliance in
all material respects with all applicable Laws (other than Environmental Laws which are
specifically addressed in Section 6.1.14 [Environmental Matters]) in all jurisdictions in which the
Borrower or any Subsidiary of the Borrower is presently or will be doing business except where the
failure to do so could not reasonably be expected to constitute a Material Adverse Change, and (v)
has good and marketable title to or valid leasehold interest in all properties, assets and other
material rights which it purports to own or lease or which are reflected as owned or leased on its
books and records and that are necessary to the operation of its business, free and clear of all
Liens and encumbrances except Permitted Liens. No Event of Default or Potential Default exists or
is continuing.

          6.1.2 Subsidiaries and Owners; Investment Companies. Schedule 6.1.2 states as
of the Closing Date and as of each subsequent date that any updated Schedules are delivered
pursuant to Section 6.2 [Updates to Schedule] hereof (i) the name of each of the Borrower’s
Subsidiaries, its jurisdiction of organization and the amount, percentage and type of equity
interests in such Subsidiary (the “Subsidiary Equity Interests”), (ii) the name of each holder of
an equity interest in the Borrower, the amount, percentage and type of such equity interest (the
"Borrower Equity Interests”), and (iii) any options, warrants or other rights outstanding to
purchase any such equity interests referred to in clause (i) or (iii) (collectively the “Equity
Interests”). All of the Subsidiary Equity Interests that the Borrower and its Subsidiaries purport
to own are free and clear in each case of any Lien and all such Subsidiary Equity Interests have
been validly issued and are fully paid and nonassessable. Neither the Borrower nor any of the
Subsidiaries of the Borrower is an “investment company” registered or required to be registered
under the Investment Company Act of 1940 or under the “control” of an “investment company” as such
terms are defined in the Investment Company Act of 1940 and shall not become such an “investment
company” or under such “control.”

          6.1.3 Validity and Binding Effect. This Agreement and each of the other Loan
Documents (i) has been duly and validly executed and delivered by the Borrower, and (ii)
constitutes, or will constitute, legal, valid and binding obligations of the Borrower, enforceable
against the Borrower in accordance with its terms, subject in each case to applicable bankruptcy,
insolvency, reorganization or similar laws generally affecting creditor’s rights.

          6.1.4 No Conflict; Material Contracts; Consents. Neither the execution and delivery
of this Agreement or the other Loan Documents by the Borrower nor the consummation of the
transactions herein or therein contemplated or compliance with the terms and provisions

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hereof or thereof by the Borrower will conflict with, constitute a default under or result in any breach of
(i) the terms and conditions of the certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, limited liability company agreement
or other organizational documents of the Borrower or (ii) any Material Contracts or order, writ,
judgment, injunction or decree to which the Borrower or any of its Subsidiaries is a party or by
which it or any of its Subsidiaries is bound or to which it is subject, or result in the creation
or enforcement of any Lien, charge or encumbrance whatsoever upon any property (now or hereafter
acquired) of the Borrower or any of its Subsidiaries (other than Liens granted under the Loan
Documents) except where failure to do so could not reasonably be expected to result in a Material
Adverse Change. There is no default under such Material Contract and neither the Borrower, nor its
Subsidiaries is bound by any contractual obligation, or subject to any restriction in any
organization document, or any requirement of Law which could reasonably be expected to result in a
Material Adverse Change. No consent, approval, exemption, order or authorization of, or a
registration or filing with, any Official Body or any other Person is required by any Law or any
agreement in connection with the execution, delivery and carrying out of this Agreement and the
other Loan Documents. Schedule 6.1.4 accurately sets out, as of the Closing Date and as of
each subsequent date that any updated Schedules are delivered pursuant to Section 6.2 [Updates to
Schedule] hereof, a list and description of all Material Contracts.

          6.1.5 Litigation. There are no actions, suits, proceedings or investigations pending
or, to the knowledge of the Borrower, threatened against the Borrower or any Subsidiary of the
Borrower at law or in equity before any Official Body which individually or in the aggregate (i)
could reasonably be expected to result in any Material Adverse Change or (ii) purports to
materially adversely affect the legality, validity or enforceability of this Agreement or any Note
or the consummation of the transactions contemplated hereby. Neither the Borrower nor any
Subsidiaries of the Borrower is in violation of any order, writ, injunction or any decree of any
Official Body which could reasonably be expected to result in any Material Adverse Change.

          6.1.6 Financial Statements.

          (i) Historical Statements. The Borrower has delivered to the Administrative Agent
copies of its audited consolidated year-end financial statements for and as of the end of the three
(3) fiscal years ended December 31, 2008. In addition, the Borrower has delivered to the
Administrative Agent copies of its unaudited consolidated interim financial statements for the
fiscal year to date and as of the end of the fiscal quarter ended June 30, 2009 (all such annual
and interim statements being collectively referred to as the “Statements”). The Statements were
compiled from the books and records maintained by the Borrower’s management, are correct and
complete in all material respects and fairly represent the consolidated financial condition of the
Borrower and its Subsidiaries as of the respective dates thereof and the results of operations for
the fiscal periods then ended and have been prepared in accordance with GAAP consistently applied,
subject (in the case of the interim statements) to normal year-end audit adjustments.

     (ii) Accuracy of Financial Statements. Neither the Borrower nor any Subsidiary of the
Borrower has any material liabilities, contingent or otherwise, or forward or long-term commitments
that are not disclosed in the Statements or in the notes thereto, and except as disclosed therein
there are no unrealized or anticipated losses from any commitments

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of the Borrower or any Subsidiary of the Borrower which could reasonably be expected to cause a Material Adverse Change.
Since December 31, 2008, no Material Adverse Change has occurred.

          6.1.7 Margin Stock. Neither the Borrower nor any Subsidiaries of the Borrower engages
or intends to engage principally, or as one of its important activities, in the business of
extending credit for the purpose, immediately, incidentally or ultimately, of purchasing or
carrying margin stock (within the meaning of Regulation U, T or X as promulgated by the Board of
Governors of the Federal Reserve System). No part of the proceeds of any Loan has been or will be
used, immediately, incidentally or ultimately, to purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying any margin stock or which is
inconsistent with the provisions of the regulations of the Board of Governors of the Federal
Reserve System. Neither the Borrower nor any Subsidiary of the Borrower holds or intends to hold
margin stock in such amounts that more than 25% of the reasonable value of the assets of the
Borrower or any Subsidiary of the Borrower are or will be represented by margin stock.

          6.1.8 Full Disclosure. Neither this Agreement nor any other Loan Document, nor any
certificate, statement, agreement or other documents furnished to the Administrative Agent or any
Lender in connection herewith or therewith, contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained herein and
therein, in light of the circumstances under which they were made, not misleading.

          6.1.9 Taxes. All federal, state, local and other tax returns required to have been
filed with respect to the Borrower and each Subsidiary of the Borrower have been filed, and payment
or adequate provision has been made for the payment of all taxes, fees, assessments and other
governmental charges which have or may become due pursuant to said returns or to assessments
received, except to the extent that such taxes, fees, assessments and other charges are being
contested in good faith by appropriate proceedings diligently conducted and for which such reserves
or other appropriate provisions, if any, as shall be required by GAAP shall have been made.

          6.1.10 Patents, Trademarks, Copyrights, Licenses, Etc. The Borrower and each
Subsidiary of the Borrower owns or possesses all the material patents, trademarks, service marks,
trade names, copyrights, licenses, registrations, franchises, permits and rights necessary to own and operate its properties and to carry on its business as presently conducted and planned to
be conducted by the Borrower or such Subsidiary, without known possible, alleged or actual conflict
with the rights of others, except where the failure to do so could not reasonably be expected to
result in a Material Adverse Change.

          6.1.11 Employment Matters. The Borrower is in compliance with all employment
agreements, employment contracts, collective bargaining agreements and other agreements among the
Borrower and its employees (collectively, “Labor Contracts”) and all applicable federal, state and
local labor and employment Laws including those related to equal employment opportunity and
affirmative action, labor relations, minimum wage, overtime, child labor, medical insurance
continuation, worker adjustment and relocation notices, immigration controls and worker and
unemployment compensation, in each case where the failure to comply

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could reasonably be expected to constitute a Material Adverse Change. There are no outstanding grievances, arbitration awards or
appeals therefrom arising out of the Labor Contracts or current or threatened strikes, picketing,
handbilling or other work stoppages or slowdowns at facilities of the Borrower or any such
Subsidiary which in any case could reasonably be expected to constitute a Material Adverse Change.

          6.1.12 Insurance. The properties of the Borrower and each of its Subsidiaries are
insured pursuant to policies and other bonds which are valid and in full force and effect and which
provide adequate coverage from reputable and financially sound insurers in amounts sufficient to
insure the assets and risks of the Borrower and each such Subsidiary in accordance with prudent
business practice in the industry of the Borrower and such Subsidiaries.

          6.1.13 ERISA Compliance. (i) Each Plan is in compliance in all material respects with
the applicable provisions of ERISA, the Code and other federal or state Laws;

               (ii) Each Plan that is intended to qualify under Section 401(a) of the Code has received a
favorable determination letter from the IRS or an application for such a letter is currently being
processed by the IRS with respect thereto and, to the best knowledge of Borrower, nothing has
occurred which would prevent, or cause the loss of, such qualification;

               (iii) Borrower and each ERISA Affiliate have made all required contributions to each Plan
subject to Section 412 of the Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any Plan;

               (iv) No ERISA Event (other than an Exempt Reportable Event) has occurred or is reasonably
expected to occur;

               (v) No Pension Plan has any Unfunded Pension Liability. For purposes of this Agreement, the
term “Unfunded Pension Liability” means that the Pension Plan’s assets are less than 60% of its
funding target, using the funding calculation required by Section 303 of ERISA and Section 436 of
the Code;

               (vi) Neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA);

               (vii) Neither Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability (and no event has occurred which, with the giving of notice under Section 4219 of
ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a
Multiemployer Plan;

               (viii) Neither Borrower nor any ERISA Affiliate has engaged in a transaction that could be
subject to Sections 4069 or 4212(c) of ERISA; and

               (ix) The expected post-retirement benefit obligations of the Borrower and its Subsidiaries, as
determined in accordance with the applicable provisions of the Financial Accounting Standards
Board, and without regard to liabilities attributable to the Project Mine

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Subsidiaries or continued coverage mandated by Section 4980B of the Code, are less than $5,000,000.

