Document:

EX-10.1

Exhibit 10.1

CREDIT AGREEMENT

by and between

SURMODICS., INC.

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Sole Lead Arranger and Administrative Agent

and the Lenders party hereto

Dated as of February 27, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	Section 1.1 Defined Terms
	 	 	1	 
	Section 1.2 Accounting Terms and Calculations
	 	 	12	 
	Section 1.3 Computation of Time Periods
	 	 	12	 
	Section 1.4 Other Definitional Terms
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 2. AMOUNT AND TERMS OF CREDIT FACILITIES
	 	 	12	 
	Section 2.1 Revolving Loan and Letter of Credit Facilities
	 	 	12	 
	Section 2.2 Procedure for Advances
	 	 	17	 
	Section 2.3 Payments and Prepayments
	 	 	18	 
	Section 2.4 Notes
	 	 	19	 
	Section 2.5 Interest
	 	 	19	 
	Section 2.6 Fees and Expenses
	 	 	21	 
	Section 2.7 Funding Losses
	 	 	22	 
	Section 2.8 Increased Costs
	 	 	22	 
	Section 2.9 Discretion of Lenders as to Manner of Funding
	 	 	23	 
	Section 2.10 Optional Prepayment/Replacement of Lenders
	 	 	23	 
	Section 2.11 Termination of Revolving Loan Commitment
	 	 	24	 
	Section 2.12 Use of Revolving Loan Proceeds
	 	 	24	 
	Section 2.13 Maturity
	 	 	24	 
	Section 2.14 USA Patriot Act Notice
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 3. CONDITIONS PRECEDENT
	 	 	25	 
	Section 3.1 Conditions of Initial Advances
	 	 	25	 
	Section 3.2 Conditions Precedent to all Advances
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 4. REPRESENTATIONS AND WARRANTIES
	 	 	26	 
	Section 4.1 Organization, Standing, Etc.
	 	 	26	 
	Section 4.2 Authorization and Validity
	 	 	27	 
	Section 4.3 No Conflict; No Default
	 	 	27	 
	Section 4.4 Government Consent
	 	 	27	 
	Section 4.5 Financial Statements/Disclosure/Solvency
	 	 	27	 
	Section 4.6 Litigation and Contingent Liabilities
	 	 	28	 
	Section 4.7 Compliance
	 	 	28	 
	Section 4.8 Environmental, Health and Safety Laws
	 	 	28	 
	Section 4.9 ERISA
	 	 	28	 
	Section 4.10 Regulation U
	 	 	29	 
	Section 4.11 Ownership of Property; Liens
	 	 	29	 
	Section 4.12 Taxes
	 	 	29	 
	Section 4.13 Intellectual Property
	 	 	29	 
	Section 4.14 Investment Company Act
	 	 	30	 
	Section 4.15 Subsidiaries
	 	 	30	 
	Section 4.16 Related Entities
	 	 	30	 
	Section 4.17 Investment Policy
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 5. AFFIRMATIVE COVENANTS
	 	 	30	 
	Section 5.1 Financial Statements and Reports
	 	 	30	 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 5.2 Financial Covenants
	 	 	32	 
	Section 5.3 Corporate Existence
	 	 	32	 
	Section 5.4 Insurance
	 	 	32	 
	Section 5.5 Payment of Taxes and Claims
	 	 	32	 
	Section 5.6 Inspection
	 	 	33	 
	Section 5.7 Maintenance of Properties
	 	 	33	 
	Section 5.8 Books and Records
	 	 	33	 
	Section 5.9 Compliance
	 	 	33	 
	Section 5.10 ERISA
	 	 	33	 
	Section 5.11 Additional Subsidiaries
	 	 	33	 
	Section 5.12 Environmental Matters
	 	 	34	 
	Section 5.13 Depository Accounts
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 6. NEGATIVE COVENANTS
	 	 	34	 
	Section 6.1 Consolidation and Merger; Asset Acquisitions; Investments
	 	 	34	 
	Section 6.2 Sale of Assets
	 	 	35	 
	Section 6.3 Indebtedness
	 	 	35	 
	Section 6.4 Liens
	 	 	36	 
	Section 6.5 Transactions with Affiliates
	 	 	36	 
	Section 6.6 No Restrictions on Subsidiary Distributions
	 	 	37	 
	Section 6.7 Use of Proceeds
	 	 	37	 
	Section 6.8 Plans
	 	 	37	 
	Section 6.9 Change in Nature of Business
	 	 	37	 
	Section 6.10 Restriction on Fundamental Changes
	 	 	37	 
	Section 6.11 No Negative Pledges/Other Agreements
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 7. EVENTS OF DEFAULT AND REMEDIES
	 	 	37	 
	Section 7.1 Events of Default
	 	 	37	 
	Section 7.2 Remedies
	 	 	39	 
	Section 7.3 Offset
	 	 	40	 
	 
