Document:

Exhibit 10.58

Exhibit 10.58

Published
CUSIP Number: 42702LAG1

CREDIT AGREEMENT

Dated as of March 9, 2011

among

HERBALIFE INTERNATIONAL, INC.,

HERBALIFE LTD.

and

HERBALIFE INTERNATIONAL LUXEMBOURG S.A.R.L.,

as Borrowers,

BANK OF AMERICA, N.A.,

as Administrative Agent, Swing Line Lender

and

L/C Issuer,

and

The Other Lenders Party Hereto

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,

“RABOBANK INTERNATIONAL”, NEW YORK BRANCH

as Documentation Agent

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and J.P. MORGAN SECURITIES LLC

as Joint Lead Arrangers and Joint Book Managers

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Other Interpretive Provisions
	 	 	28	 
	1.03 Accounting Terms
	 	 	29	 
	1.04 Rounding
	 	 	29	 
	1.05 Exchange Rates; Currency Equivalents
	 	 	29	 
	1.06 Additional Alternative Currencies
	 	 	30	 
	1.07 Change of Currency
	 	 	31	 
	1.08 Times of Day
	 	 	31	 
	1.09 Letter of Credit Amounts
	 	 	31	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	32	 
	2.01 Committed Loans
	 	 	32	 
	2.02 Borrowings, Conversions and Continuations of Committed Loans
	 	 	32	 
	2.03 Letters of Credit
	 	 	34	 
	2.04 Swing Line Loans
	 	 	44	 
	2.05 Prepayments
	 	 	47	 
	2.06 Termination or Reduction of Commitments
	 	 	48	 
	2.07 Repayment of Loans
	 	 	48	 
	2.08 Interest
	 	 	49	 
	2.09 Fees
	 	 	49	 
	2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate
	 	 	50	 
	2.11 Evidence of Debt
	 	 	51	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	51	 
	2.13 Sharing of Payments by Lenders
	 	 	53	 
	2.14 Designated Borrowers
	 	 	54	 
	2.15 Reserved
	 	 	55	 
	2.16 Release of Collateral Upon Change in Debt Rating
	 	 	55	 
	2.17 Cash Collateral
	 	 	55	 
	2.18 Defaulting Lenders
	 	 	56	 

 

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	58	 
	3.01 Taxes
	 	 	58	 
	3.02 Illegality
	 	 	63	 
	3.03 Inability to Determine Rates
	 	 	63	 
	3.04 Increased Costs; Reserves on Eurocurrency Rate Loans
	 	 	64	 
	3.05 Compensation for Losses
	 	 	66	 
	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	67	 
	3.07 Survival
	 	 	67	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	67	 
	4.01 Conditions of Initial Credit Extension
	 	 	67	 
	4.02 Conditions to all Credit Extensions
	 	 	70	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	71	 
	5.01 Existence, Qualification and Power
	 	 	71	 
	5.02 Authorization; No Contravention
	 	 	71	 
	5.03 Governmental Authorization; Other Consents
	 	 	71	 
	5.04 Binding Effect
	 	 	72	 
	5.05 Financial Statements; No Material Adverse Effect
	 	 	72	 
	5.06 Litigation
	 	 	72	 
	5.07 No Default
	 	 	72	 
	5.08 Ownership of Property; Liens
	 	 	73	 
	5.09 Environmental Compliance
	 	 	73	 
	5.10 Insurance
	 	 	73	 
	5.11 Taxes
	 	 	73	 
	5.12 ERISA Compliance
	 	 	73	 
	5.13 Subsidiaries; Equity Interests
	 	 	74	 
	5.14 Margin Regulations; Investment Company Act
	 	 	74	 
	5.15 Disclosure
	 	 	74	 
	5.16 Compliance with Laws
	 	 	75	 
	5.17 Taxpayer Identification Number; Other Identifying Information
	 	 	75	 
	5.18 Representations as to Foreign Obligors
	 	 	75	 
	5.19 Collateral Documents
	 	 	76	 
	5.20 Solvency
	 	 	77	 
	5.21 USA PATRIOT Act
	 	 	77	 

 

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	77	 
	6.01 Financial Statements
	 	 	77	 
	6.02 Certificates; Other Information
	 	 	78	 
	6.03 Notices
	 	 	79	 
	6.04 Payment of Obligations
	 	 	80	 
	6.05 Preservation of Existence, Etc
	 	 	80	 
	6.06 Maintenance of Properties
	 	 	80	 
	6.07 Maintenance of Insurance
	 	 	80	 
	6.08 Compliance with Laws
	 	 	81	 
	6.09 Books and Records
	 	 	81	 
	6.10 Inspection Rights
	 	 	81	 
	6.11 Use of Proceeds
	 	 	81	 
	6.12 Approvals and Authorizations
	 	 	81	 
	6.13 Additional Guarantors; Additional Collateral
	 	 	82	 
	6.14 Further Assurances
	 	 	83	 
	6.15 Ratings Decrease Following Release of Collateral
	 	 	84	 
	6.16 Good Standing
	 	 	84	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	85	 
	7.01 Liens
	 	 	85	 
	7.02 Investments
	 	 	88	 
	7.03 Indebtedness
	 	 	89	 
	7.04 Fundamental Changes
	 	 	91	 
	7.05 Dispositions
	 	 	91	 
	7.06 Restricted Payments
	 	 	92	 
	7.07 Change in Nature of Business
	 	 	92	 

 

iii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	7.08 Transactions with Affiliates
	 	 	92	 
	7.09 Burdensome Agreements
	 	 	93	 
	7.10 Use of Proceeds
	 	 	93	 
	7.11 Financial Covenants
	 	 	94	 
	7.12 Capital Expenditures
	 	 	94	 
	7.13 Accounting Changes
	 	 	94	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	94	 
	8.01 Events of Default
	 	 	94	 
	8.02 Remedies Upon Event of Default
	 	 	97	 
	8.03 Application of Funds
	 	 	98	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	99	 
	9.01 Appointment and Authority
	 	 	99	 
	9.02 Rights as a Lender
	 	 	99	 
	9.03 Exculpatory Provisions
	 	 	99	 
	9.04 Reliance by Administrative Agent
	 	 	100	 
	9.05 Delegation of Duties
	 	 	101	 
	9.06 Resignation of Administrative Agent
	 	 	101	 
	9.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	102	 
	9.08 No Other Duties, Etc
	 	 	102	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	102	 
	9.10 Collateral and Guaranty Matters
	 	 	103	 
	9.11 Secured Cash Management Agreements and Secured Hedge Agreements
	 	 	104	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	104	 
	10.01 Amendments, Etc
	 	 	104	 
	10.02 Notices; Effectiveness; Electronic Communication
	 	 	106	 
	10.03 No Waiver; Cumulative Remedies; Enforcement
	 	 	108	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	109	 
	10.05 Payments Set Aside
	 	 	110	 
	10.06 Successors and Assigns
	 	 	111	 

 

iv

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	115	 
	10.08 Right of Setoff
	 	 	116	 
	10.09 Interest Rate Limitation
	 	 	117	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	117	 
	10.11 Survival of Representations and Warranties
	 	 	117	 
	10.12 Severability
	 	 	118	 
	10.13 Replacement of Lenders
	 	 	118	 
	10.14 Governing Law; Jurisdiction; Etc
	 	 	118	 
	10.15 Waiver of Jury Trial
	 	 	119	 
	10.16 No Advisory or Fiduciary Responsibility
	 	 	120	 
	10.17 Electronic Execution of Assignments and Certain Other Documents
	 	 	120	 
	10.18 USA PATRIOT Act
	 	 	120	 
	10.19 Judgment Currency
	 	 	121	 
	SIGNATURES
	 	 	S-1	 

 

v

 

	 	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	E-1 Excluded Domestic Subsidiaries and Excluded Foreign Subsidiaries
	 	 	 	 
	G-1 Initial Guarantors
	 	 	 	 
	1.01 Mandatory Cost Formulae
	 	 	 	 
	2.01 Commitments and Applicable Percentages
	 	 	 	 
	5.03 Authorizations and Consents
	 	 	 	 
	5.06 Litigation
	 	 	 	 
	5.11 Tax Assessments
	 	 	 	 
	5.13 Subsidiaries; Other Equity Investments
	 	 	 	 
	5.17 Identification Numbers for Foreign Borrowers
	 	 	 	 
	7.01 Existing Liens
	 	 	 	 
	7.03 Existing Indebtedness
	 	 	 	 
	10.02 Administrative Agent’s Office; Certain Addresses for Notices
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Form of
	 	 	 	 
	 
	 	 	 	 
	A Committed Loan Notice
	 	 	 	 
	B Swing Line Loan Notice
	 	 	 	 
	C Note
	 	 	 	 
	D Compliance Certificate
	 	 	 	 
	E-1 Assignment and Assumption
	 	 	 	 
	E-2 Administrative Questionnaire
	 	 	 	 
	F Security Agreement
	 	 	 	 
	G-1 Company Guaranty
	 	 	 	 
	G-2 Holdings Guaranty
	 	 	 	 
	G-3 HIL Guaranty
	 	 	 	 
	G-4 Domestic Subsidiary Guaranty
	 	 	 	 
	G-5 Foreign Subsidiary Guaranty
	 	 	 	 
	H Designated Borrower Request and Assumption Agreement
	 	 	 	 
	I Designated Borrower Notice
	 	 	 	 
	J-1 Opinion of Gibson, Dunn & Crutcher
	 	 	 	 
	J-2 Opinions of Maples and Calder
	 	 	 	 
	J-3 Opinion of Arendt & Medernach
	 	 	 	 
	J-4 Opinion of Brownstein Hyatt Farber Schreck LLP
	 	 	 	 
	K Perfection Certificate
	 	 	 	 

 

vi

 

CREDIT AGREEMENT

This CREDIT AGREEMENT (“Agreement”) is entered into as of March 9, 2011, among
HERBALIFE INTERNATIONAL, INC., a Nevada corporation (the “Company”), HERBALIFE LTD., a
Cayman Islands exempted company incorporated with limited liability (“Holdings”), HERBALIFE
INTERNATIONAL LUXEMBOURG S.À.R.L., a Luxembourg private limited liability company, having its
registered office at 18, boulevard Royal, L-2449 Luxembourg, having a share capital of EUR 25,000,
registered with the Luxembourg trade and companies register under number B 88.006 (“HIL”),
certain Subsidiaries of the Company party hereto pursuant to Section 2.14 (each a
“Designated Borrower” and, together with the Company, Holdings and HIL, the
“Borrowers” and, each a “Borrower”), each lender from time to time party hereto
(collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA,
N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

The Borrowers have requested that the Lenders provide a revolving credit facility, and the
Lenders are willing to do so on the terms and conditions set forth herein.

In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings
set forth below:

“Act” has the meaning specified in Section 10.18.

“Administrative Agent” means Bank of America in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent appointed in accordance with
the terms hereof.

“Administrative Agent’s Office” means, with respect to any currency, the
Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02
with respect to such currency, or such other address or account with respect to such currency as
the Administrative Agent may from time to time notify to the Borrowers and the Lenders.

“Administrative Questionnaire” means an Administrative Questionnaire in substantially
the form of Exhibit E-2 or any other form approved by the Administrative Agent.

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

“Aggregate Commitments” means the Commitments of all the Lenders.

 

 

 

“Agreement” means this Credit Agreement.

“Alternative Currency” means each of Euro, Pesos and each other currency (other than
Dollars) that is approved in accordance with Section 1.06.

“Alternative Currency Equivalent” means, at any time, with respect to any amount
denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as
determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the
basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase
of such Alternative Currency with Dollars.

“Alternative Currency Sublimit” means an amount equal to the lesser of the Aggregate
Commitments and $100,000,000. The Alternative Currency Sublimit is part of, and not in addition
to, the Aggregate Commitments.

“Applicable Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the
L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or
if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be
determined based on the Applicable Percentage of such Lender most recently in effect, giving effect
to any subsequent assignments. The initial Applicable Percentage of each Lender is set forth
opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

“Applicable Rate” means the following percentages per annum, based upon the
Consolidated Total Leverage Ratio as set forth in the most recent Compliance Certificate received
by the Administrative Agent pursuant to Section 6.02(a):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Rate	 
	 	 	 	 	 	 	 	 	Eurocurrency	 	 	 	 
	 	 	 	 	 	 	 	 	Rate +, Peso	 	 	 	 
	Pricing	 	Consolidated Total	 	 	 	 	 	Rate +, Letters	 	 	 	 
	Level	 	Leverage Ratio	 	Commitment Fee	 	 	of Credit +	 	 	Base Rate +	 
	1
	 	<0.50:1	 	 	0.25	%	 	 	1.50	%	 	 	0.50	%
	2
	 	>0.50:1 but <1.00:1	 	 	0.30	%	 	 	1.75	%	 	 	0.75	%
	3
	 	>1.00:1 but <1.50:1	 	 	0.40	%	 	 	2.00	%	 	 	1.00	%
	4
	 	>1.50:1 but <2.00:1	 	 	0.40	%	 	 	2.25	%	 	 	1.25	%
	5
	 	>2.00:1	 	 	0.50	%	 	 	2.50	%	 	 	1.50	%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated
Total Leverage Ratio shall become effective as of the first Business Day immediately following the
date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided,
however, that if a Compliance Certificate is not delivered when due in
accordance with such Section, then, upon the request of the Required Lenders, Pricing Level 5
shall apply as of the first Business Day after the date on which such Compliance Certificate was
required to have been delivered and shall remain in effect until the date on which such Compliance
Certificate is delivered. The Applicable Rate in effect from the Closing Date through the date
that a Compliance Certificate is required to be delivered pursuant to Section 6.02(a) for
the fiscal quarter ending June 30, 2011 shall be determined based upon Pricing Level 2.

 

2

 

Notwithstanding anything to the contrary contained in this definition, the determination of
the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).

“Applicable Time” means, with respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such Alternative Currency as
may be determined by the Administrative Agent or the L/C Issuer, as the case may be, to be
necessary for timely settlement on the relevant date in accordance with normal banking procedures
in the place of payment.

“Applicant Borrower” has the meaning specified in Section 2.14.

“Approved Fund” means any Fund 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.

“Arrangers” means, together, MLPFS and JPMorgan, in their capacities as joint lead
arrangers and joint book managers.

“Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

“Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an Eligible Assignee (with the consent of any party whose consent is required by
Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of
Exhibit E-1 or any other form approved by the Administrative Agent.

“Audited Financial Statements” means the audited consolidated balance sheet of
Holdings and its Subsidiaries for the fiscal year ended December 31, 2010, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of Holdings and its Subsidiaries, including the notes thereto.

“Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments
pursuant to Section 2.06, and (c) the date of termination of the commitment of each Lender
to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to
Section 8.02.

“Bank of America” means Bank of America, N.A. and its successors.

 

3

 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a)
the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America as its “prime rate”, and (c) the Eurocurrency Rate
plus 1.00%. The “prime rate” is a rate set by Bank of America based upon various factors including
Bank of America’s costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above, or below such
announced rate. Any change in such prime rate announced by Bank of America shall take effect at
the opening of business on the day specified in the public announcement of such change.

“Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.

“Base Rate Loan” means a Loan that bears interest based on the Base Rate. All Base
Rate Loans shall be denominated in Dollars.

“Borrower” and “Borrowers” each has the meaning specified in the introductory
paragraph hereto.

“Borrower Materials” has the meaning specified in Section 6.02.

“Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context may
require.

“Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office with respect to Obligations denominated in Dollars is
located and:

(a) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Dollars, any fundings, disbursements, settlements and payments in Dollars in
respect of any such Eurocurrency Rate Loan, or any other dealings in Dollars to be carried
out pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means any such
day on which dealings in deposits in Dollars are conducted by and between banks in the
London interbank eurodollar market;

(b) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in Euro, any fundings, disbursements, settlements and payments in Euro in
respect of any such Eurocurrency Rate Loan, or any other dealings in Euro to be carried out
pursuant to this Agreement in respect of any such Eurocurrency Rate Loan, means a TARGET
Day;

(c) if such day relates to any interest rate settings as to a Eurocurrency Rate Loan
denominated in a currency other than Dollars or Euro, means any such day on which dealings
in deposits in the relevant currency are conducted by and between banks in the London or
other applicable offshore interbank market for such currency;

 

4

 

(d) if such day relates to any interest rate settings as to Peso Rate Loan denominated
in Pesos, means any such day on which dealings in deposits in Mexican deposits are conducted
by and between banks in Mexico City, Mexico; and

(e) if such day relates to any fundings, disbursements, settlements and payments in a
currency other than Dollars or Euro in respect of a Eurocurrency Rate Loan denominated in a
currency other than Dollars or Euro, or any other dealings in any currency other than
Dollars or Euro to be carried out pursuant to this Agreement in respect of any such
Eurocurrency Rate Loan (other than any interest rate settings), means any such day on which
banks are open for foreign exchange business in the principal financial center of the
country of such currency.

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

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative
Agent, for the benefit of the Administrative Agent, L/C Issuer or Swing Line Lender (as applicable)
and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans, or
obligations of Lenders to fund participations in respect of either thereof (as the context may
require), cash or deposit account balances or, if the L/C Issuer or Swing Line Lender benefitting
from such collateral shall agree in its sole discretion, other credit support, in each case
pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and
(b) the L/C Issuer or the Swing Line Lender (as applicable). “Cash Collateral” shall have a meaning
correlative to the foregoing and shall include the proceeds of such cash collateral and other
credit support.

“Cash Management Agreement” means any agreement to provide cash management services,
including treasury, depository, overdraft, credit or debit card, electronic funds transfer and
other cash management arrangements.

“Cash Management Bank” means any Person that (i) at the time it enters into a Cash
Management Agreement, is a Lender or an Affiliate of a Lender, or both (x) at the time it entered
into a Cash Management Agreement, was a “Lender” or an Affiliate of a “Lender” under the Existing
Credit Agreement and (y) as of the Closing Date is a Lender or an Affiliate of a Lender, in any
such case, in its capacity as a party to such Cash Management Agreement.

“Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental Authority; provided
that notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and
Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in
connection therewith shall be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued.

 

5

 

“Change of Control” means an event or series of events by which:

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) (but excluding (i) any
employee benefit plan of such person or its subsidiaries, (ii) any person or entity acting
in its capacity as trustee, agent or other fiduciary or administrator of any such plan and
(iii) any “nominating shareholder group” meeting the applicable eligibility requirements
contained in Rule 14a-11(b) under the Exchange Act (or any successor thereto) (the
“Proxy Access Rule”), to the extent the Proxy Access Rule becomes effective,
including, without limitation, that such nominating shareholder group is not holding any
Holdings securities with the purpose, or with the effect, of changing control of Holdings)
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that a person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time (such right, an “option
right”)), directly or indirectly, of 35% or more of the issued shares of Holdings
entitled to vote to appoint members of the board of directors or equivalent governing body
of Holdings on a fully-diluted basis (and taking into account all such shares that such
person or group has the right to acquire pursuant to any option right);

(b) Holdings at any time ceases to own, directly or indirectly, 100% of the Equity
Interests of the Company, HIL and, except as the result of a transaction otherwise permitted
hereunder, each other Guarantor; or

(c) a “change of control” or similar event, however denominated shall occur under and
as defined under any indenture or other definitive document, in either case, governing
Indebtedness of a Borrower or Guarantor in an aggregate principal amount outstanding of
greater than $35,000,000.

“Closing Date” means the first date all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01.

“Code” means the Internal Revenue Code of 1986.

“Collateral” means all of the “Collateral” referred to in the Collateral
Documents and all of the other property that is or is intended under the terms of the Collateral
Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the
Secured Parties.

“Collateral Documents” means, collectively, the Perfection Certificate, the Security
Agreement, security agreements, pledge agreements or other similar agreements delivered to the
Administrative Agent pursuant to Section 6.13, and each of the other agreements,
instruments or documents that creates or purports to create a Lien in favor of the Administrative
Agent for the benefit of the Secured Parties; and for purposes of any Secured Hedge Agreement or
Secured
Cash Management Agreement, “Security Documents” or other analogous terms shall have the same
meaning as “Collateral Documents” hereunder.

 

6

 

“Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to
the Borrowers pursuant to Section 2.01, (b) purchase participations in L/C Obligations, and
(c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time
outstanding not to exceed the Dollar amount set forth opposite such Lender’s name on Schedule
2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto,
as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

“Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of
the same Type, in the same currency and, in the case of Eurocurrency Rate Loans or Peso Rate Loans,
having the same Interest Period made by each of the Lenders pursuant to Section 2.01.

“Committed Loan” has the meaning specified in Section 2.01.

“Committed Loan Notice” means a notice of (a) a Committed Borrowing, (b) a conversion
of Committed Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Loans or
Peso Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially
in the form of Exhibit A.

“Company” has the meaning specified in the introductory paragraph hereto.

“Company Guaranty” means the Guaranty made by the Company in favor of the
Administrative Agent, the Lenders, the Cash Management Banks and the Hedge Banks, substantially in
the form of Exhibit G-1.

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

“Consolidated EBITDA” means, with respect to any Person for any period, Consolidated
Net Income for such period, adjusted, in each case only to the extent (and in the same proportion)
deducted in determining Consolidated Net Income, without duplication, by (x) adding thereto:

(a) Consolidated Interest Expense,

(b) provision for taxes based on income,

(c) depreciation,

(d) amortization (including amortization of deferred fees and the accretion of original
issue discount),

(e) all other noncash items subtracted in determining Consolidated Net Income
(including any noncash charges and noncash equity based compensation expenses related to any
grant of stock, stock options or other equity-based awards
(including, without limitation, restricted stock units or stock appreciation rights) of
such Person or any of its Subsidiaries recorded under GAAP, noncash charges related to
warrants or other derivative instruments classified as equity instruments that will result
in equity settlements and not cash settlements, and noncash losses or charges related to
impairment of goodwill and other intangible assets and excluding any noncash charge that
results in an accrual of a reserve for cash charges in any future period) for such period,

 

7

 

(f) nonrecurring expenses and charges,

(g) fees and expenses incurred in connection with the incurrence, prepayment,
amendment, or refinancing of Indebtedness (including in connection with (i) the negotiation
and documentation of this Agreement and the other Loan Documents and any amendments or
waivers thereof and (ii) the on-going compliance with this Agreement and the other Loan
Documents); and

(y) subtracting therefrom the aggregate amount of all noncash items, determined on a consolidated
basis, to the extent such items were added in determining Consolidated Net Income for such period.

“Consolidated Indebtedness” means, with respect to any Person as at any date of
determination, the aggregate amount of all Indebtedness (including the then outstanding principal
amount of all Loans and Letters of Credit) of such Person and its consolidated Subsidiaries on a
consolidated basis as determined in accordance with GAAP.

“Consolidated Interest Coverage Ratio” means, as of the last day of any fiscal quarter
of Holdings, the ratio computed for the period consisting of such fiscal quarter and each of the
three immediately preceding fiscal quarters of: (a) Consolidated EBITDA (for all such fiscal
quarters) to (b) Consolidated Interest Expense (for all such fiscal quarters).

“Consolidated Interest Expense” means, with respect to any Person for any period, the
total consolidated cash interest expense (including that portion attributable to Capital Lease
Obligations) of such Person and its consolidated Subsidiaries for such period (calculated without
regard to any limitations on the payment thereof and including commitment fees, letter-of-credit
fees, and net amounts payable under any interest rate protection agreements) determined in
accordance with GAAP.

“Consolidated Net Income” means, with respect to any Person for any period, the
consolidated net after tax income of such Person and its consolidated Subsidiaries determined in
accordance with GAAP, but excluding in any event (a) net earnings or loss of any other Person
(other than a Subsidiary) in which such Person or any of its consolidated Subsidiaries has an
ownership interest, except (in the case of any such net earnings) to the extent such net earnings
shall have actually been received by such Person or any of its consolidated Subsidiaries in the
form of cash distributions and (b) the income (or loss) of any other Person accrued prior to the
date it becomes a Subsidiary of such Person or any of its consolidated Subsidiaries or is merged
into or consolidated with such Person or any of its consolidated Subsidiaries or that other
Person’s assets are acquired by such Person or its consolidated Subsidiaries after the Closing
Date.

 

8

 

“Consolidated Total Leverage Ratio” means, as of the last day of any fiscal quarter of
Holdings, the ratio of: (a) Consolidated Indebtedness of Holdings on such date to (b) Consolidated
EBITDA of Holdings computed for the period consisting of such fiscal quarter and each of the three
immediately preceding fiscal quarters.

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

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

“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

“Debt Rating” means, as of any date of determination, the corporate credit rating of
Holdings or the Company (for the corporate enterprise taken as a whole) as determined by either S&P
or Moody’s (collectively, the “Debt Ratings”).

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

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

“Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if
any, applicable to Base Rate Loans plus (iii) 2% per annum; provided,
however, that with respect to a Eurocurrency Rate Loan or Peso Rate Loan, the Default Rate
shall be an interest rate equal to the interest rate (including any Applicable Rate and any
Mandatory Cost) otherwise applicable to such Loan plus 2% per annum, and (b) when used with
respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.

 

9

 

“Defaulting Lender” means, subject to Section 2.18(b), any Lender that, as
reasonably determined by the Administrative Agent, (a) has failed to perform any of its
funding obligations hereunder, including in respect of its Loans or participations in respect of
Letters of Credit or Swing Line Loans, within three Business Days of the date required to be funded
by it hereunder unless such Lender notifies the Administrative Agent and the Borrowers in writing
that such refusal is the result of such Lender’s determination that one or more conditions
precedent to funding (which conditions precedent, together with the applicable default, if any,
shall be
specifically identified in writing) have not been satisfied, (b) has notified the Borrowers or
the Administrative Agent that it does not intend to comply with its funding obligations or has made
a public statement to that effect with respect to its funding obligations hereunder or under other
agreements in which it commits to extend credit (other than, in the case of such other agreements,
to the extent such Lender’s notice or public statement of non-compliance is due to the applicable
debtor’s breach thereunder or as a result of such Lender’s good faith dispute with respect to its
funding obligations thereunder), (c) has failed, within three Business Days after request by the
Administrative Agent, to confirm in a manner satisfactory to the Administrative Agent that it will
comply with its funding obligations unless such notice or public statement relates to such Lender’s
obligation to fund hereunder and states that such position is based on such Lender’s determination
that one or more conditions precedent to funding (which conditions precedent, together with the
applicable default, if any, shall be specifically identified in such notice or public statement)
have not been satisfied, or (d) has, or has a direct or indirect parent company that has, (i)
become the subject of a proceeding under any Debtor Relief Law, (ii) had a receiver, conservator,
trustee, administrator, assignee for the benefit of creditors or similar Person charged with
reorganization or liquidation of its business or a custodian appointed for it, or (iii) taken any
action in furtherance of, or indicated its consent to, approval of or acquiescence in any such
proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue
of the ownership or acquisition of any equity interest in that Lender or any direct or indirect
parent company thereof by a Governmental Authority.

“Designated Borrower” has the meaning specified in the introductory paragraph hereto.

“Designated Borrower Notice” has the meaning specified in Section 2.14.

“Designated Borrower Request and Assumption Agreement” has the meaning specified in
Section 2.14.

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

“Dollar” and “$” mean lawful money of the United States.

“Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, and (b) with respect to any amount denominated in any Alternative Currency,
the equivalent amount thereof in Dollars as determined by the Administrative Agent or the L/C
Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect of
the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.

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

 

10

 

“Domestic Subsidiary Guarantor” means a Wholly Owned Subsidiary that is (a) a
Subsidiary, directly or indirectly, of the Company, (b) a Material Subsidiary and (c) a Domestic
Subsidiary, but not an Excluded Domestic Subsidiary. As of the Closing Date, the Domestic
Subsidiary Guarantors are Herbalife International of America, Inc., a Nevada corporation, Herbalife
International Communications, Inc., a California corporation, Herbalife International Do Brasil
Ltda, a corporation dually organized in Brazil and Delaware, Herbalife Korea Co., Ltd., a
corporation dually organized in Korea and Delaware, and Herbalife Taiwan.

“Domestic Subsidiary Guaranty” means the Guaranty made by the Guarantors (other than
the Foreign Obligors and the Company) in favor of the Administrative Agent, the Lenders the Cash
Management Banks and the Hedge Banks, substantially in the form of Exhibit G-4.

“Domesticated Foreign Subsidiary” means a Foreign Subsidiary which has become
domesticated into the United States.

“Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject to such consents, if
any, as may be required under Section 10.06(b)(iii)).

“EMU” means the economic and monetary union in accordance with the Treaty of Rome
1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the Amsterdam
Treaty of 1998.

“EMU Legislation” means the legislative measures of the European Council for the
introduction of, changeover to or operation of a single or unified European currency.

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

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

“Equity Interests” means, with respect to any Person, all of the shares of capital
stock or shares in the share capital of (or other ownership or profit interests in) such Person,
all of the warrants, options or other rights for the purchase or acquisition from such Person of
shares of capital stock or shares in the share capital of (or other ownership or profit interests
in) such Person, all of the securities convertible into or exchangeable for shares of capital stock
or shares in the share capital of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests),
and all of the other ownership or profit interests in such Person (including partnership,
member or trust interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of determination.

 

11

 

“ERISA” means the Employee Retirement Income Security Act of 1974.

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

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

“Euro” and “EUR” mean the lawful currency of the Participating Member States
introduced in accordance with the EMU Legislation.

“Eurocurrency Rate” means:

(a) for any Interest Period with respect to a Eurocurrency Rate Loan, the rate per annum equal
to (i) the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters
(or such other commercially available source providing quotations of BBA LIBOR as may be designated
by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two London
Banking Days prior to the commencement of such Interest Period, for deposits in the relevant
currency (for delivery on the first day of such Interest Period) with a term equivalent to such
Interest Period or, (ii) if such rate is not available at such time for any reason, the rate per
annum determined by the Administrative Agent to be the rate at which deposits in the relevant
currency for delivery on the first day of such Interest Period in Same Day Funds in the approximate
amount of the Eurocurrency Rate Loan being made, continued or converted and with a term equivalent
to such Interest Period would be offered by Bank of America’s London Branch to major banks in the
London or other offshore interbank market for such currency at their request at approximately 11:00
a.m. (London time) two London Banking Days prior to the commencement of such Interest Period; and

 

12

 

(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per
annum equal to (i) BBA LIBOR, at approximately 11:00 a.m., London time, determined two
London Banking Days prior to such date for deposits in the relevant currency being delivered
in the London or other offshore interbank market for such currency for a term of one month
commencing that day or (ii) if such published rate is not available at such time for any reason,
the rate per annum determined by the Administrative Agent to be the rate at which deposits in the
relevant currency for delivery on the date of determination in Same Day Funds in the approximate
amount of the Base Rate Loan being made or maintained and with a term equal to one month would be
offered by Bank of America’s London Branch to major banks in the London or other offshore interbank
market for such currency at their request at the date and time of determination.

“Eurocurrency Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurocurrency Rate. Eurocurrency Rate Loans may be denominated in Dollars or in an Alternative
Currency (other than Pesos). All Committed Loans denominated in an Alternative Currency (other
than Pesos) must be Eurocurrency Rate Loans.

“Event of Default” has the meaning specified in Section 8.01.

“Excluded Domestic Subsidiary” shall mean (a) any Domestic Subsidiary listed on
Schedule E-1 hereto, (b) any Domestic Subsidiary that is a Subsidiary of a Foreign Subsidiary of WH
Capital, or (c) any Domestic Subsidiary substantially all of the assets of which consist, directly
or indirectly, of Equity Interests of Foreign Subsidiaries.

“Excluded Foreign Subsidiary” shall mean (a) any Foreign Subsidiary listed on Schedule
E-1 hereto, together with any Foreign Subsidiary the territorial operations of which coincide with
(and are no larger than) the territorial operations of any Foreign Subsidiary listed on Schedule
E-1 and (b) any Foreign Subsidiary that is a Subsidiary of WH Capital.

“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C
Issuer or any other recipient of any payment to be made by or on account of any obligation of any
Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof or therein) under the Laws of which such recipient is
organized, conducts any trade or business or in which its principal office is located or as a
result of a present or former connection between such recipient and the jurisdiction
(provided that such connection is not attributable to this Agreement or any other Loan
Document) or, in the case of any Lender, in which its applicable Lending Office is located, (b) any
branch profits taxes imposed by the United States or any political subdivision thereof, or any
similar tax imposed by any other jurisdiction described in clause (a) above, (c) any backup
withholding tax that is required by the Code to be withheld from amounts payable to a Lender that
has failed to comply with clause (A) of Section 3.01(e)(ii), (d) in the case of a Foreign
Lender (other than an assignee pursuant to a request by Borrowers under Section 10.13), any
United States withholding tax that (i) is imposed on amounts payable to such Foreign Lender
pursuant to the Laws in force at the time such Foreign Lender becomes a party hereto (or designates
a new Lending Office) or (ii) is attributable to such Foreign Lender’s failure or inability (other
than as a result of a Change in Law) to comply with clause (B) of Section 3.01(e)(ii),
except to the extent that such Foreign Lender (or in the case of a Foreign Lender that becomes a
Lender as a result of an assignment, its assignor) was entitled, at the time of designation of a
new Lending Office (or assignment), to
receive additional amounts from such Borrower with respect to such withholding tax pursuant to
Section 3.01(a)(ii) or (iii), (e) any taxes imposed pursuant to Sections 1471-1474
of the Code, as may be amended, (f) any withholding tax due under the Savings Directive as
transposed into Luxembourg law by the laws dated June 21, 2005 or December 23, 2005 and (g) all
liabilities, penalties, and interest incurred with respect to any of the foregoing.

 

13

 

“Executive Order” has the meaning specified in Section 7.10(b).

“Existing Credit Agreement” means that certain Credit Agreement dated as of July 21,
2006 among the Company, Holdings and the other guarantors party thereto, the lenders party thereto
and Merrill Lynch Capital Corporation, as agent, as the same has been amended prior to the date
hereof.

“Existing Letters of Credit” means those letters of credit issued under the Existing
Credit Agreement and outstanding as of the Closing Date.

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

“Fee Letter” means the letter agreement, dated March 9, 2011, among the Company, the
Administrative Agent and MLPFS.

“Foreign Assets Control Regulations” has the meaning specified in Section
7.10(b).

“Foreign Lender” means, with respect to any Borrower, any Lender that is organized
under the Laws of a jurisdiction other than that in which such Borrower is resident for tax
purposes (including such a Lender when acting in the capacity of the L/C Issuer). For purposes of
this definition, the United States, each State thereof and the District of Columbia shall be deemed
to constitute a single jurisdiction.

“Foreign Obligor Enforceability Exceptions” means (a) as it relates to HIL and any
other Loan Party organized under the laws of Luxembourg, (i) the enforceability of the provisions
hereof with respect to compound interest are subject to the provision of Section 1154 of the
Luxembourg Civil Code (and any successor provision), (ii) contractually agreed evidence may not be
conclusive or binding on a Luxembourg court, (iii) the rights and obligations hereunder binding
successors and assigns may not be enforceable in Luxembourg, if such successor or assign is a
Luxembourg individual or Person organized under the laws of Luxembourg in the absence of an
agreement from any such Luxembourg resident confirming the enforceability thereof, (iv) the
severability of the

 

14

 

provisions of this Agreement or any other Loan Document to
which HIL or any other Loan Party organized under the laws of Luxembourg is party may be
ineffective if a Luxembourg court considers the clause regarding illegality, invalidity or
unenforceability to be a substantive or material clause, (v) the enforceability of a foreign
jurisdiction clause, which may not prevent the parties thereto from initiating legal action before
a Luxembourg court to the extent that summary proceedings seeking conservatory or urgent
provisional measures are taken and which may retain jurisdiction with respect to assets located in
Luxembourg, (vi) the enforceability of contractual provisions in this Agreement or the other Loan
Documents allowing service of process against HIL and any other Loan Party organized under the laws
of Luxembourg at any location other than such Loan Party’s Luxembourg domicile, which may be
overridden by Luxembourg statutory provisions allowing the valid service of process against such
Loan Parties in accordance with applicable Luxembourg laws only at the Luxembourg domicile of such
Loan Party, and (vii) the enforceability of any provision in this Agreement or the other Loan
Documents providing for renunciation, before litigation arise, to the right to bring a claim in a
court, and (b) any provision, whether by statute, common law, civil law, in equity or otherwise, of
any jurisdiction other than Luxembourg or any State or territory of the United States having an
effect similar to any of the foregoing.

“Foreign Obligors” means, collectively, Holdings, HIL and each other Loan Party that
is not a “United States person” as defined in Section 7701(a)(30) of the Code.

“Foreign Subsidiary” means any Subsidiary that is not a “United States person” as
defined in Section 7701(a)(30) of the Code.

“Foreign Subsidiary Guarantor” means a Wholly Owned Subsidiary that is (a) a Material
Subsidiary and (b) a Foreign Subsidiary, but not an Excluded Foreign Subsidiary. As of the Closing
Date, the Foreign Subsidiary Guarantors are WH Intermediate Holdings Ltd., a Cayman Islands
exempted company incorporated with limited liability, and WH Luxembourg Holdings S.à.r.l., a
Luxembourg corporation.

“Foreign Subsidiary Guaranty” means the Guaranty made by the Foreign Subsidiary
Guarantors (other than HIL) in favor of the Administrative Agent, the Lenders, the Cash Management
Banks and the Hedge Banks, substantially in the form of Exhibit G-5.

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

“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect
to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C
Obligations other than L/C Obligations as to which such Defaulting Lender’s participation
obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the
terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable
Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s
participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance
with the terms hereof.

 

15

 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its activities.

“GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

“Governmental Authority” means the government of the United States 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).

“Guarantee” means, as to any Person, any (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien); provided, however, that the
term “Guarantee” shall not include endorsements of instruments for deposit or collection in the
ordinary course of business or reasonable indemnity obligations in effect on the Closing Date or
otherwise entered into in the ordinary course of business, including in connection with any
acquisition or Disposition of assets or incurrence of Indebtedness or other obligations, in any
case to the extent permitted under this Agreement. The amount of any Guarantee shall be deemed to
be an amount equal to the stated or determinable amount of the related primary obligation, or
portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing
Person in good faith. The term “Guarantee” as a verb has a corresponding meaning.

“Guaranties” means, collectively, the Domestic Subsidiary Guaranty, the Foreign
Subsidiary Guaranty, the Company Guaranty, the Holdings Guaranty and the HIL Guaranty.
Subject to the terms thereof, the Guaranties will be the joint and several obligations of the
Guarantors party thereto.

 

16

 

“Guarantors” means, collectively, Holdings, the Company, HIL, each Material Subsidiary
of Holdings listed on Schedule G-1 hereto and each other Wholly Owned Subsidiary that is
required to Guarantee the Loans outstanding hereunder pursuant to Section 6.13 hereof.

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

“Hedge Bank” means any Person that (i) at the time it enters into a Swap Contract
permitted under Article VI and VII, is a Lender or an Affiliate of a Lender, or
(ii) both (x) at the time it entered into a Swap Contract permitted under Article VI and
VII, was a “Lender” or an Affiliate of a “Lender” under the Existing Credit Agreement and
(y) as of the Closing Date is a Lender or an Affiliate of a Lender, in any such case, in its
capacity as a party to such Swap Contract.

“Herbalife Taiwan” means Herbalife Taiwan, Inc., a California corporation.

“HIL” has the meaning specified in the introductory paragraph hereto.

“HIL Guaranty” means the Guaranty made by HIL in favor of the Administrative Agent,
the Lenders, the Cash Management Banks and the Hedge Banks, substantially in the form of
Exhibit G-3.

“HIL Sublimit” means an amount equal to $60,000,000. The HIL Sublimit is part of, and
not in addition to, the Aggregate Commitments.

“Holdings” has the meaning specified in the introductory paragraph hereto.

“Holdings Guaranty” means the Guaranty made by Holdings in favor of the Administrative
Agent, the Lenders, the Cash Management Banks and the Hedge Banks, substantially in the form of
Exhibit G-2.

“Immaterial Subsidiary” means (a) each Subsidiary designated as an Immaterial
Subsidiary on Part (a) of Schedule 5.13, and (b) each future subsidiary designated as an
Immaterial Subsidiary by Holdings in a written notice to the Administrative Agent, in each case,
for so long as any such subsidiary does not (on a consolidated basis with its Subsidiaries) have
assets with a book value in excess of 5% of the consolidated assets of Holdings (as reported in the
most recently published consolidated balance sheet of Holdings prior to the date of determination)
or such Subsidiary’s contribution to Consolidated EBITDA for the most recent four consecutive
fiscal quarter period is in excess of 5%.

 

17

 

“Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money; (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments; (c) all obligations of such Person upon which interest charges
are customarily paid or accrued; (d) all obligations of such Person under conditional sale or other
title retention agreements relating to property purchased by such Person; (e) all obligations of
such Person issued or assumed as the deferred purchase price of property (excluding trade accounts
payable and other accrued liabilities incurred in the ordinary course of business); (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed; (g) all Capital Lease
Obligations, purchase money obligations and Synthetic Lease Obligations of such Person; (h) all
obligations of such Person in respect of Swap Contracts; provided that, the amount of
Indebtedness of the type referred to in this clause (h) of any Person shall be zero unless and
until such Indebtedness shall be terminated, in which case the amount of such Indebtedness shall be
the termination payment due thereunder by such Person; (i) all obligations of such Person as an
account party in respect of letters of credit, letters of guaranty and bankers’ acceptances
provided that, the amount of Indebtedness in respect of such letters of credit and letters
of guaranty shall be zero if and to the extent such letters of credit and letters of guaranty are
cash collateralized; and (j) all Guarantees of such Person in respect of Indebtedness or
obligations of others of the kinds referred to in clauses (a) through (i) above. The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person is liable therefor as a result of
such Person’s ownership interest in or other relationship with such entity, except to the extent
that the terms of such Indebtedness provide that such Person is not liable therefor.

“Indemnified Taxes” means Taxes other than Excluded Taxes.

“Indemnitees” has the meaning specified in Section 10.04(b).

“Information” has the meaning specified in Section 10.07.

“Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a Eurocurrency Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

“Interest Period” means (a) as to each Eurocurrency Rate Loan, the period commencing
on the date such Eurocurrency Rate Loan is disbursed or converted to or continued as a Eurocurrency
Rate Loan and ending on the date one day, one week or one, two, three or six months thereafter, as
selected by the applicable Borrower in its Committed Loan Notice or such other period that is
twelve months or less requested by the applicable Borrower and consented to by all the Lenders and
(b) as to each Peso Rate Loan, the period commencing on the date such Peso Rate Loan is disbursed
or continued as a Peso Rate Loan and ending on the date twenty-eight (28) days thereafter (provided
that at any time the Peso Rate shall be determined by reference to the CCP Rate in accordance with
Section 3.03, the relevant Interest Period shall end on the date thirty (30) days
thereafter); provided that:

(i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

 

18

 

(ii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar month at the
end of such Interest Period) shall end on the last Business Day of the calendar month at the
end of such Interest Period; and

(iii) no Interest Period shall extend beyond the Maturity Date.

“Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other
Person, or (c) the purchase or other acquisition (in one transaction or a series of related
transactions) of assets of another Person that constitute a business unit or all or substantially
all of the business of such Person. For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

“IRS” means the United States Internal Revenue Service.

“ISP” means, with respect to any Letter of Credit, the “International Standby
Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such
later version thereof as may be in effect at the time of issuance).

“Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and a
Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of Credit.

“JPMorgan” means J.P. Morgan Securities LLC and any successor thereto.

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

“L/C Advance” means, with respect to each Lender, such Lender’s funding of its
participation in any L/C Borrowing in accordance with its Applicable Percentage. All L/C Advances
shall be denominated in Dollars.

 

19

 

“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter
of Credit which has not been reimbursed on the date when made or refinanced as a Committed
Borrowing. All L/C Borrowings shall be denominated in Dollars.

“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

“L/C Issuer” means, collectively, Bank of America in its capacity as an issuer of
Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder, together with
any other Lender designated by Holdings as a “L/C Issuer” with the consent of such Lender that is
reasonably acceptable to the Administrative Agent.

“L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings. For purposes of computing the amount available
to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.09. For all purposes of this Agreement, if on any date of
determination a Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

“Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

“Lending Office” means, as to any Lender, collectively, the office, offices, branch or
branches of such Lender described as such in such Lender’s Administrative Questionnaire, or such
other office, offices, branch or branches as a Lender may from time to time notify the Borrowers
and the Administrative Agent.

“Letter of Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit. A Letter of Credit may be a commercial letter of credit or a standby
letter of credit. Letters of Credit may be issued in Dollars or in an Alternative Currency.

“Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

“Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

“Letter of Credit Fee” has the meaning specified in Section 2.03(h).

“Letter of Credit Sublimit” means an amount equal to $200,000,000. The Letter of
Credit Sublimit is part of, and not in addition to, the Aggregate Commitments (and is independent
of, and shall not be reduced by, the Alternative Currency Sublimit).

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

 

20

 

“Loan” means an extension of credit by a Lender to a Borrower under Article II
in the form of a Committed Loan or a Swing Line Loan.

“Loan Documents” means this Agreement, each Designated Borrower Request and Assumption
Agreement, each Note, each Issuer Document, the Fee Letter, the Collateral Documents and the
Guaranties.

“Loan Parties” means, collectively, the Company, Holdings, HIL, each Guarantor and
each Designated Borrower.

“Mandatory Cost” means, with respect to any period, the percentage rate per annum
determined in accordance with Schedule 1.01.

“Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the business operations, assets, or financial condition of Holdings and its
Subsidiaries taken as a whole; (b) a material impairment of the rights and remedies of the
Administrative Agent or any Lender under any of the Loan Documents or of the ability of the Loan
Parties, taken as a whole, to perform their obligations under the Loan Documents; or (c) a material
adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party
of any Loan Document to which it is a party.

“Material Subsidiary” means each Subsidiary other than any Immaterial Subsidiary.

“Maturity Date” means the fifth anniversary of the Closing Date; provided,
however, that if such date is not a Business Day, the Maturity Date shall be the next
preceding Business Day.

“MLPFS” means Merrill Lynch, Pierce, Fenner & Smith Incorporated and any successor
thereto.

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

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

“Note” means a promissory note made by a Borrower in favor of a Lender evidencing
Loans made by such Lender to such Borrower, substantially in the form of Exhibit C.

“Obligations” means all advances to, and debts, liabilities, obligations, covenants
and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any
Loan, Letter of Credit, Secured Cash Management Agreement or Secured Hedge Agreement, whether
direct or indirect (including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees that accrue
after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding
under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding.

 

21

 

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

“Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, or similar 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.

“Outstanding Amount” means (i) with respect to Committed Loans on any date, the Dollar
Equivalent amount of the aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of such Committed Loans occurring on such date; (ii) with
respect to Swing Line Loans on any date, the aggregate outstanding principal amount thereof after
giving effect to any borrowings and prepayments or repayments of such Swing Line Loans occurring on
such date; and (iii) with respect to any L/C Obligations on any date, the Dollar Equivalent amount
of the aggregate outstanding amount of such L/C Obligations on such date after giving effect to any
L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the
L/C Obligations as of such date, including as a result of any reimbursements by the Borrowers of
Unreimbursed Amounts.

“Overnight Rate” means, for any day, (a) with respect to any amount denominated in
Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the
Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case may be, in accordance
with banking industry rules on interbank compensation, and (b) with respect to any amount
denominated in an Alternative Currency, the rate of interest per annum at which overnight deposits
in the applicable Alternative Currency, in an amount approximately equal to the amount with respect
to which such rate is being determined, would be offered for such day by a branch or Affiliate of
Bank of America in the applicable offshore interbank market for such currency to major banks in
such interbank market.

“Participant” has the meaning specified in Section 10.06(d).

“Participating Member State” means each state so described in any EMU Legislation.

“PBGC” means the Pension Benefit Guaranty Corporation.

 

22

 

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

“Perfection Certificate” means a certificate in substantially the form of Exhibit
L.

“Permitted Lien” has the meaning specified in Section 7.01.

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

“Peso Rate” means, for any Interest Period with respect to a Peso Rate Loan, the rate
per annum equal to the Equilibrium Interbank Interest Rate for a twenty-eight day period (“TIIE
Rate”), as published by Banco de Mexico in the Official Daily of the Federation of Mexico on
the Business Day on which such Interest Period is to commence.

“Peso Rate Loan” means a Committed Loan that bears interest at a rate based on the
Peso Rate. Peso Rate Loans may only be denominated in Pesos. All Committed Loans denominated in
Pesos must be Peso Rate Loans.

“Pesos” means the lawful currency of Mexico.

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

“Platform” has the meaning specified in Section 6.02.

“Public Lender” has the meaning specified in Section 6.02.

“Register” has the meaning specified in Section 10.06(c).

“Ratings Decrease Date” has the meaning specified in Section 6.15.

“Ratings Increase Date” has the meaning specified in Section 2.16.

“Ratings Increase Period” means any period beginning on the date of occurrence of a
Ratings Increase Date and ending on the next succeeding Ratings Decrease Date.

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

“Replacement Lien” has the meaning specified in Section 7.01(b).

 

23

 

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

“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit
Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line
Loan Notice.

“Required Lenders” means, as of any date of determination, Lenders having more than
50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings
(with the aggregate amount of each Lender’s risk participation and funded participation in L/C
Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total Outstandings
held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a
determination of Required Lenders.

“Responsible Officer” means the chief executive officer, president, director, chief
financial officer, chief operating officer, secretary, assistant secretary, treasurer, assistant
treasurer or controller of a Loan Party, and, in the case of each Loan Party organized in a
jurisdiction other than a State or territory of the United States, a director or managing partner
(or, in each case, the foreign equivalent thereof), and, solely for purposes of notices given
pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by
any of the foregoing in a notice to the Administrative Agent. Any document delivered hereunder
that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such
Loan Party.

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

“Revaluation Date” means (a) with respect to any Loan, each of the following: (i)
each date of a Borrowing of a Eurocurrency Rate Loan denominated in an Alternative Currency or a
Peso Rate Loan, (ii) each date of a continuation of a Eurocurrency Rate Loan denominated in an
Alternative Currency or a Peso Rate Loan pursuant to Section 2.02, and (iii) such
additional dates as the Administrative Agent shall determine or the Required Lenders shall require;
and (b) with respect to any Letter of Credit, each of the following: (i) each date of issuance of
a Letter of Credit denominated in an Alternative Currency, (ii) each date of an amendment of any
such Letter of Credit having the effect of increasing the amount thereof, (iii) each date of any
payment by the L/C Issuer under any Letter of Credit denominated in an Alternative Currency, (iv)
in the
case of the Existing Letters of Credit, the Closing Date, and (v) such additional dates as the
Administrative Agent or the L/C Issuer shall determine or the Required Lenders shall require.

 

24

 

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

“Same Day Funds” means (a) with respect to disbursements and payments in Dollars,
immediately available funds, and (b) with respect to disbursements and payments in an Alternative
Currency, same day or other funds as may be determined by the Administrative Agent or the L/C
Issuer, as the case may be, to be customary in the place of disbursement or payment for the
settlement of international banking transactions in the relevant Alternative Currency.

“Savings Directive” means the Council Directive 2003/48/EC dated June 3, 2003 on
taxation of savings income in the form of interest payments.

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

“Secured Cash Management Agreement” means any Cash Management Agreement that is
entered into by and between any Loan Party and any Cash Management Bank.

“Secured Hedge Agreement” means any Swap Contract permitted under Article VI
and VII that is entered into by and between any Loan Party and any Hedge Bank.

“Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C
Issuer, the Hedge Banks, the Cash Management Banks, each co-agent or sub-agent appointed by the
Administrative Agent from time to time pursuant to Section 9.05, and the other Persons the
Obligations owing to which are or are purported to be secured by the Collateral under the terms of
the Collateral Documents.

“Security Agreement” has the meaning specified in Section 4.01(a)(iii).

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

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

 

25

 

“Special Notice Currency” means at any time an Alternative Currency, other than the
currency of a country that is a member of the Organization for Economic Cooperation and Development
at such time located in North America or Europe.

“Spot Rate” for a currency means the rate determined by the Administrative Agent or
the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity as the
spot rate for the purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 8:00 a.m. on the date two Business Days
prior to the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the L/C Issuer may obtain such spot rate from another financial institution
designated by the Administrative Agent or the L/C Issuer if the Person acting in such capacity does
not have as of the date of determination a spot buying rate for any such currency; and
provided further that the L/C Issuer may use such spot rate quoted on the date as
of which the foreign exchange computation is made in the case of any Letter of Credit denominated
in an Alternative Currency.

“Sublimit” means, as the case may be, the Alternative Currency Sublimit, the Letter of
Credit Sublimit, the HIL Sublimit or the Swing Line Sublimit.

“Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of Holdings.

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

 

26

 

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

“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

“Swing Line Loan” has the meaning specified in Section 2.04(a).

“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B.

“Swing Line Sublimit” means an amount equal to the lesser of (a) $50,000,000 and (b)
the Aggregate Commitments. The Swing Line Sublimit is part of, and not in addition to, the
Aggregate Commitments.

“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment); provided, however, that, the
term “Synthetic Lease Obligation” shall in any event exclude any obligations that are liabilities
of any such Person, as lessee, under any operating lease entered into in the ordinary course of
business.

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

“Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges imposed by any
Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

“Threshold Amount” means an amount equal to 5% of the consolidated assets of Holdings
(as reported in the consolidated balance sheet of Holdings and its Subsidiaries most recently
delivered pursuant to Section 6.01(a) or (b) or, prior to the delivery of any such balance sheet,
the consolidated balance sheet of Holdings and its Subsidiaries as at December 31, 2010).

 

27

 

“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

“Trading With the Enemy Act” has the meaning specified in Section 7.10(b).

“Type” means, with respect to a Committed Loan, its character as a Base Rate Loan, a
Eurocurrency Rate Loan or Peso Rate Loan.

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

“United States” and “U.S.” mean the United States of America.

“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

“Wholly Owned Subsidiary” means, as to any Person, (a) any corporation 100% of whose
capital stock (other than directors’ qualifying shares or shares held by a nominee holder) is at
the time owned by such Person and/or one or more Wholly Owned Subsidiaries of such person and (b)
any partnership, association, joint venture, limited liability company or other entity in which
such Person and/or one or more Wholly Owned Subsidiaries of such Person have a 100% Equity Interest
at such time.

“WH Capital” means WH Capital Corporation, a Nevada corporation and Wholly-Owned
Subsidiary of Holdings.

1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

(a) The definitions of terms herein shall apply equally to the singular and plural forms of
the terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word
“will” shall be construed to have the same meaning and effect as the word “shall.”
Unless the context requires otherwise, (i) any definition of or reference to any agreement,
instrument or other document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended, restated,
supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein or in any other Loan Document), (ii) any reference herein to any
Person shall be construed to include such Person’s successors and assigns, (iii) the words
“herein,” “hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to
any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections,
Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall
include all statutory and regulatory provisions consolidating, amending, replacing or interpreting
such law and any reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time, and (vi) 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.

 

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(b) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and
including.”

(c) Section headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any other Loan
Document.

1.03 Accounting Terms. (a) Generally. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted pursuant to this
Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing the Audited Financial
Statements, except as otherwise specifically prescribed herein.

(b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Borrowers or
the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrowers
shall negotiate in good faith to amend such ratio or requirement to preserve the original intent
thereof in light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the Borrowers shall provide
to the Administrative Agent and the Lenders financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect to such change in
GAAP.

1.04 Rounding. Any financial ratios required to be maintained by the Borrowers pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

1.05 Exchange Rates; Currency Equivalents. (a) The Administrative Agent or the L/C Issuer, as
applicable, shall determine the Spot Rates as of each Revaluation Date to be used for calculating
Dollar Equivalent amounts of Credit Extensions and Outstanding Amounts denominated in Alternative
Currencies. Such Spot Rates shall become effective as of such Revaluation Date and shall be the
Spot Rates employed in converting any amounts between the applicable currencies until the next
Revaluation Date to occur. Except for purposes of financial statements delivered by Loan Parties
hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the
applicable amount of any currency (other than Dollars) for purposes of the Loan Documents shall be
such Dollar Equivalent amount as so determined by the Administrative Agent or the L/C Issuer, as
applicable.

 

29

 

(b) Wherever in this Agreement in connection with a Committed Borrowing, conversion,
continuation or prepayment of a Eurocurrency Rate Loan or a Peso Rate Loan or the issuance,
amendment or extension of a Letter of Credit, an amount, such as a required minimum
or multiple amount, is expressed in Dollars, but such Committed Borrowing, Eurocurrency Rate
Loan, Peso Rate Loan or Letter of Credit is denominated in an Alternative Currency, such amount
shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to the nearest
unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the
Administrative Agent or the L/C Issuer, as the case may be.

1.06 Additional Alternative Currencies. (a) The Borrowers may from time to time request that
Eurocurrency Rate Loans be made and/or Letters of Credit be issued in a currency other than those
specifically listed in the definition of “Alternative Currency;” provided that such
requested currency is a lawful currency (other than Dollars) that is readily available and freely
transferable and convertible into Dollars. In the case of any such request with respect to the
making of Eurocurrency Rate Loans, such request shall be subject to the approval of the
Administrative Agent and the Lenders; and in the case of any such request with respect to the
issuance of Letters of Credit, such request shall be subject to the approval of the Administrative
Agent and the L/C Issuer.

(b) Any such request shall be made to the Administrative Agent not later than 8:00 a.m., 15
Business Days prior to the date of the desired Credit Extension (or such other time or date as may
be agreed by the Administrative Agent and, in the case of any such request pertaining to Letters of
Credit, the L/C Issuer, in its or their sole discretion). In the case of any such request
pertaining to Eurocurrency Rate Loans, the Administrative Agent shall promptly notify each Lender
thereof; and in the case of any such request pertaining to Letters of Credit, the Administrative
Agent shall promptly notify the L/C Issuer thereof. Each Lender (in the case of any such request
pertaining to Eurocurrency Rate Loans) or the L/C Issuer (in the case of a request pertaining to
Letters of Credit) shall notify the Administrative Agent, not later than 8:00 a.m., ten Business
Days after receipt of such request whether it consents, in its sole discretion, to the making of
Eurocurrency Rate Loans or the issuance of Letters of Credit, as the case may be, in such requested
currency.

(c) Any failure by a Lender or the L/C Issuer, as the case may be, to respond to such request
within the time period specified in the preceding sentence shall be deemed to be a refusal by such
Lender or the L/C Issuer, as the case may be, to permit Eurocurrency Rate Loans to be made or
Letters of Credit to be issued in such requested currency. If the Administrative Agent and all the
Lenders consent to making Eurocurrency Rate Loans in such requested currency, the Administrative
Agent shall so notify the Borrowers and such currency shall thereupon be deemed for all purposes to
be an Alternative Currency hereunder for purposes of any Committed Borrowings of Eurocurrency Rate
Loans; and if the Administrative Agent and the L/C Issuer consent to the issuance of Letters of
Credit in such requested currency, the Administrative Agent shall so notify the Borrowers and such
currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for
purposes of any Letter of Credit issuances. If the Administrative Agent shall fail to obtain
consent to any request for an additional currency under this Section 1.06, the
Administrative Agent shall promptly so notify the Borrowers. Any specified currency of an Existing
Letter of Credit that is neither Dollars nor one of the Alternative Currencies specifically listed
in the definition of “Alternative Currency” shall be deemed an Alternative Currency with respect to
such Existing Letter of Credit only.

 

30

 

1.07 Change of Currency. (a) Each obligation of the Borrowers to make a payment denominated
in the national currency unit of any member state of the European Union that adopts the Euro as its
lawful currency after the date hereof shall be redenominated into Euro at the time of such adoption
(in accordance with the EMU Legislation). If, in relation to the currency of any such member
state, the basis of accrual of interest expressed in this Agreement in respect of that currency
shall be inconsistent with any convention or practice in the London interbank market for the basis
of accrual of interest in respect of the Euro, such expressed basis shall be replaced by such
convention or practice with effect from the date on which such member state adopts the Euro as its
lawful currency; provided that if any Committed Borrowing in the currency of such member
state is outstanding immediately prior to such date, such replacement shall take effect, with
respect to such Committed Borrowing, at the end of the then current Interest Period.

(b) Each provision of this Agreement shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
the adoption of the Euro by any member state of the European Union and any relevant market
conventions or practices relating to the Euro.

(c) Each provision of this Agreement also shall be subject to such reasonable changes of
construction as the Administrative Agent may from time to time specify to be appropriate to reflect
a change in currency of any other country and any relevant market conventions or practices relating
to the change in currency.

1.08 Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Pacific time (daylight or standard, as applicable).

1.09 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of
Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter
of Credit in effect at such time; provided, however, that with respect to any
Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides
for one or more automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of
Credit after giving effect to all such increases, whether or not such maximum stated amount is in
effect at such time.

 

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ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

2.01 Committed Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make loans (each such loan, a “Committed Loan”) to each Borrower in
Dollars or in one or more Alternative Currencies from time to time, on any Business Day during the
Availability Period in an aggregate amount for all the Borrowers not to exceed at any time
outstanding the amount of such Lender’s Commitment; provided, however, that after
giving effect to any Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate
Commitments, (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender,
plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C
Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all
Swing Line Loans shall not exceed such Lender’s Commitment, (iii) the aggregate Outstanding Amount
of all Committed Loans made to HIL shall not exceed the HIL Sublimit and (iv) the aggregate
Outstanding Amount of all Committed Loans denominated in Alternative Currencies shall not exceed
the Alternative Currency Sublimit. Within the limits of each Lender’s Commitment, and subject to
the other terms and conditions hereof, each Borrower may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01. Committed Loans
may be Base Rate Loans, Eurocurrency Rate Loans or Peso Rate Loans, as further provided herein.
The Loans to each Borrower shall be the sole and several liability of that Borrower and the other
Borrowers shall not be co-obligors or have any joint liability for such Loans.

2.02 Borrowings, Conversions and Continuations of Committed Loans. (a) Each Committed
Borrowing, each conversion of Committed Loans from one Type to the other, and each continuation of
Eurocurrency Rate Loans and Peso Rate Loans shall be made upon the applicable Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than (i) 10:00 a.m. three Business Days
prior to the requested date of any Borrowing of, conversion to or continuation of Eurocurrency Rate
Loans denominated in Dollars, (ii) 10:00 a.m. four Business Days (or five Business Days in the case
of a Special Notice Currency) prior to the requested date of any Borrowing or continuation of
Eurocurrency Rate Loans denominated in Alternative Currencies or of Peso Rate Loans, and (iii) 9:00
a.m. on the requested date of any Borrowing of Base Rate Committed Loans; provided,
however, that if a Borrower wishes to request Eurocurrency Rate Loans having an Interest
Period other than one day, one week or one, two, three or six months in duration as provided in the
definition of “Interest Period,” the applicable notice must be received by the Administrative Agent
not later than 10:00 a.m. (i) four Business Days prior to the requested date of such Borrowing,
conversion or continuation of Eurocurrency Rate Loans denominated in Dollars, or (ii) five Business
Days (or six Business days in the case of a Special Notice Currency) prior to the requested date of
such Borrowing, conversion or continuation of Eurocurrency Rate Loans denominated in Alternative
Currencies, whereupon the Administrative Agent shall give prompt notice to the Lenders of such
request and determine whether the requested Interest Period is acceptable to all of them. Not
later than 10:00 a.m., (i) three Business Days before the requested date of such Borrowing,
conversion or continuation of Eurocurrency Rate Loans denominated in Dollars, or (ii) four Business
Days (or five Business days in the case of a Special Notice Currency) prior to the requested date
of such Borrowing, conversion or continuation of Eurocurrency Rate Loans denominated in Alternative
Currencies, the Administrative Agent shall notify the applicable Borrower (which notice may be by
telephone) whether or not the requested Interest Period has been consented to by all the Lenders.
Each telephonic notice by a Borrower pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of such Borrower. Each Borrowing of, conversion to
or continuation of Eurocurrency Rate Loans or Peso Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof. Except as provided in Sections
2.03(c) and 2.04(c), each Committed Borrowing of or conversion to Base Rate Committed
Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof.
Each Committed Loan Notice (whether telephonic or written) shall specify (i) whether the
applicable Borrower is requesting a Committed Borrowing, a conversion

 

32

 

of Committed Loans from one
Type to the other, or a continuation of Eurocurrency Rate Loans
or Pesos Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the
case may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be
borrowed, converted or continued, (iv) the Type of Committed Loans to be borrowed or to which
existing Committed Loans are to be converted, (v) if applicable, the duration of the Interest
Period with respect thereto, (vi) the currency of the Committed Loans to be borrowed, and (vii) the
identity of the applicable Borrower. If the applicable Borrower fails to specify a currency in a
Committed Loan Notice requesting a Borrowing, then the Committed Loans so requested shall be made
in Dollars. If the applicable Borrower fails to specify a Type of Committed Loan in a Committed
Loan Notice or if the applicable Borrower fails to give a timely notice requesting a conversion or
continuation, then the applicable Committed Loans shall be made as, or converted to, Base Rate
Loans; provided, however, that in the case of a failure to timely request a
continuation of Committed Loans denominated in an Alternative Currency, such Loans shall be
continued as Eurocurrency Rate Loans or Peso Rate Loans in their original currency with an Interest
Period of one month, in the case of Eurocurrency Rate Loans, or twenty-eight or thirty days, in the
case of Peso Rate Loans (and in accordance with the definition of Interest Period). Any automatic
conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurocurrency Rate Loans. If a Borrower requests a Borrowing
of, conversion to, or continuation of Eurocurrency Rate Loans in any such Committed Loan Notice,
but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of
one month. If a Committed Loan Notice fails to specify the identity of the applicable Borrower,
then the Committed Loans so requested shall be made to the Borrower submitting such Committed Loan
Notice; provided, however, that in the case of a failure to identify the applicable
Borrower in the case of a request for a continuation of Committed Loans, such Loans shall be
continued as Loans made to the Borrower to which such Loans were initially made. No Committed Loan
may be converted into or continued as a Committed Loan denominated in a different currency, but
instead must be prepaid in the original currency of such Committed Loan and reborrowed in the other
currency.

(b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount (and currency) of its Applicable Percentage of the applicable
Committed Loans, and if no timely notice of a conversion or continuation is provided by the
applicable Borrower, the Administrative Agent shall notify each Lender of the details of any
automatic conversion to Base Rate Loans or continuation of Committed Loans denominated in a
currency other than Dollars, in each case as described in the preceding subsection. In the case of
a Committed Borrowing, each Lender shall make the amount of its Committed Loan available to the
Administrative Agent in Same Day Funds at the Administrative Agent’s Office for the applicable
currency not later than 12:00 noon, in the case of any Committed Loan denominated in Dollars, and
not later than the Applicable Time specified by the Administrative Agent in the case of any
Committed Loan in an Alternative Currency, in each case on the Business Day specified in the
applicable Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in
Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section
4.01), the Administrative Agent shall make all funds so received available to the Company or
the other applicable Borrower in like funds as received by the Administrative Agent either by (i)
crediting the account of such Borrower on the books of Bank of America with the amount of such
funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to
(and reasonably acceptable to) the Administrative Agent by the applicable Borrower;
provided, however, that if, on the date the Committed Loan Notice with
respect to such Borrowing denominated in Dollars is given by the Company, there are L/C
Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the
payment in full of any such L/C Borrowings, and, second, shall be made available to the
applicable Borrower as provided above.

 

33

 

(c) Except as otherwise provided herein, a Eurocurrency Rate Loan or a Peso Rate Loan may be
continued or converted only on the last day of an Interest Period for such Loan. During the
existence of a Default, no Loans may be requested as, converted to or continued as Eurocurrency
Rate Loans (whether in Dollars or any Alternative Currency) without the consent of the Required
Lenders, and the Required Lenders may demand that any or all of the then outstanding Eurocurrency
Rate Loans or Peso Rate Loans denominated in an Alternative Currency be prepaid, or redenominated
into Dollars in the amount of the Dollar Equivalent thereof, on the last day of the then current
Interest Period with respect thereto.

(d) The Administrative Agent shall promptly notify the Company and the Lenders of the interest
rate applicable to any Interest Period for Eurocurrency Rate Loans or Peso Rate Loans upon
determination of such interest rate. At any time that Base Rate Loans are outstanding, the
Administrative Agent shall notify the Company and the Lenders of any change in Bank of America’s
prime rate used in determining the Base Rate promptly following the public announcement of such
change.

(e) After giving effect to all Committed Borrowings, all conversions of Committed Loans from
one Type to the other, and all continuations of Committed Loans as the same Type, there shall not
be more than ten Interest Periods in effect with respect to Committed Loans.

2.03 Letters of Credit. (a) The Letter of Credit Commitment.

(i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer
agrees, in reliance upon the agreements of the Lenders set forth in this Section
2.03, (1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit
denominated in Dollars or in one or more Alternative Currencies for the account of
any Borrower or Subsidiary, and to amend or extend Letters of Credit previously
issued by it, in accordance with subsection (b) below, and (2) to honor drawings
under the Letters of Credit; and (B) the Lenders severally agree to participate in
Letters of Credit issued for the account of any Borrower or Subsidiary and any
drawings thereunder; provided that after giving effect to any L/C Credit
Extension with respect to any Letter of Credit, (w) the Total Outstandings shall not
exceed the Aggregate Commitments, (x) the aggregate Outstanding Amount of the
Committed Loans of any Lender, plus such Lender’s Applicable Percentage of
the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable
Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such
Lender’s Commitment, (y) the Outstanding Amount of the L/C Obligations shall not
exceed the Letter of Credit Sublimit and (z) the Outstanding Amount of all L/C
Obligations denominated in Alternative Currencies shall not exceed $100,000,000.
Each request by a Borrower for the
issuance or amendment of a Letter of Credit shall be deemed to be a
representation by such Borrower that the L/C Credit Extension so requested complies
with the conditions set forth in the proviso to the preceding sentence. Within the
foregoing limits, and subject to the terms and conditions hereof, the Borrowers’
ability to obtain Letters of Credit shall be fully revolving, and accordingly the
Borrowers may, during the foregoing period, obtain Letters of Credit to replace
Letters of Credit that have expired or that have been drawn upon and reimbursed.
All Existing Letters of Credit shall be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the terms
and conditions hereof.

 

34

 

(ii) The L/C Issuer shall not issue any Letter of Credit, if:

(A) subject to Section 2.03(b)(iii), the expiry date of such requested
Letter of Credit would occur more than twelve months after the date of
issuance or last extension, unless the Required Lenders have approved such
expiry date; or

(B) the expiry date of such requested Letter of Credit would occur
after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date.

(iii) The L/C Issuer shall not be under any obligation to issue any Letter of
Credit if:

(A) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer
from issuing such Letter of Credit, or any Law applicable to the L/C Issuer
or any request or directive (whether or not having the force of law) from
any Governmental Authority with jurisdiction over the L/C Issuer shall
prohibit, or request that the L/C Issuer refrain from, the issuance of
letters of credit generally or such Letter of Credit in particular or shall
impose upon the L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the L/C Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the L/C Issuer any unreimbursed loss, cost or expense which was
not applicable on the Closing Date and which the L/C Issuer in good faith
deems material to it;

(B) the issuance of such Letter of Credit would violate one or more
policies of the L/C Issuer applicable to letters of credit generally;

(C) except as otherwise agreed by the Administrative Agent and the L/C
Issuer, such Letter of Credit is in an initial stated amount less than
$25,000, in the case of a commercial Letter of Credit, or $100,000, in the
case of a standby Letter of Credit;

 

35

 

(D) except as otherwise agreed by the Administrative Agent and the L/C
Issuer, such Letter of Credit is to be denominated in a currency other than
Dollars or an Alternative Currency;

(E) the L/C Issuer does not as of the issuance date of such requested
Letter of Credit issue Letters of Credit in the requested currency; or

(F) a default of any Lender’s obligations to fund under Section
2.03(c) exists or any Lender is at such time a Defaulting Lender
hereunder, unless the L/C Issuer has entered into arrangements, including
the delivery of Cash Collateral, satisfactory to the L/C Issuer (in its sole
discretion) with the Borrowers or such Lender to eliminate the L/C Issuer’s
actual or potential Fronting Exposure (after giving effect to Section
2.18(a)(iv)) with respect to the Defaulting Lender arising from either
the Letter of Credit then proposed to be issued or that Letter of Credit and
all other L/C Obligations as to which the L/C Issuer has actual or potential
Fronting Exposure, as it may elect in its sole discretion.

(iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer
would not be permitted at such time to issue such Letter of Credit in its amended
form under the terms hereof.

(v) The L/C Issuer shall be under no obligation to amend any Letter of Credit
if (A) the L/C Issuer would have no obligation at such time to issue such Letter of
Credit in its amended form under the terms hereof, or (B) the beneficiary of such
Letter of Credit does not accept the proposed amendment to such Letter of Credit.

(vi) The L/C Issuer shall act on behalf of the Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith, and the L/C
Issuer shall have all of the benefits and immunities (A) provided to the
Administrative Agent in Article IX with respect to any acts taken or
omissions suffered by the L/C Issuer in connection with Letters of Credit issued by
it or proposed to be issued by it and Issuer Documents pertaining to such Letters of
Credit as fully as if the term “Administrative Agent” as used in Article IX
included the L/C Issuer with respect to such acts or omissions, and (B) as
additionally provided herein with respect to the L/C Issuer.

 

36

 

(b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of
Credit.

(i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the applicable Borrower delivered to the L/C Issuer (with a copy to
the Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of such Borrower. Such
Letter of Credit Application must be received by the L/C Issuer and the
Administrative Agent not later than 11:00 a.m. at least two Business Days (or
such later date and time as the Administrative Agent and the L/C Issuer may agree in
a particular instance in their sole discretion) prior to the proposed issuance date
or date of amendment, as the case may be. In the case of a request for an initial
issuance of a Letter of Credit, such Letter of Credit Application shall specify in
form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of
the requested Letter of Credit (which shall be a Business Day); (B) the amount and
currency thereof; (C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary in case
of any drawing thereunder; (F) the full text of any certificate to be presented by
such beneficiary in case of any drawing thereunder; (G) the purpose and nature of
the requested Letter of Credit; and (H) such other matters as the L/C Issuer may
require. In the case of a request for an amendment of any outstanding Letter of
Credit, such Letter of Credit Application shall specify in form and detail
satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the
proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and (D) such other matters as the L/C Issuer may require.
Additionally, the applicable Borrower shall furnish to the L/C Issuer and the
Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer Documents, as
the L/C Issuer or the Administrative Agent may require.

(ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer
will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application from
the applicable Borrower and, if not, the L/C Issuer will provide the Administrative
Agent with a copy thereof. Unless the L/C Issuer has received written notice from
any Lender, the Administrative Agent or any Loan Party, at least one Business Day
prior to the requested date of issuance or amendment of the applicable Letter of
Credit, that one or more applicable conditions contained in Article IV shall
not then be satisfied, then, subject to the terms and conditions hereof, the L/C
Issuer shall, on the requested date, issue a Letter of Credit for the account of the
applicable Borrower (or the applicable Subsidiary) or enter into the applicable
amendment, as the case may be, in each case in accordance with the L/C Issuer’s
usual and customary business practices. 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 L/C Issuer a risk participation in such
Letter of Credit in an amount equal to the product of such Lender’s Applicable
Percentage times the amount of such Letter of Credit.

 

37

 

(iii) If the applicable Borrower so requests in any applicable Letter of Credit
Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue
a Letter of Credit that has automatic extension provisions (each, an
“Auto-Extension Letter of Credit”); provided that any such
Auto-Extension Letter of Credit must permit the L/C Issuer to prevent any such
extension at least once in each twelve-month period (commencing with the date of
issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof
not later than a day (the
“Non-Extension Notice Date”) in each such twelve-month period to be
agreed upon at the time such Letter of Credit is issued. Unless otherwise directed
by the L/C Issuer, the applicable Borrower shall not be required to make a specific
request to the L/C Issuer for any such extension. Once an Auto-Extension Letter of
Credit has been issued, the Lenders shall be deemed to have authorized (but may not
require) the L/C Issuer to permit the extension of such Letter of Credit at any time
to an expiry date not later than the Letter of Credit Expiration Date;
provided, however, that the L/C Issuer shall not permit any such
extension if (A) the L/C Issuer has determined that it would not be permitted, or
would have no obligation, at such time to issue such Letter of Credit in its revised
form (as extended) under the terms hereof (by reason of the provisions of clause
(ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received
notice (which may be by telephone or in writing) on or before the day that is seven
Business Days before the Non-Extension Notice Date (1) from the Administrative Agent
that the Required Lenders have elected not to permit such extension or (2) from the
Administrative Agent, any Lender or the applicable Borrower that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied, and
in each such case directing the L/C Issuer not to permit such extension.

(iv) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the L/C Issuer will also deliver to the applicable Borrower and the
Administrative Agent a true and complete copy of such Letter of Credit or amendment.

(c) Drawings and Reimbursements; Funding of Participations.

(i) Upon receipt from the beneficiary of any Letter of Credit of any notice of
a drawing under such Letter of Credit, the L/C Issuer shall notify the applicable
Borrower and the Administrative Agent thereof. In the case of any reimbursement of
a drawing under a Letter of Credit denominated in an Alternative Currency, the L/C
Issuer shall notify the applicable Borrower of the Dollar Equivalent of the amount
of the drawing promptly following the determination thereof. Not later than 3:00
p.m. on the date of any payment by the L/C Issuer under a Letter of Credit, to the
extent the relevant Borrower has received notice that such payment is to be made by
8:00 a.m. on such date or, in the event such notice is received after 8:00 a.m. on
such date by not later than 12:00 p.m. on the next succeeding Business Day (each
such date, an “Honor Date”), the applicable Borrower shall reimburse the L/C
Issuer through the Administrative Agent in an amount equal to the Dollar Equivalent
of the amount of such drawing and in Dollars. If the applicable Borrower fails to
so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly
notify each Lender of the Honor Date, the amount of the unreimbursed drawing
(expressed in Dollars in the amount of the Dollar Equivalent thereof in the case of
a Letter of Credit denominated in an Alternative Currency) (the “Unreimbursed
Amount”), and the amount of such Lender’s Applicable Percentage thereof. In
such event, the applicable Borrower shall be deemed to have requested a Committed
Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans, but
subject to the amount of the unutilized portion of the Aggregate Commitments and the
conditions set forth in Section 4.02 (other than the delivery of a Committed
Loan Notice). Any notice given by the L/C Issuer or the Administrative Agent
pursuant to this Section 2.03(c)(i) may be given by telephone 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.

 

38

 

(ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the L/C Issuer,
in Dollars, at the Administrative Agent’s Office for Dollar-denominated payments in
an amount equal to its Applicable Percentage of the Unreimbursed Amount not later
than 10:00 a.m. on the Business Day specified in such notice by the Administrative
Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each
Lender that so makes funds available shall be deemed to have made a Base Rate
Committed Loan to the applicable Borrower in such amount. The Administrative Agent
shall remit the funds so received to the L/C Issuer in Dollars.

(iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Committed Borrowing of Base Rate Loans because the conditions set forth in
Section 4.02 cannot be satisfied or for any other reason, the applicable
Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in
the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing
shall be due and payable on demand (together with interest) and shall bear interest
at the Default Rate. In such event, each Lender’s payment to the Administrative
Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii)
shall be deemed payment in respect of its participation in such L/C Borrowing and
shall constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this Section 2.03.

(iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any
Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such
amount shall be solely for the account of the L/C Issuer.

(v) Each Lender’s obligation to make Committed Loans or L/C Advances to
reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated
by this Section 2.03(c), shall be absolute and unconditional and shall not
be affected by any circumstance, including (A) any setoff, counterclaim, recoupment,
defense or other right which such Lender may have against the L/C Issuer, any
Borrower, any Subsidiary or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided,
however, that each Lender’s obligation to make Committed Loans
pursuant to this Section 2.03(c) is subject to the conditions set forth
in Section 4.02 (other than delivery by the applicable Borrower of a
Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise
impair the obligation of the applicable Borrower to reimburse the L/C Issuer for the
amount of any payment made by the L/C Issuer under any Letter of Credit, together
with interest as provided herein.

 

39

 

(vi) If any Lender fails to make available to the Administrative Agent for the
account of the L/C Issuer any amount required to be paid by such Lender pursuant to
the foregoing provisions of this Section 2.03(c) by the time specified in
Section 2.03(c)(ii), the L/C Issuer shall be entitled to recover from such
Lender (acting through the Administrative Agent), on demand, such amount with
interest thereon for the period from the date such payment is required to the date
on which such payment is immediately available to the L/C Issuer at a rate per annum
equal to the applicable Overnight Rate from time to time in effect, plus any
administrative, processing or similar fees customarily charged by the L/C Issuer in
connection with the foregoing. If such Lender pays such amount (with interest and
fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan
included in the relevant Committed Borrowing or L/C Advance in respect of the
relevant L/C Borrowing, as the case may be. A certificate of the L/C Issuer
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (vi) shall be conclusive absent manifest error.

(d) Repayment of Participations.

(i) At any time after the L/C Issuer has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.03(c), if the Administrative Agent
receives for the account of the L/C Issuer any payment in respect of the related
Unreimbursed Amount or interest thereon (whether directly from a Borrower or
otherwise, including proceeds of Cash Collateral applied thereto by the
Administrative Agent), the Administrative Agent will distribute to such Lender its
Applicable Percentage thereof in Dollars and in the same funds as those received by
the Administrative Agent.

(ii) If any payment received by the Administrative Agent for the account of the
L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under
any of the circumstances described in Section 10.05 (including pursuant to
any settlement entered into by the L/C Issuer in its discretion), each Lender shall
pay to the Administrative Agent for the account of the L/C Issuer its Applicable
Percentage thereof on demand of the Administrative Agent, plus interest thereon from
the date of such demand to the date such amount is returned by such Lender, at a
rate per annum equal to the applicable Overnight Rate from time to time in effect.
The obligations of the Lenders under this clause shall survive the payment in full
of the Obligations and the termination of this Agreement.

 

40

 

(e) Obligations Absolute. The obligation of the applicable Borrower to reimburse the
L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be
absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of
this Agreement under all circumstances, including the following:

(i) any lack of validity or enforceability of such Letter of Credit, this
Agreement, or any other Loan Document;

(ii) the existence of any claim, counterclaim, setoff, defense or other right
that any Borrower or any Subsidiary thereof may have at any time against any
beneficiary or any transferee of such Letter of Credit (or any Person for whom any
such beneficiary or any such transferee may be acting), the L/C Issuer or any other
Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating thereto,
or any unrelated transaction;

(iii) any draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; or any
loss or delay in the transmission or otherwise of any document required in order to
make a drawing under such Letter of Credit;

(iv) any payment by the L/C Issuer under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms
of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of
Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession,
assignee for the benefit of creditors, liquidator, receiver or other representative
of or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief Law;

(v) any adverse change in the relevant exchange rates or in the availability of
the relevant Alternative Currency to any Borrower or any Subsidiary thereof or in
the relevant currency markets generally; or

(vi) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Borrower or any Subsidiary
thereof.

Each Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with such
Borrower’s instructions or other irregularity, such Borrower will immediately notify the L/C
Issuer. Each Borrower shall be conclusively deemed to have waived any such claim against the L/C
Issuer and its correspondents unless such notice is given as aforesaid.

 

41

 

(f) Role of L/C Issuer. Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Lenders or the Required Lenders, as
applicable; (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document
or instrument related to any Letter of Credit or Issuer Document. Each Borrower hereby assumes all
risks of the acts or omissions of any beneficiary or transferee with respect to its use of any
Letter of Credit; provided, however, that this assumption is not intended to, and
shall not, preclude any Borrower’s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the L/C Issuer shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided, however, that
anything in such clauses to the contrary notwithstanding, a Borrower may have a claim against the
L/C Issuer, and the L/C Issuer may be liable to such Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by such Borrower
which such Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence
or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it
by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C
Issuer may accept documents that appear on their face to be in order, without responsibility for
further investigation, regardless of any notice or information to the contrary, and the L/C Issuer
shall not be responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a 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.

(g) Applicability of ISP and UCP. Unless otherwise expressly agreed by the L/C Issuer
and the applicable Borrower when a Letter of Credit is issued (including any such agreement
applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each standby
Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for Documentary Credits,
as most recently published by the International Chamber of Commerce at the time of issuance shall
apply to each commercial Letter of Credit.

(h) Letter of Credit Fees. Each Borrower shall pay to the Administrative Agent for
the account of each Lender in accordance with its Applicable Percentage, in Dollars, a Letter of
Credit fee (the “Letter of Credit Fee”) for each Letter of Credit issued for its account
equal to the Applicable Rate times the Dollar Equivalent of the daily amount available to
be drawn under any such Letter of Credit; provided, however, any Letter of Credit Fees
otherwise payable for the account of a Defaulting Lender with respect to any Letter of Credit as to
which such Defaulting Lender has not provided Cash Collateral satisfactory to the L/C Issuer
pursuant to this Section 2.03 shall be payable, to the maximum extent permitted by
applicable Law, to the other Lenders in accordance

 

42

 

with the upward adjustments in their respective
Applicable
Percentages allocable to such Letter of Credit pursuant to Section 2.18(a)(iv), with
the balance of such fee, if any, payable to the L/C Issuer for its own account. For purposes of
computing the daily amount available to be drawn under any Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.09. Letter of Credit
Fees shall be (i) due and payable on the fifth Business Day after the end of each March, June,
September and December, commencing with the first such date to occur after the issuance of such
Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii)
computed on a quarterly basis in arrears. If there is any change in the Applicable Rate during any
quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein, upon the
request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall
accrue at the Default Rate.