          6.1.14 Environmental Matters. Except for those items described on Schedule
6.1.14, none of which items, individually or collectively, could be reasonably expected to
result in a Material Adverse Change:

               (i) Neither the Borrower nor its Subsidiaries has received any Environmental Complaint,
whether directed or issued to the Borrower or its Subsidiaries or relating or pertaining to
activities undertaken by any prior owner, operator or occupant of the Real Property, which could
reasonably be expected to result in a Material Adverse Change, and has no reason to believe that it
might receive an Environmental Complaint that could reasonably be expected to result in a Material
Adverse Change.

               (ii) No activity of the Borrower or its Subsidiaries at the Real Property is being conducted
in violation of any Environmental Law or Required Environmental Permit, which such activity could
reasonably be expected to result in a Material Adverse Change, and to the knowledge of the Borrower
or its Subsidiaries, no activity of any prior owner, operator or occupant of the Real Property has
caused an on-going violation of any Environmental Law, which such activity could reasonably be
expected to result in a Material Adverse Change.

               (iii) There are no Regulated Substances present on, in, under, or emanating from, or, to the
Borrower’s or its Subsidiaries’ knowledge, emanating to, the Real Property or any portion thereof
which result in Contamination, which such Contamination could reasonably be expected to result in a
Material Adverse Change.

               (iv) The Borrower and its Subsidiaries have all Required Environmental Permits, the absence of
which could reasonably be expected to result in a Material Adverse Change, and all such Required
Environmental Permits are in full force and effect.

               (v) The Borrower and its Subsidiaries have submitted to an Official Body and/or maintains, as
appropriate, all Required Environmental Notices where the failure to submit and/or maintain such
Required Environmental Notices could reasonably be expected to result in a Material Adverse Change.

               (vi) No structures, improvements, equipment, fixtures, impoundments, pits, lagoons or
aboveground or underground storage tanks located on the Real Property contain or use, except in
compliance with Environmental Laws and Required Environmental Permits, Regulated Substances or
otherwise are operated or maintained except in compliance with Environmental Laws and Required
Environmental Permits where such failure to contain, or the use of, Regulated Substances or the
noncompliance with Environmental Laws or Required Environmental Permits, could reasonably be
expected to result in a Material Adverse Change. To the knowledge of the Borrower and its
Subsidiaries, no structures, improvements, equipment, fixtures, impoundments, pits, lagoons or
aboveground or underground storage tanks of prior owners, operators or occupants of the Real
Property contained or used, except in compliance with Environmental Laws, Regulated Substances or
otherwise were operated or maintained by

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any such prior owner, operator or occupant except in compliance with Environmental Laws where such failure to contain, or the use of, Regulated Substances or the noncompliance with
Environmental Laws or Required Environmental Permits, could reasonably be expected to result in a
Material Adverse Change.

               (vii) To the knowledge of the Borrower or its Subsidiaries, no facility or site to which the
Borrower and its Subsidiaries have, either directly or indirectly by a third party, sent Regulated
Substances for storage, treatment, disposal or other management is identified in writing or
proposed in writing to be identified on any list of contaminated properties or other properties
which pursuant to Environmental Laws are the subject of an investigation, cleanup, removal,
remediation or other response action by an Official Body where such investigation, cleanup,
removal, remediation or other response by an Official Body could reasonably be expected to result
in a Material Adverse Change.

               (viii) No portion of the Real Property is identified in writing or, to the knowledge of the
Borrower or its Subsidiaries, proposed to be identified in writing on any list of contaminated
properties or other properties which pursuant to Environmental Laws are the subject of an
investigation or remediation action by an Official Body where such investigation or remediation
action by an Official Body could reasonably be expected to result in a Material Adverse Change, nor
to the knowledge of the Borrower or any such Subsidiary, is any property adjoining or in the
proximity of the Real Property so identified or proposed to be identified on any such list where
such identification or proposed identification would result in an investigation or remediation
action by an Official Body that could reasonably be expected to result in a Material Adverse
Change.

               (ix) No portion of the Real Property constitutes an Environmentally Sensitive Area where the
inclusion of such portion of the Real Property constituting an Environmentally Sensitive Area could
reasonably be expected to result in a Material Adverse Change.

               (x) No lien or other encumbrance authorized by Environmental Laws exists against the Real
Property and neither the Borrower nor its Subsidiaries has any reason to believe that such a lien
or encumbrance may be imposed where such lien or encumbrance could reasonably be expected to result
in a Material Adverse Change.

          6.1.15 Title to Property. As of the Closing Date, the Borrower and its Subsidiaries
have good and sufficient title to their respective properties which the Borrower and its
Subsidiaries own or purport to own that in the aggregate are material, including all such
properties reflected in the most recent audited balance sheet referred to in Section 6.1.6(i)
[Historical Statements] or purported to have been acquired by the Borrower or any Subsidiary after
said date (except as sold or otherwise disposed of in the ordinary course of business), in each
case free and clear of Liens prohibited by this Agreement. All leases that in the aggregate are
material in relation to the business, operation, financial condition, assets or properties of the
Borrower and its Subsidiaries, taken as a whole, are valid and subsisting and are in full force and
effect in all material respects.

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          6.1.16 Solvency. The Borrower is Solvent. After giving effect to the transactions
contemplated by the Loan Documents on the Closing Date, including all Indebtedness incurred thereby
and the payment of all fees related thereto, the Borrower will be Solvent, determined as of the
Closing Date.

          6.1.17 Coal Act; Black Lung Act. To the extent applicable, the Borrower, its
Subsidiaries and its “related persons” (as defined in the Coal Act) are in compliance in all
material respects with the Coal Act and none of the Borrower, its Subsidiaries or its related
persons has any liability under the Coal Act except with respect to premiums or other payments
required thereunder which have been paid when due and except to the extent that the liability
thereunder could not reasonably be expected to result in a Material Adverse Change. The Borrower and its Subsidiaries are in compliance in all material respects with the Black Lung
Act, and neither the Borrower nor its Subsidiaries has any liability under the Black Lung Act
except with respect to premiums, contributions or other payments required thereunder which have
been paid when due and except to the extent that the liability thereunder could not reasonably be
expected to result in a Material Adverse Change.

          6.1.18 Bonding Capacity. After giving effect to the transactions contemplated by the
Loan Documents, the Borrower and its Subsidiaries have a sufficient mine bonding capacity
reasonably necessary to conduct its operations as projected in accordance with the financial
projections of the Borrower and its Subsidiaries provided to the Administrative Agent.

          6.1.19 Permit Blockage. Neither the Borrower nor its Subsidiaries have been barred
for a period in excess of fourteen (14) consecutive days from receiving surface mining or
underground mining permits pursuant to the permit block provisions of the Surface Mining Control
and Reclamation Act, 30 U.S.C. §§ 1201 et seq., and the regulations promulgated
thereto, or any corresponding state laws or regulations.

     6.2 Updates to Schedules. Should any of the information or disclosures provided on
any of the Schedules attached hereto become outdated or incorrect in any material respect, the
Borrower shall, on the date it delivers its annual financial statements to the Administrative Agent
pursuant to Section 8.3.2 [Annual Financial Statements] hereof, provide the Administrative Agent in
writing with such revisions or updates to such Schedule as may be necessary or appropriate to
update or correct same; provided, however, that no Schedule shall be deemed to have
been amended, modified or superseded by any such correction or update, nor shall any breach of
warranty or representation resulting from the inaccuracy or incompleteness of any such Schedule be
deemed to have been cured thereby, unless and until the Required Lenders, in their sole and
absolute discretion, shall have accepted in writing such revisions or updates to such Schedule.

7. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

     The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters of
Credit hereunder is subject to the performance by the Borrower of its Obligations to be performed
hereunder at or prior to the making of any such Loans or issuance of such Letters of Credit and to
the satisfaction of the following further conditions:

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     7.1 First Loans and Letters of Credit.

          7.1.1 Deliveries. On the Closing Date, the Administrative Agent shall have received
each of the following in form and substance satisfactory to the Administrative Agent:

          (i) A certificate of the Borrower signed by an Authorized Officer, dated the Closing Date
stating that the Borrower is in compliance with each of its representations, warranties, covenants
and conditions hereunder, no Event of Default or Potential Default exists, no litigation which is
material adverse to the Borrower and its Subsidiaries, taken as a whole, exists and no Material
Adverse Change has occurred since the date of the last audited financial statements of the Borrower
delivered to the Administrative Agent;

          (ii) A certificate dated the Closing Date and signed by the Secretary or an Assistant
Secretary of the Borrower, certifying as appropriate as to: (a) all action taken by the Borrower in
connection with this Agreement and the other Loan Documents; (b) the names of the Authorized Officers authorized to
sign the Loan Documents and their true signatures; and (c) copies of its organizational documents
as in effect on the Closing Date certified by the appropriate state official where such documents
are filed in a state office together with certificates from the appropriate state officials as to
the continued existence and good standing of the Borrower in each state where organized or
qualified to do business;

          (iii) This Agreement and each of the other Loan Documents signed by an Authorized Officer;

          (iv) A written opinion of counsel for the Borrower, dated the Closing Date and as to the
matters set forth in Schedule 7.1.1;

          (v) Evidence that adequate insurance required to be maintained under this Agreement is in full
force and effect in form and substance satisfactory to the Administrative Agent and its counsel;

          (vi) The Borrower shall have terminated the commitments, and paid in full all Indebtedness,
interest, fees and other amounts outstanding, under the $130,000,000 Credit Agreement dated as of
March 8, 2005, among the Borrower, the lenders parties thereto and Citibank, N.A., as agent for
such lenders, and each of the lenders that is a party to such Credit Agreement hereby waives, upon
execution of this Agreement, the three Business Days notice required by Section 2.04 of such Credit
Agreement relating to the termination of commitments thereunder;

          (vii) A Lien search in acceptable scope and with acceptable results;

          (viii) All material consents, approvals and licenses required to effectuate the transactions
contemplated hereby have been obtained;

          (ix) The projected financial projections (including balance sheets, statements of operations
and cash flows) of the Borrower for the 2009 through 2012 fiscal years;

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          (x) Evidence that after giving effect to the transactions contemplated by the Loan Documents,
the Borrower has a sufficient mine bonding capacity to conduct its operations as projected in
accordance with the financial projections of the Borrower and its Subsidiaries provided to the
Administrative Agent; and

          (xi) Such other documents in connection with such transactions as the Administrative Agent or
said counsel may reasonably request.