	 	 	 	 
	ARTICLE 8. AGENCY
	 	 	40	 
	Section 8.1 Appointment of Agent
	 	 	40	 
	Section 8.2 Nature of Duties of Agent
	 	 	40	 
	Section 8.3 Lack of Reliance on Agent
	 	 	41	 
	Section 8.4 Certain Rights of Agent
	 	 	41	 
	Section 8.5 Reliance by Agent
	 	 	41	 
	Section 8.6 Indemnification of Agent
	 	 	42	 
	Section 8.7 Agent in its Individual Capacity
	 	 	42	 
	Section 8.8 Successor Agent
	 	 	42	 
	Section 8.9 Amendments, Consents and Waivers
	 	 	43	 
	Section 8.10 Actions with Respect to Defaults
	 	 	43	 
	Section 8.11 Delivery of Information
	 	 	43	 
	Section 8.12 Demand
	 	 	44	 
	Section 8.13 Notice of Default
	 	 	44	 
	Section 8.14 Arranger
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 9. FUNDING OF ADVANCES, RECEIPT OF PAYMENTS
	 	 	44	 
	Section 9.1 Funding of Advances/Settlement
	 	 	44	 
	Section 9.2 Availability of Lender’s Pro Rata Share
	 	 	45	 

 

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 9.3 Return of Payments
	 	 	45	 
	Section 9.4 Non-Funding Lenders
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 10. ASSIGNMENTS AND PARTICIPATIONS
	 	 	46	 
	Section 10.1 Assignments
	 	 	46	 
	Section 10.2 Participations
	 	 	47	 
	Section 10.3 Security Interests in Obligations; Assignments to Affiliates
	 	 	47	 
	Section 10.4 Other Matters
	 	 	48	 
	 
	 	 	 	 
	ARTICLE 11. MISCELLANEOUS
	 	 	48	 
	Section 11.1 Waivers and Amendments
	 	 	48	 
	Section 11.2 Indemnities
	 	 	49	 
	Section 11.3 Notices
	 	 	49	 
	Section 11.4 Successors
	 	 	51	 
	Section 11.5 Participations and Information
	 	 	51	 
	Section 11.6 Treatment of Certain Information; Confidentiality
	 	 	51	 
	Section 11.7 Failure or Indulgence Not Waiver; Remedies Cumulative
	 	 	51	 
	Section 11.8 Marshaling; Payments Set Aside
	 	 	51	 
	Section 11.9 Lenders’ Obligations Several; Independent Nature of Lenders’ Rights
	 	 	52	 
	Section 11.10 Severability
	 	 	52	 
	Section 11.11 Subsidiary References
	 	 	52	 
	Section 11.12 Captions
	 	 	52	 
	Section 11.13 Entire Agreement
	 	 	52	 
	Section 11.14 Counterparts
	 	 	52	 
	Section 11.15 Governing Law
	 	 	52	 
	Section 11.16 Consent to Jurisdiction
	 	 	53	 
	Section 11.17 Waiver of Jury Trial
	 	 	53	 
	Section 11.18 Borrower Acknowledgements
	 	 	53	 
	Section 11.19 Arbitration
	 	 	53	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A            Form of Revolving Note
	 	 	 	 
	Exhibit B            Form of Compliance Certificate
	 	 	 	 
	Exhibit C            New Lender Supplement
	 	 	 	 
	Exhibit D            Commitment Increase Supplement
	 	 	 	 
	Exhibit E            Form of Assignment Certificate
	 	 	 	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule 1.1A         Commitments
	 	 	 	 
	Schedule 4.6            Litigation and Contingent Liabilities Disclosure
	 	 	 	 
	Schedule 4.8            Environmental Disclosure
	 	 	 	 
	Schedule 4.13          Intellectual Property Disclosure
	 	 	 	 
	Schedule 4.15          Subsidiaries Disclosure
	 	 	 	 
	Schedule 4.16          Related Entities Disclosure
	 	 	 	 
	Schedule 4.17          Investment Policy
	 	 	 	 
	Schedule 6.4            Permitted Liens
	 	 	 	 
	Schedule 6.5            Permitted Affiliated Transactions
	 	 	 	 

 

 

CREDIT AGREEMENT

     This Credit Agreement, together with all exhibits and schedules attached hereto and
hereby made a part hereof (“Agreement”), is made as of February 27, 2009, by and
among SurModics, Inc., a Minnesota corporation (the “Borrower”), the financial
institutions from time to time party hereto (the “Lenders”) and Wells Fargo Bank, National
Association, a national banking association (in its individual capacity, “Wells Fargo”), and
Wells Fargo as sole lead arranger and as administrative agent for the Lenders (in such
administrative agent capacity, the “Agent”).