(i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. Each
Borrower shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee with
respect to each Letter of Credit issued for its account, at the rate per annum specified in the Fee
Letter, computed on the Dollar Equivalent of the daily amount available to be drawn under such
Letter of Credit on a quarterly basis in arrears. Such fronting fee shall be due and payable on
the fifth Business Day after the end of each March, June, September and December in respect of the
most recently-ended quarterly period (or portion thereof, in the case of the first payment),
commencing with the first such date to occur after the issuance of such Letter of Credit, on the
Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily
amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall
be determined in accordance with Section 1.09. In addition, each Borrower shall pay
directly to the L/C Issuer for its own account, in Dollars, the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of the L/C Issuer
relating to letters of credit issued for the account of such Borrower as from time to time in
effect. Such customary fees and standard costs and charges are due and payable on demand and are
nonrefundable.

(j) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

(k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of
Credit issued or outstanding hereunder is in support of any obligations of, or is for the account
of, a Subsidiary, the Borrower that requested the issuance of such Letter of Credit shall be
obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of
Credit. Each Borrower hereby acknowledges that the issuance of Letters of Credit for the account
of Subsidiaries inures to the benefit of such Borrower, and that such Borrower’s business derives
substantial benefits from the businesses of such Subsidiaries.

(l) Letter of Credit Reporting. On a monthly basis, each L/C Issuer shall deliver to
the Administrative Agent a complete list of all outstanding Letters of Credit issued by such L/C
Issuer.

 

43

 

2.04 Swing Line Loans. (a) The Swing Line. Subject to the terms and conditions set
forth herein, the Swing Line Lender, in reliance upon the agreements of the other Lenders set forth
in this Section 2.04, may in its sole discretion make loans in Dollars (each such loan, a
“Swing Line Loan”) to the Company from time to time on any Business Day during the
Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the
Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the
Applicable Percentage of the Outstanding Amount of Committed Loans and L/C Obligations of the
Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment;
provided, however, that after giving effect to any Swing Line Loan, (i) the Total
Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount
of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and
provided, further, that the Company shall not use the proceeds of any Swing Line
Loan to refinance any outstanding Swing Line Loan. Within the foregoing limits, and subject to the
other terms and conditions hereof, the Company may borrow under this Section 2.04, prepay
under Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan
shall be a Base Rate Loan. Immediately upon the making of a Swing Line Loan, each Lender shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line
Lender a risk participation in such Swing Line Loan in an amount equal to the product of such
Lender’s Applicable Percentage times the amount of such Swing Line Loan.

(b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Company’s
irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by
telephone. Each such notice must be received by the Swing Line Lender and the Administrative Agent
not later than 11:00 a.m. on the requested borrowing date, and shall specify (i) the amount to be
borrowed, which shall be a minimum of $1,000,000, and (ii) the requested borrowing date, which
shall be a Business Day. Each such telephonic notice must be confirmed promptly by delivery to the
Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately
completed and signed by a Responsible Officer of the Company. Promptly after receipt by the Swing
Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent has also received
such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent
(by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at the request of any
Lender) prior to 12:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the
Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the
first proviso to the first sentence of Section 2.04(a), or (B) that one or more of the
applicable conditions specified in Article IV is not then satisfied, then, subject to the
terms and conditions hereof, the Swing Line Lender will, not later than 1:00 p.m. on the borrowing
date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to
the Company at its office by crediting the account of the Company on the books of the Swing Line
Lender in Same Day Funds.

 

44

 

(c) Refinancing of Swing Line Loans.

(i) The Swing Line Lender at any time in its sole and absolute discretion may
request, on behalf of the Company (which hereby irrevocably authorizes the Swing
Line Lender to so request on its behalf), that each Lender make a Base Rate
Committed Loan in an amount equal to such Lender’s Applicable Percentage of the
amount of Swing Line Loans then outstanding. Such request shall be made in writing
(which written request shall be deemed to be a Committed Loan Notice for purposes
hereof) and in accordance with the requirements of Section 2.02, without
regard to the minimum and multiples specified therein for the principal amount of
Base Rate Loans, but subject to the unutilized portion of the Aggregate Commitments
and the conditions set forth in Section 4.02. The Swing Line Lender shall
furnish the Company with a copy of the applicable Committed Loan Notice promptly
after delivering such notice to the Administrative Agent. Each Lender shall make an
amount equal to its Applicable Percentage of the amount specified in such Committed
Loan Notice available to the Administrative Agent in Same Day Funds (and the
Administrative Agent may apply Cash Collateral available with respect to the
applicable Swing Line Loan) for the account of the Swing Line Lender at the
Administrative Agent’s Office for Dollar-denominated payments not later than 10:00
a.m. on the day specified in such Committed Loan Notice, whereupon, subject to
Section 2.04(c)(ii), each Lender that so makes funds available shall be
deemed to have made a Base Rate Committed Loan to the Company in such amount. The
Administrative Agent shall remit the funds so received to the Swing Line Lender.

(ii) If for any reason any Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.04(c)(i), the request for
Base Rate Committed Loans submitted by the Swing Line Lender as set forth herein
shall be deemed to be a request by the Swing Line Lender that each of the Lenders
fund its risk participation in the relevant Swing Line Loan and each Lender’s
payment to the Administrative Agent for the account of the Swing Line Lender
pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such
participation.

(iii) If any Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(c) by the time
specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to
recover from such Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is required
to the date on which such payment is immediately available to the Swing Line Lender
at a rate per annum equal to the applicable Overnight Rate from time to time in
effect, plus any administrative, processing or similar fees customarily charged by
the Swing Line Lender in connection with the foregoing. If such Lender pays such
amount (with interest and fees as aforesaid), the amount so paid shall constitute
such Lender’s Committed Loan included in the relevant Committed Borrowing or funded
participation in the relevant Swing Line Loan, as the case may be. A certificate of
the Swing Line Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this
clause (iii) shall be conclusive absent manifest error.

 

45

 

(iv) Each Lender’s obligation to make Committed Loans or to purchase and fund
risk participations in Swing Line Loans pursuant to this Section 2.04(c)
shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right which
such Lender may have against the Swing Line Lender, the Company or any other Person
for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to make
Committed Loans pursuant to this Section 2.04(c) is subject to the
conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Company to
repay Swing Line Loans, together with interest as provided herein.

(d) Repayment of Participations.

(i) At any time after any Lender has purchased and funded a risk participation
in a Swing Line Loan, if the Swing Line Lender receives any payment on account of
such Swing Line Loan, the Swing Line Lender will distribute to such Lender its
Applicable Percentage thereof in the same funds as those received by the Swing Line
Lender.

(ii) If any payment received by the Swing Line Lender in respect of principal
or interest on any Swing Line Loan is required to be returned by the Swing Line
Lender under any of the circumstances described in Section 10.05 (including
pursuant to any settlement entered into by the Swing Line Lender in its discretion),
each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such
demand to the date such amount is returned, at a rate per annum equal to the
applicable Overnight Rate. The Administrative Agent will make such demand upon the
request of the Swing Line Lender. The obligations of the Lenders under this clause
shall survive the payment in full of the Obligations and the termination of this
Agreement.

(e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Company for interest on the Swing Line Loans. Until each Lender
funds its Base Rate Committed Loan or risk participation pursuant to this Section 2.04 to
refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such
Applicable Percentage shall be solely for the account of the Swing Line Lender.

(f) Payments Directly to Swing Line Lender. The Company shall make all payments of
principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

 

46

 

2.05 Prepayments. (a) Any Borrower may, upon notice from the Company to the Administrative
Agent, at any time or from time to time voluntarily prepay Committed Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 8:00 a.m. (A) three Business Days prior to any date of
prepayment of Eurocurrency Rate Loans denominated in Dollars, (B) four Business Days (or five, in
the case of prepayment of Loans denominated in Special Notice Currencies) prior to any date of
prepayment of Eurocurrency Rate Loans denominated in Alternative Currencies or of Peso Rate Loans,
and (C) on the date of prepayment of Base Rate Committed Loans; (ii) any prepayment of Eurocurrency
Rate Loans denominated in Dollars shall be in a principal amount of $1,000,000 or a whole multiple
of $500,000 in excess thereof; (iii) any prepayment of Eurocurrency Rate Loans denominated in
Alternative Currencies or of Peso Rate Loans shall be in a minimum principal amount of $1,000,000
or a whole multiple of $500,000 in excess thereof; and (iv) any prepayment of Base Rate Committed
Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof
or, in each case, if less, the entire principal amount thereof then outstanding. Each such notice
shall specify the date and amount of such prepayment and the Type(s) of Committed Loans to be
prepaid and, if Eurocurrency Rate Loans or Peso Rate Loans are to be prepaid, the Interest
Period(s) of such Loans. The Administrative Agent will promptly notify each Lender of its receipt
of each such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment.
If such notice is given by the Company, the applicable Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date specified therein;
provided that not more than two times per fiscal year, such notice, if accompanied by a
commitment reduction notice in accordance with Section 2.06, may state that it is
conditioned upon the effectiveness of other credit facilities or the incurrence of other
Indebtedness, the consummation of a particular Disposition or the occurrence of a Change of
Control, in which case such notice may be revoked by the applicable Borrower(s) (by notice to the
Administrative Agent on or prior to the specified prepayment date) if such condition is not
satisfied. Any prepayment of a Eurocurrency Rate Loan or Peso Rate Loan shall be accompanied by
all accrued interest on the amount prepaid, together with any additional amounts required pursuant
to Section 3.05. Each such prepayment shall be applied to the Committed Loans of the
Lenders in accordance with their respective Applicable Percentages.

(b) The Company may, upon notice to the Swing Line Lender (with a copy to the Administrative
Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part
without premium or penalty; provided that (i) such notice must be received by the Swing
Line Lender and the Administrative Agent not later than 10:00 a.m. on the date of the prepayment,
and (ii) any such prepayment shall be in a minimum principal amount of $1,000,000. Each such
notice shall specify the date and amount of such prepayment. If such notice is given by the
Company, the Company shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein.

 

47

 

(c) If the Administrative Agent notifies the Company at any time that the Total Outstandings
at such time exceed an amount equal to 110% of the Aggregate Commitments then in effect, then,
within three Business Days after receipt of such notice, the Borrowers shall prepay Loans and/or
any applicant Borrower shall Cash Collateralize the L/C Obligations in an aggregate amount
sufficient to reduce such Outstanding Amount as of such date of payment to an amount not to exceed
100% of the Aggregate Commitments then in effect;
provided, however, that, subject to the provisions of Section
2.17(a)(ii), the Company shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.05(c) unless after the prepayment in full of the Loans the Total
Outstandings exceed the Aggregate Commitments then in effect. The Administrative Agent may, at any
time and from time to time after the initial deposit of such Cash Collateral, request that
additional Cash Collateral be provided in order to protect against the results of further exchange
rate fluctuations.

(d) If the Administrative Agent notifies the Company at any time that the Outstanding Amount
of all Loans denominated in Alternative Currencies at such time exceeds an amount equal to 110% of
the Alternative Currency Sublimit then in effect, then, within three Business Days after receipt of
such notice, one or more Borrowers shall prepay its Loans in an aggregate amount sufficient to
reduce such Outstanding Amount as of such date of payment to an amount not to exceed 100% of the
Alternative Currency Sublimit then in effect.

2.06 Termination or Reduction of Commitments. (a) The Company may, upon notice to the
Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce
the Aggregate Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination
or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Company shall not terminate or reduce the
Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder,
the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to
any reduction of the Aggregate Commitments, the Alternative Currency Sublimit, the Letter of Credit
Sublimit, the HIL Sublimit, the Designated Borrower Sublimit or the Swing Line Sublimit exceeds the
amount of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of
such excess. The Administrative Agent will promptly notify the Lenders of any such notice of
termination or reduction of the Aggregate Commitments. Except as set forth in clause (iv) above,
the amount of any such Aggregate Commitment reduction shall not be applied to any Sublimit unless
otherwise specified by the Company. Any reduction of the Aggregate Commitments shall be applied to
the Commitment of each Lender according to its Applicable Percentage. All fees accrued until the
effective date of any termination of the Aggregate Commitments shall be paid on the effective date
of such termination. Not more than two times per fiscal year, a notice to reduce the Aggregate
Commitments hereunder may state that it is conditioned upon the effectiveness of other credit
facilities or the incurrence of other Indebtedness, the consummation of a particular Disposition or
the occurrence of a Change of Control, in which case such notice may be revoked by the applicable
Borrower(s) (by notice to the Administrative Agent on or prior to the specified commitment
reduction date) if such condition is not satisfied.

2.07 Repayment of Loans. Each Borrower shall repay to the Lenders on the Maturity Date the
aggregate principal amount of Committed Loans made to such Borrower outstanding on such date. The
Company shall repay each Swing Line Loan on the earlier to occur of (i) the date ten Business Days
after such Loan is made and (ii) the Maturity Date.

 

48

 

2.08 Interest. Interest shall accrue on the Loans, and each Borrower shall pay interest on
its Loans, as follows: (a) Subject to the provisions of subsection (b) below, (i) each
Eurocurrency Rate Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurocurrency Rate for such Interest Period
plus the Applicable Rate plus (in the case of a Eurocurrency Rate Loan of any
Lender which is lent from a Lending Office in the United Kingdom or a Participating Member State)
the Mandatory Cost; (ii) each Peso Rate Loan shall bear interest on the outstanding principal
amount thereof for each Interest Period at a rate per annum equal to the Peso Rate for such
Interest Period plus the Applicable Rate; (iii) each Base Rate Committed Loan shall bear
interest on the outstanding principal amount thereof from the applicable borrowing date at a rate
per annum equal to the Base Rate plus the Applicable Rate; and (iv) each Swing Line Loan
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date
at a rate per annum equal to the Base Rate plus the Applicable Rate.

(b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

(ii) If any amount (other than principal of any Loan) payable by any Borrower
under any Loan Document is not paid when due (without regard to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon the
request of the Required Lenders, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to the
fullest extent permitted by applicable Laws.

(iii) Upon the request of the Required Lenders, while any Event of Default
exists, the Borrowers shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by applicable Laws.

(iv) Accrued and unpaid interest on past due amounts (including interest on
past due interest) shall be due and payable upon demand.

(c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

2.09 Fees. In addition to certain fees described in subsections (i) and (j) of Section
2.03:

(a) Commitment Fee. The Borrowers shall pay to the Administrative Agent for the
account of each Lender in accordance with its Applicable Percentage, a commitment fee in Dollars
equal to the Applicable Rate times the actual daily amount by which the Aggregate
Commitments exceed the sum of (i) the Outstanding Amount of Committed Loans and (ii) the
Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.18.
The commitment fee shall accrue at all times during the Availability Period, including at any time
during which one or more of the conditions in Article IV is not met, and shall be due and
payable
quarterly in arrears on the fifth Business Day after the end of each March, June, September
and December, commencing with the first such date to occur after the Closing Date, and on the last
day of the Availability Period. The commitment fee shall be calculated quarterly in arrears, and
if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be
computed and multiplied by the Applicable Rate separately for each period during such quarter that
such Applicable Rate was in effect.

 

49

 

(b) Other Fees. (i) The Borrowers shall pay to MLPFS and the Administrative Agent for
their own respective accounts, in Dollars, fees in the amounts and at the times specified in the
Fee Letter. The Company shall pay to JPMorgan for its own account, in Dollars, such fees as shall
have been separately agreed upon between the Company and JPMorgan in writing in the amounts and at
the times so specified. Such fees shall be fully earned when paid and shall not be refundable for
any reason whatsoever.

(ii) The Borrowers shall pay to the Lenders, in Dollars, such fees as shall
have been separately agreed upon in writing in the amounts and at the times so
specified. Such fees shall be fully earned when paid and shall not be refundable
for any reason whatsoever.

2.10 Computation of Interest and Fees; Retroactive Adjustments of Applicable Rate. (a) All
computations of interest for Base Rate Loans shall be made on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed. All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day year), or, in the
case of interest in respect of Committed Loans denominated in Alternative Currencies as to which
market practice differs from the foregoing, in accordance with such market practice. Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid, provided that
any Loan that is repaid on the same day on which it is made shall, subject to Section
2.12(a), bear interest for one day. Each determination by the Administrative Agent of an
interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest
error.

(b) If, as a result of any restatement of or other adjustment to the financial statements of
Holdings or for any other reason, Holdings or the Lenders determine that (i) the Consolidated Total
Leverage Ratio as calculated by Holdings as of any applicable date was inaccurate and (ii) a proper
calculation of the Consolidated Total Leverage Ratio would have resulted in higher pricing for such
period, each Borrower shall immediately and retroactively be obligated to pay to the Administrative
Agent for the account of the applicable Lenders or the L/C Issuer, as the case may be, promptly on
demand by the Administrative Agent (or, after the occurrence of an actual or deemed entry of an
order for relief with respect to any Borrower under the Bankruptcy Code of the United States,
automatically and without further action by the Administrative Agent, any Lender or the L/C
Issuer), 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 L/C Issuer, as
the case may be, under Section 2.03(c)(iii), 2.03(h) or 2.08(b) or under
Article VIII. The Borrowers’ obligations under this
paragraph shall survive for 90 days following the termination of the Aggregate Commitments and
the repayment of all other Obligations hereunder.

 

50

 

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

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

2.12 Payments Generally; Administrative Agent’s Clawback. (a) General. All payments
to be made by the Borrowers shall be made without condition or deduction for any counterclaim,
defense, recoupment or setoff. Except as otherwise expressly provided herein and except with
respect to principal of and interest on Loans denominated in an Alternative Currency, all payments
by the Borrowers hereunder shall be made to the Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the applicable Administrative Agent’s Office
in Dollars and in Same Day Funds not later than 12:00 p.m. on the date specified herein. Except as
otherwise expressly provided herein, all payments by the Borrowers hereunder with respect to
principal and interest on Loans denominated in an Alternative Currency shall be made to the
Administrative Agent, for the account of the respective Lenders to which such payment is owed, at
the applicable Administrative Agent’s Office in such Alternative Currency and in Same Day Funds not
later than the Applicable Time specified by the Administrative Agent on the dates specified herein.
Without limiting the generality of the foregoing, the Administrative Agent may require that any
payments due under this Agreement be made in the United States. If, for any reason, any Borrower
is prohibited by any Law from making any required payment hereunder in an Alternative Currency,
such Borrower shall make such payment in Dollars in the Dollar Equivalent of the Alternative
Currency payment amount. The Administrative Agent will promptly distribute to each Lender its
Applicable Percentage (or other applicable share as provided herein) of such payment in like
funds as received by wire transfer to such Lender’s Lending Office. All payments received by
the Administrative Agent (i) after 11:00 a.m., in the case of payments in Dollars, or (ii) after
the Applicable Time specified by the Administrative Agent in the case of payments in an Alternative
Currency, shall in each case be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. If any payment to be made by any Borrower
shall come due on a day other than a Business Day, payment shall be made on the next following
Business Day, and such extension of time shall be reflected in computing interest or fees, as the
case may be.

 

51

 

(b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Committed Borrowing of Eurocurrency Rate Loans or Peso Rate Loans (or, in the case of any Committed
Borrowing of Base Rate Loans, prior to 9:00 a.m. on the date of such Committed Borrowing) that such
Lender will not make available to the Administrative Agent such Lender’s share of such Committed
Borrowing, the Administrative Agent may assume that such Lender has made such share available on
such date in accordance with Section 2.02 (or, in the case of a Committed Borrowing of Base
Rate Loans, that such Lender has made such share available in accordance with and at the time
required by Section 2.02) and may, in reliance upon such assumption, make available to the
applicable Borrower a corresponding amount. In such event, if a Lender has not in fact made its
share of the applicable Committed Borrowing available to the Administrative Agent, then the
applicable Lender and the applicable Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount in Same Day Funds with interest thereon, for each day
from and including the date such amount is made available to such Borrower to but excluding the
date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such
Lender, the Overnight Rate, plus any administrative, processing or similar fees customarily charged
by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to
be made by such Borrower, the interest rate applicable to Base Rate Loans. If such Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to such Borrower the amount of such interest
paid by such Borrower for such period. If such Lender pays its share of the applicable Committed
Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s
Committed Loan included in such Committed Borrowing. Any payment by such Borrower shall be without
prejudice to any claim such Borrower may have against a Lender that shall have failed to make such
payment to the Administrative Agent.

(ii) Payments by Borrowers; Presumptions by Administrative Agent.
Unless the Administrative Agent shall have received notice from a Borrower prior to
the date on which any payment is due to the Administrative Agent for the account of
the Lenders or the L/C Issuer hereunder that such Borrower will not make such
payment, the Administrative Agent may assume that such Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the
amount due. In such event, if such Borrower has not in fact made such payment, then
each of the Lenders or the L/C Issuer, 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 L/C Issuer, in Same Day Funds 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
Overnight Rate.

 

52

 

A notice of the Administrative Agent to any Lender or Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

(c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender to any Borrower as provided in
the foregoing provisions of this Article II, and such funds are not made available to such
Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set
forth in Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall promptly return such funds (in like funds as received from such Lender)
to such Lender, without interest.

(d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make
payments pursuant to Section 10.04(c) are several and not joint. The failure of any Lender
to make any Committed Loan, to fund any such participation or to make any payment under Section
10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Committed Loan, to purchase its participation or to make its payment under
Section 10.04(c).

(e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of
the Committed Loans made by it, or the participations in L/C Obligations or in Swing Line Loans
held by it, resulting in such Lender’s receiving payment of a proportion of the aggregate amount of
such Committed Loans or participations and accrued interest thereon greater than its pro
rata share thereof as provided herein, then the Lender receiving such greater proportion
shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value)
participations in the Committed Loans and subparticipations in L/C Obligations and Swing Line Loans
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 Committed Loans and other amounts owing them,
provided that:

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

 

53

 

(ii) the provisions of this Section shall not be construed to apply to (x) any
payment made by or on behalf of a Borrower pursuant to and in accordance with the
express terms of this Agreement (including the application of funds arising from the
existence of a Defaulting Lender) or (y) any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Committed Loans or subparticipations in L/C Obligations or Swing Line Loans to any
assignee or participant, other than to the Company or any Subsidiary thereof (as to
which the provisions of this Section shall apply).

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

2.14 Designated Borrowers. (a) The Company may at any time, upon not less than ten Business
Days’ notice from the Company to the Administrative Agent (or such shorter period as may be agreed
by the Administrative Agent in its sole discretion), designate any Material Subsidiary of Holdings
(an “Applicant Borrower”) as a Designated Borrower to receive Loans hereunder by delivering
to the Administrative Agent (which shall promptly deliver counterparts thereof to each Lender) a
duly executed notice and agreement in substantially the form of Exhibit H (a
“Designated Borrower Request and Assumption Agreement”). The parties hereto acknowledge
and agree that prior to any Applicant Borrower becoming entitled to utilize the credit facilities
provided for herein the Administrative Agent and the Lenders shall have received such supporting
resolutions, incumbency certificates, opinions of counsel and other documents or information, in
form, content and scope reasonably satisfactory to the Administrative Agent, as may be required by
the Administrative Agent or the Required Lenders in their sole discretion, and Notes signed by such
new Borrowers to the extent any Lenders so require. If the Administrative Agent and each Lender
agrees that an Applicant Borrower shall be entitled to receive Loans hereunder, then promptly
following receipt of all such requested resolutions, incumbency certificates, opinions of counsel
and other documents or information, the Administrative Agent shall send a notice in substantially
the form of Exhibit I (a “Designated Borrower Notice”) to the Company and the
Lenders specifying the effective date upon which the Applicant Borrower shall constitute a
Designated Borrower for purposes hereof, whereupon each of the Lenders agrees to permit such
Designated Borrower to receive Loans hereunder, on the terms and conditions set forth herein, and
each of the parties agrees that such Designated Borrower otherwise shall be a Borrower for all
purposes of this Agreement; provided that no Committed Loan Notice or Letter of Credit
Application may be submitted by or on behalf of such Designated Borrower until the date five
Business Days after such effective date.

(b) The Obligations of the Company and each Designated Borrower shall be several but not joint
in nature.

 

54

 

(c) Each Subsidiary of Holdings that becomes a “Designated Borrower” pursuant to this
Section 2.14 hereby irrevocably appoints Holdings as its agent for the giving and receipt
of notices. Any notice, demand, consent, acknowledgement, direction, certification
or other communication delivered to the Company in accordance with the terms of this Agreement
shall be deemed to have been delivered to each Designated Borrower.

(d) The Company may from time to time, upon not less than 15 Business Days’ notice from the
Company to the Administrative Agent (or such shorter period as may be agreed by the Administrative
Agent in its sole discretion), terminate a Designated Borrower’s status as such, provided
that there are no outstanding Loans payable by such Designated Borrower, or other amounts payable
by such Designated Borrower on account of any Loans made to it, as of the effective date of such
termination. The Administrative Agent will promptly notify the Lenders of any such termination of a
Designated Borrower’s status.

2.15 Reserved.

2.16 Release of Collateral Upon Change in Debt Rating. On or after any date (a “Ratings
Increase Date”) on which the Debt Rating from S&P shall be BBB- or higher or the Debt Rating
from Moody’s shall be Baa3 or higher, then, unless the Debt Rating from S&P is BB or lower or the
Debt Rating from Moody’s is Ba2 or lower, upon the request of the Company or Holdings, the
Administrative Agent shall promptly release all Liens securing the Collateral and, at the
Borrowers’ expense, execute and deliver to each Loan Party such documents as such Loan Party may
reasonably request to evidence the release of such Collateral from the assignment and security
interest granted under the Collateral Documents.

2.17 Cash Collateral. (a) Certain Credit Support Events.

(i) Upon the request of the Administrative Agent or the L/C Issuer (A) if the
L/C Issuer has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in an L/C Borrowing, or (B) if, as of the
Letter of Credit Expiration Date, any L/C Obligation for any reason remains
outstanding, each Borrower shall, in each case, immediately Cash Collateralize the
then Outstanding Amount of all its L/C Obligations. At any time that there shall
exist a Defaulting Lender, immediately upon the request of the Administrative Agent,
the L/C Issuer or the Swing Line Lender, each Borrower shall deliver to the
Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting
Exposure (after giving effect to Section 2.18(a)(iv) and any Cash Collateral
provided by the Defaulting Lender) in respect of its L/C Obligations.

(ii) In addition, if the Administrative Agent notifies the Company at any time
that the Outstanding Amount of all L/C Obligations at such time exceeds 110% of the
Letter of Credit Sublimit then in effect, then, within five Business Days after
receipt of such notice, one or more Borrowers shall Cash Collateralize its or their
L/C Obligations in an amount equal to the amount by which the Outstanding Amount of
all L/C Obligations exceeds the Letter of Credit Sublimit.

 

55

 

(iii) The Administrative Agent may, at any time and from time to time after the
initial deposit of Cash Collateral, request that additional Cash Collateral be
provided in order to protect against the results of exchange rate fluctuations.

(b) Grant of Security Interest. All Cash Collateral (other than credit support not
constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit
accounts at Bank of America. Each Borrower, and to the extent provided by any Lender, such Lender,
hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the
Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line Lender), and agrees
to maintain, a first priority security interest in all such cash, deposit accounts and all balances
therein, and all other property so provided as collateral pursuant hereto, and in all proceeds of
the foregoing, all as security for the obligations to which such Cash Collateral may be applied
pursuant to Section 2.17(c). If at any time the Administrative Agent determines that Cash
Collateral is subject to any right or claim of any Person other than the Administrative Agent as
herein provided, or that the total amount of such Cash Collateral is less than the applicable
Fronting Exposure and other obligations secured thereby, the Borrowers or the relevant Defaulting
Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative
Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

(c) Application. Notwithstanding anything to the contrary contained in this Agreement
(but subject to Section 2.17(d) below), Cash Collateral provided under any of this Section
2.17 or Sections 2.03, 2.04, 2.05, 2.18 or 8.02 in
respect of Letters of Credit or Swing Line Loans shall be held and applied to the satisfaction of
the specific L/C Obligations, Swing Line Loans, obligations to fund participations therein
(including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such
obligation) and other obligations for which the Cash Collateral was so provided, prior to any other
application of such property as may be provided for herein.

(d) Release. Cash Collateral (or the appropriate portion thereof) provided to reduce
Fronting Exposure or other obligations shall be released promptly following (i) the elimination of
the applicable Fronting Exposure or other obligations giving rise thereto (including by the
termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee
following compliance with Section 10.06(b)(vi))), (ii) the absence or lapse of the event or
circumstance otherwise giving rise to the requirement to provide Cash Collateral hereunder or (iii)
the Administrative Agent’s good faith determination that there exists excess Cash Collateral;
provided, however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall
not be released during the continuance of a Default or Event of Default (and following application
as provided in this Section 2.17 may be otherwise applied in accordance with Section
8.03), and (y) the Person providing Cash Collateral and the L/C Issuer or Swing Line Lender, as
applicable, may agree that Cash Collateral shall not be released but instead held to support future
anticipated Fronting Exposure or other obligations.

2.18 Defaulting Lenders. (a) Adjustments. Notwithstanding anything to the contrary
contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as
that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:

(i) Waivers and Amendments. A Defaulting Lender’s right to approve or
disapprove any amendment, waiver or consent with respect to this Agreement shall be
restricted as set forth in Section 10.01.

 

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(ii) Reallocation of Payments. Any payment of principal, interest,
fees or other amounts received by the Administrative Agent for the account of that
Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to
Article VIII or otherwise, and including any amounts made available to the
Administrative Agent by that Defaulting Lender pursuant to Section 10.08),
shall be applied at such time or times as may be determined by the Administrative
Agent as follows: first, to the payment of any amounts owing by that Defaulting
Lender to the Administrative Agent hereunder; second, to the payment on a pro rata
basis of any amounts owing by that Defaulting Lender to the L/C Issuer or Swing Line
Lender hereunder; third, if so determined by the Administrative Agent or requested
by the L/C Issuer or Swing Line Lender, to be held as Cash Collateral for future
funding obligations of that Defaulting Lender of any participation in any Swing Line
Loan or Letter of Credit; fourth, as the Borrowers may request (so long as no
Default or Event of Default exists), to the funding of any Loan in respect of which
that Defaulting Lender has failed to fund its portion thereof as required by this
Agreement, as determined by the Administrative Agent; fifth, if so determined by the
Administrative Agent and the Borrowers, to be held in a non-interest bearing deposit
account and released in order to satisfy obligations of that Defaulting Lender to
fund Loans under this Agreement; sixth, to the payment of any amounts owing to the
Lenders, the L/C Issuer or Swing Line Lender as a result of any judgment of a court
of competent jurisdiction obtained by any Lender, the L/C Issuer or Swing Line
Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach
of its obligations under this Agreement; seventh, so long as no Default or Event of
Default exists, to the payment of any amounts owing to the Borrowers as a result of
any judgment of a court of competent jurisdiction obtained by the Borrowers against
that Defaulting Lender as a result of that Defaulting Lender’s breach of its
obligations under this Agreement; and eighth, to that Defaulting Lender or as
otherwise directed by a court of competent jurisdiction; provided that if
(x) such payment is a payment of the principal amount of any Loans or L/C Borrowings
in respect of which that Defaulting Lender has not fully funded its appropriate
share and (y) such Loans or L/C Borrowings were made at a time when the conditions
set forth in Section 4.02 were satisfied or waived, such payment shall be
applied solely to pay the Loans of, and L/C Borrowings owed to, all non-Defaulting
Lenders on a pro rata basis prior to being applied to the payment of any Loans of,
or L/C Borrowings owed to, that Defaulting Lender. Any payments, prepayments or
other amounts paid or payable to a Defaulting Lender that are applied (or held) to
pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this
Section 2.18(a)(ii) shall be deemed paid to and redirected by that
Defaulting Lender, and each Lender irrevocably consents hereto.

(iii) Certain Fees. That Defaulting Lender (x) shall not be entitled
to receive any commitment fee pursuant to Section 2.09(a) for any period
during which that Lender is a Defaulting Lender (and the Borrowers shall not be
required to pay any such fee that otherwise would have been required to have been
paid to that Defaulting Lender) and (y) shall be limited in its right to receive
Letter of Credit Fees as provided in Section 2.03(h).

 

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(iv) Reallocation of Applicable Percentages to Reduce Fronting
Exposure. During any period in which there is a Defaulting Lender, for purposes
of computing the amount of the obligation of each non-Defaulting Lender to acquire,
refinance or fund participations in Letters of Credit or Swing Line Loans pursuant
to Sections 2.03 and 2.04, the “Applicable Percentage” of each
non-Defaulting Lender shall be computed without giving effect to the Commitment of
that Defaulting Lender; provided, that, (i) each such reallocation shall be
given effect only if, at the date the applicable Lender becomes a Defaulting Lender,
no Default or Event of Default exists; and (ii) the aggregate obligation of each
non-Defaulting Lender to acquire, refinance or fund participations in Letters of
Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1)
the Commitment of that non-Defaulting Lender minus (2) the aggregate
Outstanding Amount of the Committed Loans of that Lender.

(b) Defaulting Lender Cure. If the Borrowers, the Administrative Agent, Swing Line
Lender and the L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should
no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties
hereto, whereupon as of the effective date specified in such notice and subject to any conditions
set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender
will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or
take such other actions as the Administrative Agent may determine to be necessary to cause the
Committed Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to
be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without
giving effect to Section 2.18(a)(iv)), whereupon that Lender will cease to be a Defaulting
Lender; provided that no adjustments will be made retroactively with respect to fees accrued or
payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and
provided, further, that except to the extent otherwise expressly agreed by the
affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or
release of any claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01 Taxes. (a) Payments Free of Taxes; Obligation to Withhold; Payments on Account of
Taxes. (i) Any and all payments by or on account of any obligation of any Borrower hereunder
or under any other Loan Document shall to the extent permitted by applicable Laws be made free and
clear of and without reduction or withholding for any Taxes. If, however, applicable Laws require
any Borrower or the Administrative Agent to withhold or deduct any Tax, such Tax shall be withheld
or deducted in accordance with such Laws as determined by such Borrower or the Administrative
Agent, as the case may be, upon the basis of the information and documentation to be delivered
pursuant to subsection (e) below.

 

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(ii) If any Borrower or the Administrative Agent shall be required by any
applicable Laws, including the Code, to withhold or deduct any Taxes, including
United States Federal backup withholding and withholding taxes, from
any payment, then (A) such Borrower or the Administrative Agent, as required by
such Laws, shall withhold or make such deductions as are determined by it to be
required based upon the information and documentation it has received pursuant to
subsection (e) below, (B) such Borrower or the Administrative Agent, to the extent
required by such Laws, shall timely pay the full amount so withheld or deducted by
it to the relevant Governmental Authority in accordance with such Laws, and (C) to
the extent that the withholding or deduction is made on account of Indemnified Taxes
or Other Taxes, the sum payable by such Borrower shall be increased as necessary so
that after any required withholding or the making of all required deductions
(including deductions applicable to additional sums payable under this Section) the
Administrative Agent, Lender or L/C Issuer, as the case may be, receives an amount
equal to the sum it would have received had no such withholding or deduction been
made.

(b) Payment of Other Taxes by the Borrowers. Without limiting or duplicating the
provisions of subsection (a) above, each Borrower shall timely pay any Other Taxes attributable to
(i) the Loans made to such Borrower or (ii) payments to the Lenders pursuant to the Loan Documents
to the relevant Governmental Authority in accordance with applicable Laws, except regarding
Luxembourg registration duties (droits d’enregistrement) for any Luxembourg Tax payable due to a
registration, submission or filing by the Administrative Agent or a Lender of the Loan Documents
where such registration, submission or filing is or was not made during the continuance of an Event
of Default and required to maintain or preserve the rights of the Administrative Agent or the
Lenders under the Loan Documents.

(c) Tax Indemnifications. (i) Without limiting or duplicating the provisions of
subsection (a) or (b) above, each Borrower shall, and does hereby, indemnify the Administrative
Agent, each Lender and the L/C Issuer, and shall make payment in respect thereof within 10 days
after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to any payment by or on account of any obligation of any Loan Party
under any Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) withheld or deducted by such Borrower or the
Administrative Agent or paid by the Administrative Agent, such Lender or the L/C Issuer, as the
case may be, and any reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. Each Borrower shall also, and does hereby, indemnify the Administrative
Agent, and shall make payment in respect thereof within ten days after demand therefor, for any
amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly to the
Administrative Agent as required by clause (ii) of this subsection. A certificate as to the amount
of any such payment or liability delivered to a Borrower by a Lender or the L/C Issuer (with a copy
to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a
Lender or the L/C Issuer, shall contain calculations setting forth such payment or liability in
reasonable detail and be conclusive absent manifest error.

 

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(ii) Without limiting the provisions of subsection (a) or (b) above, each
Lender and the L/C Issuer shall, and does hereby, indemnify each Borrower and the
Administrative Agent, and shall make payment in respect thereof within 10
days after demand therefor, against any and all Taxes and any and all related
losses, claims, liabilities, penalties, interest and expenses (including the fees,
charges and disbursements of any counsel for such Borrower or the Administrative
Agent) incurred by or asserted against such Borrower or the Administrative Agent by
any Governmental Authority as a result of the failure by such Lender or the L/C
Issuer, as the case may be, to deliver, or as a result of the inaccuracy, inadequacy
or deficiency of, any documentation required to be delivered by such Lender or the
L/C Issuer, as the case may be, to such Borrower or the Administrative Agent
pursuant to subsection (e). Each Lender and the L/C Issuer hereby authorizes the
Administrative Agent to set off and apply any and all amounts at any time owing to
such Lender or the L/C Issuer, as the case may be, under this Agreement or any other
Loan Document against any amount due to the Administrative Agent under this clause
(ii). The agreements in this clause (ii) shall survive the resignation and/or
replacement of the Administrative Agent, any assignment of rights by, or the
replacement of, a Lender or the L/C Issuer, the termination of the Aggregate
Commitments and the repayment, satisfaction or discharge of all other Obligations.

(d) Evidence of Payments. Upon request by a Borrower or the Administrative Agent, as
the case may be, after any payment of Taxes by such Borrower or by the Administrative Agent to a
Governmental Authority as provided in this Section 3.01, such Borrower shall deliver to the
Administrative Agent or the Administrative Agent shall deliver to such Borrower, as the case may
be, the original or a certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of any return required by Laws to report such payment or other evidence of
such payment reasonably satisfactory to such Borrower or the Administrative Agent, as the case may
be.

(e) Status of Lenders; Tax Documentation. (i) Each Lender shall deliver to the
Company and to the Administrative Agent, at the time or times prescribed by applicable Laws or when
reasonably requested by the Company or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable Laws or by the taxing authorities of any
jurisdiction and such other reasonably requested information as will permit the Company or the
Administrative Agent, as the case may be, to determine (A) whether or not payments made by the
respective Borrowers hereunder or under any other Loan Document are subject to Taxes, (B) if
applicable, the required rate of withholding or deduction, and (C) such Lender’s entitlement to any
available exemption from, or reduction of, applicable Taxes in respect of all payments to be made
to such Lender by the respective Borrowers pursuant to this Agreement or otherwise to establish
such Lender’s status for withholding tax purposes in the applicable jurisdictions.

 

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(ii) Without limiting the generality of the foregoing, with respect to any
Borrower that is resident for tax purposes in the United States,

(A) any Lender that is a “United States person” within the meaning of
Section 7701(a)(30) of the Code shall deliver to the Company and the
Administrative Agent executed originals of Internal Revenue Service Form W-9
or such other documentation or information prescribed
by applicable Laws or reasonably requested by the Company on behalf of
such Borrower or the Administrative Agent as will enable such Borrower or
the Administrative Agent, as the case may be, to determine whether or not
such Lender is subject to backup withholding or information reporting
requirements; and

(B) each Foreign Lender that is entitled under the Code or any
applicable treaty to an exemption from or reduction of withholding tax with
respect to payments hereunder or under any other Loan Document shall deliver
to the Company 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 Company on behalf of such Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to
do so), whichever of the following is applicable:

(I) executed originals of Internal Revenue Service Form W-8BEN
(or successor form) claiming eligibility for benefits of an income
tax treaty to which the United States is a party and such other
documentation as required under the Code,

(II) executed originals of Internal Revenue Service Form W-8ECI
(or successor form),

(III) executed originals of Internal Revenue Service Form W-8IMY
(or successor form) and all required supporting documentation,

(IV) 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 such 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)
executed originals of Internal Revenue Service Form W-8BEN (or
successor form), or

 

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(V) executed originals of any other form prescribed by
applicable Laws as a basis for claiming exemption from or a reduction
in United States Federal withholding tax together with such
supplementary documentation as may be prescribed by applicable Laws
to permit such Borrower or the Administrative Agent to determine the
withholding or deduction required to be made.

(iii) Each Lender shall promptly (A) notify the Company and the Administrative
Agent of any change in circumstances that would modify or render invalid any claimed
exemption or reduction, and (B) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to avoid
any requirement of applicable Laws of any jurisdiction that any Borrower or the
Administrative Agent make any withholding or deduction for taxes from amounts
payable to such Lender. In furtherance of the foregoing, each Lender agrees that if
any form or certification previously delivered by it expires or becomes obsolete or
inaccurate in any respect, it shall update such form or certification or promptly
notify the Borrower and the Administrative Agent of its legal inability to do so.

(iv) Each of the Borrowers shall promptly deliver to the Administrative Agent
or any Lender, as the Administrative Agent or such Lender shall reasonably request,
on or prior to the Closing Date (or such later date on which it first becomes a
Borrower), and in a timely fashion thereafter, such documents and forms required by
any relevant taxing authorities under the Laws of any jurisdiction, duly executed
and completed by such Borrower, as are required to be furnished by such Lender or
the Administrative Agent under such Laws in connection with any payment by the
Administrative Agent or any Lender of Taxes or Other Taxes, or otherwise in
connection with the Loan Documents, with respect to such jurisdiction.

(f) Treatment of Certain Refunds. Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a
Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund
of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as
the case may be. If the Administrative Agent, any Lender or the L/C Issuer determines, in its
reasonable discretion, that it has received a refund or credit of any Taxes or Other Taxes (whether
paid directly to the Lender or the Administrative Agent, as applicable, or applied to reduce
another tax liability) as to which it has been indemnified by any Borrower or with respect to
which any Borrower has paid additional amounts pursuant to this Section, it shall pay to such
Borrower an amount equal to such refund or credit (but only to the extent of indemnity payments
made, or additional amounts paid, by such Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses and net of any loss or
gain realized in the conversion of such funds from or to another currency incurred by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund),
provided that each Borrower, upon the request of the Administrative Agent, such Lender or
the L/C Issuer, agrees to repay the amount paid over to such Borrower (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such
Lender or the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is
required to repay such refund to such Governmental Authority. This subsection shall not be
construed to require the Administrative Agent, any Lender or the L/C Issuer to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to any
Borrower or any other Person.

 

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3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund Eurocurrency Rate Loans (whether denominated in Dollars or an
Alternative Currency) or Peso Rate Loans, or to determine or charge interest rates based upon the
Eurocurrency Rate or the Peso Rate, or any Governmental Authority has imposed material restrictions
on the authority of such Lender to purchase or sell, or to take deposits of, Dollars or any
Alternative Currency in the applicable interbank market, then, on notice thereof by such Lender to
the Company through the Administrative Agent, any obligation of such Lender to make or continue
Eurocurrency Rate Loans or Peso Rate Loans in the affected currency or currencies or, in the case
of Eurocurrency Rate Loans in Dollars, to convert Base Rate Committed Loans to Eurocurrency Rate
Loans, shall be suspended until such Lender notifies the Administrative Agent and the Company that
the circumstances giving rise to such determination no longer exist. Upon receipt of such notice,
the Borrowers shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay
or, if applicable and such Loans are denominated in Dollars, convert all such Eurocurrency Rate
Loans or Peso Rate Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such Eurocurrency Rate Loans or
Peso Rate Loans to such day, or immediately, if such Lender may not lawfully continue to maintain
such Eurocurrency Rate Loans or Peso Rate Loans. Upon any such prepayment or conversion, the
Borrowers shall also pay accrued interest on the amount so prepaid or converted.

3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a Eurocurrency Rate Loan or a conversion to or continuation thereof
that (a) deposits (whether in Dollars or an Alternative Currency) are not being offered to banks in
the applicable offshore interbank market for such currency for the applicable amount and Interest
Period of such Eurocurrency Rate Loan, (b) adequate and reasonable means do not exist for
determining the Eurocurrency Rate for any requested Interest Period with respect to a proposed
Eurocurrency Rate Loan (whether denominated in Dollars or an Alternative Currency), or (c) the
Eurocurrency Rate for any requested Interest Period with respect to a proposed Eurocurrency Rate
Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurocurrency
Rate Loan, the Administrative Agent will promptly so notify the Company and each Lender.
Thereafter, the obligation of the Lenders to make or maintain Eurocurrency Rate Loans in the
affected currency or currencies shall be suspended until the Administrative Agent (upon the
instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, the Company
may revoke any pending request for a Borrowing of, conversion to or continuation of Eurocurrency
Rate Loans in the affected currency or currencies or, failing that, will be deemed to have
converted such request into a request for a Committed Borrowing of Base Rate Loans in the amount
specified therein. For purposes of determining the Peso Rate, (i) in the event the TIIE Rate
ceases to be quoted, is not known at the time on which the Peso Rate must be determined, or is
otherwise not available at such time for any reason, then the “Peso Rate” shall be calculated using
the CETES Rate as a substitute interest rate for the TIIE rate; and (ii) in the event each of the
TIIE Rate and the CETES Rate ceases to be quoted, is not known at the time on which the Peso Rate
must be determined, or is otherwise not available at such time for any reason, then the “Peso Rate”
shall be calculated using the CCP Rate as a substitute interest rate for the TIIE Rate and the
CETES Rate.

 

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As used in this Section, the following terms shall have the meanings set forth below:

“CETES Rate” means, for any Interest Period with respect to a Peso Rate Loan, the rate
equal to the Federal Treasury Certificates Rate for a twenty-eight day period, as published by
Banco de Mexico in the Official Daily of the Federation on the most recent date prior to the
Business Day on which such Interest Period is to commence.

“CCP Rate” means, for any Interest Period with respect to a Peso Rate Loan, the rate
equal to the cost for capturing liabilities denominated in Pesos for a thirty-day period, as
published by Banco de Mexico (as the representative rate of Mexican Multiple Banking Institutions)
in the Official Daily of the Federation on the Business Day on which such Interest Period is to
commence.

3.04 Increased Costs; Reserves on Eurocurrency Rate Loans. (a) 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 (A)
any reserve requirement contemplated by Section 3.04(e) and (B) the
requirements of the Bank of England and the Financial Services Authority or the
European Central Bank reflected in the Mandatory Cost, other than as set forth
below) or the L/C Issuer;

(ii) subject any Lender or the L/C Issuer 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 Eurocurrency Rate Loan or Peso Rate Loan made by it, or change the
basis of taxation of payments to such Lender or the L/C Issuer in respect thereof
(except for Indemnified Taxes or Other Taxes covered by Section 3.01 or any
Excluded Tax;

(iii) result in the failure of the Mandatory Cost, as calculated hereunder, to
represent the cost to any Lender of complying with the requirements of the Bank of
England and/or the Financial Services Authority or the European Central Bank in
relation to its making, funding or maintaining Eurocurrency Rate Loans or Peso Rate
Loans; or

(iv) impose on any Lender or the L/C Issuer or the London interbank market any
other condition, cost or expense affecting this Agreement or Eurocurrency Rate Loans
or Peso Rate Loans made by such Lender or any Letter of Credit or participation
therein;

 

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and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurocurrency Rate Loan or Peso Rate Loan (or of maintaining its obligation to make
any such Loan), or to increase the cost to such Lender or the L/C Issuer 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 L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon
request of such Lender or the L/C Issuer, the Company will pay (or cause the applicable Borrower to
pay) to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as
will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs
incurred or reduction suffered.

(b) Capital Requirements. If any Lender or the L/C Issuer determines that any Change
in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such
Lender’s or the L/C Issuer’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 L/C Issuer’s capital or on
the capital of such Lender’s or the L/C Issuer’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 L/C Issuer, to a level below
that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could
have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C
Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with
respect to capital adequacy), then from time to time the Company will pay (or cause the applicable
Borrower to pay) to such Lender or the L/C Issuer, as the case may be, such additional amount or
amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s
holding company for any such reduction suffered.

(c) Certificates for Reimbursement. A certificate of a Lender or the L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its
holding company, as the case may be, as specified in subsection (a) or (b) of this Section and
delivered to the Company shall contain calculations setting forth such payment or liability in
reasonable detail and be conclusive absent manifest error. The Company shall pay (or cause the
applicable Borrower to pay) such Lender or the L/C Issuer, as the case may be, the amount shown as
due on any such certificate within 10 days after receipt thereof.

(d) Delay in Requests. Failure or delay on the part of any Lender or the L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided
that no Borrower shall be required to compensate a Lender or the L/C Issuer pursuant to the
foregoing provisions of this Section for any increased costs incurred or reductions suffered more
than nine months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies
the Company of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change
in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect thereof).

 

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(e) Additional Reserve Requirements. The Company shall pay (or cause the applicable
Borrower to pay) to each Lender, (i) as long as such Lender shall be required to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency or Peso funds or
deposits (currently known as “Eurocurrency liabilities” or “Peso liabilities”), additional interest
on the unpaid principal amount of each Eurocurrency Rate Loan or Peso Loan (as applicable) equal to
the actual costs of such reserves allocated to such Loan by such Lender
(as determined by such Lender in good faith, which determination shall be conclusive), and
(ii) as long as such Lender shall be required to comply with any reserve ratio requirement or
analogous requirement of any other central banking or financial regulatory authority imposed in
respect of the maintenance of the Commitments or the funding of the Eurocurrency Rate Loans or Peso
Loans, such additional costs (expressed as a percentage per annum and rounded upwards, if
necessary, to the nearest five decimal places) equal to the actual costs allocated to such
Commitment or Loan by such Lender (as determined by such Lender in good faith, which determination
shall be conclusive), which in each case shall be due and payable on each date on which interest is
payable on such Loan, provided the Company shall have received at least 10 days’ prior
notice (with a copy to the Administrative Agent) of such additional interest or costs from such
Lender. If a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such
additional interest or costs shall be due and payable 10 days from receipt of such notice.

3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative
Agent) from time to time, the Company shall promptly compensate (or cause the applicable Borrower
to compensate) such Lender for and hold such Lender harmless from any loss, cost or expense
incurred by it as a result of:

(a) any continuation, conversion, payment or prepayment of any Loan other than a Base Rate
Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

(b) any failure by any Borrower (for a reason other than the failure of such Lender to make a
Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the date or in
the amount notified by the Company or the applicable Borrower;

(c) any failure by any Borrower to make payment of any Loan or drawing under any Letter of
Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date
or any payment thereof in a different currency; or

(d) any assignment of a Eurocurrency Rate Loan or Peso Rate Loan on a day other than the last
day of the Interest Period therefor as a result of a request by the Company pursuant to Section
10.13;

but excluding any loss of anticipated profits and including any foreign exchange losses and any
loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain
such Loan, from fees payable to terminate the deposits from which such funds were obtained or from
the performance of any foreign exchange contract. The Company shall also pay (or cause the
applicable Borrower to pay) any customary administrative fees charged by such Lender in connection
with the foregoing.

 

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For purposes of calculating amounts payable by the Company (or the applicable Borrower) to the
Lenders under this Section 3.05, each Lender shall be deemed to have funded each
Eurocurrency Rate Loan made by it at the Eurocurrency Rate for such Loan and each Peso Rate Loan
made by it at the Peso Rate for such Loan by a matching deposit or other borrowing in the offshore
interbank market for such currency for a comparable amount and for a comparable period, whether or
not such Loan was in fact so funded.

3.06 Mitigation Obligations; Replacement of Lenders. (a) Designation of a Different
Lending Office. If any Lender requests compensation under Section 3.04, or any
Borrower is required to pay any additional amount to any Lender, the L/C Issuer, or any
Governmental Authority for the account of any Lender or the L/C Issuer pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender or the
L/C Issuer shall, as applicable, use reasonable efforts to designate a different Lending Office for
funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another
of its offices, branches or affiliates, if, in the judgment of such Lender or the L/C Issuer, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such
Lender or the L/C Issuer, as the case may be, to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender or the L/C Issuer, as the case may be. The Company
hereby agrees to pay (or to cause the applicable Borrower to pay) all reasonable costs and expenses
incurred by any Lender or the L/C Issuer in connection with any such designation or assignment.

(b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, the Company
may replace such Lender in accordance with Section 10.13.

3.07 Survival. All of the Borrowers’ obligations under this Article III shall survive
termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and
resignation of the Administrative Agent.

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and each Lender
to make its initial Credit Extension hereunder is subject to satisfaction of the following
conditions precedent:

(a) The Administrative Agent’s receipt of the following, each of which shall be originals or
telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a
Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of
certificates of governmental officials, a recent date before the Closing Date) and each in form and
substance satisfactory to the Administrative Agent and each of the Lenders:

(i) executed counterparts of this Agreement, the Guaranties and the Perfection
Certificate;

(ii) Notes executed by each Borrower in favor of each Lender requesting Notes;

 

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(iii) a pledge and security agreement, in substantially the form of Exhibit
F (together with each other pledge and security agreement and pledge and
security agreement supplement delivered pursuant to Section 6.13, in each
case as amended, the “Security Agreement”), duly executed by the Company and
each of the Guarantors listed on Schedule G-1 that is a Domestic Subsidiary,
together with:

(A) certificates representing the Pledged Equity referred to therein
accompanied by undated stock powers executed in blank,

(B) proper Financing Statements in form appropriate for filing under
the Uniform Commercial Code of all jurisdictions that the Administrative
Agent may deem necessary or desirable in order to perfect the Liens created
under the Security Agreement, covering the Collateral described in the
Security Agreement, and

(C) completed requests for information, dated on or before the date of
the initial Credit Extension, listing the financing statements referred to
in clause (B) above and all other effective financing statements filed in
the jurisdictions referred to in clause (B) above that name any Loan Party
that is a party to the Security Agreement as debtor, together with copies of
such other financing statements;

(iv) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as the
Administrative Agent may require evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan Party
is a party;

(v) such documents and certifications as the Administrative Agent may
reasonably require (but only to the extent such concepts exist under applicable law)
to evidence that each Loan Party is duly organized or formed, and that each Borrower
and Guarantor (other than Herbalife Taiwan) is validly existing, in good standing
and qualified to engage in business in each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such
qualification, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect;

 

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(vi) favorable opinions of Gibson, Dunn & Crutcher, special counsel to the Loan
Parties, in substantially the form of Exhibit J-1, Maples and Calder,
special Cayman Islands counsel to the Loan Parties, in substantially the form of
Exhibit J-2, of Arendt & Medernach, special Luxembourg counsel to the Loan
Parties, in substantially the form of Exhibit J-3, and of Brownstein Hyatt
Farber Schreck, LLP, special Nevada counsel to the Loan Parties, in substantially
the form of Exhibit J-4, each addressed to the Administrative Agent and each
Lender;

(vii) a certificate of a Responsible Officer of Holdings either (A) attaching
copies of all consents, licenses and approvals required in connection with the
execution, delivery and performance by each Loan Party and the validity against each
Loan Party of the Loan Documents to which it is a party, and such consents, licenses
and approvals shall be in full force and effect, or (B) stating that no such
consents, licenses or approvals are so required;

(viii) a certificate signed by a Responsible Officer of Holdings certifying (A)
that the conditions specified in Sections 4.02(a) and (b) have been
satisfied (other than any such conditions as are subject to the judgment or
discretion of the Administrative Agent or any Lender), (B) that there has been no
event or circumstance since the date of the Audited Financial Statements that has
had or could be reasonably expected to have, either individually or in the
aggregate, a Material Adverse Effect and (C) a calculation of the Consolidated Total
Leverage Ratio as of the last day of the fiscal quarter of the Company most recently
ended prior to the Closing Date;

(ix) a duly completed Compliance Certificate as of the last day of the fiscal
quarter of the Company ended on December 31, 2010, signed by a Responsible Officer
of the Company;

(x) evidence that all insurance required to be maintained pursuant to the Loan
Documents has been obtained and is in effect; and

(xi) evidence that the Existing Credit Agreement has been or concurrently with
the Closing Date is being terminated and all Liens securing obligations under the
Existing Credit Agreement have been, concurrently with the Closing Date are being,
or provision being provided therefor to be, released.

(b) Any fees required to be paid on or before the Closing Date shall have been paid.

(c) Unless waived by the Administrative Agent, the Company shall have paid all reasonable and
documented fees, charges and disbursements of counsel to the Administrative Agent (directly to such
counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it
through the closing proceedings (provided that such estimate shall not thereafter preclude a final
settling of accounts between the Company and the Administrative Agent).

(d) The Closing Date shall have occurred on or before March 31, 2011.

 

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Without limiting the generality of the provisions of the last paragraph of Section
9.03, for purposes of determining compliance with the conditions specified in this Section
4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved
or accepted or to be satisfied with, each document or other matter required thereunder to be
consented to or approved by or acceptable or satisfactory to a Lender unless the
Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request
for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed
Loans to the other Type, or a continuation of Eurocurrency Rate Loans or Peso Rate Loans) is
subject to the following conditions precedent:

(a) The representations and warranties of (i) the Borrowers contained in Article V and
(ii) each Loan Party contained in each other Loan Document or in any document furnished at any time
under or in connection herewith or therewith, shall be true and correct in all material respects on
and as of the date of such Credit Extension, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be true and correct in
all material respects as of such earlier date, and except that for purposes of this Section
4.02, the representations and warranties contained in subsection (a) of Section 5.05
shall be deemed to refer to the most recent statements furnished pursuant to clause (a) of
Section 6.01.

(b) No Default shall exist, or would result from such proposed Credit Extension or the
application of the proceeds thereof.

(c) The Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall
have received a Request for Credit Extension in accordance with the requirements hereof.

(d) If the applicable Borrower is a Designated Borrower, then the conditions of Section
2.14 to the designation of such Borrower as a Designated Borrower shall have been met to the
satisfaction of the Administrative Agent.

(e) In the case of a Credit Extension to be denominated in an Alternative Currency, there
shall not have occurred any change in national or international financial, political or economic
conditions or currency exchange rates or exchange controls which in the reasonable opinion of the
Administrative Agent, the Required Lenders (in the case of any Loans to be denominated in an
Alternative Currency) or the L/C Issuer (in the case of any Letter of Credit to be denominated in
an Alternative Currency) would make it impracticable for such Credit Extension to be denominated in
the relevant Alternative Currency.

 

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Each Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Committed Loans to the other Type or a continuation of Eurocurrency Rate Loans or
Peso Rate Loans) submitted by the Company shall be deemed to be a representation and warranty that
the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as
of the date of the applicable Credit Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

Except as otherwise provided in Sections 5.12 and 5.18, each Borrower
represents and warrants to the Administrative Agent and the Lenders that:

5.01 Existence, Qualification and Power. Each Loan Party (a) is duly organized, incorporated
or formed, (b) except prior to the satisfaction of the covenant set forth in Section 6.16
in the case of Herbalife Taiwan, is validly existing and, as applicable, in good standing under the
Laws of the jurisdiction of its incorporation or organization (to the extent such concepts are
relevant under the laws of the relevant jurisdiction), (c) has all requisite power and authority
and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease
its assets and carry on its business and (ii) execute, deliver and perform its obligations under
the Loan Documents to which it is a party, and (d) except prior to the satisfaction of the covenant
set forth in Section 6.16 in the case of Herbalife Taiwan, is duly qualified and is
licensed and, as applicable, in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in clause (c)(i) or (d), to the extent
that failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document to which such Person is party, have been duly authorized by all
necessary corporate or other organizational action, and do not and will not (a) contravene the
terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or
contravention of or require any payment to be made under (i) any Contractual Obligation to which
such Person is a party or affecting such Person or the properties of such Person or any of its
Subsidiaries except for conflicts, breaches and payments that could not reasonably be expected to
result in a Material Adverse Effect or (ii) any order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which such Person or its property is subject except
for conflicts, breaches and payments that could not reasonably be expected to result in a Material
Adverse Effect; (c) violate any Law except for violations that could not reasonably be expected to
result in a Material Adverse Effect; or (d) result in the creation or imposition of any Lien,
except Liens created under the Loan Documents.

5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with (a) the execution, delivery or performance
by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, (b) the
grant by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (c) the
perfection or maintenance of the Liens created under the Collateral Documents (including the first
priority nature thereof) or (d) the exercise by the Administrative Agent or any Lender of its
rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the
Collateral Documents, except for (i) the authorizations, approvals, actions, notices and filings
listed on Schedule 5.03, all of which have been duly obtained, taken, given or made and are
in full force and effect, (ii) filings necessary to perfect (or, in the case of equity interests of
Foreign Subsidiaries, create or enforce) Liens created under the Loan Documents, (iii) notices,
filings and the payment of appropriate stamp or other duties in
connection with the enforcement of this Agreement and other Loan Documents against any Foreign
Obligor in their jurisdiction of organization and (iv) consents, approvals, registrations, filings
or actions the failure of which to obtain or perform could not reasonably be expected to result in
a Material Adverse Effect.

 

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5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, subject to (a) applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law
and (b) the Foreign Obligor Enforceability Exceptions.

5.05 Financial Statements; No Material Adverse Effect. (a) The Audited Financial Statements
(i) were prepared in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (ii) fairly present the financial
condition of Holdings and its Subsidiaries as of the date thereof and their results of operations
for the period covered thereby in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein.

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

5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending, at
law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party
or against any of their properties or revenues that (a) purport to affect or pertain to this
Agreement or any other Loan Document, or any of the transactions contemplated hereby, or (b) except
as disclosed in Schedule 5.06, either individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

5.07 No Default. No Default has occurred and is continuing or would result from the
consummation of the transactions contemplated by this Agreement or any other Loan Document.

 

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5.08 Ownership of Property; Liens. Each Borrower and each of its respective Subsidiaries has
good record and marketable title in fee simple to, or valid leasehold interests in, all real and
personal property necessary or used in the ordinary conduct of its business and purported to be
owned or leased by such Borrower or Subsidiary, except for such defects in title as could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Borrowers and their Subsidiaries is subject to no Liens, other than Liens permitted
by Section 7.01.

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

5.10 Insurance. The properties of the Borrowers and their Subsidiaries are insured with
financially sound and reputable insurance companies not Affiliates of the Borrowers, in such
amounts (after giving effect to any self-insurance), with such deductibles and covering such risks
as are customarily carried by companies engaged in similar businesses and owning similar properties
in localities where such Borrower or the applicable Subsidiary operates.

5.11 Taxes. The Loan Parties have filed all federal, state and other material tax returns and
reports required to be filed, and have paid all taxes shown thereon as being due and payable,
except (i) those which are being contested in good faith by appropriate proceedings diligently
conducted and for which adequate reserves have been provided in accordance with GAAP or (ii) to the
extent that non-payment thereof could not reasonably be expected to result in a Material Adverse
Effect. Except as otherwise disclosed on Schedule 5.11, there is no tax assessment proposed in
writing against any Loan Party that would, if made, have a Material Adverse Effect. Neither any
Borrower nor any Subsidiary thereof is party to any tax sharing agreement.

5.12 ERISA Compliance. (a) Each Plan is in compliance with the applicable provisions of
ERISA, the Code and other Federal or state Laws except for such noncompliance which could not
reasonably be expected to have a Material Adverse Effect. 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 the Company, nothing has occurred which would prevent, or cause the loss of,
such qualification, except, in each case, for such determination of disqualification or loss of
qualification which could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The Company 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, except, in each case, for such failure to contribute or application for waiver as
could not reasonably expected to have a Material Adverse Effect.

 

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

(c) (i) No ERISA Event has occurred or is reasonably expected to occur that could reasonably
be expected to result in a Material Adverse Effect; (ii) no Pension Plan has any Unfunded Pension
Liability that could reasonably be expected to result in a Material Adverse Effect; (iii) neither
the Company 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) that could reasonably be expected
to result in a Material Adverse Effect; (iv) neither the Company 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 Section 4201 or
4243 of ERISA with respect to a Multiemployer Plan that could reasonably be expected to result in a
Material Adverse Effect; and (v) neither the Company nor any ERISA Affiliate has engaged in a
transaction that could be subject to Section 4069 or 4212(c) of ERISA that could reasonably be
expected to result in a Material Adverse Effect.

5.13 Subsidiaries; Equity Interests. The Borrowers have no Subsidiaries on the Closing Date,
other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the
outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and
nonassessable and are owned, as of the Closing Date, by a Loan Party in the amounts specified on
Part (a) of Schedule 5.13 free and clear of all Liens except Permitted Liens. As of the
Closing Date, the Borrowers have no equity investments in any other corporation or entity other
than (1) those specifically disclosed in Part (b) of Schedule 5.13, and (2) equity
investments having an aggregate value at any time of no more than $10,000,000.

5.14 Margin Regulations; Investment Company Act. (a) No Borrower is engaged or will engage,
principally or as one of its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose
of purchasing or carrying margin stock.

(b) No Borrower, no Person Controlling any Borrower and no Subsidiary of any Borrower is or is
required to be registered as an “investment company” under the Investment Company Act of 1940.

5.15 Disclosure. Each Borrower has disclosed to the Administrative Agent and the Lenders all
agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries
is subject, and all other matters known to it, that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect. No report, financial statement,
certificate or other written information (other than projected financial information, and other
forward looking information and information of a general economic or industry specific nature),
when taken as a whole with all other information, when furnished by or on behalf of any Loan Party
to the Administrative Agent or any Lender in connection with the transactions contemplated hereby
and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in
each case, as modified or supplemented by other information so furnished) contained any material
misstatement of fact or omits to state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, Holdings represents only that such
information was prepared in good faith based upon assumptions believed to be reasonable at the
time; and provided, further that, with respect to any financial statements not constituting
projected financial information, Holdings only represents that such financial statements present
fairly in all material respects the consolidated financial condition of the applicable Persons as
of the dates indicated.

 

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

5.17 Taxpayer Identification Number; Other Identifying Information. The true and correct U.S.
taxpayer identification number of the Company and each other Domestic Subsidiary party to a Loan
Document as of the Closing Date, is set forth on Schedule 10.02. The true and correct
unique identification number of each of Holdings, HIL and each other Foreign Obligor that has been
issued by its jurisdiction of organization and the name of such jurisdiction, as of the Closing
Date, are set forth on Schedule 5.17.

5.18 Representations as to Foreign Obligors. Each of Holdings and HIL represents and warrants
to the Administrative Agent and the Lenders that:

(a) It is, and each other Person that is a Foreign Obligor as of the Closing Date is, to the
extent the concept is applicable in the relevant jurisdiction, subject to civil and commercial Laws
with respect to its obligations under this Agreement and the other Loan Documents to which it is a
party (collectively as to each such party, the “Applicable Foreign Obligor Documents”), and
the execution, delivery and performance by it and by each other Person that is a Foreign Obligor as
of the Closing Date of the Applicable Foreign Obligor Documents constitute and will constitute, to
the extent the concept is applicable in the relevant jurisdiction, private and commercial acts and
not public or governmental acts. None of Holdings or HIL or any other Person that is a Foreign
Obligor as of the Closing Date nor any of their respective property has any immunity from
jurisdiction of any court or from any legal process (whether through service or notice, attachment
prior to judgment, attachment in aid of execution, execution or otherwise) under the laws of the
jurisdiction in which such party is organized and existing in respect of its obligations under the
Applicable Foreign Obligor Documents.

(b) The Applicable Foreign Obligor Documents are in proper legal form under the Laws of the
jurisdiction in which Holdings, HIL and each other Person that is a Foreign Obligor as of the
Closing Date are each incorporated or organized and existing for the enforcement thereof against
such party under the Laws of such jurisdiction, and to ensure the legality, validity,
enforceability, or admissibility in evidence of the Applicable Foreign Obligor Documents, subject
to the exceptions on the enforceability thereof described in Section 5.04 (including, without
limitation, the Foreign Obligor Enforceability Exceptions) and any requirement under local law that
the applicable Foreign Obligation Document, prior to admission into any relevant foreign court, be
translated into any language required by such court. It is not necessary to ensure the legality,
validity, enforceability, or admissibility in evidence of the Applicable Foreign Obligor Documents
that the Applicable Foreign Obligor Documents be filed, registered or recorded with, or executed or
notarized before, any court or other authority in the jurisdiction in which such Foreign Obligor is
organized and existing or that any registration charge or stamp or similar tax be paid on or in
respect of the Applicable Foreign Obligor Documents or any other document, except for (i) any such
filing, registration, recording, execution or notarization as has been made or is not required to

 

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be made until the Applicable
Foreign Obligor Document or any other document is sought to be enforced, (ii) any charge or
tax as has been timely paid, (iii) any stamp duty imposed by the Cayman Islands or other
jurisdiction in the event that the Loan Documents are executed in, or thereafter brought to, the
Cayman Islands or such other jurisdiction for enforcement or otherwise and (iv) in case of
presentation of any Loan Documents, either directly or by way of reference to a Luxembourg court or
autorité constituée, where such court or autorité constituée may require registration of all or
part of the Loan Documents with the Administration de l’Enregistrement et des Domaines in
Luxembourg, registration duties at a fixed rate of EUR 12 or at an ad valorem rate depending on the
nature of the Loan Documents may become due and payable.

(c) There is no tax, levy, impost, duty, fee, assessment or other governmental charge, or any
deduction or withholding, imposed by any Governmental Authority in or of the jurisdiction in which
Holdings, HIL or any other Person that is a Foreign Obligor as of the Closing Date is organized and
existing either (i) on or by virtue of the execution or delivery of the Applicable Foreign Obligor
Documents or (ii) on any payment to be made by such party pursuant to the Applicable Foreign
Obligor Documents, except as has been disclosed to the Administrative Agent.

(d) The execution, delivery and performance of the Applicable Foreign Obligor Documents
executed by Holdings, HIL and each other Person that is a Foreign Obligor as of the Closing Date
are, under applicable foreign exchange control regulations of the jurisdiction in which such
Foreign Obligor is organized and existing, not subject to any notification or authorization except
(i) such as have been made or obtained or (ii) such as cannot be made or obtained until a later
date (provided that any notification or authorization described in clause (ii) shall be
made or obtained as soon as is reasonably practicable).

5.19 Collateral Documents.

(a) The provisions of the Collateral Documents are effective under the laws of the State of
New York to create in favor of the Administrative Agent for the benefit of the Secured Parties a
legal, valid and enforceable Lien (subject to Liens permitted by Section 7.01) on all
right, title and interest of the respective Loan Parties that are party to the Collateral Documents
in the Collateral described therein.

(b) Upon the filing of Financing Statements and the delivery of the certificates representing
the Pledged Equity, each as contemplated hereby or by the Collateral Documents the Liens created by
the Collateral Documents will be perfected, to the extent such filings or the delivery of such
certificates are effective to perfect such Liens.

 

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5.20 Solvency. The Borrowers and their Subsidiaries, together on a consolidated basis, are
Solvent.

5.21 USA PATRIOT Act. Each Loan Party is in compliance, in all material respects, with the
Act.

ARTICLE VI.

AFFIRMATIVE COVENANTS

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than contingent indemnity obligations) shall remain unpaid or unsatisfied, or any
Letter of Credit shall remain outstanding, the Borrowers shall, and shall (except in the case of
the covenants set forth in Sections 6.01, 6.02, and 6.03) cause each
Subsidiary to:

6.01 Financial Statements. Deliver to the Administrative Agent and each Lender, in form and
detail satisfactory to the Administrative Agent and the Required Lenders:

(a) Annual. As soon as available, but in any event within 90 days after the end of
each fiscal year of Holdings, (i) the consolidated balance sheet of Holdings as of the end of such
fiscal year and related consolidated statements of income, cash flows and shareholders’ equity for
such fiscal year, and notes thereto, all prepared in a manner acceptable to the SEC and accompanied
by an opinion of KPMG LLP or other independent public accountants of recognized national standing
(which opinion shall not be qualified as to scope or contain any going concern or other
qualification), stating that such financial statements fairly present, in all material respects,
the consolidated financial condition, results of operations, cash flows and changes in
shareholders’ equity of Holdings and its consolidated Subsidiaries as of the end of and for such
fiscal year in accordance with GAAP; and (ii) a management’s discussion and analysis of the
financial condition and results of operations for such fiscal year, as compared to the previous
fiscal year; and

(b) Quarterly. As soon as available, but in any event within 60 days after the end of
each of the first three fiscal quarters of each fiscal year of Holdings, (i) the consolidated
balance sheet of Holdings as of the end of such fiscal quarter and related consolidated statements
of income and cash flows for such fiscal quarter and for the then elapsed portion of the fiscal
year, in comparative form with the consolidated statements of income and cash flows for the
comparable periods in the previous fiscal year, and notes thereto, all prepared in a manner
acceptable to the SEC and accompanied by a certificate of a Responsible Officer stating that such
financial statements fairly present, in all material respects, the consolidated financial
condition, results of operations and cash flows of Holdings and its consolidated Subsidiaries as of
the date and for the periods specified in accordance with GAAP, subject to normal year-end audit
adjustments and the absence of footnotes; and (ii) a management’s discussion and analysis of the
financial condition and results of operations for such fiscal quarter and the then elapsed portion
of the fiscal year, as compared to the comparable periods in the previous fiscal year.

 

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6.02 Certificates; Other Information. Deliver to the Administrative Agent, in form and detail
reasonably satisfactory to the Administrative Agent:

(a) concurrently with the delivery of the financial statements referred to in Sections
6.01(a) and (b), a duly completed Compliance Certificate signed by the chief executive
officer, chief financial officer, treasurer or controller of Holdings;

(b) promptly after any request by the Administrative Agent, copies of any management letters
submitted to the board of directors (or the audit committee of the board of directors) of any
Borrower by independent accountants in connection with the accounts or books of such Borrower or
any Subsidiary thereof, or any audit of any of them;

(c) at least once in any calendar year, and in any event within 60 days of the date the below
referenced budget or strategic plan, as the case may be, is approved by the board of directors of
Holdings, (i) an annual budget of Holdings and its Subsidiaries in form reasonably satisfactory to
the Administrative Agent prepared by Holdings for each fiscal month of the fiscal year covered by
such budget prepared in detail and (ii) a strategic plan prepared in summary form; and, in the case
of the annual budget, such budget shall be prepared in detail with appropriate presentation and
discussion of the principal assumptions upon which such budget is based, accompanied by the
statement of a Responsible Officer of Holdings to the effect that the budget is a reasonable
estimate for the period covered thereby (it being understood that actual results may vary
significantly from any such projected or forecasted results);

(d) promptly after the furnishing thereof, copies of any statement or report furnished to any
holder of public debt securities of any Loan Party or any Subsidiary thereof pursuant to the terms
of any indenture or similar document governing such public debt securities and not otherwise
required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of
this Section 6.02;

(e) promptly, and in any event within five Business Days after receipt thereof by any Loan
Party or any Subsidiary thereof, copies of each notice or other correspondence received from the
SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or
possible investigation or other inquiry by such agency regarding financial or other operational
results of any Loan Party or any Subsidiary thereof; and

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

 

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Documents required to be delivered pursuant to Section 6.01(a) or (b) (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which
any Borrower posts such documents, or provides a link thereto on such Borrower’s website on the
Internet at the website address listed on Schedule 10.02; or (ii) on which such documents
are posted on such Borrower’s behalf on an Internet or intranet website, if any, to which each
Lender and the Administrative Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that (i) each Borrower shall
deliver paper copies of such documents to the Administrative Agent or any Lender that requests such
Borrower to deliver such paper copies until a written request to cease delivering paper copies is
given by the Administrative Agent or such Lender and (ii) the applicable Borrower shall notify the
Administrative Agent (by telecopier or electronic mail) of the posting of any such documents and
provide to the Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents. Notwithstanding anything contained herein, in every instance Holdings
or the Company shall be required to provide paper copies of the
Compliance Certificates required by Section 6.02(b) to the Administrative Agent.
Except for such Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the documents referred to above, and in any event
shall have no responsibility to monitor compliance by the Borrowers with any such request for
delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining
its copies of such documents.

Each Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will
make available to the Lenders and the L/C Issuer materials and/or information provided by or on
behalf of such Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to
receive material non-public information with respect to any of the Borrowers or their respective
Affiliates, or the respective securities of any of the foregoing, and who may be engaged in
investment and other market-related activities with respect to such Persons’ securities. Each
Borrower hereby agrees that (w) all Borrower Materials that are to be made available to Public
Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the
word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials
“PUBLIC,” the Borrowers shall be deemed to have authorized the Administrative Agent, the Arrangers,
the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrowers or their respective securities for purposes of
United States Federal and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as set forth in
Section 10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated “Public Side Information;” and (z) the
Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are
not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Side Information.”

6.03 Notices. Promptly notify the Administrative Agent:

(a) of the occurrence of any Default;

(b) of any matter that has resulted or could reasonably be expected to result in a Material
Adverse Effect;

(c) of the occurrence of any ERISA Event; and

 

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(d) of any material change in accounting policies or financial reporting practices by any
Borrower or any Subsidiary thereof, other than pursuant to or in connection with the implementation
of or transition to International Financial Reporting Standards, including any determination by
Holdings referred to in Section 2.10(b); and

(e) of any announcement by Moody’s or S&P of any change in a Debt Rating.

Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of Holdings setting forth details of the occurrence referred to therein and
stating what action Holdings has taken and proposes to take with respect thereto. Each notice
pursuant to Section 6.03(a) shall describe with particularity any and all provisions of
this Agreement and any other Loan Document that have been breached.

6.04 Payment of Obligations. Pay and discharge as the same shall become due and payable all
obligations and liabilities to the extent the failure to do so could reasonably be expected to
result in a Material Adverse Effect, including (a) all tax liabilities, assessments and
governmental charges or levies upon it or its properties or assets, unless (i) the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the applicable Loan Party or (ii) the non-payment
thereof could not reasonably be expected to result in a Material Adverse Effect; (b) all lawful
claims which, if unpaid, would by law become a Lien (other than a Permitted Lien) upon its
property; and (c) all Indebtedness, as and when due and payable, but subject to any grace periods
or subordination provisions contained in any instrument or agreement evidencing such Indebtedness,
if the non-payment thereof could reasonably be expected to result in a Material Adverse Effect.

6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable
in the normal conduct of its business, except to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its
registered patents, copyrights, trademarks, trade names and service marks, the non-preservation of
which could reasonably be expected to have a Material Adverse Effect.

6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted and except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; and (b) make all necessary repairs
thereto and renewals and replacements thereof, except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Borrowers, insurance with respect to its properties and business
against loss or damage of the kinds customarily insured against by Persons engaged in the same or
similar business, of such types and in such amounts (after giving effect to any self-insurance) as
are customarily carried under similar circumstances by such other Persons.

 

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

6.09 Books and Records. (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP (or the foreign equivalent thereof) consistently
applied shall be made of all financial transactions and matters involving the assets and business
of such Borrowers or such Subsidiary, as the case may be; and (b) maintain such books of record and
account in material conformity with all applicable requirements of any Governmental Authority
having regulatory jurisdiction over such Borrower or such Subsidiary, as the case may be.

6.10 Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and independent public
accountants, all at such reasonable times during normal business hours and upon reasonable advance
notice (no more frequently than twice during any fiscal year of Holdings and at the sole cost and
expense of the Lenders unless a Default or Event of Default shall have occurred and be continuing);
provided, however, that when an Event of Default exists the Administrative Agent or
any Lender (or any of their respective representatives or independent contractors) may do any of
the foregoing at the expense of the Borrowers at any time during normal business hours and without
advance notice.

6.11 Use of Proceeds. Use the proceeds of the Credit Extensions (i) for general corporate or
other purposes not in contravention of any Law or of any Loan Document or (ii) to repay obligations
outstanding under the Existing Credit Agreement.

6.12 Approvals and Authorizations. Maintain all authorizations, consents, approvals and
licenses from, exemptions of, and filings and registrations with, each Governmental Authority of
the jurisdiction in which each Foreign Obligor is organized and existing, and all approvals and
consents of each other Person in such jurisdiction, in each case that are required in connection
with the Loan Documents, except to the extent where the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

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6.13 Additional Guarantors; Additional Collateral.

(a) Subject to this Section 6.13 and except during a Ratings Increase Period or to the
extent the Administrative Agent and the Borrowers mutually agree that any of the following is not
commercially reasonable (taking into account the expense of obtaining the same, the ability of the
Company or any Domestic Subsidiary thereof that is a Loan Party to obtain any necessary approvals
or consents required to be obtained under applicable law in connection therewith, and the
effectiveness and enforceability thereof under applicable law), with respect to any assets acquired
after the Closing Date by the Company or any Domestic Subsidiary thereof that is a Loan Party that
are intended to be subject to the Lien created by any of the Collateral Documents but that are not
so subject, and with respect to any assets held by the Company or any Domestic Subsidiary thereof
that is a Loan Party on the Closing Date not made subject to a Lien created by any of the
Collateral Documents but of a type intended to be subject to the Lien created by the applicable
Collateral Documents (but, in any event, excluding any assets described in Section
6.13(b)), promptly (and in any event within 60 days after the acquisition thereof or upon the
Administrative Agent’s request): (i) execute and deliver to the
Administrative Agent such amendments or supplements to the relevant Collateral Documents or
such other documents as the Administrative Agent shall deem necessary or advisable to grant to the
Administrative Agent, for its benefit and for the benefit of the other Secured Parties, a Lien on
such properties or assets, subject to no Liens other than Permitted Liens and (ii) file or cause to
be filed financing statements in such jurisdictions as may be reasonably requested by the
Administrative Agent and as necessary to cause such Lien to be duly perfected to the extent
required by such Security Document in accordance with all applicable requirements of Law. The
Company or any such Domestic Subsidiary that is a Loan Party shall otherwise take such actions and
execute and/or deliver to the Collateral Agent such documents as the Administrative Agent shall
require to confirm the validity of the Lien of Collateral Documents against such after-acquired
properties or assets, and such assets held on the Closing Date not made subject to a Lien created
by any of the Collateral Documents.

(b) To the extent the Administrative Agent and the Borrowers mutually agree that any of the
following is commercially reasonable (taking into account the expense (including taxes) of
obtaining the same, the ability of the Borrowers or the relevant Subsidiary to obtain any necessary
approvals or consents required to be obtained under applicable law in connection therewith, and the
effectiveness and enforceability thereof under applicable law):

(i) with respect to any person that becomes, after the Closing Date, a Domestic
Subsidiary Guarantor, promptly, and in any event no later than 60 days after each such
person becomes a Domestic Subsidiary Guarantor, shall cause (A) such Domestic Subsidiary
Guarantor to become a Guarantor by executing a joinder instrument to the Domestic
Subsidiary Guaranty and, except during a Ratings Increase Period, a “Pledgor” under the
Security Agreement by executing a joinder instrument thereto, each in form and substance
reasonably satisfactory to the Administrative Agent and (B) except during a Ratings Increase
Period, the holder of the Equity Interests of such Domestic Subsidiary Guarantor, and the
Domestic Subsidiary Guarantor, to deliver to the Administrative Agent the certificates (if
any) representing the Equity Interests of the Domestic Subsidiary Guarantor and any
certificated Equity Interests constituting Collateral then held by the Domestic Subsidiary
Guarantor (provided, that, in no event shall the any certificated Equity Interests be
required to be pledged if such pledge is illegal under applicable law and no reasonable
alternative structure can be devised having substantially the same effect as such pledge
that would not be illegal under applicable law), together with undated stock powers executed
and delivered in blank by a duly authorized officer of the relevant parent company, as the
case may be; and

 

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(ii) with respect to any person that becomes, after the Closing Date, a Foreign
Subsidiary Guarantor, promptly, and in any event no later than 60 days after each such
person becomes a Foreign Subsidiary Guarantor shall cause such Foreign Subsidiary Guarantor
to become a Guarantor by executing (A) a joinder instrument to the Foreign Subsidiary
Guaranty, in form and substance reasonably satisfactory to the Administrative Agent; and, in
connection therewith, any such joinder instrument may contain such modifications to the
Foreign Subsidiary Guaranty as the Administrative Agent (in consultation with the Borrowers)
shall deem necessary or appropriate to take into account any legal restrictions of the
jurisdiction in which such Foreign Subsidiary Guarantor is
organized, provided such modifications do not expand the scope of debt guaranteed
pursuant to the Foreign Subsidiary Guaranty.