          7.1.2 Payment of Fees. The Borrower shall have paid all fees payable on or before the
Closing Date.

     7.2 Each Loan or Letter of Credit. At the time of making any Loans or issuing,
extending or increasing any Letters of Credit and after giving effect to the proposed extensions of
credit: the representations, warranties and covenants of the Borrower subject to materiality or to
a Material Adverse Change clause shall then be true and correct; all other representations,
warranties and covenants of the Borrower shall then be true and correct in all material respects;
no Event of Default or Potential Default shall have occurred and be continuing; the making of the
Loans or issuance, extension or increase of such Letter of Credit shall not contravene any Law
applicable to the Borrower or any Subsidiary of the Borrower; and the Borrower shall have delivered
to the Administrative Agent a duly executed and completed Loan Request or to the Issuing Lender an
application for a Letter of Credit, as the case may be to the extent required pursuant to this
Agreement.

8. COVENANTS

     The Borrower covenants and agrees that until Payment In Full, the Borrower shall comply at all
times with the following covenants:

     8.1 Affirmative Covenants. 

          8.1.1 Preservation of Existence, Etc. The Borrower shall, and shall cause (or with
respect to any Project Mining Subsidiary, will use its best efforts to cause) each of its
Subsidiaries to, maintain its legal existence as a corporation, limited partnership or limited
liability company and its license or qualification and good standing in each jurisdiction in which
its ownership or lease of property or the nature of its business makes such license or
qualification necessary, except where the failure to do so could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Change or as otherwise expressly
permitted in Section 8.2.6 [Liquidations, Mergers, Etc.] and provided further that
neither the Borrower nor any of its Subsidiaries shall be required to preserve any right or
franchise if the Board of Directors of the Borrower or such Subsidiary shall determine that the
preservation thereof is no longer desirable in the conduct of the business of the Borrower or such
Subsidiary, as the case may be, and that the loss thereof is not disadvantageous in any material
respect to the Borrower, such Subsidiary or the Lenders.

          8.1.2 Payment of Liabilities, Including Taxes, Etc. The Borrower shall, and shall
cause each of its Subsidiaries (other than the Project Mining Subsidiaries) to, duly pay and
discharge all liabilities to which it is subject or which are asserted against it, promptly as and
when the same shall become due and payable, including all taxes, assessments and governmental

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charges upon it or any of its properties, assets, income or profits, prior to the date on which
penalties attach thereto, except to the extent that the failure to do so could not reasonably be
expected to result in a Material Adverse Change or to the extent that such liabilities, including
taxes, assessments or charges, are being contested in good faith and by appropriate and lawful
proceedings diligently conducted and for which such reserve or other appropriate provisions, if
any, as shall be required by GAAP shall have been made. The Borrower will cause each Project
Mining Subsidiary to pay and discharge at or before the due date thereof, all of its income tax
liabilities and obligations under the Tax Sharing Agreement.

          8.1.3 Maintenance of Insurance. The Borrower shall, and shall cause each of its
Subsidiaries to, insure its properties and assets against loss or damage by fire and such other
insurable hazards as such assets are commonly insured (including fire, extended coverage, property
damage, workers’ compensation, public liability and business interruption insurance) and against
other risks (including errors and omissions) in such amounts as similar properties and assets are
insured by prudent companies in similar circumstances carrying on similar businesses, and with
reputable and financially sound insurers, including self-insurance to the extent customary.

          8.1.4 Maintenance of Properties and Leases. The Borrower shall, and shall cause (or
with respect to any Project Mining Subsidiary, will use its best efforts to cause) each of its
Subsidiaries to, maintain in good repair, working order and condition (ordinary wear and tear
excepted) in accordance with the general practice of other businesses of similar character and size, all of those properties useful or necessary to its business, and from time to time, the
Borrower will make or cause to be made all appropriate repairs, renewals or replacements thereof.

          8.1.5 Visitation Rights. The Borrower shall, and shall cause each of its Subsidiaries
to, permit any of the officers or authorized employees or representatives of the Administrative
Agent or any of the Lenders to visit and inspect any of its properties and to examine and make
excerpts from its books and records and discuss its business affairs, finances and accounts with
its officers, all in such detail and at such times and as often as any of the Lenders may
reasonably request, provided that each Lender shall provide the Borrower and the
Administrative Agent with reasonable notice prior to any visit or inspection. In the event any
Lender desires to conduct an audit of the Borrower, such Lender shall make a reasonable effort to
conduct such audit contemporaneously with any audit to be performed by the Administrative Agent.

          8.1.6 Keeping of Records and Books of Account. The Borrower shall, and shall cause
each Subsidiary of the Borrower to, maintain and keep proper books of record and account which
enable the Borrower and its Subsidiaries to issue financial statements in accordance with GAAP and
as otherwise required by applicable Laws of any Official Body having jurisdiction over the Borrower
or any Subsidiary of the Borrower, and in which full, true and correct entries shall be made in all
material respects of all its dealings and business and financial affairs.

          8.1.7 Compliance with Laws; Use of Proceeds. The Borrower shall, and shall cause each
of its Subsidiaries to, comply with all applicable Laws, including all Environmental

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Laws, in all respects; provided that it shall not be deemed to be a violation of this Section 8.1.7 if
any failure to comply with any Law would not result in fines, penalties, remediation costs, other
similar liabilities or injunctive relief which in the aggregate could reasonably be expected to
constitute a Material Adverse Change. The Borrower will use the Letters of Credit and the proceeds
of the Loans only in accordance with Section 2.8 [Use of Proceeds] and as permitted by applicable
Law.

          8.1.8 Anti-Terrorism Laws. Neither the Borrower nor its Subsidiaries is or shall be
(i) a Person with whom any Lender is restricted from doing business under Executive Order No. 13224
or any other Anti-Terrorism Law, (ii) engaged in any business involved in making or receiving any
contribution of funds, goods or services to or for the benefit of such a Person or in any
transaction that evades or avoids, or has the purpose of evading or avoiding, the prohibitions set
forth in any Anti-Terrorism Law, or (iii) otherwise in violation of any Anti-Terrorism Law. The
Borrower shall provide to the Lenders any certifications or information that a Lender requests to
confirm compliance by the Borrower and its Subsidiaries with Anti-Terrorism Laws.

          8.1.9 Maintenance of Material Contracts. The Borrower and its Subsidiaries shall
maintain and materially comply with the terms and conditions of all Material Contracts, the
nonperformance of which could reasonably be expected to result in a Material Adverse Change.

          8.1.10 Maintenance of Licenses, Etc. The Borrower and its Subsidiaries shall maintain
in full force and effect all licenses, franchises, permits and other authorizations necessary for
the ownership and operation of its properties and business if the failure so to maintain the same
could reasonably be expected to constitute a Material Adverse Change.

          8.1.11 Maintenance of Permits. The Borrower and its Subsidiaries shall maintain all
Required Mining Permits in full force and effect in accordance with their terms except where the
failure to do so could not reasonably be expected to result in a Material Adverse Change.

     8.2 Negative Covenants.

          8.2.1 Indebtedness.

          (i) The Borrower shall not at any time create, incur, assume or suffer to exist any
Indebtedness, except:

               (A) Indebtedness under the Loan Documents;

               (B) Existing Indebtedness as set forth on Schedule 8.2.1 (including any extensions or renewals
thereof); provided there is no increase in the amount thereof;

               (C) Indebtedness secured by Purchase Money Security Interests and capitalized leases;

               (D) Indebtedness secured by Liens permitted under Section 8.2.2 [Liens, Etc.];

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               (E) Indebtedness consisting of the Senior Notes (and any replacements thereof);

               (F) other unsecured Indebtedness of the Borrower not to exceed $25,000,000 in the aggregate at
any one time; and

               (G) Any (i) Lender Provided Interest Rate Hedge, (ii) other Interest Rate Hedge approved by
the Administrative Agent or (iii) Indebtedness under any Other Lender Provided Financial Services
Product.

          (ii) The Borrower shall not permit any of its Consolidated Subsidiaries to, at any time
create, incur, assume or suffer to exist any Indebtedness, except:

               (A) Existing Indebtedness as set forth on Schedule 8.2.1 (including any extensions or renewals
thereof); provided there is no increase in the amount thereof;

               (B) Indebtedness owing to the Borrower or to a Wholly-Owned Consolidated Subsidiary; and

               (C) Indebtedness secured by Liens permitted under Section 8.2.2 [Liens, Etc.].

          8.2.2 Liens, Etc. The Borrower shall not, and shall not permit any of its
Consolidated Subsidiaries to, at any time create, incur, assume or suffer to exist any Lien on any
of its property or assets, tangible or intangible, now owned or hereafter acquired, or agree or
become liable to do so or assign, or permit any of its Consolidated Subsidiaries to assign, any
right to receive income (unless it makes, or causes to be made, effective provisions whereby the
Notes will be equally and ratably secured with any and all other obligations thereby secured, such
security to be pursuant to a written agreement satisfactory to the Required Lenders), other than:

          (i) Permitted Liens;

          (ii) options or rights granted to the customers of any Project Mining Subsidiary to acquire
the equity interests of such Project Mining Subsidiary in connection with the mining or lignite
sales agreement relating to such Project Mining Subsidiary;

          (iii) restrictions on the transferability of the equity interests and certain assets of any
Project Mining Subsidiary without the consent of the customers of such Project Mining Subsidiary;

          (iv) options or rights granted to (A) the customer of any Project Mining Subsidiary to acquire
the equity interests of such Project Mining Subsidiary and/or certain assets of such Project Mining
Subsidiary and (B) the Borrower to transfer to the customer of any Project Mining Subsidiary the
equity interests and/or certain assets of such Project Mining Subsidiary, in each case in
connection with the termination, if any, of the mining or lignite sales agreement relating to such
Project Mining Subsidiary;

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          (v) rights of any customer of the Borrower or any Subsidiary to acquire, or rights of the
Borrower or such Subsidiary to transfer to such customer, certain assets or other property of the
Borrower (other than property that constitutes the equity interests of a Subsidiary) or such
Subsidiary and used solely in the conduct of the business of the Borrower or such Subsidiary with
such customer, to the extent that such rights are exercisable in connection with a mining agreement
or sales agreement;

          (vi) any interest or title of a lessor under any lease entered into by the Borrower or any
other Subsidiary in the ordinary course of its business and covering only the assets so leased;

          (vii) legal or equitable encumbrances deemed to exist by reason of the existence of any
litigation or other legal proceeding or arising out of a judgment or award with respect to which an
appeal is being prosecuted, to the extent the amount thereof (in excess of applicable insurance
coverage) does not exceed, in the aggregate, $10,000,000, but only so long as such legal or
equitable encumbrances (A) are being actively contested in good faith by appropriate proceedings or
(B) are paid or otherwise discharged within ten (10) days after an Authorized Officer obtains
knowledge thereof;

          (viii) environmental Liens with respect to liabilities in an aggregate amount (in excess of
applicable insurance coverage) not exceeding $1,000,000 (A) to the extent such liabilities are not
yet due or which are being contested in good faith by appropriate proceedings and with respect to
which appropriate reserves have been established or (B) which are released or otherwise discharged
within ten (10) days after an Authorized Officer obtains knowledge thereof; and

          (ix) Liens arising pursuant to Section 412(n) of the Internal Revenue Code or ERISA Section
4068(a) with respect to liabilities in an aggregate amount not exceeding $1,000,000 if (A) the
defaulted payments to which such Liens relate are made within ten days after an Authorized Officer
obtains knowledge of such defaulted payments and such Liens are released as promptly as practicable
thereafter or (B) the obligation to make such payments is being contested in good faith by
appropriate proceedings and with respect to which appropriate reserves have been established.