RECITALS

     A. Borrower and Guarantors have requested that Wells Fargo and Lenders make available to
Borrower the extensions of credit and certain other financial accommodations referenced herein.

     B. Wells Fargo and the Lenders have agreed severally to make available to Borrower the
extensions of credit and other financial accommodations referenced herein on the terms and
conditions contained herein.

     NOW THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein and for other good and valuable consideration, the parties agree as follows:

ARTICLE 1.

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.1 Defined Terms. In addition to the terms defined elsewhere in this Agreement, the following terms shall
have the following respective meanings (and such meanings shall be equally applicable to both the
singular and plural form of the terms defined, as the context may require):

     “Advance” means either a LIBOR Advance or a Floating Rate Advance.

     “Acquisition” means any transaction, or any series of related transactions, consummated on or
after the date of this Agreement, by which the Borrower or any of its Subsidiaries (i) acquires any
going business or all or substantially all of the assets of any Person, or division thereof,
whether through purchase of assets, merger or otherwise; or (ii) directly or indirectly acquires
(in one transaction or as the most recent transaction in a series of transactions) all of the
securities of a corporation or of the outstanding ownership interests of a partnership or limited
liability company or other business entity.

     “Acquisition Limit” means the lesser of (a) $30,000,000 or (b) the aggregate EBITDA for the
immediately preceding twelve month period.

1

 

     “Advance Date” means the date of the making of any Advance hereunder.

     “Affiliate” or “Affiliates” means with respect to any Person (a) each Person that is directly
or indirectly controlling, controlled by, or under common control with such Person; (b) each Person
that, directly or indirectly owns or holds ten percent (10%) or more of any equity interest in such
Person; or (c) ten percent (10%) or more of whose voting stock or other equity interest is directly
or indirectly owned or held by such Person. For purposes of this definition, “control” (including
with correlative meanings, the terms “controlling”, “controlled by” and “under common control
with”) means the possession directly or indirectly of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities or by
contract or otherwise. Notwithstanding the foregoing, none of Agent, any Lender nor any of their
respective Affiliates shall be considered an Affiliate of any Borrower or any of its Subsidiaries.

     “Agreement” means this Credit Agreement, as it may be amended, modified, supplemented,
restated or replaced from time to time.

     “Approved New Lender Offerees” has the meaning given in Section 2.1(a)(iii)A.

     “Assignment Certificate” has the meaning given in Section 2.1(a).

     “Business Day” means any day (other than a Saturday, Sunday or legal holiday in the State of
Minnesota) on which national banks are permitted to be open in Minneapolis, Minnesota.

     “Change of Control” means any event or series of events whereby any Person or “group” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any
employee benefit plan of such person or its subsidiaries, and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan) is or becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934,
except that any such Person, entity or group will be deemed to have “beneficial ownership” of all
securities that such Person, entity or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or indirectly, of more than
twenty-five percent (25%) of the voting power of all classes of ownership of Borrower.

     “Code” means The Internal Revenue Code of 1986, as amended, or any successor statute, together
with regulations thereunder.

     “Commitment” means with respect to any Lender, the obligation of such Lender, if any, to make
Revolving Loans and participate in and Letter of Credit Obligations in an aggregate principal
and/or face amount not to exceed the amount set forth under the heading “Commitment” opposite such
Lender’s name on Schedule 1.1A or in the Assignment and Assumption or New Lender Supplement
pursuant to which such Lender became a party hereto, as the same may be changed from time to time
pursuant to the terms hereof.

     “Commitment Increase Notice” has the meaning given in Section 2.1(a)(iii)A.

     “Commitment Increase Supplement” shall have the meaning given in Section 2.1(a)(iii)C.

2

 

     “Contingent Debt” means all contingent liabilities, including but not limited to guaranties.

     “Current Liabilities” means all Debt of the Borrower and its Subsidiaries due on demand or
within one year from the date of determination thereof, all borrowings under the Revolving Loan
Commitment and any Letter of Credit Obligations and all other items (including taxes accrued as
estimated), which in accordance with GAAP, may be properly classified as current liabilities.