(c) Notwithstanding anything to the contrary contained herein, 66% of the Equity Interests of
any Foreign Subsidiary (and 100% of the Equity Interests of any Domesticated Foreign Subsidiary)
(exclusive, however, of any Immaterial Subsidiary) shall be subject to a Lien or be required to be
pledged under the applicable Loan Document (except to the extent the Administrative Agent and the
Borrowers mutually agree that such Lien or pledge is not commercially reasonable (taking into
account the expense, including taxes, of obtaining the same, the ability of the Company or such
Subsidiary to obtain any necessary approvals or consents required to be obtained under applicable
law in connection therewith, and the effectiveness and enforceability thereof under applicable
law)); and, in any event, no Loan Party shall be required to deliver any supplemental Loan Document
to give effect to this clause (c) that is governed by any law other than the laws of the
United States or any political subdivision of any thereof.

(d) At any time upon request of the Administrative Agent but except during a Ratings Increase
Period, promptly execute and deliver any and all further instruments and documents and take all
such other action as the Administrative Agent may deem necessary or desirable in obtaining the full
benefits of, or (as applicable) in perfecting and preserving the Liens of, such guaranties,
Security Agreement Supplements, intellectual property agreement supplements and other Collateral
Documents; provided, that, notwithstanding any other provision of the Loan
Documents, no Loan Party shall be required to (x) take any action to perfect the Liens created
under the Security Agreement, other than the filing of appropriate UCC1 financing statements and
the delivery of certificated securities (if any) evidencing the Equity Interests of a Subsidiary
thereof, the equity securities of which comprise an item of the Collateral (subject however to the
preceding clause (c) and any limitations under the Security Agreement)or (y) otherwise execute and
deliver any instrument or agreement governed by the laws of any jurisdiction other than the United
States or a political subdivision thereof.

6.14 Further Assurances. Promptly upon request by the Administrative Agent, or any Lender
through the Administrative Agent, (a) correct any material defect or error that may be discovered
in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and (b)
do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any
and all such further acts, certificates, assurances and other instruments as the Administrative
Agent, or any Lender through the Administrative Agent, may reasonably require from time to time in
order to carry out more effectively the purposes of the Loan Documents.

 

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6.15 Ratings Decrease Following Release of Collateral. On or after any date (a “Ratings
Decrease Date”) occurring after the release of any Liens pursuant to Section 2.16 and
on which the Debt Rating from S&P shall be BB+ or lower and the Debt Rating from Moody’s shall be
Ba1 or lower, the Company shall

(a) within 30 days after such Ratings Decrease Date, furnish to the Administrative Agent a
duly completed Perfection Certificate duly executed and delivered by the Company and each Domestic
Subsidiary Guarantor then in existence,

(b) within 60 days after such Ratings Decrease Date, the Company shall, and (to the extent the
Administrative Agent and the Borrowers mutually agree that any of the following is commercially
reasonable (taking into account the expense (including taxes) of obtaining the same, the ability of
the Borrowers or the relevant Subsidiary to obtain any necessary approvals or consents required to
be obtained under applicable law in connection therewith, and the effectiveness and enforceability
thereof under applicable law)) shall cause the Company and each Domestic Subsidiary Guarantor, to
the extent it has not already done so, to duly execute and deliver to the Administrative Agent a
Security Agreement and other instruments of the type specified in Section 4.01(a)(iii)),

(c) within 60 days after such Ratings Decrease Date, deliver to the Administrative Agent
documents of the types referred to in clauses (iv) and (v) of Section 4.01(a), all in form,
content and scope reasonably satisfactory to the Administrative Agent, and

(d) within 60 days after such Ratings Decrease Date, deliver to the Administrative Agent, upon
the request of the Administrative Agent in its sole discretion, a signed copy of a favorable
opinion, addressed to the Administrative Agent and the other Secured Parties, of counsel for the
Loan Parties acceptable to the Administrative Agent as to the matters contained in clauses (b), (c)
and (d) above.

The foregoing provisions of Section 6.15 to the contrary notwithstanding, no Loan Party that is (or
proposed to be) a party to the Security Agreement shall be required to (x) take any action to
perfect any Liens created under the Security Agreement, other than the filing of appropriate UCC1
financing statements and the delivery of certificated securities (if any) evidencing the Equity
Interests of any Subsidiary thereof, the equity securities of which comprise an item of the
Collateral (subject however to the limitations set forth herein and in the Security Agreement),or
(y) otherwise execute and deliver any instrument or agreement governed by the laws of any
jurisdiction other than the United States or a political subdivision thereof.

6.16 Good Standing. By not later than 60 days after the Closing Date or such later time as
the Administrative Agent shall agree in its sole discretion, the Company shall provide to the
Administrative Agent evidence that Herbalife Taiwan is in good standing under the Laws of the
jurisdiction of its incorporation.

 

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ARTICLE VII.

NEGATIVE COVENANTS

So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder (other than contingent indemnity obligations) shall remain unpaid or unsatisfied, or any
Letter of Credit shall remain outstanding, the Borrowers shall not, nor shall they permit any
Subsidiary to, directly or indirectly:

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

(a) Liens pursuant to any Loan Document;

(b) Liens existing on the date hereof, including Liens replacing such Liens (“Replacement
Liens”); provided that, (i) the aggregate principal amount of the Indebtedness, if any, secured
by such Liens does not increase, except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in connection with the
refinancing thereof and by an amount equal to any existing commitments unutilized thereunder; and
(ii) such Liens do not encumber any property other than the property subject thereto on the Closing
Date and (iii) any Lien securing Indebtedness in excess of (x) $5,000,000 individually, or (y)
$20,000,000 in the aggregate (when taken together with all other Liens outstanding in reliance on
this clause (b) that are not set forth on Schedule 7.01) shall only be permitted in
reliance on this clause (b) to the extent that such Lien is listed on Schedule 7.01;

(c) Liens for Taxes, provided, that, in the case of Taxes of a Loan Party such Taxes are not
yet due and payable or delinquent or constitute Liens for Taxes (including in respect of deposits
made in respect of such Taxes) that are being contested in good faith by appropriate proceedings
for which adequate reserves have been established in accordance with GAAP, which proceedings (or
orders entered in connection with such proceedings) have the effect of preventing the forfeiture or
sale of the property or assets subject to any such Lien;

(d) Liens in respect of property of a Loan Party or any Subsidiary thereof imposed by law that
were incurred in the ordinary course of business and do not secure Indebtedness for borrowed money,
such as carriers’, warehousemen’s, materialmen’s, landlords’, workmen’s, suppliers’, repairmen’s
and mechanics’ Liens and other similar Liens arising in the ordinary course of business;

(e) Liens (other than any Lien imposed by ERISA or Section 401(a)(29) or 412(n) or the Tax
Code) (i) imposed by law or deposits made in connection therewith in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and other types of social
security; (ii) incurred in the ordinary course of business to secure the performance of tenders,
statutory obligations (other than excise taxes), surety, stay, customs and appeal bonds, statutory
bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds
and other similar obligations (including obligations imposed by the applicable laws of foreign
jurisdictions and exclusive of obligations for the payment of borrowed money); or (iii) arising by
virtue of deposits made in the ordinary course of business to secure liability for premiums to
insurance carriers; provided that, with respect to clauses (i), (ii) and (iii) above such
Liens are set amounts not yet due and payable or delinquent or, to the extent such amounts are so
due and payable, such amounts are being contested in good faith by appropriate proceedings for
which adequate reserves have been established in accordance with GAAP, which proceedings for orders
entered in connection with such proceedings have the effect of preventing the forfeiture or sale of
the property or assets subject to any such Lien;

 

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(f) easements, rights-of-way, restrictions (including zoning restrictions), covenants,
encroachments, protrusions and other similar charges or encumbrances, and minor title deficiencies
on or with respect to any real property, in each case whether now or hereafter in existence, not
(i) securing Indebtedness and (ii) individually or in the aggregate materially interfering with the
conduct of the business of Holdings or its Subsidiaries at such real property;

(g) Liens arising out of judgments or awards not resulting in an Event of Default (including
notices of lis pendens and associated rights) and in respect of which judgments or awards the
applicable Loan Party or other Subsidiary shall in good faith be prosecuting an appeal or
proceedings for review in respect of which there shall be secured a subsisting stay of execution
pending such appeal or proceedings;

(h) Liens securing Indebtedness permitted under Section 7.03(f); provided that
(i) such Liens do not at any time encumber any property other than the property financed by such
Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost of the property
being acquired on the date of acquisition;

(i) Liens arising out of conditional sale, title retention, consignment or similar
arrangements for the sale of goods entered into by any Borrower or any Subsidiary thereof in the
ordinary course of business in accordance with the past practices of such Borrower or Subsidiary;

(j) bankers’ Liens, rights of set-off and other similar Liens existing solely with respect to
cash and cash equivalents on deposit in one or more accounts maintained by a Borrower or any
Subsidiary thereof, in each case granted (or otherwise arising) in the ordinary course of business
in favor of the bank or banks with which such accounts are maintained, securing amounts owing to
such bank with respect to cash management and operating account arrangements (including any Cash
Management Agreement), including those involving pooled accounts and netting arrangements; provided
that, in no case shall any such Liens secure (either directly or indirectly) the repayment of any
Indebtedness;

(k) Liens on assets of a Person (and its Subsidiaries) existing at the time such Person or
asset is acquired or merged with or into or consolidated with a Borrower or any of its Subsidiaries
(and not created in anticipation or contemplation thereof), together with any Replacement Liens
thereof; provided that, such Liens do not extend to assets not subject to such Liens at the
time of acquisition (other than improvements thereon) and, in respect of a Replacement Lien, such
Liens do not encumber any property other than the property subject thereto on the date such Person
or asset is acquired or merged with or into or consolidated with a Borrower or any of its
Subsidiaries;

 

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(l) licenses of intellectual property (i) granted by any Borrower or any of its Subsidiaries
in the ordinary course of business and not interfering in any material respect with the ordinary
conduct of the business of such Borrower or such Subsidiary and (ii) between or among any Borrower
and\or any Subsidiaries thereof;

(m) cash deposits required to secure obligations in respect of letters of credit and bank
Guarantees (i) actually outstanding on the Closing Date and listed on Schedule 7.03, (ii)
issued in respect of refinancings or renewals permitted under Section 7.03(b) or (iii)
issued in the ordinary course of business in an aggregate amount not to exceed $100,000,000 at any
time;

(n) restrictions on transfers of securities imposed by applicable securities laws;

(o) Liens in favor of the financial institutions providing cash pooling services to the
Borrowers and/or their Subsidiaries; provided, that such Liens are granted solely in the bank
accounts that are the subject of such pooling arrangements and the obligations secured thereby are
limited to the obligations arising under the pooling arrangements, including, without limitation,
for the fees and costs of the financial institutions providing such services;

(p) Liens securing Indebtedness permitted under Section 7.03(h) in an aggregate amount
not to exceed $100,000,000 at any time;

(q) Liens on Collateral (for so long as such Collateral is subject to the Lien of the
Collateral Documents) securing Indebtedness incurred pursuant to Section 7.03(j) in an
aggregate amount not to exceed $300,000,000, so long as (i) such Indebtedness shall be secured on
an equal and ratable basis with the Liens securing the Obligations pursuant to one or more
intercreditor agreements reasonably satisfactory to the Administrative Agent, (ii) such
Indebtedness has a stated maturity date not earlier than the Maturity Date and (iii) the
documentation governing such Indebtedness contains maintenance financial covenants no more
restrictive than those contained in this Agreement;

(r) other Liens on Collateral (for so long as such Collateral is subject to the Lien of the
Collateral Documents) securing Indebtedness incurred pursuant to Section 7.03(j) so long as
(i) such Liens are expressly junior to the Liens securing the Obligations pursuant one or more
intercreditor agreements reasonably satisfactory to the Administrative Agent and (ii) the
Indebtedness secured thereby (x) is subordinated in right of payment to the prior payment in full
of the Obligations pursuant to the intercreditor agreement or agreements referred to in clause (i)
above, (y) has a stated maturity date after (and no scheduled amortization prior to) the date six
months after the Maturity Date and (z) is governed by documentation containing terms and provisions
no more restrictive than those contained in this Agreement and otherwise reasonably acceptable to
the Administrative Agent;

(s) Liens on Indebtedness incurred pursuant to Section 7.03(g);

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

 

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(u) Any interest or title of a lessor, sublessor, licensor or sublicensor by a lessor’s,
sublessor’s, licensor’s or sublicensor’s interest under leases or licenses entered into by Holdings
or any Subsidiary as tenant, subtenant, licensee or sublicense in the ordinary course of business,
including, without limitation, any assignments of insurance or condemnation proceeds provided to
landlords (or their mortgagees) pursuant to the terms of any lease and Liens and rights reserved in
any lease for rent or for compliance with the terms of such lease;

(v) Liens securing reimbursement obligations in respect of documentary letters of credit or
bankers acceptances, provided, that such Liens attach only to the documents and goods covered
thereby and the proceeds thereof;

(w) Liens on insurance policies and the proceeds thereof securing the financing of the
premiums with respect thereto;

(x) Liens on (i) any cash earnest money deposits made by Holdings or any Subsidiary in
connection with any letter of intent or purchase agreement permitted hereunder and (ii) cash
relating to escrows established for an adjustment in purchase price or liabilities or indemnities
for Dispositions, to the extent the relevant Disposition is permitted hereby;

(y) Liens arising in connection with the filing of Uniform Commercial Code (or equivalent)
financing statements solely as a precautionary measure in connection with operating leases or the
consignment of goods;

(z) Liens in favor of a trustee in an indenture relating to any Indebtedness to the extent
such Liens secure only customary compensation and reimbursement obligations of such trustee;

(aa) Liens securing cash collateral in an aggregate amount not to exceed $10,000,000 at any
time granted to a financial counterparty to a Swap Contract that is not a Hedge Bank in connection
with the incurrence of Indebtedness incurred pursuant to Section 7.03(e); and

(bb) Liens securing Indebtedness and other obligations in an amount not to exceed $25,000,000
at any one time outstanding.

7.02 Investments. Make any Investments, except:

(a) Investments held by a Borrower or any Subsidiary thereof in the form of cash equivalents
or short-term marketable debt securities;

(b) Investments arising in connection with the purchase and sale of marketable securities to
facilitate the repatriation of earnings by Foreign Subsidiaries;

(c) advances to officers, directors and employees of the Borrowers and their Subsidiaries, for
travel, entertainment, relocation and analogous ordinary business purposes, in each case consistent
with past practices;

 

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(d) Investments of any Borrower in any other Borrower or in any Wholly-Owned Subsidiary and
Investments of any Wholly-Owned Subsidiary in any Borrower or in another Wholly-Owned Subsidiary;

(e) Investments consisting of extensions of credit in the nature of accounts receivable or
notes receivable arising from the grant of trade credit in the ordinary course of business;
Investments received in satisfaction or partial satisfaction thereof from financially troubled
account debtors to the extent reasonably necessary in order to prevent or limit loss; Investments
received in satisfaction of judgments, foreclosure of Liens or settlement of Indebtedness or other
obligations;

(f) Guarantees permitted by Section 7.03;

(g) Investments arising in connection with Swap Contracts permitted hereunder;

(h) Investments in respect of prepaid expenses, negotiable instruments held for collection or
lease, utility, workers’ compensation, performance and similar deposits provided to third parties
in the ordinary course of business;

(i) Investments constituting non-cash consideration received in connection with Dispositions
permitted by Section 7.05;

(j) other Investments so long as (i) both before and immediately after giving pro
forma effect to such Investment (x) no Default shall then exist and (y) the Loan Parties
shall be in compliance with Section 7.11 as of the most recent fiscal quarter for which
financial statements have been delivered pursuant to Section 6.01 hereof and (ii) in the
case of any purchase or other acquisition of capital stock or other equity securities of another
Person or any purchase or other acquisition (in one transaction or a series of related
transactions) of the assets of another Person that constitute a business unit or all or
substantially all of the business of such Person, (x) the lines of business of the Person to be (or
the property of which is to be) so purchased or otherwise acquired shall be substantially the same
(or reasonably related to) lines of business as one or more of the principal businesses of the
Borrowers and their Subsidiaries in the ordinary course and (y) any such newly-created or acquired
Wholly-Owned Subsidiary shall comply with the applicable requirements of Section 6.13.

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

(a) Indebtedness under the Loan Documents;

(b) Indebtedness outstanding on the date hereof and any refinancings, refundings, renewals or
extensions thereof; provided that (i) the amount of such Indebtedness is not increased at
the time of such refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing and by an amount equal to any existing commitments unutilized
thereunder and (ii) the terms relating to amortization, maturity date, collateral (if any) and
subordination (if any) of any such refinancing, refunding, renewing or extending Indebtedness, and
of any agreement entered into and of any instrument issued in connection therewith, are no less
favorable in any material respect to the Loan Parties or the Lenders than the terms of any
agreement or instrument governing the Indebtedness being refinanced, refunded, renewed or extended
and (iii) any Indebtedness that is in excess of (x) $5,000,000 individually, or (y) $20,000,000 in
the aggregate (when taken together with all other Indebtedness outstanding in reliance on this
clause (b) that are not set forth on Schedule 7.03)) shall only be permitted in reliance on this
clause (b) to the extent that such Lien is listed on Schedule 7.03;

 

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(c) Indebtedness of any Borrower to any other Borrower or any Wholly-Owned Subsidiary and
Indebtedness of any Wholly-Owned Subsidiary to any Borrower or other Wholly-Owned Subsidiary;

(d) Guarantees of any Borrower or any Subsidiary thereof in respect of Indebtedness otherwise
permitted hereunder of a Borrower or any Wholly-Owned Subsidiary;

(e) obligations (contingent or otherwise) of any Borrower or any Subsidiary thereof existing
or arising under any Swap Contract (together with any Guarantees thereof), provided that
(i) such obligations are (or were) entered into by such Person in the ordinary course of business
for the purpose of directly mitigating risks associated with liabilities, commitments, investments,
assets, or property held or reasonably anticipated by such Person, or changes in the value of
securities issued by such Person, and not for purposes of speculation or taking a “market view;”
and (ii) such Swap Contract does not contain any provision exonerating the non-defaulting party
from its obligation to make payments on outstanding transactions to the defaulting party;

(f) Indebtedness in respect of Capital Lease Obligations, Synthetic Lease Obligations and
purchase money obligations for fixed or capital assets within the limitations set forth in
Section 7.01(h); provided, however, that the aggregate amount of all such
Indebtedness at any one time outstanding shall not exceed $150,000,000, plus such additional
amounts as are hereafter required in accordance with changes imposed by GAAP to be reflected as a
Capital Lease Obligation;

(g) Indebtedness of Foreign Subsidiaries other than a Loan Party and incurred for working
capital purposes;

(h) Indebtedness of a Borrower or any Subsidiary thereof incurred in respect of bank
guarantees, letters of credit or similar instruments to support local regulatory, solvency,
consumer requirements and tax disputes not to exceed $100,000,000 in the aggregate at any time
outstanding;

(i) Cash Management Obligations and other Indebtedness in respect of netting services, cash
pooling arrangements, automatic clearinghouse arrangements, overdraft protections, employee credit
card programs and other cash management and similar arrangements in the ordinary course of
business, and any Guarantees thereof; and

 

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(j) other Indebtedness so long as both before and immediately after giving pro
forma effect to the incurrence of such Indebtedness (i) no Default shall then exist and
(ii) the Loan Parties shall be in compliance with Section 7.11 as of the most recent fiscal
quarter for which financial statements have been delivered pursuant to Section 6.01 hereof.

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

(a) any Subsidiary may merge with (i) a Borrower, provided that such Borrower shall be
the continuing or surviving Person, or (ii) any one or more other Subsidiaries, provided
that except as set forth in clause (c) below, when any Guarantor is merging with
another Subsidiary, the continuing or surviving Person shall be a Guarantor or shall become a
Guarantor within the timeframe set forth in Section 6.13;

(b) any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary
liquidation or otherwise) to a Borrower or to another Subsidiary; provided that except as
set forth in clause (c) below, if the transferor in such a transaction is a Guarantor, then the
transferee must either be a Borrower or a Guarantor; and

(c) subject to Section 6.13, any Subsidiary may merge, dissolve, liquidate,
consolidate with or into another Person, or Dispose of (whether in one transaction or in a series
of transactions, including pursuant to an insolvency or other proceeding intended to adjudicate or
preserve the rights of creditors) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, in each case so long as both before and
immediately after giving pro forma effect to such transaction or series of
transactions (i) no Default shall then exist and (ii) the Loan Parties shall be in compliance with
Section 7.11 as of the most recent fiscal quarter for which financial statements have been
delivered pursuant to Section 6.01 hereof.

7.05 Dispositions. Make any Disposition, except:

(a) Dispositions of obsolete or worn out or surplus property, or otherwise no longer used or
useful, whether now owned or hereafter acquired, in the ordinary course of business;

(b) Dispositions in the ordinary course of business;

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

(d) Dispositions of property by a Borrower or any Subsidiary to another Borrower or to a
Wholly-Owned Subsidiary;

 

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(e) Dispositions permitted by Section 7.04, or otherwise affected pursuant to an
Investment pursuant to Section 7.02, and the granting of Liens permitted under Section
7.01;

(f) Dispositions of Subsidiaries, or their property, that are not Loan Parties so long as both
before and immediately after giving pro forma effect to any such Disposition (i) no
Default shall then exist and (ii) the Loan Parties shall be in compliance with Section 7.11
as of the most recent fiscal quarter for which financial statements have been delivered pursuant to
Section 6.01 hereof; and

(g) Dispositions by the Borrowers and their Subsidiaries not otherwise permitted under this
Section 7.05; provided that (i) at the time of such Disposition, no Default shall
exist or would result from such Disposition and (ii) the aggregate book value of all property
Disposed of in reliance on this clause (g) in any fiscal year shall not exceed $75,000,000.

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

(a) each Subsidiary may make Restricted Payments to the Loan Parties and any other Person that
owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of the
type of Equity Interest in respect of which such Restricted Payment is being made;

(b) each Subsidiary may declare and make dividend payments or other distributions payable
solely in the common stock or other common Equity Interests of such Person;

(c) Holdings and each Subsidiary may purchase, redeem or otherwise acquire Equity Interests
issued by it with the proceeds received from the substantially concurrent issue of other common
Equity Interests; and

(d) Holdings may (i) declare or pay cash dividends to its shareholders and (ii) purchase,
redeem or otherwise acquire for cash Equity Interests issued by it so long as both before and
immediately after giving pro forma effect to such transaction or series of related
transactions (i) no Default shall then exist, (ii) the Consolidated Total Leverage Ratio as at the
end of the fiscal quarter of Holdings most recently ended for which financial statements have been
delivered pursuant to Section 6.01 shall not exceed 2.25 to 1.00 and (iii) the Loan Parties shall
be in compliance with Section 7.11(a) as of the end of the fiscal quarter most recently
ended for which financial statements have been delivered pursuant to Section 6.01.

7.07 Change in Nature of Business. Engage in any material line of business substantially
different from those lines of business conducted by the Borrowers and their Subsidiaries on the
date hereof or any business substantially related or incidental thereto or any reasonable extension
thereof.

7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate
of the Borrowers, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to such Borrower or such Subsidiary as could reasonably
be obtainable by such Borrower or such Subsidiary at the time in a comparable arm’s length
transaction with a Person other than an Affiliate, provided that the foregoing restriction shall
not apply to (i) transactions between and among the Borrowers and their Subsidiaries, (ii)
Restricted Payments permitted by Section 7.06, (iii) Dispositions permitted by Section 7.05, (iv)
Investments permitted by Section 7.02 and (v) customary compensation and indemnification may be
paid to officers, directors, employees and distributors.

 

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7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that (a) limits the ability (i) of any Borrower or any Subsidiary
thereof to make Restricted Payments to any Borrower or any Guarantor or to otherwise transfer
property to any Borrower or any Guarantor, (ii) of any Borrower or any Subsidiary thereof to
Guarantee the Indebtedness of any Borrower or (iii) of any Borrower or any Subsidiary thereof that
is party to the Security Agreement to create, incur, assume or suffer to exist Liens on property of
such Person; provided, however, that this clause (iii) shall not
prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness
permitted under Section 7.03(f) solely to the extent any such negative pledge relates to
the property financed by or the subject of such Indebtedness; or (b) except as contemplated by
Section 7.01(q) and (r), requires the grant of a Lien to secure an obligation of
such Person if a Lien is granted to secure another obligation of such Person; provided,
that this Section 7.09 shall not prohibit (I) any such limitation or requirement pursuant
to the terms of Indebtedness (x) of Foreign Subsidiaries, (y) constituting high yield debt
instruments and (z) outstanding under a credit agreement, loan agreement, indenture or other
documentation containing terms and provisions not materially less favorable to the applicable
obligor than the terms of this Agreement, in each case so long as such Indebtedness is permitted
under Section 7.03 or (II) (a) any Permitted Lien or any document or instrument governing
any Permitted Lien, provided that any such restriction contained therein relates only to
the asset or assets subject to such Permitted Lien, (b) customary restrictions and conditions
contained in any agreement relating to the sale of any property permitted under Section
7.05 pending the consummation of such sale, (c) agreements restricting assignments, subletting
or other transfers contained in leases, licenses, joint venture agreements and similar agreements
entered into in the ordinary course of business, in each case relating solely to the assets subject
to such lease or license or assets relating solely to the such joint venture agreement, (d)
contracts entered into in the ordinary course of business restricting the assignment of such
contracts, and (e) any such limitations or requirements that are binding on a Person at the time
such Person first became a Subsidiary of Holdings, so long as all such limitations and requirements
were not entered into in contemplation of such Person becoming a Subsidiary of Holdings, together
with any replacement agreement thereof so long as the terms thereof are not materially less
favorable to such Subsidiary.

7.10 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately,

(a) (i) to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or
to extend credit to others for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose in any case in violation of Regulation T, U or X
of the FRB or (ii) for any other purpose other than (x) for working capital and other lawful
corporate purposes and (y) to repay obligations outstanding under the Existing Credit Agreement;

 

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(b) knowingly in violation of the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as
amended) (the “Trading With the Enemy Act”) or any of the foreign assets control
regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
(the “Foreign Assets Control Regulations”) or any enabling legislation or executive order
relating thereto (which for the avoidance of doubt shall include, but shall not be limited to (i)
Executive Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the
“Executive Order”) and (ii) the Act. Furthermore, none of the Borrowers or their
Subsidiaries (x) shall become a “blocked person” as described in the Executive Order, the Trading
With the Enemy Act or the Foreign Assets Control Regulations or (y) knowingly engages or will
engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”
or in any manner violative in any material respects of any such order; or

(c) for any payments to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an official capacity,
knowingly in violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

7.11 Financial Covenants.

(a) Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage Ratio as
of the end of any fiscal quarter of Holdings to be less than 4.00 to 1.00.

(b) Consolidated Total Leverage Ratio. Permit the Consolidated Total Leverage Ratio as of the
end of any fiscal quarter of Holdings to be greater than 2.50 to 1.00.

7.12 Capital Expenditures. Make or become legally obligated to make any expenditure in
respect of the purchase or other acquisition of any fixed or capital asset (excluding normal
replacements and maintenance which are properly charged to current operations) unless both before
and immediately after giving pro forma effect to such expenditure (i) no Default
shall then exist and (ii) the Loan Parties shall be in compliance with Section 7.11 as of
the most recent fiscal quarter for which financial statements have been delivered pursuant to
Section 6.01 hereof.

7.13 Accounting Changes. Make any material change in accounting policies or reporting
practices, except as required or permitted by GAAP.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

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

(a) Non-Payment. Any Borrower or any other Loan Party fails to pay (i) when and as
required to be paid herein, and in the currency required hereunder, any amount of principal of any
Loan or any L/C Obligation, or (ii) within five Business Days after the same becomes due, any
interest on any Loan or on any L/C Obligation, or any fee due hereunder, or any other amount
payable hereunder or under any other Loan Document; or

 

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(b) Specific Covenants. Any Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 6.03(a), 6.05 (but solely with respect to the continued
existence of each Borrower), or 6.11 or Article VII; or

(c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part
to be performed or observed and such failure continues for 30 days after the earlier of (i) actual
knowledge by any Loan Party or (ii) receipt by Holdings of written notice thereof from the
Administrative Agent or Lenders constituting Required Lenders; provided, however, that with respect
to any default in the performance of the obligations under Section 5.09, such 30 day period shall
be extended if Holdings or the relevant Subsidiary has
commenced and continues diligently to pursue prudent and necessary response actions and
otherwise complies with Section 5.09 and the applicable Environmental Laws; or

(d) Representations and Warranties. Any representation, warranty, certification or
statement of fact made or deemed made pursuant to Section 4.02 by or on behalf of any
Borrower or any other Loan Party herein, in any other Loan Document, or in any document required to
have been delivered hereby or thereby shall be incorrect in any material respect when made,
confirmed or deemed made pursuant to Section 4.02 (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof); or

(e) Cross-Default. (i) Any Borrower or any Subsidiary thereof (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or
otherwise) in respect of any Indebtedness (other than Indebtedness hereunder and Indebtedness under
Swap Contracts) having an aggregate principal amount (including undrawn committed or available
amounts and including amounts owing to all creditors under any combined or syndicated credit
arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which
default or other event is to cause, or to permit the holder or holders of such Indebtedness (or a
trustee or agent on behalf of such holder or holders ) to cause, with the giving of notice if
required, such Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased
or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity; provided, that this clause (e)(B) shall not
apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the
assets securing such Indebtedness, if such sale or transfer is permitted hereunder; or (ii) there
occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract)
resulting from (A) any event of default under such Swap Contract as to which any Borrower or any
Subsidiary thereof is the Defaulting Party (as defined in such Swap Contract) or (B) any
Termination Event (as so defined) under such Swap Contract as to which any Borrower or any
Subsidiary thereof is an Affected Party (as so defined) and, in either event, (x) the Swap
Termination Value owed by such Loan Party as a result thereof is greater than the Threshold Amount
and (y) such Swap Termination Value has not been paid or discharged within 15 days of the
incurrence thereof; or

 

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(f) Insolvency Proceedings, Etc. Any Loan Party institutes or consents to the
institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, provisional liquidator, liquidator, rehabilitator or similar officer for it or for all
or any material part of its property; or any receiver, trustee, custodian, conservator, provisional
liquidator, liquidator, rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days
(or 90 calendar days in the case of any Loan Party that is a Foreign Subsidiary); or any proceeding
under any Debtor Relief Law relating to any such Person or to all or any material part of its
property is instituted without the consent of such Person and continues undismissed or unstayed for
60 calendar days (or 90 calendar days in the case of any Loan Party that is a Foreign Subsidiary),
or an order for relief is entered in any such proceeding; or

(g) Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or admits
in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ
or warrant of attachment or execution or similar process is issued or levied against all or any
material part of the property of any such Person and is not released, vacated or fully bonded
within 30 days after its issue or levy; or

(h) Judgments. There is entered against any Loan Party one or more final judgments or
orders for the payment of money in an aggregate amount (as to all such judgments or orders then
outstanding) exceeding the Threshold Amount (to the extent not covered by independent third-party
insurance as to which the insurer does not dispute coverage) and such judgment or order shall not
have been satisfied, vacated, discharged or stayed or bonded pending an appeal for a period of 30
consecutive days; or

(i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer
Plan which has resulted or could reasonably be expected to result in liability of any Borrower
under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount
in excess of the Threshold Amount, or (ii) any 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 the Threshold Amount; or

(j) Invalidity of Loan Documents. Any material provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as expressly permitted
hereunder or thereunder or pursuant to satisfaction in full of all the Obligations, ceases to be in
full force and effect; or any Loan Party or any other Person contests in writing the validity or
enforceability of any material provision of any Loan Document; or any Loan Party denies in writing
that it has any or further liability or obligation under any Loan Document, or purports in writing
to revoke, terminate or rescind any provision of any Loan Document; or

(k) Change of Control. There occurs any Change of Control; or

 

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(l) Collateral Documents. Any Collateral Document after delivery thereof pursuant to
Section 4.01, 6.13, 6.14 or 6.15 shall for any reason (other than
pursuant to the terms thereof or the terms of Section 2.16) cease to create a valid and,
except in the case of Collateral for which perfection cannot be accomplished by filing a Financing
Statement or delivery of a stock certificate, perfected Lien (subject to Liens permitted by
Section 7.01) on any Collateral purported to be covered thereby having a fair market value
in excess of $5,000,000; or

(m) Subordination and Intercreditor Provisions. The subordination or intercreditor
provisions referred to in Sections 7.01(q) and 7.01(r) (the “Intercreditor
Provisions”) shall, in whole or in part, terminate, cease to be effective or cease to be
legally valid, binding and enforceable against any holder of the applicable Indebtedness in the
principal amount in excess of the Threshold Amount for a period in excess of 30 calendar days; or
(ii) any Loan Party shall, directly or indirectly, disavow or contest in writing (A) the
effectiveness, validity or enforceability of any of the Intercreditor Provisions, (B) that the
Intercreditor Provisions exist for the benefit of the Administrative Agent, the Lenders and the L/C
Issuer or (C) that all payments of principal of or premium and interest on the applicable
Indebtedness, or
realized from the liquidation of property of the Persons the subject of the Intercreditor
Provisions, shall be subject to any of the Intercreditor Provisions.

8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

(a) declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer
to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be
terminated;

(b) declare the unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby expressly waived by the Borrowers;

(c) require that the Borrowers Cash Collateralize their respective L/C Obligations (in an
amount equal to the then Outstanding Amount thereof); and

(d) exercise on behalf of itself, the Lenders and the L/C Issuer all rights and remedies
available to it, the Lenders and the L/C Issuer under the Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to any Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit
Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and
all interest and other amounts as aforesaid shall automatically become due and payable, and the
obligation of the Borrowers to Cash Collateralize their respective L/C Obligations as aforesaid
shall automatically become effective, in each case without further act of the Administrative Agent
or any Lender.

 

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8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the proviso
to Section 8.02), any amounts received on account of the Obligations shall, subject to the
provisions of Sections 2.13, 2.17 and 2.18, be applied by the
Administrative Agent in the following order:

First, to payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of counsel to the
Administrative Agent and amounts payable under Article III) payable to the Administrative
Agent in its capacity as such;

Second, to payment of that portion of the Obligations constituting fees, indemnities
and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders
and the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders
and the L/C Issuer (including fees and time charges for attorneys who may be employees of any
Lender or the L/C Issuer) and amounts payable under Article III), ratably
among them in proportion to the respective amounts described in this clause Second
payable to them;

Third, to payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably
among the Lenders and the L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

Fourth, to payment of that portion of the Obligations constituting unpaid principal of
the Loans, L/C Borrowings, to Obligations then owing under Secured Hedge Agreements and Secured
Cash Management Agreements and to the Administrative Agent for the account of the L/C Issuer, to
Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of
Letters of Credit, ratably among the Administrative Agent, the Lenders, the L/C Issuer, the Hedge
Banks and the Cash Management Banks in proportion to the respective amounts described in this
clause Fourth held by them;

Last, the balance, if any, after all of the Obligations have been paid in full, to the
Borrowers or as otherwise required by Law.

Subject to Sections 2.03(c) and 2.17, amounts used to Cash Collateralize the
aggregate undrawn amount of Letters of Credit pursuant to clause Fourth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on
deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the order set forth
above.

Notwithstanding the foregoing, Obligations arising under Secured Cash Management Agreements
and Secured Hedge Agreements shall be excluded from the application described above if the
Administrative Agent has not received written notice thereof, together with such supporting
documentation as the Administrative Agent may reasonably request, from the applicable Cash
Management Bank or Hedge Bank, as the case may be. Each Cash Management Bank or Hedge Bank not a
party to the Credit Agreement that has given the notice contemplated by the preceding sentence
shall, by such notice, be deemed to have acknowledged and accepted the appointment of the
Administrative Agent pursuant to the terms of Article IX hereof for itself and its
Affiliates as if a “Lender” party hereto.

 

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ARTICLE IX.

ADMINISTRATIVE AGENT

9.01 Appointment and Authority.

(a) Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act
on its behalf as the Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers
as are delegated to the Administrative Agent by the terms hereof or thereof, together with such
actions and powers as are reasonably incidental thereto. The provisions of this Article are solely
for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and no Borrower shall
have rights as a third party beneficiary of any of such provisions.

(b) The Administrative Agent shall also act as the “collateral agent” under the Loan
Documents, and each of the Lenders (including in its capacities as a potential Hedge Bank and a
potential Cash Management Bank) and the L/C Issuer hereby irrevocably appoints and authorizes the
Administrative Agent to act as the agent of such Lender and the L/C Issuer for purposes of
acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties
to secure any of the Obligations, together with such powers and discretion as are reasonably
incidental thereto. In this connection, the Administrative Agent, as “collateral agent” and any
co-agents, sub-agents and attorneys-in-fact appointed by the Administrative Agent pursuant to
Section 9.05 for purposes of holding or enforcing any Lien on the Collateral (or any
portion thereof) granted under the Collateral Documents, or for exercising any rights and remedies
thereunder at the direction of the Administrative Agent), shall be entitled to the benefits of all
provisions of this Article IX and Article XI (including Section 11.04(c),
as though such co-agents, sub-agents and attorneys-in-fact were the “collateral agent” under the
Loan Documents) as if set forth in full herein with respect thereto.

9.02 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 Borrowers 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.

9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

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

 

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(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
any of the Borrowers or any of their respective 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 10.01 and 8.02) 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 Default unless and until notice describing such Default is
given to the Administrative Agent by a Borrower, a Lender or the L/C Issuer.

The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the
value or the sufficiency of any Collateral or (vi) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Administrative Agent.

9.04 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) reasonably 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 L/C
Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or
the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such
Lender or the L/C Issuer 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 Borrowers),
independent accountants and other experts reasonably selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

 

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

9.06 Resignation of Administrative Agent. The Administrative Agent may at any time give
notice of its resignation to the Lenders, the L/C Issuer and the Borrowers. Upon receipt of any
such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrowers, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrowers and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (1) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any Collateral
held by the Administrative Agent on behalf of the Lenders or the L/C Issuer under any of the Loan
Documents, the retiring Administrative Agent shall continue to hold such Collateral until such time
as a successor Administrative Agent is appointed) and (2) all payments, communications and
determinations provided to be made by, to or through the Administrative Agent shall instead be made
by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a
successor Administrative Agent as provided for above in this Section. 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 Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrowers and such successor. After the retiring Administrative Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Article and Section
10.04 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.

 

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

9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer
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 L/C Issuer 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.

9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the
Bookrunners, Arrangers, Documentation Agents or Syndication Agents 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 L/C
Issuer hereunder.

9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall
then be due and payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Borrower) shall be entitled and
empowered, by intervention in such proceeding or otherwise

(a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, L/C Obligations and all other Obligations (other than Obligations
under Secured Hedge Agreements and Secured Cash Management Agreements) that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and their respective agents and counsel and all other amounts due the Lenders,
the L/C Issuer and the Administrative Agent under Sections 2.03(h) and (i),
2.09 and 10.04) allowed in such judicial proceeding; and

 

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

and any custodian, receiver, assignee, trustee, provisional liquidator, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Lender and the
L/C Issuer to make such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to the Lenders and the
L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and
any other amounts due the Administrative Agent under Sections 2.09 and 10.04.

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

9.10 Collateral and Guaranty Matters. Each of the Lenders (including in its capacities as a
potential Cash Management Bank and a potential Hedge Bank) and the L/C Issuer irrevocably authorize
the Administrative Agent, at its option and in its discretion,

(a) to release any Lien on any property granted to or held by the Administrative Agent under
any Loan Document (i) upon termination of the Aggregate Commitments and payment in full of all
Obligations (other than (A) contingent indemnification obligations and (B) obligations and
liabilities under Secured Cash Management Agreements and Secured Hedge Agreements as to which
arrangements satisfactory to the applicable Cash Management Bank of Hedge Bank shall have been
made) and the expiration or termination of all Letters of Credit (other than Letters of Credit as
to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have
been made), (ii) that is either sold or to be sold as part of or in connection with any sale, or
otherwise transferred (pursuant to an Investment or otherwise), in either event pursuant to a
transaction permitted hereunder or under any other Loan Document, (iii) subject to Section
10.01, if approved, authorized or ratified in writing by the Required Lenders or (iv) in
accordance with Section 2.16;

(b) to subordinate any Lien on any property granted to or held by the Administrative Agent
under any Loan Document to the holder of any Lien on such property that is permitted by Section
7.01(h) or 7.01(k); and

(c) to release any Guarantor from its obligations under its Guaranty if (1) such Person ceases
to be a Material Subsidiary as a result of a transaction permitted hereunder or (2) in the case of
a Foreign Subsidiary that is a Guarantor hereunder, the Administrative Agent (after consultation
with the Borrowers) determines that it would not be commercially reasonable for such Guarantor to
remain a Guarantor (taking into account the expense (including taxes), the ability of Borrowers or
such Guarantor to obtain any necessary approvals or consents required to be obtained under
applicable law (but have not been previously obtained) in connection therewith, and the
effectiveness and enforceability thereof under applicable law) or (3) the Guaranties provided by
such Guarantor becomes illegal under applicable law and such Guarantor delivers to the
Administrative Agent a legal opinion from its counsel to such effect, and no reasonable alternative
structure can be devised having substantially the same effect as the issuance of a Guarantee that
would not be illegal under applicable law.

 

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Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in particular
types or items of property, or to release any Guarantor from its obligations under the Guaranty
pursuant to this Section 9.10.

9.11 Secured Cash Management Agreements and Secured Hedge Agreements. No Cash Management Bank
or Hedge Bank that obtains the benefits of Section 8.03, any Guaranty or any Collateral by
virtue of the provisions hereof or of any Guaranty or any Collateral Document shall have any right
to notice of any action or to consent to, direct or object to any action hereunder or under any
other Loan Document or otherwise in respect of the Collateral (including the release or impairment
of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent
expressly provided in the Loan Documents. Notwithstanding any other provision of this Article
IX to the contrary, the Administrative Agent
shall not be required to verify the payment of, or that other satisfactory arrangements have
been made with respect to, Obligations arising under Secured Cash Management Agreements and Secured
Hedge Agreements unless the Administrative Agent has received written notice of such Obligations,
together with such supporting documentation as the Administrative Agent may reasonably request,
from the applicable Cash Management Bank or Hedge Bank, as the case may be.

ARTICLE X.

MISCELLANEOUS

10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by any Loan Party therefrom, shall be effective
unless in writing signed by the Required Lenders and the applicable Loan Party, as the case may be,
and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall:

(a) waive any condition set forth in Section 4.01(a) without the written consent of
each Lender;

(b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated
pursuant to Section 8.02) without the written consent of such Lender;

(c) postpone any date fixed by this Agreement or any other Loan Document for any payment of
principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under
any other Loan Document without the written consent of each Lender directly affected thereby;

 

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(d) reduce the principal of, or the rate of interest specified herein on, any Loan or L/C
Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees
or other amounts payable hereunder or under any other Loan Document; provided,
however, that only the consent of the Required Lenders shall be necessary (i) to amend the
definition of “Default Rate” or to waive any obligation of any Borrower to pay interest or Letter
of Credit Fees at the Default Rate or (ii) to amend any financial covenant hereunder (or any
defined term used therein) even if the effect of such amendment would be to reduce the rate of
interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

(e) change Section 8.03 in a manner that would alter the pro rata sharing of payments
required thereby without the written consent of each Lender;

(f) amend Section 1.06 or the definition of “Alternative Currency” without the written
consent of each Lender;

(g) change any provision of this Section or the definition of “Required Lenders” or any other
provision hereof specifying the number or percentage of Lenders required to amend, waive or
otherwise modify any rights hereunder or make any determination or grant any consent hereunder
without the written consent of each Lender;

(h) release all or substantially all of the Collateral in any transaction or series of related
transactions, without the written consent of each Lender; or

(i) release any Borrower from any Guaranty or all or substantially all of the value of the
Guaranties without the written consent of each Lender, except to the extent the release of any
Guarantor is permitted pursuant to Section 9.10 (in which case such release may be made by
the Administrative Agent acting alone);

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing
and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or
duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall,
unless in writing and signed by the Administrative Agent in addition to the Lenders required above,
affect the rights or duties of the Administrative Agent under this Agreement or any other Loan
Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a
writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder (and any amendment, waiver or consent which by its terms requires the consent of all
Lenders or each affected Lender may be effected with the consent of the applicable Lenders other
than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be
increased or extended, and the stated maturity date of any Loan made by any Defaulting Lender may
not be extended, without the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender that by its terms affects any
Defaulting Lender more adversely than other affected Lenders shall require the consent of such
Defaulting Lender.

 

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If any Lender does not consent to a proposed amendment, waiver, consent or release with respect to
any Loan Document that requires the consent of each Lender and that has been approved by the
Required Lenders, the Borrowers may replace such non-consenting Lender in accordance with
Section 10.13.

10.02 Notices; Effectiveness; Electronic Communication. (a) Notices Generally.
Except in the case of notices and other communications expressly permitted to be given by telephone
(and except as provided in subsection (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopier or electronic mail as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone shall be made to
the applicable telephone number, as follows:

(i) if to a Borrower, the Administrative Agent, the L/C Issuer or the Swing
Line Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 10.02 (provided that
any notice delivered to the Company shall be deemed to have been delivered to each
Borrower); and

(ii) if to any other Lender, to the address, telecopier number, electronic mail
address or telephone number specified in its Administrative Questionnaire.

Notices and other communications sent by hand or overnight courier service, or mailed by certified
or registered mail, shall be deemed to have been given when received; notices and other
communications 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 and other communications
delivered through electronic communications to the extent provided in subsection (b) below, shall
be effective as provided in such subsection (b).

(b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer 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 L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified
the Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or any Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

Unless 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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(c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to any Borrower, any
Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of
any kind (whether in tort, contract or otherwise) arising out of any Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet, except to
the extent that such losses, claims, damages, liabilities or expenses are determined by a
court of competent jurisdiction by a final and nonappealable judgment to have resulted from the
gross negligence or willful misconduct of such Agent Party; provided, however, that
in no event shall any Agent Party have any liability to any Borrower, any Lender, the L/C Issuer or
any other Person for indirect, special, incidental, consequential or punitive damages (as opposed
to direct or actual damages).

(d) Change of Address, Etc. Each of the Borrowers, the Administrative Agent, the L/C
Issuer and the Swing Line Lender may change its address, telecopier or telephone number for notices
and other communications hereunder by notice to the other parties hereto. Each other Lender may
change its address, telecopier or telephone number for notices and other communications hereunder
by notice to the Borrowers, the Administrative Agent, the L/C Issuer and the Swing Line Lender. In
addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that
the Administrative Agent has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other communications may be sent
and (ii) accurate wire instructions for such Lender. Furthermore, each Public Lender agrees to
cause at least one individual at or on behalf of such Public Lender to at all times have selected
the “Private Side Information” or similar designation on the content declaration screen of the
Platform in order to enable such Public Lender or its delegate, in accordance with such Public
Lender’s compliance procedures and applicable Law, including United States Federal and state
securities Laws, to make reference to Borrower Materials that are not made available through the
“Public Side Information” portion of the Platform and that may contain material non-public
information with respect to any Borrower or its securities for purposes of United States Federal or
state securities Laws.

 

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(e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Committed Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of
any Borrower even if (i) such notices were not made in a manner specified herein, were incomplete
or were not preceded or followed by any other form of notice specified herein, or (ii) the terms
thereof, as understood by the recipient, varied from any confirmation thereof. The Borrowers shall
indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of
them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on
each notice purportedly given by or on behalf of any Borrower. All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

10.03 No Waiver; Cumulative Remedies; Enforcement. No failure by any Lender or the
Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy,
power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof;
nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided and provided under each
other Loan Document are cumulative and not exclusive of any rights, remedies, powers and privileges
provided by Law.

Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law
in connection with such enforcement shall be instituted and maintained exclusively by, the
Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and
the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the
Administrative Agent from exercising on its own behalf the rights and remedies that inure to its
benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan
Documents, (b) the L/C Issuer or the Swing Line Lender from exercising the rights and remedies that
inure to its benefit (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may
be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in
accordance with Section 10.08 (subject to the terms of Section 2.13), or (d) any
Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the
pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and
provided, further, that if at any time there is no Person acting as Administrative
Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the
rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in
addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject
to Section 2.13, any Lender may, with the consent of the Required Lenders, enforce any
rights and remedies available to it and as authorized by the Required Lenders.

 

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10.04 Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses. The Borrowers
shall pay (i) all reasonable and documented 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 and documented out of pocket expenses incurred by the L/C Issuer in connection with
the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment
thereunder and (iii) all reasonable and documented out of pocket expenses incurred by the
Administrative Agent, any Lender or the L/C Issuer (including the fees, charges and disbursements
of any counsel for the Administrative Agent, any Lender or the L/C Issuer), and shall pay all fees
and time charges for attorneys who may be employees of the Administrative Agent, any Lender or the
L/C Issuer, in connection with the enforcement or protection of its rights (A) in connection with
this Agreement and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made or Letters of Credit issued hereunder, including all such out of
pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans
or Letters of Credit.

(b) Indemnification by the Borrowers. The Borrowers shall, jointly and severally,
indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the L/C Issuer, 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
any Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan Documents (including in
respect of any matters addressed in Section 3.01), (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand
for payment under a Letter of Credit if the documents presented in connection with such demand do
not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence
or release of Hazardous Materials on or from any property owned or operated by any Borrower or any
of its Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of
its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by any Loan Party, 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 any Loan
Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, if such Loan Party has obtained a final and nonappealable judgment
in its favor on such claim as determined by a court of competent jurisdiction.

 

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(c) Reimbursement by Lenders. To the extent that the Borrowers for any reason fail to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it
to the Administrative Agent (or any sub-agent thereof), the L/C Issuer 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 L/C Issuer or such Related Party, as the case may be, such Lender’s Applicable
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment
is sought) of such unpaid amount, 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 L/C Issuer 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 L/C Issuer in connection with such capacity. The obligations of the Lenders
under this subsection (c) are subject to the provisions of Section 2.12(d).

(d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Law, no Borrower shall 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 subsection (b) above shall be liable for any damages arising from
the use by unintended recipients of any information or other materials distributed to such
unintended recipients by such Indemnitee 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 other than for direct or actual damages resulting
from the gross negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

(e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

(f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the L/C Issuer and the Swing Line Lender, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the
other Obligations.

10.05 Payments Set Aside. To the extent that any payment by or on behalf of any Borrower is
made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative Agent, the
L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds of such
setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required (including pursuant to any settlement entered into by the Administrative
Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a)
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or
such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the applicable Overnight Rate
from time to time in effect, in the applicable currency of such recovery or payment. The
obligations of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall
survive the payment in full of the Obligations and the termination of this Agreement.

 

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10.06 Successors and Assigns. (a) Successors and Assigns Generally. The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that no Borrower may assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of the
Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an assignee in accordance with the provisions of
subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest
subject to the restrictions of subsection (g) of this Section (and any other attempted assignment
or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

(b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations and in Swing Line 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 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 subsection (b)(i)(A) of this Section,
the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) or, if the Commitment is not then in effect,
the principal outstanding balance of the Loans of the assigning Lender
subject to each such assignment, determined as of the date the Assignment
and Assumption with respect to such assignment is delivered to the
Administrative Agent or, if “Trade Date” is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000 unless
each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrowers otherwise consent (each such
consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group
and concurrent assignments from members of an Assignee Group to a single
Eligible Assignee (or to an Eligible Assignee and members of its Assignee
Group) will be treated as a single assignment for purposes of determining
whether such minimum amount has been met.

 

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(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 Loans or the Commitment
assigned, except that this clause (ii) shall not apply to the Swing Line Lender’s
rights and obligations in respect of Swing Line Loans;

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

(A) the consent of Holdings (such consent not to be unreasonably
withheld or delayed) shall be required unless (1) an Event of Default has
occurred and is continuing at the time of such assignment or
(2) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund;

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

(C) the consent of the L/C Issuer (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); and

(D) the consent of the Swing Line Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment.

(iv) Assignment and Assumption. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee in the amount of $3,500;
provided, however, that the Administrative Agent may, in its sole
discretion, elect to waive such processing and recordation fee in the case of any
assignment. The assignee, if it is not a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

(v) No Assignment to Borrowers. No Assignment to Certain
Persons. No such assignment shall be made (A) to any Borrower or any of the
Borrowers’ respective Affiliates or Subsidiaries, or (B) to any Defaulting Lender or
any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would
constitute any of the foregoing Persons described in this clause (A), or (B) to a
natural person.

 

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(vi) Certain Additional Payments. In connection with any assignment of
rights and obligations of any Defaulting Lender hereunder, no such assignment shall
be effective unless and until, in addition to the other conditions thereto set forth
herein, the parties to the assignment shall make such additional payments to the
Administrative Agent in an aggregate amount sufficient, upon distribution thereof as
appropriate (which may be outright payment, purchases by the assignee of
participations or subparticipations, or other compensating actions, including
funding, with the consent of the Borrowers and the Administrative Agent, the
applicable pro rata share of Loans previously requested but not funded by the
Defaulting Lender, to each of which the applicable assignee and assignor hereby
irrevocably consent), to (x) pay and satisfy in full all payment liabilities then
owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder
(and interest accrued thereon) and (y) acquire (and fund as appropriate) its full
pro rata share of all Loans and participations in Letters of Credit and Swing Line
Loans in accordance with its Applicable Percentage.
Notwithstanding the foregoing, in the event that any assignment of rights and
obligations of any Defaulting Lender hereunder shall become effective under
applicable Law without compliance with the provisions of this paragraph, then the
assignee of such interest shall be deemed to be a Defaulting Lender for all purposes
of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)
of this Section, from and after the effective date specified in each Assignment and Assumption, the
assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned
by such Assignment and Assumption, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations
under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be
entitled to the benefits of Sections 3.01, 3.04, 3.05, and 10.04
with respect to facts and circumstances occurring prior to the effective date of such assignment.
Upon request, each Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that
does not comply with this subsection 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 subsection (d) of
this Section.

(c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrowers, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrowers, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. In
addition, the Administrative Agent shall maintain on the Register information regarding the
designation, and revocation of designation, of any Lender as a Defaulting Lender. The Register
shall be available for inspection by the Borrowers and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.

 

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(d) Participations. Any Lender may at any time, without the consent of, or notice to,
any Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person, Defaulting Lender or a Borrower or any of the Borrowers’ 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 (including such Lender’s
participations in L/C Obligations and/or Swing Line 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 Borrowers, the Administrative Agent, the Lenders and the L/C Issuer 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, waiver or other modification described in the first proviso to
Section 10.01 that affects such Participant. Subject to subsection (e) of this Section,
each Borrower agrees that each Participant shall be entitled to the benefits of Sections
3.01, 3.04 and 3.05 to the same extent as if it were a Lender and had acquired
its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.08 as though it
were a Lender, provided such Participant agrees to be subject to Section 2.13 as
though it were a Lender.

(e) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 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 Borrowers’ 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 3.01 unless the Borrowers are notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with
Section 3.01(e) as though it were a Lender. 

(f) Participant Register. Each Lender that sells a participation in a Loan, acting as
an agent of the applicable Borrower solely for purposes of applicable United States federal income
tax law and Treasury regulations promulgated thereunder, shall maintain a “book entry” register (as
further described in the foregoing Treasury regulations) on which it records the name and address
of the applicable Participant and the principal amounts of such Participant’s interest in the Loans
and Commitments (each such register, a “Participant Register”). The entries in the Participant
Register shall be conclusive absent manifest error, and the applicable Lender, Borrower and the
Administrative Agent shall treat each Person whose name is recorded in the Participant Register
pursuant to the terms hereof as having “ownership of an interest” (as such term is defined the
applicable Treasury regulations) in such Loans for all purposes of this Agreement, notwithstanding
any notice to the contrary. Upon request by a Borrower, such Lender shall make the Participant
Register available to the Borrower.

 

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(g) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note(s), if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank or any central 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.

(h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its
Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’
notice to the Borrowers and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to
the Borrowers, resign as Swing Line Lender. In the event of any such resignation as L/C Issuer or
Swing Line Lender, the Borrowers shall be entitled to appoint from
among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided,
however, that no failure by the Borrowers to appoint any such successor shall affect the
resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of
America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the
L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of
its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Committed Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it
shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing
Line Loans made by it and outstanding as of the effective date of such resignation, including the
right to require the Lenders to make Base Rate Committed Loans or fund risk participations in
outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a
successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing
Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.

10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent,
the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the National Association of
Insurance Commissioners) or in connection with any pledge or assignment permitted under Section
10.07(g), (c) to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any
remedies hereunder or under any 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, (f)
subject to an agreement containing provisions substantially the same as those of this Section, to
(i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to a Borrower and its obligations, (g)
with the consent of the Borrowers or (h) to the extent such Information (x) was or becomes publicly
available other than as a result of a breach of this Section by such Lender, (y) was or becomes
available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrowers or (z) was
independently developed by the Administrative Agent, such Lender or the L/C Issuer.

 

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For purposes of this Section, “Information” means all information received from the
Borrowers or any Subsidiary relating to the Borrowers or any Subsidiary or any of their respective
businesses, other than any such information that is available to the Administrative Agent, any
Lender or the L/C Issuer on a nonconfidential basis prior to disclosure by the
Borrowers or any Subsidiary. 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.

Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the
Information may include material non-public information concerning the Borrowers or a Subsidiary
thereof, as the case may be and (b) it has developed compliance procedures regarding the use of
material non-public information.

10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by applicable Law, to set off and apply any and
all deposits (general or special, time or demand, provisional or final, in whatever currency) at
any time held and other obligations (in whatever currency) at any time owing by such Lender, the
L/C Issuer or any such Affiliate to or for the credit or the account of any Borrower against any
and all of the obligations of such Borrower now or hereafter existing under this Agreement or any
other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such Lender or
the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and
although such obligations of such Borrower may be contingent or unmatured or are owed to a branch
or office of such Lender or the L/C Issuer different from the branch or office holding such deposit
or obligated on such indebtedness; provided, that in the event that any Defaulting Lender
shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately
to the Administrative Agent for further application in accordance with the provisions of
Section 2.18 and, pending such payment, shall be segregated by such Defaulting Lender from
its other funds and deemed held in trust for the benefit of the Administrative Agent and the
Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a
statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to
which it exercised such right of setoff. The rights of each Lender, the L/C Issuer and their
respective Affiliates under this Section are in addition to other rights and remedies (including
other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.
Each Lender and the L/C Issuer agrees to notify the Borrowers 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.

 

116

 

10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the applicable Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum
Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that
is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

10.10 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 constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
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 other electronic imaging
means shall be effective as delivery of a manually executed counterpart of this Agreement.

10.11 Survival of Representations and Warranties. All representations and warranties made
hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or
in connection herewith or therewith shall survive the execution and delivery hereof and thereof.
Such representations and warranties have been or will be relied upon by the Administrative Agent
and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or
on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice
or knowledge of any Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.

 

117

 

10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to
be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. Without limiting the foregoing provisions of this
Section 10.12, if and to the extent that the enforceability of any provisions in this
Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in
good faith by the Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable,
then such provisions shall be deemed to be in effect only to the extent not so limited.

10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04,
or if any Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, if any Lender is a
Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in, and consents required by,
Section 10.06), all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment), provided that:

(a) the Borrowers shall have paid (or caused a Designated Borrower to pay) to the
Administrative Agent the assignment fee specified in Section 10.06(b);

(b) such Lender shall have received payment of an amount equal to the outstanding principal of
its Loans and L/C 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 3.05)
from the assignee (to the extent of such outstanding principal and accrued interest and fees) or
the applicable Borrower (in the case of all other amounts);

(c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

(d) such assignment does not conflict with applicable Laws.

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 Borrowers to
require such assignment and delegation cease to apply.

10.14 Governing Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICT OF LAWS PRINCIPLES THEREOF.

 

118

 

(b) SUBMISSION TO JURISDICTION. EACH 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. 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, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR
ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

(c) WAIVER OF VENUE. EACH 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 PARAGRAPH (B) OF THIS SECTION. 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.

(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

10.15 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.

 

119

 

10.16 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby (including in connection with any amendment, waiver or other
modification hereof or of any other Loan Document), each Borrower acknowledges and agrees, and
acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services
regarding this Agreement provided by the Administrative Agent and the Arrangers are arm’s-length
commercial transactions between such Borrower and its Affiliates, on the one hand, and the
Administrative Agent and the Arrangers, on the other hand, (B) such Borrower has consulted its own
legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C)
such Borrower is capable of evaluating, and understands and accepts, the terms, risks and
conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the
Administrative Agent and each Arranger each is and has been acting solely as a principal and,
except as expressly agreed in writing by the relevant parties, has not been, is not, and will not
be acting as an advisor, agent or fiduciary for such Borrower or any of its Affiliates, or any
other Person and (B) neither the Administrative Agent nor any Arranger has any obligation to such
Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan
Documents; and (iii) the Administrative Agent, the Arrangers and their respective Affiliates
may be engaged in a broad range of transactions that involve interests that differ from those of
such Borrower and its Affiliates, and neither the Administrative Agent nor any Arranger has any
obligation to disclose any of such interests to any Borrower or its Affiliates. To the fullest
extent permitted by law, each of the Borrowers hereby waives and releases any claims that it may
have against the Administrative Agent and the Arrangers with respect to any breach or alleged
breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated
hereby.

10.17 Electronic Execution of Assignments and Certain Other Documents. The words “execution,”
“signed,” “signature,” and words of like import in any Assignment and Assumption or in any
amendment or other modification hereof (including waivers and consents) shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

10.18 USA PATRIOT Act. Each Lender that is subject to the Act (as hereinafter defined) and
the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrowers
that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information
that identifies the Borrowers, which information includes the name and address of each Borrower and
other information that will allow such Lender or the Administrative Agent, as applicable, to
identify such Borrower in accordance with the Act. Each Borrower shall, promptly following a
request by the Administrative Agent or any Lender, provide all documentation and other information
that the Administrative Agent or such Lender requests in order to comply with its ongoing
obligations under applicable “know your customer” and anti-money laundering rules and regulations,
including the Act.

 

120

 

10.19 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such other currency on
the Business Day preceding that on which final judgment is given. The obligation of each Borrower
in respect of any such sum due from it to the Administrative Agent or any Lender hereunder or under
the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Agreement (the “Agreement Currency”), be discharged only to the extent
that on the Business Day following receipt by the Administrative Agent or such Lender, as the case
may be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such
Lender, as the case may be, may in accordance with normal banking procedures purchase the Agreement
Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less
than the sum originally due to the Administrative Agent or any Lender from any Borrower in the
Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Administrative Agent or such Lender, as the case may be, against
such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally
due to the Administrative Agent or any Lender in such currency, the Administrative Agent or such
Lender, as the case may be, agrees to return the amount of any excess to such Borrower (or to any
other Person who may be entitled thereto under applicable law).

 

121

 

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

	 	 	 	 	 	 	 	 	 
	 	 	HERBALIFE LTD., a Cayman Islands exempted company incorporated
with limited liability, as Holdings	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL, INC., a Nevada corporation, as the Company	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L., a Luxembourg private
limited liability company, as a Borrower	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

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

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	[OTHER LENDERS]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

 

 

CREDIT AGREEMENT SCHEDULES

Schedule E-1 — Excluded Domestic Subsidiaries and Excluded Foreign Subsidiaries

Schedule G-1 — Initial Guarantors

Schedule 1.01 — Mandatory Cost Formulae

Schedule 2.01 — Commitments and Applicable Percentages

Schedule 5.03 — Authorizations and Consents

Schedule 5.06 — Litigation

Schedule 5.11 — Taxes

Schedule 5.13 — Subsidiaries; Other Equity Investments

Schedule 5.17 — Identification Numbers for Foreign Borrowers

Schedule 7.01 — Existing Liens

Schedule 7.03 — Existing Indebtedness

Schedule 10.02 — Administrative Agent’s Office; Certain Addresses for Notices

 

 

 

Schedule E-1 — Excluded Domestic Subsidiaries and Excluded Foreign Subsidiaries

	1.	 	Herbalife (China) Health Products Ltd.

	 
	2.	 	Herbalife Dominicana, S.A.

	 
	3.	 	Herbalife Del Ecuador, S.A.

	 
	4.	 	Herbalife Products Malaysia SDN BHD

	 
	5.	 	Herbalife International Products N.V.

	 
	6.	 	Herbalife Natural Products, LP

	 
	7.	 	Herbalife Asia Pacific Services Limited

	 
	8.	 	Herbalife NatSource (Hunan) Natural Products Co., Ltd.

	 
	9.	 	Herbalife International India Private Limited

	 
	10.	 	HIIP Investment Co., LLC

	 
	11.	 	Herbalife Internacional de Mexico, S.A. de C.V.

	 
	12.	 	Herbalife Mexicana, S.A. de C.V.

	 
	13.	 	Herbalife Products De Mexico, S.A. de C.V.

	 
	14.	 	Herbavida International de Mexico, S.A. de C.V.

	 
	15.	 	Servicios Integrales HIM, S.A. de C.V.

	 
	16.	 	HIL Swiss International GmbH

	 
	17.	 	HBL Products, SA

	 
	18.	 	PT Herbalife Indonesia

	 
	19.	 	Herbalife International Philippines, Inc.

	 
	20.	 	Vida Herbal Suplementos Alimenticios, C.A.

 

 

 

Schedule G-1 — Initial Guarantors

	1.	 	Herbalife International of America, Inc., a Nevada corporation.

	 
	2.	 	Herbalife International Communications, Inc., a California corporation.

	 
	3.	 	Herbalife International Do Brasil Ltda, a corporation dually organized in Brazil and
Delaware.

	 
	4.	 	Herbalife Korea Co., Ltd., a corporation dually organized in the Republic of Korea and
Delaware.

	 
	5.	 	Herbalife Taiwan, Inc., a California corporation.

	 
	6.	 	WH Intermediate Holdings Ltd., a Cayman Islands exempted company with limited liability.

	 
	7.	 	WH Luxembourg Holdings S.à.R.L., a Luxembourg private limited liability company.

 

 

 

Schedule 1.01 — Mandatory Cost Formulae

	1.	 	The Mandatory Cost (to the extent applicable) is an addition to the interest rate to
compensate Lenders for the cost of compliance with:

(a) the requirements of the Bank of England and/or the Financial Services Authority (or, in
either case, any other authority which replaces all or any of its functions); or

(b) the requirements of the European Central Bank.

	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the
Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost
Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory
Cost will be calculated by the Administrative Agent as a weighted average of the Lenders’
Additional Cost Rates (weighted in proportion to the percentage participation of each Lender
in the relevant Loan) and will be expressed as a percentage rate per annum. The
Administrative Agent will, at the request of any Borrower or any Lender, deliver to such
Borrower or such Lender, as the case may be, a statement setting forth the calculation of any
Mandatory Cost.

	3.	 	The Additional Cost Rate for any Lender lending from a Lending Office in a Participating
Member State will be the percentage notified by that Lender to the Administrative Agent. This
percentage will be certified by such Lender in its notice to the Administrative Agent to be
its reasonable determination of the cost (expressed as a percentage of such Lender’s
participation in all Loans made from such Lending Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of Loans made from that Lending
Office.

	4.	 	The Additional Cost Rate for any Lender lending from a Lending Office in the United Kingdom
will be calculated by the Administrative Agent as follows:

(a) in relation to any Loan in Sterling:

	 	 	 
	AB+C(B-D)+E x

0.01
 

100 — (A+C)

	 	

per cent per

annum

(b) in relation to any Loan in any currency other than Sterling:

	 	 	 
	E x 0.01
 

300

	 	per cent per

annum

 

 

 

Where:

“A” is the percentage of Eligible Liabilities (assuming these to be in excess of any stated
minimum) which that Lender is from time to time required to maintain as an
interest free cash ratio deposit with the Bank of England to comply with cash ratio
requirements.

“B” is the percentage rate of interest (excluding the Applicable Rate, the Mandatory Cost
and any interest charged on overdue amounts pursuant to the first sentence of Section
2.08(b) and, in the case of interest (other than on overdue amounts) charged at the
Default Rate, without counting any increase in interest rate effected by the charging of the
Default Rate) payable for the relevant Interest Period of such Loan.

“C” is the percentage (if any) of Eligible Liabilities which that Lender is required from
time to time to maintain as interest bearing Special Deposits with the Bank of England.

“D” is the percentage rate per annum payable by the Bank of England to the Administrative
Agent on interest bearing Special Deposits.

“E” is designed to compensate Lenders for amounts payable under the Fees Rules and is
calculated by the Administrative Agent as being the average of the most recent rates of
charge supplied by the Lenders to the Administrative Agent pursuant to paragraph 7
below and expressed in pounds per £1,000,000.

	5.	 	For the purposes of this Schedule:

(a) “Eligible Liabilities” and “Special Deposits” have the meanings given to
them from time to time under or pursuant to the Bank of England Act 1998 or (as may be
appropriate) by the Bank of England;

(b) “Fees Rules” means the rules on periodic fees contained in the FSA Supervision
Manual or such other law or regulation as may be in force from time to time in respect of
the payment of fees for the acceptance of deposits;

(c) “Fee Tariffs” means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate); and

(d) “Sterling” and “£” mean the lawful currency of the United Kingdom.

(e) “Tariff Base” has the meaning given to it in, and will be calculated in
accordance with, the Fees Rules.

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as
percentages (i.e. 5% will be included in the formula as 5 and not as 0.05). A negative result
obtained by subtracting D from B shall be taken as zero. The resulting figures shall be
rounded to four decimal places.

	7.	 	If requested by the Administrative Agent or any Borrower, each Lender with a Lending Office
in the United Kingdom or a Participating Member State shall, as soon as practicable after
publication by the Financial Services Authority, supply to the Administrative Agent and
Borrowers, the rate of charge payable by such Lender to the Financial Services Authority
pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services
Authority (calculated for this purpose by such Lender as being the average of the Fee Tariffs
applicable to such Lender for that financial year) and expressed in pounds per £1,000,000 of
the Tariff Base of such Lender.

 

 

 

	8.	 	Each Lender shall supply any information required by the Administrative Agent for the purpose
of calculating its Additional Cost Rate. In particular, but without limitation, each Lender
shall supply the following information in writing on or prior to the date on which it becomes
a Lender:

(a) the jurisdiction of the Lending Office out of which it is making available its
participation in the relevant Loan; and

(b) any other information that the Administrative Agent may reasonably require for such
purpose.

Each Lender shall promptly notify the Administrative Agent in writing of any change to the
information provided by it pursuant to this paragraph.

	9.	 	The percentages of each Lender for the purpose of A and C above and the rates of charge of
each Lender for the purpose of E above shall be determined by the Administrative Agent based
upon the information supplied to it pursuant to paragraphs 7 and 8 above and
on the assumption that, unless a Lender notifies the Administrative Agent to the contrary,
each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same
as those of a typical bank from its jurisdiction of incorporation with a lending office in the
same jurisdiction as its Lending Office.

	10.	 	The Administrative Agent shall have no liability to any Person if such determination results
in an Additional Cost Rate which over- or under-compensates any Lender and shall be entitled
to assume that the information provided by any Lender pursuant to paragraphs 3,
7 and 8 above is true and correct in all respects.

	11.	 	The Administrative Agent shall distribute the additional amounts received as a result of the
Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based
on the information provided by each Lender pursuant to paragraphs 3, 7 and
8 above.

	12.	 	Any determination by the Administrative Agent pursuant to this Schedule in relation to a
formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall,
in the absence of manifest error, be conclusive and binding on all parties hereto.

	13.	 	The Administrative Agent may from time to time, after consultation with the Borrowers and the
Lenders, determine and notify to all parties any amendments which are required to be made to
this Schedule in order to comply with any change in law, regulation or any requirements from
time to time imposed by the Bank of England, the Financial Services Authority or the European
Central Bank (or, in any case, any other authority which replaces all or any of its functions)
and any such determination shall, in the absence of manifest error, be conclusive and binding
on all parties hereto.

For avoidance of doubt, Sterling shall not be an Alternative Currency unless and until it
shall have been approved as an Alternative Currency pursuant to Section 1.06 of the
Agreement.

 

 

 

Schedule 2.01 — Commitments and Applicable Percentages

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Applicable Percentage	 
	Bank of America, N.A.
	 	 	120,000,000	 	 	 	17.142857143	%
	JPMorgan Chase Bank, N.A.
	 	 	120,000,000	 	 	 	17.142857143	%
	COÖPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
INTERNATIONAL”, NEW YORK BRANCH
	 	 	100,000,000	 	 	 	14.285714286	%
	KeyBank National Association
	 	 	75,000,000	 	 	 	10.714285714	%
	HSBC Bank USA, National Association
	 	 	75,000,000	 	 	 	10.714285714	%
	Union Bank, N.A.
	 	 	75,000,000	 	 	 	10.714285714	%
	Wells Fargo Bank, National Association
	 	 	75,000,000	 	 	 	10.714285714	%
	Comerica Bank
	 	 	30,000,000	 	 	 	4.285714286	%
	ING Bank NV, Dublin Branch
	 	 	30,000,000	 	 	 	4.285714286	%
	Total
	 	 	700,000,000	 	 	 	100	%

 

 

 

Schedule 5.03 — Authorizations and Consents

Approval of the transactions contemplated by the Loan Documents by the Board of Directors (or
analogous governing body) of each Loan Party, which have been obtained as of the Closing Date.

 

 

 

Schedule 5.06 — Litigation

1. On April 16, 2007, Herbalife International of America, Inc. filed a Complaint in the United
States District Court for the Central District of California against certain former Herbalife
distributors who had left the Company to join a competitor. The Complaint alleged breach of
contract, misappropriation of trade secrets, intentional interference with prospective economic
advantage, intentional interference with contract, unfair competition, constructive trust and fraud
and seeks monetary damages, attorney’s fees and injunctive relief (Herbalife International of
America, Inc. v. Robert E. Ford, et al). The court entered a Preliminary Injunction against the
defendants enjoining them from further use and/or misappropriation of the Company’s trade secrets
on December 11, 2007. Defendants appealed the court’s entry of the Preliminary Injunction to the
U.S. Court of Appeals for the Ninth Circuit. That court affirmed, in relevant part, the Preliminary
Injunction. On December 3, 2007, the defendants filed a counterclaim alleging that the Company had
engaged in unfair and deceptive business practices, intentional and negligent interference with
prospective economic advantage, false advertising and that the Company was an endless chain scheme
in violation of California law and seeking restitution, contract rescission and an injunction. Both
sides engaged in discovery and filed cross motions for Summary Judgment. On August 25, 2009, the
court granted partial summary judgment for Herbalife on all of defendants’ claims except the claim
that the Company is an endless chain scheme which under applicable law is a question of fact that
can only be determined at trial. The court denied defendants’ motion for Summary Judgment on
Herbalife’s claims for misappropriation of trade secrets and breach of contract. On May 5, 2010,
the District Court granted summary judgment for Herbalife on defendants’ endless chain-scheme
counterclaim. Herbalife voluntarily dismissed its remaining claims, and on May 14, 2010, the
District Court issued a final judgment dismissing all of the parties’ claims. On June 10, 2010 the
defendants appealed from that judgment and on June 21, 2010, Herbalife cross-appealed. The Company
believes that there is merit to its appeal, and it will prevail upon both its appeal as well as the
defendant’s appeal.

2. Certain of the Company’s subsidiaries have been subject to tax audits by governmental
authorities in their respective countries. In certain of these tax audits, governmental authorities
are proposing that significant amounts of additional taxes and related interest and penalties are
due. The Company and its tax advisors believe that there are substantial defenses to their
allegations that additional taxes are owed, and the Company is vigorously contesting the additional
proposed taxes and related charges. On May 7, 2010, the Company received an administrative
assessment from the Mexican Tax Administration Service in an amount equivalent to approximately $93
million, translated at the period ended spot rate, for various items, the majority of which was
Value Added Tax allegedly owed on certain of the Company’s products imported into Mexico during the
years 2005 and 2006. This assessment is subject to interest and inflationary adjustments. On July
8, 2010, the Company initiated a formal administrative appeal process. In connection with the
appeal of the assessment, the Company may be required to post bonds for some or all of the assessed
amount. Therefore, in July 2010, the Company entered into agreements with certain insurance
companies to allow for the potential issuance of surety bonds in support of its appeal of the
assessment. The Company did not record a provision as the Company, based on analysis and guidance
from its advisors, does not believe a loss is probable. Further, the Company is currently unable to
reasonably estimate a possible loss or range of loss that could result from an unfavorable outcome
in respect to this assessment or
any additional assessments that may be issued for these or other periods. The Company believes that
it has meritorious defenses and is vigorously pursuing the appeal, but final resolution of this
matter could take several years.

 

 

 

These matters may take several years to resolve. While the Company believes it has meritorious
defenses, it cannot be sure of their ultimate resolution. Although the Company has reserved amounts
for certain matters that the Company believes represent the most likely outcome of the resolution
of these related disputes, if the Company is incorrect in the assessment, the Company may have to
record additional expenses, when it becomes probable that an increased potential liability is
warranted.

 

 

 

Schedule 5.11 — Taxes

See item 2 of Schedule 5.06.

 

 

 

Schedule 5.13 — Subsidiaries; Other Equity Investments

(a) Subsidiaries

	 	 	 	 	 
	 	 	 	 	Immaterial
	 	 	 	 	Subsidiary
	Subsidiary	 	Percentage Owned	 	(Y/N)
	WH Intermediate Holdings Ltd.
	 	100% - Herbalife Ltd.	 	N
	HBL Ltd.
	 	100% - WH Intermediate Holdings Ltd	 	Y
	WH Luxembourg Holdings S.à R.L.
	 	100% - HBL Luxembourg Holdings S.à R.L.	 	N
	HLF Luxembourg Holdings S.à R.L.
	 	100% - WH Luxembourg Holdings S.à R.L.	 	Y
	WH Capital Corporation
	 	100% - HLF Luxembourg Holdings S.à R.L.	 	Y
	WH Luxembourg Intermediate Holdings S.à R.L.
	 	100% WH Capital Corporation	 	Y
	HV Holdings Ltd.
	 	100% - WH Intermediate Holdings Ltd	 	Y
	Herbalife International, Inc. (see below)
	 	100% -  WH Luxembourg Intermediate Holdings LLC	 	N
	Herbalife International Luxembourg S.à R.L. (see below)
	 	100% - WH Luxembourg Holdings S.à R.L.	 	N
	Herbalife Australasia Pty., Ltd.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife China, LLC
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife del Ecuador, S.A.
	 	99% - Herbalife International, Inc. by Brett R. Chapman	 	Y
	 
	 	1% - Herbalife International of America, Inc. by Brett R. Chapman	 	 
	Herbalife Denmark ApS
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife Dominicana, S.A.
	 	61% - Herbalife International of America, Inc.	 	Y
	 
	 	34% - Herbalife International, Inc.	 	 
	 
	 	1% - Herbalife International Distribution, Inc.	 	 
	 
	 	1% - Herbalife International Communication, Inc.	 	 
	 
	 	1% - Herbalife International South Africa, Inc.	 	 
	 
	 	1% - Herbalife International of Europe, Inc.	 	 
	 
	 	1% - Herbalife Taiwan. All represented by a special attorney	 	 
	Herbalife Europe Limited
	 	100% - Herbalife (UK) Limited	 	Y
	Herbalife Foreign Sales Corporation (Barbados) Incorporated
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife Internacional de Mexico, S.A. de C.V.
	 	99.98% - Herbalife International, Inc. by Luis Emilio Lujan Sauri	 	N
	 
	 	0.02% - Herbalife International of America, Inc. by Jose Antonio Cervantes Acosta	 	 
	Herbalife International Argentina, S.A.
	 	90% - Herbalife International, Inc.	 	Y
	 
	 	10% - Herbalife International of America, Inc.	 	 
	Herbalife International Belgium, S.A.
	 	99% - Herbalife International, Inc. by Brett R. Chapman	 	Y
	 
	 	1% - Herbalife International of America, Inc. by Richard Goudis	 	 
	Herbalife International Communications, Inc.
	 	100% - Herbalife International, Inc.	 	N
	Herbalife International del Colombia
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International del Ecuador
	 	100% - Herbalife International, Inc.	 	Y

 

 

 

	 	 	 	 	 
	 	 	 	 	Immaterial
	 	 	 	 	Subsidiary
	Subsidiary	 	Percentage Owned	 	(Y/N)
	Herbalife International Deutschland GmbH
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International Distribution, Inc.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International Do Brasil Ltda
	 	99.99% - Herbalife International, Inc. (Managing Partner) by Richard P. Goudis	 	N
	 
	 	<0.01 - Herbalife International of America, Inc. by Brett R. Chapman	 	 
	Herbalife International España, S.A.
	 	99.82% - Herbalife International, Inc.	 	Y
	 
	 	0.09% - Herbalife International of America, Inc.	 	 
	 
	 	0.09% - Herbalife (U.K.) Limited	 	 
	Herbalife International Finland OY
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International France, S.A.
	 	99.99% - Herbalife International, Inc.	 	Y
	 
	 	<0.01% - Herbalife International of America, Inc.,	 	 
	 
	 	<0.01% - Herbalife (U.K.) Limited	 	 
	 
	 	<0.01% - Herbalife International España, Inc.	 	 
	 
	 	<0.01% - Herbalife (NZ) Limited	 	 
	 
	 	<0.01% - Herbalife Australasia Pty. Ltd.	 	 
	 
	 	<0.01% - David Wynne Roberts	 	 
	Herbalife International Greece S.A.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International India Private Limited
	 	24% - HIIP Investment Co., LLC	 	Y
	 
	 	76% - Herbalife International, Inc.	 	 
	Herbalife International (Netherlands) B.V.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International of America, Inc.
	 	100% - Herbalife International, Inc.	 	N
	Herbalife International of Hong Kong Limited.
	 	99% - Herbalife International, Inc. by Richard P. Goudis	 	Y
	 
	 	1% - Herbalife International of America, Inc. by Brett R. Chapman	 	 
	Herbalife International of Israel (1990) Ltd.
	 	99% - Herbalife International, Inc.	 	Y
	 
	 	1% - Herbalife International of America, Inc.	 	 
	Herbalife International Philippines, Inc.
	 	99.99% - Herbalife International, Inc.	 	Y
	 
	 	<0.01% - Robert Levy	 	 
	 
	 	<0.01% - Gary Huang	 	 
	 
	 	<0.01% - Abelardo Tolentino	 	 
	 
	 	<0.01% - Harvey Ringler	 	 
	 
	 	<0.01% - Richard Goudis	 	 
	Herbalife International Products N.V.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International Russia 1995 Ltd.
	 	99% - Herbalife International, Inc.	 	Y
	 
	 	1% - Herbalife International of America, Inc.	 	 
	Herbalife International South Africa, ltd.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International (Thailand), Ltd.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife International Urunleri Ticaret Limited (Turkey)
	 	50% - Herbalife International, Inc.

50% - Herbalife International of America, Inc.	 	Y
	Herbalife International, S.A.
	 	99.99% - Herbalife International, Inc.	 	Y
	 
	 	<0.01% - Herbalife International of America, Inc.	 	 
	 
	 	<0.01% - Herbalife (UK) Limited	 	 
	 
	 	<0.01% - Herbalife International España, S.A.	 	 
	 
	 	<0.01% - Herbalife International France, S.A.	 	 
	Herbalife Italia, S.p.A.
	 	95% - Herbalife International, Inc.	 	Y
	 
	 	5% - Herbalife International of America, Inc.	 	 
	Herbalife Korea Co., Ltd.
	 	100% - Herbalife International, Inc.	 	N
	Herbalife Manufacturing LLC
	 	100% - Herbalife International, Inc.	 	Y

 

 

 

	 	 	 	 	 
	 	 	 	 	Immaterial
	 	 	 	 	Subsidiary
	Subsidiary	 	Percentage Owned	 	(Y/N)
	Herbalife Norway Products AS
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife (NZ) Limited
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife of Canada Ltd.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife of Japan K.K.
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife Polska Sp. Z. o. o.
	 	100% - Herbalife International, Inc.	 	Y
	HBL Products, S.A.
	 	50% - Herbalife International, Inc.	 	Y
	 
	 	50% - Herbalife International of America, Inc.	 	 
	Herbalife Products de Mexico, S.A. de C.V.
	 	99 % - Herbalife International, Inc. by Luis Emilio Lujan Sauri	 	Y
	 
	 	1% - Herbalife International of America, Inc. by Jose Antonio Cervantes Acosta	 	 
	Herbalife Sweden Akiebolag
	 	100% - Herbalife International, Inc.	 	Y
	Herbalife Taiwan, Inc.
	 	100% - Herbalife International, Inc.	 	N
	Herbalife (UK) Limited
	 	100% - Herbalife International, Inc.	 	Y
	HIIP Investment Co., LLC
	 	100% - Herbalife International, Inc.	 	Y
	Inportadora y Distrbudora Herbalife International de Chile, Limitada
	 	99.99% - Herbalife International, Inc.