          8.2.3 Guaranties. The Borrower shall not, and shall not permit any of its Subsidiaries
to, at any time, directly or indirectly, become or be liable in respect of any Guaranty, or assume,
guarantee, become surety for, endorse or otherwise agree to become or remain directly or
contingently liable upon or with respect to any obligation or liability of any other Person, except
for (i) Guaranties issued on behalf of Consolidated Subsidiaries other than Guaranties of
Indebtedness, and (ii) Guaranties of operating performance of Project Mining Subsidiaries.

          8.2.4 Loans and Investments. The Borrower shall not, and shall not permit any of its
Subsidiaries to, at any time make or suffer to remain outstanding any loan or advance to, or
purchase, acquire or own any stock, bonds, notes or securities of, or any partnership interest
(whether general or limited) or limited liability company interest in, or any other

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investment or interest in, or make any capital contribution to, any other Person, or agree,
become or remain liable to do any of the foregoing, except:

          (i) trade credit extended on usual and customary terms in the ordinary course of business;

          (ii) advances to employees to meet expenses incurred by such employees in the ordinary course
of business not to exceed $1,000,000 at any time outstanding;

          (iii) Permitted Investments;

          (iv) Indebtedness of the Borrower or its Subsidiaries to the Borrower or its Subsidiaries
which is permitted under this Agreement;

          (v) loans and advances to NACCO made by the Borrower in the ordinary course of business (which
loans and advances will be used by NACCO for general corporate purposes); provided that: (1) the
Debt/EBITDA Ratio as of the last day of the fiscal quarter ending immediately prior to the date
such loan or advance is made, giving pro forma effect to such loan or advance as if it had been
made on the last day of such fiscal quarter, does not exceed 2.75 to 1.00 and (2) the Unused
Revolving Credit Commitment immediately after giving effect to such loan or advance is greater than
or equal to $15,000,000;

          (vi) investments made with the proceeds of subordinated debt issued to NACCO and/or equity
contributions from NACCO;

          (vii) investments permitted under Sections 8.2.1 [Indebtedness], 8.2.5 [Dividends and Related
Distributions] or 8.2.12 [Issuance of Stock];

          (viii) investments in Joint Ventures not to exceed $15,000,000 per each Joint Venture and
$45,000,000 in the aggregate;

          (ix) loans, advances and investments in the Borrower or its Consolidated Subsidiaries; and

          (x) other investments or acquisitions of the Borrower or any of its Consolidated Subsidiaries;
provided that with respect to investments made under this clause, (A) immediately before
and after giving effect thereto, no Event of Default shall have occurred and be continuing or would
result therefrom, (B) any company or business acquired or invested in pursuant to this clause shall
be in the same line of business as the Borrower or any of its Subsidiaries or shall be in a related
natural resource business arising from or connected to the assets or expertise of the Borrower or
any of its Subsidiaries, (C) immediately after giving effect to such investment pursuant to this
clause, the Debt/EBITDA Ratio as of the last day of the fiscal quarter ending immediately prior to
the date such investment is made, giving pro forma effect to such investment as if it had been made
on the last day of such fiscal quarter, does not exceed 2.75 to 1.00, as evidenced by a certificate
of a Responsible Officer of the Borrower delivered to the Lenders demonstrating such compliance and
(D) the Unused Revolving Credit Commitment immediately after giving effect to such Restricted
Payment is greater than or equal to $15,000,000.

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          8.2.5 Dividends and Related Distributions. The Borrower shall not, and shall not
permit any of its Subsidiaries to, make or pay, or agree to become or remain liable to make or pay,
any dividend or other distribution of any nature (whether in cash, property, securities or
otherwise) on account of or in respect of its shares of equity interests, partnership interests or
limited liability company interests on account of the purchase, redemption, retirement or
acquisition of its shares of equity interests (or warrants, options or rights therefor),
partnership interests or limited liability company interests (collectively, the “Restricted
Payments”), except:

          (i) Restricted Payments payable by any Subsidiary of the Borrower to the Borrower;

          (ii) Restricted Payments payable by the Borrower and its Subsidiaries provided that such
Restricted Payments are made solely in the common stock of such Person making the Restricted
Payment;

          (iii) Restricted Payments payable by the Borrower provided that: (1) the Debt/EBITDA Ratio as
of the last day of the fiscal quarter ending immediately prior to such Restricted Payment, giving
pro forma effect to such Restricted Payment as it if it had occurred on the last day of such fiscal
quarter, is less than or equal to 2.75 to 1.0; (2) the Unused Revolving Credit Commitment
immediately after giving effect to such Restricted Payment is greater than or equal to $15,000,000;
and (3) no Event of Default shall have occurred and be continuing at the time of such proposed
Restricted Payment or would result therefrom; and

          (iv) Restricted Payments payable by the Borrower to NACCO (i) in respect of the Borrower’s
allocable share of NACCO’s overhead and other selling, general and administrative expenses
(including legal, accounting, other professional fees and costs) incurred in the ordinary course of
business, (ii) in respect of liabilities of NACCO up to, but not exceeding $5,000,000 for any
twelve-month period, arising from, in connection with or relating to the closing of certain mining
operations of Bellaire Corporation, (iii) in respect of amounts due to NACCO under the Tax Sharing
Agreement and (iv) in respect of state taxes paid by NACCO on behalf of the Borrower and its
Subsidiaries.

          8.2.6 Liquidations, Mergers, Consolidations, Acquisitions. The Borrower shall not
dissolve, liquidate or wind-up its affairs, and except as permitted pursuant to Section 8.2.4
[Loans and Investments], the Borrower shall not, and shall not permit any of its Subsidiaries to
become a party to any merger or consolidation, or acquire by purchase, lease or otherwise all or
substantially all of the assets or equity interests of any other Person; provided that (i)
any Subsidiary of the Borrower may merge or consolidate with or into any other Wholly-Owned
Subsidiary of the Borrower, (ii) any Project Mining Subsidiary may merge or consolidate with or
into its customers, (iii) any Subsidiary may merge or consolidate with or into any Person if such
Subsidiary is the surviving entity and (iv) any Subsidiary of the Borrower may merge into the
Borrower, provided, in each case, that no Event of Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.

          8.2.7 Dispositions of Assets or Subsidiaries. The Borrower shall not, and shall not
permit any of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise transfer or
dispose of, voluntarily or involuntarily, any substantial part (as defined below) of its properties

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or assets, tangible or intangible (including sale, assignment, discount or other disposition
of accounts, contract rights, chattel paper, equipment or general intangibles with or without
recourse or of equity interests, shares of beneficial interest, partnership interests or limited
liability company interests of a Subsidiary of the Borrower or its Subsidiaries), except:

          (i) transactions involving the sale of inventory in the ordinary course of business;

          (ii) any sale, transfer or lease of assets in the ordinary course of business which are no
longer necessary or required in the conduct of the Borrower’s or such Subsidiary’s business;

          (iii) any sale, transfer or lease of assets by any Wholly-Owned Subsidiary of the Borrower or
its Subsidiaries to the Borrower or its Subsidiaries;

          (iv) any sale, transfer or lease of assets owned by Red River Mining Company or any of its
Subsidiaries as of the date of this Agreement;

          (v) any sale, transfer or lease of assets by a Project Mining Subsidiary to its customers,
provided that no Event of Default shall have occurred and be continuing at the time of such
proposed transaction or would result therefrom; and

          (vi) any sale, transfer or lease of assets in the ordinary course of business which are
replaced by substitute assets acquired or leased in connection with any capital expenditures or
capitalized leases.

     Notwithstanding the above, the Borrower or any Subsidiary may sell, lease or otherwise dispose
of assets constituting a substantial part of the assets of the Borrower and its Subsidiaries if (a)
such assets are sold for cash in an arm’s-length transaction for fair market value to a Person
other than an Affiliate; (b) at such time and after giving effect thereto, no Event of Default
shall have occurred and be continuing; (c) the Debt/EBITDA Ratio as of the last day of the fiscal
quarter ending immediately prior to such sale, lease or disposition, giving pro forma effect to
such sale, lease or disposition as it if it had occurred on the last day of such fiscal quarter, is
less than or equal to 2.75 to 1.0; (d) the Unused Revolving Credit Commitment immediately after
giving effect to such sale, lease or disposition is greater than or equal to $15,000,000; and (e)
an amount equal to the Net Proceeds received from such sale, lease or other disposition (but
excluding any portion of the Net Proceeds which are attributable to assets which constitute less
than a substantial part of the assets of the Borrower and its Subsidiaries) shall be used, in any
combination:

          (1) within two years of such sale, lease or disposition to acquire productive assets used or
useful in carrying on the business of the Borrower and its Subsidiaries and having a value at least
equal to the value of such assets sold, leased or otherwise disposed of; or

          (2) within two years of such sale, lease or disposition to prepay or retire consolidated
Indebtedness of the Borrower and/or its Subsidiaries.

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     As used in this Section, a sale, lease or other disposition of assets shall be deemed to be a
“substantial part” of the assets of the Borrower and its Subsidiaries if the book value of such
assets, when added to the book value of all other assets sold, leased or otherwise disposed of by
the Borrower and its Subsidiaries during the same fiscal year, exceeds 15% of the book value of
Consolidated Total Assets, determined as of the end of the fiscal year immediately preceding such
sale, lease or other disposition; provided that there shall be excluded from any
determination of a “substantial part” any (i) sale or disposition of assets in the ordinary course
of business of the Borrower and its Subsidiaries, and (ii) any transfer of assets from the Borrower
to any Wholly-Owned Subsidiary or from any Subsidiary to the Borrower or a Wholly-Owned Subsidiary.