     “Debt” of any Person means (i) all items of indebtedness or liability which in accordance with
GAAP would be included in determining total liabilities as shown on the liabilities side of a
balance sheet (except that derivative liabilities will be excluded to the extent of corresponding
derivative assets provided that no credit shall be given to the extent that derivative assets
exceed derivative liabilities) of that Person as at the date as of which Debt is to be determined
and (ii) if not included in items (i) or (iii), indebtedness secured by any mortgage, pledge, lien
or security interest existing on property owned by such Person, whether or not the indebtedness
secured thereby shall have been assumed, and (iii) if not included in items (i) or (ii), guaranties
and endorsements (other than for purposes of collection in the ordinary course of business) by such
Person and other contingent obligations of such Person in respect of, or to purchase or otherwise
acquire, indebtedness of others.

     “Default” means any event which, with the giving of notice to the Borrower or lapse of time,
or both, would constitute an Event of Default.

     “Defaulting Lender” a Lender that (a) has failed to fund its portion of any Loan or any
participations in Letters of Credit that it is required to fund under this Agreement and has
continued in such failure for three Business Days after written notice from the Agent, (b) has
otherwise failed to pay over to the Agent or any other Lender any other amount required to be paid
by it hereunder within three Business Days of the date when due, unless the subject of a good faith
dispute, or (c) has been deemed insolvent or become the subject of a receivership, bankruptcy or
insolvency proceeding.

     “Default Rate” shall have the meaning given to it in Section 2.5(e).

     “Dollars” and “$” means dollars in lawful currency of the United States.

     “EBITDA” means, with reference to any period, the Net Income (or loss) of the Borrower and its
Subsidiaries for such period, plus, to the extent deducted in determining such Net Income, (i)
consolidated interest expense (net of capitalized interest), (ii) expense for income taxes paid or
accrued, (iii) depreciation, and (iv) amortization, all calculated for the Borrower and its
Subsidiaries on a consolidated basis, in accordance with GAAP.

     “ERISA” means The Employee Retirement Income Security Act of 1974, as amended, and any
successor statute, together with regulations thereunder.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that is a member
of a group of which the Borrower is a member and which is treated as a single employer under
Section 414 of the Code.

3

 

     “Event of Default” means any event described in Section 7.1.

     “Floating Rate” means with respect to any Floating Rate Advances: (i) from the date hereof,
until Borrower receives written notice from the Agent, the LIBOR Base Rate applicable to a 90-day
Interest Period plus the applicable Margin pursuant to Subsection 2.5(c) below, which LIBOR Base
Rate shall, in each case, change when and as the LIBOR Base Rate applicable to a 90-day Interest
Period changes; and (ii) from the date the Borrower receives written notice from the Agent, the
Prime Rate, which interest rate shall, in each case, change when and as the Prime Rate changes.

     “Floating Rate Advance” means an Advance specified as such in a notice of borrowing under
Section 2.2 or a notice of continuation or conversion under Section 2.1(a)(ii).

     “Funded Debt” means the sum of all Debt of the Borrower and its Subsidiaries, determined on a
consolidated basis, of any maturity, on which such entity customarily pays interest, including, but
not limited to: (i) all rental payments under capitalized leases, (ii) all subordinated debt
(whether or not such entity pays interest thereon), and (iii) all Letter of Credit Obligations.

     “GAAP” means generally accepted accounting principles as applied in the preparation of the
audited financial statement of the Borrower referred to in Section 4.5.

     “Guarantors” means, collectively, each Subsidiary that shall become a Guarantor as required by
Section 5.11 hereof and any other Person who becomes a Guarantor of the Obligations.

     “Guaranties” means, collectively, each and every Guaranty executed by a Guarantor in favor of
the Agent for the benefit of the Lenders, in form and substance acceptable to Agent, as such
Guaranty may hereafter be amended, modified, or replaced from time to time.

     “Interest Period” means, for any LIBOR Advance, the period commencing on the borrowing date of
such LIBOR Advance or the date LIBOR Advance is converted into such LIBOR Advance, or the last day
of the preceding Interest Period for any outstanding LIBOR Advance being continued into a
subsequent Interest Period, as the case may be, and ending on the numerically corresponding day
one, two, three, six or twelve months thereafter, as selected by the Borrower pursuant to Article 2
hereof; provided, that:

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

     (b) any Interest Period which begins on the last LIBOR 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 LIBOR Business Day of the calendar
month at the end of such Interest Period; and

4

 

     (c) no Interest Period shall extend beyond the Termination Date.

     “Lenders” has the meaning set forth in the first paragraph of page one (1) of this Agreement.

     “Letter of Credit” means any letter of credit issued by the Agent on the application of the
Borrower.

     “Letter of Credit Application” means an application by the Borrower, in a form and containing
terms and provisions acceptable to the Agent, for the issuance by the Agent of a Letter of Credit.