0.01% - Herbalife International of America, Inc.	 	Y
	Promotions One, Inc.
	 	100% - Herbalife International, Inc.	 	Y
	PT Herbalife Indonesia
	 	0.18% - Alpiter Steven Silaen	 	Y
	 
	 	99.82% - PT Dian Gatra Mokmur	 	 
	Servicios Integrales HIM, S.A. de C.V.
	 	99% - Herbalife International, Inc.	 	Y
	 
	 	1% - Herbalife International of America, Inc.	 	 
	Vida Herbal Supplementos Alimenticio, C.A., LLC
	 	<0.01% - Herbalife International, Inc.	 	Y
	 
	 	99.99% - Netherlands VidaHerbal Cooperatief	 	 
	VidaHerbal Dutch LLC
	 	100% - Herbalife International, Inc.	 	Y
	HLF Intl of India Investment Co.
	 	100% - Herbalife International, Inc.	 	Y
	Netherlands VidaHerbal Cooperatief UA
	 	99% - Herbalife International, Inc.	 	Y
	 
	 	1% - VidaHerbal Dutch LLC.	 	 
	Herbalife Mexicana, S.A. de C.V.
	 	99.98% - Herbalife International, Inc.	 	Y
	 
	 	0.02% - Herbalife International of America, Inc.	 	 
	Herbalife Africa S.à R.L.
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	Herbalife Asia Pacific Services Ltd.
	 	100% - Herbalife Natural Products LP	 	Y
	Herbalife Central America LLC
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	Herbalife (China) Health Products Ltd.
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	N
	Herbalife Croatia d.o.o.
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	Y
	Herbalife Distribution Ltd.
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	Herbalife Hungary Trading, Limited
	 	97.6% -Herbalife International Luxembourg S.à R.L.	 	Y
	 
	 	2.4% - WH Luxembourg Holdings S.à R.L.	 	 
	Herbalife International Costa Rica, Sociedad de Responsibilidad Limitada
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	Y
	Limited Liability Company Herbalife International RS
	 	99% - Herbalife International Luxembourg S.à R.L.

1% - WH Luxembourg Holdings S.à R.L.	 	Y
	Herbalife International Singapore Pte. Ltd.
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	Y
	Herbalife Luxembourg Distribution S.à R.L.
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	Herbalife Natural Products LP
	 	89.9% Herbalife International Luxembourg S.à R.L.	 	Y
	 
	 	0.1% - HLF Luxembourg Distribution S.à R.L.	 	 
	 
	 	10% - Qun Yi (S Corp)	 	 

 

 

 

	 	 	 	 	 
	 	 	 	 	Immaterial
	 	 	 	 	Subsidiary
	Subsidiary	 	Percentage Owned	 	(Y/N)
	Herbalife NatSource (Hunan) Natural Products Co., Ltd.
	 	100% - Herbalife Asia Pacific Services Limited	 	Y
	Herbalife Paraguay S.R.L.
	 	99.99% - Herbalife International Luxembourg, S.à R.L.	 	Y
	 
	 	<0.01% - WH Luxembourg Holdings, S.à R.L.	 	 
	Herbalife Peru S.R.L.
	 	99 % - Herbalife International Luxembourg, S.à R.L.	 	Y
	 
	 	1% - WH Luxembourg Holdings, S.à R.L.	 	 
	Herbalife Products Malaysia SDN, BHD
	 	70% - Herbalife International Luxembourg S.à R.L.	 	Y
	 
	 	15% - Noraliza Ayub	 	 
	 
	 	15% - Mohd Dehalan Ahmad	 	 
	Herbalife RO SRL
	 	99% - Herbalife International Luxembourg S.Á R.L.	 	Y
	 
	 	1% - HLF Luxembourg Distribution
S.à R.L.	 	 
	Herbalife Ukraine LLC
	 	99% - Herbalife International Luxembourg  S.à R.L.	 	Y
	 
	 	1% - HLF Luxembourg Distribution
S.à R.L.	 	 
	Herbalife Uruguay S.R.L.
	 	99% - Herbalife International Luxembourg S.à R.L.	 	Y
	 
	 	99% - HLF Luxembourg Distribution S.à R.L.	 	 
	Herbalife Vietnam SMLLC
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	Y
	HIL Swiss International GmbH
	 	95% - Herbalife International Luxembourg S.à R.L.	 	Y
	 
	 	5% - Robert A. Landolt	 	 
	HLF Colombia Ltda.
	 	50% - Herbalife Luxembourg Distribution, S.à R.L.	 	Y
	 
	 	50% - HLF Luxembourg Distribution, S.à R.L.	 	 
	HLF Luxembourg Distribution S.à R.L.
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	WHBL Luxembourg Holdings S.à R.L.
	 	100% - Herbalife International Luxembourg S.à R.L.	 	Y
	HBL Luxembourg Holdings S.à R.L.
	 	100% - WH Intermediate Holdings Ltd	 	Y
	Herbalife Bulgaria EOOD
	 	100% - Herbalife International Luxembourg, S.à R.L.	 	Y
	WHBL Luxembourg S.à R.L.
	 	100% -WH Luxembourg Holdings S.à R.L.	 	Y

(b) Other Equity Interests

None.

 

 

 

Schedule 5.17 — Identification Numbers for Foreign Obligors

	 	 	 	 	 
	Foreign Obligor	 	Jurisdiction	 	Organizational ID
	Herbalife Ltd.

	 	Cayman Islands
	 	CR-116838
	Herbalife International Luxembourg S.à.R.L

	 	Luxembourg
	 	B 88006
	WH Intermediate Holdings Ltd.

	 	Cayman Islands
	 	CR-117890
	WH Luxembourg Holdings S.à.R.L.

	 	Luxembourg
	 	B 88007

 

 

 

Schedule 7.01 — Existing Liens

US Liens

Collateral Description

E = Equipment

E(S) = Equipment (specified items only)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	FILE NO./	 	COLLATERAL	 	 
	DEBTOR(S)	 	SECURED PARTY	 	FILE DATE	 	DE SOSSCRIPTION	 	NOTES
	Herbalife International, Inc.

	 	General Electric Capital Corporation

10 Riverview Drive

Danbury, CT 06810
	 	Initial

2006021175-8

07/03/06
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607
	 	Initial

2006016613-1

05/24/06
	 	E(S)	 	 
	 

	 	General Electric Capital Corporation

10 Riverview Drive

Danbury, CT 06810
	 	Initial

2006021359-8

07/05/06
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	Macrolease Corporation 

1 W. Ames Court, Suite 101

Plainview, NY 11803
	 	Initial

2006041293-2

12/15/06
	 	E(S)	 	 
	 

	 	Sovereign Bank

3 Huntington Quadrangle, Melville

NY, NY 11747
	 	Assignment

2007004759-7

02/14/07
	 	 	 	Change to secured party
	 

	 	Sovereign Bank

3 Huntington Quadrangle, Melville

NY, NY 11803
	 	Assignment

2007016830-3

05/24/07
	 	 	 	Change to secured party information
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607

	 	Initial

2006041567-3

12/19/06
	 	E	 	 
	 

	 	 	 	Amendment

2008000071-7

01/02/08
	 	E(S)
	 	Restated collateral

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	FILE NO./	 	COLLATERAL	 	 
	DEBTOR(S)	 	SECURED PARTY	 	FILE DATE	 	DE SOSSCRIPTION	 	NOTES
	Herbalife International of America, Inc.

	 	Cisco Systems Capital Corporation

1111 old Eagle School Road

Wayne, PA 19087
	 	Initial

2007011074-4

04/06/07
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607
	 	Initial

2007012552-9

04/20/07
	 	E	 	 
	 

	 	 	 	Amendment

2007042203-6

12/26/07
	 	E(S)
	 	Restated collateral
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607
	 	
Initial

2007031156-2

09/21/07
	 	E	 	 
	 

	 	 	 	Amendment

2008033677-0

11/03/08
	 	E(S)
	 	Restated collateral
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607
	 	Initial

2007039017-6

11/26/07
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	General Electric Capital Corporation

3031 North Rocky 

Point Drive West, Suite 400

Tampa, FL 33607
	 	Initial

2007042616-1

12/28/07
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	Bank of the West 

201 N. Civic Drive, Suite 360B 

Walnut Creek, CA 94595
	 	Initial

2008001572-0

01/15/08
	 	E(S)	 	 
	 

	 	 	 	Amendment

2009028984-6

12/02/09
	 	 	 	Disclaimer of security interest

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	FILE NO./	 	COLLATERAL	 	 
	DEBTOR(S)	 	SECURED PARTY	 	FILE DATE	 	DE SOSSCRIPTION	 	NOTES
	Herbalife International of America, Inc.

	 	Xerox Corporation

1301 Ridgeview Bldg 300

Lewisville, TX 75057
	 	Initial

2009016342-2

07/01/09
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	Banc of America Leasing & Capital, LLC 

2059 Northlake Parkway, 3 North 

Tucker, GA 30084
	 	Initial

2009028989-6

12/02/09
	 	E(S)	 	 
	Herbalife International of America, Inc.

	 	Cisco Systems Capital Corporation
170 W. Tasman Drive MS SJ13-3
San Jose, CA 95134
	 	Initial

2010030654-4

12/07/10
	 	E(S)	 	 

Foreign Liens

	1.	 	Herbalife Australasia Pty Ltd office lease. Cash collateral for Bank Guarantee Facility with
National Australia Bank Limited for A$308,000.

	2.	 	Herbalife Korea Co., Ltd. DSMAC guarantees. Cash collateral for bank guarantees with Kookmin
and Shinhan Bank totaling KRW 7,400,000,000.

	3.	 	Herbalife Vietnam SMLLC direct selling license. Escrow Deposit based on Government decree
110/2005/ND totaling VND 1,000,000,000.

	4.	 	Herbalife (China) Health Products Ltd direct selling license. Escrow deposit totaling
$2,500,000.

	5.	 	Herbalife of Japan K.K. customs duty guarantee to expedite clearing customs for JPY
20,000,000.

	6.	 	Herbalife International Do Brasil Ltda cash collateral of R$306,183.48 with court as
guarantee for pending lawsuit; and pledge of inventory totaling R$190,883.81 with government
authorities as guarantee for pending tax litigation.

	 
	7.	 	Herbalife International Argentina, S.A. office lease deposit of AR$133,000.

	 
	8.	 	Herbalife Norway Products AS office lease deposit of NOK 370,700.

	 
	9.	 	Herbalife (UK) Ltd cash collateral of ISK 8,383,263 as guarantee for Iceland customs.

	10.	 	Herbalife International (Netherlands) B.V. office lease deposit for €65,000.

 

 

 

	11.	 	Herbalife International España, S.A. office lease deposit for €160,080.

	12.	 	Herbalife Peru S.R.L. office and warehouse lease deposits totaling $73,897.

	13.	 	Herbalife International Deutschland GmbH office lease deposit for €200,000.

	14.	 	Liens in respect of the Company’s previous credit facilities, which facilities have been
terminated and which indebtedness has been repaid, for which the Company is using commercially
reasonable efforts to file the documents necessary to have such liens released in the relevant
foreign jurisdictions.

 

 

 

Schedule 7.03 — Existing Indebtedness

Capital Leases:

As of December 31, 2010:          $2.92 million

Detail:

	 	 	 	 	 	 	 	 	 
	Lessee	 	Lessor	 	Items Leased	 	Outstanding	 
	Herbalife International of America, Inc.
	 	GE Capital	 	office furniture	 	 	1,745,779	 
	 
	 	Banc of America	 	office furniture	 	 	912,283	 
	 
	 	Cisco	 	routers & equipment	 	 	239,760	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	2,897,822	 
	 
	 	 	 	 	 	 	 	 
	Herbalife Manufacturing LLC
	 	Tennant Company	 	power scrubbers	 	 	19,997	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	19,997	 
	 
	 	 	 	 	 	 	 	 
	Total
	 	 	 	 	 	 	2,917,819	 

Other Indebtedness:

	 	 	 
	Korea:

	 	Outstanding guarantees with Massachusetts & Colorado (Direct Sales
Mutual Aid Coop)

Amounts: KRW 2,200,000,000

Details: Bank guarantees on behalf of Herbalife Korea for payments of returned goods
and related cost paid by Massachusetts & Colorado. to end users.
	 
	 	 
	Spain:

	 	Outstanding letter of credit in favor of the Spanish tax authority
Amounts: Euro 1,971,694.30

Details: Guarantee in favor of the Spanish tax authority for ongoing litigation over a
2003-2004 tax assessment.
	 
	 	 
	Luxembourg:

	 	HLF Luxembourg Holdings S.à R.L. bank guarantee for Dutch Post for €150,000.
	 
	 	 
	Portugal:

	 	Herbalife International, S.A. bank guarantee for €4,936 for electric company.

 

 

 

Schedule 10.02 — Administrative Agent’s Office; Certain Addresses for Notices

SEC Website for Posting of Financial Statements and Other Filings:

http://www.sec.gov/edgar/

Addresses:

COMPANY and OTHER BORROWERS:

990 W. 190th Street, Suite 650

Torrance, CA 90502, U.S.A.

Attention: Richard Yamashita

Telephone: (310) 410-9600

Telecopier: (310) 767-3328

Electronic Mail: richardy@herbalife.com

Website Address: www.herbalife.com

U.S. Taxpayer Identification Number(s):

Taxpayer Id # of Company and Domestic Guarantors:

	 	 	 	 	 
	Entity	 	Taxpayer Id#	 
	 
	 	 	 	 
	Herbalife International, Inc., a Nevada corporation
	 	 	22-2695420	 
	Herbalife International of America, Inc., a Nevada corporation
	 	 	95-3954565	 
	Herbalife International Communications, Inc., a California
corporation
	 	 	95-4520868	 
	Herbalife International Do Brasil Ltda, a corporation dually
organized in Brazil and Delaware
	 	 	52-1951822	 
	Herbalife Korea Co., Ltd., a corporation dually organized in
the Republic of Korea and Delaware
	 	 	98-0165848	 
	Herbalife Taiwan, Inc., a California corporation
	 	 	95-4534645	 

 

 

 

ADMINISTRATIVE AGENT:

Administrative Agent & Swingline Lender Office:

(For financial/loan activity — advances, pay down, interest/fee billing and payments, rollovers, rate-settings):

Attention: Rosiland Meshack

Phone: 925.675.8448

Fax: 888.969.2285

Electronic Mail: rosiland.meshack@baml.com

Remittance Instructions:

Bank of America, N.A.

New York, NY

ABA #: 026-009-593

Account #: 3750836479

Attn: Credit Services West

Ref: Herbalife International Inc

LC Issuer’s Office: 

(For fee payments due LC Issuer only and new LC requests and amendments):

Trade Operations

1 Fleet Way

Mail Code: PA6-580-02-30

Scranton, PA 18507

Attention: Mary J. Cooper

Telephone: 570.330.4235

Telecopier: 570.330.4186

Electronic Mail: mary.j.cooper@baml.com

Remittance Instructions:

Bank of America, N.A., Scranton, PA

ABA #: 026-009-593 New York, NY

Account #: 04535-883980

Attn: Scranton Standby

Ref: Herbalife International Inc & LC #

 

 

 

Other Notices as Administrative Agent:

(For financial statements, compliance certificates, maturity extension and commitment change notices, amendments, consents, vote taking, etc)

Bank of America Plaza

Mail Code: NC1-002-15-36

101 S Tryon St, 15th Fl

Charlotte NC 28255-0001

Attention: Darleen R Parmelee

Telephone: 980.388.5001

Telecopier: 704.409.0645

Electronic Mail: darleen.r.parmelee@baml.com

 

 

 

EXHIBIT A

FORM OF COMMITTED LOAN NOTICE

Date:                     , _____

	To:  	 	Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of March 9, 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), among
Herbalife International, Inc., a Nevada corporation (the “Company”), Herbalife Ltd., a
Cayman Islands exempted company with limited liability (“Holdings”), Herbalife
International Luxembourg S.á.r.l., a Luxembourg private limited liability company, having its
registered office at 18, boulevard Royal, L-2449 Luxembourg, having a share capital of EUR 25,000,
registered with the Luxembourg trade and companies register under number B 88.006 (“HIL”),
certain Subsidiaries of the Company party thereto (each a “Designated Borrower” and,
together with the Company, Holdings and HIL, the “Borrowers” and, each a
“Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

[The Company][Holdings][HIL] hereby requests, on behalf of itself or, if applicable, the
Designated Borrower referenced in item 6 below (the “Applicable Designated Borrower”)
(select one):

	 	 	 
	o A Borrowing of Committed Loans

	 	o A conversion or continuation of Loans

1. On                                         (a Business Day).

2. In the amount of                                         .

3. Comprised of
                  
                 
                 
                    
                        .

[Type of Committed Loan requested]

4. In the following currency:                                         

5. For Eurocurrency Rate Loans: with an Interest Period of                      months.

6. [On behalf of                                          [insert name of applicable Designated
Borrower].]

Form of Committed Loan Notice

 

A-1

 

The Committed Borrowing, if any, requested herein complies with the provisos to the first
sentence of Section 2.01 of the Agreement.

	 	 	 	 	 
	 	[HERBALIFE INTERNATIONAL, INC.] 
[HERBALIFE LTD.]

[HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L.]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Form of Committed Loan Notice

 

A-2

 

EXHIBIT B

FORM OF SWING LINE LOAN NOTICE

Date:                     , _____

	To: 	 	 Bank of America, N.A., as Swing Line Lender

Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of March 9, 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), among
Herbalife International, Inc., a Nevada corporation (the “Company”), Herbalife Ltd., a
Cayman Islands exempted company with limited liability (“Holdings”), Herbalife
International Luxembourg S.á.r.l., a Luxembourg private limited liability company, having its
registered office at 18, boulevard Royal, L-2449 Luxembourg, having a share capital of EUR 25,000,
registered with the Luxembourg trade and companies register under number B 88.006 (“HIL”),
certain Subsidiaries of the Company party thereto (each a “Designated Borrower” and,
together with the Company, Holdings and HIL, the “Borrowers” and, each a
“Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

The undersigned hereby requests a Swing Line Loan:

	 	1.	 	On                                          (a Business Day).

	 
	 	2.	 	In the amount of $                    .

The Swing Line Borrowing requested herein complies with the requirements of the provisos to
the first sentence of Section 2.04(a) of the Agreement.

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Form of Swing Line Loan Notice

 

B-1

 

EXHIBIT C

FORM OF NOTE

                                        

FOR VALUE RECEIVED, the undersigned ([the
“Company”][“Holdings”][“HIL”]) hereby promises to pay to
                                         or registered assigns (the “Lender”), in accordance with the
provisions of the Agreement (as hereinafter defined), the principal amount of each Loan from time
to time made by the Lender to [the Company][Holdings][HIL] under that certain Credit Agreement,
dated as of March 9, 2011 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement;” the terms defined therein being used herein as
therein defined), among the Company, Holdings, HIL, the Designated Borrowers from time to time
party thereto, the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

[The Company][Holdings][HIL] promises to pay interest on the unpaid principal amount of each
Loan from the date of such Loan until such principal amount is paid in full, at such interest rates
and at such times as provided in the Agreement. Except as otherwise provided in Section
2.04(f) of the Agreement with respect to Swing Line Loans, all payments of principal and
interest shall be made to the Administrative Agent for the account of the Lender in the currency in
which such Committed Loan was denominated and in Same Day Funds at the Administrative Agent’s
Office for such currency. If any amount is not paid in full when due hereunder, such unpaid amount
shall bear interest, to be paid upon demand, from the due date thereof until the date of actual
payment (and before as well as after judgment) computed at the per annum rate set forth in the
Agreement.

This Note is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and conditions provided
therein. This Note is also entitled to the benefits of the Guaranties and is secured by the
Collateral. Upon the occurrence and continuation of one or more of the Events of Default specified
in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared
to be, immediately due and payable all as provided in the Agreement. Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Note and endorse thereon the date,
amount, currency and maturity of its Loans and payments with respect thereto.

[The Company][Holdings][HIL], for itself, its successors and assigns, hereby waives diligence,
presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this
Note.

Form of Note

 

C-1

 

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

	 	 	 	 	 
	 	[HERBALIFE INTERNATIONAL, INC.]

[HERBALIFE LTD.]

[HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L.]

OR

[APPLICABLE DESIGNATED BORROWER]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Form of Note

	 	 	 	 	 

 

C-2

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Currency	 	 	 	Amount of	 	 	 	 
	 	 	 	 	and	 	 	 	Principal	 	Outstanding	 	 
	 	 	Type of	 	Amount of	 	End of	 	or Interest	 	Principal	 	 
	 	 	Loan	 	Loan	 	Interest	 	Paid This	 	Balance	 	Notation
	Date	 	Made	 	Made	 	Period	 	Date	 	This Date	 	Made By
	 	 	 	 	 	 	 	 	 	 	 	 	 

Form of Note

 

C-3

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                     , ____

	To: 	 	 Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of March 9, 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement;” the terms defined therein being used herein as therein defined), among
Herbalife International, Inc., a Nevada corporation (the “Company”), Herbalife Ltd., a
Cayman Islands exempted company with limited liability (“Holdings”), Herbalife
International Luxembourg S.á.r.l., a Luxembourg private limited liability company, having its
registered office at 18, boulevard Royal, L-2449 Luxembourg, having a share capital of EUR 25,000,
registered with the Luxembourg trade and companies register under number B 88.006 (“HIL”),
certain Subsidiaries of the Company party thereto (each a “Designated Borrower” and,
together with the Company, Holdings and HIL, the “Borrowers” and, each a
“Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, L/C Issuer and Swing Line Lender.

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                    1 of Holdings, and that, as such, he/she is authorized to execute and
deliver this Certificate to the Administrative Agent on the behalf of Holdings, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

1. Holdings has delivered the year-end audited financial statements required by Section
6.01(a) of the Agreement for the fiscal year of Holdings ended as of the above date, together
with the opinion of an independent certified public accountant and a management’s discussion and
analysis of the financial condition and results of operations for such fiscal year, each as
required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

1. Holdings has delivered the unaudited financial statements required by Section
6.01(b) of the Agreement for the fiscal quarter of Holdings ended as of the above date. Such
financial statements fairly present the financial condition, results of operations and cash flows
of Holdings and its Subsidiaries in accordance with GAAP as at such date and for such period,
subject only to normal year-end audit adjustments and the absence of footnotes.

2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the
transactions and condition (financial or otherwise) of Holdings during the accounting period
covered by such financial statements.

 

	 	 	 
	1	 	Chief executive officer, chief financial officer, treasurer or controller.

Form of Compliance Certificate

 

D-1

 

3. A review of the activities of the Borrowers during such fiscal period has been made under
the supervision of the undersigned with a view to determining whether during such fiscal period
each Borrower performed and observed all its Obligations under the Loan Documents, and

[select one:]

[to the best knowledge of the undersigned, as of the date of the enclosed financial
statements, no Default has occurred and is continuing.]

—or—

[to the best knowledge of the undersigned, as of the date of the enclosed financial statements
the Company is not in compliance with certain covenants or conditions and the following is a list
of each such Default and its nature and status:]

4. The financial covenant analyses and information set forth on Schedules 1 and
2 attached hereto are true and accurate on and as of the date of this Certificate.

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                     ,
 _____.

	 	 	 	 	 
	 	HERBALIFE LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Form of Compliance Certificate

 

D-2

 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

For the Quarter/Year ended                     (“Statement Date”)

SCHEDULE 1

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 
	I. Section 7.11 (a) — Consolidated Interest Coverage Ratio.
	 	 	 	 
	 
	 	 	 	 
	A. Consolidated EBITDA for four consecutive fiscal quarters ending on above date (“Subject Period”):
	 	 	 	 
	 
	 	 	 	 
	1. Consolidated Net Income for Subject Period:
	 	$ 	                    	 
	 
	 	 	 	 
	2. Consolidated Interest Expense for Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	3. Provision for income taxes for Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	4. Depreciation for Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	5. Amortization expenses for Subject Period (including
amortization of deferred fees and the accretion of
original issue discount):
	 	$	                    	 
	 
	 	 	 	 
	6. All other noncash items subtracted in determining
Consolidated Net Income (including any noncash
charges and noncash equity based compensation
expenses related to any grant of stock, stock
options or other equity-based awards (including,
without limitation, restricted stock units or stock
appreciation rights) of Holdings or any of its
Subsidiaries recorded under GAAP, noncash charges
related to warrants or other derivative instruments
classified as equity instruments that will result in
equity settlements and not cash settlements, and
noncash losses or charges related to impairment of
goodwill and other intangible assets and excluding
any noncash charge that results in an accrual of a
reserve for cash charges in any future period) for
Subject period:
	 	$	                    	 
	 
	 	 	 	 

Form of Compliance Certificate

 

D-3

 

	 	 	 	 	 
	7. Nonrecurring expenses and charges for Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	8. Fees and expenses incurred in connection with the
incurrence, prepayment, amendment, or refinancing of
Indebtedness (including in connection with (i) the
negotiation and documentation of the Agreement and
the other Loan Documents and any amendments or
waivers thereof and (ii) the on-going compliance
with the Agreement and the other Loan Documents) for
Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	9. aggregate amount of all noncash items, determined on a
consolidated basis for Subject Period, to the extent
such
items were added in determining Consolidated Net
Income:
	 	$	                    	 
	 
	 	 	 	 
	10. Consolidated EBITDA 

(Lines I.A.1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 — 9):
	 	$	                    	 
	 
	 	 	 	 
	B. Consolidated Interest Expense for Subject Period:
	 	$	                    	 
	 
	 	 	 	 
	C. Consolidated Interest Coverage Ratio (Line I.A.10 ÷
Line I.B):
	 	                      to 1
	 
	 	 	 	 
	Minimum required: 4.00 to 1
	 	 	 	 
	 
	 	 	 	 
	II. Section 7.11 (b) — Consolidated Total Leverage Ratio.
	 	 	 	 
	 
	 	 	 	 
	A. Consolidated Indebtedness of Holdings at Statement Date:
	 	$	                    	 
	 
	 	 	 	 
	B. Consolidated EBITDA for Subject Period (Line I.A.10 above):
	 	$	                    	 
	 
	 	 	 	 
	C. Consolidated Leverage Ratio (Line III.A ÷ Line III.B):
	 	                     to 1
	 
	 	 	 	 
	Maximum permitted: 2.50 to 1
	 	 	 	 

Form of Compliance Certificate

 

D-4

 

EXHIBIT E-1

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each]2 Assignor
identified in item 1 below ([the][each, an] “Assignor”) and [the][each]3
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
agreed that the rights and obligations of [the Assignors][the Assignees]4 hereunder are
several and not joint.]5 Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and
Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth herein in full.

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] with respect to its Commitment
and the Loans outstanding with respect thereto (including, without limitation, the Letters of
Credit and the Swing Line Loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of [the
Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as
Lenders)] against any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan
transactions governed thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to
[the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as
[the][an] “Assigned Interest”). Each such sale and assignment is without recourse to
[the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by [the][any] Assignor.

 

	 	 	 
	2	 	For bracketed language here and elsewhere in this form
relating to the Assignor(s), if the assignment is from a single Assignor,
choose the first bracketed language. If the assignment is from multiple
Assignors, choose the second bracketed language.

	 
	3	 	For bracketed language here and elsewhere in this form
relating to the Assignee(s), if the assignment is to a single Assignee, choose
the first bracketed language. If the assignment is to multiple Assignees,
choose the second bracketed language.

	 
	4	 	Select as appropriate.

	 
	5	 	Include bracketed language if there are either multiple
Assignors or multiple Assignees.

Form of Assignment and Acceptance

 

E-1-1

 

	 	 	 	 	 	 	 
	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	[for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

	 
	3.	 	Borrowers: Herbalife International, Inc., Herbalife Ltd. And Herbalife International Luxembourg S.á.r.l.

	 
	4.	 	Administrative Agent: Bank of America, N.A., as the administrative agent under the
Credit Agreement

	 
	5.	 	Credit Agreement: Credit Agreement, dated as of March 9, 2011, among the Borrowers,
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative
Agent, L/C Issuer, and Swing Line Lender

	 
	6.	 	Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	Amount of	 	Percentage	 	 	 
	 	 	 	 	Commitment for	 	Commitment	 	Assigned of	 	 	 
	Assignor[s]6	 	Assignee[s]7	 	all Lenders8	 	Assigned	 	Commitment9	 	 	CUSIP Number
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	$	                    
	 	$	                    
	 	                    
	%	 	 
	 
	 	 	 	$	                    
	 	$	                    
	 	                    
	%	 	 
	 
	 	 	 	$	                    
	 	$	                    
	 	                    
	%	 	 

	 	 	 	 	 
	[7.

	 	Trade Date:
	 	                                        ]10

Effective Date:                                         , 20_____
[TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

	 	 	 
	6	 	List each Assignor, as appropriate.

	 
	7	 	List each Assignee, as appropriate.

	 
	8	 	Amounts in this column and in the column immediately to
the right to be adjusted by the counterparties to take into account any
payments or prepayments made between the Trade Date and the Effective Date.

	 
	9	 	Set forth, to at least 9 decimals, as a percentage of
the Commitment/Loans of all Lenders thereunder.

	 
	10	 	To be completed if the Assignor and the Assignee
intend that the minimum assignment amount is to be determined as of the Trade
Date.

Form of Assignment and Acceptance

 

E-1-2

 

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

	 
	 	By:  	

 	 
	 	 	Title: 	 

	 	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 

	 	 	 	 	 
	[Consented to and] 11 Accepted:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A., as	 	 
	Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	Consented to:	 	 
	 
	 	 	 	 
	BANK OF AMERICA, N.A., as	 	 
	L/C Issuer and as Swing Line Lender	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 

 

	 	 	 
	11	 	To be added only if the consent of the Administrative
Agent is required by Section 10.06(b)(iii) of the Credit Agreement.

Form of Assignment and Acceptance

 

E-1-3

 

	 	 	 	 	 
	[Consented to: 12	 	 
	 
	 	 	 	 
	HERBALIFE LTD.,

as Holdings	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	HERBALIFE INTERNATIONAL, INC.,

as the Company	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title:
	 	 
	 
	 	 	 	 
	HERBALIFE INTERNATIONAL LUXEMBOURG

S.Á.R.L., as a Borrower	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Title: ]
	 	 

 

	 	 	 
	12	 	To be added only if the consent of the Borrowers is
required by Section 10.06(b)(iii) of the Credit Agreement.

Form of Assignment and Acceptance

 

E-1-4

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1. Representations and Warranties.

1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or
any other Person obligated in respect of any Loan Document or (iv) the performance or observance by
the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all the requirements to be an assignee under Section
10.06(b)(iii), (v), and (vi) of the Credit Agreement (subject to such consents,
if any, as may be required under Section 10.06(b)(iii) of the Credit Agreement), (iii) from
and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a
Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to Section 6.01(a) or (b) thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase
[the][such] Assigned Interest, and (vii) if it is a Foreign Lender, attached hereto is any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and
without reliance upon the Administrative Agent, [the][any] Assignor or any other Lender, and based
on such documents and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will
perform in accordance with their terms all of the obligations which by the terms of the Loan
Documents are required to be performed by it as a Lender.

Form of Assignment and Acceptance

 

E-1-5

 

2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to
but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued
from and after the Effective Date.

3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.

Form of Assignment and Acceptance

 

E-1-6

 

EXHIBIT E-2

FORM OF ADMINISTRATIVE QUESTIONNAIRE

[To be attached.]

 

E-2-1

 

ADMINISTRATIVE DETAILS REPLY FORM — MULTICURRENCY

CONFIDENTIAL

FAX ALONG WITH COMMITMENT LETTER TO: Darleen Parmelee

FAX # 704.409.0645

I. Borrower Name: Herbalife International, Inc.

$                                         Type of Credit Facility Revolving Credit Facility

II. Legal Name of Lender of Record for Signature Page:

 

	 	•	 	Signing Credit Agreement           o YES            o NO

	 
	 	•	 	Coming in via Assignment           o YES            o NO

	 	 	 
	III. Type of Lender:
	 	 
	 

	 	 

(Bank, Asset Manager, Broker/Dealer, CLO/CDO, Finance Company, Hedge Fund, Insurance, Mutual Fund,
Pension Fund, Other Regulated Investment Fund, Special Purpose Vehicle, Other — please specify)

	 	 	 
	IV. Domestic Address:

	 	V. Eurodollar Address:
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

VI. Contact Information:

Syndicate level information (which may contain material non-public information about the Borrower
and its related parties or their respective securities will be made available to the Credit
Contact(s). The Credit Contacts identified must be able to receive such information in accordance
with his/her institution’s compliance procedures and applicable laws, including Federal and State
securities laws.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Primary	 	 	Secondary	 
	 	 	Credit Contact	 	 	Operations Contact	 	 	Operations Contact	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Telephone:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Facsimile:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	E Mail Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	IntraLinks E Mail
Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

Does Secondary Operations Contact need copy of notices? o YES o NO

			
	 	 	 
	
	 	12/2007

 

1

 

ADMINISTRATIVE DETAILS REPLY FORM — MULTICURRENCY

CONFIDENTIAL

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Letter of Credit	 	 	Draft Documentation	 	 	 	 
	 	 	Contact	 	 	Contact	 	 	Legal Counsel	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Telephone:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Facsimile:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	E Mail Address:
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

PLEASE CHECK IF YOU CAN FUND IN THE CURRENCIES REQUIRED FOR THIS TRANSACTION LISTED
BELOW:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	US DOLLAR	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 

VII. Lender’s SWIFT Payment Instructions for [Foreign Currency]:

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Bank Name)	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(SWIFT)
	 	(Country)
	 
	 	 	 	 
	 	 	 
	 

	 	(Account #)
	 	(Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(FFC Account #)
	 	(FFC Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(Attention)	 	 

VII. Lender’s SWIFT Payment Instructions for [Foreign Currency]:

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Bank Name)	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(SWIFT)
	 	(Country)
	 
	 	 	 	 
	 	 	 
	 

	 	(Account #)
	 	(Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(FFC Account #)
	 	(FFC Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(Attention)	 	 

			
	 	 	 
	
	 	12/2007

 

2

 

ADMINISTRATIVE DETAILS REPLY FORM — MULTICURRENCY

CONFIDENTIAL

VII. Lender’s SWIFT Payment Instructions for [Foreign Currency]:

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Bank Name)	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(SWIFT)
	 	(Country)
	 
	 	 	 	 
	 	 	 
	 

	 	(Account #)
	 	(Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(FFC Account #)
	 	(FFC Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(Attention)	 	 

VII. Lender’s SWIFT Payment Instructions for [Foreign Currency]:

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Bank Name)	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(SWIFT)
	 	(Country)
	 
	 	 	 	 
	 	 	 
	 

	 	(Account #)
	 	(Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(FFC Account #)
	 	(FFC Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(Attention)	 	 

VIII. Lender’s Standby Letter of Credit, Commercial Letter of Credit, and Bankers’ Acceptance Fed
Wire Payment Instructions (if applicable):

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

(Bank Name)
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(ABA #)	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Account #)	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Attention)	 	 

IX. Lender’s Fed Wire Payment Instructions:

	 	 	 	 	 
	Pay to:
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(Bank Name)	 	 
	 
	 	 	 	 
	 	 	 
	 

	 	(ABA#)
	 	(City/State)
	 
	 	 	 	 
	 	 	 
	 

	 	(Account #)
	 	(Account Name)
	 
	 	 	 	 
	 	 	 
	 

	 	(Attention)	 	 

			
	 	 	 
	
	 	12/2007

 

3

 

ADMINISTRATIVE DETAILS REPLY FORM — MULTICURRENCY

CONFIDENTIAL

X. Organizational Structure and Tax Status

Please refer to the enclosed withholding tax instructions below and then complete this section
accordingly:

Lender Taxpayer Identification Number (TIN): 
_____ _____ - _____ _____ _____ _____ _____ _____

Tax Withholding Form Delivered to Bank of America*:

                     W-9

                     W-8BEN

                     W-8ECI

                     W-8EXP

                     W-8IMY

	 	 	 	 	 
	 	 	Tax Contact	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Telephone:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Facsimile:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	E Mail Address:
	 	 	 	 
	 

	 	 

	 	 

NON—U.S. LENDER INSTITUTIONS

1. Corporations:

If your institution is incorporated outside of the United States for U.S. federal income tax
purposes, and is the beneficial owner of the interest and other income it receives, you must
complete one of the following three tax forms, as applicable to your institution: a.) Form W-8BEN
(Certificate of Foreign Status of Beneficial Owner), b.) Form W-8ECI (Income Effectively Connected
to a U.S. Trade or Business), or c.) Form W-8EXP (Certificate of Foreign Government or Governmental
Agency).

A U.S. taxpayer identification number is required for any institution submitting a Form W-8 ECI. It
is also required on Form W-8BEN for certain institutions claiming the benefits of a tax treaty with
the U.S. Please refer to the instructions when completing the form applicable to your institution.
In addition, please be advised that U.S. tax regulations do not permit the acceptance of faxed
forms. An original tax form must be submitted.

			
	 	 	 
	
	 	12/2007

 

4

 

ADMINISTRATIVE DETAILS REPLY FORM — MULTICURRENCY

CONFIDENTIAL

2. Flow-Through Entities

If your institution is organized outside the U.S., and is classified for U.S. federal income tax
purposes as either a Partnership, Trust, Qualified or Non-Qualified Intermediary, or other non-U.S.
flow-through entity, an original Form W-8IMY (Certificate of Foreign Intermediary, Foreign
Flow-Through Entity, or Certain U.S. branches for United States Tax Withholding) must be completed
by the intermediary together with a withholding statement. Flow-through entities other than
Qualified Intermediaries are required to include tax forms for each of the underlying beneficial
owners.

Please refer to the instructions when completing this form. In addition, please be advised that
U.S. tax regulations do not permit the acceptance of faxed forms. Original tax form(s) must be
submitted.

U.S. LENDER INSTITUTIONS:

If your institution is incorporated or organized within the United States, you must complete and
return Form W-9 (Request for Taxpayer Identification Number and Certification). Please be advised
that we require an original form W-9.

Pursuant to the language contained in the tax section of the Credit Agreement, the applicable tax
form for your institution must be completed and returned on or prior to the date on which your
institution becomes a lender under this Credit Agreement. Failure to provide the proper tax form
when requested will subject your institution to U.S. tax withholding.

	 	 	 
	*	 	Additional guidance and instructions as to where to submit this documentation can be found at this
link:

         

Tax Form Tool Kit

    (2006) (2).doc

XI. Bank of America Payment Instructions:

	 	 	 
	Pay to:

	 	Bank of America, N.A.
	 

	 	ABA # 026009593
	 

	 	New York, NY
	 

	 	Acct. # 3750836479
	 

	 	Attn: Credit Services #5596
	 

	 	Ref: Herbalife International, Inc.

			
	 	 	 
	
	 	12/2007

 

5

 

EXHIBIT F

FORM OF SECURITY AGREEMENT

[To be attached.]

Form of Security Agreement

 

F-1

 

SECURITY AGREEMENT

by

HERBALIFE INTERNATIONAL, INC.,

and

THE SUBSIDIARY GUARANTORS PARTY HERETO,

as Pledgors

in favor of

BANK OF AMERICA, N.A.,

as Collateral Agent

Dated as of March 9, 2011

 

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	ARTICLE I Definitions and Interpretation; Perfection Certificate
	 	 	2	 
	SECTION 1.01. Definitions
	 	 	2	 
	SECTION 1.02. Interpretation
	 	 	8	 
	SECTION 1.03. Perfection Certificate
	 	 	8	 
	 
	 	 	 	 
	ARTICLE II Grant of Security and Secured Obligations
	 	 	8	 
	SECTION 2.01. Pledge
	 	 	8	 
	SECTION 2.02. Certain Limited Exclusions
	 	 	9	 
	SECTION 2.03. Secured Obligations; Continuing Liability
	 	 	10	 
	 
	 	 	 	 
	ARTICLE III Perfection; Supplements; Further Assurances; Use of Security Agreement Collateral
	 	 	10	 
	SECTION 3.01. Delivery of Certificated Pledged Equity Interests
	 	 	10	 
	SECTION 3.02. Perfection of Uncertificated Pledged Equity Interests
	 	 	11	 
	SECTION 3.03. Financing Statements and Other Filings
	 	 	11	 
	SECTION 3.04. Other Actions
	 	 	11	 
	SECTION 3.05. Supplements; Further Assurances
	 	 	12	 
	 
	 	 	 	 
	ARTICLE IV Representations, Warranties and Covenants
	 	 	13	 
	SECTION 4.01. Title
	 	 	13	 
	SECTION 4.02. Organization; Authority; Enforceability
	 	 	13	 
	SECTION 4.03. Authorizations and Approvals
	 	 	14	 
	SECTION 4.04. Reserved
	 	 	14	 
	SECTION 4.05. Limitation on Liens
	 	 	14	 
	SECTION 4.06. Other Financing Statements
	 	 	14	 
	SECTION 4.07. Chief Executive Office; Change of Name; Jurisdiction of Organization

	 	 	14	 
	SECTION 4.08. Certain Provisions Concerning Securities Collateral
	 	 	15	 
	SECTION 4.09. Certain Provisions Concerning Intellectual Property
	 	 	17	 
	SECTION 4.10. Inspection and Verification
	 	 	19	 
	SECTION 4.11. Payment of Taxes; Contesting Liens; Claims
	 	 	19	 
	SECTION 4.12. Transfers and Other Liens
	 	 	19	 

 

i

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	 
	 	 	 	 
	ARTICLE V Remedies
	 	 	19	 
	SECTION 5.01. Remedies
	 	 	19	 
	SECTION 5.02. Notice of Sale
	 	 	21	 
	SECTION 5.03. Waiver of Notice and Claims
	 	 	22	 
	SECTION 5.04. Certain Sales of Security Agreement Collateral
	 	 	22	 
	SECTION 5.05. No Waiver; Cumulative Remedies
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI Obligations Absolute; Waivers
	 	 	23	 
	SECTION 6.01. Liability of the Pledgors Absolute
	 	 	23	 
	SECTION 6.02. General Waivers
	 	 	25	 
	SECTION 6.03. California Waivers
	 	 	25	 
	 
	 	 	 	 
	ARTICLE VII Miscellaneous
	 	 	26	 
	SECTION 7.01. Concerning Collateral Agent
	 	 	26	 
	SECTION 7.02. Collateral Agent May Perform; Collateral Agent Appointed
Attorney-in-Fact
	 	 	27	 
	SECTION 7.03. Expenses
	 	 	27	 
	SECTION 7.04. Indemnity
	 	 	28	 
	SECTION 7.05. Continuing Security Interest; Assignment
	 	 	28	 
	SECTION 7.06. Termination; Release
	 	 	29	 
	SECTION 7.07. Modification in Writing
	 	 	29	 
	SECTION 7.08. Notices
	 	 	29	 
	SECTION 7.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	29	 
	SECTION 7.10. WAIVER OF JURY TRIAL
	 	 	30	 
	SECTION 7.11. Severability of Provisions
	 	 	30	 
	SECTION 7.12. Execution in Counterparts
	 	 	31	 
	SECTION 7.13. Business Days
	 	 	31	 
	SECTION 7.14. No Credit for Payment of Taxes or Imposition
	 	 	31	 
	SECTION 7.15. No Claims Against Collateral Agent
	 	 	31	 
	SECTION 7.16. No Release Under Agreements; No Liability of Collateral Agent or
Secured Parties
	 	 	31	 
	SECTION 7.17. Obligations Absolute
	 	 	32	 
	SECTION 7.18. Marshaling; Payments Set Aside
	 	 	32	 
	SECTION 7.19. Release of Pledgors
	 	 	32	 

 

ii

 

SECURITY AGREEMENT

This SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to
time, this “Agreement”), dated as of March 9, 2011, is made by HERBALIFE INTERNATIONAL,
INC., a Nevada corporation (the “Company”); EACH OF THE SUBSIDIARIES LISTED ON THE
SIGNATURE PAGES HERETO OR FROM TIME TO TIME BECOMING A PARTY HERETO BY EXECUTION OF A JOINDER
AGREEMENT (together with the Company and each other Subsidiary Guarantor from time to time
executing a Guaranty (defined herein) as required hereunder, the “Domestic Guarantors”), as
pledgors and collateral assignors (in such capacities, the “Pledgors”), in favor of BANK OF
AMERICA, N.A. (“Bank of America”), in its capacity as administrative agent (in such
capacity and together with any successors in such capacity, the “Administrative Agent”) and
as pledgee, collateral agent and secured party (in such capacities and together with any successors
in such capacities, “Collateral Agent”) for the lending institutions from time to time
party to the Credit Agreement referred to below (such lending institutions, collectively, the
“Lenders”).

WITNESSETH:

WHEREAS, simultaneously herewith, the Company, Herbalife Ltd., a Cayman Islands exempted
company with limited liability (“Holdings”), Herbalife International Luxembourg S.à.r.l., a
Luxembourg private limited liability company, having its registered office at 18, boulevard Royal,
L-2449 Luxembourg, having a share capital of EUR 25,000, registered with the Luxembourg trade and
companies register under number B 88.006 (“HIL”, and together with the Company and
Holdings, the “Borrowers”), the Lenders and the Administrative Agent have entered into that
certain Credit Agreement, dated as of the date hereof (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), whereby the Lenders have
agreed to make Loans and to issue Credit Agreement L/Cs to or for the account of the Borrowers;

WHEREAS, simultaneously herewith, (a) the Company has entered into that certain Guaranty,
dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to
time, the “Company Guaranty”), whereby the Company has agreed to Guarantee the obligations
of Holdings and HIL under the Credit Agreement and (b) the Domestic Guarantors (other than the
Company) have entered into that certain Guaranty, dated as of the date hereof (as amended,
restated, supplemented or otherwise modified from time to time, the “Domestic Subsidiary
Guaranty”, and collectively with the Company Guaranty, the Holdings Guaranty, the HIL Guaranty,
and the Foreign Subsidiary Guaranty, the “Guaranties”), whereby such Guarantors have agreed
to Guarantee the obligations of the Loan Parties under the Credit Agreement and under the Secured
Hedge Agreements and Secured Cash Management Agreements referred to below;

WHEREAS, in accordance with the Credit Agreement, it is contemplated that one or more of the
Pledgors and other Loan Parties have entered or may enter into one or more Swap Contracts (each, a
“Secured Hedge Agreement”) with one or more of the Lenders or their respective Affiliates
(collectively, the “Hedge Banks”);

 

 

 

WHEREAS, in accordance with the Credit Agreement, it is contemplated that one or more of the
Pledgors and other Loan Parties may enter into one or more Cash Management Agreements (each, a
“Secured Cash Management Agreement”) with one or more of the Lenders or their respective
Affiliates (collectively, the “Cash Management Banks”);

WHEREAS, each Pledgor will receive substantial benefits from the execution, delivery and
performance of the Loan Documents, the Secured Hedge Agreements and the Secured Cash Management
Agreements and each is, therefore, willing to enter into this Agreement;

WHEREAS, each Pledgor is or will be the legal or beneficial owner of the rights in the
Security Agreement Collateral (defined below) to be pledged by it hereunder;

WHEREAS, it is a condition precedent to the obligations of the Lenders to make Loans under the
Credit Agreement, of the Hedge Banks to enter into Secured Hedge Agreements, of the Cash Management
Banks to enter into Secured Cash Management Agreements and of the L/C Issuer to issue Letters of
Credit (as defined in the Credit Agreement, the “Credit Agreement L/Cs”), that each Pledgor
execute and deliver the applicable Loan Documents, including this Agreement; and

WHEREAS, this Agreement is given by each Pledgor in favor of Collateral Agent for its benefit
and the benefit of the Administrative Agent, the Lenders, the Hedge Banks and the Cash Management
Banks (collectively, the “Secured Parties”) to secure the payment and performance of all of
the Secured Obligations (defined below).

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Pledgors and
Collateral Agent hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION; PERFECTION CERTIFICATE

SECTION 1.01. Definitions. (a) The following capitalized terms have the meanings
assigned to them in the UCC:

“Account,” “Bank,” “Certificate of Title,” “Chattel Paper,”
“Commercial Tort Claim,” “Commodity Account,” “Commodity Contract,”
“Commodity Intermediary,” “Contract,” “Document,” “Electronic Chattel
Paper,” “Entitlement Holder,” “Entitlement Order,” “Equipment,”
“Financial Asset,” “Fixtures,” “General Intangible,” “Goods,”
“Inventory,” “Investment Property,” “Letter-of-Credit Right,” “Letter
of Credit,” “Money,” “Proceeds,” “Record,” “Securities
Entitlement,” “Securities Intermediary,” “Supporting Obligation,” and
“Tangible Chattel Paper.”

 

2

 

(b) Capitalized terms used in this Agreement (including the preamble and recitals hereof) but
not otherwise defined herein have the meanings assigned to such terms in the Credit Agreement. In
this Agreement:

“Administrative Agent” has the meaning assigned to such term in the preamble
hereof.

“Agreement” has the meaning assigned to such term in the preamble hereof.

“Borrowers” has the meaning assigned to such term in the preamble hereof.

“Cash Management Banks” has the meaning assigned to such term in the recitals hereof.

“Charges” mean any and all property and other taxes, assessments and special
assessments, levies, fees and all governmental charges imposed on or assessed against, and all
claims (including landlords’, carriers’, mechanics’, workmen’s, repairmen’s, laborers’,
materialmen’s, suppliers’ and warehousemen’s Liens and other claims arising by operation of law)
against, all or any portion of the Security Agreement Collateral.

“Collateral Account” shall mean any account established and maintained in accordance
with Article IX of the Credit Agreement, and all funds from time to time on deposit in such
account, including all cash equivalents, and all certificates and instruments from time to time
representing or evidencing such cash equivalents.

“Collateral Agent” has the meaning assigned to such term in the preamble
hereof.

“Collateral Records” means books, records, ledger cards, files, correspondence,
customer lists, blueprints, technical specifications, manuals, computer software, computer
printouts, tapes, disks and related data processing software and similar items that at any time
evidence or contain information relating to any of the Security Agreement Collateral or are
otherwise necessary or helpful in the collection thereof or realization thereupon.

“Collateral Support” means all property (real or personal) assigned, hypothecated or
otherwise securing any Security Agreement Collateral, including any Collateral Agreement.

“Company” has the meaning assigned to such term in the preamble hereof.

“Company Guaranty” has the meaning assigned to such term in the recitals hereof.

“Control Agreement” means an agreement in form and substance satisfactory to
Collateral Agent sufficient to establish control over any applicable Investment Property (including
any Securities Account or Commodity Account) or Deposit Account.

“Copyrights” mean, collectively, with respect to each Pledgor, all copyrights (whether
statutory or common law and whether established or registered in the United States or any other
country) now owned or hereafter created or acquired by or assigned to such Pledgor, whether
published or unpublished, and all copyright registrations and applications made by such Pledgor,
including the copyrights, registrations and applications listed in Section II.H of the Perfection
Certificate, together with any and all (a) rights and privileges arising under applicable law with
respect to such Pledgor’s use of any copyrights, (b) reissues, renewals, continuations and
extensions thereof, (c) income, fees, royalties, damages, claims and payments now or hereafter due
or payable with respect thereto, including damages and payments for past, present or future
infringements thereof, (d) rights corresponding thereto throughout the world and (e) rights to
sue for past, present or future infringements thereof.

 

3

 

“Credit Agreement” has the meaning assigned to such term in the recitals hereof.

“Credit Agreement L/C” has the meaning assigned to such term in the recitals
hereof.

“Deposit Account” means, collectively, with respect to each Pledgor, (a) all “deposit
accounts” as such term is defined in the UCC and in any event shall include the L/C Sub-Account and
all accounts and sub-accounts relating to any of the foregoing accounts, and (b) all cash, funds,
checks, notes and any instruments from time to time on deposit in any of the accounts or
sub-accounts described in clause (a) of this definition.

“Distributions” mean, collectively, with respect to each Pledgor, all dividends, cash,
options, warrants, rights, instruments, distributions, returns of capital or principal, income,
interest, profits and other property, interests (debt or equity) or proceeds, including as a result
of a split, revision, reclassification or other like change of the Pledged Equity Interests, from
time to time received, receivable or otherwise distributed to such Pledgor in respect of or in
exchange for any or all of the Pledged Equity Interests or Pledged Intercompany Debt.

“Documents Evidencing Goods” means all Documents evidencing, representing or issued in
connection with Goods.

“Domestic Guarantor” has the meaning assigned to such term in the preamble
hereof.

“Domestic Subsidiary Guaranty” has the meaning assigned to such term in the recitals
hereof.

“Guaranty” has the meaning assigned to such term in the recitals hereof.

“Hedge Banks” has the meaning assigned to such term in the recitals hereof.

“HIL” has the meaning assigned to such term in the recitals hereof.

“Holdings” has the meaning assigned to such term in the recitals hereof.

“Indemnified Liabilities” has the meaning assigned to such term in Section
7.04(a).

“Indemnitees” has the meaning assigned to such term in Section 7.04(a).

“Instruments” mean, collectively, with respect to each Pledgor, all “instruments,” as
such term is defined in Article 9, rather than Article 3, of the UCC to the extent such instruments
evidence any amounts payable under or in connection with any item of Security Agreement Collateral
or such instruments constitute Proceeds of any item of Security Agreement Collateral, and in any
event shall include all promissory notes, drafts, bills of exchange or acceptances.

 

4

 

“Insurance” means all insurance policies covering any or all of the Security Agreement
Collateral (regardless of whether Collateral Agent is the loss payee thereof), and all key-man life
insurance policies.

“Intellectual Property” means, collectively, with respect to each Pledgor, (a) all
Patents, (b) all Trademarks, (c) all Copyrights, (d) all Licenses and (e) the goodwill connected
with such Pledgor’s business including (i) all goodwill connected with the use of and symbolized by
any of the Intellectual Property in which such Pledgor has any interest and (ii) all know-how,
trade secrets, customer and supplier lists, proprietary information, inventions, methods,
procedures, formulae, descriptions, compositions, technical data, drawings, specifications, name
plates, catalogs, confidential information and the right to limit the use or disclosure thereof by
any Person or entity, pricing and cost information, business and marketing plans and proposals,
consulting agreements, engineering contracts and such other assets that relate to such goodwill.

“Intercompany Indebtedness” means Indebtedness (whether or not evidenced by a writing)
of any Borrower or any Subsidiary thereof (including any Pledgor) payable to a Pledgor.

“Issuer” means any issuer of any Pledged Equity Interests.

“Lenders” has the meaning assigned to such term in the preamble hereof.

“Licenses” mean, collectively, with respect to each Pledgor, all license and
distribution agreements, covenants not to sue or any other agreement with any other party with
respect to any Patent, Trademark or Copyright, whether such Pledgor is a licensor or licensee,
distributor or distributee under any such license or distribution agreement, together with any and
all (a) renewals, extensions, supplements and continuations thereof; (b) income, fees, royalties,
damages, claims and payments now and hereafter due or payable thereunder and with respect thereto,
including damages and payments for past, present or future infringements or violations thereof; (c)
rights to sue for past, present and future infringements or violations thereof; and (d) any other
rights to use, exploit or practice any or all of the Patents, Trademarks or Copyrights.

“Material Contract” means any Contract or other arrangement that any Pledgor is a
party to and for which breach, nonperformance, cancellation or failure to renew could reasonably be
expected to have a Material Adverse Effect.

“Non-payment Contract” means any Contract or agreement to which any Pledgor is a party
other than a contract whereby the account debtor’s principal obligation is a monetary obligation;
provided that, Non-payment Contracts shall not include Receivables.

“Patents” mean, collectively, with respect to each Pledgor, all patents issued or
assigned to and all patent applications made by such Pledgor (whether established or registered or
recorded in the United States or any other country), including the patents, patent applications and
recordings listed Section II.H of the Perfection Certificate, together with any and all (a) rights
and privileges arising under applicable law with respect to such Pledgor’s use of any patents; (b)
inventions and improvements described and claimed therein; (c) reissues, divisions, continuations,
renewals, extensions and continuations-in-part thereof; (d) income, fees, royalties, damages,
claims and payments now or hereafter due or payable thereunder and with respect thereto including
damages and payments for past, present or future infringements thereof; (e)
rights corresponding thereto throughout the world; and (f) rights to sue for past, present or
future infringements thereof.

 

5

 

“Pledged Equity Interests” mean, collectively, with respect to each Pledgor, (a) the
issued and outstanding Equity Interests of each Person; and (b) all rights, privileges, authority
and powers of such Pledgor in and to each such Person or under the Organization Documents of each
such Person, and the certificates, instruments and agreements representing the Pledged Equity
Interests and any and all interest of such Pledgor in the entries on the books of any financial
intermediary pertaining to the Pledged Equity Interests, it being understood that, subject to
Section 6.13 of the Credit Agreement, Pledged Equity Interests do not include any Equity Interests
in excess of 66.0% of the Equity Interests of any Foreign Subsidiary.

“Pledged Intercompany Debt” means, with respect to each Pledgor, all Intercompany
Indebtedness payable to such Pledgor by any Borrower or any Subsidiary thereof (and each other
intercompany note hereafter acquired by such Pledgor) and all Intercompany Notes, certificates,
Instruments or agreements evidencing such Intercompany Indebtedness, and all assignments,
amendments, restatements, supplements, extensions, renewals, replacements or modifications thereof.

“Pledgor” has the meaning assigned to such term in the preamble hereof.

“Receivables” means all rights to payment, whether or not earned by performance, for
Goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services
rendered or to be rendered, including all such rights constituting or evidenced by any Account,
Chattel Paper, Instrument, General Intangible or Investment Related Property, together with all
rights, if any, in any Goods or other property giving rise to such right to payment and all
Collateral Support and Supporting Obligations related thereto and all Accounts, Chattel Paper,
General Intangibles, Instruments and Receivables Records.

“Receivables Records” means (a) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables; (b) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers
relating to Receivables, including all tapes, cards, computer tapes, computer discs, computer runs,
record keeping systems and other papers and documents relating to the Receivables, whether in the
possession or under the control of any Pledgor or any computer bureau or agent from time to time
acting for any Pledgor or otherwise; (c) all evidences of the filing of financing statements and
the registration of other instruments in connection therewith, and amendments, supplements or other
modifications thereto, notices to other creditors or secured parties, and certificates,
acknowledgments, or other writings, including lien-search reports, from filing or other
registration officers; (d) all credit information, reports and memoranda relating thereto; and (e)
all other written or nonwritten forms of information related in any way to the foregoing.

“Secured Cash Management Agreement” has the meaning assigned to such term in the
recitals hereof.

“Secured Hedge Agreement” has the meaning assigned to such term in the recitals
hereof.

 

6

 

“Secured Obligations” means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect
to any Loan, Letter of Credit, Secured Cash Management Agreement or Secured Hedge Agreement,
whether direct or indirect (including those acquired by assumption), absolute or contingent, due or
to become due, now existing or hereafter arising and including interest and fees that accrue after
the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any
Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such
interest and fees are allowed claims in such proceeding.

“Secured Parties” has the meaning assigned to such term in the recitals
hereof.

“Securities Account” has the meaning assigned to such term in the UCC; provided that,
the Collateral Account shall be treated as a Securities Account.

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

“Securities Collateral” means, collectively, the Pledged Equity Interests, the Pledged
Intercompany Debt and the Distributions.

“Security Agreement Collateral” has the meaning assigned to such term in Section
2.01.

“Software Embedded in Goods” means, with respect to any Goods, any computer program
embedded in such Goods and any supporting information provided in connection with a transaction
relating to such program if (a) the program is customarily considered part of such Goods or (b) by
becoming the owner of such Goods a Person acquires a right to use such program in connection
therewith.

“Trademarks” mean, collectively, with respect to each Pledgor, all trademarks
(including service marks), slogans, logos, certification marks, domain names, trade dress,
corporate names and trade names, whether registered or unregistered, owned by or assigned to such
Pledgor and all registrations and applications for the foregoing (whether statutory or common law
and whether established or registered in the United States or any other country) including the
registrations and applications listed in Section II.H of the Perfection Certificate, together with
any and all (a) rights and privileges arising under applicable law with respect to such Pledgor’s
use of any trademarks; (b) reissues, continuations, extensions and renewals thereof; (c) income,
fees, royalties, damages and payments now and hereafter due or payable thereunder and with respect
thereto, including damages, claims and payments for past, present or future infringements thereof;
(d) rights corresponding thereto throughout the world; and (e) rights to sue for past, present and
future infringements thereof.

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York; provided that, if by reason of mandatory provisions of law, the perfection or the effect
of perfection or nonperfection of the security interest in any item or portion of the Security
Agreement Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction
other than the State of New York, “UCC” also means the Uniform Commercial Code as in effect
in such other jurisdiction for purposes of the provisions hereof relating to such perfection or
effect of perfection or nonperfection.

 

7

 

SECTION 1.02. Interpretation. The rules of interpretation specified in the Credit
Agreement, including Sections 1.02 thereof, shall be applicable to this Agreement. If any conflict
or inconsistency exists between this Agreement and the Credit Agreement, the Credit Agreement shall
govern.

SECTION 1.03. Perfection Certificate. Collateral Agent and each Pledgor agree that
the Perfection Certificate and all descriptions of Security Agreement Collateral, schedules,
amendments and supplements thereto are and shall at all times remain a part of this Agreement.

ARTICLE II

GRANT OF SECURITY AND SECURED OBLIGATIONS

SECTION 2.01. Pledge. As collateral security for the payment and performance in full
of all the Secured Obligations, each Pledgor hereby grants to Collateral Agent, for its benefit and
for the benefit of the Secured Parties, a security interest in and continuing lien on all personal
property of such Pledgor, including all of such Pledgor’s right, title and interest in, to and
under all of the following property, wherever located, whether now owned or existing, or hereafter
arising or acquired from time to time (collectively, the “Security Agreement Collateral”):

(i) all Accounts;

(ii) all Chattel Paper;

(iii) all Commercial Tort Claims;

(iv) all Deposit Accounts;

(v) all Documents;

(vi) all General Intangibles;

(vii) all Goods (including, in any event, Equipment, Fixtures, Inventory, Documents
Evidencing Goods and Software Embedded in Goods);

(viii) all Instruments;

(ix) all Insurance;

(x) all Intellectual Property;

(xi) all Investment Property and Financial Assets;

(xii) all Letters of Credit and Letter-of-Credit Rights;

(xiii) all Material Contracts and Non-payment Contracts;

(xiv) all Money;

 

8

 

(xv) all Receivables;

(xvi) all Securities Collateral;

(xvii) all books and Records relating to any and/or all of the foregoing;

(xviii) to the extent not otherwise included above, all Collateral Records, Collateral
Support and Supporting Obligations relating to any and/or all of the foregoing; and

(xix) to the extent not otherwise included above, all other personal property and all
Proceeds and products of, accessions and additions to, profits and rents from, and
replacements for or in respect of any of the foregoing;

it being understood that, subject to the other provisions hereof and of the Credit Agreement, the
foregoing grant of a security interest shall not diminish any Pledgor’s exclusive right and license
to use, or grant to other Persons license or sublicenses in, the Intellectual Property.

SECTION 2.02. Certain Limited Exclusions. Notwithstanding anything herein to the
contrary, in no event shall the security interest granted under Section 2.01(a) attach to,
and the Security Agreement Collateral shall not include:

(a) any agreement to which any Pledgor is a party to the extent that the collateral
assignment thereof or the creation of a security interest therein would constitute a breach
of the terms of such agreement, or would permit any party to such agreement to terminate
such agreement, in each case as entered into by the applicable Pledgor; provided that, any
of the agreements excluded in accordance with the foregoing shall cease to be so excluded
(x) to the extent such term is, or would be (in the case of after-acquired property or
changes to applicable law), rendered ineffective under Sections 9-406, 9-407, 9-408 or 9-409
of the UCC of any relevant jurisdiction (or any successor provision) or any other applicable
law (including any Debtor Relief Law) or principles of equity; or (y) if the applicable
Pledgor has obtained all of the consents of the other parties to such agreement necessary
for the collateral assignment of, or creation of a security interest in, such agreement;

(b) any property or asset hereafter acquired by any Pledgor that is subject to a Lien
permitted to be incurred pursuant to Sections 7.01(b), (h), (j) and (k) of the Credit
Agreement, solely to the extent that the documents evidencing such Lien prohibit the grant
of a security interest in or Lien on such property or asset; provided that, upon such
property or asset no longer being subject to such Lien or prohibition, such property or
asset shall (without any act or delivery by any Person) constitute Security Agreement
Collateral hereunder;

(c) subject to Section 6.13 of the Credit Agreement, more than 66.0% of the Equity
Interests of any Foreign Subsidiary; or

(d) any Equity Interests of Foreign Subsidiaries if the grant of a security interest
therein pursuant to this Agreement is prohibited by operation of applicable law.

 

9

 

Collateral Agent agrees that, at any Pledgor’s reasonable request and expense, it will provide such
Pledgor confirmation that the assets described in this Section 2.02 are in fact excluded
from the Security Agreement Collateral.

SECTION 2.03. Secured Obligations; Continuing Liability. (a) Security for
Obligations. This Agreement secures, and the Security Agreement Collateral is collateral
security for, the payment and performance in full when due of all the Secured Obligations.

(b) Continuing Liability under Security Agreement Collateral. Notwithstanding
anything herein to the contrary, (i) each Pledgor shall remain liable under each of the obligations
and agreements included in the Security Agreement Collateral, including any obligations or
agreements relating to any Pledged Equity Interests, to perform all of the obligations undertaken
by it thereunder, all in accordance with the terms and provisions thereof, and neither Collateral
Agent nor any Secured Party shall have any obligation or liability (x) under any of such agreements
by reason of this Agreement or any other document relating hereto, or (y) to make any inquiry
regarding the nature or sufficiency of any payment received by it, or have any obligation to take
any action to collect or enforce any rights under any agreement included in the Security Agreement
Collateral, including any agreements relating to any Pledged Equity Interests; (ii) the exercise by
Collateral Agent of any of its rights hereunder shall not release any Pledgor from any of its
duties or obligations under the contracts and agreements included in the Security Agreement
Collateral; and (iii) nothing herein is intended to or shall be a delegation of duties to
Collateral Agent or any other Secured Party.

ARTICLE III

PERFECTION; SUPPLEMENTS; FURTHER ASSURANCES; USE OF

SECURITY AGREEMENT COLLATERAL

SECTION 3.01. Delivery of Certificated Pledged Equity Interests. All certificates,
agreements or instruments representing or evidencing the Pledged Equity Interests, to the extent
not previously delivered to Collateral Agent, shall promptly upon receipt thereof by any Pledgor be
delivered to and held by or on behalf of Collateral Agent pursuant hereto. All certificated
Pledged Equity Interests shall be in suitable form for transfer by delivery or shall be accompanied
by duly executed instruments of transfer or assignment in blank, all in form and substance
satisfactory to Collateral Agent. Collateral Agent shall have the right, at any time upon the
occurrence and during the continuance of any Event of Default, to endorse, assign or otherwise
transfer to or to register in the name of Collateral Agent or any of its nominees or endorse for
negotiation any or all of Pledged Equity Interests, without any indication that such Pledged Equity
Interests are subject to the security interest hereunder. In addition, Collateral Agent shall have
the right, at any time upon the occurrence and during the continuance of any Event of Default, to
exchange certificates representing or evidencing Pledged Equity Interests for certificates of
smaller or larger denominations.

 

10

 

SECTION 3.02. Perfection of Uncertificated Pledged Equity Interests. If any Issuer of
Pledged Equity Interests is organized in a jurisdiction that does not permit the use of
certificates to evidence equity ownership, or if any of the Pledged Equity Interests are at any
time not evidenced by certificates of ownership, then each applicable Pledgor shall, to the extent
permitted by applicable law, record such pledge on the equityholder register or the books of the
Issuer.

SECTION 3.03. Financing Statements and Other Filings. Each Pledgor agrees that at any
time and from time to time, at the sole cost and expense of the Pledgors, it will execute and file
and refile (in accordance with Section 3.04), or permit Collateral Agent to file and
refile, such financing statements, continuation statements and other documents (including this
Agreement), in form acceptable to Collateral Agent, in such offices as Collateral Agent may deem
necessary or appropriate, wherever required by law to perfect, continue and maintain a valid,
enforceable, first-priority security interest in the Security Agreement Collateral as provided
herein and to preserve the other rights and interests granted to Collateral Agent hereunder, as
against third parties, with respect to any Security Agreement Collateral. The foregoing
notwithstanding, so long as no Event of Default has occurred and is continuing, the Pledgors’
obligations hereunder to reimburse the Collateral Agent or the other Secured Parties for any
filings or recordations contemplated hereby shall be limited to the reimbursement of costs and
expenses reasonably incurred in connection with the filing and recordation of UCC financing
statements and continuation statements.

SECTION 3.04. Other Actions. To further ensure the attachment, perfection and
priority of, and the ability of Collateral Agent to enforce, Collateral Agent’s security interest
in the Security Agreement Collateral, each Pledgor acknowledges and agrees as follows:

(a) UCC Financing Statements. Each Pledgor hereby irrevocably authorizes
Collateral Agent at any time and from time to time to file in any relevant jurisdiction any
financing statements (including fixture filings), continuation statements, and amendments
thereto that contain the information required by Article 9 of the UCC of each applicable
jurisdiction for the filing of any financing statement or amendment, including (i) whether
the Pledgor is an organization, the type of organization and any organizational
identification number issued to such Pledgor and (ii) in the case of a financing statement
filed as a fixture filing, a sufficient description of the real property to which such
Security Agreement Collateral relates. The Pledgor agrees to provide such information to
Collateral Agent promptly upon request. Such financing statements or amendments may
describe the Security Agreement Collateral as “all assets” or “all personal property,
whether now owned or hereafter acquired,” or in any other manner that Collateral Agent, in
its sole discretion, deems necessary, advisable or prudent to ensure the perfection of the
security interests granted hereunder. Each Pledgor hereby ratifies its authorization for
Collateral Agent to file in any relevant jurisdiction any financing statements or amendments
thereto if filed prior to the date hereof.

(b) Commercial Tort Claims. If any Pledgor shall at any time hold or acquire a
Commercial Tort Claim relating to any of the Security Agreement Collateral and such Pledgor,
in the exercise of its reasonable business judgment, elects to pursue such commercial tort
claim, such Pledgor shall contemporaneously with the delivery of
financial statements in accordance with Section 6.01(a) or (b) of the Credit Agreement
notify Collateral Agent in writing signed by such Pledgor of the brief details thereof and
grant to Collateral Agent in such writing a security interest therein and in the Proceeds
thereof, all in accordance with this Agreement, with such writing to be in form and
substance satisfactory to Collateral Agent.

 

11

 

SECTION 3.05. Supplements; Further Assurances. (a) The Pledgors shall cause each
Person that, from time to time after the date hereof, shall be required to pledge any assets to
Collateral Agent for the benefit of the Secured Parties pursuant to the provisions of the Credit
Agreement, to execute and deliver to Collateral Agent a Joinder Agreement and, upon such execution
and delivery, such Person shall constitute a “Guarantor” and a “Pledgor” for all purposes hereunder
with the same force and effect as if originally named as a Guarantor and Pledgor herein. The
execution and delivery of such Joinder Agreement shall not require the consent of any Pledgor
hereunder. The rights and obligations of each Pledgor hereunder shall remain in full force and
effect notwithstanding the addition of any new Guarantor and Pledgor as a party to this Agreement.

(b) Upon obtaining any Pledged Equity Interests of any Person, each Pledgor shall accept the
same in trust for the benefit of Collateral Agent and contemporaneously with the delivery of
financial statements in accordance with Section 6.01(a) or (b) of the Credit Agreement deliver to
Collateral Agent the certificates and other documents required under this Article III in
respect of the additional Pledged Equity Interests that is to be pledged pursuant to this
Agreement, and confirming the attachment of the Lien hereby created on and in respect of such
additional Pledged Equity Interests.

(c) Subject to Section 6.13 of the Credit Agreement, each Pledgor agrees to take such further
actions, and to execute and deliver to Collateral Agent such additional assignments, agreements,
supplements, powers and instruments, as Collateral Agent may in its reasonable judgment deem
necessary or appropriate, to perfect, preserve and protect the security interest in the Security
Agreement Collateral as provided herein and the rights and interests granted to Collateral Agent
hereunder, to carry into effect the purposes hereof or to better assure and confirm unto Collateral
Agent or permit Collateral Agent to exercise and enforce its rights, powers and remedies hereunder
with respect to any Security Agreement Collateral. By way of example, such actions may include
appearing in and defending any action or proceeding, at Collateral Agent’s request, that may affect
such Pledgor’s title to or Collateral Agent’s security interest in all or any part of the Security
Agreement Collateral. Upon the reasonable request of Collateral Agent, each Pledgor shall further
make, execute, endorse, acknowledge, file or refile or deliver to Collateral Agent from time to
time such lists, descriptions and designations of the Security Agreement Collateral, copies of
warehouse receipts, receipts in the nature of warehouse receipts, bills of lading, documents of
title, vouchers, invoices, schedules, confirmatory assignments, supplements, additional security
agreements, conveyances, financing statements, transfer endorsements, powers of attorney,
certificates, reports and other assurances or instruments. If an Event of Default has occurred and
is continuing, Collateral Agent may institute and maintain, in its own name or in the name of any
Pledgor, such suits and proceedings as Collateral Agent deems necessary or expedient to prevent any
impairment of the security interest in or the perfection thereof in the Security Agreement
Collateral. All of the foregoing shall be at the sole cost and expense of the Pledgors.

 

12

 

(d) For the avoidance of doubt, the Pledgors and Collateral Agent acknowledge that this
Agreement is intended to grant to Collateral Agent, for the benefit of the Secured Parties, a
security interest in and continuing Lien on the Security Agreement Collateral, and does not
constitute a present assignment of ownership rights, a transfer of ownership or title to any
Security Agreement Collateral, except as otherwise provided herein following the occurrence and
during the continuance of an Event of Default. Unless an Event of Default shall have occurred and
be continuing, Collateral Agent agrees from time to time to deliver, upon written request of any
Pledgor and at such Pledgor’s sole cost and expense (including reasonable expenses of counsel to,
among other things, review the effect thereof on Collateral Agent’s security interest granted
hereunder), any and all instruments, certificates or other documents, in a form reasonably
requested by such Pledgor, necessary or appropriate in the reasonable judgment of such Pledgor to
enable such Pledgor to continue to exploit, license, use and protect the Security Agreement
Collateral in accordance with the terms hereof and of the Credit Agreement.

ARTICLE IV

REPRESENTATIONS, WARRANTIES AND COVENANTS

Each Pledgor represents, warrants and covenants as follows:

SECTION 4.01. Title. Except for the security interest granted to Collateral Agent for
its benefit and for the benefit of the Secured Parties pursuant to this Agreement and Permitted
Liens, such Pledgor owns the rights in each item of Security Agreement Collateral pledged by it
hereunder, and with regard to each item of Security Agreement Collateral now existing or hereafter
acquired, will continue to own or have such rights, in each case free and clear of any and all
Liens or claims of others. No effective financing statement or other public notice with respect to
all or any part of the Security Agreement Collateral is on file or of record in any public office,
except such as have been filed in favor of Collateral Agent pursuant to this Agreement, are
permitted by the Credit Agreement, or for which proper termination statements or other release
documentation have been (or, in the case of financing statements or other public notices filed in
connection with the Existing Credit Agreement, will be) delivered to Collateral Agent for filing.
No Person other than Collateral Agent has control or possession of all or any part of the Security
Agreement Collateral, except as permitted hereby or by the Credit Agreement.

SECTION 4.02. Organization; Authority; Enforceability. Such Pledgor (a) is duly
organized or incorporated and, except prior to the satisfaction of the covenant set forth in
Section 6.16 of the Credit Agreement in the case of Herbalife Taiwan, validly existing under the
laws of the jurisdiction of its organization or incorporation, (b) has all requisite power and
authority enter into this Agreement and to carry out the obligations hereunder, and (c) has duly
executed and delivered this Agreement. This Agreement and each other document, statement, or
instrument relating hereto, when executed and delivered by such Pledgor, will constitute, a legal,
valid and binding obligation of such Pledgor, enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

 

13

 

SECTION 4.03. Authorizations and Approvals. No authorization, approval or other
action by, and no notice to or filing with, any Governmental Authority is required for either (i)
the pledge or grant by such Pledgor of the Liens purported to be created in favor of Collateral
Agent hereunder, or (ii) the exercise by Collateral Agent of any rights or remedies in respect of
any Security Agreement Collateral, in each case except for (a) the filings and registrations
contemplated under the Collateral Documents, including filings necessary to perfect (or, in the
case of equity interests of Foreign Subsidiaries, create or enforce) Liens created under the Loan
Documents, and as may be required in connection with the disposition of any Securities Collateral
(by laws generally affecting the offering and sale of securities) or by laws pertaining to
Intellectual Property, (b) the authorizations, approvals, actions, notices and filings listed on
Schedule 5.03 of the Credit Agreement, all of which have been duly obtained, taken, given
or made and are in full force and effect, and (c) consents, approvals, registrations, filings or
actions the failure of which to obtain or perform could not reasonably be expected to result in a
Material Adverse Effect.

SECTION 4.04. Reserved.

SECTION 4.05. Limitation on Liens. Such Pledgor shall, at its own cost and expense,
defend title to the Security Agreement Collateral pledged by it hereunder and the security interest
therein and Lien thereon granted to Collateral Agent against all claims and demands of all Persons,
at its own cost and expense, at any time claiming (except to the extent related to a Permitted
Lien) any interest therein adverse to Collateral Agent or any other Secured Party.

SECTION 4.06. Other Financing Statements. So long as any of the Secured Obligations
remain unpaid, or the Commitments of the Lenders to make any Loan or to issue any Credit Agreement
L/Cs shall not have expired or been sooner terminated, such Pledgor shall not execute, authorize or
permit to be filed in any public office any financing statement (or similar statement or instrument
of registration under the law of any jurisdiction) or statements relating to any Security Agreement
Collateral, except, in each case, financing statements filed or to be filed in respect of and
covering the security interests granted by such Pledgor to the holder of Permitted Liens.

SECTION
4.07. Chief Executive Office; Change of Name; Jurisdiction of Organization. (a) As of the Closing Date, such Pledgor’s exact legal name, type and jurisdiction of
organization or incorporation, federal taxpayer and organizational identification numbers of such
Pledgor (if applicable) is set forth in the Perfection Certificate, and its chief executive office
is set forth in the Perfection Certificate. Such Pledgor shall not (i) change its corporate name,
(ii) change its identity or type of organization or corporate structure, or (iii) change its
federal taxpayer identification number or organizational identification number (including by
merging with or into any other entity, reorganizing, dissolving, liquidating, reincorporating or
incorporating in any other jurisdiction) unless (A) it shall have given Collateral Agent not less
than 30 days’ prior written notice of its intention so to do, clearly describing such change and
providing such other information in connection therewith as Collateral Agent may request, and (B)
with respect to such change, such Pledgor shall have taken all action that Collateral Agent deems
necessary or desirable to maintain the perfection of the security interest of Collateral Agent for
the benefit of the Secured Parties in the Security Agreement Collateral intended to be granted
hereby. Each
Pledgor agrees to promptly provide Collateral Agent with certified organizational documents
reflecting any of the changes described in the preceding sentence.

 

14

 

(b) Such Pledgor agrees to maintain, at its own cost and expense, such complete and accurate
records with respect to the Security Agreement Collateral owned by it as is consistent with its
current practices and in accordance with such prudent and standard practices used in industries
that are the same as or similar to those in which such Pledgor is engaged, but in any event to
include complete accounting records as required by the Credit Agreement, and, at such time or times
as Collateral Agent may request, promptly to prepare and deliver to Collateral Agent a duly
certified schedule or schedules in form and detail satisfactory to Collateral Agent showing in
summary form the identity, amount and location of any and all Security Agreement Collateral (except
Security Agreement Collateral in the possession or control of Collateral Agent).

SECTION 4.08. Certain Provisions Concerning Securities Collateral. (a) Such Pledgor
has delivered to Collateral Agent true, correct and complete copies of its Organization Documents
with respect to its organization or domestication in any State or territory of the United States,
which are in full force and effect and have not as of the date hereof been amended or modified
except as permitted by the Credit Agreement. Such Pledgor shall deliver to Collateral Agent a copy
of any notice of default given or received by it under any Organization Document within ten days
after such Pledgor gives or receives such notice.

(b) Such Pledgor is not in default in the payment of any portion of any mandatory capital
contribution, if any, required to be made under any agreement to which such Pledgor is a party
relating to the Pledged Equity Interests pledged by it, and such Pledgor is not in violation of any
other provisions of any such agreement to which such Pledgor is a party, or otherwise in default or
violation thereunder, except where such default or noncompliance, individually or in the aggregate,
could not reasonably be expected to have a Material Adverse Effect. No Securities Collateral
pledged by such Pledgor is subject to any defense, offset or counterclaim, nor have any of the
foregoing been asserted or alleged against such Pledgor by any Person with respect thereto, and as
of the date hereof, there are no certificates, instruments, documents or other writings (other than
the Organization Documents and certificates, if any, delivered to Collateral Agent) that evidence
any Pledged Equity Interests of such Pledgor.

(c) So long as no Event of Default shall have occurred and be continuing (and the Borrowers
and such Pledgor have not received written notice relating to such Event of Default from Collateral
Agent):

(i) Such Pledgor shall be entitled to exercise any and all voting and other
consensual rights pertaining to the Securities Collateral or any part thereof for
any purpose not inconsistent with the terms or purposes hereof, the Credit
Agreement, or any other Loan Document evidencing the Secured Obligations; provided
that, such Pledgor shall not in any event exercise such rights in any manner that
would reasonably be expected to have a material adverse effect on the value of the
Security Agreement Collateral or the Lien and security interest intended to be
granted to Collateral Agent hereunder;

 

15

 

(ii) Such Pledgor shall be entitled to receive and retain, and to utilize free
and clear of the Lien hereof, any and all Distributions, but only if and to the
extent made in accordance with the provisions of the Credit Agreement; provided
that, any and all such Distributions consisting of rights or interests in the form
of certificated securities shall be delivered to Collateral Agent to hold as
Security Agreement Collateral and shall, if received by such Pledgor, be received in
trust for the benefit of Collateral Agent, be segregated from the other property or
funds of such Pledgor and be delivered to Collateral Agent as Security Agreement
Collateral in the same form as so received (with any necessary endorsement), in each
case as and when required pursuant to Article III hereof; and

(iii) Without further action or formality, Collateral Agent shall be deemed to
have granted to such Pledgor all necessary consents relating to voting rights and
shall, if necessary, upon written request of such Pledgor and at the sole cost and
expense of the Pledgors, from time to time execute and deliver (or cause to be
executed and delivered) to such Pledgor all such instruments as such Pledgor may
reasonably request to permit such Pledgor to exercise the voting and other rights
that it is entitled to exercise pursuant to Section 4.08(c)(i) and to
receive the Distributions that it is authorized to receive and retain pursuant to
Section 4.08(c)(ii).

(d) Upon the occurrence and during the continuance of any Event of Default (and once any
Borrower or any Pledgor has received written notice relating to such Event of Default from
Collateral Agent):

(i) All rights of such Pledgor to exercise the voting and other consensual
rights it would otherwise be entitled to exercise pursuant to Section
4.08(c)(j) without any action or the giving of any notice shall cease, and all
such rights shall thereupon become vested in Collateral Agent, which shall thereupon
have the sole right to exercise such voting and other consensual rights; and

(ii) All rights of such Pledgor to receive Distributions that it would
otherwise be authorized to receive and retain pursuant to Section
4.08(c)(ii) shall cease and all such rights shall thereupon become vested in
Collateral Agent, who shall thereupon have the sole right to receive and hold as
Security Agreement Collateral such Distributions;

provided that, the rights described in clauses (i) and (ii) above shall revert back
to such Pledgor following the cure or waiver of such Event of Default.

(e) Such Pledgor shall, at its sole cost and expense, from time to time execute and deliver to
Collateral Agent appropriate instruments as Collateral Agent may request to permit Collateral Agent
to exercise the voting and other rights that it may be entitled to exercise pursuant to Section
4.08(d)(i) and to receive all Distributions that it may be entitled to receive under
Section 4.08(d)(ii).

 

16

 

(f) All Distributions that are received by such Pledgor contrary to the provisions of
Section 4.08(d)(ii) shall be received in trust for the benefit of Collateral Agent, shall
be segregated from other funds of such Pledgor and shall promptly be paid over to Collateral Agent
as Security Agreement Collateral in the same form as so received (with any necessary endorsement).

SECTION 4.09. Certain Provisions Concerning Intellectual Property. (a) Such Pledgor
agrees that it will not, nor will it knowingly permit or authorize any of its licensees to, do any
act, or omit to do any act, whereby any issued Patent may become invalidated, dedicated to the
public, or unenforceable, and agrees that it shall continue to mark any products covered by a
Patent with the relevant Patent Number or indication that such product is subject to a pending
Patent application as necessary and sufficient to establish and preserve its maximum rights under
applicable patent laws, except where the failure to so mark would not be reasonably likely to
result in a Material Adverse Effect.

(b) Such Pledgor (either itself or through its licensees or its sublicensees) will, for each
material Trademark, (i) maintain such Trademark in full force free from any claim of abandonment or
invalidity for nonuse, (ii) not materially diminish the value of such Trademark or the goodwill
associated therewith, (iii) display such Trademark with notice of federal or foreign registration
to the extent necessary and sufficient to establish and preserve its maximum rights under
applicable law, except where the failure to display with such notice would not be reasonably likely
to result in a Material Adverse Effect, and (iv) not knowingly use or knowingly permit the use of
such Trademark in violation of any third party rights.