          8.2.8 Affiliate Transactions. The Borrower will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or group of related transactions
(including without limitation the purchase, lease, sale or exchange of properties of any kind or
the rendering of any service) with any Affiliate (other than the Borrower or another Subsidiary),
except upon fair and reasonable terms no less favorable to the Borrower or such Subsidiary than
would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate;
provided that nothing herein shall prohibit the Borrower from making Restricted Payments to NACCO
(i) in respect of the Borrower’s allocable share of NACCO’s overhead and other selling, general and
administrative expenses (including legal, accounting and other professional fees and costs)
incurred in the ordinary course of business, (ii) in respect of liabilities of NACCO up to, but not
exceeding, $5,000,000 for any twelve-month period, arising from, in connection with, or relating to
the closing of certain mining operations of Bellaire Corporation, (iii) in respect of amounts due
to NACCO under the Tax Sharing Agreement, (iv) in respect of state taxes paid by NACCO on behalf of
the Borrower and its Subsidiaries and (v) in respect of dividends on the common stock of the
Borrower to the extent payment of such dividends is permitted pursuant to Section 8.2.5 [Dividends
and Related Distributions].

          8.2.9 Subsidiaries, Partnerships and Joint Ventures. The Borrower shall not, and
shall not permit any of its Consolidated Subsidiaries to own or create directly or indirectly any
Subsidiaries other than (i) Consolidated Subsidiaries; (ii) Project Mining Subsidiaries, and (iii)
Joint Ventures permitted under this Agreement.

          8.2.10 Continuation of or Change in Business. The Borrower shall not, and shall not
permit any of its Subsidiaries to, engage in any business other than those businesses in which the
Borrower and its Subsidiaries engage in as of the Closing Date, substantially as conducted and
operated by the Borrower or such Subsidiary during the present fiscal year, and the Borrower or
such Subsidiary shall not permit any material change in such business.

          8.2.11 Fiscal Year. The Borrower shall not, and shall not permit any Subsidiary of
the Borrower to, change its fiscal year from the twelve-month period beginning January 1 and ending
December 31.

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          8.2.12 Issuance of Stock.

          (i) The Borrower shall not permit any of its Subsidiaries to issue or sell any additional
shares of their equity interests or any options, warrants or other rights in respect thereof to any
Person other than the Borrower or a Wholly-Owned Subsidiary, except for the purpose of qualifying
directors, or except in satisfaction of the validly pre-existing preemptive or contractual rights
of minority shareholders in connection with the simultaneous issuance of stock or other equity
interests to the Borrower and/or a Subsidiary whereby the Borrower and/or such Subsidiary maintain
their same proportionate interest in such Subsidiary; and

          (ii) The Borrower will not sell, transfer or otherwise dispose of any shares of stock or other
equity interests of any Subsidiary (except to qualifying directors), and will not permit any
Subsidiary to sell, transfer or otherwise dispose of (except to the Borrower or a Wholly-Owned
Subsidiary) any shares of stock or other equity interests of any other Subsidiary, unless (A) the
consideration for such sale, transfer or other disposition is either cash or shares of stock, (B)
such sale, transfer or other disposition is made to a Person (other than an Affiliate), and
consists of the Borrower’s entire investment in such Subsidiary and (C) such sale, transfer or
other disposition can be made within the limitations of Section 8.2.7 [Disposition of Assets or
Subsidiaries.

          8.2.13 Changes in Organizational Documents. The Borrower shall not, and shall not
permit any of its Consolidated Subsidiaries to, amend in any respect its certificate of
incorporation (including any provisions or resolutions relating to equity interests ), by-laws,
certificate of limited partnership, partnership agreement, certificate of formation, limited
liability company agreement or other organizational documents without providing at least thirty
(30) calendar days’ prior written notice to the Administrative Agent and the Lenders and, in the
event such change would be adverse to the Lenders as determined by the Administrative Agent in its
sole discretion, obtaining the prior written consent of the Required Lenders.

          8.2.14 Negative Pledges. The Borrower covenants and agrees that it shall not, and
shall not permit any of its Consolidated Subsidiaries to, enter into or permit to exist any
agreement (other than this Agreement and the Senior Note Purchase Agreements) with any Person
which, in any manner, whether directly or contingently, prohibits, restricts or limits the right of
the Borrower or any of the Consolidated Subsidiaries from granting any Liens to the Administrative
Agent or the Lenders except as permitted by Section 8.2.2 [Liens, Etc.] of this Agreement or the
ability to make Restricted Payments to the Borrower or any of its Subsidiaries or otherwise
transfer property to or invest in the Borrower or any of its Subsidiaries.

          8.2.15 Amendments to Senior Note Purchase Agreements. The Borrower shall not supplement,
modify, amend, or restate in any material way any of the Senior Note Purchase Agreements, from time
to time without providing at least fifteen (15) calendar days’ prior written notice to the
Administrative Agent and the Lenders and, in the event any supplement, modification, amendment or
restatement would make any covenant, default, event of default or other material term under any of
the Senior Note Purchase Agreements more restrictive, in any material respect, than the covenants,
defaults, events of default or other material terms of such Indebtedness, as in effect on the
Closing Date, as reasonably determined by the Administrative

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Agent in its sole discretion, shall not make any such supplement, modification, amendment or
restatement without obtaining the prior written consent of the Required Lenders.

          8.2.16 Maximum Debt/EBITDA Ratio. The Borrower shall not at any time permit the
Debt/EBITDA Ratio to be greater than 3.25 to 1.0.

          8.2.17 Minimum Interest Coverage Ratio. The Borrower shall not permit the
Consolidated Interest Coverage Ratio to be less than 4.0 to 1.0.

     8.3 Reporting Requirements. The Borrower will furnish or cause to be furnished to the
Administrative Agent and each of the Lenders:

          8.3.1 Quarterly Financial Statements. As soon as available and in any event within
forty-five (45) calendar days after the end of each of the first three fiscal quarters in each
fiscal year, financial statements of the Borrower and its Consolidated Subsidiaries, consisting of
a consolidated and consolidating balance sheet as of the end of such fiscal quarter and related
consolidated and consolidating statements of income, stockholders’ equity and cash flows for the
fiscal quarter then ended and the fiscal year through that date, all in reasonable detail and
certified (subject to normal year-end audit adjustments) by the Chief Executive Officer, President,
Chief Financial Officer or Treasurer of the Borrower as having been prepared in accordance with
GAAP, consistently applied, and setting forth in comparative form the respective financial
statements for the corresponding date and period in the previous fiscal year.

          8.3.2 Annual Financial Statements. As soon as available and in any event within
ninety (90) days after the end of each fiscal year of the Borrower, financial statements of the
Borrower and its Consolidated Subsidiaries consisting of a consolidated and consolidating balance
sheet as of the end of such fiscal year, and related consolidated and consolidating statements of
income, stockholders’ equity and cash flows for the fiscal year then ended, all in reasonable
detail and setting forth in comparative form the financial statements as of the end of and for the
preceding fiscal year, and certified by independent certified public accountants of nationally
recognized standing . The certificate or report of accountants shall be reasonably acceptable to
the Required Lenders.

          8.3.3 Certificate of the Borrower. Concurrently with the financial statements of the
Borrower furnished to the Administrative Agent and to the Lenders pursuant to Sections 8.3.1
[Quarterly Financial Statements] and 8.3.2 [Annual Financial Statements], a certificate (each a
“Compliance Certificate”) of the Borrower signed by the Chief Executive Officer, President, Chief
Financial Officer or Treasurer of the Borrower, in the form of Exhibit 8.3.3.

          8.3.4 Notices.

               8.3.4.1 Default. Promptly after any officer of the Borrower has learned of the
occurrence of an Event of Default or Potential Default, a certificate signed by an Authorized
Officer setting forth the details of such Event of Default or Potential Default and the action
which the Borrower proposes to take with respect thereto.

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               8.3.4.2 Litigation. Promptly after the commencement thereof, notice of all actions,
suits, proceedings or investigations before or by any Official Body or any other
Person against the Borrower or any Subsidiary of the Borrower that involve a claim or series
of claims in excess of $10,000,000 and not covered by insurance or which if adversely determined
could reasonably be expected to constitute a Material Adverse Change.

               8.3.4.3 Organizational Documents. Within the time limits set forth in Section 8.2.13
[Changes in Organizational Documents], any amendment to the organizational documents of the
Borrower.

               8.3.4.4 Erroneous Financial Information. Promptly following the conclusion by the
Borrower or upon the advice of its accountants that any previously issued financial statement,
audit report or interim review is no longer materially correct and should no longer be relied upon
or that disclosure should be made or action should be taken to prevent future reliance.

               8.3.4.5 ERISA Event. Promptly, and in any event within thirty (30) days after an
Authorized Officer of the Borrower has knowledge or reason to know that an ERISA Event (other than
an Exempt Reportable Event) has occurred, notice of such ERISA Event.

               8.3.4.6 Other Reports. Promptly upon their becoming available to the Borrower:

          (i) Annual Budget. The annual budget, forecasts and board approved projections of the
Borrower, to be supplied not later than sixty (60) days after the commencement of the fiscal year
to which any of the foregoing may be applicable,

          (ii) SEC Reports; Shareholder Communications. Reports, including Forms 10-K, 10-Q and
8-K, registration statements and prospectuses and other shareholder communications, filed by the
Borrower with the Securities and Exchange Commission and copies of all reports, if any, that the
Borrower sends to any of its security holders other than NACCO, and

          (iii) Other Information. Such other reports and information as any of the Lenders may
from time to time reasonably request.