     “Letter of Credit Obligations” means, as of any date of determination, the sum of (a) the
amount available to be drawn or which may become available to be drawn under Letters of Credit
outstanding on such date, (b) the aggregate amount of Unpaid Drawings on such date, and (c) to the
extent not included in the foregoing, all accrued and unpaid interest, fees and expenses with
respect thereto.

     “LIBOR Advance” means an Advance specified as such in a notice of borrowing under Section
2.1(a)(i), or a notice of continuation or conversion under Section 2.1(a)(ii).

     “LIBOR Base Rate” with respect to each Interest Period pertaining to a LIBOR Advance, the rate
per annum determined on the basis of the rate for deposits in Dollars for a period equal to such
Interest Period commencing on the first day of such Interest Period appearing on Page 3750 of the
Telerate screen as of 11:00 A.M., London time, two (2) Business Days prior to the beginning of such
Interest Period, such rate to remain fixed for such Interest Period. In the event that such rate
does not appear on Page 3750 of the Telerate screen (or otherwise on such screen), the “LIBOR Base
Rate” shall be determined by reference to such other comparable publicly available service for
displaying LIBOR rates as may be selected by the Agent or, in the absence of such availability, by
reference to the rate at which the Agent is offered Dollar deposits at or about 10:00 A.M. two
Business Days prior to the beginning of such Interest Period in the London interbank market where
its foreign currency and exchange operations are then being conducted for delivery on the first day
of such Interest Period for the number of days comprised therein. Notwithstanding the foregoing,
with respect to any Interest Period less than or equal to 90 days, the “LIBOR Base Rate” shall be
the rate per annum determined on the basis of the rate for deposits in Dollars for a period equal
to 90 days, as such rate is determined above.

     “LIBOR Business Day” means a day on which banks are open for business in the State of
Minnesota and on which dealings in U.S. dollar deposits are carried on in the London interbank
market.

     “LIBOR Rate” means the rate per annum (rounded upward, if necessary, to the nearest whole 1/8
of 1%) and determined pursuant to the following formula:

	 	 	 	 	 
	LIBOR Rate =

	 	LIBOR Base Rate
	 	 
	 

	 	 	 	 
	 

	 	100% — LIBOR Reserve Percentage	 	 

     “LIBOR Reserve Percentage” of any Lender for any Interest Period as applied to a LIBOR
Advance, the reserve percentage applicable during such Interest Period (or if more than

5

 

one such percentage shall be so applicable, the daily average of such percentages for those
days in such Interest Period during any such percentage shall be so applicable) under any
regulations of the Board or other Governmental Authority having jurisdiction with respect to
determining the maximum reserve requirement (including basic, supplemental and emergency reserves)
for such Lender with respect to liabilities or assets consisting of or including “Eurocurrency
Liabilities” (as defined in Regulation D of the Federal Reserve Board, as amended) having a term
equal to such Interest Period.

     “Lien” means any security interest, mortgage, pledge, lien, hypothecation, judgment lien or
similar legal process, charge, encumbrance, title retention agreement or analogous instrument or
device (including, without limitation, the interest of the lessors under capital leases and the
interest of a vendor under any conditional sale or other title retention agreement).

     “Loan Documents” means this Agreement, the Note, the Negative Pledge Agreement, and each other
instrument, document, guaranty, security agreement, mortgage, or other agreement executed and
delivered by the Borrower or any party in connection with this Agreement, the Loans or the Letters
of Credit, or any collateral for the Loans or Letter of Credit Obligations, in each case, including
any amendment, waiver, supplement or other modification to any of the foregoing.

     “Loans” means the Revolving Loan and all Advances thereunder.

     “Marketable Securities” means any of the following:

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

     (b) Certificates of deposit, time or demand deposit accounts or bankers acceptances
maturing within one year from the date of acquisition thereof issued by a commercial bank or
trust company organized under the laws of the United States of America or a state thereof or
that is a Lender, provided that (i) such deposits or bankers acceptances are denominated in
Dollars, (ii) such bank or trust company has capital, surplus and undivided profits of not
less than $100,000,000 and (iii) such bank or trust company has certificates of deposit or
other debt obligations rated at least A-1 (or its equivalent) by S&P or P-1 (or its
equivalent) by Moody’s;

     (c) Open market commercial paper maturing within 360 days from the date of acquisition
thereof issued by a corporation organized under the laws of the United States of America or
a state thereof, provided such commercial paper is rated at least A-1 (or its equivalent) by
S&P or P-1 (or its equivalent) by Moody’s;

     (d) Any repurchase agreement entered into with a commercial bank or trust company
organized under the laws of the United States of America or a state thereof or that is a
Lender, provided that (i) such bank or trust company has capital, surplus and