(c) Such Pledgor (either itself or through licensees) will, for each work covered by a
material Copyright, continue to publish, reproduce, display, adopt and distribute the work with
appropriate copyright notice as necessary and sufficient to establish and preserve its maximum
rights under applicable copyright laws, except where the failure to include notice would not be
reasonably likely to result in a Material Adverse Effect.

(d) Such Pledgor shall notify Collateral Agent promptly if it knows or has reason to know that
any Intellectual Property material to such Pledgor’s business (whether individually or in the
aggregate) may become, or knows of circumstances that would cause any such Intellectual Property to
become: (i) abandoned, lost or dedicated to the public; (ii) invalid or unenforceable; or (iii)
subject to any adverse determination or development regarding such Pledgor’s ownership of any
Intellectual Property, its right to register the same, or to keep and maintain the same.

(e) Such Pledgor will take all reasonable steps in the United States Patent and Trademark
Office, United States Copyright Office or any office or agency in any political subdivision of the
United States, Canada or in any other country, to maintain and pursue each application relating to
the Intellectual Property (and to obtain the relevant grant or registration) and to maintain each
issued Patent and each registration of the Trademarks and Copyrights, including timely filings of
applications for renewal, affidavits of use, affidavits of incontestability and payment of
maintenance fees, and to initiate opposition, interference and cancellation proceedings against
third parties, in each case where necessary for the operation of such Pledgor’s business as
presently conducted and as contemplated by the Credit Agreement.

 

17

 

(f) In the event that such Pledgor knows that any Security Agreement Collateral consisting of
Intellectual Property material to the conduct of such Pledgor’s business has been or is about to be
infringed, misappropriated or diluted by a third party, such Pledgor promptly shall notify
Collateral Agent and shall promptly sue for infringement, misappropriation or dilution and to
recover any and all damages for such infringement, misappropriation or dilution, or take such other
actions as are appropriate under the circumstances to protect such Security Agreement Collateral,
except where the failure to so notify or take such actions would not be reasonably likely to result
in a Material Adverse Effect.

(g) Upon the occurrence and during the continuance of an Event of Default, such Pledgor shall
use its commercially reasonable efforts to obtain all requisite consents or approvals by the
licensor of each License to effect the assignment of all of such Pledgor’s right, title and
interest thereunder to the Security Agreement Collateral Agent or its designee.

(h) Solely for the purpose of enabling Collateral Agent to exercise its rights and remedies
upon the occurrence of an Event of Default, such Pledgor hereby grants to Collateral Agent, to the
extent assignable, an irrevocable, nonexclusive license (exercisable without payment of royalty or
other compensation to such Pledgor) to use, license or sublicense any of the Intellectual Property
now owned or hereafter acquired by such Pledgor, wherever the same may be located, including in
such license access to all media in which any of the licensed items may be recorded or stored and
to all computer programs used for the compilation or printout thereof.

(i) Except with the prior consent of Collateral Agent or as permitted under the Credit
Agreement, such Pledgor shall not execute any financing statement or other document or instrument,
and there will not be on file in any public office any effective financing statement or other
document or instruments, except financing statements or other documents or instruments filed or to
be filed in favor of Collateral Agent or in respect of Permitted Liens, and such Pledgor shall not
sell, assign, transfer, license, grant any option in, or create any Lien, claim, security interest
or other encumbrance on or with respect to the Intellectual Property, or suffer to exist any
effective Lien, claim, security interest or other encumbrance on or with respect to the
Intellectual Property, except for the security interest created by and under this Security
Agreement and Permitted Liens as otherwise permitted by the Credit Agreement.

(j) It shall hereafter use commercially reasonable efforts so as not to permit the inclusion
in any contract to which it hereafter becomes a party of any provision that would materially impair
or prevent the creation of a security interest in, or the assignment of, such Pledgor’s rights and
interests in any property included within the definitions of any Intellectual Property acquired
under such contracts.

 

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SECTION 4.10. Inspection and Verification. Collateral Agent or any representative
designated by Collateral Agent shall have the same access and inspection rights as granted to the
Administrative Agent by the Borrowers pursuant to Section 6.10 of the Credit Agreement; provided
that, upon the occurrence and during the continuance of an Event of Default, Collateral Agent and
its representatives shall at all times have the right to enter any premises of such Pledgor and
inspect any property of such Pledgor where any of the Security Agreement Collateral of such Pledgor
is located for the purpose of inspecting the same, observing its use,
protecting its interests therein, or otherwise exercising the remedies provided under
Article V at any time during normal business hours and without advance notice. For the
avoidance of doubt, in respect of Accounts or Security Agreement Collateral in the possession of
any third Person, upon the occurrence and during the continuance of an Event of Default, Collateral
Agent or any designated representative shall have the right to contact such account debtors or
third Persons in possession of such Security Agreement Collateral for verification purposes.
Collateral Agent shall have the absolute right to share any information it gains from such
inspection or verification with any other Secured Party.

SECTION 4.11. Payment of Taxes; Contesting Liens; Claims. Such Pledgor represents and
warrants that all Charges imposed on or assessed against the Security Agreement Collateral have
been paid and discharged except to the extent such Charges (a) constitute a Permitted Lien or a
Lien not yet due and payable, (b) are being contested in good faith by appropriate proceedings and
for which such Pledgor shall have set aside on its books adequate reserves in accordance with GAAP
or (c) to the extent that the non-payment thereof could not reasonably be expected to result in a
Material Adverse Effect. Notwithstanding the foregoing, such Pledgor may at its own expense
contest the validity, amount or applicability of any Charges so long as the contest thereof shall
satisfy the Contested Collateral Lien Conditions. Notwithstanding the foregoing provisions of this
Section 4.11, no contest of any such obligation may be pursued by such Pledgor if such
contest would expose Collateral Agent or any other Secured Party to any possible criminal
liability.

SECTION 4.12. Transfers and Other Liens. Such Pledgor shall not sell, convey, assign
or otherwise dispose of, or grant any option with respect to, any of the Security Agreement
Collateral pledged by it hereunder except as permitted by the Credit Agreement. Such Pledgor shall
not make or permit to be made an assignment for security, pledge or hypothecation of the Security
Agreement Collateral or shall grant any other Lien in respect of the Security Agreement Collateral,
except as permitted by Section 7.01 of the Credit Agreement.

ARTICLE V

REMEDIES

SECTION 5.01. Remedies. Upon the occurrence and during the continuance of any Event
of Default, Collateral Agent may from time to time exercise in respect of the Security Agreement
Collateral, in addition to the other rights and remedies provided for herein or otherwise available
to it:

(a) Personally, or by agents or attorneys, immediately take possession of the Security
Agreement Collateral or any part thereof, from any Pledgor or any other Person who then has
possession of any part thereof with or without notice or process of law, and for that
purpose may enter on any Pledgor’s premises where any of the Security Agreement Collateral
is located, remove such Security Agreement Collateral, remain present at such premises to
receive copies of all communications and remittances relating to the Security Agreement
Collateral and use in connection with such removal and possession any and all services,
supplies, aids and other facilities of any Pledgor;

 

19

 

(b) Demand, sue for, collect or receive any money or property at any time payable or
receivable in respect of the Security Agreement Collateral including instructing the obligor
or obligors on any agreement, instrument or other obligation constituting part of the
Security Agreement Collateral to make any payment required by the terms of such agreement,
instrument or other obligation directly to Collateral Agent, and in connection with any of
the foregoing, compromise, settle, extend the time for payment and make other modifications
with respect thereto; provided that, in the event that any such payments are made directly
to any Pledgor, prior to receipt by any such obligor of such instruction, such Pledgor shall
segregate all amounts received pursuant thereto in trust for the benefit of Collateral Agent
and shall promptly (but in no event later than one Business Day after receipt thereof) pay
such amounts into the Collateral Account;

(c) Sell, assign, grant a license to use or otherwise liquidate, or direct any Pledgor
to sell, assign, grant a license to use or otherwise liquidate, any and all investments made
in whole or in part with the Security Agreement Collateral or any part thereof, and take
possession of the proceeds of any such sale, assignment, license or liquidation;

(d) Take possession of the Security Agreement Collateral or any part thereof by
directing any Pledgor in writing to deliver the same to Collateral Agent at any place or
places so designated by Collateral Agent, in which event such Pledgor shall at its own
expense: (i) forthwith cause the same to be moved to the place or places designated by
Collateral Agent and there delivered to Collateral Agent, (ii) store and keep any Security
Agreement Collateral so delivered to Collateral Agent at such place or places pending
further action by Collateral Agent and (iii) while the Security Agreement Collateral shall
be so stored and kept, provide such security and maintenance services as shall be necessary
to protect the same and to preserve and maintain them in good condition. Each Pledgor’s
obligation to deliver the Security Agreement Collateral as contemplated in this Section
5.01(d) is of the essence hereof. Upon application to a court of equity having
jurisdiction, Collateral Agent shall be entitled to a decree requiring specific performance
by any Pledgor of such obligation;

(e) Withdraw all moneys, instruments, securities and other property in any bank,
financial securities, deposit or other account of any Pledgor constituting Security
Agreement Collateral for application to the Secured Obligations as provided in Article VIII
of the Credit Agreement;

(f) Retain and apply the Distributions to the Secured Obligations as provided in the
Credit Agreement;

(g) Exercise any and all rights as beneficial and legal owner of the Security Agreement
Collateral, including perfecting assignment of and exercising any and all voting, consensual
and other rights and powers with respect to any Security Agreement Collateral; and

 

20

 

(h) All the rights and remedies of a secured party on default under the UCC, and
Collateral Agent may also in its sole discretion, without notice except as specified in
Section 5.02, sell, assign or grant a license to use the Security Agreement
Collateral or any part thereof in one or more parcels at public or private sale, at any
exchange, broker’s board or at any of Collateral Agent’s offices or elsewhere, for cash, on
credit or for future delivery, and at such price or prices and on such other terms as
Collateral Agent deems commercially reasonable. Collateral Agent or any other Secured Party
or any of their respective Affiliates may be the purchaser, licensee, assignee or recipient
of any or all of the Security Agreement Collateral at any such sale and shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase price for all or
any portion of the Security Agreement Collateral sold, assigned or licensed at such sale, to
use and apply any of the Secured Obligations owed to such Person as a credit on account of
the purchase price of any Security Agreement Collateral payable by such Person at such sale.
Each purchaser, assignee, licensee or recipient at any such sale shall acquire the property
sold, assigned or licensed absolutely free from any claim or right on the part of any
Pledgor, and each Pledgor hereby waives, to the fullest extent permitted by law, all rights
of redemption, stay and appraisal that it now has or may at any time in the future have
under any rule of law or statute now existing or hereafter enacted. Collateral Agent shall
not be obligated to make any sale of Security Agreement Collateral regardless of notice of
sale having been given. Collateral Agent may adjourn any public or private sale from time
to time by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned. Each Pledgor
hereby waives, to the fullest extent permitted by law, any claims against Collateral Agent
arising by reason of the fact that the price at which any Security Agreement Collateral may
have been sold, assigned or licensed at such a private sale was less than the price that
might have been obtained at a public sale, even if Collateral Agent accepts the first offer
received and does not offer such Security Agreement Collateral to more than one offeree.

(i) Upon the written demand of Collateral Agent, each Pledgor shall execute and deliver
to Collateral Agent an assignment or assignments of the registered Intellectual Property and
such other documents as are necessary or appropriate to carry out the intent and purposes
hereof.

SECTION 5.02. Notice of Sale. Each Pledgor acknowledges and agrees that, to the
extent notice of sale shall be required by law, ten days’ notice to such Pledgor of the time and
place of any public sale or of the time after which any private sale or other intended disposition
is to take place shall be commercially reasonable notification of such matters. No notification
need be given to any Pledgor if it has signed, during the occurrence of an Event of Default, a
statement renouncing or modifying any right to notification of sale or other intended disposition.

 

21

 

SECTION 5.03. Waiver of Notice and Claims. Each Pledgor hereby waives, to the fullest
extent permitted by applicable law, notice or judicial hearing in connection with Collateral
Agent’s taking possession or Collateral Agent’s disposition of any of the Security Agreement
Collateral, including any and all prior notice and hearing for any prejudgment remedy or remedies
and any such right that such Pledgor would otherwise have under law, and each Pledgor hereby
further waives, to the fullest extent permitted by applicable law: (a) all damages
occasioned by such taking of possession, (b) all other requirements as to the time, place and
terms of sale or other requirements with respect to the enforcement of Collateral Agent’s rights
hereunder and (c) all rights of redemption, appraisal, valuation, stay, extension and moratorium
now or hereafter in force under any applicable law. Collateral Agent shall not be liable for any
incorrect or improper payment made pursuant to this Article V in the absence of gross
negligence or willful misconduct. Any sale of, or the grant of options to purchase, or any other
realization on, any Security Agreement Collateral shall operate to divest all right, title,
interest, claim and demand, either at law or in equity, of the applicable Pledgor therein and
thereto, and shall be a perpetual bar both at law and in equity against such Pledgor and against
any and all Persons claiming or attempting to claim the Security Agreement Collateral so sold,
optioned or realized on, or any part thereof, from, through or under such Pledgor.

SECTION 5.04. Certain Sales of Security Agreement Collateral. Each Pledgor recognizes
that, by reason of certain prohibitions contained in the Securities Act, and applicable state
securities laws, Collateral Agent may be compelled, with respect to any sale of all or any part of
the Securities Collateral, to limit purchasers to Persons who will agree, among other things, to
acquire such Securities Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. Each Pledgor acknowledges that any such private sales may be at
prices and on terms less favorable to Collateral Agent than those obtainable through a public sale
without such restrictions (including a public offering made pursuant to a registration statement
under the Securities Act), and, notwithstanding such circumstances, agrees that any such private
sale shall be deemed to have been made in a commercially reasonable manner and that Collateral
Agent shall have no obligation to engage in public sales and no obligation to delay the sale of any
Securities Collateral for the period of time necessary to permit the issuer thereof to register it
for a form of public sale requiring registration under the Securities Act or under applicable state
securities laws, even if such issuer would agree to do so.

SECTION 5.05. No Waiver; Cumulative Remedies. (a) No failure on the part of
Collateral Agent to exercise, no course of dealing with respect to, and no delay on the part of
Collateral Agent in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any such right, power or remedy hereunder
preclude any other or further exercise thereof or the exercise of any other right, power or remedy;
nor shall Collateral Agent be required to look first to, enforce or exhaust any other security,
collateral or guarantees. The remedies herein provided are cumulative and are not exclusive of any
remedies provided by law.

(b) In the event that Collateral Agent shall have instituted any proceeding to enforce any
right, power or remedy under this Agreement by foreclosure, sale, entry or otherwise, and such
proceeding shall have been discontinued or abandoned for any reason or shall have been determined
adversely to Collateral Agent, then and in every such case, the Pledgors, Collateral Agent and each
other Secured Party shall be restored to their respective former positions and rights hereunder
with respect to the Security Agreement Collateral, and all rights, remedies and powers of
Collateral Agent and the other Secured Parties shall continue as if no such proceeding had been
instituted.

 

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ARTICLE VI

OBLIGATIONS ABSOLUTE; WAIVERS

SECTION 6.01. Liability of the Pledgors Absolute. Each Pledgor agrees that its
obligations hereunder are irrevocable, absolute, independent, unconditional, and shall not be
affected by any circumstance that constitutes a legal or equitable discharge of a pledgor or
surety, except for payment in full of the Secured Obligations. In furtherance of the foregoing and
without limiting the generality thereof, each Pledgor agrees as follows:

(a) the obligations of each Pledgor hereunder are independent of the obligations of
each other Pledgor and each guarantor of the obligations of the Loan Parties, and separate
actions may be brought and prosecuted against such Pledgor whether or not any action is
brought against any other Pledgor or guarantor, and whether or not such other Pledgor or
guarantor is joined in any such actions;

(b) payment by any Loan Party of a portion of the Secured Obligations shall in no way
limit, affect, modify or abridge such Pledgor’s grant hereunder securing any portion of the
Secured Obligations that has not been paid. By way of example and without limiting the
generality of the foregoing, if Collateral Agent is awarded a judgment in any suit brought
to enforce any Loan Party’s covenant to pay a portion of the Secured Obligations, such
judgment shall not be deemed to release such Pledgor from its grant hereunder securing the
portion of the Secured Obligations that is not the subject of such suit, and such judgment
shall not, except to the extent satisfied by such Pledgor, limit, affect, modify or abridge
any other Pledgor’s grant hereunder securing the Secured Obligations;

(c) upon such terms as Collateral Agent deems appropriate, without obligation to give
notice or demand, without affecting the validity or enforceability hereof, and without
giving rise to any reduction, limitation, impairment, discharge or termination of the
security interests granted hereunder or such Pledgor’s liability hereunder, Collateral Agent
may, from time to time, (i) renew, extend, accelerate, increase the rate of interest on, or
otherwise change the time, place and manner or terms of payment of any of the Secured
Obligations in accordance with the terms of the other Loan Documents; (ii) settle,
compromise, release or discharge, or accept or refuse any offer of performance with respect
to, or substitutions for, any of the Secured Obligations or any agreement relating thereto,
or subordinate the payment of the same to the payment of any other obligations; (iii)
request and accept other pledges as security for any of the Secured Obligations, and take
and hold security for the payment hereof or any of the Secured Obligations; (iv) release,
surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or
modify, with or without consideration, any security for payment of any of the Secured
Obligations, any guarantees of any of the Secured Obligations, or any other obligation of
any Person (including any other Pledgor) with respect to any of the Secured Obligations; (v)
enforce and apply any security now or hereafter held by it in respect hereof or any of the
Secured Obligations, and direct the order or manner of sale thereof, or exercise any other
right or remedy that it may have against any such security, including foreclosure on any
such security in accordance with
one or more judicial or nonjudicial sales, whether or not every aspect of any such sale
is economically reasonable, and even though such action operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of any Pledgor against any
other Loan Party, or any security for any of the Secured Obligations; and (vi) exercise any
other rights available to it under the Loan Documents; and

 

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(d) this Agreement and such Pledgor’s obligations hereunder shall be valid and
enforceable, and shall not be subject to any reduction, limitation, impairment, discharge or
termination for any reason (other than payment in full of all the Secured Obligations),
including the occurrence of any of the following (whether or not such Pledgor shall have had
notice or knowledge of any of them): (i) any failure or omission to assert or enforce, any
agreement or election not to assert or enforce, or any stay or enjoining by order of any
court, by operation of law or otherwise, of the exercise or enforcement of any claim or
demand, or any right, power or remedy (whether arising under the Loan Documents, at law, in
equity, or otherwise) with respect to the Secured Obligations or any agreement related
thereto, or with respect to any other guarantee of or security for the payment of the
Secured Obligations; (ii) any rescission, waiver, amendment or modification of, or any
consent to departure from, any of the terms or provisions (including provisions relating to
events of default) hereof, any of the other Loan Documents, any agreement or instrument
executed pursuant thereto, or any guarantee or other security for the Secured Obligations or
any agreement relating thereto at any time being found to be illegal, invalid or
unenforceable in any respect; (iv) the application of payments received from any source
(other than payments received pursuant to the other Loan Documents or from the proceeds of
any security for the Secured Obligations, except to the extent such security also serves as
collateral for Indebtedness other than the Secured Obligations); (v) consent of Collateral
Agent or any other Secured Party to the change, reorganization or termination of the
corporate structure or existence of any Loan Party or any Subsidiary thereof, and to any
corresponding restructuring of the Secured Obligations; (vi) any failure to perfect or
continue perfection of a security interest in any collateral that secures any of the Secured
Obligations; (vii) any defenses, set-offs or counterclaims that any Loan Party may allege or
assert against Collateral Agent or any other Secured Party in respect of the Secured
Obligations, including failure of consideration, breach of warranty, payment, statute of
frauds, statute of limitations, accord and satisfaction, and usury; and (viii) any other
act, thing or omission, or delay to do any other act or thing, that in any manner and to any
extent may vary such Pledgor’s risk as a grantor of security securing the Secured
Obligations.

 

24

 

SECTION 6.02. General Waivers. Each Pledgor hereby waives, for the benefit of
Collateral Agent and the Secured Parties: (a) all rights to require Collateral Agent or any other
Secured Party, as a condition to exercising Collateral Agent’s rights hereunder against the
Security Agreement Collateral, to (i) proceed against any other Loan Party, any other pledgor
(including any other Pledgor) of security securing any of the Secured Obligations, or any other
Person, (ii) proceed against or exhaust any security held from any other Loan Party, any such other
pledgor or any other Person, (iii) proceed against or have resort to any balance of any Deposit
Account or credit on the books of Collateral Agent or any other Secured Party in favor of any other
Loan Party or any other Person, or (iv) pursue any other remedy whatsoever in the
capacity of secured party; (b) any defense arising by reason of incapacity, lack of authority,
or any disability or other defenses of any other Loan Party, including any defense based on or
arising from the lack of validity or enforceability of any of the Secured Obligations or any
agreement or instrument relating thereto, or by reason of the cessation of the liability of any
other Loan Party from any cause other than the payment in full of all the Secured Obligations; (c)
any defense based on any statute or rule of law that provides that the obligation of a surety must
be neither larger in amount nor in other respects more burdensome than that of the principal; (d)
any defense based on errors or omissions by Collateral Agent or any other Secured Party in the
administration of any of the Secured Obligations, except behavior that amounts to bad faith, gross
negligence or willful misconduct; (e) any principles or provisions of law, statutory or otherwise,
that are or may be in conflict with the terms hereof, and any legal or equitable discharge of such
Pledgor’s obligations hereunder; (f) the benefit of any statute of limitations affecting such
Pledgor’s counterclaims; (g) promptness, diligence and any requirement that Collateral Agent or any
other Secured Party protect, secure, perfect or insure any security interest or Lien or any
property subject thereto; (h) notices, demands, presentments, protests, notices of protest, notices
of dishonor and notices of any action or inaction, including acceptance hereof, notices of default
hereunder, notices of any renewal, extension or modification of any of the Secured Obligations or
any agreement related thereto, notices of any extension of credit to any other Loan party and
notices of any of the matters referred to in Section 6.01, and any right to consent to any
thereof; and (i) any defenses or benefits that may be derived from or afforded by law that limit
the liability of or exonerate pledgors or sureties, or that may conflict with the terms hereof.

SECTION 6.03. California Waivers. For purposes of this Section 6.03 only,
references to the “principal” include each Loan Party and references to the “creditor” include each
Secured Party. In accordance with Section 2856 of the California Civil Code, each Pledgor waives
all rights and defenses (i) available to such Pledgor by reason of Sections 2787 through 2855,
2899, and 3433 of the California Civil Code, including all rights or defenses such Pledgor may have
by reason of protection afforded to the principal with respect to any of the Secured Obligations,
or to any other Person liable for any of the Secured Obligations, in either case in accordance with
the antideficiency or other laws of the State of California limiting or discharging the principal’s
Indebtedness or such Person’s obligations, including Sections 580a, 580b, 580d and 726 of the
California Code of Civil Procedure; and (ii) arising out of an election of remedies by the
creditor, even though such election, such as a nonjudicial foreclosure with respect to security for
any Secured Obligation (or any obligation of any other Person of any of the Secured Obligations),
has destroyed such Pledgor’s right of subrogation and reimbursement against the principal (or such
other Person), by operation of Section 580d of the California Code of Civil Procedure or otherwise.
No other provision of this Agreement shall be construed as limiting the generality of any of the
covenants and waivers set forth in this Section 6.03. As provided below, this Agreement
shall be governed by, and shall be construed and enforced in accordance with the laws of the State
of New York. This Section 6.03 is included solely out of an abundance of caution, and
shall not be construed to mean that any of the above-referenced provisions of California law are in
any way applicable to this Agreement or to any of the Secured Obligations.

 

25

 

ARTICLE VII

MISCELLANEOUS

SECTION 7.01. Concerning Collateral Agent. (a) Collateral Agent has been appointed as
Collateral Agent pursuant to Article IX of the Credit Agreement. The actions of Collateral Agent
hereunder are subject to the provisions of the Credit Agreement. Collateral Agent shall have the
right hereunder to make demands, to give notices, to exercise or refrain from exercising any
rights, and to take or refrain from taking action (including the release or substitution of the
Security Agreement Collateral), in accordance with this Agreement and the Credit Agreement.
Collateral Agent may employ agents and attorneys-in-fact in connection herewith. Collateral Agent
may resign and a successor Collateral Agent may be appointed in the manner provided in the Credit
Agreement. Upon the acceptance of any appointment as Collateral Agent by a successor Collateral
Agent, that successor Collateral Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Collateral Agent under this Agreement, and
the retiring Collateral Agent shall thereupon be discharged from its duties and obligations under
this Agreement. After any retiring Collateral Agent’s resignation, the provisions hereof shall
inure to its benefit as to any actions taken or omitted to be taken by it under this Agreement
while it was Collateral Agent.

(b) Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of the Security Agreement Collateral in its possession if such Security Agreement
Collateral is accorded treatment substantially equivalent to that which Collateral Agent, in its
individual capacity, accords its own property consisting of similar instruments or interests, it
being understood that neither Collateral Agent nor any of the Secured Parties shall have
responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relating to any Securities Collateral, whether or not
Collateral Agent or any other Secured Party has or is deemed to have knowledge of such matters, or
(ii) taking any necessary steps to preserve rights against any Person with respect to any Security
Agreement Collateral.

(c) Collateral Agent shall be entitled to rely on any written notice, statement, certificate,
order or other document or any telephone message believed by it to be genuine and correct and to
have been signed, sent or made by the proper Person, and, with respect to all matters pertaining to
this Agreement and its duties hereunder, on advice of counsel selected by it.

(d) With respect to any of its rights and obligations as a Lender, Collateral Agent shall have
and may exercise the same rights and powers hereunder. The term “Lenders,” “Lender” or any similar
terms shall, unless the context clearly otherwise indicates, include Collateral Agent in its
individual capacity as a Lender. Collateral Agent may accept deposits from, lend money to, and
generally engage in any kind of banking, trust or other business with such Pledgor or any Affiliate
of such Pledgor to the same extent as if Collateral Agent were not acting as Collateral Agent.

(e) If any item of Security Agreement Collateral also constitutes collateral granted to
Collateral Agent under any other Collateral Agreement, in the event of any conflict between the
provisions hereof and the provisions of such other Collateral Agreement in respect
of such collateral, Collateral Agent, in its sole discretion, shall select which provision or
provisions shall control.

 

26

 

SECTION 7.02. Collateral Agent May Perform; Collateral Agent Appointed
Attorney-in-Fact. If an Event of Default shall have occurred and be continuing, Collateral
Agent may (but shall not be obligated to) remedy or cause to be remedied any such breach, and may
expend funds for such purpose; provided that, Collateral Agent shall in no event be bound to
inquire into the validity of any tax, lien, imposition or other obligation that such Pledgor fails
to pay or perform as and when required hereby and that such Pledgor does not contest in accordance
with the provision of Section 7.01 of the Credit Agreement. Any and all amounts so expended by
Collateral Agent shall be paid by the Pledgors in accordance with the provisions of Section
7.03. Neither the provisions of this Section 7.02 nor any action taken by Collateral
Agent pursuant to the provisions of this Section 7.02 shall prevent any such failure by any
Pledgor to observe any covenant contained in this Agreement nor any breach of warranty from
constituting an Event of Default. Each Pledgor hereby appoints Collateral Agent its
attorney-in-fact, with full authority in the place and stead of such Pledgor and in the name of
such Pledgor, or otherwise, from time to time during the continuance of an Event of Default in
Collateral Agent’s discretion to take any action and to execute any instrument consistent with the
terms hereof and the other Loan Documents that Collateral Agent may deem necessary or advisable to
accomplish the purposes hereof. The foregoing grant of authority is an irrevocable power of
attorney coupled with an interest and such appointment shall be irrevocable for the term hereof.
Each Pledgor hereby ratifies all that such attorney shall lawfully do or cause to be done by virtue
hereof.

SECTION 7.03. Expenses. Each Pledgor will promptly pay to Collateral Agent the amount
of any and all costs and expenses, including the reasonable fees and expenses of its counsel and
the fees and expenses of any experts and agents, that Collateral Agent may incur in connection with
this Agreement, including all costs and expenses relating to (a) any and all filings and other
actions taken to ensure the attachment, perfection and priority of, and the ability of Collateral
Agent to enforce, Collateral Agent’s security interest in the Security Agreement Collateral; (b)
any action, suit or other proceeding affecting the Security Agreement Collateral or any part
thereof commenced, in which action, suit or proceeding Collateral Agent is made a party or
participates or in which the right to use the Security Agreement Collateral or any part thereof is
threatened, or in which it becomes necessary in the judgment of Collateral Agent to defend or
uphold the Lien hereof (including any action, suit or proceeding to establish or uphold the
compliance of the Security Agreement Collateral with any requirements of any Governmental Authority
or law); (c) the collection of the Secured Obligations; (d) the enforcement and administration
hereof; (e) the custody or preservation of, or the sale of, collection from, or other realization
on, any of the Security Agreement Collateral; (f) the exercise or enforcement of any of the rights
of Collateral Agent or any Secured Party hereunder; or (g) the failure by any Pledgor to perform or
observe any of the provisions hereof. All amounts expended by Collateral Agent and payable by any
Pledgor under this Section 7.03 shall be due upon demand therefor (together with interest
thereon accruing at the default rate during the period from and including the date on which such
funds were so expended to the date of repayment) and shall be part of the Secured Obligations.
Each Pledgor’s obligations under this Section 7.03 shall survive the termination hereof and
the discharge of such Pledgor’s other obligations under this Agreement, the Credit Agreement and
the other Loan Documents.

 

27

 

SECTION 7.04. Indemnity. (a) Indemnity. Each Pledgor agrees to indemnify,
defend and hold harmless Collateral Agent and each of the other Secured Parties, and the officers,
directors, employees, agents and Affiliates of Collateral Agent and each of the other Secured
Parties (collectively, the “Indemnitees”) from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims, costs (including
settlement costs), expenses or disbursements of any kind or nature whatsoever (including the fees
and disbursements of counsel for such Indemnitees in connection with any investigative,
administrative or judicial proceeding, commenced or threatened, whether or not such Indemnitee
shall be designated a party thereto) that may be imposed on, incurred by, or asserted against that
Indemnitee, in any manner relating to or arising out of this Agreement or any other Loan Document
(including any misrepresentation by any Pledgor in this Agreement or any other Loan Document) (the
“Indemnified Liabilities”); provided that, no Pledgor shall have any obligation to an
Indemnitee hereunder with respect to Indemnified Liabilities if it has been determined by a final
decision of a court of competent jurisdiction that such Indemnified Liabilities arose from the
gross negligence or willful misconduct of that Indemnitee. To the extent that the undertaking to
indemnify, pay and hold harmless set forth in the preceding sentence may be unenforceable because
it is violative of any law or public policy, each Pledgor shall contribute the maximum portion that
it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all
Indemnified Liabilities incurred by the Indemnitees or any of them.

(b) Survival. The obligations of the Pledgors contained in this Section 7.04
shall survive the termination hereof and the discharge of the Pledgors’ other obligations under
this Agreement, the Credit Agreement, any Guaranty, any Secured Hedge Agreement, any Secured Cash
Management Agreement and under the other Loan Documents.

(c) Reimbursement. Any amounts paid by any Indemnitee as to which such Indemnitee has
the right to reimbursement shall constitute Secured Obligations secured by the Security Agreement
Collateral.

SECTION 7.05. Continuing Security Interest; Assignment. This Agreement shall create a
continuing security interest in the Security Agreement Collateral and shall (a) remain in full
force and effect until the payment in full of all Secured Obligations, (b) be binding on the
Pledgors, their respective successors and assigns, and (b) inure, together with the rights and
remedies of the Lender hereunder, to the benefit of Collateral Agent and the other Secured Parties
and each of their respective permitted successors, transferees and assigns. No other Persons
(including any other creditor of any Pledgor) shall have any interest herein or any right or
benefit with respect hereto. Without limiting the generality of the foregoing clause (b), any
Secured Party may assign or otherwise transfer any Secured Obligation held by it to any other
Person, and such other Person shall thereupon become vested with all the benefits in respect
thereof granted to such Secured Party, herein or otherwise, subject however, to the provisions of
the other Loan Documents and any Secured Hedge Agreement or Secured Cash Management Agreement to
which such Secured Party is a party; provided, that in the case of any such assignment or transfer
of Secured Obligation in connection with any Secured Hedge Agreement or Secured Cash Management
Agreement to a Person other than a Hedge Bank or a Cash Management Bank, as the case may be, such
obligation shall cease to be a Secured Obligation and such other Person shall not become vested
with the benefits in respect thereof granted to the transferring Secured Party.

 

28

 

SECTION 7.06. Termination; Release. Upon payment in full of all the Secured
Obligations, or upon any partial release of Security Agreement Collateral in accordance with the
other Loan Documents, the security interests granted hereby shall terminate hereunder and of
record, and all rights to the Security Agreement Collateral shall revert to the Pledgors, it being
understood that in the case any such partial release, the security interests granted hereby shall
terminate hereunder and of record only with respect to such Security Agreement Collateral subject
to such partial release. Upon any such termination, Collateral Agent shall, at the Pledgors’
expense, execute and deliver to the Pledgors such documents, and take such other actions, as the
Pledgors reasonably request to evidence such termination.

Notwithstanding anything to the contrary contained herein, in connection with Section 9.10 of the
Credit Agreement, Collateral Agent and the other Secured Parties agree to cooperate with each
Pledgor with respect to any sale of Security Agreement Collateral permitted by Section 7.05 of the
Credit Agreement and under the other Loan Documents and promptly take such action and execute and
deliver such instruments and documents necessary to release the Liens and security interests
created hereby relating to any of the assets or property affected by any sale of Security Agreement
Collateral permitted by Section 7.05 of the Credit Agreement and under the other Loan Documents
(including, without limitation, any necessary Uniform Commercial Code amendment, termination or
partial termination statement).

SECTION 7.07. Modification in Writing. No amendment, modification, supplement,
termination or waiver of or to any provision hereof, nor consent to any departure by any Pledgor
therefrom, shall be effective unless the same shall be made in accordance with the terms of the
Credit Agreement and unless in writing and signed by Collateral Agent. Any amendment, modification
or supplement of or to any provision hereof, any waiver of any provision hereof and any consent to
any departure by any Pledgor from the terms of any provision hereof shall be effective only in the
specific instance and for the specific purpose for which made or given. Except where notice is
specifically required by this Agreement or any other document evidencing the Secured Obligations,
no notice to or demand on any Pledgor in any case shall entitle any Pledgor to any other or further
notice or demand in similar or other circumstances.

SECTION 7.08. Notices. Unless otherwise provided herein or in the Credit Agreement,
any notice or other communication herein required or permitted to be given shall be given in the
manner and become effective as set forth in the Credit Agreement, if to any Pledgor, addressed to
it at the address of the Company set forth in the Credit Agreement, and if to Collateral Agent,
addressed to it at the address set forth in the Credit Agreement, or in each case at such other
address as shall be designated by such party in a written notice to the other party complying as to
delivery with the terms of this Section 7.08.

SECTION 7.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK
(INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK),
EXCEPT TO THE EXTENT, IN ACCORDANCE WITH CHOICE-OF-LAW PRINCIPLES, THAT THE PERFECTION OF THE
SECURITY INTERESTS GRANTED HEREUNDER, OR REMEDIES HEREUNDER IN RESPECT OF ANY ITEM OR TYPE OF
SECURITY AGREEMENT
COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

29

 

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

(c) Each Pledgor hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection that it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement in any court
referred to in Section 7.09(b). Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

(d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 7.08. Nothing in this Agreement will affect the right of
any party to this Agreement to serve process in any other manner permitted by law.

SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 7.10.

SECTION 7.11. Severability of Provisions. Any provision hereof that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

 

30

 

SECTION 7.12. Execution in Counterparts. This Agreement and any amendments, waivers,
consents or supplements hereto may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts together shall constitute one and the same
agreement.

SECTION 7.13. Business Days. In the event any time period or any date provided in
this Agreement ends or falls on a day other than a Business Day, then such time period shall be
deemed to end and such date shall be deemed to fall on the next succeeding Business Day, and
performance herein may be made on such Business Day, with the same force and effect as if made on
such other day.

SECTION 7.14. No Credit for Payment of Taxes or Imposition. Each Pledgor shall not be
entitled to any credit against the principal, premium (if any), or interest payable under the
Credit Agreement, and such Pledgor shall not be entitled to any credit against any other sums that
may become payable under the terms thereof or hereof, by reason of the payment of any Tax on the
Security Agreement Collateral or any part thereof.

SECTION 7.15. No Claims Against Collateral Agent. Nothing contained in this Agreement
shall constitute any consent or request by Collateral Agent, express or implied, for the
performance of any labor or services or the furnishing of any materials or other property in
respect of the Security Agreement Collateral or any part thereof, nor as giving any Pledgor any
right, power or authority to contract for or permit the performance of any labor or services or the
furnishing of any materials or other property in such fashion as would permit the making of any
claim against Collateral Agent in respect thereof or any claim that any Lien based on the
performance of such labor or services or the furnishing of any such materials or other property is
prior to the Lien hereof.

SECTION 7.16. No Release Under Agreements; No Liability of Collateral Agent or Secured
Parties. Nothing set forth in this Agreement shall relieve the Pledgor from the performance of
any term, covenant, condition or agreement on the Pledgor’s part to be performed or observed under
or in respect of any of the Security Agreement Collateral, or from any liability to any Person
under or in respect of any of the Security Agreement Collateral, or shall impose any obligation on
Collateral Agent or any other Secured Party to perform or observe any such term, covenant,
condition or agreement on the Pledgor’s part to be so performed or observed, or shall impose any
liability on Collateral Agent or any other Secured Party for any act or omission on the part of the
Pledgor relating thereto or for any breach of any Secured Hedge Agreement or Secured Cash
Management Agreement, any representation or warranty on the part of the Pledgor contained in this
Agreement, the Credit Agreement, the Guaranties or the other Loan Documents, or under or in respect
of the Security Agreement Collateral or made in connection herewith or therewith. The obligations
of the Pledgor contained in this Section 7.16 shall survive the termination hereof and the
discharge of the Pledgor’s other obligations under this Agreement, the Credit Agreement, any
Guaranty, any Secured Hedge Agreement, any Secured Cash Management Agreement and the other Loan
Documents.

 

31

 

SECTION 7.17. Obligations Absolute. Subject to Section 9.10 of the Credit Agreement,
all obligations of each Pledgor hereunder shall be absolute and unconditional irrespective of:

(a) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any Pledgor or any other Loan Party;

(b) any lack of validity or enforceability of the Credit Agreement, any Guaranty, any
Secured Hedge Agreement, any Secured Cash Management Agreement or any other Loan Document,
or any other agreement or instrument relating thereto;

(c) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Secured Obligations, or any other amendment or waiver of or any consent to any
departure from the Credit Agreement, any Guaranty any other Loan Document, any Secured Hedge
Agreement, any Secured Cash Management Agreement or any other agreement or instrument
relating thereto;

(d) any pledge, exchange, release or nonperfection of any other Collateral, or any
release or amendment or waiver of or consent to any departure from any Guaranty, for all or
any of the Secured Obligations, except to the extent that any such amendment, waiver or
consent expressly relieves such Pledgor of any obligations;

(e) any exercise, nonexercise or waiver of any right, remedy, power or privilege under
or in respect hereof, the Credit Agreement, any Guaranty, any Secured Hedge Agreement, any
Secured Cash Management Agreement or any other Loan Document except as specifically set
forth in a waiver granted pursuant to the provisions of Section 5.03; or

(f) any other circumstances that might otherwise constitute a defense available to, or
a discharge of, any Pledgor.

SECTION 7.18. Marshaling; Payments Set Aside. Collateral Agent shall not be under any
obligation to marshal any assets in favor of any Pledgor or any other Person or against or in
payment of any or all of the Secured Obligations.

SECTION 7.19. Release of Pledgors. If any Pledgor is released from its Guaranty in
accordance with the provisions of the Credit Agreement and of such Guaranty, then Collateral Agent
shall (at the expense of the Borrowers) take all action necessary to release its security interest
in that portion of the Security Agreement Collateral owned by such Pledgor, and shall release such
Pledgor from its obligations hereunder (other than obligations intended to survive the termination
hereof), in each case subject to and in accordance with Section 9.10 of the Credit Agreement.

[Signature Pages Follow]

 

32

 

IN WITNESS WHEREOF, the Pledgors and Collateral Agent have caused this Agreement to be duly
executed and delivered by their duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL, INC.,

a Nevada corporation, as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL OF AMERICA, INC., a Nevada
corporation, as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL COMMUNICATIONS, INC., a
California corporation, as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Security Agreement

 

 

 

	 	 	 	 	 
	 	HERBALIFE TAIWAN, INC.,

a California corporation, as a Pledgor

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL DO BRASIL, LTDA., a

corporation dually organized in Brazil and Delaware, 

as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	HERBALIFE KOREA CO., LTD., a corporation dually

organized in Korea and Delaware, as a Pledgor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Security Agreement

 

 

 

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

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Security Agreement

 

 

 

EXHIBIT G-1

FORM OF COMPANY GUARANTY

[To be attached.]

EXHIBIT G-2

FORM OF HOLDINGS GUARANTY

[To be attached.]

EXHIBIT G-3

FORM OF HIL GUARANTY

[To be attached.]

EXHIBIT G-4

FORM OF DOMESTIC SUBSIDIARY GUARANTY

[To be attached.]

EXHIBIT G-5

FORM OF FOREIGN SUBSIDIARY GUARANTY

[To be attached.]

EXHIBIT G-__

[FORMS OF FOREIGN LAW GUARANTIES]

[To be attached.]

Forms of Guaranties

 

G-1

 

EXHIBIT G-1

COMPANY GUARANTY

FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
credit and/or financial accommodation heretofore or hereafter from time to time made or granted to
HERBALIFE LTD. (“Holdings”), HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L. (“HIL”)
and any Designated Borrower (as hereinafter defined) by the Lenders under the Credit Agreement (as
hereinafter defined), HERBALIFE INTERNATIONAL, INC. (the “Company”) as the undersigned
Guarantor (in such capacity, the “Guarantor”) hereby furnishes its guaranty (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, this
“Guaranty”) of the Guaranteed Obligations (as hereinafter defined) on the 9th day of March,
2011, as follows:

1. Guaranty. Reference is made to that certain Credit Agreement, dated as of even date
herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Credit Agreement;” the terms defined therein being used herein as therein
defined), among the Company, Holdings, HIL (the Company, Holdings, HIL and any Subsidiary of the
Company that becomes a borrower under the Credit Agreement (each such Subsidiary, a “Designated
Borrower”) are herein referred to as the “Borrowers” and each, a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender. The Guarantor hereby absolutely and unconditionally guarantees,
as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment
when due, whether at stated maturity, by required prepayment, upon acceleration, demand or
otherwise, and at all times thereafter, of all Obligations of Holdings and of HIL (collectively the
“Guaranteed Obligations”). The accounts or records maintained by the Administrative Agent
and each other Secured Party shall be conclusive absent manifest error of the amount of the
Guaranteed Obligations. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Guarantor hereunder to pay any amount owing with
respect to the Guaranteed Obligations. In the event of any conflict between the accounts and
records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. This Guaranty shall not be affected by the genuineness, validity,
regularity or enforceability of the Guaranteed Obligations or any instrument or agreement
evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection,
non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the
Guaranteed Obligations which might otherwise constitute a defense to the obligations of the
Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives any defenses it may now
have or hereafter acquire in any way relating to any or all of the foregoing.

2. No Setoff or Deductions; Taxes; Payments. The Guarantor represents and warrants that it is
organized and resident in the United States of America. The Guarantor shall make all payments
hereunder without setoff or counterclaim and free and clear of and without deduction for any Taxes
unless the Guarantor is compelled by law to make such deduction or withholding. The obligations
hereunder shall not be affected by any acts of any Governmental Authority affecting any Borrower or
the Guarantor, including but not limited to, any restrictions on the conversion of currency or
repatriation or control of funds or any total or partial expropriation of any Borrower’s property,
or by economic, political, regulatory or other events in the countries where any Borrower is
located. All payments hereunder shall be made to the Administrative Agent, for the account of the
respective Secured Parties to which such payment is owed, in the applicable currency at the
applicable Administrative Agent’s Office and at the times specified in the Credit Agreement (or in
the case of obligations arising under any Secured Cash Management Agreement or Secured Hedge
Agreement, to the applicable Cash Management Bank or
Hedge Bank as specified in the applicable Secured Cash Management Agreement or Secured Hedge
Agreement).

 

 

 

3. Rights of Lender. The Guarantor consents and agrees that the Secured Parties may, at any
time and from time to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or
otherwise change the time for payment or the terms of the Guaranteed Obligations or any part
thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise
dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply
such security and direct the order or manner of sale thereof as the Secured Parties may determine;
and (d) release or substitute one or more of any endorsers or other guarantors of any of the
Guaranteed Obligations. Without limiting the generality of the foregoing, the Guarantor consents
to the taking of, or failure to take, any action which might in any manner or to any extent vary
the risks of the Guarantor under this Guaranty or which, but for this provision, might operate as a
discharge of the Guarantor.

4. Certain Waivers. (a) The Guarantor waives (i) any defense arising by reason of any
disability or other defense of any Borrower or any other guarantor, or the cessation from any cause
whatsoever (including any act or omission of the Secured Parties) of the liability of any Borrower;
(ii) any defense based on any claim that the Guarantor’s obligations exceed or are more burdensome
than those of any Borrower; (iii) the benefit of any statute of limitations affecting the
Guarantor’s liability hereunder; (iv) any right to require any Secured Party to proceed against any
Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any
other remedy in the Secured Parties’ power whatsoever; (v) until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, any
benefit of and any right to participate in any security now or hereafter held by the Secured
Parties; and (vi) to the fullest extent permitted by law, any and all other defenses or benefits
that may be derived from or afforded by applicable Law limiting the liability of or exonerating
guarantors or sureties.

The Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for
payment or performance, notices of nonpayment or nonperformance, protests, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence,
creation or incurrence of new or additional Guaranteed Obligations.

For purposes of this paragraph only, references to the “principal” include each of HIL and
Holdings and references to the “creditor” include each Secured Party. In accordance with Section
2856 of the California Civil Code, the Guarantor waives, until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, all
rights and defenses (i) available to the Guarantor by reason of Sections 2787 through 2855, 2899,
and 3433 of the California Civil Code, including all rights or defenses the Guarantor may have by
reason of protection afforded to the principal with respect to any of the Guaranteed Obligations,
or to any other guarantor of any of the Guaranteed Obligations with respect to any of such
guarantor’s obligations under its guarantee, in either case in accordance with the antideficiency
or other laws of the State of California limiting or discharging the principal’s Indebtedness or
such other guarantor’s obligations, including Sections 580a, 580b, 580d and 726 of the California
Code of Civil Procedure; and (ii) arising out of an election of remedies by the creditor, even
though such election, such as a nonjudicial foreclosure with respect to security for any Guaranteed
Obligation (or any obligation of any other guarantor of any of the Guaranteed Obligations), has
destroyed the Guarantor’s right of subrogation and reimbursement against the principal (or such
other guarantor) by the operation of Section 580d of the California Code of Civil Procedure or
otherwise. No other provision of this Guaranty shall be construed as limiting the generality of
any of the covenants and waivers set forth in this paragraph. As provided below, this Agreement
shall be governed by, and shall be construed and enforced in accordance with the laws of the State
of New York. This
paragraph is included solely out of an abundance of caution, and shall not be construed to
mean that any of the above-referenced provisions of California law are in any way applicable to
this Guaranty or to any of the Guaranteed Obligations.

 

2

 

5. Obligations Independent. The obligations of the Guarantor hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the
obligations of any other guarantor, and a separate action may be brought against the Guarantor to
enforce this Guaranty whether or not any Borrower or any other Person is joined as a party.

6. Subrogation. The Guarantor shall not exercise any right of subrogation, contribution,
indemnity, reimbursement or similar rights with respect to any payments it makes under this
Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have
been paid and performed in full and any commitments of the Lenders or other Secured Parties with
respect to the Guaranteed Obligations are terminated. If any amounts are paid to the Guarantor in
violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent (or in the case of
obligations arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the
applicable Cash Management Bank or Hedge Bank) to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

7. Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all
Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until
all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in
cash and any commitments of the Lenders or other Secured Parties with respect to the Guaranteed
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full
force and effect or be revived, as the case may be, if any payment by or on behalf of any Borrower
or the Guarantor or any other guarantor of the Guaranteed Obligations is made, or any Secured Party
exercises its right of setoff in respect of the Guaranteed Obligations and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by any
Secured Party in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment
had not been made or such setoff had not occurred and whether or not any Lender is in possession of
or has released this Guaranty and regardless of any prior revocation, rescission, termination or
reduction. The obligations of the Guarantor under this paragraph shall survive termination of this
Guaranty.

8. Subordination. The Guarantor hereby subordinates the payment of all obligations and
indebtedness of the Borrowers owing to the Guarantor, whether now existing or hereafter arising,
including but not limited to any obligation of the Borrowers to the Guarantor as subrogee of the
Secured Parties or resulting from the Guarantor’s performance under this Guaranty, to the payment
in full in cash of all Guaranteed Obligations. If the Required Lenders so request in writing after
the occurrence and during the continuance of an Event of Default (provided that no such request
shall be required after the occurrence or during the continuance of an Event of Default under
Section 8.01(f) or (g) of the Credit Agreement), any such obligation or indebtedness of the
Borrowers to the Guarantor shall be enforced and the proceeds thereof shall be paid over to
Administrative Agent on account of the Guaranteed Obligations without affecting in any manner the
liability of the Guarantor under the other provisions of the guaranty contained herein.

9. Stay of Acceleration. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed, in connection with any case commenced by or against the
Guarantor, any Borrower or any other guarantor of the Guaranteed Obligations under any Debtor
Relief Laws, or
otherwise, all such amounts shall nonetheless be payable by the Guarantor immediately upon
demand by the Secured Parties.

 

3

 

10. Expenses. The Guarantor shall pay on demand all out-of-pocket expenses (including
attorneys’ fees and expenses) in any way relating to the enforcement or protection of the Secured
Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any
incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any
incurred in the, protection or enforcement of any rights of any Lender in any proceeding any Debtor
Relief Laws. The obligations of the Guarantor under this paragraph shall survive the payment in
full of the Guaranteed Obligations and termination of this Guaranty.

11. Miscellaneous. No provision of this Guaranty may be waived, amended, supplemented or
modified, except by a written instrument executed by the Administrative Agent and the Guarantor.
No failure by the Secured Parties to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law or in equity. The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other provision herein.
Unless otherwise agreed by the Administrative Agent and the Guarantor in writing, this Guaranty is
not intended to supersede or otherwise affect any other guaranty now or hereafter given by the
Guarantor for the benefit of the Secured Parties or any term or provision thereof.

12. Condition of Borrowers. The Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from each Borrower and any other guarantor
of the Guaranteed Obligations such information concerning the financial condition, business and
operations of such Borrower and any such other guarantor as the Guarantor requires, and that the
Secured Parties have no duty, and the Guarantor is not relying on the Secured Parties at any time,
to disclose to the Guarantor any information relating to the business, operations or financial
condition of any Borrower or any other guarantor of the Guaranteed Obligations (the Guarantor
waiving any duty on the part of the Secured Parties to disclose such information and any defense
relating to the failure to provide the same).

13. Setoff. If and to the extent any payment is then due hereunder and an Event of Default
has occurred and is continuing, the Secured Parties may setoff and charge from time to time any
amount so due against any or all of the Guarantor’s accounts or deposits with each such Secured
Party, irrespective of whether or not such Secured Party shall have made any demand under this
Guaranty and although such obligations may be unmatured.

14. Representations and Warranties. The Guarantor represents and warrants that (a) it is duly
organized and, if applicable, is in good standing under the Laws of the jurisdiction of its
incorporation or organization (to the extent such concepts are relevant under the laws of the
relevant jurisdiction) and has full capacity and right to make and perform this Guaranty, and all
necessary authority has been obtained; (b) this Guaranty constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(c) the making and performance of this Guaranty does not and will not violate the provisions of any
applicable Law, except for violations that could not reasonably be expected to result in a Material
Adverse Effect, and does not and will not result in the breach of or contravention of or require
any payment to be made under any Contractual Obligation to which the Guarantor is a party or
affecting the Guarantor’s properties except for violations and breaches that could not reasonably
be expected to result in a Material Adverse Effect; and (d) all consents, approvals, licenses and
authorizations of, and filings and registrations with, any Governmental Authority
required under applicable Law for the making and performance of this Guaranty have been
obtained or made and are in full force and effect, except consents, approvals, registrations,
filings or actions the failure of which to obtain or perform could not reasonably be expected to
result in a Material Adverse Effect.

 

4

 

15. Indemnification and Survival. Without limitation on any other obligations of the
Guarantor or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by Law, indemnify, defend and save and hold harmless the Secured Parties,
and each Related Party of any of the Secured Parties (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 any Borrower or the
Guarantor or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Guaranty, any other Loan Document, any Secured Hedge Agreement or
Secured Cash Management Agreement or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, (x) in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration
of this Guaranty and the other Loan Documents (including in respect of any matters addressed in
Section 2) or (y) in the case of the Hedge Banks and Cash Management Banks and their respective
Related Parties only, the administration of the Secured Hedge Agreement and Secured Cash Management
Agreements to which they are a party, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by any Loan Party, 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 (a) 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 (b) result from a claim brought by any Loan
Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, Secured Hedge Agreement or Secured Cash Management Agreement, if
such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. The obligations of the Guarantor under this
paragraph shall survive the payment in full of the Guaranteed Obligations and the termination of
this Guaranty.

 

5

 

16. GOVERNING LAW; Assignment; Jurisdiction; Notices. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Guaranty shall (a)
bind the Guarantor and its successors and assigns, provided that the Guarantor may not assign its
rights or obligations under this Guaranty without the prior written consent of the Administrative
Agent (and any attempted assignment without such consent shall be void), and (b) inure to the
benefit of the Secured Parties and their respective successors and assigns and any Secured Party
may, without notice to the Guarantor and without affecting the Guarantor’s obligations hereunder,
assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or
in part, in accordance with the Credit Agreement. The Guarantor hereby irrevocably submits to the
non exclusive 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 Guaranty or any other Loan Document for recognition or enforcement of any judgment, and the
Guarantor 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. The Guarantor agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by Law. Nothing in this Guaranty shall affect
any right that the Administrative Agent or any other Secured Party may otherwise have to bring any
action or proceeding relating to this Guaranty, any other Loan Document, any Secured Hedge
Agreement or any Secured Cash Management Agreement against the Guarantor or its properties in the
courts of any jurisdiction. The Guarantor hereby 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 Guaranty, any other Loan Document, any
Secured Hedge Agreement or any Secured Cash Management Agreement in any court referred to above and
the Guarantor hereby waives any defense asserting an inconvenient forum in connection therewith.
Service of process in connection with such action or proceeding shall be made in the manner
provided for notices below. All notices and other communications (including any service of
process) to the Guarantor under this Guaranty shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier to the
Guarantor at its address set forth below or at such other address in the United States as may be
specified by the Guarantor in a written notice delivered to the Administrative Agent at the
Administrative Agent’s Office.

17. WAIVER OF JURY TRIAL; FINAL AGREEMENT. EACH OF THE GUARANTOR AND THE ADMINISTRATIVE AGENT
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
GUARANTY, ANY OTHER LOAN DOCUMENT, ANY SECURED HEDGE AGREEMENT OR ANY SECURED CASH MANAGEMENT
AGREEMENT 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 GUARANTY, THE OTHER LOAN DOCUMENTS, THE
SECURED HEDGE AGREEMENTS AND THE SECURED CASH MANAGEMENT AGREEMENTS TO WHICH IT IS A PARTY BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THIS GUARANTY
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

6

 

18. Severability. Wherever possible, each provision of this Guaranty will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Guaranty is prohibited by or invalid under such law, such provision will be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Guaranty. Consistent with the foregoing, and notwithstanding any
other provision of this Guaranty to the contrary, in the event that any action or proceeding is
brought in whatever form and in whatever forum seeking to invalidate the Guarantor’s obligations
under this Guaranty under any fraudulent conveyance, fraudulent transfer theory, or similar
avoidance theory, whether under state or federal law, the Guarantor, automatically and without any
further action being required of the Guarantor or any
Secured Party, shall be liable under this Guaranty only for an amount equal to the maximum
amount of liability that could have been incurred under applicable law by the Guarantor under any
guaranty of the Guaranteed Obligations (or any portion thereof) at the time of the execution and
delivery of this Guaranty (or, if such date is determined not to be the appropriate date for
determining the enforceability of the Guarantor’s obligations hereunder for fraudulent conveyance
or transfer (or similar avoidance) purposes, on the date determined to be so appropriate) without
rendering such a hypothetical guaranty voidable under applicable law relating to fraudulent
conveyance, fraudulent transfer, or any other grounds for avoidance (such highest amount determined
hereunder being the Guarantor’s “Maximum Guaranty Amount”), and not for any greater amount,
as if the stated amount of this Guaranty as to the Guarantor had instead been the Maximum Guaranty
Amount. This Section is intended solely to preserve the rights of the Secured Parties under this
Guaranty to the maximum extent not subject to avoidance under applicable law, and neither the
Guarantor nor any other Person shall have any right or claim under this Section with respect to the
limitation described in this Guaranty, except to the extent necessary so that the obligations of
the Guarantor under this Guaranty shall not be rendered voidable under applicable law.

19. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day
preceding that on which final judgment is given. The obligation of the Guarantor in respect of any
such sum due from it to the Administrative Agent or any other Secured Party hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of the Guaranty and the
Credit Agreement (the “Agreement Currency”), be discharged only to the extent that on the
Business Day following receipt by the Administrative Agent or such Secured Party, as the case may
be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such
Secured Party, as the case may be, may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the applicable Secured Party from the Guarantor in
the Agreement Currency, the Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Secured Party against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the applicable Secured Party in
such currency, such Secured Party agrees to return the amount of any excess to the Guarantor (or to
any other Person who may be entitled thereto under applicable Law).

 

7

 

IN WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the day and
year first written above.

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	
Address:  	 	 
	 	 	 

 

8

 

EXHIBIT G-2

HOLDINGS GUARANTY

FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
credit and/or financial accommodation heretofore or hereafter from time to time made or granted to
HERBALIFE INTERNATIONAL, INC. (the “Company”), HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L.
(“HIL”) and any Designated Borrower (as hereinafter defined) by the Lenders under the
Credit Agreement (as hereinafter defined), HERBALIFE LTD. (“Holdings”) as the undersigned
Guarantor (in such capacity, the “Guarantor”) hereby furnishes its guaranty (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, this
“Guaranty”) of the Guaranteed Obligations (as hereinafter defined) on the 9th day of March,
2011, as follows:

1. Guaranty. Reference is made to that certain Credit Agreement, dated as of even date
herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Credit Agreement;” the terms defined therein being used herein as therein
defined), among the Company, Holdings, HIL (the Company, Holdings, HIL and any Subsidiary of the
Company that becomes a borrower under the Credit Agreement (each such Subsidiary, a “Designated
Borrower”) are herein referred to as the “Borrowers” and each, a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender. The Guarantor hereby absolutely and unconditionally guarantees,
as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment
when due, whether at stated maturity, by required prepayment, upon acceleration, demand or
otherwise, and at all times thereafter, of all Obligations of the Company and of HIL (collectively
the “Guaranteed Obligations”). The accounts or records maintained by the Administrative
Agent and each other Secured Party shall be conclusive absent manifest error of the amount of the
Guaranteed Obligations. Any failure to so record or any error in doing so shall not, however,
limit or otherwise affect the obligation of the Guarantor hereunder to pay any amount owing with
respect to the Guaranteed Obligations. In the event of any conflict between the accounts and
records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error. This Guaranty shall not be affected by the genuineness, validity,
regularity or enforceability of the Guaranteed Obligations or any instrument or agreement
evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection,
non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the
Guaranteed Obligations which might otherwise constitute a defense to the obligations of the
Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives any defenses it may now
have or hereafter acquire in any way relating to any or all of the foregoing.

2. No Setoff or Deductions; Taxes; Payments. The Guarantor represents and warrants that it is
incorporated and resident in the jurisdiction of its incorporation or organization (to the extent
such concepts are relevant under the laws of the relevant jurisdiction). The Guarantor shall make
all payments hereunder without setoff or counterclaim and free and clear of and without deduction
for any Taxes unless the Guarantor is compelled by law to make such deduction or withholding. The
obligations hereunder shall not be affected by any acts of any Governmental Authority affecting any
Borrower or the Guarantor, including but not limited to, any restrictions on the conversion of
currency or repatriation or control of funds or any total or partial expropriation of any
Borrower’s property, or by economic, political, regulatory or other events in the countries where
any Borrower is located. All payments hereunder shall be made to the Administrative Agent, for the
account of the respective Secured Parties to which such payment is owed, in the applicable currency
at the applicable Administrative Agent’s Office and at the times specified in the Credit Agreement
(or in the case of obligations arising under any Secured
Cash Management Agreement or Secured Hedge Agreement, to the applicable Cash Management Bank
or Hedge Bank as specified in the applicable Secured Cash Management Agreement or Secured Hedge
Agreement).

 

 

 

3. Rights of Lender. The Guarantor consents and agrees that the Secured Parties may, at any
time and from time to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or
otherwise change the time for payment or the terms of the Guaranteed Obligations or any part
thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise
dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply
such security and direct the order or manner of sale thereof as the Secured Parties may determine;
and (d) release or substitute one or more of any endorsers or other guarantors of any of the
Guaranteed Obligations. Without limiting the generality of the foregoing, the Guarantor consents
to the taking of, or failure to take, any action which might in any manner or to any extent vary
the risks of the Guarantor under this Guaranty or which, but for this provision, might operate as a
discharge of the Guarantor.

4. Certain Waivers. (a) The Guarantor waives (i) any defense arising by reason of any
disability or other defense of any Borrower or any other guarantor, or the cessation from any cause
whatsoever (including any act or omission of the Secured Parties) of the liability of any Borrower;
(ii) any defense based on any claim that the Guarantor’s obligations exceed or are more burdensome
than those of any Borrower; (iii) the benefit of any statute of limitations affecting the
Guarantor’s liability hereunder; (iv) any right to require any Secured Party to proceed against any
Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any
other remedy in the Secured Parties’ power whatsoever; (v) until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, any
benefit of and any right to participate in any security now or hereafter held by the Secured
Parties; and (vi) to the fullest extent permitted by law, any and all other defenses or benefits
that may be derived from or afforded by applicable Law limiting the liability of or exonerating
guarantors or sureties.

The Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for
payment or performance, notices of nonpayment or nonperformance, protests, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence,
creation or incurrence of new or additional Guaranteed Obligations.

For purposes of this paragraph only, references to the “principal” include each of HIL and
Holdings and references to the “creditor” include each Secured Party. In accordance with Section
2856 of the California Civil Code, the Guarantor waives, until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, all
rights and defenses (i) available to the Guarantor by reason of Sections 2787 through 2855, 2899,
and 3433 of the California Civil Code, including all rights or defenses the Guarantor may have by
reason of protection afforded to the principal with respect to any of the Guaranteed Obligations,
or to any other guarantor of any of the Guaranteed Obligations with respect to any of such
guarantor’s obligations under its guarantee, in either case in accordance with the antideficiency
or other laws of the State of California limiting or discharging the principal’s Indebtedness or
such other guarantor’s obligations, including Sections 580a, 580b, 580d and 726 of the California
Code of Civil Procedure; and (ii) arising out of an election of remedies by the creditor, even
though such election, such as a nonjudicial foreclosure with respect to security for any Guaranteed
Obligation (or any obligation of any other guarantor of any of the Guaranteed Obligations), has
destroyed the Guarantor’s right of subrogation and reimbursement against the principal (or such
other guarantor) by the operation of Section 580d of the California Code of Civil Procedure or
otherwise. No other provision of this Guaranty shall be construed as limiting the generality of
any of the covenants and waivers set forth in this paragraph. As provided below, this Agreement
shall be governed
by, and shall be construed and enforced in accordance with the laws of the State of New York.
This paragraph is included solely out of an abundance of caution, and shall not be construed to
mean that any of the above-referenced provisions of California law are in any way applicable to
this Guaranty or to any of the Guaranteed Obligations.

 

2

 

5. Obligations Independent. The obligations of the Guarantor hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the
obligations of any other guarantor, and a separate action may be brought against the Guarantor to
enforce this Guaranty whether or not any Borrower or any other Person is joined as a party.

6. Subrogation. The Guarantor shall not exercise any right of subrogation, contribution,
indemnity, reimbursement or similar rights with respect to any payments it makes under this
Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have
been paid and performed in full and any commitments of the Lenders or other Secured Parties with
respect to the Guaranteed Obligations are terminated. If any amounts are paid to the Guarantor in
violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent (or in the case of
obligations arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the
applicable Cash Management Bank or Hedge Bank) to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

7. Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all
Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until
all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in
cash and any commitments of the Lenders or other Secured Parties with respect to the Guaranteed
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full
force and effect or be revived, as the case may be, if any payment by or on behalf of any Borrower
or the Guarantor or any other guarantor of the Guaranteed Obligations is made, or any Secured Party
exercises its right of setoff in respect of the Guaranteed Obligations and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by any
Secured Party in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment
had not been made or such setoff had not occurred and whether or not any Lender is in possession of
or has released this Guaranty and regardless of any prior revocation, rescission, termination or
reduction. The obligations of the Guarantor under this paragraph shall survive termination of this
Guaranty.

8. Subordination. The Guarantor hereby subordinates the payment of all obligations and
indebtedness of the Borrowers owing to the Guarantor, whether now existing or hereafter arising,
including but not limited to any obligation of the Borrowers to the Guarantor as subrogee of the
Secured Parties or resulting from the Guarantor’s performance under this Guaranty, to the payment
in full in cash of all Guaranteed Obligations. If the Required Lenders so request in writing after
the occurrence and during the continuance of an Event of Default (provided that no such request
shall be required after the occurrence or during the continuance of an Event of Default under
Section 8.01(f) or (g) of the Credit Agreement), any such obligation or indebtedness of the
Borrowers to the Guarantor shall be enforced and the proceeds thereof shall be paid over to
Administrative Agent on account of the Guaranteed Obligations without affecting in any manner the
liability of the Guarantor under the other provisions of the guaranty contained herein.

9. Stay of Acceleration. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed, in connection with any case commenced by or against the
Guarantor, any Borrower or any other guarantor of the Guaranteed Obligations under any Debtor
Relief Laws, or
otherwise, all such amounts shall nonetheless be payable by the Guarantor immediately upon
demand by the Secured Parties.

 

3

 

10. Expenses. The Guarantor shall pay on demand all out-of-pocket expenses (including
attorneys’ fees and expenses) in any way relating to the enforcement or protection of the Secured
Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any
incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any
incurred in the, protection or enforcement of any rights of any Lender in any proceeding any Debtor
Relief Laws. The obligations of the Guarantor under this paragraph shall survive the payment in
full of the Guaranteed Obligations and termination of this Guaranty.

11. Miscellaneous. No provision of this Guaranty may be waived, amended, supplemented or
modified, except by a written instrument executed by the Administrative Agent and the Guarantor.
No failure by the Secured Parties to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law or in equity. The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other provision herein.
Unless otherwise agreed by the Administrative Agent and the Guarantor in writing, this Guaranty is
not intended to supersede or otherwise affect any other guaranty now or hereafter given by the
Guarantor for the benefit of the Secured Parties or any term or provision thereof.

12. Condition of Borrowers. The Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from each Borrower and any other guarantor
of the Guaranteed Obligations such information concerning the financial condition, business and
operations of such Borrower and any such other guarantor as the Guarantor requires, and that the
Secured Parties have no duty, and the Guarantor is not relying on the Secured Parties at any time,
to disclose to the Guarantor any information relating to the business, operations or financial
condition of any Borrower or any other guarantor of the Guaranteed Obligations (the Guarantor
waiving any duty on the part of the Secured Parties to disclose such information and any defense
relating to the failure to provide the same).

13. Setoff. If and to the extent any payment is then due hereunder and an Event of Default
has occurred and is continuing, the Secured Parties may setoff and charge from time to time any
amount so due against any or all of the Guarantor’s accounts or deposits with each such Secured
Party, irrespective of whether or not such Secured Party shall have made any demand under this
Guaranty and although such obligations may be unmatured.

14. Representations and Warranties. The Guarantor represents and warrants that (a) it is duly
incorporated and, if applicable, is in good standing under the Laws of the jurisdiction of its
incorporation or organization (to the extent such concepts are relevant under the laws of the
relevant jurisdiction) and has full capacity and right to make and perform this Guaranty, and all
necessary authority has been obtained; (b) this Guaranty constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(c) the making and performance of this Guaranty does not and will not violate the provisions of any
applicable Law, except for violations that could not reasonably be expected to result in a Material
Adverse Effect, and does not and will not result in the breach of or contravention of or require
any payment to be made under any Contractual Obligation to which the Guarantor is a party or
affecting the Guarantor’s properties except for violations and breaches that could not reasonably
be expected to result in a Material Adverse Effect; and (d) all consents, approvals, licenses and
authorizations of, and filings and registrations with, any Governmental Authority
required under applicable Law for the making and performance of this Guaranty have been
obtained or made and are in full force and effect, except (i) notices, filings and the payment of
appropriate stamp or other duties in connection with the enforcement of this Guaranty against any
Foreign Obligor, if applicable, in their jurisdiction of incorporation or organization and (ii)
consents, approvals, registrations, filings or actions the failure of which to obtain or perform
could not reasonably be expected to result in a Material Adverse Effect.

 

4

 

15. Indemnification and Survival. Without limitation on any other obligations of the
Guarantor or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by Law, indemnify, defend and save and hold harmless the Secured Parties,
and each Related Party of any of the Secured Parties (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 any Borrower or the
Guarantor or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Guaranty, any other Loan Document, any Secured Hedge Agreement or
Secured Cash Management Agreement or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, (x) in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration
of this Guaranty and the other Loan Documents (including in respect of any matters addressed in
Section 2) or (y) in the case of the Hedge Banks and Cash Management Banks and their respective
Related Parties only, the administration of the Secured Hedge Agreement and Secured Cash Management
Agreements to which they are a party, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by any Loan Party, 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 (a) 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 (b) result from a claim brought by any Loan
Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, Secured Hedge Agreement or Secured Cash Management Agreement, if
such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. The obligations of the Guarantor under this
paragraph shall survive the payment in full of the Guaranteed Obligations and the termination of
this Guaranty.

 

5

 

16. GOVERNING LAW; Assignment; Jurisdiction; Notices. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Guaranty shall (a)
bind the Guarantor and its successors and assigns, provided that the Guarantor may not assign its
rights or obligations under this Guaranty without the prior written consent of the Administrative
Agent (and any attempted assignment without such consent shall be void), and (b) inure to the
benefit of the Secured Parties and their respective successors and assigns and any Secured Party
may, without notice to the Guarantor and without affecting the Guarantor’s obligations hereunder,
assign, sell or grant participations in the Guaranteed Obligations
and this Guaranty, in whole or in part, in accordance with the Credit Agreement. The
Guarantor hereby irrevocably submits to the non exclusive 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 Guaranty or any other Loan Document for recognition or enforcement of
any judgment, and the Guarantor 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. The Guarantor agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by Law. Nothing in this
Guaranty shall affect any right that the Administrative Agent or any other Secured Party may
otherwise have to bring any action or proceeding relating to this Guaranty, any other Loan
Document, any Secured Hedge Agreement or any Secured Cash Management Agreement against the
Guarantor or its properties in the courts of any jurisdiction. The Guarantor hereby 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 Guaranty, any other
Loan Document, any Secured Hedge Agreement or any Secured Cash Management Agreement in any court
referred to above and the Guarantor hereby waives any defense asserting an inconvenient forum in
connection therewith. Service of process in connection with such action or proceeding shall be
made in the manner provided for notices below. All notices and other communications (including any
service of process) to the Guarantor under this Guaranty shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier
to the Guarantor at its address set forth below or at such other address in the United States as
may be specified by the Guarantor in a written notice delivered to the Administrative Agent at the
Administrative Agent’s Office.

17. WAIVER OF JURY TRIAL; FINAL AGREEMENT. EACH OF THE GUARANTOR AND THE ADMINISTRATIVE AGENT
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
GUARANTY, ANY OTHER LOAN DOCUMENT, ANY SECURED HEDGE AGREEMENT OR ANY SECURED CASH MANAGEMENT
AGREEMENT 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 GUARANTY, THE OTHER LOAN DOCUMENTS, THE
SECURED HEDGE AGREEMENTS AND THE SECURED CASH MANAGEMENT AGREEMENTS TO WHICH IT IS A PARTY BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THIS GUARANTY
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

6

 

18. Severability. Wherever possible, each provision of this Guaranty will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Guaranty is prohibited by or invalid under such law, such provision will be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Guaranty. Consistent with the foregoing, and notwithstanding any
other provision of this Guaranty to the contrary, in the event that any action or proceeding is
brought in whatever form and in whatever forum seeking to invalidate the Guarantor’s obligations
under this Guaranty under any fraudulent
conveyance, fraudulent transfer theory, or similar avoidance theory, whether under state or
federal law, the Guarantor, automatically and without any further action being required of the
Guarantor or any Secured Party, shall be liable under this Guaranty only for an amount equal to the
maximum amount of liability that could have been incurred under applicable law by the Guarantor
under any guaranty of the Guaranteed Obligations (or any portion thereof) at the time of the
execution and delivery of this Guaranty (or, if such date is determined not to be the appropriate
date for determining the enforceability of the Guarantor’s obligations hereunder for fraudulent
conveyance or transfer (or similar avoidance) purposes, on the date determined to be so
appropriate) without rendering such a hypothetical guaranty voidable under applicable law relating
to fraudulent conveyance, fraudulent transfer, or any other grounds for avoidance (such highest
amount determined hereunder being the Guarantor’s “Maximum Guaranty Amount”), and not for
any greater amount, as if the stated amount of this Guaranty as to the Guarantor had instead been
the Maximum Guaranty Amount. This Section is intended solely to preserve the rights of the Secured
Parties under this Guaranty to the maximum extent not subject to avoidance under applicable law,
and neither the Guarantor nor any other Person shall have any right or claim under this Section
with respect to the limitation described in this Guaranty, except to the extent necessary so that
the obligations of the Guarantor under this Guaranty shall not be rendered voidable under
applicable law.

19. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day
preceding that on which final judgment is given. The obligation of the Guarantor in respect of any
such sum due from it to the Administrative Agent or any other Secured Party hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of the Guaranty and the
Credit Agreement (the “Agreement Currency”), be discharged only to the extent that on the
Business Day following receipt by the Administrative Agent or such Secured Party, as the case may
be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such
Secured Party, as the case may be, may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the applicable Secured Party from the Guarantor in
the Agreement Currency, the Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Secured Party against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the applicable Secured Party in
such currency, such Secured Party agrees to return the amount of any excess to the Guarantor (or to
any other Person who may be entitled thereto under applicable Law).

 

7

 

IN WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the day and
year first written above.

	 	 	 	 	 
	 	HERBALIFE LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	
Address:  	 	 
	 	 	 

 

8

 

EXHIBIT G-3

HIL GUARANTY

FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
credit and/or financial accommodation heretofore or hereafter from time to time made or granted to
HERBALIFE INTERNATIONAL, INC. (the “Company”), HERBALIFE LTD. (“Holdings”) and any
Designated Borrower (as hereinafter defined) by the Lenders under the Credit Agreement (as
hereinafter defined), HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L. (“HIL”) as the
undersigned Guarantor (in such capacity, the “Guarantor”) hereby furnishes its guaranty (as
amended, restated, extended, supplemented or otherwise modified in writing from time to time, this
“Guaranty”) of the Guaranteed Obligations (as hereinafter defined) on the 9th day of March,
2011, as follows:

1. Guaranty. Reference is made to that certain Credit Agreement, dated as of even date
herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Credit Agreement;” the terms defined therein being used herein as therein
defined), among the Company, Holdings, HIL (the Company, Holdings, HIL and any Subsidiary of the
Company that becomes a borrower under the Credit Agreement (each such Subsidiary, a “Designated
Borrower”) are herein referred to as the “Borrowers” and each, a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender. The Guarantor hereby absolutely and unconditionally guarantees,
as a guaranty of payment and performance and not merely as a guaranty of collection, prompt payment
when due, whether at stated maturity, by required prepayment, upon acceleration, demand or
otherwise, and at all times thereafter, of all Obligations of the Company and of Holdings
(collectively the “Guaranteed Obligations”); provided, notwithstanding anything to
the contrary contained in this Guaranty, that the maximum amount payable by any Guarantor which is
organized under the laws of the Grand-Duchy of Luxembourg under this Guaranty shall be limited, at
any time, to an aggregate amount (without duplication) not exceeding the greater sum of (i)
ninety-five percent (95%) of such Luxembourg Guarantor’s net assets (“capitaux propres”) determined
in accordance with article 34 of the Luxembourg law of 19 December 2002 on the register of Commerce
and Companies, on accounting and on annual accounts of the companies, as shown on the latest
financial statements (“comptes annuels”) available at the date of this Guaranty and approved by the
shareholders of the applicable Guarantor and certified by the statutory or the independent auditor,
as the case may be, (ii) ninety-five percent (95%) of such Luxembourg Guarantor’s net assets
(“capitaux propres”) determined in accordance with article 34 of the Luxembourg law of 19 December
2002 on the register of Commerce and Companies, on accounting and on annual accounts of the
companies, as shown on the latest financial statements (“comptes annuels”) available at the date of
the relevant payment hereunder and approved by the shareholders of the applicable Guarantor and
certified by the statutory or the independent auditor, as the case may be. No Guaranteed
Obligations will extend to include any obligation or liability and no security granted by a
Luxembourg Guarantor will secure any Guaranteed Obligations, in each case, if to do so would be
unlawful financial assistance in respect of the acquisition of shares in itself under Article 49-6
or would constitute a misuse of corporate assets (“abus des biens sociaux”) as defined at Article
171-1 of the Luxembourg Act on commercial companies of 10 August 1915, as amended. The accounts or
records maintained by the Administrative Agent and each other Secured Party shall be conclusive
absent manifest error of the amount of the Guaranteed Obligations. Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation of the Guarantor
hereunder to pay any amount owing with respect to the Guaranteed Obligations. In the event of any
conflict between the accounts and records maintained by any Lender and the accounts and records of
the Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. This Guaranty shall not be affected by the
genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any
instrument or agreement evidencing any Guaranteed Obligations, or by the existence, validity,
enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or
circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to
the obligations of the Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives
any defenses it may now have or hereafter acquire in any way relating to any or all of the
foregoing.

 

 

 

2. No Setoff or Deductions; Taxes; Payments. The Guarantor represents and warrants that it is
organized and resident in the jurisdiction of its incorporation or organization (to the extent such
concepts are relevant under the laws of the relevant jurisdiction). The Guarantor shall make all
payments hereunder without setoff or counterclaim and free and clear of and without deduction for
any Taxes unless the Guarantor is compelled by law to make such deduction or withholding. The
obligations hereunder shall not be affected by any acts of any Governmental Authority affecting any
Borrower or the Guarantor, including but not limited to, any restrictions on the conversion of
currency or repatriation or control of funds or any total or partial expropriation of any
Borrower’s property, or by economic, political, regulatory or other events in the countries where
any Borrower is located. All payments hereunder shall be made to the Administrative Agent, for the
account of the respective Secured Parties to which such payment is owed, in the applicable currency
at the applicable Administrative Agent’s Office and at the times specified in the Credit Agreement
(or in the case of obligations arising under any Secured Cash Management Agreement or Secured Hedge
Agreement, to the applicable Cash Management Bank or Hedge Bank as specified in the applicable
Secured Cash Management Agreement or Secured Hedge Agreement).

3. Rights of Lender. The Guarantor consents and agrees that the Secured Parties may, at any
time and from time to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or
otherwise change the time for payment or the terms of the Guaranteed Obligations or any part
thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise
dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply
such security and direct the order or manner of sale thereof as the Secured Parties may determine;
and (d) release or substitute one or more of any endorsers or other guarantors of any of the
Guaranteed Obligations. Without limiting the generality of the foregoing, the Guarantor consents
to the taking of, or failure to take, any action which might in any manner or to any extent vary
the risks of the Guarantor under this Guaranty or which, but for this provision, might operate as a
discharge of the Guarantor.

4. Certain Waivers. (a) The Guarantor waives (i) any defense arising by reason of any
disability or other defense of any Borrower or any other guarantor, or the cessation from any cause
whatsoever (including any act or omission of the Secured Parties) of the liability of any Borrower;
(ii) any defense based on any claim that the Guarantor’s obligations exceed or are more burdensome
than those of any Borrower; (iii) the benefit of any statute of limitations affecting the
Guarantor’s liability hereunder; (iv) any right to require any Secured Party to proceed against any
Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any
other remedy in the Secured Parties’ power whatsoever; (v) until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, any
benefit of and any right to participate in any security now or hereafter held by the Secured
Parties; and (vi) to the fullest extent permitted by law, any and all other defenses or benefits
that may be derived from or afforded by applicable Law limiting the liability of or exonerating
guarantors or sureties.

The Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for
payment or performance, notices of nonpayment or nonperformance, protests, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence,
creation or incurrence of new or additional Guaranteed Obligations.

 

2

 

For purposes of this paragraph only, references to the “principal” include each of HIL and
Holdings and references to the “creditor” include each Secured Party. In accordance with Section
2856 of the California Civil Code, the Guarantor waives, until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, all
rights and defenses (i) available to the Guarantor by reason of Sections 2787 through 2855, 2899,
and 3433 of the California Civil Code, including all rights or defenses the Guarantor may have by
reason of protection afforded to the principal with respect to any of the Guaranteed Obligations,
or to any other guarantor of any of the Guaranteed Obligations with respect to any of such
guarantor’s obligations under its guarantee, in either case in accordance with the antideficiency
or other laws of the State of California limiting or discharging the principal’s Indebtedness or
such other guarantor’s obligations, including Sections 580a, 580b, 580d and 726 of the California
Code of Civil Procedure; and (ii) arising out of an election of remedies by the creditor, even
though such election, such as a nonjudicial foreclosure with respect to security for any Guaranteed
Obligation (or any obligation of any other guarantor of any of the Guaranteed Obligations), has
destroyed the Guarantor’s right of subrogation and reimbursement against the principal (or such
other guarantor) by the operation of Section 580d of the California Code of Civil Procedure or
otherwise. No other provision of this Guaranty shall be construed as limiting the generality of
any of the covenants and waivers set forth in this paragraph. As provided below, this Agreement
shall be governed by, and shall be construed and enforced in accordance with the laws of the State
of New York. This paragraph is included solely out of an abundance of caution, and shall not be
construed to mean that any of the above-referenced provisions of California law are in any way
applicable to this Guaranty or to any of the Guaranteed Obligations.

5. Obligations Independent. The obligations of the Guarantor hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the
obligations of any other guarantor, and a separate action may be brought against the Guarantor to
enforce this Guaranty whether or not any Borrower or any other Person is joined as a party.

6. Subrogation. The Guarantor shall not exercise any right of subrogation, contribution,
indemnity, reimbursement or similar rights with respect to any payments it makes under this
Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have
been paid and performed in full and any commitments of the Lenders or other Secured Parties with
respect to the Guaranteed Obligations are terminated. If any amounts are paid to the Guarantor in
violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent (or in the case of
obligations arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the
applicable Cash Management Bank or Hedge Bank) to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

7. Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all
Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until
all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in
cash and any commitments of the Lenders or other Secured Parties with respect to the Guaranteed
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full
force and effect or be revived, as the case may be, if any payment by or on behalf of any Borrower
or the Guarantor or any other guarantor of the Guaranteed Obligations is made, or any Secured Party
exercises its right of setoff in respect of the Guaranteed Obligations and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by any
Secured Party in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment
had not been made or such setoff had not occurred and whether or not any Lender is in possession of
or has released this Guaranty and regardless of any prior revocation,
rescission, termination or reduction. The obligations of the Guarantor under this paragraph
shall survive termination of this Guaranty.

 

3

 

8. Subordination. The Guarantor hereby subordinates the payment of all obligations and
indebtedness of the Borrowers owing to the Guarantor, whether now existing or hereafter arising,
including but not limited to any obligation of the Borrowers to the Guarantor as subrogee of the
Secured Parties or resulting from the Guarantor’s performance under this Guaranty, to the payment
in full in cash of all Guaranteed Obligations. If the Required Lenders so request in writing after
the occurrence and during the continuance of an Event of Default (provided that no such request
shall be required after the occurrence or during the continuance of an Event of Default under
Section 8.01(f) or (g) of the Credit Agreement), any such obligation or indebtedness of the
Borrowers to the Guarantor shall be enforced and the proceeds thereof shall be paid over to
Administrative Agent on account of the Guaranteed Obligations without affecting in any manner the
liability of the Guarantor under the other provisions of the guaranty contained herein.