9. DEFAULT

     9.1 Events of Default. An Event of Default shall mean the occurrence or existence of
any one or more of the following events or conditions (whatever the reason therefor and whether
voluntary, involuntary or effected by operation of Law):

          9.1.1 Payments Under Loan Documents. The Borrower shall fail to pay (i) when due any
principal of any Loan (including scheduled installments, mandatory prepayments or the payment due
at maturity), Reimbursement Obligation or Letter of Credit or Obligation, or (ii) within three (3)
Business Days of when due any interest on any Loan, Reimbursement Obligation or Letter of Credit
Obligation or any other amount owing hereunder or under the

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other Loan Documents on the date on
which such principal, interest or other amount becomes due in accordance with the terms hereof or
thereof;

          9.1.2 Breach of Warranty. Any representation or warranty made at any time by the
Borrower herein or in any other Loan Document, or in any certificate, other instrument or statement
furnished pursuant to the provisions hereof or thereof, shall prove to have been false or
misleading in any material respect as of the time it was made or furnished;

          9.1.3 Breach of Negative Covenants or Visitation Rights. The Borrower shall default
in the observance or performance of any covenant contained in Section 8.1.5 [Visitation Rights] or
Section 8.2 [Negative Covenants];

          9.1.4 Breach of Other Covenants. The Borrower shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other Loan Document and
such default shall continue unremedied for a period of thirty (30) Business Days;

          9.1.5 Defaults in Other Agreements or Indebtedness. A default or event of default
shall occur at any time under the terms of any other agreement involving borrowed money or the
extension of credit or any other Indebtedness under which the Borrower or any Subsidiary of the
Borrower may be obligated as a borrower or guarantor in excess of $10,000,000 in the aggregate
(other than Non-Recourse Indebtedness or the Indebtedness of any Project Mining Subsidiary), and
such breach, default or event of default consists of the failure to pay (beyond any period of grace
permitted with respect thereto, whether waived or not) any Indebtedness when due (whether at stated
maturity, by acceleration or otherwise) or if such breach or default permits or causes the
acceleration of any Indebtedness (whether or not such right shall have been waived) or the
termination of any commitment to lend or cause such Indebtedness to be repurchased, prepaid,
defeased, or redeemed prior to its stated maturity date;

          9.1.6 Final Judgments or Orders. Any final judgments or orders for the payment of
money in excess of $10,000,000 in the aggregate and not covered by insurance shall be entered
against the Borrower by a court having jurisdiction in the premises, which judgment is not
discharged, vacated, bonded or stayed pending appeal within a period of thirty (30) days from the
date of entry;

          9.1.7 Loan Document Unenforceable. Any of the Loan Documents shall cease to be legal,
valid and binding agreements enforceable against the party executing the same or such party’s
successors and assigns (as permitted under the Loan Documents) in accordance with the respective
terms thereof or shall in any way be terminated (except in accordance with its terms) or become or
be declared ineffective or inoperative or shall in any way be challenged or contested by the
Borrower;

          9.1.8 [Intentionally Omitted]

          9.1.9 Events Relating to Plans and Benefit Arrangements. (i) An ERISA Event (other
than an Exempt Reportable Event) occurs with respect to a Pension Plan or Multiemployer Plan which
has resulted or could reasonably be expected to result in liability of Borrower under Title IV of
ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an

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aggregate amount in excess of $10,000,000, or (ii) Borrower or any ERISA Affiliate fails to pay when due, after the expiration of
any applicable grace period, any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in
an aggregate amount in excess of $10,000,000;

          9.1.10 Change in Control. A Change in Control shall have occurred.

          9.1.11 Relief Proceedings. (i) A Relief Proceeding shall have been instituted against
the Borrower or any Subsidiary of the Borrower and such Relief Proceeding shall remain undismissed
or unstayed and in effect for a period of sixty (60) consecutive days or such court shall enter a
decree or order granting any of the relief sought in such Relief Proceeding, (ii) the Borrower or
any Subsidiary of the Borrower institutes, or takes any action in furtherance of, a Relief
Proceeding, or (iii) the Borrower or any Subsidiary of the Borrower ceases to be Solvent or admits
in writing its inability to pay its debts as they mature.

     9.2 Consequences of Event of Default.

          9.2.1 Events of Default Other Than Bankruptcy, Insolvency or Reorganization
Proceedings. If an Event of Default specified under Sections 9.1.1 through 9.1.10 shall occur
and be continuing, the Lenders and the Administrative Agent shall be under no further obligation to
make Loans and the Issuing Lender shall be under no obligation to issue Letters of Credit and the
Administrative Agent may, and upon the request of the Required Lenders shall, (i) by written notice
to the Borrower, declare the unpaid principal amount of the Notes then outstanding and all interest
accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to the Lenders
hereunder and thereunder to be forthwith due and payable, and the same shall thereupon become and
be immediately due and payable to the Administrative Agent for the benefit of each Lender without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived, and (ii) require the Borrower to, and the Borrower shall thereupon, deposit in a
non-interest-bearing account with the Administrative Agent, as cash collateral for its Obligations
under the Loan Documents, an amount equal to the maximum amount currently or at any time thereafter
available to be drawn on all outstanding Letters of Credit, and the Borrower hereby pledges to the
Administrative Agent and the Lenders, and grants to the Administrative Agent and the Lenders a
security interest in, all such cash as security for such Obligations; and

          9.2.2 Bankruptcy, Insolvency or Reorganization Proceedings. If an Event of Default
specified under Section 9.1.11 [Relief Proceedings] shall occur, the Lenders shall be under no
further obligations to make Loans hereunder and the Issuing Lender shall be under no obligation to
issue Letters of Credit and the unpaid principal amount of the Loans then outstanding and all
interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrower to the Lenders
hereunder and thereunder shall be immediately due and payable, without presentment, demand, protest
or notice of any kind, all of which are hereby expressly waived; and

          9.2.3 Set-off. If an Event of Default shall have occurred and be continuing, each
Lender, the Issuing Lender, and each of their respective Affiliates and any participant of such
Lender or Affiliate which has agreed in writing to be bound by the provisions of Section 5.3
[Sharing of Payments] is hereby authorized at any time and from time to time, to the fullest

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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 or any
such Affiliate or participant to or for the credit or the account of the Borrower against any and
all of the Obligations of the Borrower now or hereafter existing under this Agreement or any other
Loan Document to such Lender, the Issuing Lender, Affiliate or participant, irrespective of whether
or not such Lender, Issuing Lender, Affiliate or participant shall have made any demand under this
Agreement or any other Loan Document and although such Obligations of the Borrower may be
contingent or unmatured or are owed to a branch or office of such Lender or the Issuing Lender
different from the branch or office holding such deposit or obligated on such Indebtedness. The
rights of each Lender, the Issuing Lender and their respective Affiliates and participants under
this Section are in addition to other rights and remedies (including other rights of setoff) that
such Lender, the Issuing Lender or their respective Affiliates and participants may have. Each
Lender and the Issuing 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; and

          9.2.4 Application of Proceeds. From and after the date on which the Administrative
Agent has taken any action pursuant to this Section 9.2 and until all Obligations of the Borrower
have been paid in full, any and all proceeds received by the Administrative Agent from any sale or
other disposition of any of the Borrower’s property, or any part thereof, or the exercise of any
other remedy by the Administrative Agent, shall be applied as follows:

          (i) first, to reimburse the Administrative Agent and the Lenders for out-of-pocket costs,
expenses and disbursements, including reasonable attorneys’ and paralegals’ fees and legal
expenses, incurred by the Administrative Agent or the Lenders;

          (ii) second, to the repayment of all Obligations then due and unpaid of the Borrower to the
Lenders or their Affiliates incurred under this Agreement or any of the other Loan Documents or
agreements evidencing any Lender Provided Interest Rate Hedge or Other Lender Provided Financial
Services Obligations, whether of principal, interest, fees, expenses or otherwise and to cash
collateralize the Letter of Credit Obligations, in such manner as the Administrative Agent may
determine in its reasonable discretion; and

          (iii) the balance, if any, to the Borrower or as required by Law.

10. THE ADMINISTRATIVE AGENT

     10.1 Appointment and Authority. Each of the Lenders and the Issuing Lender hereby
irrevocably appoints PNC 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 Section 10 are solely for the benefit of the Administrative Agent, the Lenders
and the Issuing Lender, except as specifically set forth herein, and the Borrower shall have no
rights as a third party beneficiary of any of such provisions.

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     10.2 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.

     10.3 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
Potential Default or Event of 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

          (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 Sections 11.1 [Modifications, Amendments or
Waivers] and 9.2 [Consequences of Event of Default]) or (ii) in the absence of its own gross
negligence or willful misconduct. The Administrative Agent shall be deemed not to have knowledge
of any Potential Default or Event of Default unless and until notice describing such Potential
Default or Event of 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 Potential Default or Event of

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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 Section 7 [Conditions of Lending and Issuance of Letters of Credit] or
elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

     10.4 Reliance by 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.

     10.5 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 of this Section 10 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.

     10.6 Resignation of Administrative Agent. 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, with approval from
the Borrower (so long as no Event of Default has occurred and is continuing), to appoint a
successor, such approval not to be unreasonably withheld or delayed. If no such successor shall
have been so appointed by the Required Lenders and shall have accepted such appointment within
thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the Issuing 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 (i) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents and (ii) all payments, communications and
determinations provided to be made by, to or through the Administrative

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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
Section 10.6. 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 Section).
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 Section 10 and Section 11.3 [Expenses; Indemnity; Damage Waiver] 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.

     If PNC resigns as Administrative Agent under this Section 10.6, PNC may also resign as an
Issuing Lender. Upon the appointment of a successor Administrative Agent hereunder, such successor
shall (i) succeed to all of the rights, powers, privileges and duties of PNC as the retiring
Issuing Lender and Administrative Agent and PNC shall be discharged from all of its respective
duties and obligations as Issuing Lender and Administrative Agent under the Loan Documents, and
(ii) issue letters of credit in substitution for the Letters of Credit issued by PNC, if any,
outstanding at the time of such succession or make other arrangement satisfactory to PNC to
effectively assume the obligations of PNC with respect to such Letters of Credit.

     10.7 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.

     10.8 No Other Duties, etc. Anything herein to the contrary notwithstanding, none of
the other lenders listed on the cover page hereof shall have any powers, duties or responsibilities
under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as
the Administrative Agent, a Lender or the Issuing Lender hereunder.

     10.9 Administrative Agent’s Fee. The Borrower shall pay to the Administrative Agent a
nonrefundable fee (the “Administrative Agent’s Fee”) under the terms of a letter (the
“Administrative Agent’s Letter”) between the Borrower and the Administrative Agent, as amended from
time to time.

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     10.10 No Reliance on Administrative Agent’s Customer Identification Program. Each
Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or
assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”),
or any other Anti-Terrorism Law, including any programs involving any of the following items
relating to or in connection with the Borrower, its Affiliates or their agents, the Loan Documents
or the transactions hereunder or contemplated hereby: (i) any identity verification procedures,
(ii) any recordkeeping, (iii) comparisons with government lists, (iv) customer notices or (v) other
procedures required under the CIP Regulations or such other Laws.