6

 

undivided profits of not less than $100,000,000, (ii) such bank or trust company has
certificates of deposit or other debt obligations rated at least A-1 (or its equivalent) by
S&P or P-1 (or its equivalent) by Moody’s, (iii) the repurchase obligations of such bank or
trust company under such repurchase agreement are fully secured by a perfected security
interest in a security or instrument of the type described in clause (a), (b) or (c) above
and (iv) such security or instrument so securing the repurchase obligations has a fair
market value at the time such repurchase agreement is entered into of not less than 100% of
such repurchase obligations;

     (e) shares of any money market mutual or similar fund that has all or at least 95% of
its assets invested continuously in investments satisfying the requirements of clauses (a)
through (d) of this definition;

     (f) securities with maturities of one year or less from the date of acquisition issued
or fully guaranteed by any state, commonwealth or territory of the United States, by any
political subdivision or taxing authority of any such state, commonwealth or territory or by
any foreign government, the securities of which state, commonwealth, territory, political
subdivision, taxing authority or foreign government (as the case may be) are rated at least
A by S&P or A2 by Moody’s; and

     (g) to the extent not included in items (a) through (f) above, any securities purchased
in accordance with the Borrower’s Investment Policy adopted by its board of directors on
January 30, 2006 and attached hereto as Schedule 4.17, provided that such securities
maintain a rating of A or higher at the time of purchase.

     “Margin” has the meaning given to it in Section 2.5(c).

     “Margin Adjustment Date” has the meaning given to it in Section 2.5(c).

     “Material Adverse Effect” means (a) a material adverse effect upon the business, operations,
properties, assets or condition (financial or otherwise) of any Borrower, or (b) the impairment of
the ability of any party to perform its obligations under any Loan Document to which it is a party
or of Agent or any Lender to enforce any Loan Document or collect any of the Obligations. In
determining whether any individual event would result in a Material Adverse Effect, notwithstanding
that such event does not of itself have such effect, a Material Adverse Effect shall be deemed to
have occurred if the cumulative effect of such event and all other then existing events would
result in a Material Adverse Effect.

     “Multiemployer Plan” means a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) to
which the Borrower or any ERISA Affiliate contributes or is obligated to contribute.

     “Negative Pledge Agreement” means that certain Negative Pledge Agreement of even date herewith
and executed by the Borrower and each Subsidiary in favor of the Lender.

     “Net Income” means, with reference to any period, the net income (or loss) of the Borrower and
its Subsidiaries for such period plus, to the extent deducted in calculating such net income, (i)
Purchased In-Process Research and Development Expense, (ii) non-recurring costs or

7

 

expense incurred with a merger, acquisition or restructuring (financial or operational)
(acceptable to Agent) and (iii) extraordinary non-cash losses incurred other than in the ordinary
course of business, minus, to the extent included in such net income, extraordinary gains realized
other than in the ordinary course of business, all calculated for the Borrower and its Subsidiaries
on a consolidated basis, in accordance with GAAP.

     “New Lender Supplement” as defined in Section 2.1(a)(iii)B.

     “New Revolving Credit Lender” as defined in Section 2.1(a)(iii)B.

     “Notes” means any or all of the Revolving Notes.

     “Obligations” means all of Borrower’s and each Guarantor’s liabilities, obligations, and other
Debt to Agent and Lenders of any and every kind and nature under or with respect to the all Loan
Documents, whether heretofore, now or hereafter owing, arising, due or payable and howsoever
evidenced, created, incurred, acquired, or owing, whether individually or collectively, direct or
indirect, joint or several, absolute or contingent, primary or secondary, fixed or otherwise
(including obligations of performance) and whether arising or existing under written agreement,
oral agreement or operation of law, including, without limitation, all of Borrower’s reimbursement
obligations, whether contingent or liquidated, with respect to any Letter of Credit and all of
Borrower’s and each Guarantor’s other Debt and obligations to Agent and Lenders under or in respect
of this Agreement, the other Loan Documents and any Rate Contract between Borrower and Agent or an
Affiliate of Agent.

     “PBGC” means the Pension Benefit Guaranty Corporation, established pursuant to Subtitle A of
Title IV of ERISA, and any successor thereto or to the functions thereof.