9. Stay of Acceleration. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed, in connection with any case commenced by or against the
Guarantor, any Borrower or any other guarantor of the Guaranteed Obligations under any Debtor
Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantor
immediately upon demand by the Secured Parties.

10. Expenses. The Guarantor shall pay on demand all out-of-pocket expenses (including
attorneys’ fees and expenses) in any way relating to the enforcement or protection of the Secured
Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any
incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any
incurred in the, protection or enforcement of any rights of any Lender in any proceeding any Debtor
Relief Laws. The obligations of the Guarantor under this paragraph shall survive the payment in
full of the Guaranteed Obligations and termination of this Guaranty.

11. Miscellaneous. No provision of this Guaranty may be waived, amended, supplemented or
modified, except by a written instrument executed by the Administrative Agent and the Guarantor.
No failure by the Secured Parties to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law or in equity. The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other provision herein.
Unless otherwise agreed by the Administrative Agent and the Guarantor in writing, this Guaranty is
not intended to supersede or otherwise affect any other guaranty now or hereafter given by the
Guarantor for the benefit of the Secured Parties or any term or provision thereof.

12. Condition of Borrowers. The Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from each Borrower and any other guarantor
of the Guaranteed Obligations such information concerning the financial condition, business and
operations of such Borrower and any such other guarantor as the Guarantor requires, and that the
Secured Parties have no duty, and the Guarantor is not relying on the Secured Parties at any time,
to disclose to the Guarantor any information relating to the business, operations or financial
condition of any Borrower or any other guarantor of the Guaranteed Obligations (the Guarantor
waiving any duty on the part of the Secured Parties to disclose such information and any defense
relating to the failure to provide the same).

13. Setoff. If and to the extent any payment is then due hereunder and an Event of Default
has occurred and is continuing, the Secured Parties may setoff and charge from time to time any
amount
so due against any or all of the Guarantor’s accounts or deposits with each such Secured
Party, irrespective of whether or not such Secured Party shall have made any demand under this
Guaranty and although such obligations may be unmatured.

 

4

 

14. Representations and Warranties. The Guarantor represents and warrants that (a) it is duly
organized and, if applicable, is in good standing under the Laws of the jurisdiction of its
incorporation or organization (to the extent such concepts are relevant under the laws of the
relevant jurisdiction) and has full capacity and right to make and perform this Guaranty, and all
necessary authority has been obtained; (b) this Guaranty constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, subject to (i) applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law and (ii) the Foreign Obligor Enforceability Exceptions, if applicable; (c) the making and
performance of this Guaranty does not and will not violate the provisions of any applicable Law,
except for violations that could not reasonably be expected to result in a Material Adverse Effect,
and does not and will not result in the breach of or contravention of or require any payment to be
made under any Contractual Obligation to which the Guarantor is a party or affecting the
Guarantor’s properties except for violations and breaches that could not reasonably be expected to
result in a Material Adverse Effect; and (d) all consents, approvals, licenses and authorizations
of, and filings and registrations with, any Governmental Authority required under applicable Law
for the making and performance of this Guaranty have been obtained or made and are in full force
and effect, except (i) notices, filings and the payment of appropriate stamp or other duties in
connection with the enforcement of this Guaranty against any Foreign Obligor, if applicable, in
their jurisdiction of organization and (ii) consents, approvals, registrations, filings or actions
the failure of which to obtain or perform could not reasonably be expected to result in a Material
Adverse Effect.

15. Indemnification and Survival. Without limitation on any other obligations of the
Guarantor or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by Law, indemnify, defend and save and hold harmless the Secured Parties,
and each Related Party of any of the Secured Parties (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 any Borrower or the
Guarantor or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Guaranty, any other Loan Document, any Secured Hedge Agreement or
Secured Cash Management Agreement or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, (x) in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration
of this Guaranty and the other Loan Documents (including in respect of any matters addressed in
Section 2) or (y) in the case of the Hedge Banks and Cash Management Banks and their respective
Related Parties only, the administration of the Secured Hedge Agreement and Secured Cash Management
Agreements to which they are a party, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by any Loan Party, 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 (a) 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 (b) result from a claim brought by any Loan Party against
an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan Document, Secured Hedge Agreement or Secured Cash Management Agreement, if such Loan Party has
obtained a final and nonappealable judgment in its favor on such claim as determined by a court of
competent jurisdiction. The obligations of the Guarantor under this paragraph shall survive the
payment in full of the Guaranteed Obligations and the termination of this Guaranty.

 

5

 

16. GOVERNING LAW; Assignment; Jurisdiction; Notices. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Guaranty shall (a)
bind the Guarantor and its successors and assigns, provided that the Guarantor may not assign its
rights or obligations under this Guaranty without the prior written consent of the Administrative
Agent (and any attempted assignment without such consent shall be void), and (b) inure to the
benefit of the Secured Parties and their respective successors and assigns and any Secured Party
may, without notice to the Guarantor and without affecting the Guarantor’s obligations hereunder,
assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or
in part, in accordance with the Credit Agreement. The Guarantor hereby irrevocably submits to the
non exclusive 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 Guaranty or any other
Loan Document for recognition or enforcement of any judgment, and the Guarantor 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. The Guarantor agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by Law. Nothing in this Guaranty shall affect any right that the
Administrative Agent or any other Secured Party may otherwise have to bring any action or
proceeding relating to this Guaranty, any other Loan Document, any Secured Hedge Agreement or any
Secured Cash Management Agreement against the Guarantor or its properties in the courts of any
jurisdiction. The Guarantor hereby 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 Guaranty, any other Loan Document, any Secured Hedge Agreement
or any Secured Cash Management Agreement in any court referred to above and the Guarantor hereby
waives any defense asserting an inconvenient forum in connection therewith. Service of process in
connection with such action or proceeding shall be made in the manner provided for notices below.
All notices and other communications (including any service of process) to the Guarantor under this
Guaranty shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by telecopier to the Guarantor at its address set forth below
or at such other address in the United States as may be specified by the Guarantor in a written
notice delivered to the Administrative Agent at the Administrative Agent’s Office.

17. WAIVER OF JURY TRIAL; FINAL AGREEMENT. EACH OF THE GUARANTOR AND THE ADMINISTRATIVE AGENT
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
GUARANTY, ANY OTHER LOAN DOCUMENT, ANY SECURED HEDGE AGREEMENT OR ANY SECURED CASH MANAGEMENT
AGREEMENT 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 GUARANTY, THE OTHER LOAN DOCUMENTS, THE SECURED HEDGE
AGREEMENTS AND THE SECURED CASH MANAGEMENT AGREEMENTS TO WHICH IT IS A PARTY BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THIS GUARANTY REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

 

6

 

18. Severability. Wherever possible, each provision of this Guaranty will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Guaranty is prohibited by or invalid under such law, such provision will be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Guaranty. Consistent with the foregoing, and notwithstanding any
other provision of this Guaranty to the contrary, in the event that any action or proceeding is
brought in whatever form and in whatever forum seeking to invalidate the Guarantor’s obligations
under this Guaranty under any fraudulent conveyance, fraudulent transfer theory, or similar
avoidance theory, whether under state or federal law, the Guarantor, automatically and without any
further action being required of the Guarantor or any Secured Party, shall be liable under this
Guaranty only for an amount equal to the maximum amount of liability that could have been incurred
under applicable law by the Guarantor under any guaranty of the Guaranteed Obligations (or any
portion thereof) at the time of the execution and delivery of this Guaranty (or, if such date is
determined not to be the appropriate date for determining the enforceability of the Guarantor’s
obligations hereunder for fraudulent conveyance or transfer (or similar avoidance) purposes, on the
date determined to be so appropriate) without rendering such a hypothetical guaranty voidable under
applicable law relating to fraudulent conveyance, fraudulent transfer, or any other grounds for
avoidance (such highest amount determined hereunder being the Guarantor’s “Maximum Guaranty
Amount”), and not for any greater amount, as if the stated amount of this Guaranty as to the
Guarantor had instead been the Maximum Guaranty Amount. This Section is intended solely to
preserve the rights of the Secured Parties under this Guaranty to the maximum extent not subject to
avoidance under applicable law, and neither the Guarantor nor any other Person shall have any right
or claim under this Section with respect to the limitation described in this Guaranty, except to
the extent necessary so that the obligations of the Guarantor under this Guaranty shall not be
rendered voidable under applicable law.

 

7

 

19. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day
preceding that on which final judgment is given. The obligation of the Guarantor in respect of any
such sum due from it to the Administrative Agent or any other Secured Party hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of the Guaranty and the
Credit Agreement (the “Agreement Currency”), be discharged only to the extent that on the
Business Day following receipt by the Administrative Agent or such Secured Party, as the case may
be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such
Secured Party, as the case may be, may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the applicable Secured Party from the Guarantor in
the Agreement Currency, the Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Secured Party against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the applicable Secured
Party in such currency, such Secured Party agrees to return the amount of any excess to the
Guarantor (or to any other Person who may be entitled thereto under applicable Law).

 

8

 

IN WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the day and
year first written above.

	 	 	 	 	 
	 	HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

	 	 	 	 	 
	 	
Address:  	 	 
	 	 	 

 

9

 

EXHIBIT G-4

DOMESTIC SUBSIDIARY GUARANTY

FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
credit and/or financial accommodation heretofore or hereafter from time to time made or granted to
HERBALIFE INTERNATIONAL, INC. (the “Company”), HERBALIFE LTD. (“Holdings”),
HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L. (“HIL”) and any Designated Borrower (as
hereinafter defined) by the Lenders under the Credit Agreement (as hereinafter defined), each of
the undersigned Guarantors (each, in such capacity, a “Guarantor” and collectively, the
“Guarantors”) hereby furnishes its guaranty (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, this “Guaranty”) of the Guaranteed
Obligations (as hereinafter defined) on the 9th day of March, 2011, as follows:

1. Guaranty. Reference is made to that certain Credit Agreement, dated as of even date
herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Credit Agreement;” the terms defined therein being used herein as therein
defined), among the Company, Holdings, HIL (the Company, Holdings, HIL and any Subsidiary of the
Company that becomes a borrower under the Credit Agreement (each such Subsidiary, a “Designated
Borrower”) are herein referred to as the “Borrowers” and each, a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender. The Guarantors hereby absolutely and unconditionally (except to
the extent otherwise limited in accordance with applicable requirements of Law (including, in the
case of Herbalife International Do Brasil Ltda., in connection with any required central bank
approval for cash to be sent out of Brazil) or in any other guaranty required by applicable
requirements of Law), jointly and severally, guarantee, as a guaranty of payment and performance
and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by
required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of all
Obligations (collectively the “Guaranteed Obligations”). The accounts or records
maintained by the Administrative Agent and each other Secured Party shall be conclusive absent
manifest error of the amount of the Guaranteed Obligations. Any failure to so record or any error
in doing so shall not, however, limit or otherwise affect the obligation of any Guarantor hereunder
to pay any amount owing with respect to the Guaranteed Obligations. In the event of any conflict
between the accounts and records maintained by any Lender and the accounts and records of the
Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. This Guaranty shall not be affected by the
genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument
or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability,
perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance
relating to the Guaranteed Obligations which might otherwise constitute a defense to the
obligations of the Guarantors under this Guaranty, and each Guarantor hereby irrevocably waives any
defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.

2. No Setoff or Deductions; Taxes; Payments. Each Guarantor represents and warrants that it
is organized and resident in the United States of America. Each Guarantor shall make all payments
hereunder without setoff or counterclaim and free and clear of and without deduction for any Taxes
unless such Guarantor is compelled by law to make such deduction or withholding. The obligations
hereunder shall not be affected by any acts of any Governmental Authority affecting any Borrower or
any Guarantor, including but not limited to, any restrictions on the conversion of currency or
repatriation or control of funds or any total or partial expropriation of any Borrower’s property,
or by economic, political, regulatory or other events in the countries where any Borrower is
located. All payments
hereunder shall be made to the Administrative Agent, for the account of the respective Secured
Parties to which such payment is owed, in the applicable currency at the applicable Administrative
Agent’s Office and at the times specified in the Credit Agreement (or in the case of obligations
arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the applicable
Cash Management Bank or Hedge Bank as specified in the applicable Secured Cash Management Agreement
or Secured Hedge Agreement).

 

 

 

3. Rights of Lender. Each Guarantor consents and agrees that the Secured Parties may, at any
time and from time to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or
otherwise change the time for payment or the terms of the Guaranteed Obligations or any part
thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise
dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply
such security and direct the order or manner of sale thereof as the Secured Parties may determine;
and (d) release or substitute one or more of any endorsers or other guarantors of any of the
Guaranteed Obligations. Without limiting the generality of the foregoing, each Guarantor consents
to the taking of, or failure to take, any action which might in any manner or to any extent vary
the risks of such Guarantor under this Guaranty or which, but for this provision, might operate as
a discharge of such Guarantor.

4. Certain Waivers. (a) Each Guarantor waives (i) any defense arising by reason of any
disability or other defense of any Borrower or any other guarantor, or the cessation from any cause
whatsoever (including any act or omission of the Secured Parties) of the liability of any Borrower;
(ii) any defense based on any claim that such Guarantor’s obligations exceed or are more burdensome
than those of any Borrower; (iii) the benefit of any statute of limitations affecting such
Guarantor’s liability hereunder; (iv) any right to require any Secured Party to proceed against any
Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any
other remedy in the Secured Parties’ power whatsoever; (v) until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, any
benefit of and any right to participate in any security now or hereafter held by the Secured
Parties; and (vi) to the fullest extent permitted by law, any and all other defenses or benefits
that may be derived from or afforded by applicable Law limiting the liability of or exonerating
guarantors or sureties.

Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands
for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence,
creation or incurrence of new or additional Guaranteed Obligations.

For purposes of this paragraph only, references to the “principal” include each of HIL and
Holdings and references to the “creditor” include each Secured Party. In accordance with Section
2856 of the California Civil Code, each Guarantor waives, until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, all
rights and defenses (i) available to such Guarantor by reason of Sections 2787 through 2855, 2899,
and 3433 of the California Civil Code, including all rights or defenses such Guarantor may have by
reason of protection afforded to the principal with respect to any of the Guaranteed Obligations,
to any other Guarantor or to any other guarantor of any of the Guaranteed Obligations with respect
to any of such guarantor’s obligations under its guarantee, in any case in accordance with the
antideficiency or other laws of the State of California limiting or discharging the principal’s
Indebtedness or such other guarantor’s obligations, including Sections 580a, 580b, 580d and 726 of
the California Code of Civil Procedure; and (ii) arising out of an election of remedies by the
creditor, even though such election, such as a nonjudicial foreclosure with respect to security for
any Guaranteed Obligation (or any obligation of any other guarantor of any of the Guaranteed
Obligations), has destroyed such Guarantor’s right of subrogation and
reimbursement against the principal (or such other guarantor) by the operation of Section 580d
of the California Code of Civil Procedure or otherwise. No other provision of this Guaranty shall
be construed as limiting the generality of any of the covenants and waivers set forth in this
paragraph. As provided below, this Agreement shall be governed by, and shall be construed and
enforced in accordance with the laws of the State of New York. This paragraph is included solely
out of an abundance of caution, and shall not be construed to mean that any of the above-referenced
provisions of California law are in any way applicable to this Guaranty or to any of the Guaranteed
Obligations.

 

2

 

5. Obligations Independent. The obligations of the Guarantors hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the
obligations of any other guarantor, and a separate action may be brought against any Guarantor to
enforce this Guaranty whether or not any Borrower, any other Guarantor or any other Person is
joined as a party.

6. Subrogation. No Guarantor shall exercise any right of subrogation, contribution,
indemnity, reimbursement or similar rights with respect to any payments it makes under this
Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have
been paid and performed in full and any commitments of the Lenders or other Secured Parties with
respect to the Guaranteed Obligations are terminated. If any amounts are paid to any Guarantor in
violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent (or in the case of
obligations arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the
applicable Cash Management Bank or Hedge Bank) to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

7. Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all
Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until
all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in
cash and any commitments of the Lenders or other Secured Parties with respect to the Guaranteed
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full
force and effect or be revived, as the case may be, if any payment by or on behalf of any Borrower
or any Guarantor or any other guarantor of the Guaranteed Obligations is made, or any Secured Party
exercises its right of setoff in respect of the Guaranteed Obligations and such payment or the
proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement entered into by any
Secured Party in its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment
had not been made or such setoff had not occurred and whether or not any Lender is in possession of
or has released this Guaranty and regardless of any prior revocation, rescission, termination or
reduction. The obligations of the Guarantors under this paragraph shall survive termination of
this Guaranty.

8. Subordination. Each Guarantor hereby subordinates the payment of all obligations and
indebtedness of the Borrowers or any other Guarantor owing to such Guarantor, whether now existing
or hereafter arising, including but not limited to any obligation of the Borrowers to such
Guarantor as subrogee of the Secured Parties or resulting from such Guarantor’s performance under
this Guaranty, to the payment in full in cash of all Guaranteed Obligations. If the Required
Lenders so request in writing after the occurrence and during the continuance of an Event of
Default (provided that no such request shall be required after the occurrence or during the
continuance of an Event of Default under Section 8.01(f) or (g) of the Credit Agreement), any such
obligation or indebtedness of the Borrowers to any Guarantor shall be enforced and the proceeds
thereof shall be paid over to Administrative Agent on account of the Guaranteed Obligations without
affecting in any manner the liability of the Guarantors under the other provisions of the guaranty
contained herein.

 

3

 

9. Stay of Acceleration. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed, in connection with any case commenced by or against any
Guarantor, any Borrower or any other guarantor of the Guaranteed Obligations under any Debtor
Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantors
immediately upon demand by the Secured Parties.

10. Expenses. The Guarantors shall pay on demand all out-of-pocket expenses (including
attorneys’ fees and expenses) in any way relating to the enforcement or protection of the Secured
Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any
incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any
incurred in the, protection or enforcement of any rights of any Lender in any proceeding any Debtor
Relief Laws. The obligations of the Guarantors under this paragraph are joint and several and
shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

11. Miscellaneous. No provision of this Guaranty may be waived, amended, supplemented or
modified, except by a written instrument executed by the Administrative Agent and the Guarantors.
No failure by the Secured Parties to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law or in equity. The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other provision herein.
Unless otherwise agreed by the Administrative Agent and the Guarantors in writing, this Guaranty is
not intended to supersede or otherwise affect any other guaranty now or hereafter given by any
Guarantor for the benefit of the Secured Parties or any term or provision thereof.

12. Condition of Borrowers. Each Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from each Borrower, each other Guarantor
and any other guarantor of the Guaranteed Obligations such information concerning the financial
condition, business and operations of such Borrower, such other Guarantor and any such other
guarantor as such Guarantor requires, and that the Secured Parties have no duty, and such Guarantor
is not relying on the Secured Parties at any time, to disclose to such Guarantor any information
relating to the business, operations or financial condition of any Borrower, any other Guarantor or
any other guarantor of the Guaranteed Obligations (the Guarantors waiving any duty on the part of
the Secured Parties to disclose such information and any defense relating to the failure to provide
the same).

13. Setoff. If and to the extent any payment is then due hereunder and an Event of Default
has occurred and is continuing, the Secured Parties may setoff and charge from time to time any
amount so due against any or all of any Guarantor’s accounts or deposits with each such Secured
Party, irrespective of whether or not such Secured Party shall have made any demand under this
Guaranty and although such obligations may be unmatured.

14. Representations and Warranties. Each Guarantor represents and warrants that (a) it is
duly organized and, if applicable and except prior to the satisfaction of the covenant set forth in
Section 6.16 of the Credit Agreement in the case of Herbalife Taiwan, is in good standing under the
Laws of the jurisdiction of its incorporation or organization (to the extent such concepts are
relevant under the laws of the relevant jurisdiction) and has full capacity and right to make and
perform this Guaranty, and all necessary authority has been obtained; (b) this Guaranty constitutes
its legal, valid and binding obligation enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law; (c) the making and performance of this Guaranty does not and will
not violate the provisions of any applicable Law, except for violations that
could not reasonably be expected to result in a Material Adverse Effect, and does not and will
not result in the breach of or contravention of or require any payment to be made under any
Contractual Obligation to which such Guarantor is a party or affecting such Guarantor’s properties
except for violations and breaches that could not reasonably be expected to result in a Material
Adverse Effect; and (d) all consents, approvals, licenses and authorizations of, and filings and
registrations with, any Governmental Authority required under applicable Law for the making and
performance of this Guaranty have been obtained or made and are in full force and effect, except
consents, approvals, registrations, filings or actions the failure of which to obtain or perform
could not reasonably be expected to result in a Material Adverse Effect.

 

4

 

15. Indemnification and Survival. Without limitation on any other obligations of the
Guarantors or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by Law, indemnify, defend and save and hold harmless the Secured Parties,
and each Related Party of any of the Secured Parties (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 any Borrower or any
Guarantor or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Guaranty, any other Loan Document, any Secured Hedge Agreement or
Secured Cash Management Agreement or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, (x) in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration
of this Guaranty and the other Loan Documents (including in respect of any matters addressed in
Section 2) or (y) in the case of the Hedge Banks and Cash Management Banks and their respective
Related Parties only, the administration of the Secured Hedge Agreement and Secured Cash Management
Agreements to which they are a party, (ii) any Loan or Letter of Credit or the use or proposed use
of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of its
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of its
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by any Loan Party, 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 (a) 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 (b) result from a claim brought by any Loan
Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, Secured Hedge Agreement or Secured Cash Management Agreement, if
such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction. The obligations of the Guarantors under this
paragraph are joint and several and shall survive the payment in full of the Guaranteed Obligations
and the termination of this Guaranty.

 

5

 

16. GOVERNING LAW; Assignment; Jurisdiction; Notices. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Guaranty shall (a)
bind each Guarantor and its successors and assigns, provided that no Guarantor may assign its
rights or obligations under this Guaranty without the prior written consent of the Administrative
Agent (and any attempted assignment
without such consent shall be void), and (b) inure to the benefit of the Secured Parties and
their respective successors and assigns and any Secured Party may, without notice to the Guarantors
and without affecting the Guarantors’ obligations hereunder, assign, sell or grant participations
in the Guaranteed Obligations and this Guaranty, in whole or in part, in accordance with the Credit
Agreement. Each Guarantor hereby irrevocably submits to the non exclusive 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 Guaranty or any other Loan Document for recognition
or enforcement of any judgment, and each Guarantor 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. Each
Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.
Nothing in this Guaranty shall affect any right that the Administrative Agent or any other Secured
Party may otherwise have to bring any action or proceeding relating to this Guaranty, any other
Loan Document, any Secured Hedge Agreement or any Secured Cash Management Agreement against such
Guarantor or its properties in the courts of any jurisdiction. Each Guarantor hereby 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 Guaranty, any
other Loan Document, any Secured Hedge Agreement or any Secured Cash Management Agreement in any
court referred to above and each Guarantor hereby waives any defense asserting an inconvenient
forum in connection therewith. Service of process in connection with such action or proceeding
shall be made in the manner provided for notices below. All notices and other communications
(including any service of process) to the Guarantors under this Guaranty shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier to each Guarantor at its address set forth below or at such other address in the
United States as may be specified by the applicable Guarantor in a written notice delivered to the
Administrative Agent at the Administrative Agent’s Office.

17. WAIVER OF JURY TRIAL; FINAL AGREEMENT. EACH GUARANTOR AND THE ADMINISTRATIVE AGENT EACH
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
GUARANTY, ANY OTHER LOAN DOCUMENT, ANY SECURED HEDGE AGREEMENT OR ANY SECURED CASH MANAGEMENT
AGREEMENT 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 GUARANTY, THE OTHER LOAN DOCUMENTS, THE
SECURED HEDGE AGREEMENTS AND THE SECURED CASH MANAGEMENT AGREEMENTS TO WHICH IT IS A PARTY BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THIS GUARANTY
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

6

 

18. Severability. Wherever possible, each provision of this Guaranty will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Guaranty is prohibited by or invalid under such law, such provision will be ineffective to the
extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Guaranty. Consistent with the foregoing, and notwithstanding any
other provision of this Guaranty to the contrary, in the event that any action or proceeding is
brought in whatever form and in whatever forum seeking to invalidate any Guarantor’s obligations
under this Guaranty under any fraudulent conveyance, fraudulent transfer theory, or similar
avoidance theory, whether under state or federal law, such Guarantor (the “Affected
Guarantor”), automatically and without any further action being required of the Affected
Guarantor or any Secured Party, shall be liable under this Guaranty only for an amount equal to the
maximum amount of liability that could have been incurred under applicable law by the Affected
Guarantor under any guaranty of the Guaranteed Obligations (or any portion thereof) at the time of
the execution and delivery of this Guaranty (or, if such date is determined not to be the
appropriate date for determining the enforceability of the Affected Guarantor’s obligations
hereunder for fraudulent conveyance or transfer (or similar avoidance) purposes, on the date
determined to be so appropriate) without rendering such a hypothetical guaranty voidable under
applicable law relating to fraudulent conveyance, fraudulent transfer, or any other grounds for
avoidance (such highest amount determined hereunder being the Affected Guarantor’s “Maximum
Guaranty Amount”), and not for any greater amount, as if the stated amount of this Guaranty as
to the Affected Guarantor had instead been the Maximum Guaranty Amount. This Section is intended
solely to preserve the rights of the Secured Parties under this Guaranty to the maximum extent not
subject to avoidance under applicable law, and neither the Affected Guarantor nor any other Person
shall have any right or claim under this Section with respect to the limitation described in this
Guaranty, except to the extent necessary so that the obligations of the Affected Guarantor under
this Guaranty shall not be rendered voidable under applicable law. Without limiting the generality
of the foregoing, the determination of a Maximum Guaranty Amount for the Affected Guarantor
pursuant to the provisions of the second preceding sentence of this Section shall not in any manner
reduce or otherwise affect the obligations of any other guarantors of any of the Guaranteed
Obligations.

19. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the rate of
exchange used shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency on the Business Day
preceding that on which final judgment is given. The obligation of the Guarantors in respect of
any such sum due from it to the Administrative Agent or any other Secured Party hereunder shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of the Guaranty and the
Credit Agreement (the “Agreement Currency”), be discharged only to the extent that on the
Business Day following receipt by the Administrative Agent or such Secured Party, as the case may
be, of any sum adjudged to be so due in the Judgment Currency, the Administrative Agent or such
Secured Party, as the case may be, may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the applicable Secured Party from the applicable
Guarantor in the Agreement Currency, the applicable Guarantor agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify such Secured Party against such loss. If the
amount of the Agreement Currency so purchased is greater than the sum originally due to the
applicable Secured Party in such currency, such Secured Party agrees to return the amount of any
excess to the applicable Guarantor (or to any other Person who may be entitled thereto under
applicable Law).

 

7

 

IN WITNESS WHEREOF, each Guarantor has executed and delivered this Guaranty as of the day and
year first written above.

	 	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL OF AMERICA, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL DO BRASIL LTDA	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE KOREA CO., LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

8

 

	 	 	 	 	 	 	 	 	 
	 	 	HERBALIFE TAIWAN, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

9

 

EXHIBIT G-5

FOREIGN SUBSIDIARY GUARANTY

FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of
credit and/or financial accommodation heretofore or hereafter from time to time made or granted to
HERBALIFE INTERNATIONAL, INC. (the “Company”), HERBALIFE LTD. (“Holdings”),
HERBALIFE INTERNATIONAL LUXEMBOURG S.Á.R.L. (“HIL”) and any Designated Borrower (as
hereinafter defined) by the Lenders under the Credit Agreement (as hereinafter defined), each of
the undersigned Guarantors, WH Intermediate Holdings Ltd. and WH Luxembourg Holdings S.à r.l., a
private limited liability company (société à responsabilité limitée) organized under the laws of
the Grand-Duchy of Luxembourg, with its registered office at 18, boulevard Royal L-2449 Luxembourg,
Grand-Duchy of Luxembourg, having a share capital of EUR 25,000 and registered with the Luxembourg
Register of Commerce and Companies under number B 880.06 (each, in such capacity, a
“Guarantor” and collectively, the “Guarantors”) hereby furnishes its guaranty (as
amended, restated, extended, supplemented or otherwise modified in writing from time to time, this
“Guaranty”) of the Guaranteed Obligations (as hereinafter defined) on the 9th day of March,
2011, as follows:

1. Guaranty. Reference is made to that certain Credit Agreement, dated as of even date
herewith (as amended, restated, extended, supplemented or otherwise modified in writing from time
to time, the “Credit Agreement;” the terms defined therein being used herein as therein
defined), among the Company, Holdings, HIL (the Company, Holdings, HIL and any Subsidiary of the
Company that becomes a borrower under the Credit Agreement (each such Subsidiary, a “Designated
Borrower”) are herein referred to as the “Borrowers” and each, a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender. The Guarantors hereby absolutely and unconditionally, jointly
and severally, guarantee, as a guaranty of payment and performance and not merely as a guaranty of
collection, prompt payment when due, whether at stated maturity, by required prepayment, upon
acceleration, demand or otherwise, and at all times thereafter, of all Obligations (collectively
the “Guaranteed Obligations”); provided, notwithstanding anything to the contrary
contained in this Guaranty, that the maximum amount payable by any Guarantor which is organized
under the laws of the Grand-Duchy of Luxembourg under this Guaranty shall be limited, at any time,
to an aggregate amount (without duplication) not exceeding the greater sum of (i) ninety-five
percent (95%) of such Luxembourg Guarantor’s net assets (“capitaux propres”) determined in
accordance with article 34 of the Luxembourg law of 19 December 2002 on the register of Commerce
and Companies, on accounting and on annual accounts of the companies, as shown on the latest
financial statements (“comptes annuels”) available at the date of this Guaranty and approved by the
shareholders of the applicable Guarantor and certified by the statutory or the independent auditor,
as the case may be, (ii) ninety-five percent (95%) of such Luxembourg Guarantor’s net assets
(“capitaux propres”) determined in accordance with article 34 of the Luxembourg law of 19 December
2002 on the register of Commerce and Companies, on accounting and on annual accounts of the
companies, as shown on the latest financial statements (“comptes annuels”) available at the date of
the relevant payment hereunder and approved by the shareholders of the applicable Guarantor and
certified by the statutory or the independent auditor, as the case may be. No Guaranteed
Obligations will extend to include any obligation or liability and no security granted by a
Luxembourg Guarantor will secure any Guaranteed Obligations, in each case, if to do so would be
unlawful financial assistance in respect of the acquisition of shares in itself under Article 49-6
or would constitute a misuse of corporate assets (“abus des biens sociaux”) as defined at Article
171-1 of the Luxembourg Act on commercial companies of 10 August 1915, as amended. The accounts or
records maintained by the Administrative Agent and each other Secured Party shall be conclusive
absent manifest error of the amount of the Guaranteed Obligations. Any failure to so record or any
error in doing so shall not, however, limit or otherwise affect the obligation of the Guarantor
hereunder to pay any
amount owing with respect to the Guaranteed Obligations. In the event of any conflict between
the accounts and records maintained by any Lender and the accounts and records of the
Administrative Agent in respect of such matters, the accounts and records of the Administrative
Agent shall control in the absence of manifest error. This Guaranty shall not be affected by the
genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument
or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability,
perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance
relating to the Guaranteed Obligations which might otherwise constitute a defense to the
obligations of the Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives any
defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.

 

 

 

2. No Setoff or Deductions; Taxes; Payments. Each Guarantor represents and warrants that it
is incorporated or organized and resident in the jurisdiction of its incorporation or organization
(to the extent such concepts are relevant under the laws of the relevant jurisdiction). Each
Guarantor shall make all payments hereunder without setoff or counterclaim and free and clear of
and without deduction for any Taxes unless such Guarantor is compelled by law to make such
deduction or withholding. The obligations hereunder shall not be affected by any acts of any
Governmental Authority affecting any Borrower or any Guarantor, including but not limited to, any
restrictions on the conversion of currency or repatriation or control of funds or any total or
partial expropriation of any Borrower’s property, or by economic, political, regulatory or other
events in the countries where any Borrower is located. All payments hereunder shall be made to the
Administrative Agent, for the account of the respective Secured Parties to which such payment is
owed, in the applicable currency at the applicable Administrative Agent’s Office and at the times
specified in the Credit Agreement (or in the case of obligations arising under any Secured Cash
Management Agreement or Secured Hedge Agreement, to the applicable Cash Management Bank or Hedge
Bank as specified in the applicable Secured Cash Management Agreement or Secured Hedge Agreement).

3. Rights of Lender. Each Guarantor consents and agrees that the Secured Parties may, at any
time and from time to time, without notice or demand, and without affecting the enforceability or
continuing effectiveness hereof: (a) amend, extend, renew, compromise, discharge, accelerate or
otherwise change the time for payment or the terms of the Guaranteed Obligations or any part
thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise
dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply
such security and direct the order or manner of sale thereof as the Secured Parties may determine;
and (d) release or substitute one or more of any endorsers or other guarantors of any of the
Guaranteed Obligations. Without limiting the generality of the foregoing, each Guarantor consents
to the taking of, or failure to take, any action which might in any manner or to any extent vary
the risks of such Guarantor under this Guaranty or which, but for this provision, might operate as
a discharge of such Guarantor.

4. Certain Waivers. (a) Each Guarantor waives (i) any defense arising by reason of any
disability or other defense of any Borrower or any other guarantor, or the cessation from any cause
whatsoever (including any act or omission of the Secured Parties) of the liability of any Borrower;
(ii) any defense based on any claim that such Guarantor’s obligations exceed or are more burdensome
than those of any Borrower; (iii) the benefit of any statute of limitations affecting such
Guarantor’s liability hereunder; (iv) any right to require any Secured Party to proceed against any
Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any
other remedy in the Secured Parties’ power whatsoever; (v) until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, any
benefit of and any right to participate in any security now or hereafter held by the Secured
Parties; and (vi) to the fullest extent permitted by law, any and all other defenses or benefits
that may be derived from or afforded by applicable Law limiting the liability of or exonerating
guarantors or sureties.

 

2

 

Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands
for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest,
notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect
to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence,
creation or incurrence of new or additional Guaranteed Obligations.

For purposes of this paragraph only, references to the “principal” include each of HIL and
Holdings and references to the “creditor” include each Secured Party. In accordance with Section
2856 of the California Civil Code, each Guarantor waives, until the payment in full of the
Guaranteed Obligations and termination of the Commitments made under the Credit Agreement, all
rights and defenses (i) available to such Guarantor by reason of Sections 2787 through 2855, 2899,
and 3433 of the California Civil Code, including all rights or defenses such Guarantor may have by
reason of protection afforded to the principal with respect to any of the Guaranteed Obligations,
to any other Guarantor or to any other guarantor of any of the Guaranteed Obligations with respect
to any of such guarantor’s obligations under its guarantee, in any case in accordance with the
antideficiency or other laws of the State of California limiting or discharging the principal’s
Indebtedness or such other guarantor’s obligations, including Sections 580a, 580b, 580d and 726 of
the California Code of Civil Procedure; and (ii) arising out of an election of remedies by the
creditor, even though such election, such as a nonjudicial foreclosure with respect to security for
any Guaranteed Obligation (or any obligation of any other guarantor of any of the Guaranteed
Obligations), has destroyed such Guarantor’s right of subrogation and reimbursement against the
principal (or such other guarantor) by the operation of Section 580d of the California Code of
Civil Procedure or otherwise. No other provision of this Guaranty shall be construed as limiting
the generality of any of the covenants and waivers set forth in this paragraph. As provided below,
this Agreement shall be governed by, and shall be construed and enforced in accordance with the
laws of the State of New York. This paragraph is included solely out of an abundance of caution,
and shall not be construed to mean that any of the above-referenced provisions of California law
are in any way applicable to this Guaranty or to any of the Guaranteed Obligations.

5. Obligations Independent. The obligations of the Guarantors hereunder are those of primary
obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the
obligations of any other guarantor, and a separate action may be brought against any Guarantor to
enforce this Guaranty whether or not any Borrower, any other Guarantor or any other Person is
joined as a party.

6. Subrogation. No Guarantor shall exercise any right of subrogation, contribution,
indemnity, reimbursement or similar rights with respect to any payments it makes under this
Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have
been paid and performed in full and any commitments of the Lenders or other Secured Parties with
respect to the Guaranteed Obligations are terminated. If any amounts are paid to any Guarantor in
violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of
the Secured Parties and shall forthwith be paid to the Administrative Agent (or in the case of
obligations arising under any Secured Cash Management Agreement or Secured Hedge Agreement, to the
applicable Cash Management Bank or Hedge Bank) to reduce the amount of the Guaranteed Obligations,
whether matured or unmatured.

7. Termination; Reinstatement. This Guaranty is a continuing and irrevocable guaranty of all
Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until
all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in
cash and any commitments of the Lenders or other Secured Parties with respect to the Guaranteed
Obligations are terminated. Notwithstanding the foregoing, this Guaranty shall continue in full
force and effect or be revived, as the case may be, if any payment by or on behalf of any Borrower
or any Guarantor or any other guarantor of the Guaranteed Obligations is made, or any Secured Party
exercises its right of setoff in respect of the Guaranteed Obligations and such payment or the
proceeds of such setoff or any part thereof
is subsequently invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by any Secured Party in its discretion) to be
repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Debtor Relief Laws or otherwise, all as if such payment had not been made or such setoff had not
occurred and whether or not any Lender is in possession of or has released this Guaranty and
regardless of any prior revocation, rescission, termination or reduction. The obligations of the
Guarantors under this paragraph shall survive termination of this Guaranty.

 

3

 

8. Subordination. Each Guarantor hereby subordinates the payment of all obligations and
indebtedness of the Borrowers or any other Guarantor owing to such Guarantor, whether now existing
or hereafter arising, including but not limited to any obligation of the Borrowers to such
Guarantor as subrogee of the Secured Parties or resulting from such Guarantor’s performance under
this Guaranty, to the payment in full in cash of all Guaranteed Obligations. If the Required
Lenders so request in writing after the occurrence and during the continuance of an Event of
Default (provided that no such request shall be required after the occurrence or during the
continuance of an Event of Default under Section 8.01(f) or (g) of the Credit Agreement), any such
obligation or indebtedness of the Borrowers to any Guarantor shall be enforced and the proceeds
thereof shall be paid over to Administrative Agent on account of the Guaranteed Obligations without
affecting in any manner the liability of the Guarantors under the other provisions of the guaranty
contained herein.

9. Stay of Acceleration. In the event that acceleration of the time for payment of any of the
Guaranteed Obligations is stayed, in connection with any case commenced by or against any
Guarantor, any Borrower or any other guarantor of the Guaranteed Obligations under any Debtor
Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantors
immediately upon demand by the Secured Parties.

10. Expenses. The Guarantors shall pay on demand all out-of-pocket expenses (including
attorneys’ fees and expenses) in any way relating to the enforcement or protection of the Secured
Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any
incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any
incurred in the, protection or enforcement of any rights of any Lender in any proceeding any Debtor
Relief Laws. The obligations of the Guarantors under this paragraph are joint and several and
shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

11. Miscellaneous. No provision of this Guaranty may be waived, amended, supplemented or
modified, except by a written instrument executed by the Administrative Agent and the Guarantors.
No failure by the Secured Parties to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law or in equity. The unenforceability or invalidity of any provision of
this Guaranty shall not affect the enforceability or validity of any other provision herein.
Unless otherwise agreed by the Administrative Agent and the Guarantors in writing, this Guaranty is
not intended to supersede or otherwise affect any other guaranty now or hereafter given by any
Guarantor for the benefit of the Secured Parties or any term or provision thereof.

12. Condition of Borrowers. Each Guarantor acknowledges and agrees that it has the sole
responsibility for, and has adequate means of, obtaining from each Borrower, each other Guarantor
and any other guarantor of the Guaranteed Obligations such information concerning the financial
condition, business and operations of such Borrower, such other Guarantor and any such other
guarantor as such Guarantor requires, and that the Secured Parties have no duty, and such Guarantor
is not relying on the Secured Parties at any time, to disclose to such Guarantor any information
relating to the business,
operations or financial condition of any Borrower, any other Guarantor or any other guarantor
of the Guaranteed Obligations (the Guarantors waiving any duty on the part of the Secured Parties
to disclose such information and any defense relating to the failure to provide the same).

 

4

 

13. Setoff. If and to the extent any payment is then due hereunder and an Event of Default
has occurred and is continuing, the Secured Parties may setoff and charge from time to time any
amount so due against any or all of any Guarantor’s accounts or deposits with each such Secured
Party, irrespective of whether or not such Secured Party shall have made any demand under this
Guaranty and although such obligations may be unmatured.

14. Representations and Warranties. Each Guarantor represents and warrants that (a) it is
duly incorporated or organized and, if applicable and except prior to the satisfaction of the
covenant set forth in Section 6.16 of the Credit Agreement in the case of Herbalife Taiwan, is in
good standing under the Laws of the jurisdiction of its incorporation or organization (to the
extent such concepts are relevant under the laws of the relevant jurisdiction) and has full
capacity and right to make and perform this Guaranty, and all necessary authority has been
obtained; (b) this Guaranty constitutes its legal, valid and binding obligation enforceable in
accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law and (ii) the Foreign
Obligor Enforceability Exceptions, if applicable; (c) the making and performance of this Guaranty
does not and will not violate the provisions of any applicable Law, except for violations that
could not reasonably be expected to result in a Material Adverse Effect, and does not and will not
result in the breach of or contravention of or require any payment to be made under any Contractual
Obligation to which such Guarantor is a party or affecting such Guarantor’s properties except for
violations and breaches that could not reasonably be expected to result in a Material Adverse
Effect; and (d) all consents, approvals, licenses and authorizations of, and filings and
registrations with, any Governmental Authority required under applicable Law for the making and
performance of this Guaranty have been obtained or made and are in full force and effect, except
(i) notices, filings and the payment of appropriate stamp or other duties in connection with the
enforcement of this Guaranty against any Foreign Obligor, if applicable, in their jurisdiction of
incorporation or organization and (ii) consents, approvals, registrations, filings or actions the
failure of which to obtain or perform could not reasonably be expected to result in a Material
Adverse Effect.

15. Indemnification and Survival. Without limitation on any other obligations of the
Guarantors or remedies of the Secured Parties under this Guaranty, each Guarantor shall, to the
fullest extent permitted by Law, indemnify, defend and save and hold harmless the Secured Parties,
and each Related Party of any of the Secured Parties (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 any Borrower or any
Guarantor or any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of this Guaranty, any other Loan Document, any Secured Hedge Agreement or
Secured Cash Management Agreement or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, (x) in the case of the
Administrative Agent (and any sub-agent thereof) and its Related Parties only, the administration
of this Guaranty and the other Loan Documents (including in respect of any matters addressed in
Section 2) or (y) in the case of the Hedge Banks and Cash Management Banks and their respective
Related Parties only, the administration of the Secured Hedge Agreement and Secured Cash Management
Agreements to which they are a party, (ii) any Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a
demand for payment under a Letter of Credit if the documents presented in connection with such
demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or operated by any
Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to any
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory, whether brought by a third party or by any Loan Party, 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 (a) 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 (b)
result from a claim brought by any Loan Party against an Indemnitee for breach in bad faith of such
Indemnitee’s obligations hereunder or under any other Loan Document, Secured Hedge Agreement or
Secured Cash Management Agreement, if such Loan Party has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent jurisdiction. The
obligations of the Guarantors under this paragraph are joint and several and shall survive the
payment in full of the Guaranteed Obligations and the termination of this Guaranty.

 

5

 

16. GOVERNING LAW; Assignment; Jurisdiction; Notices. THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. This Guaranty shall (a)
bind each Guarantor and its successors and assigns, provided that no Guarantor may assign its
rights or obligations under this Guaranty without the prior written consent of the Administrative
Agent (and any attempted assignment without such consent shall be void), and (b) inure to the
benefit of the Secured Parties and their respective successors and assigns and any Secured Party
may, without notice to the Guarantors and without affecting the Guarantors’ obligations hereunder,
assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or
in part, in accordance with the Credit Agreement. Each Guarantor hereby irrevocably submits to the
non exclusive 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 Guaranty or any other
Loan Document for recognition or enforcement of any judgment, and each Guarantor 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. Each Guarantor agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by Law. Nothing in this Guaranty shall affect any right that the
Administrative Agent or any other Secured Party may otherwise have to bring any action or
proceeding relating to this Guaranty, any other Loan Document, any Secured Hedge Agreement or any
Secured Cash Management Agreement against such Guarantor or its properties in the courts of any
jurisdiction. Each Guarantor hereby 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 Guaranty, any other Loan Document, any Secured Hedge Agreement
or any Secured Cash Management Agreement in any court referred to above and each Guarantor hereby
waives any defense asserting an inconvenient forum in connection therewith. Service of process in
connection with such action or proceeding shall be made in the manner provided for notices below.
All notices and other communications (including any service of process) to the Guarantors under
this Guaranty shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail or sent by telecopier to each Guarantor at its address set
forth below or at such other address in the United States as may be specified by the applicable
Guarantor in a written notice delivered to the Administrative Agent at the Administrative Agent’s
Office.

 

6

 

17. WAIVER OF JURY TRIAL; FINAL AGREEMENT. EACH GUARANTOR AND THE ADMINISTRATIVE AGENT EACH
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
GUARANTY, ANY OTHER LOAN DOCUMENT, ANY SECURED HEDGE AGREEMENT OR ANY SECURED CASH MANAGEMENT
AGREEMENT 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 GUARANTY, THE OTHER LOAN DOCUMENTS, THE
SECURED HEDGE AGREEMENTS AND THE SECURED CASH MANAGEMENT AGREEMENTS TO WHICH IT IS A PARTY BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THIS GUARANTY
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

18. Severability. Wherever possible, each provision of this Guaranty will be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this
Guaranty is prohibited by or invalid under such law, such provision will be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Guaranty. Consistent with the foregoing, and notwithstanding any
other provision of this Guaranty to the contrary, in the event that any action or proceeding is
brought in whatever form and in whatever forum seeking to invalidate any Guarantor’s obligations
under this Guaranty under any fraudulent conveyance, fraudulent transfer theory, or similar
avoidance theory, whether under state or federal law, such Guarantor (the “Affected
Guarantor”), automatically and without any further action being required of the Affected
Guarantor or any Secured Party, shall be liable under this Guaranty only for an amount equal to the
maximum amount of liability that could have been incurred under applicable law by the Affected
Guarantor under any guaranty of the Guaranteed Obligations (or any portion thereof) at the time of
the execution and delivery of this Guaranty (or, if such date is determined not to be the
appropriate date for determining the enforceability of the Affected Guarantor’s obligations
hereunder for fraudulent conveyance or transfer (or similar avoidance) purposes, on the date
determined to be so appropriate) without rendering such a hypothetical guaranty voidable under
applicable law relating to fraudulent conveyance, fraudulent transfer, or any other grounds for
avoidance (such highest amount determined hereunder being the Affected Guarantor’s “Maximum
Guaranty Amount”), and not for any greater amount, as if the stated amount of this Guaranty as
to the Affected Guarantor had instead been the Maximum Guaranty Amount. This Section is intended
solely to preserve the rights of the Secured Parties under this Guaranty to the maximum extent not
subject to avoidance under applicable law, and neither the Affected Guarantor nor any other Person
shall have any right or claim under this Section with respect to the limitation described in this
Guaranty, except to the extent necessary so that the obligations of the Affected Guarantor under
this Guaranty shall not be rendered voidable under applicable law. Without limiting the generality
of the foregoing, the determination of a Maximum Guaranty Amount for the Affected Guarantor
pursuant to the provisions of the second preceding sentence of this Section shall not in any manner
reduce or otherwise affect the obligations of any other guarantors of any of the Guaranteed
Obligations.

 

7

 

19. Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in one currency into another currency, the rate of
exchange
used shall be that at which in accordance with normal banking procedures the Administrative
Agent could purchase the first currency with such other currency on the Business Day preceding that
on which final judgment is given. The obligation of the Guarantors in respect of any such sum due
from it to the Administrative Agent or any other Secured Party hereunder shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than that in which such sum is
denominated in accordance with the applicable provisions of the Guaranty and the Credit Agreement
(the “Agreement Currency”), be discharged only to the extent that on the Business Day
following receipt by the Administrative Agent or such Secured Party, as the case may be, of any sum
adjudged to be so due in the Judgment Currency, the Administrative Agent or such Secured Party, as
the case may be, may in accordance with normal banking procedures purchase the Agreement Currency
with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the
sum originally due to the applicable Secured Party from the applicable Guarantor in the Agreement
Currency, the applicable Guarantor agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify such Secured Party against such loss. If the amount of the Agreement
Currency so purchased is greater than the sum originally due to the applicable Secured Party in
such currency, such Secured Party agrees to return the amount of any excess to the applicable
Guarantor (or to any other Person who may be entitled thereto under applicable Law).

 

8

 

IN WITNESS WHEREOF, each Guarantor has executed and delivered this Guaranty as of the day and
year first written above.

	 	 	 	 	 	 	 	 	 
	 	 	WH INTERMEDIATE HOLDINGS LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WH LUXEMBOURG
HOLDINGS S.Á.R.L.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

 

9

 

EXHIBIT H

FORM OF DESIGNATED BORROWER

REQUEST AND ASSUMPTION AGREEMENT

Date:                     , _____

To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

This Designated Borrower Request and Assumption Agreement is made and delivered pursuant to
Section 2.14 of that certain Credit Agreement, dated as of March 9, 2011 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to time, the
“Credit Agreement”), among Herbalife International, Inc., a Nevada corporation (the
“Company”), Herbalife Ltd., a Cayman Islands exempted company with limited liability
(“Holdings”), Herbalife International Luxembourg S.á.r.l., a Luxembourg private limited
liability company, having its registered office at 18, boulevard Royal, L-2449 Luxembourg, having a
share capital of EUR 25,000, registered with the Luxembourg trade and companies register under
number B 88.006 (“HIL”, and collectively with the Company, Holdings and the Designated
Borrowers from time to time party thereto, the “Borrowers” and, each a “Borrower”),
the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,
L/C Issuer and Swing Line Lender, and reference is made thereto for full particulars of the matters
described therein. All capitalized terms used in this Designated Borrower Request and Assumption
Agreement and not otherwise defined herein shall have the meanings assigned to them in the Credit
Agreement.

Each of                                          (the “Designated Borrower”) and each Borrower hereby
confirms, represents and warrants to the Administrative Agent and the Lenders that the Designated
Borrower is a Subsidiary of Holdings.

The documents required to be delivered to the Administrative Agent under Section 2.14
of the Credit Agreement will be furnished to the Administrative Agent in accordance with the
requirements of the Credit Agreement.

Complete if the Designated Borrower is a Domestic Subsidiary: The true and correct U.S.
taxpayer identification number of the Designated Borrower is                     .

Complete if the Designated Borrower is a Foreign Subsidiary: The true and correct unique
identification number that has been issued to the Designated Borrower by its jurisdiction of
organization and the name of such jurisdiction are set forth below:

	 	 	 
	Identification Number	 	Jurisdiction of Organization
	 	 	 

Form of Designated Borrower Request and Assumption Agreement

 

H-1

 

The parties hereto hereby confirm that with effect from the date of the Designated Borrower
Notice for the Designated Borrower, the Designated Borrower shall have obligations, duties and
liabilities toward each of the other parties to the Credit Agreement identical to those which the
Designated Borrower would have had if the Designated Borrower had been an original party to the
Credit Agreement as a Borrower. Effective as of the date of the Designated Borrower Notice for the
Designated Borrower, the Designated Borrower confirms its acceptance of, and consents to, all
representations and warranties, covenants, and other terms and provisions of the Credit Agreement.

The parties hereto hereby request that the Designated Borrower be entitled to receive Loans
under the Credit Agreement, and understand, acknowledge and agree that neither the Designated
Borrower nor the Company on its behalf shall have any right to request any Loans for its account
unless and until the date five Business Days after the effective date designated by the
Administrative Agent in a Designated Borrower Notice delivered to the Company and the Lenders
pursuant to Section 2.14 of the Credit Agreement.

This Designated Borrower Request and Assumption Agreement shall constitute a Loan Document
under the Credit Agreement.

THIS DESIGNATED BORROWER REQUEST AND ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Form of Designated Borrower Request and Assumption Agreement

 

H-2

 

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

	 	 	 	 	 	 	 	 	 
	 	 	[DESIGNATED BORROWER]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE LTD., as a Borrower	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL, INC., as a 
Borrower	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	HERBALIFE INTERNATIONAL

LUXEMBOURG S.Á.R.L., as a Borrower	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Form of Designated Borrower Request and Assumption Agreement

 

H-3

 

EXHIBIT I

FORM OF DESIGNATED BORROWER NOTICE

Date:                     , _____

	 	 	 
	To:

	 	Herbalife International, Inc., Herbalife Ltd. and Herbalife International Luxembourg S.á.r.l.

The Lenders party to the Credit Agreement referred to below

Ladies and Gentlemen:

This Designated Borrower Notice is made and delivered pursuant to Section 2.14 of that
certain Credit Agreement, dated as of March 9, 2011 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the “Credit Agreement”), among
Herbalife International, Inc., a Nevada corporation (the “Company”), Herbalife Ltd., a
Cayman Islands exempted company with limited liability (“Holdings”), Herbalife
International Luxembourg S.á.r.l., a Luxembourg private limited liability company, having its
registered office at 18, boulevard Royal, L-2449 Luxembourg, having a share capital of EUR 25,000,
registered with the Luxembourg trade and companies register under number B 88.006 (“HIL”,
and collectively with the Company, Holdings and the Designated Borrowers from time to time party
thereto, the “Borrowers” and, each a “Borrower”), the Lenders from time to time
party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line
Lender, and reference is made thereto for full particulars of the matters described therein. All
capitalized terms used in this Designated Borrower Notice and not otherwise defined herein shall
have the meanings assigned to them in the Credit Agreement.

The Administrative Agent hereby notifies Company and the Lenders that effective as of the date
hereof [                                        ] shall be a Designated Borrower and may receive Loans for its
account on the terms and conditions set forth in the Credit Agreement.

This Designated Borrower Notice shall constitute a Loan Document under the Credit Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Form of Designated Borrower Notice

 

I-1

 

EXHIBIT J-1

FORM OF OPINION OF GIBSON, DUNN & CRUTCHER

[To be attached.]

EXHIBIT J-2

FORM OF OPINION OF MAPLES AND CALDER

[To be attached.]

EXHIBIT J-3

FORM OF OPINION OF ARENDT & MEDERNACH

[To be attached.]

EXHIBIT J-4

FORM OF OPINION OF BROWNSTEIN HYATT FARBER SCHRECK LLP

[To be attached.]

Opinion Matters

 

J-1

 

Exhibit J-1

Client: 38208-00016

March 9, 2011

The Lenders listed on Schedule I hereto

and the Agent party to the

Credit Agreement referred to below

(collectively, the “Lender Parties”)

c/o Bank of America, N.A.

as Agent

	 	 	 
	Re:

	 	Herbalife International, Inc. — Credit Agreement
	 

	 	dated as of March 9, 2011

Ladies and Gentlemen:

We have acted as counsel to Herbalife International, Inc., a Nevada corporation (the “Domestic
Borrower”), Herbalife Ltd., a Cayman Islands exempted company with limited liability (the
“Cayman Borrower”), and Herbalife International Luxembourg S.á.r.L., a Luxembourg private
limited liability company having its registered office at 18, boulevard Royal, L-2449 Luxembourg,
having a share capital of EUR 25,000, registered with the Luxembourg trade and companies register
under number B 88.006 (the “Luxembourg Borrower”), in connection with the Credit Agreement
dated as of March 9, 2011 (the “Credit Agreement”) among the Domestic Borrower, the Cayman
Borrower, the Luxembourg Borrower, the lenders party thereto (the “Lenders”), and Bank of
America, N.A., as Administrative Agent (in such capacity, or in its capacity as collateral agent,
as appropriate, the “Agent”). Terms defined in the Credit Agreement and not otherwise
defined herein are used herein as therein defined.

In rendering this opinion, we have examined the originals, or copies, certified or otherwise
identified to our satisfaction as being true copies, of the following documents and instruments:

(i) the Credit Agreement, including the Exhibits and Schedules thereto;

(ii) the Company Guaranty dated as of March 9, 2011 (the “Company Guaranty”)
executed by the Domestic Borrower in favor of the Lenders and the other Secured Parties;

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 2

(iii) the Holdings Guaranty dated as of March 9, 2011 (the “Holdings
Guaranty”) executed by the Cayman Borrower in favor of the Lenders and the other
Secured Parties;

(iv) the HIL Guaranty dated as of March 9, 2011 (the “HIL Guaranty”) executed
by the Luxembourg Borrower in favor of the Lenders and the other Secured Parties;

(v) the Domestic Subsidiary Guaranty dated as of March 9, 2011 (the “Domestic
Subsidiary Guaranty”) executed by Herbalife International of America, Inc., a Nevada
corporation (the “HIAI”), Herbalife International Communications, Inc., a
California corporation (“HICI”), Herbalife International Do Brasil Ltda, a
corporation dually organized under the laws of Brazil and Delaware (“Herbalife
Brazil”), Herbalife Korea Co., Ltd., a corporation dually organized under the laws of
Korea and Delaware (“Herbalife Korea”), and Herbalife Taiwan, Inc., a California
corporation (“Herbalife Taiwan”; and, together with HIAI, HICI, Herbalife Brazil
and Herbalife Korea, the “Domestic Subsidiary Guarantors”; and, the Domestic
Subsidiary Guarantors, together with the Domestic Borrower, are referred to herein
collectively as the “Collateral Grantors”), in favor of the Lenders and the other
Secured Parties;

(vi) the Foreign Subsidiary Guaranty dated as of March 9, 2011 (the “Foreign
Subsidiary Guaranty”) executed by WH Intermediate Holdings Ltd., a Cayman Islands
exempted company with limited liability (“WH Intermediate”), and WH Luxembourg
Holdings S.á.r.L., a Luxembourg private limited liability company (“WH Luxembourg”;
and together with WH Intermediate, the “Foreign Subsidiary Guarantors”), in favor
of the Lenders and the other Secured Parties;

(vii) the Security Agreement dated as of March 9, 2011 (the “Security
Agreement”) among the Collateral Grantors and the Agent;

(viii) the Fee Letter dated as of March 9, 2011 (the “Fee Letter”) among the
Domestic Borrower, the Agent and Merrill Lynch, Pierce, Fenner & Smith Incorporated; and

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 3

(ix) the financing statements on Form UCC1 naming each Collateral Grantor listed on
Schedule II hereto, as a debtor, and the Agent, as secured party, to be filed in
the governmental offices listed on Schedule II hereto (each, a “Financing
Statement”).

The Credit Agreement, the Company Guaranty, the Holdings Guaranty, the HIL Guaranty, the Domestic
Subsidiary Guaranty, the Foreign Subsidiary Guaranty and the Security Agreement are referred to
herein collectively as the “Financing Documents.” The Financing Documents, other than the
Fee Letter, are referred to herein as the “Designated Financing Documents.” The Domestic
Borrower, the Cayman Borrower, the Luxembourg Borrower, the Domestic Subsidiary Guarantors and the
Foreign Subsidiary Guarantors are referred to herein collectively as the “Obligors.” The
“Specified Obligors” means, collectively, HICI, Herbalife Brazil and Herbalife Korea. Each
Collateral Grantor’s right, title and interest in the personal property collateral described in the
Security Agreement is referred to herein collectively as its “UCC Collateral.” The Uniform
Commercial Code as enacted and in effect in the States of New York, Delaware and California are
referred to herein, respectively, as the “New York UCC,” the “Delaware UCC,” and
the “California UCC.” The States of Delaware and California are referred to herein as the
“Perfection States,” and the New York UCC, the Delaware UCC and the California UCC are each
referred to herein as a “UCC.” All references to sections or other subparts of the New
York UCC include references to the equivalent provisions of the Delaware UCC and the California
UCC, unless the context otherwise requires. All terms defined in the New York UCC are used herein
as defined therein.

We have assumed without independent investigation that:

(a) The signatures on all documents examined by us are genuine, all individuals executing such
documents had all requisite legal capacity and competency and (except in the case of documents
signed on behalf of the Specified Obligors) were duly authorized to do so; the documents submitted
to us as originals are authentic and the documents submitted to us as certified or reproduction
copies conform to the originals;

(b) Each Obligor (other than the Specified Obligors) is a validly existing corporation or
other entity in good standing under the laws of its jurisdiction of formation and has all requisite
power to execute and deliver each of the Financing Documents to which it is a party and to perform
its obligations thereunder; the execution and delivery of such
Financing Documents by such Obligor and performance of its obligations thereunder have been
duly authorized by all necessary corporate or other action; such Financing Documents have been duly
executed and delivered by each such Obligor; and except as specifically addressed in our opinions
in Paragraphs 4(i)(B) and 5 below, do not violate any law, regulation, order, judgment or decree
applicable to such Obligor;

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 4

(c) There are no agreements or understandings between or among any of the parties to the
Financing Documents or third parties that would expand, modify or otherwise affect the terms of the
Financing Documents or the respective rights or obligations of the parties thereunder or that would
modify, release, terminate, subordinate or delay the attachment of the security interest and liens
granted thereunder;

(d) To the extent that the ability of the Agent to enforce remedies under the Financing
Documents in respect of UCC Collateral comprised of inventory may be affected thereby, each
Collateral Grantor is in compliance with the Fair Labor Standards Act (see Citicorp Industrial
Credit, Inc. v. Brock, 483 U.S. 27, 107 S.Ct. 2694 (1987)); and

(e) Each Collateral Grantor has, and will have at all times relevant to this opinion, rights
in the UCC Collateral within the meaning of Section 9-203(b)(2) of the New York UCC.

We understand that you have received the legal opinions of local counsel in each jurisdiction in
which an Obligor (other than the Specified Obligors) is incorporated or otherwise organized,
including, without limitation, Nevada, Cayman Islands and Luxembourg counsel, as to certain of the
matters referred to in clauses (a) and (b) above relating to such Obligors.

In rendering this opinion, we have made such inquiries and examined, among other things, originals
or copies, certified or otherwise identified to our satisfaction, of such records, agreements,
certificates, instruments and other documents as we have considered necessary or appropriate for
purposes of this opinion. As to certain factual matters, we have relied to the extent we deemed
appropriate and without independent investigation upon the representations and warranties of the
Obligors in the Financing Documents, certificates of officers of the Obligors, copies of which are
attached hereto (collectively, the “Officers’ Certificate”), or certificates obtained from
public officials and others.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 5

Based upon the foregoing and in reliance thereon, and subject to the qualifications, exceptions,
assumptions and limitations herein contained, we are of the opinion that:

1. Each Specified Obligor is a validly existing corporation in good standing under the laws of
its state of incorporation and has all requisite corporate power to execute and deliver the
Financing Documents to which it is a party and to perform its obligations thereunder.

2. The execution and delivery by each Specified Obligor of the Financing Documents to which it
is a party, and the performance of its obligations thereunder, have been duly authorized by all
necessary corporate action. Each Financing Document has been duly executed and delivered by each
Specified Obligor party thereto.

3. Each Financing Document constitutes a legal, valid and binding obligation of each Obligor
party thereto, enforceable against it in accordance with its terms.

4. The execution and delivery by each Obligor of the Financing Documents to which it is a
party, and the performance of its obligations thereunder, do not:

(i) violate (A) the certificate or articles of incorporation or bylaws of any
Specified Obligor or (B) based solely upon review of the orders, judgments or
decrees identified to us in the Officers’ Certificate as constituting all orders,
judgments or decrees that could reasonably be expected to restrict the ability of
the Obligors to consummate the transactions contemplated by the Financing
Documents, which are listed on Schedule III hereto (each, a
“Governmental Order”), any Governmental Order, or

(ii) based solely upon review of the documents filed as exhibits to the Cayman
Borrower’s periodic reports under the Securities Exchange Act of 1934, as amended
(the “1934 Act”) (each, a “Material Contract”) result in a
material breach of or default under any Material Contract.

5. The execution and delivery by each Obligor of the Financing Documents to which it is a
party, and the performance of its obligations thereunder, do not (i) violate, or require any filing
with or approval of any governmental authority or regulatory body of the State of New York or the
United States of America under, any law or regulation of the State
of New York or the United States of America applicable to such Obligor that, in our
experience, is generally applicable to transactions in the nature of those contemplated by the
Financing Documents or (ii) violate, or require any filing with or approval of any governmental
authority or regulatory body of the State of Delaware under the Delaware General Corporation Law,
except in each case for filings required for the perfection of Liens.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 6

6. No Obligor is required to register as an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

7. Each Collateral Grantor has granted a valid security interest (the “Security
Interest”) in favor of the Agent, for the benefit of the secured parties, in the UCC Collateral
described in the Security Agreement, securing the performance of the obligations purported to be
secured thereby, to the extent a security interest can be created therein under Article 9 of the
New York UCC. Upon the filing of the Financing Statements with the governmental offices indicated
on Schedule II, the Security Interest in the UCC Collateral of each Collateral Grantor
listed on Schedule II will be perfected to the extent security interests therein can be
perfected by the filing of UCC1 financing statements under Article 9 of the UCC of the relevant
Perfection States.

8. Upon delivery to the Agent in the State of New York of the certificates described on
Schedule IV hereto in accordance with the provisions of the Security Agreement (the
“Pledged Shares”), the Security Interest of the Agent in the Pledged Shares will be
perfected and will be prior in right to all other security interests therein created under Article
9 of the New York UCC.

9. The execution and delivery by each Obligor of the Financing Documents to which it is a
party, and the performance of its obligations thereunder, do not result in a breach or violation of
Regulation U or X of the Board of Governors of the Federal Reserve System. Regulation T of the
Board of Governors of the Federal Reserve System (“Regulation T”) does not apply to any
Lender that is not a “creditor” (as defined in Regulation T). Regulation T defines “creditor” as
any broker or dealer (as defined in sections 3(a)(4) and 3(a)(5) of the 1934 Act), any member of a
national securities exchange, or any person associated with a broker or dealer (as defined in
section 3(a)(18) of the 1934 Act), except for business entities controlling or under common control
with the creditor.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 7

The foregoing opinions are also subject to the following additional qualifications, exceptions,
assumptions and limitations:

A. We render no opinion herein as to matters involving the laws of any jurisdiction other than
(i) the State of New York, (ii) the United States of America, (iii) for purposes of Paragraphs 1,
2, 4(i)(A) and 5 above, the Delaware General Corporation Law, (iv) for purposes of our perfection
opinion in Paragraph 7 above, the Delaware UCC, (v) for purposes of Paragraphs 1, 2, 4(i)(A) and
our perfection opinion in Paragraph 7 above, the State of California. We are not engaged in
practice in the State of Delaware; however, we are generally familiar with the Delaware General
Corporation Law and the Delaware UCC as currently in effect and have made such inquiries as we
consider necessary to render the opinions contained in Paragraphs 1, 2, 4(i)(A), 5 and 7 above. In
connection with the foregoing, we call to your attention that Herbalife Korea is dually organized
under the laws of Korea and Delaware, that Herbalife Brazil is dually organized under the laws of
the Brazil and Delaware, that we render no opinions herein with respect to the laws of Korea or
Brazil and that the laws of Korea or Brazil may prescribe actions, in addition to those actions
that are necessary under the Delaware General Corporations Law for Herbalife Brazil and Herbalife
Korea duly to authorize, execute and deliver the Financing Documents to which it is a party. This
opinion is limited to the effect of the present state of the laws of the State of New York, the
United States of America and, to the limited extent set forth above, the laws of the States of
Delaware and California and the facts as they currently exist. We assume no obligation to revise
or supplement this opinion in the event of future changes in such laws or the interpretations
thereof or such facts. Except as expressly set forth in Paragraphs 6 and 9 above, we express no
opinion regarding the Securities Act of 1933, as amended (the “1933 Act”), or any other
federal or state securities laws or regulations.

B. Our opinions in Paragraphs 3, 7 and 8 are subject to (i) the effect of any bankruptcy,
insolvency, reorganization, moratorium, arrangement or similar laws affecting the rights and
remedies of creditors generally (including, without limitation, the effect of statutory or other
laws regarding fraudulent transfers or preferential transfers or distributions by corporations to
stockholders) and (ii) general principles of equity, including without limitation concepts of
materiality, reasonableness, good faith and fair dealing and the possible unavailability of
specific performance, injunctive relief or other equitable remedies regardless of whether
enforceability is considered in a proceeding in equity or at law.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 8

C. We express no opinion regarding the effectiveness of (i) any waiver (whether or not stated
as such) under the Financing Documents of, or any consent thereunder relating to, unknown future
rights or the rights of any party thereto existing, or duties owing to it, as a matter of law; (ii)
any waiver (whether or not stated as such) contained in the Financing Documents of rights of any
party, or duties owing to it, that is broadly or vaguely stated or does not describe the right or
duty purportedly waived with reasonable specificity; (iii) provisions relating to indemnification,
exculpation or contribution, to the extent such provisions may be held unenforceable as contrary to
public policy or federal or state securities laws or due to the negligence or willful misconduct of
the indemnified party; (iv) any provision in any Financing Document waiving the right to object to
venue in any court; (v) any agreement to submit to the jurisdiction of any Federal Court; (vi) any
waiver of the right to jury trial; (vii) the effect on the enforceability of the Company Guaranty,
the Holdings Guaranty, the HIL Guaranty or other Financing Documents against, or on the ability of
a secured party to realize upon collateral security pledged or granted by, any Obligor or any other
“surety” (which could include a co-borrower jointly liable for loans extended to another
co-borrower, a hypothecator of property to secure obligations owed by another person or a common
creditor that has subordinated obligations owing to it), of any facts or circumstances that would
constitute a defense to the obligation of a surety, unless such defense has been waived effectively
by such Obligor or other surety; (viii) any provision purporting to establish evidentiary
standards; (ix) any provision to the effect that every right or remedy is cumulative and may be
exercised in addition to any other right or remedy or that the election of some particular remedy
does not preclude recourse to one or more others; (x) (A) any provision that would require payment
of any unamortized original issue discount (including any original issue discount effectively
created by payment of a fee), or (B) the closing fees payable under the Fee Letter, to the extent
they are considered to be fees for the “brokerage, soliciting, driving or procuring of a loan” and
exceed 0.50% of the amount thereof in violation of New York General Obligations Law Section 5-531;
(xi) in light of the decision in Official Comm. of Unsecured Creditors of Tousa, Inc. v.
Citicorp N. Am., Inc. (In re Tousa, Inc.), 422 B.R. 783, 2009 Bankr. LEXIS 4355 (Bankr. S.D.
Fla. 2009), any provision pursuant to which a guarantee, joint and several liability, lien or other
security interest shall be valid and enforceable to the maximum extent that would not cause such
guarantee, joint and several liability, lien or other security interest to be unenforceable as a
fraudulent transfer or conveyance or otherwise under applicable law, or any similar “savings”
provision; (xii) the availability of damages or other remedies not specified in the Financing
Documents in respect of breach of any covenants (other than covenants relating to
the payment of principal, interest, indemnities and expenses); or (xiii) any right of setoff
to the extent asserted by a participant in the rights of a Lender under the Financing Documents.
In addition, we advise you that some of the provisions of the Financing Documents may not be
enforceable by a Lender acting individually (as opposed to the Lenders acting through the Agent).

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 9

D. We express no opinion as to (i) any waivers or variations of rights of a debtor, including
a guarantor, or duties of a secured party under provisions referred to in Section 9-602 of the New
York UCC or (ii) any provision in the Security Agreement (A) that may be deemed to permit the Agent
or any other person to sell or otherwise foreclose upon any UCC Collateral, or to apply the
proceeds thereof, except in compliance with the New York UCC, applicable laws of the United States
and other applicable state and local laws, or (B) that may be deemed to impose on the Agent
standards for the care of the UCC Collateral in the possession or control of the Agent that would
violate Section 9-207 or 9-208 of the New York UCC or to render such standards inapplicable.
Without limitation of clause (ii)(A), we express no opinion with respect to any provision to the
extent that it authorizes the Agent or the Lenders to purchase UCC Collateral at a private sale, if
such UCC Collateral is neither customarily sold in a recognized market nor the subject of widely
distributed standard price quotations. We call to your attention that Sections 9-611, 9-612 and
9-613 of the New York UCC include requirements for notice in connection with a private sale or
other disposition of UCC Collateral as well as a public sale, unless the UCC Collateral is
perishable or threatens to decline speedily in value or is a type customarily sold in a recognized
market. We further express no opinion as to any license contained in the Financing Documents to
use patents, trademarks or copyrights in connection with an exercise of remedies against UCC
Collateral.

E. Our opinion is subject to the effect of Section 552 of the United States Bankruptcy Code
(limiting security interests in property acquired after the commencement of a case under the United
States Bankruptcy Code). We call to your attention that under the provisions of the New York UCC
certain third parties, such as buyers and lessees of goods in the ordinary course of business,
licensees of general intangibles (including software) in the ordinary course of business, holders
in due course of negotiable instruments, protected purchasers of securities or certain purchasers
of security entitlements or financial assets, could acquire an interest in the UCC Collateral free
of the security interests of the Agent and the other Secured Parties, even though such security
interests are perfected.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 10

F. We express no opinion with respect to (i) the existence, non-existence or value of any UCC
Collateral, (ii) any part of the UCC Collateral that is or may be such that a security interest
therein is not covered by Article 9 of the New York UCC by virtue of Section 9-109, (iii) the
perfection of the Security Interests in any portion of the UCC Collateral, including deposit
accounts, goods covered by a certificate of title (such as automobiles), patents, trademarks,
copyrights, letter-of-credit rights and money, to the extent that filing of a financing statement
is not or may not be sufficient to perfect a security interest therein (whether as a result of
requirements for control or possession of such collateral, the applicability of preemptive United
States laws or of certificate of title statutes or otherwise) and (iv) except with respect to the
Collateral Grantors organized under the laws of the States of California and Delaware, the law
governing perfection of security interests by filing under Section 9-301 of the UCC. For purposes
of our opinion in Paragraph 7, we have assumed that no Collateral Grantor has filed a certificate
of incorporation or any similar document, or otherwise elected to exist, under the laws of any
State other than the State of California or Delaware, as the case may be (We note, however, as
stated above that each of Herbalife Korea and Herbalife Brazil are dually organized in Delaware and
a foreign (non-U.S.) jurisdiction). Without limitation of clause (ii) or (iii) above, we express
no opinion with respect to the perfection of any Security Interest in accounts that are obligations
of the Federal government, any agency, instrumentality or department thereof or any state or local
government or any agency or political subdivision thereof, to the extent that any applicable laws
(such as the Federal Assignment of Claims Act) require any actions in addition to the filing of
financing statements under the UCC of the relevant Perfection States. In addition, certain
remedies otherwise available under the New York UCC in regard to accounts included in the UCC
Collateral may not be available with respect to accounts owing by the Federal Government, or a
department, agency or instrumentality thereof, or any state or local government or any agency or
political subdivision thereof, as to which the procedures specified in such laws have not been
completed.

G. We express no opinion with respect to (i) the sufficiency of the descriptions of the UCC
Collateral contained in the Security Agreement, in the Financing Statements or in any document
prepared in connection therewith, except for the legal adequacy of descriptions of UCC Collateral
(A) to the extent that such descriptions consist of the collateral types defined in the New York
UCC (other than commercial tort claims) and (B) contained in Financing Statements to the extent
such descriptions consist of “all assets” or “all personal property,” (ii) the enforceability or
perfection of any security interest in the
proceeds of any UCC Collateral other than pursuant to Section 9-315 of the New York UCC or the
UCC of the relevant Perfection State, (iii) any security interest in consumer goods or commercial
tort claims or (iv) perfection (or the law governing perfection) of any security interest in timber
to be cut or as-extracted collateral (including oil, gas and other minerals).

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 11

H. We express no opinion with respect to the priority (and therefore no opinion as to the
respective rights of any creditor, encumbrancer or other third party as against the rights of the
Agent and the other Secured Parties) of any security interest in the UCC Collateral, except as
expressly set forth in Paragraph 8.

I. Perfection of the Security Interests generally will be terminated under the circumstances
described in Sections 9-316, 9-507, 9-508 and 9-515 of the New York UCC, unless appropriate action
is taken as provided therein. Without limitation, (i) all the financing statements filed must be
continued at prescribed intervals by the timely filing of continuation statements and (ii) a new or
amended financing statement may be required to be filed to retain any perfected Security Interest
in the event any Collateral Grantor changes its name, identity or location (as determined under the
New York UCC).

J. We call to your attention that the Material Contracts as well as other general intangibles
(including contracts, permits, licenses or certain limited liability company or limited partnership
interests) of the Collateral Grantors included in the UCC Collateral (such general intangibles, the
“Assigned Contracts”) may contain provisions that prohibit the assignment of such Assigned
Contracts. Section 9-408 of the New York UCC renders ineffective prohibitions on the attachment of
a security interest in the general intangibles of the Collateral Grantors under each Assigned
Contract; we believe, therefore, that the grant of a security interest in the Collateral Grantors’
respective interests in the Assigned Contracts would not be prevented by such provisions or
constitute an actionable breach of any such Assigned Contract, to the extent the New York UCC is
applicable thereto. We further call to your attention, however, (i) that certain default remedies
may not be available to the Lender Parties and other Secured Parties, and (ii) that restrictions
upon the transfer of the Assigned Contracts in connection with the exercise of default remedies by
the Agent or the other Secured Parties would not be rendered ineffective pursuant to Section 9-408
of the New York UCC, and therefore any such transfer may constitute a breach of or default under
such Assigned Contract or be unenforceable against any counterparty thereto.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 12

K. Our opinions set forth in Paragraphs 3, 7 and 8 are subject to the following
qualifications: (i) the Agent may not be entitled to vote the equity interests included in the UCC
Collateral (the “Pledged Equity Interests”) or to receive dividends or other distributions
directly from the issuer thereof prior to becoming the record holder of the Pledged Equity
Interests; (ii) none of the Pledged Equity Interests or any interest therein may be sold or further
transferred by the Agent without registration under the 1933 Act, except pursuant to an exemption
from registration contained in such Act, and qualification or exemption from qualification under
any applicable State securities or Blue Sky laws; and (iii) compliance with the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 may be required prior to the exercise of any remedies under the
Security Agreement with respect to the Pledged Equity Interests.

L. In connection with our opinions expressed in Paragraphs 7 and 8 above, we call to your
attention that the UCC Collateral and the Pledged Shares include equity interests of entities (the
“Foreign Equity Interests”) organized under the laws of jurisdictions other than the United
States of America or a political subdivision thereof (each, a “Foreign Issuer
Jurisdiction”) and that the laws of the Foreign Issuer Jurisdictions may prescribe actions that
must be taken to effect a valid and perfected pledge of such Foreign Equity Interests. While the
filing of a financing statement is sufficient under the UCC of the relevant Perfection States to
perfect a security interest under the relevant UCC in a Collateral Grantor’s interests in the
relevant Foreign Equity Interests (to the extent the UCC of the relevant Perfection State is
applicable), certain remedies may not be available to the Agent and the other Secured Parties, and
such security interests may otherwise be adversely affected, unless the Agent and the Secured
Parties undertake the actions required under the laws of the Foreign Issuer Jurisdictions. In
addition, to the extent the Foreign Equity Interests constitute Pledged Shares covered by our
opinion in Paragraph 8, we have assumed without independent investigation that such Foreign Equity
Interests constitute “certificated securities” within the meaning of Section 8-102 of the New York
UCC.

M. With reference to our opinion in Paragraph 8 above, we have assumed without independent
investigation that (i) the certificates representing the Pledged Shares are indorsed to the Agent
or in blank by an effective indorsement (as such term is defined in the New York UCC), and (ii) the
Agent will at all times hereafter maintain possession of the certificates representing the Pledged
Shares in the State of New York.

 

 

 

The Lender Parties

c/o Bank of America, N.A.,

as Agent

March 9, 2011

Page 13

N. For purposes of our opinion in Paragraph 9, we have assumed without independent
investigation that: (i) the representation and warranty of the Obligors set forth in Section 5.14
of the Credit Agreement is and will be true and correct at all relevant times and (ii) no more than
an insignificant part of the UCC Collateral consists or will consist of “margin stock” within the
meaning of Regulations U or X of the Board of Governors of the Federal Reserve System at all
relevant times. Our opinion in Paragraph 9 is subject to (and we express no opinion in respect of)
any requirement applicable to the Agent or any Lender or other Secured Party to obtain in good
faith a Form FR U-1 or FR G-3 signed by the Obligors. Except as expressly set forth in Paragraph
9, we express no opinion with respect to Regulation T of the Board of Governors of the Federal
Reserve System.

O. In rendering our opinions expressed in Paragraph 4 insofar as they require interpretation
of Material Contracts, we express no opinion with respect to the compliance by any Obligor with any
covenants included in any Material Contract to the extent compliance depends on financial
calculations or data.

P. We express no opinion as to the applicability to, or the effect of noncompliance by, any
Lender Party or other Secured Party with any state or federal laws applicable to the transactions
contemplated by the Financing Documents because of the nature of the business of such Lender Party
or other Secured Party.

This opinion is rendered as of the date hereof to the Lender Parties in connection with the
Financing Documents and may not be relied upon by any person other than the Lender Parties or by
the Lender Parties in any other context. The Lender Parties may not furnish this opinion or copies
hereof to any other person except (i) to bank examiners and other regulatory authorities should
they so request in connection with their normal examinations, (ii) to the independent auditors and
attorneys of the Lender Parties, (iii) pursuant to order or legal process of any court or
governmental agency, (iv) in connection with any legal action to which any Lender Party is a party
arising out of the transactions contemplated by the Financing Documents, or (v) any potential
permitted assignee of or participant in the interest of any Lender Party under the Financing
Documents for its information. Notwithstanding the foregoing, parties referred to in clause (v) of
the immediately preceding sentence who become Lenders after the date hereof may rely on this
opinion as if it were addressed to them
(provided that such delivery shall not constitute a re-issue or reaffirmation of this opinion as of
any date after the date hereof). This opinion may not be quoted without the prior written consent
of this Firm.

Very truly yours,

 

 

 

SCHEDULE I — LENDER PARTIES

Bank of America, N.A.

JPMorgan Chase Bank, N.A.

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL”, NEW YORK BRANCH

KeyBank National Association

HSBC Bank USA, National Association

Union Bank, N.A.

Wells Fargo Bank, National Association

Comerica Bank

ING Bank NV, Dublin Branch

 

I-1

 

SCHEDULE II — FINANCING STATEMENTS

	 	 	 	 	 
	Collateral Grantor	 	Perfection State	 	Filing Office
	Herbalife International
Communications, Inc.

	 	California
	 	Secretary of State
	Herbalife International Do Brasil
Ltda

	 	Delaware
	 	Secretary of State
	Herbalife Korea Co., Ltd.

	 	Delaware
	 	Secretary of State
	Herbalife Taiwan, Inc.

	 	California
	 	Secretary of State

 

 

 

SCHEDULE III — GOVERNMENTAL ORDERS 

None.