11. MISCELLANEOUS

     11.1 Modifications, Amendments or Waivers. With the written consent of the Required
Lenders, the Administrative Agent, acting on behalf of all the Lenders, and the Borrower may from
time to time enter into written agreements amending or changing any provision of this Agreement or
any other Loan Document or the rights of the Lenders or the Borrower hereunder or thereunder, or
may grant written waivers or consents hereunder or thereunder. Any such agreement, waiver or
consent made with such written consent shall be effective to bind all the Lenders and the Borrower;
provided, that no such agreement, waiver or consent may be made which will:

          11.1.1 Increase of Commitment. Increase the amount of the Revolving Credit Commitment
of any Lender hereunder without the consent of such Lender;

          11.1.2 Extension of Payment; Reduction of Principal Interest or Fees; Modification of
Terms of Payment. Whether or not any Loans are outstanding, extend the Expiration Date or the
time for payment of principal or interest of any Loan (excluding the due date of any mandatory
prepayment of a Loan), the Commitment Fee or any other fee payable to any Lender, waive any failure
to pay principal or interest of any Loans, the Commitment Fee or any other fee payable to any
Lender on the date due, or reduce the principal amount of or the rate of interest borne by any Loan
or reduce the Commitment Fee or any other fee payable to any Lender, without the consent of each
Lender directly affected thereby; or

          11.1.3 Miscellaneous. Amend Section 5.2 [Pro Rata Treatment of Lenders], 10.3
[Exculpatory Provisions, Etc.] or 5.3 [Sharing of Payments by Lenders] or this Section 11.1, alter
any provision regarding the pro rata treatment of the Lenders or requiring all Lenders to authorize
the taking of any action or reduce any percentage specified in the definition of Required Lenders,
in each case without the consent of all of the Lenders (other than Defaulting Lenders);

provided that no agreement, waiver or consent which would modify the interests, rights or
obligations of the Administrative Agent or the Issuing Lender may be made without the written
consent of such Administrative Agent or Issuing Lender, as applicable, and provided,
further that, if in connection with any proposed waiver, amendment or modification referred to
in Sections 11.1.1 through 11.1.3 above, the consent of the Required Lenders is obtained but the

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consent of one or more of such other Lenders whose consent is required is not obtained (each a
“Non-Consenting Lender”), then the Borrower shall have the right to replace any such Non-
Consenting Lender with one or more replacement Lenders pursuant to Section 5.6.2 [Replacement of a
Lender].

     11.2 No Implied Waivers; Cumulative Remedies. No course of dealing and no delay or
failure of the Administrative Agent or any Lender in exercising any right, power, remedy or
privilege under this Agreement or any other Loan Document shall affect any other or future exercise
thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude
any further exercise thereof or of any other right, power, remedy or privilege. The rights and
remedies of the Administrative Agent and the Lenders under this Agreement and any other Loan
Documents are cumulative and not exclusive of any rights or remedies which they would otherwise
have.

     11.3 Expenses; Indemnity; Damage Waiver.

          11.3.1 Costs and Expenses. The Borrower 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, (iii) all reasonable out-of-pocket
expenses incurred by the Administrative Agent, any Lender or the Issuing Lender (including the
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, and (iv) all reasonable out-of-pocket expenses of the
Administrative Agent’s regular employees and agents engaged periodically to perform audits of the
Borrower’s books, records and business properties.

          11.3.2 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, damages, liabilities
and related expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges
and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee
or asserted against any Indemnitee by any third party or by the Borrower 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 or
nonperformance by the parties hereto of their respective obligations hereunder or thereunder or the
consummation of the transactions contemplated hereby or thereby, (ii) any

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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) breach of representations, warranties or covenants of the Borrower
under the Loan Documents, or (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, including any such items or losses relating to or
arising under Environmental Laws or pertaining to environmental matters, whether based on contract,
tort or any other theory, whether brought by a third party or by the Borrower, and regardless of
whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to
any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses (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 against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower has obtained a
final and nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction.

          11.3.3 Reimbursement by Lenders. To the extent that the Borrower for any reason fails
to indefeasibly pay any amount required under Sections 11.3.1 [Costs and Expenses] or 11.3.2
[Indemnification by the Borrower] 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 Ratable Share (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.

          11.3.4 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 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 Section 11.3.2 [Indemnification by Borrower] 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.

          11.3.5 Payments. All amounts due under this Section shall be payable not later than
ten (10) days after demand therefor.

     11.4 Holidays. Whenever payment of a Loan to be made or taken hereunder shall be due
on a day which is not a Business Day such payment shall be due on the next Business Day

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(except as provided in Section 4.2 [Interest Periods]) and such extension of time shall be included in
computing interest and fees, except that the Loans shall be due on the Business Day
preceding the Expiration Date if the Expiration Date is not a Business Day. Whenever any
payment or action to be made or taken hereunder (other than payment of the Loans) shall be stated
to be due on a day which is not a Business Day, such payment or action shall be made or taken on
the next following Business Day, and such extension of time shall not be included in computing
interest or fees, if any, in connection with such payment or action.

     11.5 Notices; Effectiveness; Electronic Communication. 

          11.5.1 Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in Section 11.5.2 [Electronic
Communications]), all notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier (i) if to a Lender, to it at its address set forth in its administrative
questionnaire, or (ii) if to any other Person, to it at its address set forth on Schedule
1.1(B).

          Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the extent provided in
Section 11.5.2 [Electronic Communications], shall be effective as provided in such Section.

          11.5.2 Electronic Communications. Notices and other communications to the Lenders and
the Issuing Lender hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing
Lender if such Lender or the Issuing Lender, as applicable, has notified the Administrative Agent
that it is incapable of receiving notices under such Article by electronic communication. The
Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to procedures approved by it;
provided that approval of such procedures may be limited to particular notices or
communications. Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement); provided that if such notice or
other communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next Business Day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

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          11.5.3 Change of Address, Etc. Any party hereto may change its address, e-mail address
or telecopier number for notices and other communications hereunder by notice to the other parties
hereto.

     11.6 Severability. The provisions of this Agreement are intended to be severable. If
any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without in any manner affecting the validity or enforceability
thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.

     11.7 Duration; Survival. All representations and warranties of the Borrower contained
herein or made in connection herewith shall survive the execution and delivery of this Agreement,
the completion of the transactions hereunder and Payment In Full. All covenants and agreements of
the Borrower contained herein relating to the payment of principal, interest, premiums, additional
compensation or expenses and indemnification, including those set forth in the Notes, Section 5
[Payments] and Section 11.3 [Expenses; Indemnity; Damage Waiver], shall survive Payment In Full.
All other covenants and agreements of the Borrower shall continue in full force and effect from and
after the date hereof and until Payment In Full.

     11.8 Successors and Assigns.

          11.8.1 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 the Borrower may not 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 Section 11.8.2
[Assignments by Lenders], (ii) by way of participation in accordance with the provisions of Section
11.8.4 [Participations], or (iii) by way of pledge or assignment of a security interest subject to
the restrictions of Section 11.8.6 [Certain Pledges; Successors and Assigns Generally] (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 Section 11.8.4 [Participations] 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.

          11.8.2 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
portion of its 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
Commitment and the Loans at the time owing to it or in the case of an

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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 clause (i)(A) of this Section 11.8.2, the aggregate amount of
the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable
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
Agreement with respect to such assignment is delivered to the Administrative Agent or, if “Trade
Date” is specified in the Assignment and Assumption Agreement, as of the Trade Date) shall not be
less than $5,000,000 unless each of the Administrative Agent and, so long as no 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 Commitment assigned.

          (iii) Required Consents. No consent shall be required for any assignment except for
the consent of the Administrative Agent (which shall not be unreasonably withheld or delayed) and:

               (A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed)
shall be required unless (x) an 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; and

               (B) the consent of the Issuing Lender (such consent 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).

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

          (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 Section 11.8.3
[Register], from and after the effective date specified in each Assignment and Assumption
Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption Agreement, have the rights and obligations of a
Lender under this Agreement, and the assigning Lender thereunder shall, to the

 - 78 -

 

extent of the interest assigned by such Assignment and Assumption Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement
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 4.4
[LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available], 5.8 [Increased
Costs], and 11.3 [Expenses, Indemnity; Damage Waiver] 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 Section 11.8.2 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 Section 11.8.4 [Participations].

          11.8.3 Register. The Administrative Agent, acting solely for this purpose as an agent
of the Borrower, shall maintain a record of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms
hereof from time to time. Such register shall be conclusive, and the Borrower, the Administrative
Agent and the Lenders may treat each Person whose name is in such register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the
contrary. Such 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.

          11.8.4 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 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 and the Lenders, Issuing Lender shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

          Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to Sections 11.1.1
[Increase of Commitment, Etc.] or 11.1.2 [Extension of Payment, Etc.]. Subject to Section 11.8.5
[Limitations upon Participant Rights Successors and Assigns Generally], the Borrower agrees that
each Participant shall be entitled to the benefits of Sections 4.4 [LIBOR Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available] and 5.8 [Increased Costs] to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to Section 11.8.2
[Assignments by Lenders]. To the extent permitted by Law, each Participant also shall be entitled
to the benefits of Section 9.2.3 [Setoff] as though it were a Lender; provided such
Participant agrees to be subject to Section 5.3 [Sharing of Payments by Lenders] as though it were
a Lender.

 - 79 -

 

          11.8.5 Limitations upon Participant Rights Successors and Assigns Generally. A
Participant shall not be entitled to receive any greater payment under Sections 5.8 [Increased
Costs], 5.9 [Taxes] or 11.3 [ Expenses; Indemnity; Damage Waiver] 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 5.9 [Taxes] 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 5.9.5 [Status of Lenders] as though it were a Lender.

          11.8.6 Certain Pledges; Successors and Assigns Generally. 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 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.

     11.9 Confidentiality.

          11.9.1 General. Each of the Administrative Agent, the Lenders and the Issuing Lender
agrees to maintain the confidentiality of the Information, except that Information may be disclosed
(i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (ii) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory authority, such as
the National Association of Insurance Commissioners), (iii) to the extent required by applicable
Laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto,
(v) in connection with the exercise of any remedies hereunder or under any other Loan Document or
any action or proceeding relating to this Agreement or any other Loan Document or the enforcement
of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially
the same as those of this Section, to (A) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (B) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the extent
such Information (Y) becomes publicly available other than as a result of a breach of this Section
or (Z) becomes available to the Administrative Agent, any Lender, the Issuing Lender or any of
their respective Affiliates on a nonconfidential basis from a source other than the Borrower. 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.

          11.9.2 Sharing Information With Affiliates of the Lenders. The Borrower acknowledges
that from time to time financial advisory, investment banking and other services may be offered or
provided to the Borrower or one or more of its Affiliates (in connection with

 - 80 -

 

this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of
such Lender and the Borrower hereby authorizes each Lender to share any information delivered to
such Lender by the Borrower and its Subsidiaries pursuant to this Agreement to any such Subsidiary
or Affiliate subject to the provisions of Section 11.9.1 [General].