     “Permitted Acquisition” means any proposed Acquisition by the Borrower of any capital stock or
other equity interests in another business entity, or of any amount of the assets of another
business entity that complies with the following terms and conditions:

     (a) if acquiring a business entity, such business entity (together with any of its
direct and indirect Subsidiaries) must be (i) in the same general line of business as the
Borrower, and (ii) a corporation, limited liability company or partnership organized under
the laws of any one of the United States of America;

     (b) the aggregate purchase price for such Acquisition, including assumed debt earn-outs
(including any contingent milestone payments) and any non-cash purchase price consideration,
together with the aggregate consideration paid in connection with all Acquisitions and the
aggregate of all investments in Related Entities occurring during the twelve (12) months
immediately preceding such Acquisition, for which consent was not required, does not in the
aggregate exceed the Acquisition Limit;

     (c) after giving effect to such Acquisition and the incurrence of any Debt in
connection therewith, (i) no Default or Event of Default shall exist, (ii) the Borrower
shall be in compliance on a pro-forma basis with the financial covenants set forth in
Section 5.2 hereof recomputed for the most recently ended month for which information is
available regarding the business being acquired, and for all periods following the
consummation of the proposed Acquisition for which projections have been prepared,

8

 

based on the projected combined operating results of the targeted business and of the
Borrower and its then-existing Subsidiaries, each on a consolidated basis, and (iii) the
Borrower shall be in compliance with all other terms and conditions contained in this
Agreement;

     (d) for any Acquisition of capital stock or other equity interests of a Person,
Borrower shall cause such Person (together with, if applicable, any Subsidiary of Borrower
used to acquire such equity interest) to become a Guarantor hereunder by executing and
delivering a Guaranty, a Negative Pledge Agreement, and documents of the nature of those
described in Section 3.1(a)(iii) through (vii) for such Person, each in form and substance
acceptable to the Agent;

     (e) the acquired entity and or the assets acquired shall be acquired on a non-hostile
basis;

     (f) Borrower shall purchase, or purchase through a Subsidiary, the acquired assets of a
Person or with respect to the Acquisition of any equity interests, 100% of the outstanding
ownership interests of such acquired entity; and

     (g) as soon as available, but in any event not less than ten (10) Business Days prior
to the consummation of such proposed Acquisition, the Borrower shall have provided prior
written notice of such Acquisition to the Agent and upon request, shall promptly provide
Agent with true, correct and complete copies of all acquisition-related documents,
historical financial statements of any acquired entity, together with such other documents,
reports, searches, instruments and information as any Lender may request.

     “Permitted Liens” has the meaning given in Section 6.4 hereto.

     “Person” means any natural person, corporation, partnership, joint venture, firm, association,
trust, unincorporated organization, government or governmental agency or political subdivision or
any other entity, whether acting in an individual, fiduciary or other capacity.

     “Plan” means an employee benefit plan or other plan, including a Multiple Employer Plan,
maintained for employees of the Borrower or of any ERISA Affiliate, and subject to Title IV of
ERISA or Section 412 of the Code.

     “Prime Rate” means the prime rate announced by the Agent from time to time.

     “Pro Rata Share” means as to any Lender, the fraction (expressed as a percentage) the
numerator of which is such Lender’s Commitment, each as set forth on Schedule 1.1A hereto or an
executed Assignment Certificate, and the denominator of which is the sum of the aggregate Revolving
Loan Commitment, provided that if the Revolving Loan Commitment has been terminated, the numerator
shall be the unpaid amount of such Lender’s Loans plus the aggregate amount of all participations
purchased by such Lender in the outstanding Letter of Credit Obligations, and the denominator shall
be the aggregate amount of all unpaid Loans, plus the aggregate amount of all Letters of Credit
Obligations.

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     “Purchased In-Process Research and Development Expense” means the cost of research and
development activities, that when acquired through a merger, acquisition or other
business combination do not have an alternative future use (as determined under GAAP) and in
accordance with GAAP must therefore be expensed at the time of the consummation of the business
combination.

     “Quick Ratio” means for any period the aggregate of unrestricted cash, unrestricted Marketable
Securities (including any “available for sale” Marketable Securities classified as long term for
balance sheet purposes and the fair market value of any Marketable Securities classified as “held
to maturity” for balance sheet purposes) and net accounts receivable divided by total current
liabilities (including any non-current portion of revolving debt and any outstanding letters of
credit), as determined in accordance with GAAP.

     “Rate Contracts” means any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference to, one or more
rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions.

     “Related Entity” means any Person in which the Borrower or a Subsidiary has directly or
indirectly made an investment and such Person is not a Subsidiary.