 

 

 

SCHEDULE IV — PLEDGED SHARES

	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Owner	 	Shares	 	 	Cert. No.	 
	Herbalife Australasia Pty, Ltd.
	 	Herbalife International Inc.	 	 	6,500	 	 	 	22	 
	Herbalife of Canada, Ltd.
	 	Herbalife International, Inc.	 	 	65	 	 	 	9	 
	Herbalife International of Hong Kong Limited
	 	Herbalife International, Inc.	 	 	65	 	 	 	000007	 
	Herbalife International of Hong Kong Limited
	 	Herbalife International of America, Inc.	 	 	1	 	 	 	6	 
	Herbalife Internacional de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	3,250	 	 	 	1	 
	Herbalife Internacional de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	1,749	 	 	 	1	 
	Herbalife Internacional de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	1,749	 	 	 	02	 
	Herbalife Internacional de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	1	 	 	 	03	 
	Herbalife Products de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	6,435	 	 	 	1	 
	Herbalife Products de Mexico, S.A. de C.V.
	 	Herbalife International, Inc.	 	 	3,465	 	 	 	02	 
	Herbalife Products de Mexico, S.A. de C.V.
	 	Herbalife International of America, Inc.	 	 	100	 	 	 	3	 
	Herbalife International Philippines, Inc.
	 	Herbalife International, Inc.	 	 	3,981,251	 	 	 	005	 
	Herbalife International Philippines, Inc.
	 	Herbalife International, Inc.	 	 	568,749	 	 	 	013	 
	HBL Products SA
	 	Herbalife International, Inc.,	 	 	33	 	 	 	1	 
	HBL Products SA
	 	Herbalife International of America, Inc.	 	 	32	 	 	 	3	 
	Herbalife (U.K.) Limited
	 	Herbalife International Inc.	 	 	9,999	 	 	 	7	 
	Herbalife (U.K.) Limited
	 	Herbalife International Inc.	 	 	1	 	 	 	9	 
	Herbalife International Urunleri Ticaret Limited Sirketi
	 	Herbalife International, Inc.	 	 	4,100	 	 	 	1	 
	Herbalife International Urunleri Ticaret Limited Sirketi
	 	Herbalife International of America, Inc.	 	 	4,100	 	 	 	2	 
	Herbalife Sweden Aktiebolag
	 	Herbalife International Inc.	 	 	500	 	 	None	 
	Herbalife Sweden Aktiebolag
	 	Herbalife International Inc.	 	 	150	 	 	None	 
	Herbalife International Argentina S.A.
	 	Herbalife International Inc.	 	 	7,800	 	 	 	3	 
	Herbalife Foreign Sales Corporation
	 	Herbalife International Inc.	 	 	650	 	 	 	2	 
	Herbalife International India Private Limited
	 	Herbalife International Inc.	 	 	2651107	 	 	 	08	 
	Herbalife International Russia 1995 Ltd.
	 	Herbalife International Inc.	 	 	65	 	 	 	3	 
	Herbalife of Japan K.K.
	 	Herbalife International Inc.	 	 	50	 	 	 	1A-001	 
	Herbalife (NZ) Limited
	 	Herbalife International Inc.	 	 	6667	 	 	 	6	 
	Herbalife International Products N.V.
	 	Herbalife International Inc.	 	 	6,000	 	 	 	1	 
	Herbalife International Argentina S.A.
	 	Herbalife International of America, Inc.	 	 	1.2	 	 	 	6	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	61	 	 	 	1	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	34	 	 	 	2	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	1	 	 	 	3	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	1	 	 	 	4	 

 

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Issuer	 	Owner	 	Shares	 	 	Cert. No.	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	1	 	 	 	5	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	1	 	 	 	6	 
	Herbalife Dominicana, S.A.
	 	Herbalife International, Inc.	 	 	1	 	 	 	7	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	5000	 	 	 	1	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1	 	 	 	000001	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1	 	 	 	000002	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1	 	 	 	000003	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000011	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000012	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000013	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000014	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000015	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000016	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000017	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000018	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	10	 	 	 	000019	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000101	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000102	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000103	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000104	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000105	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000106	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000107	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000108	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	000109	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1000	 	 	 	001001	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1000	 	 	 	001002	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	1000	 	 	 	001003	 
	Herbalife International of America, Inc.
	 	Herbalife International, Inc.	 	 	1,171,278	 	 	 	2	 
	Herbal International Communications, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife International Distribution, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife International of Europe, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	3	 
	Herbalife Taiwan, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife International (Thailand), Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife International do Brasil Ltda. (Delaware)
	 	Herbalife International of America, Inc.	 	 	1	 	 	 	2	 
	Herbalife International do Brasil Ltda. (Delaware)
	 	Herbalife International, Inc.	 	 	4,999	 	 	 	1	 
	Herbalife International do Brasil Ltda. (Delaware)
	 	Herbalife International, Inc.	 	 	95,000	 	 	 	3	 
	Promotions One, Inc.
	 	Herbalife International, Inc.	 	 	1,000	 	 	 	4	 
	Herbalife International de Colombia, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	30,000	 	 	 	2	 
	Herbalife International South Africa, Ltd.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife International of South Africa, Inc.
	 	Herbalife International, Inc.	 	 	100	 	 	 	1	 
	Herbalife Korea Co., Ltd.
	 	Herbalife International, Inc.	 	 	5,000	 	 	 	1	 

 

 

 

OFFICERS’ CERTIFICATE

[SEE ATTACHED]

 

 

 

Exhibit J-2

MAPLES

Our ref JMM/280939/20657508v1

to the Addressees named in the Schedule

9 March 2011

Dear Sirs

Herbalife Ltd.

We have acted as counsel as to Cayman Islands law to Herbalife Ltd. (the “Company”) in connection
with the Company’s entry into the Transaction Documents (as defined below).

	1	 	Documents Reviewed

We have reviewed originals, copies, drafts or conformed copies of the following documents:

	1.1	 	The Certificate of Incorporation and Memorandum and Articles of Association of the Company as
registered or adopted on 1 December 2004.

	1.2	 	The minutes of the meeting of the Board of Directors of the Company held on 18 February 2011
(the “Minutes”) and the corporate records of the Company maintained at its registered office
in the Cayman Islands.

	1.3	 	A Certificate of Good Standing dated 1 March 2011 issued by the Registrar of Companies (the
“Certificate of Good Standing”).

	1.4	 	A certificate from the General Counsel and Secretary of the Company a copy of which is
annexed hereto (the “Secretary’s Certificate”).

	1.5	 	The Credit Agreement among the Company, Herbalife International, Inc. and
Herbalife International Luxembourg S.a.r.l. as Borrowers, Bank of America, N.A. as
Administrative Agent, Swing Line Lender and L/C Issuer and the other Lenders party thereto
(the “Credit Agreement”).

	1.6	 	The Note (as defined in the Credit Agreement) entered into by the Company.

	1.7	 	The Holdings Guaranty (as defined in the Credit Agreement) entered into by the Company in
favour of Bank of America, N.A. as Administrative Agent.

The documents referred to in paragraphs 1.5 to 1.7 above are collectively referred to as
the “Transaction Documents”.

Maples and Calder

PO Box 309 Ugland House Grand Cayman
KY1-1104 Cayman Islands

 Tel +1 345 949 8088
Fax +1 345 949 8080 www.maplesandcalder.com

 

 

 

	2	 	Assumptions

The following opinion is given only as to, and based on, circumstances and matters of fact existing
and known to us on the date of this opinion. This opinion only relates to the laws of the Cayman
Islands which are in force on the date of this opinion. In giving this opinion we have relied
(without further verification) upon the completeness and accuracy of the Secretary’s Certificate
and the Certificate of Good Standing. We have also relied upon the following assumptions, which we
have not independently verified:

	2.1	 	The Transaction Documents have been or will be authorised and duly executed
and unconditionally delivered by or on behalf of all relevant parties in accordance with all
relevant laws (other than, with respect to the Company, the laws of the Cayman Islands).

	2.2	 	The Transaction Documents are, or will be, legal, valid, binding and enforceable against all
relevant parties in accordance with their terms under New York law and all other relevant laws
(other than, with respect to the Company, the laws of the Cayman Islands).

	2.3	 	The choice of New York law as the governing law of the Transaction Documents has been made in
good faith and would be regarded as a valid and binding selection which will be upheld by the
courts of New York and any other relevant jurisdiction (other than the Cayman Islands) as a
matter of New York law and all other relevant laws (other than the laws of the Cayman
Islands).

	2.4	 	Copy documents, conformed copies or drafts of documents provided to us are true and complete
copies of, or in the final forms of, the original documents.

	2.5	 	All signatures, initials and seals are genuine.

	2.6	 	The final execution version of each Transaction Document that is governed by the laws of the
Cayman Islands and that has been, or is to be, executed as a deed existed, or will exist, at
the moment of execution as a single physical document (whether in counterpart or not)
including the entire body of each such document, the signature pages and any annexes and/or
schedules thereto.

	2.7	 	The power, authority and legal right of all parties under all relevant laws and regulations
(other than, with respect to the Company, the laws of the Cayman Islands) to enter into,
execute, unconditionally deliver and perform their respective obligations under
the Transaction Documents.

	2.8	 	There is nothing under any law (other than the law of the Cayman Islands) which would or
might affect the opinions hereinafter appearing. Specifically, we have made no
independent investigation of the laws of New York.

	3	 	Opinions

Based upon, and subject to, the foregoing assumptions and the qualifications set out below, and
having regard to such legal considerations as we deem relevant, we are of the opinion that:

	3.1	 	The Company has been duly incorporated as an exempted company with limited liability and is
validly existing and in good standing under the laws of the Cayman Islands.

	3.2	 	The Company has full power and authority under its Memorandum and Articles of Association to
enter into, execute, deliver and perform its obligations under the Transaction Documents.

 

2

 

	3.3	 	The execution and delivery of the Transaction Documents and the performance by the
Company of its obligations thereunder do not conflict with or result in a breach of any of
the terms or provisions of the Memorandum and Articles of Association of the Company or any
law, public rule or regulation applicable to the Company in the Cayman Islands currently in
force.

	3.4	 	The execution, delivery and performance of the Transaction Documents have been authorised by
and on behalf of the Company and, assuming the Transaction Documents have been executed and
unconditionally delivered by a Director or Officer of the Company, the Transaction
Documents have been duly executed and delivered on behalf of the Company and constitute the
legal, valid and binding obligations of the Company enforceable in accordance with their
terms.

	3.5	 	No authorisations, consents, approvals, licences, validations or exemptions are required by
law from any governmental authorities or agencies or other official bodies in the Cayman
Islands in connection with:

	 	(a)	 	the creation, execution or delivery of the Transaction Documents by the Company;

	 	(b)	 	subject to the payment of the appropriate stamp duty, enforcement or
admissibility in evidence of the Transaction Documents against the Company; or

	 	(c)	 	the performance by the Company of its obligations under any of the Transaction
Documents.

	3.6	 	No taxes, fees or charges (other than stamp duty) are payable (either by direct assessment or
withholding) to the government or other taxing authority in the Cayman Islands under the laws
of the Cayman Islands in respect of:

	 	(a)	 	the execution or delivery of the Transaction Documents;

	 
	 	(b)	 	the enforcement of the Transaction Documents; or

	 
	 	(c)	 	payments made under, or pursuant to, the Transaction Documents.

The Cayman Islands currently have no form of income, corporate or capital gains tax and no
estate duty, inheritance tax or gift tax.

	3.7	 	The courts of the Cayman Islands will observe and give effect to the choice of New York law
as the governing law of the Transaction Documents.

	3.8	 	Based solely on our search of the Register of Writs and Other Originating Process (the “Court
Register”) maintained by the Clerk of the Court of the Grand Court of the Cayman Islands from
the date of incorporation of the Company to 7 March 2011 (the “Litigation Search” ),the Court
Register disclosed no writ, originating summons, originating motion, petition, counterclaim
nor third party notice (“Originating Process”) nor any amended Originating Process pending
before the Grand Court of the Cayman Islands, in which the Company is a defendant or
respondent.

 

3

 

	3.9	 	Although there is no statutory enforcement in the Cayman Islands of judgments obtained in New
York, a judgment obtained in such jurisdiction will be recognised and enforced in the courts
of the Cayman Islands at common law, without any re-examination of the merits of the
underlying dispute, by an action commenced on the foreign judgment debt in the Grand Court of
the Cayman Islands, provided such judgment:

	 	(a)	 	is given by a foreign court of competent jurisdiction;

	 	(b)	 	imposes on the judgment debtor a liability to pay a liquidated sum for which
the judgment has been given;

	 	(c)	 	is final;

	 	(d)	 	is not in respect of taxes, a fine or a penalty; and

	 	(e)	 	was not obtained in a manner and is not of a kind the enforcement of which is
contrary to natural justice or the public policy of the Cayman Islands.

	3.10	 	It is not necessary to ensure the legality, validity, enforceability or admissibility in
evidence of the Transaction Documents that any document be filed, recorded or enrolled with
any governmental authority or agency or any official body in the Cayman Islands.

	3.11	 	The Company is not entitled to any immunity under the laws of the Cayman Islands whether
characterised as sovereign immunity or otherwise for any legal proceedings in the Cayman
Islands to enforce or to collect upon the Transaction Documents.

	3.12	 	None of the parties to the Transaction Documents (other than the Company) is or will be
treated as resident, domiciled or carrying on or transacting business in the Cayman Islands
solely by reason of the negotiation, preparation or execution of the Transaction Documents.

	4	 	Qualifications

The opinions expressed above are subject to the following qualifications:

	4.1	 	The term “enforceable” as used above means that the obligations assumed by the Company under
the Transaction Documents are of a type which the courts of the Cayman Islands will enforce.
It does not mean that those obligations will necessarily be enforced in all circumstances in
accordance with their terms. In particular:

	 	(a)	 	enforcement may be limited by bankruptcy, insolvency, liquidation,
reorganisation, readjustment of debts or moratorium or other laws of general
application relating to or affecting the rights of creditors;

	 	(b)	 	enforcement may be limited by general principles of equity. For example,
equitable remedies such as specific performance may not be available, inter alia, where
damages are considered to be an adequate remedy;

	 	(c)	 	some claims may become barred under the statutes of limitation or may be or
become subject to defences of set off, counterclaim, estoppel and similar defences;

	 	(d)	 	where obligations are to be performed in a jurisdiction outside the Cayman
Islands, they may not be enforceable in the Cayman Islands to the extent that
performance would be illegal under the laws of that jurisdiction;

 

4

 

	 	(e)	 	the courts of the Cayman Islands have jurisdiction to give judgment in the
currency of the relevant obligation and statutory rates of interest payable upon
judgments will vary according to the currency of the judgment. If the Company becomes
insolvent and is
made subject to a liquidation proceeding, the courts of the Cayman Islands will
require all debts to be proved in a common currency, which is likely to be the
“functional currency” of the Company determined in accordance with applicable
accounting principles. Currency indemnity provisions have not been tested, so far as
we are aware, in the courts of the Cayman Islands;

	 	(f)	 	arrangements that constitute penalties will not be enforceable;

	 	(g)	 	the courts of the Cayman Islands may decline to exercise jurisdiction in
relation to substantive proceedings brought under or in relation to the Transaction
Documents in matters where they determine that such proceedings may be tried in a more
appropriate forum; and

	 	(h)	 	we reserve our opinion as to the enforceability of the relevant provisions of
the Transaction Documents to the extent that they purport to grant exclusive
jurisdiction to the courts of a particular jurisdiction as there may be circumstances
in which the courts of the Cayman Islands would accept jurisdiction notwithstanding
such provisions.

	4.2	 	Applicable court fees will be payable in respect of the enforcement of the Transaction
Documents.

	4.3	 	Cayman Islands stamp duty may be payable if the original Transaction Documents are brought to
or executed in the Cayman Islands.

	4.4	 	To maintain the Company in good standing under the laws of the Cayman Islands, annual filing
fees must be paid and returns made to the Registrar of Companies.

	4.5	 	The Company must make an entry in its Register of Mortgages and Charges in respect of all
mortgages and charges created under the Transaction Documents in order to comply with section
54 of the Companies Law (2010 Revision) of the Cayman Islands; failure by the Company to
comply with this requirement does not operate to invalidate any mortgage or charge though it
may be in the interests of the secured parties that the Company should comply with the
statutory requirements.

	4.6	 	The obligations of the Company may be subject to restrictions pursuant to United Nations
sanctions as implemented under the laws of the Cayman Islands.

	4.7	 	A certificate, determination, calculation or designation of any party to the Transaction
Documents as to any matter provided therein might be held by a Cayman Islands court not to be
conclusive final and binding if, for example, it could be shown to have an unreasonable or
arbitrary basis, or in the event of manifest error.

	4.8	 	The Litigation Search of the Court Register would not reveal, amongst other things, an
Originating Process filed with the Grand Court which, pursuant to the Grand Court Rules or
best practice of the Clerk of the Courts’ office, should have been entered in the Court
Register but was not in fact entered in the Court Register (properly or at all).

 

5

 

	4.9	 	In principle the courts of the Cayman Islands will award costs and disbursements in
litigation in accordance with the relevant contractual provisions but there remains some
uncertainty as to the way in which the rules of the Grand Court will be applied in practice.
Whilst it is clear that costs incurred prior to judgment can be recovered in accordance with
the contract, it is likely that post-judgment costs (to the extent recoverable at all) will be subject to taxation in accordance
with Grand Court Rules Order 62.

	4.10	 	We reserve our opinion as to the extent to which the courts of the Cayman Islands would, in
the event of any relevant illegality, sever the offending provisions and enforce the remainder
of the transaction of which such provisions form a part, notwithstanding any express
provisions in this regard.

	4.11	 	We make no comment with regard to the references to foreign statutes in the Transaction
Documents.

We express no view as to the commercial terms of the Transaction Documents or whether such terms
represent the intentions of the parties and make no comment with regard to the representations
that may be made by the Company.

This opinion is addressed to and is for the benefit solely of the addressees and may not be relied
upon by, or disclosed to, any other person without our prior written consent.

Yours faithfully

Maples and Calder

 

6

 

Schedule

The Company

Bank of America, N.A. as Administrative Agent

 

 

 

Herbalife Ltd.

PO Box 309, Ugland House 

Grand Cayman

KY1-1104 

Cayman Islands

March 9, 2011

			
	To:	 	Maples and Calder

PO Box 309, Ugland House

Grand Cayman 

KY1-1104

Cayman Islands

Dear Sirs

Herbalife Ltd. (the “Company”)

I, Brett Chapman, being General Counsel and Secretary of the Company, am aware that you are being
asked to provide a legal opinion (the “Opinion”) in relation to certain aspects of Cayman Islands
law. Capitalised terms used in this certificate have the meaning given to them in the Opinion. I
hereby certify that:

	1	 	The Memorandum and Articles of Association of the Company as adopted or registered on 1
December 2004 remain in full force and effect and are unamended.

	2	 	The Company has not entered into any mortgages or charges over its property or assets other
than those entered in the register of mortgages and charges, or contemplated by the
Transaction Documents.

	3	 	The Minutes of the meeting of the board of directors held on February 18, 2011 (the
“Meeting”) at which the Transaction Documents were approved are a true and correct record of
the proceedings of the Meeting, which was duly convened and held, and at which a quorum was
present throughout and at which each director disclosed his interest (if any), in the manner
prescribed in the Articles of Association.

	4	 	The shareholders of the Company have not restricted or limited the powers of the directors in
any way. There is no contractual or other prohibition (other than as arising under Cayman
Islands law) binding on the Company prohibiting it from entering into and performing its
obligations under the Transaction Documents.

	5	 	The resolutions set forth in the Minutes were duly adopted, are in full force and effect at
the date hereof and have not been amended, varied or revoked in any respect.

 

 

 

	6	 	The directors of the Company at the date of the Meeting and at the date hereof were and are
as follows:

Michael
O. Johnson

Leroy Barnes, Jr.

Richard Bermingham

Pedro Cardoso 

Jeffrey Dunn 

Murray Dashe

Lawrence Higby 

Colombe Nicholas 

John Tartol

	7	 	You have been provided with complete and accurate copies of all minutes of meetings or
written resolutions or consents of the shareholders and directors (or any committee thereof)
of the Company (which were duly convened, passed and/or (as the case may be) signed and
delivered in accordance with the Articles of Association of the Company) and the Certificate
of Incorporation, Memorandum and Articles of Association (as adopted on incorporation and as
subsequently amended) and statutory registers of the Company.

	8	 	Prior to, at the time of, and immediately following the execution of the Transaction
Documents the Company was, or will be, able to pay its debts as they fell, or fall, due and
has entered, or will enter, into the Transaction Documents for proper value and not with an
intention to defraud or wilfully defeat an obligation owed to any creditor or with a view to
giving a creditor a preference.

	9	 	Each director considers the transactions contemplated by the Transaction Documents to be of
commercial benefit to the Company and has acted bona fide in the best interests of the
Company, and for a proper purpose of the Company, in relation to the transactions which are
the subject of the Opinion.

	10	 	To the best of my knowledge and belief, having made due inquiry, the Company is not the
subject of legal, arbitral, administrative or other proceedings in any jurisdiction. Nor have
the directors or shareholders taken any steps to have the Company struck off or placed in
liquidation, nor have any steps been taken to wind up the Company. Nor has any receiver been
appointed over any of the Company’s property or assets.

	11	 	The Company is not a central bank, monetary authority or other sovereign entity of any state
and is not a subsidiary, direct or indirect, of any sovereign entity or state.

I confirm that you may continue to rely on this certificate as being true and correct on the day
that you issue the Opinion unless I shall have previously notified you personally to the contrary.

Signature page follows

 

2

 

Signature
page to Herbalife Ltd. opinion certificate

	 	 	 	 
	Signature:
	 	 	 
	 

	 	 
 General
Counsel and Secretary	 

 

3

 

Exhibit J-3

To: Bank of America, N.A. as Administrative 

Agent under the Credit Agreement (as 

defined in Appendix A) and the Lenders

Luxembourg, 9 March 2011

46011-4973840v5

Herbalife International Luxembourg S.à r.l.

WH Luxembourg Holdings S.à r.l.

Dear Sirs,

We are lawyers admitted to practice under the laws of Luxembourg.

1. In arriving at the opinions expressed below, we have examined and relied on the
documents listed in Appendices B and C to this Opinion.

Words and expressions defined in the Documents shall, unless otherwise defined
herein, have the same meanings when used in this Opinion.

Words and expressions defined in Appendix A shall have the same meanings when used in
this Opinion.

2. This Opinion is confined to Luxembourg Law. Accordingly, we express no opinion with
regard to any system of law other than Luxembourg Law. In particular:

	 	(a)	 	We express no opinion (i) on public international law or
on the rules of or promulgated under any treaty or by any treaty
organisation or on any taxation laws of any jurisdiction (including
Luxembourg), except as specifically set out herein, if applicable, (ii)
that the future or continued performance of a party’s obligations or the
consummation of the transaction contemplated by the Contractual Documents
will not contravene Luxembourg Law, its application or interpretation in
each case to the extent that such laws, their application or
interpretation, are altered in the future, and (iii) with regard to the
effect of any
systems of law (other than Luxembourg Law) even in cases where, under Luxembourg
Law, any foreign law should be applied, and we therefore assume that any
applicable law (other than Luxembourg Law) would not affect or qualify the
opinions as set out below.

Arendt & Medernach — Avocats

14, rue Erasme     L-2082 Luxembourg     •     Tel: (352) 40 78 78 1     Fax: (352) 40 78 04     •     www.arendt.com

LUXEMBOURG  BRUSSELS  DUBAI  HONG
KONG  LONDON  NEW
YORK  in alliance with DILLON EUSTACE DUBLIN

 

1

 

	 	(b)	 	We express no opinion as to the correctness of any representation or warranty
given by any of the parties (express or implied) under or by virtue of the Contractual
Documents, save if and insofar as the matters represented or warranted are the subject
matter of a specific opinion herein nor do we express any opinion on the transaction
considered by the Contractual Documents.

	 
	 	(c)	 	We have not been responsible for investigating or verifying the accuracy of the
facts (or statements of foreign law) or the reasonableness of any statements of opinion
or intention contained in any Documents, or for verifying that no material facts or
provisions have been omitted therefrom.

3. For the purpose of this Opinion we have assumed:

	 	(i)	 	the genuineness of all signatures, seals and stamps on all Documents submitted
to us and the legal capacity of all individuals who have signed such documents;

	 
	 	(ii)	 	the completeness and conformity to originals thereof of all Documents
submitted to us as certified, photostatic, faxed or e-mailed copies and the
authenticity of the originals of such documents;

	 
	 	(iii)	 	that the Contractual Documents constitute legal, valid, binding and
enforceable obligations of the parties thereto for all purpose of the law to which
they are expressly made subject;

	 
	 	(iv)	 	the absence of any other arrangements between any of the parties to the
Contractual Documents which modify or supersede any of the terms of the Contractual
Documents;

	 
	 	(v)	 	that the Documents submitted to us for examination have not been rescinded or
amended in any way since the date hereof;

	 
	 	(vi)	 	that any agreement or document referred to in the Contractual Documents
constitute the legal, valid, binding and enforceable obligations of the parties
thereto (except for those items opined on herein);

	 
	 	(vii)	 	that, in respect of the Contractual Documents and each of the transactions
contemplated by, referred to in, provided for or effected by the Contractual Documents,
(i) the parties to the Contractual Documents entered into the same in good faith and
for the purpose of carrying out their business, (ii) the parties to the Contractual
Documents entered into the same on arms’ length commercial terms and (iii) the parties
to the Contractual Documents entered into the same without any intention to defraud or
deprive of any legal benefit any other parties (such as third parties and in particular
creditors) or to circumvent any applicable mandatory laws or regulations of any
jurisdiction;

 

2

 

	 	(viii)	 	that all representations and warranties given by any of the parties (express or
implied) under or by virtue of the Contractual Documents, save if and insofar as the
matters represented are the subject matter of a specific opinion herein, are and will be
true and accurate when made;

	 
	 	(ix)	 	that the principal place of business (principal établissement), the place of effective
management (siège de direction effective) and (for the purposes of the Insolvency Regulation)
the centre of main interests (centre des intérêts principaux) of the Companies are located at
the place of their registered office (siège statutaire) in Luxembourg and the Company does
not have any establishment (within the meaning of the Insolvency Regulation) outside
Luxembourg;

	 
	 	(x)	 	that the Board Resolutions were properly and validly passed, that the managers have properly
performed their duties and that all provisions relating to the declaration of the managers’
interests or the power of the interested managers to vote were fully observed;

	 
	 	(xi)	 	that the Contractual Documents have in fact been signed by the person(s) authorized to sign
the Contractual Documents for and on behalf of the Companies as indicated in the Board
Resolutions;

	 
	 	(xii)	 	that during the full search at the Luxembourg trade and companies register, the records of
the Luxembourg trade and companies register with respect to the Companies were complete and
accurate at the time of such search and disclosed all information which is material for the
purpose of this Opinion and such information has not since been materially altered;

	 
	 	(xiii)	 	that the choice of the laws of the State of New York to govern the Contractual Documents
and the submission to the Courts of the State of New York are valid and binding under the
laws of any applicable jurisdiction (other than Luxembourg) and that such choice of law and
submission to jurisdiction would be recognised and given effect by the courts of any
jurisdiction (other than Luxembourg);

	 
	 	(xiv)	 	that the Companies have complied with all legal requirements of the Luxembourg law of 31
May 1999 regarding the domiciliation of companies;

	 
	 	(xv)	 	that no provisions of any foreign law shall have any bearing on the opinions set out herein;

	 
	 	(xvi)	 	that all consents, approvals, authorisations or orders required from any governmental or
other regulatory authorities outside Luxembourg and all other requirements outside Luxembourg
for the legality, validity and enforceability of the Contractual Documents have been duly
obtained or fulfilled and are and will remain in full force and effect and that any conditions
to which they are subject have been satisfied; and

	 
	 	(xvii)	 	that each of the Companies has a proper and proportionate corporate interest to enter into
the Contractual Documents and to perform its obligations thereunder.

 

3

 

4. Subject as mentioned herein and subject to any factual matters, documents or events not
disclosed to us, we are of the opinion that:

	 	1)	 	the Company 1 is a société à responsabilité limitée (private limited liability
company) duly incorporated before a Luxembourg notary and validly existing for an
unlimited duration under the laws of Luxembourg.

	 
	 	2)	 	The Company 2 is a société à responsabilité limitée (private limited liability
company) duly incorporated before a Luxembourg notary and validly existing for an
unlimited duration under the laws of Luxembourg.

	 
	 	3)	 	The Company 1 has the necessary authority, corporate power and capacity under
the Articles of Incorporation 1 to execute the Contractual Documents to which it is a
party, to perform its obligations under the Contractual Documents to which it is a
party and has taken all necessary corporate action required by the Articles of
Incorporation 1 and Luxembourg Law to authorize the entry into, the execution of and
the performance of the Contractual Documents to which it is a party.

	 
	 	4)	 	The Company 2 has the necessary authority, corporate power and capacity under
the Articles of Incorporation 2 to execute the Contractual Documents to which it is a
party, to perform its obligations under the Contractual Documents to which it is a
party and has taken all necessary corporate action required by the Articles of
Incorporation 2 and Luxembourg Law to authorize the entry into, the execution of and
the performance of the Contractual Documents to which it is a party.

	 
	 	5)	 	The Contractual Documents to which the Company 1 is a party have been duly
executed by and on behalf of the Company 1 in accordance with Luxembourg Law, the
Articles of Incorporation 1 and the Board Resolutions 1.

	 
	 	6)	 	The Contractual Documents to which the Company 2 is a party have been duly
executed by and on behalf of the Company 2 in accordance with Luxembourg Law, the
Articles of Incorporation 2 and the Board Resolutions 2.

	 
	 	7)	 	According to, and based solely on, the Non-Registration Certificates, none of
the following judicial decisions has been recorded with the Luxembourg Trade and
Companies Register with respect to the Companies: (i) judgements or decisions
pertaining to the opening of insolvency proceedings (faillite), (ii) judgements or
court orders approving a voluntary arrangement with creditors (concordat
préventif de faillite), (iii) court orders pronouncing a suspension of payments (sursis
de paiement), (iv) judicial decisions regarding controlled management (gestion
contrôlée), (v) judicial decisions pronouncing its dissolution or deciding on its
liquidation, (vi) judicial decisions regarding the appointment of an interim
administrator (administrateur provisoire), or (vii) judicial decisions taken by foreign
judicial authorities concerning insolvency (faillite), voluntary
arrangement (concordat) or any similar procedure in accordance with the
Insolvency Regulation.

 

4

 

	 	8)	 	The execution by the Company 1 of the Contractual Documents does not
conflict with, or result in, a breach of the Articles of Incorporation 1 or Luxembourg
Law.

	 
	 	9)	 	The execution by the Company 2 of the Contractual Documents does not conflict with, or
result in, a breach of the Articles of Incorporation 2 or Luxembourg Law.

	 
	 	10)	 	In any proceedings instituted in Luxembourg for the enforcement of any provisions of the
Contractual Agreements which are stipulated to be governed by the law of the State of New
York, the choice of the law of the state of New York, as the case may be, as the governing law
thereof will be recognized and enforced by the courts of Luxembourg, in accordance with and
subject to the provisions of the Rome I Regulation.

	 
	 	11)	 	The submission by the Company in the Contractual Documents to the jurisdiction of the courts
of the State of New York is legal, valid, binding and enforceable against the Company and will
be recognized and given effect to by a court of competent jurisdiction in Luxembourg in
accordance with Article 678 et seq. of the Luxembourg Nouveau Code de Procédure Civile.

	 
	 	12)	 	A judgment upon the Contractual Agreements obtained from a court of competent jurisdiction of
the Court of the State of New York sitting in New York County and of the United States
District Court of Southern District of New York in respect of the Contractual Agreements which
are enforceable in the State of New York in accordance with the law of the State of New York,
may be entered and enforced through a court of competent jurisdiction of Luxembourg subject to
compliance with the enforcement procedures set out in Article 678 ff. of the Luxembourg
Nouveau Code de Procédure Civile being (i) the foreign court must properly have had
jurisdiction to hear and determine the matter, (ii) the decision of the foreign court must be
final and enforceable in the country in which it was rendered, (iii) the foreign court must
have applied the proper law to the matter submitted to it, (iv) the decision of the foreign
court must not have been obtained by fraud, but in compliance with the rights of the defendant
and (v) the decision of the foreign court must not be contrary to Luxembourg international
public policy or have been given in proceedings of a penal nature.

	 
	 	13)	 	Under Luxembourg Law, none of the following steps is necessary to ensure that the Contractual
Documents are valid or admissible in evidence or to ensure the priority or effectiveness of
the security interests created by the Contractual Documents and none of those steps will be
necessary in connection with any proceedings or other steps to enforce the Contractual
Documents or the security interest created thereby in Luxembourg:

	 	(i)	 	the execution of the Contractual Documents as a notarial act or in any
other authentic form;

	 
	 	(ii)	 	the consent, approval, license or authorization by any public authority,
the registration, filing or recording of the Contractual Documents or any form
relating to the Contractual Documents, except that registration with the
Administration de I’Enregistrement et des Domaines in Luxembourg may be
required as disclosed in the qualifications set out hereinafter;

 

5

 

	 	(iii)	 	the payment of any stamp, registration or other
documentary tax in relation to the Contractual Documents except payment of
registration tax in case registration with the Administration de
I’Enregistrement et des Domaines in Luxembourg may be required as disclosed
in the qualifications set out hereinafter.

	 	14)	 	The Luxembourg Companies (nor any of their assets) do not enjoy any
immunity from jurisdiction of any relevant court or from any legal proceedings
(whether through service, notice, attachment in aid of execution, execution or
otherwise) under the laws of Luxembourg.

	 
	 	15)	 	It is not necessary solely in order for the Lenders to enforce any of their
rights under the Contractual Documents that they should be licensed, registered,
qualified or otherwise authorised to carry on business or banking business in
Luxembourg.

5. The opinions expressed above are subject to the following qualifications:

	 	(i)	 	Luxembourg legal concepts are expressed in English terms and not in their
original French terms. The concepts concerned may not be identical to the concepts
described by the same English terms as they exist in the laws of other
jurisdictions. This Opinion may, therefore, only be relied on upon the express
condition that any issues of the interpretation or liability arising thereunder will
be governed by Luxembourg Law and be brought before a court in Luxembourg;

	 
	 	(ii)	 	the opinions set out
hereabove are subject to all limitations by reason of
national or foreign bankruptcy, insolvency, moratorium, controlled management,
suspension of payment, fraudulent conveyance, general settlement of composition with
creditors, general settlement with creditors, reorganisation or similar laws
affecting the rights of creditors generally;

	 
	 	(iii)	 	we have not been responsible for investigating or verifying the accuracy
of the facts (or statements of foreign law) or the reasonableness of any statements
of opinion or intention contained in any documents (other than this Opinion), or for
verifying that no material facts or provisions have been omitted therefrom;

	 
	 	(iv)	 	where any obligations are to be performed or observed or are based upon a
matter arising in a jurisdiction outside the Grand Duchy of Luxembourg, they may not
be enforceable under Luxembourg law if and to the extent that such performance or
observance would be unlawful, unenforceable, or contrary to public policy or public
order under the laws of such jurisdiction;

	 
	 	(v)	 	claims may become barred under the statutory limitation period rules or
may be or become subject to defences of set-off or counterclaims;

	 
	 	(vi)	 	actions in Luxembourg courts must be brought in the name of the principal not
of an agent of the principal;

 

6

 

	 	(vii)	 	we express no opinion on the rationale of the underlying transaction;

	 
	 	(viii)	 	choice of law provisions in the Contractual Documents will be recognised and given
effect to by a Luxembourg court except in case of legal fraud or unless such choices
of law are meant to circumvent rules of public order of the laws that would have
otherwise applied in the absence of such choice of law provisions;

	 
	 	(ix)	 	a Luxembourg court will refuse to give effect to any particular provisions
of a foreign law if, pleaded and proved, its application in the circumstances of the
case would either be contrary to the mandatory rules of Luxembourg law or
incompatible with Luxembourg international public policy or international public
order;

	 
	 	(x)	 	the registration of the Contractual Documents with the Administration de
I’Enregistrement et des Domaines in Luxembourg may be required in the case of court
proceedings in Luxembourg (if competent) or, in the case that the Contractual
Documents must be produced before an official authority, in which case a
registration duty would become payable. The courts or authority may, in this
context, require that the Contractual Documents be translated into the French or
German language;

	 
	 	(xi)	 	the Non-Registration Certificates do not determine conclusively whether or
not the matters referred to therein have occurred or not at the date referred to in
such Non-Registration Certificates, in particular due to the lapse between the
passing of the actual judicial decisions referred to therein and their recording
with the Luxembourg trade and companies register;

	 
	 	(xii)	 	we express no opinion as to the tax consequences of the entry of the
Companies into the Contractual Documents; and

	 
	 	(xiii)	 	we express no opinion with respect to the enforceability of the Contractual
Documents which we have not reviewed in this respect.

6. This Opinion is solely for the benefit of the addressee of this Opinion and for the purposes of
the Contractual Documents. It is not to be transmitted to any other person nor is it to be relied
upon by any other person verified or for any other purpose quoted or referred to in any public
document or filed with any governmental agency or other person without our consent. This Opinion is
strictly limited to the matters stated herein and does not extend to, and is not to be read as
extending by implication to, any agreement or document referred to in the Contractual Documents or
otherwise. This Opinion is given on the basis that it will be governed by and construed in
accordance with Luxembourg Law and will be subject to Luxembourg jurisdiction.

Yours faithfully,

Arendt & Medernach

by: Sophie Wagner-Chartier

 

7

 

APPENDIX A — DEFINITIONS

Articles of Incorporation 1 means the Articles of Incorporation 1 as listed in Appendix B.

Articles of Incorporation 2 means the Articles of Incorporation 2 as listed in Appendix B.

Board Resolutions 1 means the Board Resolutions 1 as listed in Appendix B.

Board Resolutions 2 means the Board Resolutions 2 as listed in Appendix B.

Brussels Regulation means the European Council Regulation (EC) n°44/2001 of 22 December 2000 on
jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ
EC 12, 16/01/2001, p. 1 ff).

Company Law means the Luxembourg law of 10 August 1915, on commercial companies, as amended.

Company 1 means Herbalife International Luxembourg S.à r.l., a société à responsabilité limitée,
having its registered office at 18, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg,
with a share capital of EUR 25,000, registered with the Luxembourg Trade and Companies Register
under number B 88006.

Company 2 means WH Luxembourg Holdings S.à r.l., a société à responsabilité limitée, having its
registered office at 13-15, avenue de la Liberté, L-1931 Luxembourg, Grand Duchy of Luxembourg,
with a share capital of EUR 5,024,540.88, registered with the Luxembourg Trade and Companies
Register under number B 88007.

Contractual Documents means the document as listed in Appendix C.

Corporate Documents means the documents as listed in Appendix B.

Credit Agreement means the credit agreement as listed in Appendix C.

Documents mean the Contractual Documents and the Corporate Documents.

Guaranty 1 means the Guaranty 1 as listed in Appendix C.

Guaranty 2 means the Guaranty 2 as listed in Appendix C.

Insolvency Regulation means the Council Regulation (EC) No 1346/2000 of 29 May 2000 on
insolvency proceedings (OJEC L 160, 30/06/2000, p. 1 ff.).

Lenders means the lenders under the Credit Agreement.

Luxembourg Companies means the Company 1 and the Company 2.

 

8

 

Luxembourg Law means the laws of Luxembourg as they stand as at the date hereof and as such laws
are currently interpreted in published case law (except if published within the last thirty
days) of the courts of Luxembourg or, to the extent this Opinion concerns documents signed
prior to this date, the date of their signature and the period to date.

Non-registration Certificates 1 means the Non-Registration Certificate 1 as listed in Appendix B.

Non-registration Certificates 2 means the Non-Registration Certificate 2 as listed in Appendix B.

Non-registration Certificates means the Non-Registration Certificate 1 and the Non-Registration
Certificate 2.

Opinion means this legal opinion.

Rome / Regulation means the regulation (EC) N° 593/2008 of the European Parliament and of the
Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) (OJEU L 177,
04/07/2008, p. 6 ff.).

 

9

 

APPENDIX B — CORPORATE DOCUMENTS

	1.	 	A copy of the updated articles of incorporation of the Company 1 as at 7 December 2009 (the
“Articles of Incorporation 1”);

	 
	2.	 	A copy of the updated articles of incorporation of the Company 2 as at 7 December 2009 (the
“Articles of Incorporation 2”);

	 
	3.	 	A copy of the signed circular resolutions of the board of managers of the Company 1 dated 9
March 2011 which, inter alia, approve the entering of the Company 1 into the Contractual
Documents to which it is a party (the “Board Resolutions 1”);

	 
	4.	 	A copy of the signed circular resolutions of the board of managers of the Company 2 dated 9
March 2011 which, inter alia, approve the entering of the Company 1 into the Contractual
Documents to which it is a party (the “Board Resolutions 2”);

	 
	5.	 	A copy of a non-registration certificate issued by the Luxembourg Trade and Companies
Register with respect to Company 1 dated 9 March 2011 and reflecting the situation of 8 March
2011 (the “Non-Registration Certificate 1”);

	 
	6.	 	A copy of a non-registration certificate issued by the Luxembourg Trade and Companies
Register with respect to Company 2 dated 9 March 2011 and reflecting the situation of 8 March
2011 (the “Non-Registration Certificate 2”);

	 
	7.	 	An electronic version of an extract of the Luxembourg trade and companies register with
respect to the Company 1 dated 9 March 2011;

	 
	8.	 	An electronic version of an extract of the Luxembourg trade and companies register with
respect to the Company 2 dated 9 March 2011.

 

10

 

APPENDIX C — CONTRACTUAL DOCUMENTS

	1.	 	A signed copy of a New York law governed credit agreement dated 9 March 2011 entered into
between Herbalife International, Inc., Herbalife Ltd. and Herbalife International Luxembourg
S.à r.l., as borrowers, Bank of America, N.A. as Administrative Agent, Swing Line Lender and
L/C Issuer and the other Lenders party thereto (the “Credit Agreement”);

	 
	2.	 	A signed copy of a New York law governed guaranty dated 9 March 2011, granted by Company 1 in
accordance with the terms of the Credit Agreement (the “Guaranty 1”); and

	 
	3.	 	A signed copy of a New York law governed guaranty dated 9 March 2011, granted by Company 2 in
accordance with the terms of the Credit Agreement (the “Guaranty 2”).

 

11

 

To: Bank of America, N.A. as Administrative

Agent under the Credit Agreement (as 
defined
in Appendix A) and the Lenders

Luxembourg,            March 2011

46011-4973840v4

Herbalife International Luxembourg S.à r.l.

WH Luxembourg Holdings S.à r.l.

Dear Sirs,

We are lawyers admitted to practice under the laws of Luxembourg.

1. In arriving at the opinions expressed below, we have examined and relied on the documents listed
in Appendices B and C to this Opinion.

Words and expressions defined in the Documents shall, unless otherwise defined herein, have the
same meanings when used in this Opinion.

Words and expressions defined in Appendix A shall have the same meanings when used in this Opinion.

2. This Opinion is confined to Luxembourg Law. Accordingly, we express no opinion with regard to
any system of law other than Luxembourg Law. In particular:

	 	(a)	 	We express no opinion (i) on public international law or on the rules of or
promulgated under any treaty or by any treaty organisation or on any taxation laws of
any jurisdiction (including Luxembourg), except as specifically set out herein, if
applicable, (ii) that the future or continued performance of a party’s obligations or
the consummation of the transaction contemplated by the Contractual Documents will not
contravene Luxembourg Law, its application or interpretation in each case to the extent
that such laws, their application or interpretation, are altered in the future, and
(iii) with regard to the effect of any
systems of law (other than Luxembourg Law) even in cases where, under Luxembourg
Law, any foreign law should be applied, and we therefore assume that any applicable
law (other than Luxembourg Law) would not affect or qualify the opinions as set out
below.

 

1

 

	 	(b)	 	We express no opinion as to the correctness of any representation or warranty
given by any of the parties (express or implied) under or by virtue of the Contractual
Documents, save if and insofar as the matters represented or warranted are the subject
matter of a specific opinion herein nor do we express any opinion on the transaction
considered by the Contractual Documents.

	 
	 	(c)	 	We have not been responsible for investigating or verifying the accuracy of the
facts (or statements of foreign law) or the reasonableness of any statements of opinion
or intention contained in any Documents, or for verifying that no material facts or
provisions have been omitted therefrom.

3. For the purpose of this Opinion we have assumed:

	 	(i)	 	the genuineness of all signatures, seals and stamps on all Documents submitted
to us and the legal capacity of all individuals who have signed such documents;

	 
	 	(ii)	 	the completeness and conformity to originals thereof of all Documents submitted
to us as certified, photostatic, faxed or e-mailed copies and the authenticity of the
originals of such documents;

	 
	 	(iii)	 	that the Contractual Documents constitute legal, valid, binding and
enforceable obligations of the parties thereto for all purpose of the law to which they
are expressly made subject;

	 
	 	(iv)	 	the absence of any other arrangements between any of the parties to the
Contractual Documents which modify or supersede any of the terms of the Contractual
Documents;

	 
	 	(v)	 	that the Documents submitted to us for examination have not been rescinded or
amended in any way since the date hereof;

	 
	 	(vi)	 	that any agreement or document referred to in the Contractual Documents
constitute the legal, valid, binding and enforceable obligations of the parties thereto
(except for those items opined on herein);

	 
	 	(vii)	 	that, in respect of the Contractual Documents and each of the transactions
contemplated by, referred to in, provided for or effected by the Contractual Documents,
(i) the parties to the Contractual Documents entered into the same in good faith and
for the purpose of carrying out their business, (ii) the parties to the Contractual
Documents entered into the same on arms’ length commercial terms and (iii) the parties
to the Contractual Documents entered into the same without any intention to defraud or
deprive of any legal benefit any other parties (such as third parties and in particular
creditors) or to circumvent any applicable mandatory laws or regulations of any
jurisdiction;

 

2

 

	 	(viii)	 	that all representations and warranties given by any of the parties (express or
implied) under or by virtue of the Contractual Documents, save if and insofar as the
matters represented are the subject matter of a specific opinion herein, are and will
be true and accurate when made;

	 
	 	(ix)	 	that the principal place of business (principal établissement), the place of
effective management (siège de direction effective) and (for the purposes of the
Insolvency Regulation) the centre of main interests (centre des intérêts principaux) of
the Companies are located at the place of their registered office (siège statutaire) in
Luxembourg and the Company does not have any establishment (within the meaning of the
Insolvency Regulation) outside Luxembourg;

	 
	 	(x)	 	that the Board Resolutions were properly and validly passed, that the managers
have properly performed their duties and that all provisions relating to the
declaration of the managers’ interests or the power of the interested managers to vote
were fully observed;

	 
	 	(xi)	 	that the Contractual Documents have in fact been signed by the person(s)
authorized to sign the Contractual Documents for and on behalf of the Companies as
indicated in the Board Resolutions;

	 
	 	(xii)	 	that during the full search at the Luxembourg trade and companies register,
the records of the Luxembourg trade and companies register with respect to the
Companies were complete and accurate at the time of such search and disclosed all
information which is material for the purpose of this Opinion and such information has
not since been materially altered;

	 
	 	(xiii)	 	that the choice of the laws of the State of New York to govern the Contractual
Documents and the submission to the Courts of the State of New York are valid and
binding under the laws of any applicable jurisdiction (other than Luxembourg) and that
such choice of law and submission to jurisdiction would be recognised and given effect
by the courts of any jurisdiction (other than Luxembourg);

	 
	 	(xiv)	 	that the Companies have complied with all legal requirements of the Luxembourg
law of 31 May 1999 regarding the domiciliation of companies;

	 
	 	(xv)	 	that no provisions of any foreign law shall have any bearing on the opinions
set out herein;

	 
	 	(xvi)	 	that all consents, approvals, authorisations or orders required from any
governmental or other regulatory authorities outside Luxembourg and all other
requirements outside Luxembourg for the legality, validity and enforceability of the
Contractual Documents have been duly obtained or fulfilled and are and will remain in
full force and effect and that any conditions to which they are subject have been
satisfied; and

	 
	 	(xvii)	 	that each of the Companies has a proper and proportionate corporate interest to enter
into the Contractual Documents and to perform its obligations thereunder.

 

3

 

4. Subject as mentioned herein and subject to any factual matters, documents or events not
disclosed to us, we are of the opinion that:

	 	1)	 	the Company 1 is a société à responsabilité limitée (private limited liability
company) duly incorporated before a Luxembourg notary and validly existing for an
unlimited duration under the laws of Luxembourg.

	 
	 	2)	 	The Company 2 is a société à responsabilité limitée (private limited liability
company) duly incorporated before a Luxembourg notary and validly existing for an
unlimited duration under the laws of Luxembourg.

	 
	 	3)	 	The Company 1 has the necessary authority, corporate power and capacity under
the Articles of Incorporation 1 to execute the Contractual Documents to which it is a
party, to perform its obligations under the Contractual Documents to which it is a
party and has taken all necessary corporate action required by the Articles of
Incorporation 1 and Luxembourg Law to authorize the entry into, the execution of and
the performance of the Contractual Documents to which it is a party.

	 
	 	4)	 	The Company 2 has the necessary authority, corporate power and capacity under
the Articles of Incorporation 2 to execute the Contractual Documents to which it is a
party, to perform its obligations under the Contractual Documents to which it is a
party and has taken all necessary corporate action required by the Articles of
Incorporation 2 and Luxembourg Law to authorize the entry into, the execution of and
the performance of the Contractual Documents to which it is a party.

	 
	 	5)	 	The Contractual Documents to which the Company 1 is a party have been duly
executed by and on behalf of the Company 1 in accordance with Luxembourg Law, the
Articles of Incorporation 1 and the Board Resolutions 1.

	 
	 	6)	 	The Contractual Documents to which the Company 2 is a party have been duly
executed by and on behalf of the Company 2 in accordance with Luxembourg Law, the
Articles of Incorporation 2 and the Board Resolutions 2.

	 
	 	7)	 	According to, and based solely on, the Non-Registration Certificates, none of
the following judicial decisions has been recorded with the Luxembourg Trade and
Companies Register with respect to the Companies : (i) judgements or decisions
pertaining to the opening of insolvency proceedings (faillite), (ii) judgements or
court orders approving a voluntary arrangement with creditors (concordat préventif de
faillite), (iii) court orders pronouncing a suspension of payments (sursis de
paiement), (iv) judicial decisions regarding controlled management (gestion
contrôlée), (v) judicial decisions pronouncing its dissolution or deciding on its
liquidation, (vi) judicial decisions regarding the appointment of an interim
administrator (administrateur provisoire), or (vii) judicial decisions taken by foreign
judicial authorities concerning insolvency (faillite), voluntary arrangement
(concordat) or any similar procedure in accordance with the Insolvency Regulation.

 

4

 

	 	8)	 	The execution by the Company 1 of the Contractual Documents does not conflict
with, or result in, a breach of the Articles of Incorporation 1 or Luxembourg Law.

	 
	 	9)	 	The execution by the Company 2 of the Contractual Documents does not conflict
with, or result in, a breach of the Articles of Incorporation 2 or Luxembourg Law.

	 
	 	10)	 	In any proceedings instituted in Luxembourg for the enforcement of any
provisions of the Contractual Agreements which are stipulated to be governed by the law
of the State of New York, the choice of the law of the state of New York, as the case
may be, as the governing law thereof will be recognized and enforced by the courts of
Luxembourg, in accordance with and subject to the provisions of the Rome I Regulation.

	 
	 	11)	 	The submission by the Company in the Contractual Documents to the jurisdiction
of the courts of the State of New York is legal, valid, binding and enforceable against
the Company and will be recognized and given effect to by a court of competent
jurisdiction in Luxembourg in accordance with Article 678 et seq. of the Luxembourg
Nouveau Code de Procédure Civile.

	 
	 	12)	 	A judgment upon the Contractual Agreements obtained from a court of competent
jurisdiction of the Court of the State of New York sitting in New York County and of
the United States District Court of Southern District of New York in respect of the
Contractual Agreements which are enforceable in the State of New York in accordance
with the law of the State of New York, may be entered and enforced through a court of
competent jurisdiction of Luxembourg subject to compliance with the enforcement
procedures set out in Article 678 ff. of the Luxembourg Nouveau Code de Procédure
Civile being (i) the foreign court must properly have had jurisdiction to hear and
determine the matter, (ii) the decision of the foreign court must be final and
enforceable in the country in which it was rendered, (iii) the foreign court must have
applied the proper law to the matter submitted to it, (iv) the decision of the foreign
court must not have been obtained by fraud, but in compliance with the rights of the
defendant and (v) the decision of the foreign court must not be contrary to Luxembourg
international public policy or have been given in proceedings of a penal nature.

	 
	 	13)	 	Under Luxembourg Law, none of the following steps is necessary to ensure that
the Contractual Documents are valid or admissible in evidence or to ensure the priority
or effectiveness of the security interests created by the Contractual Documents and
none of those steps will be necessary in connection with any proceedings or other steps
to enforce the Contractual Documents or the security interest created thereby in
Luxembourg:

	 	(i)	 	the execution of the Contractual Documents as a notarial act
or in any other authentic form;

	 
	 	(ii)	 	the consent, approval, license or authorization by any public
authority, the registration, filing or recording of the Contractual Documents
or any form relating to the Contractual Documents, except that registration
with the
Administration de l’Enregistrement et des Domaines in Luxembourg may be
required as disclosed in the qualifications set out hereinafter;

 

5

 

	 	(iii)	 	the payment of any stamp, registration or other documentary
tax in relation to the Contractual Documents except payment of registration
tax in case registration with the Administration de l’Enregistrement et des
Domaines in Luxembourg may be required as disclosed in the qualifications set
out hereinafter.

	 	14)	 	The Luxembourg Companies (nor any of their assets) do not enjoy any
immunity from jurisdiction of any relevant court or from any legal proceedings
(whether through service, notice, attachment in aid of execution, execution or
otherwise) under the laws of Luxembourg.

	 
	 	15)	 	It is not necessary solely in order for the Lenders to enforce any of their
rights under the Contractual Documents that they should be licensed, registered,
qualified or otherwise authorised to carry on business or banking business in
Luxembourg.

5. The opinions expressed above are subject to the following qualifications:

	 	(i)	 	Luxembourg legal concepts are expressed in English terms and not in their
original French terms. The concepts concerned may not be identical to the concepts
described by the same English terms as they exist in the laws of other jurisdictions.
This Opinion may, therefore, only be relied on upon the express condition that any
issues of the interpretation or liability arising thereunder will be governed by
Luxembourg Law and be brought before a court in Luxembourg;

	 
	 	(ii)	 	the opinions set out hereabove are subject to all limitations by reason of
national or foreign bankruptcy, insolvency, moratorium, controlled management,
suspension of payment, fraudulent conveyance, general settlement of composition with
creditors, general settlement with creditors, reorganisation or similar laws affecting
the rights of creditors generally;

	 
	 	(iii)	 	we have not been responsible for investigating or verifying the accuracy of
the facts (or statements of foreign law) or the reasonableness of any statements of
opinion or intention contained in any documents (other than this Opinion), or for
verifying that no material facts or provisions have been omitted therefrom;

	 
	 	(iv)	 	where any obligations are to be performed or observed or are based upon a
matter arising in a jurisdiction outside the Grand Duchy of Luxembourg, they may not
be enforceable under Luxembourg law if and to the extent that such performance or
observance would be unlawful, unenforceable, or contrary to public policy or public
order under the laws of such jurisdiction;

	 
	 	(v)	 	claims may become barred under the statutory limitation period rules or may
be or become subject to defences of set-off or counterclaims;

	 
	 	(vi)	 	actions in Luxembourg courts must be brought in the name of the principal not
of an agent of the principal;

 

6

 

	 	(vii)	 	we express no opinion on the rationale of the underlying transaction;

	 
	 	(viii)	 	choice of law provisions in the Contractual Documents will be recognised and given
effect to by a Luxembourg court except in case of legal fraud or unless such choices
of law are meant to circumvent rules of public order of the laws that would have
otherwise applied in the absence of such choice of law provisions;

	 
	 	(ix)	 	a Luxembourg court will refuse to give effect to any particular provisions of
a foreign law if, pleaded and proved, its application in the circumstances of the case
would either be contrary to the mandatory rules of Luxembourg law or incompatible with
Luxembourg international public policy or international public order;

	 
	 	(x)	 	the registration of the Contractual Documents with the Administration de
l’Enregistrement et des Domaines in Luxembourg may be required in the case of court
proceedings in Luxembourg (if competent) or, in the case that the Contractual
Documents must be produced before an official authority, in which case a registration
duty would become payable. The courts or authority may, in this context, require that
the Contractual Documents be translated into the French or German language;

	 
	 	(xi)	 	the Non-Registration Certificates do not determine conclusively whether or
not the matters referred to therein have occurred or not at the date referred to in
such Non-Registration Certificates, in particular due to the lapse between the passing
of the actual judicial decisions referred to therein and their recording with the
Luxembourg trade and companies register;

	 
	 	(xii)	 	we express no opinion as to the tax consequences of the entry of the
Companies into the Contractual Documents; and

	 
	 	(xiii)	 	we express no opinion with respect to the enforceability of the Contractual
Documents which we have not reviewed in this respect.

6. This Opinion is solely for the benefit of the addressee of this Opinion and for the purposes of
the Contractual Documents. It is not to be transmitted to any other person nor is it to be relied
upon by any other person verified or for any other purpose quoted or referred to in any public
document or filed with any governmental agency or other person without our consent. This Opinion is
strictly limited to the matters stated herein and does not extend to, and is not to be read as
extending by implication to, any agreement or document referred to in the Contractual Documents or
otherwise. This Opinion is given on the basis that it will be governed by and construed in
accordance with Luxembourg Law and will be subject to Luxembourg jurisdiction.

Yours faithfully,

Arendt & Medernach

by: Sophie Wagner-Chartier

 

7

 

APPENDIX A — DEFINITIONS

Articles of Incorporation 1 means the Articles of Incorporation 1 as listed in Appendix B.

Articles of Incorporation 2 means the Articles of Incorporation 2 as listed in Appendix B.

Board Resolutions 1 means the Board Resolutions 1 as listed in Appendix B.

Board Resolutions 2 means the Board Resolutions 2 as listed in Appendix B.

Brussels Regulation means the European Council Regulation (EC) n°44/2001 of 22 December 2000 on
jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (OJ
EC 12, 16/01/2001, p.1 ff).

Company Law means the Luxembourg law of 10 August 1915, on commercial companies, as amended.

Company 1 means Herbalife International Luxembourg S.à r.l., a société à responsabilité limitée,
having its registered office at 18, Boulevard Royal, L-2449 Luxembourg, Grand Duchy of Luxembourg,
with a share capital of EUR 25,000, registered with the Luxembourg Trade and Companies Register
under number B 88006.

Company 2 means WH Luxembourg Holdings S.à r.l., a société à responsabilité limitée, having its
registered office at 13-15, avenue de la Liberté, L-1931 Luxembourg, Grand Duchy of Luxembourg,
with a share capital of EUR 5,024,540.88, registered with the Luxembourg Trade and Companies
Register under number B 88007.

Contractual Documents means the document as listed in Appendix C.

Corporate Documents means the documents as listed in Appendix B.

Credit Agreement means the credit agreement as listed in Appendix C.

Documents mean the Contractual Documents and the Corporate Documents.

Guaranty 1 means the Guaranty 1 as listed in Appendix C.

Guaranty 2 means the Guaranty 2 as listed in Appendix C.

Insolvency Regulation means the Council Regulation (EC) N° 1346/2000 of 29 May 2000 on insolvency
proceedings (OJEC L 160, 30/06/2000, p. 1 ff.).

Lenders means the lenders under the Credit Agreement.

Luxembourg Companies means the Company 1 and the Company 2.

 

8

 

Luxembourg Law means the laws of Luxembourg as they stand as at the date hereof and as such laws
are currently interpreted in published case law (except if published within the last thirty
days) of the courts of Luxembourg or, to the extent this Opinion concerns documents signed prior to
this date, the date of their signature and the period to date.

Non-registration Certificates 1 means the Non-Registration Certificate 1 as listed in Appendix B.

Non-registration Certificates 2 means the Non-Registration Certificate 2 as listed in Appendix B.

Non-registration Certificates means the Non-Registration Certificate 1 and the Non-Registration
Certificate 2.

Opinion means this legal opinion.

Rome I Regulation means the regulation (EC) N° 593/2008 of the European Parliament and of the
Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) (OJEU L 177,
04/07/2008, p. 6 ff.).

 

9

 

APPENDIX B — CORPORATE DOCUMENTS

	1.	 	A copy of the updated articles of incorporation of the Company 1 as at 7 December 2009 (the
“Articles of Incorporation 1”);

	 
	2.	 	A copy of the updated articles of incorporation of the Company 2 as at 7 December 2009 (the
“Articles of Incorporation 2”);

	 
	3.	 	A copy of the signed circular resolutions of the board of managers of the Company 1 dated ***
2011 which, inter alia, approve the entering of the Company 1 into the Contractual Documents
to which it is a party (the “Board Resolutions 1”);

	 
	4.	 	A copy of the signed circular resolutions of the board of managers of the Company 2 dated ***
2011 which, inter alia, approve the entering of the Company 1 into the Contractual Documents
to which it is a party (the “Board Resolutions 2”);

	 
	5.	 	A copy of a non-registration certificate issued by the Luxembourg Trade and Companies
Register with respect to Company 1 dated *** 2011 and reflecting the situation of *** 2011
(the “Non-Registration Certificate 1”);

	 
	6.	 	A copy of a non-registration certificate issued by the Luxembourg Trade and Companies
Register with respect to Company 2 dated *** 2011 and reflecting the situation of *** 2011
(the “Non-Registration Certificate 2”);

	 
	7.	 	An electronic version of an extract of the Luxembourg trade and companies register with
respect to the Company 1 dated *** 2011;

	 
	8.	 	An electronic version of an extract of the Luxembourg trade and companies register with
respect to the Company 1 dated *** 2011.

 

10

 

APPENDIX C — CONTRACTUAL DOCUMENTS

	1.	 	A signed copy of a New York law governed credit agreement dated *** 2011 entered into
between Herbalife International, Inc., Herbalife Ltd. and Herbalife International
Luxembourg S.à r.l., as borrowers, Bank of America, N.A. as Administrative Agent, Swing
Line Lender and L/C Issuer and the other Lenders party thereto (the “Credit Agreement”);

	 
	2.	 	A signed note dated *** 2011 issued by the Company 1 in accordance with the provisions
of the Credit Agreement;

	 
	3.	 	A signed copy of a New York law governed guaranty dated ***, granted by Company 1 in
accordance with the terms of the Credit Agreement (the “Guaranty 1”); and

	 
	4.	 	A signed copy of a New York law governed guaranty dated ***, granted by Company 2 in
accordance with the terms of the Credit Agreement (the “Guaranty 2”).

 

11

 

Exhibit J-4

March 9, 2011

Bank of America, N.A.

as Administrative Agent under the

Credit Agreement referred to below

101 South Tryon Street, 15th Floor

Charlotte, NC 28255-0001

and the Lenders (as defined below) party to the Credit Agreement

Ladies and Gentlemen:

We have acted as special Nevada counsel to Herbalife International, Inc., a Nevada corporation
(the “Company”), and Herbalife International of America, Inc., a Nevada corporation (“HIA” and,
together with the Company, the “Nevada Companies”), in connection with the execution and delivery
of that certain Credit Agreement, dated as of March 9, 2011 (the “Credit Agreement”), entered into
by and among the Company, Herbalife Ltd., a Cayman Islands exempted company incorporated with
limited liability, Herbalife International Luxembourg S.à.r.l., a Luxembourg private limited
liability company, the lenders party thereto (the “Lenders”) and Bank of America, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and L/C
Issuer. This opinion letter is being issued and delivered to you pursuant to Section 4.01(a)(vi) of
the Credit Agreement. Capitalized terms used herein, unless otherwise defined, shall have the
meanings ascribed to them in the Credit Agreement.

For the purpose of rendering this opinion letter, we have examined originals, or copies
certified or otherwise identified to our satisfaction as being true copies, of the following
records, documents, instruments and certificates:

	 	(i)	 	the Credit Agreement;

	 
	 	(ii)	 	the Security Agreement, dated as of the date hereof, made by the
Company, HIA and certain other subsidiaries of the Company, as pledgors, in favor the
Administrative Agent, as pledgee, collateral agent and secured party (in such
capacities, the “Collateral Agent”) for the Lenders (the “Security Agreement”);

	 
	 	(iii)	 	the Company Guaranty, dated as of the date hereof, made by the Company
in favor of the Secured Parties (the “Company Guaranty”);

	 
	 	(iv)	 	the Domestic Subsidiary Guaranty, dated as of the date hereof, made
by HIA and certain other Guarantors in favor of the Secured Parties (the “Domestic
Subsidiary Guaranty”);

	 
	 	(v)	 	the UCC financing statements to be filed in the office of the Nevada
Secretary of State (the “Filing Office”), listing each of the Nevada Companies, as
debtor, and the Collateral Agent, as secured party (the “Financing Statements”);

 

 

 

Bank of America, N.A.,

as Administrative Agent under the Credit Agreement

and the Lenders party to the Credit Agreement

March 9, 2011

Page 2

	 	(vi)	 	the articles of incorporation and bylaws, each as amended to date,
of each of the Nevada Companies (collectively, the “Governing Documents”);

	 
	 	(vii)	 	such corporate records, minutes, consents, resolutions, actions and
proceedings of the Nevada Companies as we have deemed necessary as a basis for the
opinions expressed herein, including, without limitation, the resolutions of the board
of directors of each of the Nevada Companies authorizing and approving, among other
things, the execution and delivery by each of the Nevada Companies of the Loan
Documents (as defined below) to which it is a party, the performance of its obligations
thereunder and the consummation of the transactions contemplated thereby (the
“Transactions”);

	 
	 	(viii)	 	the Certificates of Existence with Status in Good Standing issued by the office
of the Nevada Secretary of State on March 8, 2011, with respect to the existence and
good standing in Nevada of each of the Nevada Companies on such date (the “Good
Standing Certificates”); and

	 
	 	(ix)	 	the certificate, of even date herewith, of an officer of each of the
Nevada Companies with respect to certain factual matters, and any other certificates
delivered by the Nevada Companies or any officers thereof at or in connection with the
closing of the Transactions (collectively, the “Certificates”).

The Credit Agreement, the Security Agreement, the Company Guaranty and the Domestic
Subsidiary Guaranty are hereinafter collectively referred to as the “Loan Documents.”

We have made such legal and factual examinations and inquiries as we have deemed necessary or
appropriate for purposes of this opinion letter. We have been furnished with, and with your consent
have relied upon, certificates, including, without limitation, the Certificates, and such
assurances of the officers or other representatives of the Nevada Companies, and of public
officials, as we have deemed necessary for the purpose of rendering the opinions set forth herein.
As to questions of fact material to our opinions, we have also relied upon the statements of fact
and the representations and warranties as to factual matters contained in the documents we have
examined; however, except as otherwise expressly indicated, we have not been requested to conduct,
nor have we undertaken, any independent investigation to verify the content or veracity thereof or
to determine the accuracy of any statement, and no inference as to our knowledge of any matters
should be drawn from the fact of our representation of the Nevada Companies.

Without limiting the generality of the foregoing, in rendering this opinion letter, we have,
with your permission, assumed without independent verification that (i) the obligations of each
party set forth in the Loan Documents are its valid and binding obligations, enforceable against
such party in accordance with their respective terms; (ii) each natural person executing a document
has sufficient legal capacity to do so; (iii) the statements of fact and all representations and
warranties set forth in the documents we have examined are true and correct as to factual matters;
(iv) all documents that we have examined accurately describe and contain the mutual understanding
of the parties thereto and there are no oral or written agreements or understandings, and there is
no course of prior dealing between any of the parties, that would in any manner vary or supplement
the terms and provisions of such documents, or of the relationships set forth therein, or which
would constitute a waiver of any of the provisions thereof by the actions or conduct of the parties
or otherwise, or which would have an effect on the opinions rendered herein; (v) all
authorizations, approvals, actions, orders, permits and consents from, and notices to or filings
with, any governmental authority in a jurisdiction other than the State of Nevada and from, to or
with any third party that are necessary in connection with the execution and delivery of the Loan
Documents and the performance by each party thereto of its obligations
thereunder, have been obtained, taken, received or made, and are in full force and effect; (vi) all
documents submitted to us as originals are authentic, the signatures on all documents that we have
examined are genuine, and all documents submitted to us as certified, conformed, photostatic,
electronic or facsimile copies conform to the original documents; and (vii) all corporate records
provided to us by the Nevada Companies and all public records we have reviewed are accurate and
complete.

 

 

 

Bank of America, N.A.,

as Administrative Agent under the Credit Agreement

and the Lenders party to the Credit Agreement

March 9, 2011

Page 3

Whenever a statement herein is qualified by the phrase “to our knowledge” or “known to us” or
a similar phrase, we have, with your consent, advised you concerning only the conscious awareness
of facts in the possession of those attorneys who are currently members of or associated with this
firm and who have performed legal services on behalf of the Nevada Companies in connection with the
Transactions, and which knowledge we have recognized as being pertinent to the matters set forth
herein.

As used herein, all references to (i) “NRS” and sections thereof, or to “statutes,” generally,
are to the Nevada Revised Statutes as in effect on the date hereof; (ii) “Applicable Nevada Law”
are to those statutes, rules and regulations of the State of Nevada which, in our experience, are
customarily applicable both to transactions of the type contemplated by the Loan Documents and to
general business entities that are not engaged in regulated business activities; (iii) “Nevada
Governmental Authorities” are to the governmental and regulatory authorities, bodies,
instrumentalities and agencies and the courts of the State of Nevada, excluding its political
subdivisions and local agencies, having jurisdiction over the Nevada Companies; (iv) “Applicable
Nevada Order” are to any order, judgment, writ or decree issued by any Nevada Governmental
Authority under Applicable Nevada Law known to us, without investigation or inquiry, to be
presently in effect and by which any of the Nevada Companies is bound
or to which it is subject;
and (v) “UCC” and to sections thereof are to the Uniform Commercial Code of the State of Nevada as
in effect on the date hereof.

We are qualified to practice law in the State of Nevada. The opinions set forth herein are
expressly limited to the effect on the Transactions only of the internal laws of the State of
Nevada, and we do not purport to be experts on, or to express any opinion with respect to the
applicability thereto or to the effect thereon of, the laws of any other jurisdiction or as to
matters of local law or the laws, rules or regulations of local governmental departments or
agencies within the State of Nevada. We express no opinion herein concerning, and we assume no
responsibility as to laws or judicial decisions related to, or any orders, consents, filings or
other authorizations or approvals as may be required by, any federal laws, rules or regulations,
including, without limitation, any federal securities laws, rules or regulations, or any state
securities or “blue sky” laws, rules or regulations.

Based upon the foregoing, and subject to the qualifications, limitations, exceptions and
assumptions set forth herein, we are of the opinion that:

1. Each of the Nevada Companies is duly incorporated, validly existing and in good
standing under the laws of the State of Nevada.

2. Each of the Nevada Companies has the corporate power and authority to execute, deliver
and perform its obligations under each of the Loan Documents to which it is a party.

3. Each of the Nevada Companies has duly authorized the execution and delivery of the Loan
Documents to which it is a party, the performance of its obligations thereunder and the
consummation of the Transactions. Each of the Nevada Companies has duly executed and delivered each
of the Loan Documents to which it is a party.

 

 

 

Bank of America, N.A.,

as Administrative Agent under the Credit Agreement

and the Lenders party to the Credit Agreement

March 9, 2011

Page 4

4. The execution and delivery by each of the Nevada Companies of the Loan Documents to which
it is a party, the performance by each of the Nevada Companies of its obligations thereunder and
the consummation of the Transactions do not contravene or violate (a) the Governing Documents, (b)
any Applicable Nevada Law or (c) any Applicable Nevada Order.

5. No authorization, approval, order or consent of, or filing or registration with, any Nevada
Governmental Authorities is required under Applicable Nevada Law in connection with the execution
and delivery by any of the Nevada Companies of the Loan Documents to which it is a party, or the
consummation of the Transactions, except for (a) those obtained or made prior to the date hereof
and which are in full force and effect and (b) such filings and recordings as may be required to
perfect liens and security interests purported to be granted by the Loan Documents.

6. The Financing Statements are in proper form for filing in the Filing Office. To the extent
a valid security interest has been created under New York law by the Security Agreement in favor of
the Collateral Agent, for the benefit of the Secured Parties, in the Personal Property Collateral
(as defined below), upon the later of the attachment of the security interest and the proper filing
of the Financing Statements in the Filing Office, the security interest in that portion of the
Security Agreement Collateral (as defined and described in the Security Agreement) that consists of
personal property and is described in the Financing Statements (collectively, the “Personal
Property Collateral”) will be perfected to the extent a security interest in such Personal Property
Collateral may be perfected by filing a financing statement in the Filing Office under the
provisions of the UCC.

The opinions expressed herein are subject to and limited by the following qualifications,
limitations, exceptions and assumptions:

(A) We express no opinion as to:

(i) title to any Personal Property Collateral in which a security interest or lien is
granted, the nature or extent of the rights, title or interest of the Nevada Companies in or to any
of the Personal Property Collateral, or the priority of any security interest or lien created or
purported to be created in or on the Personal Property Collateral by the Security Agreement;

(ii) the creation of any security interest in or lien on any Personal Property
Collateral or the perfection of any security interest in or lien on Personal Property Collateral to
which Article 9 of the UCC does not apply;

(iii) any provision that purports (a) to continue or reinstate any security interest or
lien after all Secured Obligations have been paid in full, or (b) to waive any requirement of Part
6 of Article 9 of the UCC, to the extent the same cannot be waived pursuant to Section 104.9602 of
the UCC;

(iv) the perfection of any security interest in or lien on copyrights, patents,
trademarks, service marks or other intellectual property, or the proceeds thereof, other than under
the UCC;

(v) any security interest in or lien on Personal Property Collateral consisting of
claims against any government or governmental agency (including, without limitation, the United
States of America or any state thereof or any agency or department of the United States of America
or any state thereof); or

 

 

 

Bank of America, N.A.,

as Administrative Agent under the Credit Agreement

and the Lenders party to the Credit Agreement

March 9, 2011

Page 5

(vi) the ability of the Collateral Agent, for the benefit of the Secured Parties, to
recover any deficiency following the disposition of the Personal Property Collateral to the extent
such remedy is limited by Section 104.9626 of the UCC.

(B) We have assumed that:

(i) with respect to the attachment of the security interest of the Collateral Agent,
for the benefit of the Secured Parties, in the Personal Property Collateral, value has been given
and the relevant Nevada Company has sufficient rights to grant a security interest therein or the
power to transfer rights in such Personal Property Collateral to a secured party;

(ii) the description of the Personal Property Collateral in the Security Agreement is
accurate and sufficient for purposes of Section 104.9108 of the UCC, and the Financing Statements
will be properly filed and indexed by the Filing Office;

(iii) all recording and filing fees and other governmental fees and charges
necessary for the filing of the Financing Statements in the Filing Office will be timely
paid; and

(iv) none of the Personal Property Collateral consists or will consist of consumer
goods, equipment used in farming operations, farm products, crops, timber, minerals and the like
(including, without limitation, oil and gas) or accounts or general intangibles resulting from the
sale thereof.

(C) We call your attention to the fact that:

(i) in a transaction of this nature, Section 104.9515 of the UCC requires the filing
of continuation statements within six months prior to the expiration of each five-year period
following the filing of a financing statement in order to continue its effectiveness;

(ii) in the case of proceeds of the Personal Property Collateral, a perfected security
interest therein will become unperfected on the 21st day after the security interest
attaches to the proceeds unless the conditions required to maintain such perfection in accordance
with Section 104.9315(4) of the UCC are satisfied; and

(iii) in the event of a change of the name of any party, an amendment to the
relevant Financing Statement(s) will be required to be filed pursuant to Section 104.9507(3)
or 104.9511(2), as applicable, of the UCC.

(D) The opinions contained herein are subject to the effect of bankruptcy, insolvency,
reorganization, moratorium, anti-deficiency, and other similar laws now or hereafter in effect
relating to or affecting the enforcement of creditors’ rights generally, the federal Bankruptcy
Code, the Uniform Fraudulent Transfer Act, as codified in Chapter 112 of the NRS, and any other
laws, rules and regulations relating to fraudulent conveyances and transfers.

 

 

 

Bank of America, N.A.,

as Administrative Agent under the Credit Agreement

and the Lenders party to the Credit Agreement

March 9, 2011

Page 6

The opinions expressed herein are based upon the Applicable Nevada Law in effect and the facts
in existence as of the date of this opinion letter. In delivering this opinion letter to you, we
assume no obligation, and we advise you that we shall make no effort, to update or supplement the
opinions set forth herein, to conduct any inquiry into the continued accuracy of such opinions, or
to apprise any addressee hereof, or its counsel or assignees, of any facts, matters, transactions,
events or occurrences taking place, and of which we may acquire knowledge, after the date of this
opinion letter,
or of any change in any Applicable Nevada Law or any facts occurring after the date of this
opinion letter, which may affect the opinions set forth herein. No opinions are offered or
implied as to any matter, and no inference may be drawn, beyond the strict scope of the
specific issues expressly addressed by the opinions herein.

This opinion letter is being delivered to and accepted by you with the understanding that such
delivery and acceptance are conditioned upon your agreement that neither you nor your counsel has
knowledge of any incorrect statement or omission relating to the facts and opinions set forth
herein. We understand that you have made such independent investigations of the facts as you have
deemed necessary, and that the determination of the extent to which that investigation is necessary
has been made independent of this opinion letter.

This opinion letter is solely for your benefit, information and use as required by Section
4.01(a)(vi) of the Credit Agreement. This opinion letter may not be relied upon, quoted from,
referred to or used for any other purpose, or otherwise circulated or furnished to, or relied upon,
quoted from or referred to by, any other person for any purpose, without our prior written consent
in each instance.

Very truly yours,

Brownstein Hyatt Farber Schreck, LLP

 

 

 

EXHIBIT K

[To be attached.]

Perfection Certificate

 

K-1

 

EXHIBIT K

[Form of]

PERFECTION CERTIFICATE

This Perfection Certificate, dated as of                     , 2011 (this “Certificate”), is
delivered in accordance with Section 4.02(a) of that certain Credit Agreement, dated as of
                    , 2011 (as amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Herbalife International, Inc., a Nevada corporation (the
“Company”), Herbalife Ltd., a Cayman Islands exempted company with limited liability
(“Holdings”), Herbalife International Luxembourg S.a.R.L., a Luxembourg corporation
(“HIL”, and collectively with the Company, Holdings and certain other Subsidiaries of
Holdings party thereto from time to time, the “Borrowers”) the Lenders, Bank of America,
N.A., as administrative agent for the Lenders (in such capacity, the “Administrative
Agent”); and in accordance with that certain Security Agreement, dated as of                     , 2011
(as amended, restated, supplemented or otherwise modified from time to time, the “Security
Agreement”), among the Company and the other Pledgors in favor of Bank of America, N.A., as
Administrative Agent and in its capacity as pledgee, collateral agent and secured party (the
“Collateral Agent”). Undefined capitalized terms used herein have the meanings assigned to
such terms in the U.S. Security Agreement.

The undersigned hereby certifies to Collateral Agent and the other Secured Parties that he is
the [                    ] of the Company, and that as such he is qualified to deliver this Certificate, and
further certifies as follows:

	I.	 	Names/Locations.

	 	A.	 	Legal Names, Organizations, Jurisdictions of Organization and
Organizational Identification Numbers. The full and exact legal name (as it
appears in each respective certificate or articles of incorporation, limited liability
membership agreement or similar organizational documents, in each case as amended to
date), the type of organization, the jurisdiction of organization (or formation, as
applicable), and the organizational identification number of each Loan Party (other
than any Foreign Obligor) are as follows:

	 	 	 	 	 	 	 	 	 
	 	 	Organization	 	Jurisdiction of	 	Organizational	 	Federal
	Borrower/Guarantor	 	Type	 	Formation	 	ID	 	Employer ID
	 	 	 	 	 	 	 	 	 

	 	B.	 	Changes in Names, Jurisdiction of Organization or Corporate Structure.
Except as set forth below, no Loan Party (other than any Foreign Obligor) has changed
its name, jurisdiction of organization or corporate structure in any way (whether by
merger, consolidation, change in corporate form, change in jurisdiction of organization
or otherwise) within the past six months:

	 	 	 	 	 
	Borrower/Guarantor	 	Date of Change	 	Description of Change
	 	 	 	 	 

 

Exhibit K-1

 

	 	C.	 	Chief Executive Offices and Mailing Addresses. For each Loan Party
(other than any Foreign Obligor), the address of its chief executive office, and its
preferred mailing address (if different from the address of the chief executive
office), is set forth below:

	 	 	 	 	 
	 	 	Address of Chief Executive	 	Mailing Address (if different
	Borrower/Guarantor	 	Office	 	from CEO address)
	 	 	 	 	 

	II.	 	Information regarding Securities Agreement Collateral.

	 	A.	 	Intellectual Property. For each Loan Party (other than any Foreign
Obligor), set forth below is a list of all copyrights, patents, trademarks, and other
intellectual property owned or used, or hereafter adopted, held or used:

	 	 	 	 	 	 	 	 	 
	Borrower/Guarantor	 	Copyright	 	Filing Date	 	Status	 	Reg. No.
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Borrower/Guarantor	 	Patent	 	Filing Date	 	Status	 	Reg. No.
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Borrower/Guarantor	 	Trademark	 	Filing Date	 	Status	 	Reg. No.
	 	 	 	 	 	 	 	 	 

	 	B.	 	Commercial Tort Claims. For each Loan Party (other than any Foreign
Obligor), set forth below is a complete list of all commercial tort claims held by such
Loan Party, including a brief description of each:

	 	 	 	 	 
	Borrower/Guarantor	 	Claim	 	Description
	 	 	 	 	 

IN WITNESS WHEREOF, the undersigned hereto has executed this Perfection Certificate as of the
date first written above.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

Exhibit K-2exv4w1

Exhibit
4.1

 

SIXTH SUPPLEMENTAL INDENTURE

Dated as of May 2, 2011

Supplementing that Certain

INDENTURE

Dated as of June 9, 2009

 

Among

EXPRESS SCRIPTS, INC.,

THE GUARANTORS PARTIES HERETO

and

UNION BANK, N.A.,

as Trustee

 

3.125% SENIOR NOTES DUE 2016

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Issuance of Securities
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.1. Issuance of Notes; Principal Amount; Maturity; Title
	 	 	1	 
	SECTION 1.2. Interest
	 	 	2	 
	SECTION 1.3. Relationship with Indenture
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	Definitions and Other Provisions of General Application
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.1. Definitions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Security Forms
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.1. Form Generally
	 	 	12	 
	SECTION 3.2. Form of Note
	 	 	13	 
	SECTION 3.3. Form of Purchase Notice
	 	 	19	 
	SECTION 3.4. Form of Guarantee
	 	 	19	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Remedies
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.1. Events of Default
	 	 	20	 
	SECTION 4.2. Acceleration of Maturity; Rescission and Annulment
	 	 	22	 
	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Redemption of Securities
	 	 	 	 
	 
	SECTION 5.1. Optional Redemption
	 	 	23	 
	SECTION 5.2. Optional Redemption Procedures
	 	 	23	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Particular Covenants
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.1. Liens
	 	 	25	 
	SECTION 6.2. Sale and Lease-Back Transactions
	 	 	28	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 6.3. Right to Require Repurchase Upon a Change
of Control Triggering Event
	 	 	28	 
	SECTION 6.4. Additional Guarantors
	 	 	30	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	Supplemental Indentures
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.1. Supplemental Indentures without Consent of Holders of Notes
	 	 	30	 
	SECTION 7.2. Supplemental Indentures with Consent of Holders of Notes
	 	 	31	 
	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	Consolidation, Merger, Conveyance, Transfer or Lease
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.1. Company May Consolidate, Etc. on Certain Terms
	 	 	33	 
	SECTION 8.2. Successor Corporation Substituted
	 	 	34	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	Guarantors
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.1. Guarantee
	 	 	34	 
	SECTION 9.2. Waiver
	 	 	35	 
	SECTION 9.3. Guarantee of Payment
	 	 	35	 
	SECTION 9.4. No Discharge or Diminishment of Guarantee
	 	 	35	 
	SECTION 9.5. Defenses of Company Waived
	 	 	36	 
	SECTION 9.6. Continued Effectiveness
	 	 	36	 
	SECTION 9.7. Subrogation
	 	 	36	 
	SECTION 9.8. Information
	 	 	37	 
	SECTION 9.9. Subordination
	 	 	37	 
	SECTION 9.10. Release of Guarantor
	 	 	37	 
	SECTION 9.11. Limitation of Guarantor’s Liability
	 	 	38	 
	SECTION 9.12. Contribution from Other Guarantors
	 	 	39	 
	SECTION 9.13. No Obligation to Take Action Against the Company
	 	 	39	 
	SECTION 9.14. Execution and Delivery of the Guarantee
	 	 	39	 
	SECTION 9.15. Successor Guarantor
	 	 	40	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	Discharge of Obligations Under the Sixth Supplemental Indenture, the Indenture and the Notes; Defeasance
	 
	SECTION 10.1. Termination of the Obligations of the Company
	 	 	40	 
	SECTION 10.2. Repayment to Company
	 	 	41	 
	SECTION 10.3. Amendment to Section 1302; Survival of Provisions of
Sixth Supplemental Indenture upon Defeasance
	 	 	41	 

ii

 

          This Sixth Supplemental Indenture, dated as of May 2, 2011 (the “Sixth Supplemental
Indenture”), among Express Scripts, Inc., a corporation duly organized and existing under the
laws of the State of Delaware, having its principal office at One Express Way, St. Louis, Missouri
(herein called the “Company”), the Guarantors party hereto and Union Bank, N.A., a national
banking association, as Trustee hereunder (herein called the “Trustee”), supplements that
certain Indenture, dated as of June 9, 2009, among the Company, the Guarantors and the Trustee (the
“Indenture”).

RECITALS OF THE COMPANY

          A. The Company has duly authorized the execution and delivery of the Indenture to provide for
the issuance from time to time of its unsecured debentures, notes, or other evidences of
indebtedness to be issued in one or more series as provided for in the Indenture.

          B. Each of the Guarantors has duly authorized the execution and delivery of the Indenture and
the Guarantees, the form of which is attached hereto, in order to fully and unconditionally
guarantee the Company’s obligations under the Indenture.

          C. The Indenture provides that the Securities of each series shall be in substantially the
form set forth in the Indenture, or in such other form as may be established by or pursuant to a
Board Resolution or in one or more supplemental indentures thereto, in each case with such
appropriate insertions, omissions, substitutions, and other variations as are required or permitted
by the Indenture, and may have such letters, numbers, or other marks of identification and such
legends or endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently therewith, be determined by the
officers executing such Securities, as evidenced by their execution thereof.