     11.10 Counterparts; Integration; Effectiveness.

          11.10.1 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 including any prior confidentiality agreements
and commitments. Except as provided in Section 7 [Conditions Of Lending And Issuance Of Letters Of
Credit], this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or e-mail shall be effective
as delivery of a manually executed counterpart of this Agreement.

     11.11 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER
OF JURY TRIAL.

          11.11.1 Governing Law. This Agreement shall be deemed to be a contract under the Laws
of the State of New York without regard to its conflict of laws principles. Each standby Letter of
Credit issued under this Agreement shall be subject either to the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the International Standby
Practices (ICC Publication Number 590) (“ISP98”), as determined by the Issuing Lender, and each
trade Letter of Credit shall be subject to UCP, and in each case to the extent not inconsistent
therewith, the Laws of the State of New York without regard to is conflict of laws principles.

          11.11.2 SUBMISSION TO JURISDICTION. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT
OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL
CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.

 - 81 -

 

EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          11.11.3 WAIVER OF VENUE. THE BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 11.11. EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN
INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES NOT
ASSERT ANY SUCH DEFENSE.

          11.11.4 SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.5 [NOTICES; EFFECTIVENESS; ELECTRONIC
COMMUNICATION]. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

          11.11.5 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.

     11.12 USA Patriot Act Notice. Each Lender that is subject to the USA Patriot Act and
the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower
that pursuant to the requirements of the USA Patriot Act, it is required to obtain, verify and
record information that identifies the Borrower, which information includes the name and address
the Borrower and other information that will allow such Lender or Administrative Agent, as
applicable, to identify the Borrower in accordance with the USA Patriot Act.

 - 82 -

 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

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

	 	 	 	 	 	 
	WITNESS/ATTEST:

	 	THE NORTH AMERICAN COAL CORPORATION	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 
	By:
	/s/
Thomas A. Koza
	 	By:	/s/ K. Donald Grischow	 
	 	Name: Thomas A. Koza

	 	 	Name: K. Donald Grischow	 
	 	Title: Secretary

	 	 	Title: Treasurer	 

 

 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,
 individually and as
Administrative Agent

 	 
	 	By:  	/s/ Richard L. Munsick
 	 
	 	 	Name:  	Richard L. Munsick 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	REGIONS BANK, individually and as Co-Syndication Agent

 	 
	 	By:  	/s/ Brad Campbell
 	 
	 	 	Name:  	Brad Campbell 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,
individually and as
Co-Syndication Agent

 	 
	 	By:  	/s/ Richard Ameny
 	 
	 	 	Name:  	Richard Ameny 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Brian P. Fox
 	 
	 	 	Name:  	Brian P. Fox 	 
	 	 	Title:  	Vice President 	 
	 
	 	UNION BANK, N.A.

 	 
	 	By:  	/s/ Efrain Soto
 	 
	 	 	Name:  	Efrain Soto 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

SCHEDULE
1.1(A)

PRICING GRID—

VARIABLE PRICING AND FEES BASED ON DEBT/EBITDA

(PRICING EXPRESSED IN BASIS POINTS)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Letter of	 	Revolving Credit	 	Revolving Credit
	Level	 	Debt/EBITDA Ratio	 	Credit Fee	 	Base Rate Spread	 	LIBOR Rate Spread
	I

	 	Less than 1.0 to 1.0
	 	 	275	 	 	 	175	 	 	 	275	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II

	 	Greater than or
equal to 1.0 to 1.0
but less than 2.0
to 1.0
	 	 	300	 	 	 	200	 	 	 	300	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III

	 	Greater than or
equal to 2.0 to 1.0
	 	 	325	 	 	 	225	 	 	 	325	 

     For purposes of determining the Applicable Margin and the Applicable Letter of Credit Fee
Rate:

     (a) Until delivery of the Compliance Certificate due to be delivered under Section 8.3.3
[Certificate of Borrower] for the fiscal quarter ending December 31, 2009, the Applicable Margin
and the Applicable Letter of Credit Rate shall be that associated with Level II of the pricing grid

     (b) The Applicable Margin and the Applicable Letter of Credit Fee Rate shall be recomputed as
of the end of each fiscal quarter ending after the Closing Date based on the Debt/EBITDA Ratio as
of such quarter end. Any increase or decrease in the Applicable Margin or the Applicable Letter of
Credit Fee Rate computed as of a quarter end shall be effective on the date on which the Compliance
Certificate evidencing such computation is due to be delivered under Section 8.3.3 [Certificate of
Borrower].

     (c) If, as a result of any restatement of or other adjustment to the financial statements of
the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the
Debt/EBITDA Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a
proper calculation of the Debt/EBITDA Ratio would have resulted in higher pricing for such period,
the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent
for the account of the applicable Lenders, promptly on demand by the Administrative Agent (or,
after the occurrence of an actual or deemed entry of an order for relief

SCHEDULE 1.1(A) - 1 

 

with respect to the Borrower under the Bankruptcy Code of the United States, automatically and
without further action by the Administrative Agent, any Lender or the Issuing Lender), an amount
equal to the excess of the amount of interest and fees that should have been paid for such period
over the amount of interest and fees actually paid for such period. This paragraph shall not limit
the rights of the Administrative Agent, any Lender or the Issuing Lender, as the case may be, under
Section 2.9 [Letter of Credit Subfacility] or 4.3 [Interest After Default] or 9 [Default]. The
Borrower’s obligations under this paragraph shall survive the termination of the Commitments and
the repayment of all other Obligations hereunder.

SCHEDULE 1.1(A) - 2 

 

SCHEDULE 1.1(B)

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

Page 1 of 2

Part 1 — Commitments of Lenders and Addresses for Notices to Lenders

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender	 	Commitment	 	Ratable Share
	Name:

	 	PNC Bank, National Association	 	 	 	 	 	 	 	 
	Address:

	 	One PNC Plaza	 	 	 	 	 	 	 	 
	 

	 	249 Fifth Avenue	 	 	 	 	 	 	 	 
	 

	 	Pittsburgh, PA 15222	 	 	 	 	 	 	 	 
	Attention:

	 	Richard C. Munsick	 	 	 	 	 	 	 	 
	Telephone:

	 	(412) 762-4299
	 	$	24,000,000.00	 	 	 	24.000000000	%
	Telecopy:

	 	(412) 762-6484	 	 	 	 	 	 	 	 
	Email:richard.munsick@pncbank.com	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Regions Bank	 	 	 	 	 	 	 	 
	Address:

	 	1111 West Mockingbird Lane	 	 	 	 	 	 	 	 
	 

	 	Dallas, TX 75247	 	 	 	 	 	 	 	 
	Attention:

	 	Brad Campbell	 	 	 	 	 	 	 	 
	Telephone:

	 	(214) 678-2578	 	 	 	 	 	 	 	 
	Telecopy:

	 	(214) 678-3956
	 	$	20,000,000.00	 	 	 	20.000000000	%
	Email:brad.campbell@regions.com	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	U.S. Bank National Association	 	 	 	 	 	 	 	 
	Address:

	 	One U.S. Bank Plaza	 	 	 	 	 	 	 	 
	 

	 	1420 Fifth Avenue, 10th Floor	 	 	 	 	 	 	 	 
	 

	 	Mail code: PD-WA-T10M	 	 	 	 	 	 	 	 
	 

	 	Seattle, WA 98101	 	 	 	 	 	 	 	 
	Attention:

	 	Richard Ameny
	 	$	20,000,000.00	 	 	 	20.000000000	%
	Telephone:

	 	(206) 587-5237	 	 	 	 	 	 	 	 
	Telecopy:

	 	(206) 344-3654	 	 	 	 	 	 	 	 
	Email:richard.ameny@usbank.com	 	 	 	 

SCHEDULE 1.1(B) — 1

 

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lender	 	Commitment	 	Ratable Share
	Name:

	 	Keybank National Association	 	 	 	 	 	 	 	 
	Address:

	 	127 Public Square	 	 	 	 	 	 	 	 
	 

	 	TRAM SL-MO-T12M	 	 	 	 	 	 	 	 
	 

	 	Cleveland, OH 44114	 	 	 	 	 	 	 	 
	Attention:

	 	Brian Fox	 	 	 	 	 	 	 	 
	Telephone:

	 	(216) 689-4599
	 	$	18,000,000.00	 	 	 	18.000000000	%
	Telecopy:

	 	(216) 689-4649	 	 	 	 	 	 	 	 
	Email:Brian_Fox@keybank.com	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Union Bank, N.A.	 	 	 	 	 	 	 	 
	Address:

	 	Commercial Loan Operations	 	 	 	 	 	 	 	 
	 

	 	601 Potrero Grande Dr.	 	 	 	 	 	 	 	 
	 

	 	Monterey Park, CA 91754	 	 	 	 	 	 	 	 
	Attention:

	 	Maria Suncin	 	 	 	 	 	 	 	 
	Telephone:

	 	(323) 720-2870
	 	$	18,000,000.00	 	 	 	18.000000000	%
	Telecopy:

	 	(800) 446-9951	 	 	 	 	 	 	 	 
	     Total

	 	 	 	 	$100,000,000.00
	 	 	 	 100	%
	 

	 	 	 	 	 	 	 	 	 	 

SCHEDULE 1.1(B) — 2

 

 

SCHEDULE 1.1(B)

COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES

Page 2 of 2

Part 2 — Addresses for Notices to Borrower:

ADMINISTRATIVE AGENT

	 	 	 
	Name:

	 	PNC Bank, National Association
	Address:

	 	One PNC Plaza
	 

	 	249 Fifth Avenue
	 

	 	Pittsburgh, Pennsylvania 15222-2707
	Attention:

	 	Richard C. Munsick
	Telephone:

	 	(412) 762-4299
	Telecopy:

	 	(412) 762-2571

With a Copy To:

Agency Services, PNC Bank, National Association

Mail Stop: P7-PFSC-04-I

Address: 500 First Avenue

Pittsburgh, PA 15219

Attention: Agency Services

Telephone: 412 768 0423

Telecopy: 412 762 8672

BORROWER:

Bob Carlton, CFO

The North American Coal Corporation

14785 Preston Road, Suite 1100

Dallas, Texas  75254-7891

Fax:  972/387-1051

bob.carlton@nacoal.com

With a Copy To:

Tom Koza, Secretary

The North American Coal Corporation

14785 Preston Road, Suite 1100

Dallas, Texas  75254-7891

Fax:  972/387-1031

tom.koza@nacoal.com

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