          D. The Company and the Trustee have agreed that the Company shall issue and deliver, and the
Trustee shall authenticate, Securities denominated “3.125% Senior Notes due 2016” pursuant to the
terms of this Sixth Supplemental Indenture and substantially in the form set forth in Section 3.2
below, in each case with such appropriate insertions, omissions, substitutions, and other
variations as are required or permitted by the Indenture and this Sixth Supplemental Indenture, and
with such letters, numbers, or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of such Notes.

ARTICLE I

Issuance of Securities

          SECTION 1.1. Issuance of Notes; Principal Amount; Maturity; Title.

          (1) On May 2, 2011, the Company shall issue and deliver to the Trustee, and the Trustee shall
authenticate, the Initial Notes substantially in the form set forth in

 

 

Section 3.2 below, in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by the Indenture and this Sixth Supplemental
Indenture, and with such letters, numbers, or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any securities exchange
or Depositary therefor or as may, consistently herewith, be determined by the officers executing
such Notes, as evidenced by their execution of such Notes.

          (2) The Initial Notes to be issued pursuant to this Sixth Supplemental Indenture shall be
issued in the aggregate principal amount of $1,500,000,000 and shall mature on May 15, 2016 unless
the Notes are redeemed prior to that date as described in Section 5.1. The aggregate principal
amount of Initial Notes Outstanding at any time may not exceed $1,500,000,000, except for Notes
issued, authenticated and delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Notes of the Series pursuant to Sections 304, 305, 306, 906 or 1107 of the Indenture
and except for any Notes which, pursuant to Section 303 of the Indenture, are deemed never to have
been authenticated and delivered. The Company may without the consent of the Holders, issue
additional notes hereunder as part of the same series and on the same terms and conditions (and
having the same Guarantors) and with the same CUSIP numbers as the Initial Notes (“Additional
Notes”); provided that if any Additional Notes are issued at a price that causes such Additional
Notes to have “original issue discount” within the meaning of Section 1273 of the United States
Internal Revenue Code of 1986, as amended, and regulations of the United States Department of
Treasury thereunder (the “Code”), such Additional Notes shall not have the same CUSIP
number as the Initial Notes.

          (3) The Notes shall be issued only in fully registered form without coupons in minimum
denominations of $2,000 and any integral multiple of $1,000.

          (4) Pursuant to the terms hereof and Section 301 of the Indenture, the Company hereby creates
a series of Securities designated as the “3.125% Senior Notes due 2016” of the Company (as amended
or supplemented from time to time, that are issued under this Sixth Supplemental Indenture,
including both the Initial Notes and the Additional Notes, if any, the “Notes”), which
Notes shall be deemed “Securities” for all purposes under the Indenture.

          SECTION 1.2. Interest.

          (1) Interest on a Note will accrue at the per annum rate of 3.125% (the “Note Interest
Rate”), from and including the date specified on the face of such Note until the principal
thereof is paid, deemed paid, or made available for payment and, in each case, will be paid on the
basis of a 360-day year comprised of twelve 30-day months.

          (2) The Company shall pay interest on the Notes semi-annually in arrears on May 15 and
November 15 of each year (each, an “Interest Payment Date”), commencing November 15, 2011.

2

 

          (3) Interest shall be paid on each Interest Payment Date to the registered Holders of the
Notes after the close of business on the Regular Record Date.

          (4) Amounts due on the Maturity Date or earlier Redemption Date of the Notes will be payable
at the corporate trust office of the Trustee at 551 Madison Avenue, 11th Floor, New York, NY 10022.
The Company may make payment of interest on an Interest Payment Date in respect of Notes in
certificated form by check mailed to the address of the Person entitled to the payment as it
appears in the Security Register or by transfer to an account maintained by the payee with a bank
located in the United States. The Company shall make payments of principal, premium, if any, and
interest in respect of Notes in book-entry form to DTC in immediately available funds, while
disbursement of such payments to owners of beneficial interests in Notes in book-entry form will be
made in accordance with the procedures of DTC and its participants in effect from time to time.

          (5) Neither the Company nor the Trustee shall impose any service charge for any transfer or
exchange of a Note. However, the Company may ask Holders of the Notes to pay any taxes or other
governmental charges in connection with a transfer or exchange of Notes.

          (6) If any Interest Payment Date, Stated Maturity Date or Redemption Date falls on a day that
is not a Business Day in the City of New York, the Company will make the required payment of
principal, premium, if any, and/or interest on the next succeeding Business Day as if it were made
on the date payment was due, and no interest will accrue on the amount so payable for the period
from and after that Interest Payment Date, the Stated Maturity Date or earlier Redemption Date, as
the case may be, to such next succeeding Business Day.

          SECTION 1.3. Relationship with Indenture.

          The terms and provisions contained in the Indenture will constitute, and are hereby expressly
made, a part of this Sixth Supplemental Indenture. However, to the extent any provision of the
Indenture conflicts with the express provisions of this Sixth Supplemental Indenture, the
provisions of this Sixth Supplemental Indenture will govern and be controlling.

ARTICLE II

Definitions and Other Provisions of General Application

          SECTION 2.1. Definitions.

          The terms defined in this Section 2.1 (except as herein otherwise expressly provided or unless
the context of this Sixth Supplemental Indenture otherwise requires) for all purposes of this Sixth
Supplemental Indenture and of any indenture supplemental hereto have the respective meanings
specified in this Section 2.1. All other terms used in this Sixth Supplemental Indenture that are
defined in the Indenture or the Trust Indenture Act, either directly or by reference therein
(except as herein otherwise expressly provided

3

 

or unless the context of this Sixth Supplemental Indenture otherwise requires), have the
respective meanings assigned to such terms in the Indenture or the Trust Indenture Act, as the case
may be, as in force at the date of this Sixth Supplemental Indenture as originally executed;
provided that any term that is defined in both the Indenture and this Sixth Supplemental Indenture
shall have the meaning assigned to such term in this Sixth Supplemental Indenture.

          “2012 Notes Supplemental Indenture” means the First Supplemental Indenture, dated as
of June 9, 2009, among the Company, the Guarantors and the Trustee related to the 2012 Notes.

          “2012 Notes” means the 5.250% Senior Notes due 2012 as amended or supplemented from
time to time, that are issued under the 2012 Notes Supplemental Indenture.

          “2014 Notes Supplemental Indenture” means the Second Supplemental Indenture, dated as
of June 9, 2009, among the Company, the Guarantors and the Trustee related to the 2014 Notes.

          “2014 Notes” means the 6.250% Senior Notes due 2014 as amended or supplemented from
time to time, that are issued under the 2014 Notes Supplemental Indenture.

          “2019 Notes Supplemental Indenture” means the Third Supplemental Indenture, dated as
of June 9, 2009, among the Company, the Guarantors and the Trustee related to the 2019 Notes.

          “2019 Notes” means the 7.250% Senior Notes due 2019 as amended or supplemented from
time to time, that are issued under the 2019 Notes Supplemental Indenture.

          “Additional Notes” has the meaning specified in Section 1.1(2).

          “Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any specified Person
means 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 the terms
“controlling” and “controlled” have meanings correlative to the foregoing.

          “Applicable Procedures” means, with respect to any transfer or transaction involving a
Global Security or beneficial interest therein, the rules and procedures of DTC, Euroclear and
Clearstream, in each case to the extent applicable to such transaction and as in effect from time
to time.

          “Applied Amounts” means an amount (which may be conclusively determined by the Board
of Directors) equal to the greater of (i) capitalized rent with

4

 

respect to the applicable machinery and/or equipment and (ii) the fair value of the applicable
machinery and/or equipment, that is applied within 180 days of the applicable transaction or
transactions to repayment of the Notes or to the repayment of any Indebtedness which, in accordance
with GAAP, is classified as long-term debt and that is on parity with the Notes.

          “Below Investment Grade Rating Event” means the Notes are not rated, or are rated
below an Investment Grade Rating by each of the Rating Agencies on any date during the period
commencing 60 days prior to the public notice of an arrangement that could result in a Change of
Control until the end of the 60-day period following public notice of the occurrence of the Change
of Control (which 60-day period shall be extended so long as the rating of the Notes is under
publicly announced consideration for possible downgrade by either of the Rating Agencies); provided
that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction
in, or termination of, any rating shall not be deemed to have occurred in respect to a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of a Change of Control Triggering Event) if the Rating Agency or Rating Agencies ceasing to rate
the Notes or making the reduction in rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at its request that the termination
or reduction was the result, in whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of Control (whether or not the
applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating
Event).

          “Beneficial Owner” shall mean any Person who is considered a beneficial owner of a
security for purposes of Rule 13d-3 promulgated of the Exchange Act.

          “Capital Stock” of any Person means any and all shares, interests, participations or
other equivalents (however designated) of capital stock of such Person and all warrants or options
to acquire such capital stock.

          “Change of Control Offer” has the meaning specified in Section 6.3(1).

          “Change of Control Payment” has the meaning specified in Section 6.3(1).

          “Change of Control Payment Date” has the meaning specified in Section 6.3(2)(iii).

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

          “Change of Control” means the occurrence of any of the following: (1) the direct or
indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
properties and assets of the Company and its Subsidiaries taken as a whole to any Person or Group
other than the Company or one of its Subsidiaries; (2) the approval by the holders of the Company’s
Common Stock of any plan or proposal for the liquidation or dissolution of the Company (whether or
not otherwise in compliance with

5

 

the provisions of this Sixth Supplemental Indenture and the Indenture); (3) the consummation
of any transaction (including any merger or consolidation) the result of which is that any Person
or Group becomes the Beneficial Owner directly or indirectly, of more than 50% of the then
outstanding number of shares of the Company’s Voting Stock; (4) the Company consolidates with or
merges with or into any Person, or any Person consolidates with, or mergers with or into, the
Company, pursuant to a transaction in which any of the outstanding Voting Stock of the Company or
such other Person is converted into or exchanged for cash, securities or other property (except
when Voting Stock of the Company is converted into, or exchanged for, at least a majority of the
Voting Stock of the surviving Person immediately after giving effect to the transaction); or (5)
the first day on which a majority of the members of the Company’s Board of Directors are not
Continuing Directors.

          “Clearstream” means Clearstream Banking, S.A.

          “Code” has the meaning specified in Section 1.1(2).

          “Common Stock” shall mean shares of the Company’s Common Stock, $0.01 par value per
share, as they exist on the date of this Sixth Supplemental Indenture or any other shares of
Capital Stock of the Company into which the Common Stock shall be reclassified or changed.

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

          “Comparable Treasury Price” means with respect to any Redemption Date: (i) the average
of three Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest
and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than
four Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations
for the Redemption Date so obtained.

          “Consolidated Net Worth” means, at any date, the sum of all amounts which would be
included under stockholders’ equity on a consolidated balance sheet of the Company and its
Subsidiaries determined in accordance with GAAP on such date or, in the event such date is not a
fiscal quarter end, as of the immediately preceding fiscal quarter end.

          “Continuing Directors” means, as of any date of determination, any member of the
Company’s Board of Directors who (1) was a member of the Board of Directors on the date of the
issuance of the Initial Notes; or (2) was nominated for election or elected to the Board of
Directors with the approval of at least a majority of the Continuing Directors who were members of
the Board of Directors at the time of such

6

 

nomination or election (either by a specific vote or by approval of the Company’s proxy
statement in which such member was named as a nominee for election as a director, without objection
to such nomination).

          “Covenant Defeasance” has the meaning set forth in the Indenture except that the
covenants included in such definition shall include Articles VI, VII, VIII and IX of this Sixth
Supplemental Indenture and Article Fifteen of the Indenture.

          “Default” means any event that is, or after notice or passage of time, or both, would
be, an Event of Default.

          “Domestic Subsidiary” means a Subsidiary organized under the laws of a jurisdiction
located in the United States of America, or any state thereof or the District of Columbia.

          “DTC” means The Depository Trust Company, a New York corporation.

          “Environmental Laws” means any and all current or future legally-binding statutes,
ordinances, orders, rules, regulations, judgments, permits, licenses, authorizations, plans,
directives, consent orders or consent decrees of or from any federal, state or local governmental
authority, agency or court, or any other binding requirements of governmental authorities relating
to (i) the protection of the environment, (ii) any activity, event or occurrence involving
hazardous materials, or (iii) occupational safety and health, industrial hygiene, land use or, as
relating to the environment, the protection of human, plant or animal health or welfare, in any
manner applicable to the Company or any of its Subsidiaries or any of their respective properties
or facilities.

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

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

          “Event of Default” has the meaning specified in Section 4.1.

          “Existing Revolving Credit Facility” means that certain Credit Agreement dated as of
August 13, 2010 among the Company and the lenders and agents from time to time party thereto, as
amended, restated, supplemented, replaced, refinanced or otherwise modified from time to time.

          “Foreign Subsidiary” means any Subsidiary other than a Domestic Subsidiary.

          “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

7

 

may be approved by a significant segment of the accounting profession of the United States, as
in effect on the date of this Sixth Supplemental Indenture.

          “Group” means any group of related Persons for purposes of Section 13(d) of the
Exchange Act.

          “Guarantee” has the meaning specified in Section 9.1.

          “Guarantor” means (1) certain of the Company’s Wholly-Owned Subsidiaries, named on the
signature pages hereto and (2) in the future, certain Subsidiaries that become Guarantors pursuant
to Section 6.4, but in each case excluding Persons who cease to be obligated under the Guarantee in
accordance with the Sixth Supplemental Indenture.

          “Hazardous Materials” means (i) any chemical, material or substance defined as or
included in any environmental law in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials,” “extremely hazardous waste,” “acutely hazardous waste,” “radioactive waste,”
“biohazardous waste,” “pollutant,” “toxic pollutant,” “contaminant,” “restricted hazardous waste,”
“infectious waste,” “toxic substances,” or any other term or expression intended to define, list or
classify substances by reason of properties harmful to health, safety or the indoor or outdoor
environment (including harmful properties such as ignitability, corrosivity, reactivity,
carcinogenicity, toxicity, reproductive toxicity, “TCLP toxicity” or “EP toxicity” or words of
similar import under any applicable Environmental Laws); (ii) any oil, petroleum, petroleum
fraction or petroleum derived substance; (iii) any drilling fluids, produced waters and other
wastes associated with the exploration, development or production of crude oil, natural gas or
geothermal resources; (iv) any flammable substances or explosives; (v) any radioactive materials;
(vi) any friable asbestos-containing materials; (vii) urea formaldehyde foam insulation; (viii)
electrical equipment which contains any oil or dielectric fluid containing polychlorinated
biphenyls; (ix) pesticide; and (x) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any governmental authority pursuant to Environmental Laws.

          “Indebtedness” means, with respect to any Person, at a particular time, all items of
such Person which constitute, without duplication, (a) indebtedness for borrowed money (including
capital leases) or the deferred purchase price of Property (other than accounts payable, deferred
compensation, customer advances, earn-outs, agreements providing for the holdback of up to 10% of
the purchase price relating to an acquisition and accrued expenses incurred in the ordinary course
of business), (b) indebtedness evidenced by notes, bonds, debentures or similar instruments, (c)
obligations with respect to any conditional sale or other title retention agreement (excluding
operating leases), (d) indebtedness arising under acceptance facilities and the amount available to
be drawn under all letters of credit issued for the account of such Person and, without
duplication, all drafts drawn thereunder to the extent such Person shall not have reimbursed the
issuer in respect of the issuer’s payment of such drafts, (e) all liabilities secured by any Lien
(other than carriers’, warehousemen’s, mechanics’, repairmen’s or other like non-consensual Liens
arising in the ordinary course of business) on any Property owned by

8

 

such Person even though such Person shall not have assumed or otherwise become liable for the
payment thereof; provided that in the event such Person shall not have assumed or otherwise become
liable for the payment thereof, the amount of such liabilities shall be deemed to be the lesser of
(i) the fair market value of the assets of such Person subject to such Lien and (ii) the amount of
the liability secured by such Lien, (f) that portion of any obligation of such Person, as lessee,
which in accordance with GAAP is required to be capitalized on the balance sheet of such Person,
(g) Securitized Indebtedness, and (h) all guarantees by such Person of any of the foregoing;
provided, however, that, notwithstanding anything to the contrary contained herein, for purposes of
this definition, “Indebtedness” shall not include any intercompany indebtedness between or among
the Company and any of its Subsidiaries.

          “Independent Investment Banker” means one of the Reference Treasury Dealers appointed
by the Trustee after consultation with the Company.

          “Initial Notes” means Notes in an aggregate principal amount of up to $1,500,000,000
initially issued under this Sixth Supplemental Indenture in accordance with Section 1.1(2).

          “Interest Payment Date” has the meaning specified in Section 1.2(2).

          “Investment Grade Rating” means a rating of Baa3 (or better) by Moody’s (or its
equivalent under any successor rating category of Moody’s) and a rating of BBB- (or better) by S&P
(or its equivalent under any successor rating category of S&P), respectively, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company under the circumstances permitting the Company to select a replacement agency and in
the manner for selecting a replacement agency, in each case as set forth in the definition of
“Rating Agency.”

          “Liens” means any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any conditional sale or other title retention agreement, any
lease in the nature thereof, and any agreement to give any security interest) and any option, trust
or other preferential arrangement having the practical effect of any of the foregoing.

          “Margin Stock” means any “margin stock”, as said term is defined in Regulation U of
the Board of Governors of the Federal Reserve System of the United States of America (or any
successor), as the same may be amended or supplemented from time to time.

          “Maturity Date” means May 15, 2016.

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

          “Note Interest Rate” has the meaning specified in Section 1.2(1).

          “Notes” has the meaning specified in Section 1.1(4).

9

 

          “Notice of Default” means a written notice of the kind specified in Section 4.1(4).

          “Obligations” has the meaning specified in Section 9.1.

          “Permitted Sale Lease-Back Transactions” means sales or transfers by the Company or
any Subsidiary of any real property, improvements, fixtures, machinery and/or equipment with the
intention of taking back a lease thereof; provided, however, that “Permitted Sale-Leaseback
Transactions” shall not include such transactions involving machinery and/or equipment (excluding
any lease for a temporary period of not more than thirty-six months with the intent that the use of
the subject machinery and/or equipment will be discontinued at or before the expiration of such
period) relating to facilities (a) in full operation for more than 180 days as of the date hereof
and (b) that are material to the business of the Company and its Subsidiaries taken as a whole, to
the extent that the sum of the aggregate sale price of such machinery and/or equipment from time to
time involved in such transactions (giving effect to payment in full under any such transaction and
excluding the Applied Amounts plus the amount of obligations and Indebtedness from time to time
secured by Liens permitted under Section 6.1(21) herein, exceeds 15% of the Company’s Consolidated
Net Worth.

          “Person” includes any individual, corporation, partnership, limited partnership,
general partnership, limited liability company, limited liability partnership, business trust,
association, joint stock company, joint venture, trust, trust company, bank, association, land
trusts, business trusts or other organizations, whether or not legal entities, incorporated or
unincorporated organization or government or any agency or political subdivision thereof.

          “Property” means, with respect to any Person, all types of real, personal or mixed
property and all types of tangible or intangible property owned or leased by such Person.

          “Purchase Notice” means a notice delivered by a Holder in accordance with Section 6.3
in the form set forth in Section 3.3.

          “Rating Agency” or “Rating Agencies” means each of Moody’s and S&P; provided
that if any of Moody’s or S&P ceases to provide rating services to issuers or investors, the
Company may appoint another “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act as a replacement for such Rating Agency
that is reasonably acceptable to the Trustee.

          “Redemption Date,” when used with respect to any Note to be redeemed, means the date
fixed for such redemption by or pursuant to this Sixth Supplemental Indenture.

          “Redemption Price,” when used with respect to any Note to be redeemed, means the price
at which it is to be redeemed pursuant to this Sixth Supplemental Indenture.

10

 

          “Reference Treasury Dealer” means each of Credit Suisse Securities (USA) LLC Citigroup
Global Markets Inc. and RBS Securities Inc (in each case, or their Affiliates and their respective
successors); provided that if any of the aforementioned Reference Treasury Dealers resigns, then
the respective successor will be a primary United States government securities dealer in The City
of New York selected by the Company.

          “Reference Treasury Dealer Quotations” means with respect to each Reference Treasury
Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue, expressed in each case as a percentage of its principal
amount, quoted in writing to the Trustee by such Reference Treasury Dealer at approximately 3:30
p.m. New York City time, on the third Business Day preceding such Redemption Date.

          “Registrar” means the Security Registrar for the Notes, which shall initially be Union
Bank, N.A., or any successor entity thereof, subject to replacement as set forth in the Indenture.

          “Regular Record Date” for interest payable in respect of any Note on any Interest
Payment Date means the day that is 15 days prior to the relevant Interest Payment Date (whether or
not a Business Day).

          “Restricted Subsidiary” means any Subsidiary of the Company that is not an
Unrestricted Subsidiary.

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

          “Securitized Indebtedness” means, with respect to any Person as of any date, the
reasonably expected liability of such Person for the repayment of, or otherwise relating to, all
accounts receivable, general intangibles, chattel paper or other financial assets and related
rights and assets sold or otherwise transferred by such Person, or any Subsidiary or Affiliate
thereof, on or prior to such date.

          “Significant Subsidiary” means a Restricted Subsidiary that qualifies as a
“significant subsidiary” under Rule 405 of the Securities Act.

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

          “Treasury Rate” means, with respect to any Redemption Date, the rate per year equal to
the semi-annual equivalent yield to maturity or interpolated (on a day count basis) of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption
Date.

11

 

          “Unrestricted Subsidiary” means any Subsidiary of the Company that from time to time
is not a Guarantor or required to be a Guarantor.

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

          “Wholly-Owned Subsidiary” when used with respect to any Person means (i) any
corporation, association or other business entity of which 100% of the shares of Capital Stock or
other equity interests is at the time owned or controlled, directly or indirectly, by such Person
or one or more of the other Subsidiaries of such Person (or combination thereof) and (ii) any
partnership, limited liability company or similar pass-through entity the sole partners, members or
persons, however designated in corresponding roles, of which are such Person or one or more
Subsidiaries of such Person (or any combination thereof).

ARTICLE III

Security Forms

          SECTION 3.1. Form Generally.

          (1) The Notes shall be in substantially the form set forth in Section 3.2 of this Article
III, with such appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Sixth Supplemental Indenture and the Indenture, and may have such
letters, numbers or other marks of identification and such legends or endorsements placed thereon
as may be required to comply with the rules or regulations of any securities exchange or automated
quotation system on which the Notes may be listed or designated for issuance, the Code, or any
applicable securities laws, or as may, consistent herewith, be determined by the officers executing
such Notes (execution thereof to be conclusive evidence of such approval). All Notes shall be in
fully registered form.

          (2) Purchase Notices shall be in substantially the form set forth in Section 3.3.

          (3) Guarantees shall be in substantially the form set forth in Section 3.4.

          (4) The Notes shall be printed, lithographed, typewritten or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by the rules of any
automated quotation system or securities exchange (including on steel engraved borders if so
required by any securities exchange upon which the Notes may be listed) on which the Notes may be
quoted or listed, as the case may be, all as determined by the officers executing such Notes, as
evidenced by their execution thereof.

          (5) Upon their original issuance, the Notes shall be issued in the form of one or more Global
Securities in definitive, fully registered form without interest

12

 

coupons. Each such Global Security shall be duly executed by the Company, authenticated and
delivered by the Trustee and shall be registered in the name of DTC, as Depositary, or its nominee,
and deposited with the Trustee, as custodian for DTC. Beneficial interests in the Global
Securities will be shown on, and transfers will only be made through, the records maintained by DTC
and its participants, including Clearstream and the Euroclear System.

          SECTION 3.2. Form of Note.

[FORM OF FACE OF NOTE]

          [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY:

          THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.].

          [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY FOR WHICH DTC IS TO BE
THE DEPOSITARY:

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

EXPRESS SCRIPTS, INC.

3.125% SENIOR NOTE DUE 2016

	 	 	 

	No.                     

	 	Principal Amount (US)$                    
	CUSIP NO.                     
	 	 

13

 

          Express Scripts, Inc., a corporation duly organized and existing under the laws of the State
of Delaware (herein called the “Company”, which term includes any successor Person under
the Sixth Supplemental Indenture referred to on the reverse hereof), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of                      United States Dollars (U.S.$                     ) on May 15, 2016 and to pay interest
thereon, from May 2, 2011, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for to but excluding the next Interest Payment Date, which shall be May 15
and November15 of each year, commencing November 15, 2011, at the per annum rate of 3.125%, or as
such rate may be adjusted pursuant to the terms hereof, per annum (the “Note Interest
Rate”), until the principal hereof is paid or made available for payment.

          The interest so payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Sixth Supplemental Indenture, be paid to the Person in whose name
this Note is registered at the close of business on the Regular Record Date for such interest,
which shall be the day that is 15 days prior to the relevant Interest Payment Date (whether or not
a Business Day). Except as otherwise provided in the Sixth Supplemental Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice of which shall be given to Holders of Notes not less
than 10 days prior to the Special Record Date, or be paid at any time in any other lawful manner
not inconsistent with the requirements of any automated quotation system or securities exchange on
which the Notes may be quoted or listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Sixth Supplemental Indenture. Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

          Payment of principal of (and premium, if any) and interest on this Note will be made at the
corporate trust office of the Trustee at 551 Madison Avenue, 11th Floor, New York, NY 10022, in
such coin or currency of the United States of America as at the time of payment shall be legal
tender for the payment of public and private debts. With respect to Global Securities, the Company
will make such payments by wire transfer of immediately available funds to DTC, or its nominee, as
registered owner of the Global Securities. With respect to certificated Notes, the Company will
make such payments by wire transfer of immediately available funds to a United States Dollar
account maintained in St Louis, Missouri or New York, New York to each Holder of an aggregate
principal amount of Notes in excess of U.S. $5,000,000 that has furnished wire instructions in
writing to the Trustee no later than 15 days prior to the relevant payment date. If a Holder of a
certificated Note (i) does not furnish such wire instructions as provided in the preceding sentence
or (ii) holds $5,000,000 or less aggregate principal amount of Notes, the Company will make such
payments by mailing a check to such Holder’s registered address.

14

 

          Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

	 	 	 	 	 	 	 

	 	 	EXPRESS SCRIPTS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

Attest:

	 	 	 	 	 

	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:
	 	 	 	 

CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated referred to in the within-mentioned
Indenture.

Dated:

UNION BANK, N.A.,

as Trustee

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

[FORM OF REVERSE OF NOTE]

          1. Indenture. This Note is one of a duly authorized issue of securities of the Company
designated as its “3.125% Senior Notes due 2016” (herein called the “Notes”), issued under
a Sixth Supplemental Indenture, dated as of May 2, 2011, to an indenture, dated as of June 9, 2009
(as it may be amended or supplemented from time to time in accordance with the terms thereof, the
“Indenture” and herein with the Sixth Supplemental Indenture, collectively, the
“Indenture”), between the Company, the

15

 

Guarantors and Union Bank, N.A., as Trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), to which reference is hereby made for a
statement of the respective rights, limitations of rights, duties and immunities thereunder of the
Company, the Guarantors, the Trustee and the Holders of the Notes and of the terms upon which the
Notes are, and are to be, authenticated and delivered. The aggregate principal amount of Initial
Notes Outstanding at any time may not exceed $1,500,000,000 in aggregate principal amount, except
for, or in lieu of, other Notes of the Series pursuant to Sections 304, 305, 306, 906 or 1107 of
the Indenture and except for any Notes which, pursuant to Section 303 of the Indenture, are deemed
never to have been authenticated and delivered. The Sixth Supplemental Indenture pursuant to which
this Note is issued provides that Additional Notes may be issued thereunder, if certain conditions
are met.

          All terms used in this Note which are defined in the Indenture shall have the meanings
assigned to them in the Indenture. In the event of a conflict or inconsistency between this Note
and the Indenture, the provisions of the Indenture shall govern.

          2. Optional Redemption. At any time prior to Maturity, the Company may at its option redeem
all or a part of the Notes upon not more than 60 nor less than 30 days prior notice, at a
redemption price equal to the greater of: (i) 100% of the aggregate principal amount of any Notes
being redeemed, plus accrued and unpaid interest on the Notes to the Redemption Date; or (ii) the
sum of the present values of the remaining scheduled payments of principal of and interest on the
Notes to be redeemed (exclusive of unpaid interest accrued thereon to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year comprised of
twelve 30-day months) at the Treasury Rate plus 20 basis points, plus, unpaid interest on the Notes
to be redeemed, accrued to the Redemption Date.

          3. Mandatory Redemption. Except as provided in Section 4 below, the Company is not required
to make mandatory redemption or sinking fund payments with respect to the Notes.

          4. Change of Control Triggering Event. In the event of a Change of Control Triggering Event,
the Holders may require the Company to purchase for cash all or a portion of their Notes at a
purchase price equal to 101% of the aggregate principal amount of the Notes, plus accrued and
unpaid interest, if any, pursuant to the provisions of Section 6.3 of the Sixth Supplemental
Indenture.

          5. Global Security. If this Note is a Global Security, then, in the event of a deposit or
withdrawal of an interest in this Note, including an exchange, transfer, redemption, repurchase or
conversion of this Note in part only, the Trustee, as custodian of the Depositary, shall make an
adjustment on its records to reflect such deposit or withdrawal in accordance with the Applicable
Procedures.

          6. Defaults and Remedies. If an Event of Default shall occur and be continuing, the
principal of all the Notes, together with any unpaid premium and accrued

16

 

interest to the date of declaration, may be declared due and payable in the manner and with
the effect provided in the Sixth Supplemental Indenture. Upon payment (i) of the amount of
principal so declared due and payable, together with any unpaid premium and accrued interest to the
date of declaration, and (ii) of interest on any overdue principal and, to the extent permitted by
applicable law, overdue interest, all of the Company’s obligations in respect of the payment of the
principal of and interest on the Notes shall terminate.

          As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default, and, among other
things, the Holders of not less than 25% in aggregate principal amount of the Outstanding Notes
shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee. The foregoing shall not apply to any suit instituted by the Holder of this
Note for the enforcement of any payment of principal or premium hereof or interest hereon, on or
after the respective due dates expressed herein.

          7. Amendment, Supplement and Waiver. The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Notes under the Indenture at any time by the Company
and the Trustee with the written consent of the Holders of at least a majority in aggregate
principal amount of the Outstanding Notes. The Indenture also contains provisions permitting the
Holders of specified percentages in principal amount of the Outstanding Notes, on behalf of the
Holders of all the Notes, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon
this Note or such other Note. Certain modifications or amendments to the Indenture require the
consent of the Holder of each Outstanding Note affected.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair (without the consent of the Holder hereof) the obligation of the Company, which is
absolute and unconditional, to pay the principal of, premium, if any and interest on this Note at
the times, places and rate, and in the coin or currency, herein prescribed.

          8. Registration and Transfer. As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable on the Security Register
upon surrender of this Note for registration of transfer at such office or agency of the Company as
may be designated by it for such purpose in St. Louis, Missouri, or at such other offices or
agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder thereof
or his attorney duly authorized in

17

 

writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees by the
Registrar. As provided in the Indenture and subject to certain limitations therein set forth,
Notes are exchangeable for a like aggregate principal amount of Notes of any authorized
denominations as requested by the Holder surrendering the same upon surrender of the Note or Notes
to be exchanged, at such office or agency of the Company. The Trustee upon such surrender by the
Holder will issue the new Notes in the requested denominations. No service charge shall be made
for any such registration of transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection therewith.

          Prior to due presentment of this Note for registration of transfer, the Company, the Trustee,
any Paying Agent and any agent of the Company, the Trustee or any Paying Agent may treat the Person
in whose name such Note is registered as the owner thereof for all purposes, whether or not such
Note be overdue, and neither the Company, the Trustee nor any Paying Agent or other such agent
shall be affected by notice to the contrary.

          9. Guarantee. Payment of this Note is jointly and severally and fully and unconditionally
guaranteed by the Guarantors that have become and continue to be Guarantors pursuant to the
Indenture. Guarantors may be released from their obligations under the Indenture and their
Guarantees under the circumstances specified under the Indenture.

          10. Governing Law. THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

ABBREVIATIONS

          The following abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:

TEN COM (= tenant in common)

TEN ENT (= tenants by the entireties (Cust))

JT TEN (= joint tenants with right of survivorship and not as tenants in common)

UNIF GIFT MIN ACT (= under Uniform Gifts to Minors Act )

          Additional abbreviations may also be used though not in the above list.

18

 

          SECTION 3.3. Form of Purchase Notice.

PURCHASE NOTICE

          (1) Pursuant to Section 6.3 of the Sixth Supplemental Indenture, the undersigned hereby
elects to have this Note repurchased by the Company.

          (2) The undersigned hereby directs the Trustee or the Company to pay it or                      an amount in cash equal to 101% of the aggregate principal amount to be repurchased (as set
forth below), plus interest accrued to, but excluding, the Change of Control Payment Date, as
applicable, as provided in the Sixth Supplemental Indenture.

Dated:

	 	 	 

	 

	 	 
	 
	 	 
	 

	 	 

Signature(s)

Signature(s) must be guaranteed by an

Eligible Guarantor Institution with

membership in an approved signature

guarantee program pursuant to

Rule 17Ad-15 under the Securities

Exchange Act of 1934.

	 	 	 

	 

Signature Guaranteed

	 	 

Principal amount to be repurchased (at least

U.S.$2,000 or an integral multiple of $1,000

in excess thereof):                     

Remaining aggregate principal amount

following such repurchase (not less than

U.S.$2,000):

                    

NOTICE: The signature to the foregoing election must correspond to the name as written upon the
face of this Note in every particular, without alteration or any change whatsoever.

          SECTION 3.4 Form of Guarantee.

          The form of Guarantee shall be set forth on the Notes substantially as follows:

19

 

          For value received, each of the Guarantors (which term includes any successor Person under the
Sixth Supplemental Indenture) has jointly and severally and fully and unconditionally guaranteed,
to the extent set forth in the Sixth Supplemental Indenture to the Indenture, among the Company,
the Guarantors and the Trustee and subject to the provisions in the Sixth Supplemental Indenture,
(a) the due and punctual payment in full when due of the principal of, premium, if any, and
interest on the Notes and all other amounts due and payable under the Indenture, Sixth Supplemental
Indenture and the Notes by the Company and (b) in case of any extension of time of payment or
renewal of any Obligations (with or without notice to the Guarantor), that the same will be
promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at Stated Maturity, by acceleration or otherwise. The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Guarantee and the Sixth
Supplemental Indenture are expressly set forth in Article IX of the Sixth Supplemental Indenture
and reference is hereby made to the Sixth Supplemental Indenture for the precise terms of the
Guarantee, including provisions for the release thereof. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions and (b) appoints the Trustee
attorney-in-fact of such Holder for the purpose of such provisions.

	 	 	 	 	 	 	 

	 	 	[NAME OF GUARANTOR(S)]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:
	 	
 

	]	 

ARTICLE IV

Remedies

          SECTION 4.1. Events of Default.

          Section 501 of the Indenture shall not be applicable to the Notes.

          “Event of Default,” wherever used herein with respect to the Notes, means any one of
the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (1) default in the payment of any interest upon any Note when it becomes due and
payable, and continuance of such default for a period of 30 calendar days;

     (2) default in the payment of the principal of, or premium, if any, on, any Note at
its Maturity or when otherwise due;

     (3) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any

20

 

Indebtedness (or the payment of which is guaranteed by any Restricted Subsidiary), if
that default is caused by a failure to pay principal at its Stated Maturity after giving
effect to any applicable grace period, or results in the acceleration of such Indebtedness
prior to its stated maturity and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other Indebtedness under which
there has been a payment default after stated maturity or the maturity of which has been so
accelerated, aggregates $100,000,000 or more;

     (4) default in the performance, or breach, of any covenant, agreement or warranty of
the Company in this Sixth Supplemental Indenture or the Indenture as supplemented or
amended and continuance of such default for a period of 60 days after there has been given,
by registered or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes a
written notice specifying such default and requiring it to be remedied and stating that
such notice is a “Notice of Default” hereunder;

     (5) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company or any of its Guarantors of an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or (B) a decree or order adjudging the Company or any of its Guarantors a
bankrupt or insolvent, or approving as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any of the
Guarantors under any applicable Federal or State law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any
of the Guarantors or of any substantial part of the property of either, or ordering the
winding up or liquidation of its affairs;

     (6) the commencement by the Company or any of the Guarantors of a voluntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by either to the entry of a decree or order for relief in respect
of the Company or any of the Guarantors in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
to the commencement of any bankruptcy or insolvency case or proceeding against either, or
the filing by either of a petition or answer or consent seeking reorganization or similar
relief under any applicable Federal or State law, or the consent by either to the filing of
such petition or to the appointment of or taking possession by a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the Company or any
of the Guarantors or of any substantial part of the property of either, or the making by
either of a general assignment for the benefit of creditors, or the admission by either in
writing of its inability to pay its debts generally as they become due, or the taking of
corporate action by the Company or any of the Guarantors in furtherance of any such action;
or

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     (7) a Guarantee ceases to be in full force and effect or is declared to be null and
void and unenforceable or the Guarantee is found to be invalid or a Guarantor denies its
liability under its Guarantee (other than by reason of release of the Guarantor in
accordance with the terms hereof).

          SECTION 4.2. Acceleration of Maturity; Rescission and Annulment.

          Section 502 of the Indenture shall not be applicable to the Notes.

          (1) If an Event of Default occurs and continues (other than an Event of Default specified in
Sections 4.1(5) or 4.1(6)), then in each such case the Trustee or the Holders of at least 25% in
principal amount of the Outstanding Notes may require the Company to repay immediately the
principal of, and any unpaid premium if any, and interest on, all the Notes. The holders of at
least a majority in principal amount of the Outstanding Notes may rescind and annul that
acceleration if all Events of Default with respect to the Notes, other than the nonpayment of
accelerated principal, have been cured or waived as provided in the Indenture. An Event of Default
arising pursuant to Sections 4.1(5) or 4.1(6) shall cause the principal of, and any unpaid premium
and interest on, all Notes to become immediately due and payable without any declaration or other
act by the Trustee, the Holders of the Notes or any other party.

          (2) Other than its duties in the case of a default, the Trustee is not obligated to exercise
any of its rights or powers under this Sixth Supplemental Indenture or the Indenture at the request
or direction of any Holder of the Notes, unless the Holders offer reasonable indemnity to the
Trustee. If the Holders offer reasonable indemnity to the Trustee, then the Holders of at least a
majority in principal amount of the Outstanding Notes will have the right, subject to some
limitations, to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the Trustee with respect to
the Notes.

          No Holder of any Note shall have any right to institute any proceeding with respect to this
Sixth Supplemental Indenture or the Indenture or for any remedy under this Sixth Supplemental
Indenture or the Indenture unless:

     (i) the Holder has previously given to the Trustee written notice of a continuing
Event of Default with respect to the Notes;

     (ii) the Holders of at least 25% in principal amount of the Outstanding Notes have
made a written request, and offered to the Trustee indemnity satisfactory to the Trustee to
institute a proceeding as Trustee;

     (iii) the Trustee has failed to institute the requested proceeding within 60 calendar
days after receipt of such notice; and

     (iv) the Trustee has not received from the Holders of at least a majority in
principal amount of the Outstanding Notes a direction inconsistent with the request during
that 60-day period.

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          (3) The Holder of any Note will have the absolute and unconditional right to receive payment
of the principal of, and premium, if any, and interest on, that Note as expressed therein, and to
institute suit for the enforcement of any such payment.

          (4) The Company is required to furnish to the Trustee annually within 120 days after the end
of its fiscal year a statement as to the absence of any Event of Default under this Sixth
Supplemental Indenture. Within 30 days after the occurrence of an Event of Default, the Trustee
shall give notice of such Event of Default or of any event which, after notice or lapse of time or
both, would become an Event of Default, known to it, to the Holders of the Notes, except that, in
the case of a default other than a payment default, the Trustee may withhold notice if the Trustee
determines that withholding notice is in the interest of the Holders.

ARTICLE V

Redemption of Securities

          SECTION 5.1. Optional Redemption.

          (1) The Company may, at its option, redeem the Notes, in whole or from time to time in part,
prior to the Maturity Date at a Redemption Price equal to the greater of: (i) 100% of the
aggregate principal amount of Notes to be redeemed, plus accrued and unpaid interest on the Notes
to the Redemption Date; or (ii) the sum of the present values of the remaining scheduled payments
of principal of and interest on the Notes to be redeemed (exclusive of unpaid interest accrued
thereon to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming
a 360-day year comprised of twelve 30-day months) at the Treasury Rate plus 50 basis points, plus,
unpaid interest on the Notes to be redeemed, accrued to the Redemption Date.

          (2) In the case of any optional redemption of the Notes, interest installments whose Stated
Maturity is on or prior to the Redemption Date will be payable to the Holders of such Notes at the
close of business on the relevant Regular Record Date. Notes (or portions thereof) for whose
redemption provision is made in accordance with this Sixth Supplemental Indenture shall cease to
bear interest from and after the Redemption Date.

          SECTION 5.2. Optional Redemption Procedures.

          (1) The election of the Company to redeem any Notes shall be evidenced by a Board Resolution.
In case of any redemption at the election of the Company of less than all the Notes, the Company
shall, at least 45 days prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be acceptable to the Trustee), notify the Trustee of such Redemption Date and the aggregate
principal amount of the Notes to be redeemed.

          (2) If less than all the Notes are to be redeemed pursuant to Section 5.1, the particular
Notes to be redeemed shall be selected, not more than 90 days prior to the Redemption Date, by the
Trustee from among the Outstanding Notes not previously

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called for redemption, by such method as the Trustee shall deem fair and appropriate and which
may provide for the selection for redemption of portions (equal to the minimum authorized
denomination for the Notes or any integral multiple thereof) of the principal amount of the Notes
of a denomination larger than the minimum authorized denomination for the Notes.

          The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Notes selected for partial redemption, the aggregate principal amount
thereof to be redeemed.

          For all purposes of this Sixth Supplemental Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed
or to be redeemed only in part, to the portion of the principal amount of such Notes which has been
or is to be redeemed.

          (3) Notice of redemption pursuant to this Section 5.2 shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each Holder of Notes to be redeemed at such Holder’s address as shown in the Security Register for
the affected Notes. Failure to give notice by mailing in the manner herein provided to the Holder
of any Notes designated for redemption as a whole or in part, or any defect in the notice to any
such Holder, shall not affect the validity of the proceedings for the redemption of any other Notes
or portion thereof.

          All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the aggregate principal amount of the Notes to be redeemed;

     (iv) if less than all of the Outstanding Notes are to be redeemed, the identification
(and, in the case of partial redemption, the portions of the principal amounts) of the
particular Notes to be redeemed;

     (v) that on the Redemption Date the Redemption Price will become due and payable upon
each such Note to be redeemed and that interest thereon will cease to accrue on and after
said date;

     (vi) the place or places where such Notes are to be surrendered for payment of the
Redemption Price;

     (vii) the CUSIP numbers of such Notes, if any (or any other numbers used by the
Depositary to identify such Notes); and

     (viii) if notice of redemption of Notes to be redeemed has been given by the Company
and funds sufficient to pay the Redemption Price (including any

24

 

accrued and unpaid interest) of all Notes to be redeemed on the Redemption Date are
irrevocably available for the redemption of the Notes called for redemption on the
Redemption Date, that the Notes called for redemption shall cease to bear interest on and
after such Redemption Date and that the only remaining right of the Holders will be to
receive payment of the Redemption Price.

          Notice of redemption of Notes to be redeemed shall be given by the Company or, on Company
Request, by the Trustee at the expense of the Company.

          (4) On or before 11:00 a.m., New York time, on any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003 of the Indenture) an amount of money
sufficient to pay the Redemption Price of all the Notes which are to be redeemed on that date.

          (5) Notice of redemption having been given as aforesaid, the Notes so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price) such
Notes shall cease to bear interest. Upon surrender of any such Note for redemption in accordance
with said notice, such Note shall be paid by the Company at the Redemption Price; provided,
however, that installments of interest whose Stated Maturity is on or prior to the Redemption Date
shall be payable to the Holders of such Notes registered as such at the close of business on the
relevant Regular Record Dates according to their terms.

          If any Note called for redemption shall not be so paid upon surrender thereof for redemption,
the principal thereof shall, until paid, bear interest from the Redemption Date at the rate borne
by the Note.

          (6) Any Note which is to be redeemed only in part shall be surrendered at an office or agency
in accordance with the notice of redemption (with, if the Company or the Trustee shall so require,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or other appropriate person), and the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder of such Note, without service
charge, a new Note or Notes of any authorized denominations as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Note so surrendered.

ARTICLE VI

Particular Covenants

          SECTION 6.1. Liens.

          The Company will not, and will not permit any of its Restricted Subsidiaries to, create or
assume, except in the Company’s favor or in favor of one or more of its Wholly-Owned Subsidiaries,
any Lien against or on any Property now owned

25

 

or hereafter acquired by the Company or any Restricted Subsidiary, or permit any Restricted
Subsidiary to do so, unless the Outstanding Notes are secured equally and ratably with (or prior
to) the obligations so secured by such Lien, except that the foregoing restrictions do not apply to
the following types of Liens:

     (1) Liens in connection with workers’ compensation, unemployment insurance or other
social security obligations (which phrase shall not be construed to refer to ERISA or the
minimum funding obligations under Section 412 of the Code);

     (2) Liens to secure the performance of bids, tenders, letters of credit, contracts
(other than contracts for the payment of Indebtedness), leases, statutory obligations,
surety, customs, appeal, performance and payment bonds and other obligations of like
nature, in each such case arising in the ordinary course of business;

     (3) mechanics’, workmen’s, carriers’, warehousemen’s, materialmen’s, landlords’, or
other like Liens arising in the ordinary course of business with respect to obligations
which are not due or that are being contested in good faith and by appropriate action;

     (4) Liens for taxes, assessments, fees or governmental charges or levies that are not
delinquent or which are payable without penalty, or which are being contested in good faith
and by appropriate action, and in respect of which adequate reserves shall have been
established in accordance with GAAP on the books of the Company or any Subsidiary;

     (5) Liens consisting of attachments, judgments or awards against the Company or any
Subsidiary with respect to which an appeal or proceeding for review shall be pending or a
stay of execution shall have been obtained, or which are otherwise being contested in good
faith and by appropriate action, and in respect of which adequate reserves shall have been
established in accordance with GAAP on the books of the Company or any Subsidiary;

     (6) easements, rights of way, restrictions, leases of Property to others, easements
for installations of public utilities, title imperfections and restrictions, zoning
ordinances and other similar encumbrances affecting Property which in the aggregate do not
materially adversely affect the value of such Property or materially impair its use for the
operations of the business of the Company or any Subsidiary;

     (7) Liens existing on the date of the Indenture and securing Indebtedness or other
obligations of the Company or any Subsidiary;

     (8) statutory Liens in favor of lessors arising in connection with Property leased to
the Company or any Subsidiary;

26

 

     (9) Liens on Margin Stock to the extent that a prohibition on such Liens pursuant
to this Section 6.1 would violate Regulation U of the Board of Governors of the Federal
Reserve System of the United States of America, as the same may be amended or supplemented
from time to time;

     (10) purchase money Liens on Property hereafter acquired by the Company or any
Subsidiary created within 180 days of such acquisition (or in the case of real property,
completion of construction including any improvements or the commencement of operation of
the Property, whichever occurs later) to secure or provide for the payment or financing of
all or any part of the purchase price thereof; provided that the Lien secured thereby shall
attach only to the Property so acquired and related assets (except that individual
financings by one Person (or an Affiliate thereof) may be cross-collateralized to other
financings provided by such Person and its Affiliates that are independently permitted by
this clause (10));

     (11) Liens in respect of Permitted Sale-Leaseback Transactions;

     (12) Liens on the Property of a Person that becomes a Subsidiary after the date
hereof; provided that (i) such Liens existed at the time such Person becomes a Subsidiary
and were not created in anticipation thereof, (ii) any such Lien does not by its terms
cover any Property after the time such Person becomes a Subsidiary that was not covered
immediately prior thereto and (iii) any such Lien does not by its terms secure any
Indebtedness other than Indebtedness existing immediately prior to the time such Person
becomes a Subsidiary; provided that such Indebtedness was not incurred in anticipation of
such Person becoming a Subsidiary;

     (13) Liens on Property and proceeds thereof existing at the time of acquisition
thereof and not created in contemplation thereof;

     (14) Liens (i) of a collection bank arising under Section 4-208 of the Uniform
Commercial Code on the items in the course of collection, and (ii) in favor of a banking
institution arising as a matter of law encumbering deposits (including the right of set
off) and which are within the general parameters customary in the banking industry;

     (15) Liens securing Securitized Indebtedness in an aggregate principal amount not in
excess of $750,000,000 at any one time outstanding upon the granting of such Liens;

     (16) any extension, renewal, refinancing, substitution or replacement (or successive
extensions, renewals, refinancings, substitutions or replacements), as a whole or in part,
of any of the Liens referred to in paragraphs (7), (10), (12) and (13) of this Section;
provided that such extension, renewal, refinancing substitution or replacement Lien shall
be limited to all or any part of substantially the same property or assets that secured the
Lien extended, renewed, refinanced,

27

 

substituted or replaced (plus improvements on such Property) and the liability secured
by such Lien at such time is not increased;

     (17) Liens on proceeds of any of the assets permitted to be the subject of any Lien
or assignment permitted by this Section 6.1;

     (18) Liens imposed in respect of Environmental Laws;

     (19) Licenses of patents, trademarks and other intellectual property rights granted
by the Company or any of its Subsidiaries in the ordinary course of business and not
interfering in any material respect with the ordinary conduct of the business of the
Company or such Subsidiary;

     (20) Liens securing obligations (other than obligations representing Indebtedness for
borrowed money) under operating, reciprocal easement or similar agreements entered into in
the ordinary course of business of the Company and its Subsidiaries; and

     (21) other Liens; provided that, without duplication, the aggregate sum of all
obligations and Indebtedness secured by Liens permitted under this clause (21), together
with all Property subject to Permitted Sale-Leaseback Transactions would not exceed 15% of
the Company’s Consolidated Net Worth, measured upon granting of such Liens based on the
Company’s consolidated balance sheet for the end of the then most recent quarter for which
financial statements are available.

          SECTION 6.2. Sale and Lease-Back Transactions.

          The Company will not, and will not permit any of its Restricted Subsidiaries to engage in sale
and leaseback transactions except for Permitted Sale-Leaseback Transactions.

          SECTION 6.3. Right to Require Repurchase Upon a Change of Control Triggering Event.

          (1) Upon the occurrence of any Change of Control Triggering Event, each Holder of Notes shall
have the right to require, by delivery to the Company of a Purchase Notice, the Company to
repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of
such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”)
on the terms set forth in the Notes at a purchase price in cash equal to 101% of the aggregate
principal amount of the Notes repurchased, plus accrued and unpaid interest, if any, on the Notes
repurchased, to the date of purchase (subject to the right of Holders on the relevant Regular
Record Date to receive interest due on the relevant Interest Payment Date) (the “Change of
Control Payment”).

          (2) Within 30 days following any Change of Control Triggering Event, or at our option, prior
to any Change of Control but after the public announcement of the pending Change of Control, the
Company shall mail a notice to Holders of Notes, with a

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written copy to the Trustee, which notice shall govern the terms of the Change of Control
Offer. Such notice shall state:

     (i) a description of the transaction or transactions that constitute the Change of
Control Triggering Event;

     (ii) that the Change of Control Offer is being made pursuant to this Section 6.3 and
that all Notes validly tendered will be accepted for payment;

     (iii)
the Change of Control Payment and the Change of Control Payment Date,
which date shall be a Business Day that is no earlier than 30 days and no later than 60
days from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”); and

     (iv) if the notice is mailed prior to the date of the consummation of the Change of
Control, the notice will state that the Change of Control Offer is conditioned on the
Change of Control Triggering Event occurring on or prior to the Change of Control Payment
Date.

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

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

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

     (iii) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officers’ Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased and that all conditions precedent provided for in this
Sixth Supplemental Indenture to the Change of Control Offer and to the repurchase by the
Company of Notes pursuant to the Change of Control Offer have been complied with.

The Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control
Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder of Notes properly tendered a new Note equal in principal
amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in
a principal amount of $2,000 or an integral multiple of $1,000.

          (4) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of Notes as a result of a Change of Control Triggering
Event. To the extent that the provisions of any securities laws or regulations conflict with this
Section 6.3, the Company will comply

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with the applicable securities laws and regulations and will not be deemed to have breached
its obligations under this Section 6.3 by virtue of such conflicts.

          (5) Notwithstanding the foregoing, the Company will not be required to make an offer to
repurchase the Notes upon a Change of Control Triggering Event if (i) a third party makes such an
offer in the manner, at the times and otherwise in compliance with the requirements for an offer
made by the Company and such third party purchases all the Notes properly tendered and not
withdrawn under its offer or (ii) the Company has given written notice of a redemption as provided
under Section 5.2 unless the Company has failed to pay the Redemption Price on the Redemption Date.

          SECTION 6.4. Additional Guarantors.

          (1) If, after the date of the Indenture, any Subsidiary of the Company that is not then a
Guarantor guarantees, becomes a borrower or guarantor under, or grants any Lien to secure any
obligations pursuant to, the Existing Revolving Credit Facility, any refinancing or replacement
thereof or any other Indebtedness having an aggregate principal amount outstanding in excess of 15%
of the Company’s Consolidated Net Worth as of the end of the Company’s most recent quarter for
which financial statements are available (such Consolidated Net Worth to be measured at the time of
the incurrence of each such guarantee or borrowing or the granting of such Lien), then in any such
case such Subsidiary will become a Guarantor by executing a supplemental indenture and delivering
it to the Trustee promptly (but in any event, within two Business Days of the date on which it
guaranteed or incurred such Indebtedness or granted such Lien, as the case may be).

          (2) Notwithstanding the preceding paragraph, any Guarantee by a Guarantor that was issued
pursuant to this Section 6.4 solely as a result of its guarantee or incurrence of, or granting of a
Lien in respect of, any such Indebtedness shall be automatically and unconditionally released upon
the release or discharge of the guarantee that resulted in the creation of such Subsidiary’s
Guarantee (or upon such Subsidiary ceasing to be a borrower or the release of Liens granted by such
Subsidiary, as the case may be), except a discharge or release as a result of payment under such
guarantee, or of the refinancing or replacement of any such Indebtedness that is guaranteed or
incurred by such Guarantor.

ARTICLE VII

Supplemental Indentures

          SECTION 7.1. Supplemental Indentures without Consent of Holders of Notes.

          Section 901 of the Indenture shall not be applicable to the Notes.

          Without seeking the consent of any Holders, the Company, together with the Trustee, at any
time and from time to time, may modify and amend the Indenture, this Sixth Supplemental Indenture
and the terms of the Notes to:

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     (1) allow the Company’s or any Guarantor’s successor (or successive successors) to
assume the Company’s or such Guarantor’s obligations under the Indenture, this Sixth
Supplemental Indenture and the Notes pursuant to the provisions under Article VIII or
Section 9.15;

     (2) add to the covenants of the Company for the benefit of the Holders of the Notes
or to surrender any right or power herein conferred upon the Company under this Sixth
Supplemental Indenture, the Indenture or the Notes;

     (3) add any additional Events of Default;

     (4) secure the Notes;

     (5) provide for a successor Trustee with respect to the Notes and add or change any
of the provisions of the Indenture or the Sixth Supplemental Indenture as shall be
necessary to provide for or facilitate the administration of the trusts thereunder by more
than one Trustee, pursuant to the requirements of Section 611 of the Indenture;

     (6) add or release a Guarantor as required or permitted by this Sixth Supplemental
Indenture or the Indenture;

     (7) cure any ambiguity, defect or inconsistency;

     (8) modify the legends regarding restrictions on transferability on the Notes, which
modifications may not adversely affect the interests of the Holders of any Notes or owners
of beneficial interests in the Notes; or

     (9) make any other amendment or supplement to this Sixth Supplemental Indenture, the
Indenture or the Notes, as long as that amendment or supplement does not adversely affect
the interests of the Holders of any Notes in any material respect (to be evidenced by an
Opinion of Counsel).

No amendment to cure any ambiguity, defect or inconsistency in this Sixth Supplemental Indenture,
the Indenture or the Notes made solely to conform this Sixth Supplemental Indenture, the Indenture
or the Notes to the Description of the Notes contained in the Company’s prospectus supplement dated
June 4, 2009, to the extent that such provision in the Description of the Notes was intended to be
a verbatim recitation of a provision of this Sixth Supplemental Indenture, the Indenture or the
Notes, shall be deemed to adversely affect the interests of the Holders of any Notes.

          SECTION 7.2. Supplemental Indentures with Consent of Holders of Notes.

          Section 902 of the Indenture shall not be applicable to the Notes.

          The Company, together with the Trustee, may modify and amend the Indenture, this Sixth
Supplemental Indenture and the terms of the Notes, but with the

31

 

written consent of the Holders of at least a majority in aggregate principal amount of the
Outstanding Notes; provided that no modification or amendment may, without the consent of each
affected Holder of the Notes:

     (1) reduce the amount of Notes whose Holders must consent to an amendment, supplement
or waiver;

     (2) change the Stated Maturity of the principal of, or any installment of interest
on, any Note;

     (3) reduce the principal of, or any premium if any, or rate of interest on, any Note;

     (4) reduce any amount payable upon the redemption of any Note or, except as expressly
provided elsewhere herein, change the time at which any Note may be redeemed pursuant to
Article V;

     (5) change any place of payment where, or the currency in which, any principal of, or
premium, if any, or interest on, any Note is payable;

     (6) impair the right of any Holder of a Note to receive payment of principal of and
interest on such Holder’s Notes on or after the Stated Maturity or Redemption Date or to
institute suit for the enforcement of any payment on, or with respect to, any Note on or
after the Stated Maturity or Redemption Date;

     (7) reduce the percentage in principal amount of Outstanding Notes the consent of
whose Holders is required for modification or amendment of the Indenture or this Sixth
Supplemental Indenture for waiver of compliance with certain provisions of the Indenture or
this Sixth Supplemental Indenture or waiver of certain defaults;

     (8) release any Guarantor from any of its obligations under its Guarantee or this
Sixth Supplemental Indenture, or the Indenture, other than in accordance with the terms
hereof; or

     (9) modify any of the above provisions.

          The Holders of at least a majority in aggregate principal amount of the Outstanding Notes may,
on behalf of the Holders of all the Notes, waive any past default under the Indenture or this Sixth
Supplemental Indenture and its consequences, except a default in the payment of the principal of,
or premium, if any, or interest on, any Notes or in respect of a covenant or provision that under
the Indenture or this Sixth Supplemental Indenture cannot be modified or amended without the
consent of each Holder. In addition, the Holders of at least a majority in aggregate principal
amount of the Outstanding Notes may, on behalf of the Holders of all Notes waive compliance with
the Company’s covenants described under Sections 6.1 and 6.2 of this Sixth Supplemental Indenture.
Section 6.3 hereof may not be waived or modified without the written consent of Holders of at least
a majority in principal amount of Notes.

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ARTICLE VIII

Consolidation, Merger, Conveyance, Transfer or Lease

          SECTION 8.1. Company May Consolidate, Etc. on Certain Terms.

          Section 801 of the Indenture shall not be applicable to the Notes.

          The Company shall not in a single transaction or a series of related transactions, consolidate
with or merge with or into any other Person, permit any other Person to consolidate with or merge
with and into the Company or convey, transfer or lease all or substantially all of its properties
and assets to any other Person, unless:

     (1) the Company is the surviving entity, or the Person formed by such consolidation
or merger or the Person to which all or substantially all of the properties and assets of
the Company are conveyed, transferred or leased, as the case may be, shall be an entity
organized and existing under the laws of the United States of America, any state thereof or
the District of Columbia and shall expressly assume, by a supplemental indenture executed
and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual
payment of the principal of and any premium and interest on the Outstanding Notes and the
performance and observance of every covenant of this Sixth Supplemental Indenture and the
Indenture on the part of the Company to be performed or observed;

     (2) immediately after giving effect to any such transaction and treating any
Indebtedness that becomes an obligation of the Company or any Subsidiary of the Company as
a result of such transaction as having been incurred by the Company or any Subsidiary of
the Company at the time of such transaction, there shall not be any Event of Default or
event which, after notice or lapse of time or both, would become an Event of Default;

     (3) if, as a result of any such transaction, the properties or assets of the Company
would become subject to a Lien which would not be permitted under Section 6.1 of this Sixth
Supplemental Indenture, the Company or such successor Person, as the case may be, shall
take those steps that are necessary to secure all the Outstanding Notes equally and ratably
with Indebtedness secured by that Lien; and

     (4) the Company shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation or transfer and supplemental
indenture, if applicable, comply with this Sixth Supplemental Indenture and the Indenture
and that all conditions precedent to the consummation of the particular consolidation,
merger, conveyance, transfer or lease under this Sixth Supplemental Indenture and the
Indenture have been complied with.

33

 

          SECTION 8.2. Successor Corporation Substituted.

          Section 802 shall not be applicable to the Notes.

          Upon any consolidation or merger by the Company with or into any other Person or any
conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company to any other Person in accordance with Section 8.1, the successor Person formed by such
consolidation or merger or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company under this Sixth
Supplemental Indenture and the Indenture with the same effect as if such successor Person has been
named as the Company herein, and thereafter, except in the case of a lease to another Person, the
predecessor Person shall be relieved of all obligations and covenants under the Indenture, this
Sixth Supplemental Indenture and the Notes (to the extent the Company was the predecessor Person).

ARTICLE IX

Guarantors

          Article 15 of the Indenture shall not be applicable to the Notes.

          SECTION 9.1. Guarantee.

          (1) For value received, each of the Guarantors hereby jointly and severally and fully and
unconditionally guarantees (each a “Guarantee”), to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of this Sixth Supplemental Indenture, the Indenture or the Notes or the
obligations of the Company or any other Guarantor to the Holders or the Trustee hereunder or
thereunder, that: (a) the principal of, premium, if any, and interest on the Notes will be duly and
promptly paid in full when due, whether at Stated Maturity, upon redemption, by acceleration or
otherwise, and interest on the overdue principal and (to the extent permitted by law) interest, if
any, on the Notes and all other obligations of the Company or the Guarantor to the Holders of or
the Trustee hereunder or thereunder (including fees, expenses or others) (collectively, the
“Obligations”) will be promptly paid in full or performed, all in accordance with the terms
hereof and thereof; and (b) in case of any extension of time of payment or renewal of any
Obligations (with or without notice to such Guarantor), the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise. If the Company shall fail to pay when due, or to perform,
any Obligations, for whatever reason, each Guarantor shall be jointly and severally obligated to
pay in cash, or to perform or cause the performance of, the same promptly. An Event of Default
under this Sixth Supplemental Indenture or the Notes shall entitle the Holders of the Notes to
accelerate the Obligations of the Guarantor hereunder in the same manner and to the same extent as
the Obligations of the Company.

34

 

          (2) Each Guarantor hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes, this Sixth Supplemental
Indenture or the Indenture, the absence of any action to enforce the same, any waiver or consent by
any Holder of the Notes with respect to any provisions of this Sixth Supplemental Indenture, the
Indenture or the Notes, any release of any other Guarantor, the recovery of any judgment against
the Company, any action to enforce the same, whether or not a Guarantee is affixed to any
particular Note, or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor.

          (3) Each Guarantor further agrees that, as between it, on the one hand, and the Holders of
the Notes and the Trustee, on the other hand, (a) the maturity of the Obligations guaranteed hereby
may be accelerated as provided in Article IV of this Sixth Supplemental Indenture for the purposes
of the Guarantee, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations, and (b) in the event of any acceleration of such
Obligations as provided in Article IV of this Sixth Supplemental Indenture, such Obligations
(whether or not due and payable) shall forthwith become due and payable by the Guarantor for the
purposes of its Guarantee.

          SECTION 9.2. Waiver.

          To the fullest extent permitted by applicable law, each of the Guarantors waives diligence,
presentment, demand of, payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenants that the Guarantee will not be discharged except by
complete performance of the Obligations contained in the Notes, this Sixth Supplemental Indenture
and Indenture.

          SECTION 9.3. Guarantee of Payment.

          Each of the Guarantors further agrees that its Guarantee constitutes a guarantee of payment,
performance and compliance when due and not a guarantee of collection, and waives any right to
require that any resort be had by the Trustee or any Holder of the Notes to the security, if any,
held for payment of the Obligations.

          SECTION 9.4. No Discharge or Diminishment of Guarantee.

          Subject to Section 9.10 of this Sixth Supplemental Indenture, the obligations of each of the
Guarantors hereunder shall not be subject to any reduction, limitation, termination, impairment or
for any reason (other than the payment in full in cash of the Obligations), including any claim of
waiver, release, surrender, alteration or compromise of any of the Obligations, and shall not be
subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of
the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting
the generality of the foregoing, the obligations of each of the Guarantors hereunder shall not be
discharged or impaired or otherwise affected by the failure of the Trustee or any Holder of the
Notes

35

 

to assert any claim or demand or to enforce any remedy under this Sixth Supplemental
Indenture, the Indenture or the Notes, any other guarantee or any other agreement, by any waiver or
modification of any provision thereof, by any default, failure or delay, willful or otherwise, in
the performance of the Obligations, or by any other act or omission or delay to do any other act
that may or might in any manner or to any extent vary the risk of any Guarantor or that would
otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the
payment in full in cash of all the Obligations).

          SECTION 9.5. Defenses of Company Waived.

          To the extent permitted by applicable law, each of the Guarantors waives any defense based on
or arising out of any defense of the Company or any other Guarantor or the unenforceability of the
Obligations or any part thereof from any cause, or the cessation from any cause of the liability of
the Company, other than final payment in full in cash of the Obligations. Each of the Guarantors
waives any defense arising out of any such election even though such election operates to impair or
to extinguish any right of reimbursement or subrogation or other right or remedy of each of the
Guarantors against the Company or any security.

          SECTION 9.6. Continued Effectiveness.

          Subject to Section 9.10 of this Sixth Supplemental Indenture, each of the Guarantors further
agrees that its Guarantee hereunder shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or interest on any Obligation
is rescinded or must otherwise be restored by the Trustee or any Holder of the Notes upon the
bankruptcy or reorganization of the Company or otherwise.

          SECTION 9.7. Subrogation.

          In furtherance of the foregoing and not in limitation of any other right of each of the
Guarantors by virtue hereof, upon the failure of the Company to pay any Obligation when and as the
same shall become due, whether at maturity, by acceleration, after notice of prepayment or
otherwise, each of the Guarantors hereby promises to and will, upon receipt of written demand by
the Trustee or any Holder of the Notes, forthwith pay, or cause to be paid, to the Holders in cash
the amount of such unpaid Obligations, and thereupon the Holders shall, assign (except to the
extent that such assignment would render a Guarantor a “creditor” of the Company within the meaning
of Section 547 of Title 11 of the United States Code as now in effect or hereafter amended or any
comparable provision of any successor statute) the amount of the Obligations owed to it and paid by
such Guarantor pursuant to this Guarantee to such Guarantor, such assignment to be pro rata to the
extent the Obligations in question were discharged by such Guarantor, or make such other
disposition thereof as such Guarantor shall direct (all without recourse to the Holders, and
without any representation or warranty by the Holders). If (a) a Guarantor shall make payment to
the Holders of all or any part of the Obligations and (b) all the Obligations and all other amounts
payable under this Sixth Supplemental Indenture shall be paid in full, the Trustee will, at such
Guarantor’s

36

 

request, execute and deliver to such Guarantor appropriate documents, without recourse and
without representation or warranty, necessary to evidence the transfer by subrogation to such
Guarantor of an interest in the Obligations resulting from such payment by such Guarantor.

          SECTION 9.8. Information.

          Each of the Guarantors assumes all responsibility for being and keeping itself informed of the
Company’s financial condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Obligations and the nature, scope and extent of the risks that each of the
Guarantors assumes and incurs hereunder, and agrees that the Trustee and the Holders of the Notes
will have no duty to advise the Guarantors of information known to it or any of them regarding such
circumstances or risks.

          SECTION 9.9. Subordination.

          Upon payment by any Guarantor of any sums to the Holders, as provided above, all rights of
such Guarantor against the Company, arising as a result thereof by way of right of subrogation or
otherwise, shall in all respects be subordinated and junior in right of payment to the prior
payment in full in cash of all the Obligations to the Trustee; provided, however, that any right of
subrogation that such Guarantor may have pursuant to this Sixth Supplemental Indenture is subject
to Section 9.7 hereof.

          SECTION 9.10. Release of Guarantor.

          (1) A Guarantor shall, upon the occurrence of any of the following events, be automatically
and unconditionally released and discharged from all obligations under this Sixth Supplemental
Indenture and its Guarantee without any action required on the part of the Trustee or any Holder;
provided that such Guarantor would not, immediately after such release and discharge, be required
to become a Guarantor pursuant to Section 6.4 hereof if such Guarantor had incurred its
then-existing guarantees, indebtedness for borrowed money (including capital leases) and Liens at
the time of such release and discharge:

     (i) upon notice by the Company to the Trustee, at any time such Guarantor is not a
borrower or guarantor under, and has not granted any then-existing Lien to secure any
obligations pursuant to, the Existing Revolving Credit Facility as amended, any refinancing
or replacement thereof (including as a result of any release from such obligations in
connection with being designated an “exempt subsidiary” by the Company (as defined in the
Credit Agreement for the Existing Revolving Credit Facility)) or any other Indebtedness for
borrowed money (including capital leases) having an aggregate principal amount outstanding
in excess of 15% of the Company’s Consolidated Net Worth (other than obligations arising
under this Sixth Supplemental Indenture and the Notes, the 2012 Notes Supplemental
Indenture and the 2012 Notes, the 2014 Notes Supplemental Indenture and the 2014 Notes and
the 2019 Notes Supplemental

37

 

Indenture and the 2019 Notes) except where resulting from a discharge or release as a
result of payment under such guarantee; provided, however, that no Guarantor shall be
released under this subsection unless the Guarantor is substantially concurrently released
from its guarantees under the 2012 Notes Supplemental Indenture and the 2012 Notes, the
2014 Notes Supplemental Indenture and the 2014 Notes and the 2019 Notes Supplemental
Indenture and the 2019 Notes, or such guarantees have previously been terminated or
released;

     (ii) upon the occurrence of the circumstances described in Section 6.4 hereof, of
which the Company shall promptly notify the Trustee; or

     (iii) upon the sale, transfer or disposition of all or substantially all of the
equity interests or assets of the Guarantor to another Person (other than to the Company,
any of its Subsidiaries or Affiliates).

          (2) A Guarantor shall be automatically and unconditionally released and discharged from all
obligations under this Sixth Supplemental Indenture and its Guarantee without any action required
on the part of the Trustee or any Holder upon any Covenant Defeasance or Defeasance with respect to
the Notes, subject to reinstatement pursuant to Section 1306 of the Indenture.

          (3) The Trustee shall deliver an appropriate instrument evidencing such release upon receipt
of a request of the Company accompanied by an Officers’ Certificate certifying as to the compliance
with this Section. Any Guarantor not so released will remain liable for the full amount of the
principal of, premium, if any, and interest on the Notes provided in this Sixth Supplemental
Indenture and its Guarantee.

          SECTION 9.11. Limitation of Guarantor’s Liability.

          (1) Each Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the
intention of all such parties that the Guarantee by such Guarantor not constitute a fraudulent
transfer or conveyance for purposes of Title 11 of the United States Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the
extent applicable to any Guarantor. To effectuate the foregoing intention, the Holders and such
Guarantor hereby irrevocably agree that the obligations of such Guarantor under this Sixth
Supplemental Indenture and its Guarantee shall be limited to the maximum aggregate amount which,
after giving effect to all other contingent and fixed liabilities of such Guarantor, and after
giving effect to any collections from or payments made by or on behalf of, any other Guarantor in
respect of the obligations of such Guarantor under its Guarantee or pursuant to its contribution
obligations under this Sixth Supplemental Indenture, will result in the obligations of such
Guarantor under its Guarantee not constituting such fraudulent transfer or conveyance.

          (2) The Guarantee is expressly limited so that in no event, including the acceleration of the
maturity of the Securities, shall the amount paid or agreed to be paid in respect of interest on
the Securities (or fees or other amounts deemed payment for the

38

 

use of funds) exceed the maximum permissible amount under applicable law, as in effect on the
date hereof and as subsequently amended or modified to allow a greater amount of interest (or fees
or other amounts deemed payment for the use of funds) to be paid under the Guarantee. If for any
reason the amount in respect of interest (or fees or other amounts deemed payment for the use of
funds) required by the Guarantee exceeds such maximum permissible amount, the obligation to pay
interest under the Guarantee (or fees or other amounts deemed payment for the use of funds) shall
be automatically reduced to such maximum permissible amount and any amounts collected by any holder
of any Security in excess of the permissible amount shall be automatically applied to reduce the
outstanding principal on such Security.

          SECTION 9.12. Contribution from Other Guarantors.

          Each Guarantor that makes a payment or distribution under its Guarantee shall be entitled to
seek contribution from each other non-paying Guarantor in a pro rata amount based on the net assets
of each Guarantor, determined in accordance with generally accepted accounting principles in effect
in the United States of America as of the date hereof so long as the exercise of such right does
not impair the rights of the Holders under the Guarantee.

          SECTION 9.13. No Obligation to Take Action Against the Company.

          Neither the Trustee, any Holder nor any other Person shall have any obligation to enforce or
exhaust any rights or remedies or take any other steps under any security for the Obligations or
against the Company or any other Person or any Property of the Company or any other Person before
the Trustee, such Holder or such other Person is entitled to demand payment and performance by any
or all Guarantors of their liabilities and obligations under their Guarantee.

          SECTION 9.14. Execution and Delivery of the Guarantee.

          (1) To further evidence the Guarantee set forth in this Article IX, each Guarantor hereby
agrees that a notation of such Guarantee substantially in the form of Section 3.4 hereof shall be
endorsed on each Note authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an officer, manager or member, as applicable, of each Guarantor.

          (2) Each of the Guarantors hereby agrees that its Guarantee set forth in this Article IX
shall remain in full force and effect notwithstanding any failure to endorse on each Note a
notation of such Guarantee.

          (3) If an officer of a Guarantor whose signature is on this Sixth Supplemental Indenture or a
Guarantee no longer holds that office or is no longer a manager or member, as applicable, at the
time the Trustee authenticates such Guarantee or at any time thereafter, such Guarantor’s Guarantee
of such Note shall be valid nevertheless.

39

 

          (4) The delivery of any Note by the Trustee, after the authentication thereof hereunder,
shall constitute due delivery of any Guarantee set forth in this Sixth Supplemental Indenture on
behalf of each Guarantor.

          SECTION 9.15. Successor Guarantor.

          Unless otherwise released and discharged from its obligations in accordance with this Sixth
Supplemental Indenture, upon any consolidation or merger by any Guarantor with or into any other
Person, the successor Person formed by such consolidation or merger shall sign a supplemental
indenture and guarantee and succeed to, and be substituted for, and may exercise every right and
power of, the Guarantor under this Sixth Supplemental Indenture and the Indenture with the same
effect as if such successor Person has been named as a Guarantor herein, and thereafter the
predecessor Person shall be relieved of all obligations and covenants under the Indenture, this
Sixth Supplemental Indenture and the Notes (to the extent the Guarantor was the predecessor
Person).

ARTICLE X

Discharge of Obligations Under the Sixth Supplemental Indenture,

the Indenture and the Notes; Defeasance

          SECTION 10.1. Termination of the Obligations of the Company.

          The obligations of the Company with respect to the Notes under this Sixth Supplemental
Indenture, the Indenture and the Notes shall cease to be of further effect or, at the option of the
Company, the Company shall no longer be under any obligation to comply with the covenants described
in Articles VI, VII, VIII and IX of the Sixth Supplemental Indenture and Article 15 of the
Indenture and the Events of Default relating to those covenants shall no longer apply to the
Company if (a) either (i) all Outstanding Notes (other than Notes replaced pursuant to Section 306
of the Indenture) have been delivered to the Trustee for cancellation or (ii) all Outstanding Notes
have become due and payable on the Maturity Date or pursuant to Article V or Section 6.3, and in
any case the Company irrevocably deposits, prior to the applicable due date, with the Paying Agent
or Trustee (if the Paying Agent is not the Company or any of its Affiliates) cash in money of the
United States that at the time of payment is legal tender for payment of public and private debts,
sufficient to pay all amounts due and owing on all Outstanding Notes (other than Notes replaced
pursuant to Section 306 of the Indenture) on the Maturity Date, Redemption Date or Change of
Control Payment Date, as the case may be; (b) the Company pays to the Trustee or Paying Agent all
other sums payable hereunder by the Company; (c) no Default or Event of Default with respect to the
Notes shall exist on the date of such deposit; (d) such deposit will not result in a breach or
violation of, or constitute a Default or Event of Default under, this Sixth Supplemental Indenture
or any other agreement or instrument of which the Company is a party or by which the Company is
bound; and (e) the Company shall have delivered to the Trustee an Officers’ Certificate and Opinion
of Counsel, each stating that all conditions precedent provided for in this Sixth Supplemental
Indenture relating to the termination of the

40

 

obligations of the Company hereunder have been complied with provided, however, that (i)
Sections 303, 304, 305, 306, 308, 309, 606, 607, 610, 611, 1002 and 1003 of the Indenture, and (ii)
Articles I and X of the Sixth Supplemental Indenture and (iii) the rights, powers, trusts, duties
and immunities of the Trustee under the Indenture and the Sixth Supplemental Indenture shall
survive any discharge of obligations pursuant to this Section 10.1 until such time as the Notes
have been paid in full and there are no Notes Outstanding.

          SECTION 10.2. Repayment to Company.

          The Trustee and the Paying Agent shall promptly notify the Company of, and pay to the Company
upon the request of the Company, any excess money held by them at any time. The Trustee or the
Paying Agent, as the case may be, shall provide written notice to the Company of any money that has
been held by it and has, for a period of two years, remained unclaimed for the payment of the
principal of, or any accrued and unpaid interest on, the Notes. The Trustee and the Paying Agent
shall pay to the Company upon the written request of the Company any money held by them for the
payment of the principal of, premium, if any, or any accrued and unpaid interest on, the Notes that
remains unclaimed for two years; provided, however, that the Trustee or such Paying Agent, before
being required to make any such repayment, shall (in no event later than five days after the
Company requests repayment pursuant to this Section 10.2), at the expense of the Company, cause to
be published once in a newspaper of general circulation in the City of New York or cause to be
mailed to each Holder, notice stating that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such publication or
mailing, any unclaimed balance of such money then remaining will be repaid to the Company. After
payment to the Company, Holders entitled to the money must look to the Company for payment as
general creditors, subject to applicable law, and all liability of the Trustee and the Paying Agent
with respect to such money and payment shall, subject to applicable law, cease.

          SECTION 10.3. Amendment to Section 1302; Survival of Provisions of Sixth Supplemental
Indenture upon Defeasance.

          Section 1302 of the Indenture is hereby amended to delete all of the words following the colon
and the words “hereunder:” in the second sentence of Section 1302 and to replace them with the
following words “(i) Sections 303, 304, 305, 306, 308, 309, 606, 607, 610, 611, 1002 and 1003 of
the Indenture and (ii) the rights, powers, trusts, duties and immunities of the Trustee under the
Indenture.” In addition, upon Defeasance in accordance Section 1302 of the Indenture, (i) Articles
I and X of the Sixth Supplemental Indenture and (ii) the rights, powers, trusts, duties and
immunities of the Trustee under the Sixth Supplemental Indenture shall survive such Defeasance.

[Signature page to follow.]

41

 

     IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be
duly executed all as of the day and year first above written.

	 	 	 	 	 
	 	EXPRESS SCRIPTS, INC.

 	 
	 	By:  	/s/ George Paz	 
	 	 	Name:  	George Paz	 
	 	 	Title:  	Chief Executive Officer	 
	 
	 	AIRPORT HOLDINGS, LLC

ESI REALTY, LLC

 	 
	 	By:  	Express Scripts, Inc., as sole Member
 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	/s/ George Paz	 
	 	 	Name:  	George Paz	 
	 	 	Title:  	Chief Executive Officer	 
	 

[Signature Page to the Supplemental Indenture]

 

 

BYFIELD DRUG, INC.

CARE CONTINUUM, INC.

CFI OF NEW JERSEY, INC.

CHESAPEAKE INFUSION, INC.

CONNECTYOURCARE COMPANY LLC

CONNECTYOURCARE LLC

CURASCRIPT PBM SERVICES INC.

DIVERSIFIED PHARMACEUTICAL
SERVICES, INC.

ESI ACQUISITION, INC.

ESI CLAIMS, INC.

ESI ENTERPRISES, LLC

ESI MAIL ORDER PROCESSING, INC.

EXPRESS SCRIPTS CANADA HOLDING CO.

EXPRESS SCRIPTS CANADA HOLDING, LLC

EXPRESS SCRIPTS PHARMACEUTICAL PROCUREMENT, LLC

EXPRESS SCRIPTS SALES DEVELOPMENT CO.

FRECO, INC.

FREEDOM SERVICE COMPANY, LLC

HEALTHBRIDGE, INC.

HEALTHBRIDGE REIMBURSEMENT AND PRODUCT SUPPORT, INC.

iBIOLOGIC, INC.

IVTX, INC.

LYNNFIELD COMPOUNDING CENTER, INC.

LYNNFIELD DRUG, INC.

MATRIX GPO LLC

NATIONAL PRESCRIPTION ADMINISTRATORS, INC.

PRIORITY HEALTHCARE CORPORATION

PRIORITY HEALTHCARE CORPORATION WEST

PRIORITY HEALTHCARE DISTRIBUTION, INC.

PRIORITY HEALTHCARE PHARMACY, INC.

PRIORITYHEALTHCARE.COM, INC.

SINUSPHARMACY, INC.

SPECIALTY INFUSION PHARMACY, INC.

SPECTRACARE, INC.

SPECTRACARE HEALTH CARE

VENTURES, INC.

SPECTRACARE INFUSION PHARMACY, INC.

VALUE HEALTH, INC.

YOURPHARMACY.COM, INC.

	 	 	 	 	 
	 	
 

 	 
	 	 By:  	/s/ Keith J. Ebling
	 
	 	 	Name:  	Keith J. Ebling 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to the Supplemental Indenture]

 

 

CURASCRIPT, INC.

ESI MAIL PHARMACY SERVICE, INC.

EXPRESS SCRIPTS SPECIALITY DISTRIBUTION SERVICES, INC.

EXPRESS SCRIPTS UTILIZATION MANAGEMENT CO.

MOORESVILLE ON-SITE PHARMACY, LLC

	 	 	 	 	 
	 	 	 
	 	By:  	  /s/ Patrick McNamee 	 
	 	 	Name:  	Patrick McNamee 	 
	 	 	Title:  	President 	 
	 

[Signature Page to the Supplemental Indenture]

 

 

	 	 	 	 	 
	 	

ESI-GP HOLDINGS, INC.

ESI RESOURCES, INC.

 	 
	 	     By:   	/s/
Tom Rocheford	 
	 	 	Name:  	Tom Rocheford 	 
	 	 	Title:  	President 	 
	 
	 	ESI PARTNERSHIP

 	 
	 	By:  	Express Scripts, Inc., as Partner
 	 
	 
	 	     By:   	/s/ Martin P. Akins
 	 
	 	 	Name:  	Martin P. Akins 	 
	 	 	Title:  	Vice President and Deputy General Counsel 	 
	 
	 	By:  	ESI-GP Holdings, Inc., as Partner	 
	 	 	 
	 	     By:   	/s/ Tom Rocheford
 	 
	 	 	Name:  	Tom Rocheford 	 
	 	 	Title:  	President 	 
	 

[Signature Page to the Supplemental Indenture]

 

 

	 	 	 	 	 
	 	SPECTRACARE OF INDIANA

 	 
	 	By:  	Spectracare, Inc., as Partner
 	 
	 
	 	By:  	/s/ Keith J. Ebling	 
	 	 	Name:  	Keith J. Ebling 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	Care Continuum, Inc., as Partner 	 
	 
	 	By:  	/s/ Keith J. Ebling
 	 
	 	 	Name:  	Keith J. Ebling 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	EXPRESS SCRIPTS MSA, LLC

EXPRESS SCRIPTS WC, INC.

 	 
	 	By:  	/s/
Edward Ignaczak	 
	 	 	Name:  	Edward Ignaczak 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	

EXPRESS SCRIPTS SENIOR CARE, INC.

EXPRESS SCRIPTS SENIOR CARE

HOLDINGS, INC.

 	 
	 	By:  	/s/
George Paz	 
	 	 	Name:  	George Paz 	 
	 	 	Title:  	President 	 
	 
	 

[Signature Page to the Supplemental Indenture]

 

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

As Trustee

 	 
	 	By:  	/s/ Patricia Phillips-Coward
	 
	 	 	Name:  	Patricia Phillips-Coward 	 
	 	 	Title:  	Vice-President 	 
	 

[Signature Page to the Supplemental Indenture]

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