     “Reportable Event” means, as to Borrower and each ERISA Affiliate, (i) a reportable event as
defined in Section 4043 of ERISA and the regulations issued under such Section, with respect to a
Plan, excluding, however, such events as to which the PBGC by regulation has waived the requirement
of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event,
provided that a failure to meet the minimum funding standard of Section 412 of the Code and Section
302 of ERISA shall be a reportable event regardless of the issuance of any such waivers in
accordance with Section 412(d) of the Code, (ii) the withdrawal of Borrower or any ERISA Affiliate
from a Plan in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA or
was deemed to be a “substantial employer” under Section 4062(e) of ERISA, (iii) the termination of
a Plan, the filing of notice of intent to terminate a Plan or the treatment of a Plan amendment as
a termination under Section 4041 of ERISA, (iv) the institution of proceedings to terminate a Plan
by the PBGC, (v) the partial or complete withdrawal from a Plan by Borrower or any ERISA Affiliate,
(vi) the imposition of a Lien on any property of Borrower or any ERISA Affiliate, pursuant to IRC
Section 412 or Section 302 of ERISA, (vi) any event or condition which results in the
reorganization or insolvency of a Plan, and (vii) any event or condition which results in the
termination of a Plan, or the institution by the PBGC of proceedings to terminate a Plan.

     “Required Lenders” means, (a) the Agent in its capacity as a Lender if, and only if, it is the
sole Lender under this Agreement, or (b) if there are two or more Lenders under this Agreement, any
two (2) or more unaffiliated Lenders holding: (i) more than fifty-one percent (51%) of the
Revolving Loan Commitment or (ii) if the Revolving Loan Commitment has been terminated, more than
fifty one percent (51%) of the sum of: (x) the aggregate outstanding principal of the Loans, plus
(y) the then aggregate undrawn face amount of all the then outstanding Letters of Credit. In each
case, at any time any Lender is a Defaulting Lender, all Defaulting Lenders shall be excluded in
determining “Required Lenders” and “Required
Lenders” shall mean non-Defaulting Lenders otherwise meeting the criteria set forth in this
definition.

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     “Revolving Credit Offered Increase Amount” has the meaning given in Section 2.1(a)(iii)A.

     “Revolving Credit Re-Allocation Date” has the meaning given in Section 2.1(a)(iii)D.

     “Revolving Loan Commitment” has the meaning given in Section 2.1(a).

     “Revolving Loan” has the meaning given in Section 2.1(a).

     “Revolving Note” or “Revolving Notes” has the meanings given in Section 2.4(a).

     “Stock” means any shares of capital stock (whether denominated as common stock or preferred
stock), equity interests, beneficial, partnership or membership interests, joint venture interests,
participations or other ownership or profit interests in or equivalents (regardless of how
designated) of or in a Person, whether voting or non-voting.

     “Subsidiary” means any Person of which or in which the Borrower and its other Subsidiaries own
directly or indirectly 50% or more of: (a) the combined voting power of all classes of Stock having
general voting power under ordinary circumstances to elect a majority of the board of directors of
such Person, if it is a corporation, (b) the capital interest or profit interest of such Person, if
it is a partnership, joint venture or similar entity, or (c) the beneficial interest of such
Person, if it is a trust, association or other unincorporated organization.

     “Termination Date” means the earliest of (a) March 1, 2011, (b) the date on which the
Revolving Loan Commitment is terminated by Borrower pursuant to Section 2.11 hereof, or (c) the
date on which the Revolving Loan Commitment is terminated by the Lender pursuant to Section 7.2
hereof.

     “Total Outstandings” means as of any date of determination, the sum of (a) the aggregate
unpaid principal balance of Advances outstanding on such date and (b) the Letter of Credit
Obligations.

     “Unpaid Drawing” means any amount by which the Borrower has failed to reimburse the Agent for
the full amount of any drawing on a Letter of Credit by 11:30 a.m. on the date on which the Agent
in its notice indicated that it would pay such drawing, until reimbursed from the proceeds of an
Advance pursuant to Section 2.1(b)(ii).

     “Unused Amount” means for any period, the Revolving Loan Commitment reduced by the average
Total Outstandings for such period.

     “Unused Commitment Fee Percentage” has the meaning given to it in Section 2.5(c).

     “Working Capital” means the excess of the Current Assets over the Current Liabilities of the
Borrower.

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     Section 1.2 Accounting Terms and Calculations. Except as may be expressly provided to the contrary herein, all accounting terms used herein
shall be interpreted and all accounting determinations hereunder (including, without limitation,
determination of compliance with financial ratios and restrictions in Article 5 and Article 6
hereof) shall be made in accordance with GAAP consistently applied. Any reference to
“consolidated”, “consolidating” and/or “combined” financial terms shall be deemed to refer to those
financial terms as applied to the Borrower and respective Subsidiaries in accordance with GAAP.

     Section 1.3 Computation of Time Periods. In this Agreement, in the computation of a period of time from a specified date to a later
specified date, unless otherwise stated the word “from” means “from and including” and the word
“to” or “until” each means “to but excluding.”

     Section 1.4 Other Definitional Terms. The words “hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement. References to Sections, Exhibits, schedules and like references are to this Agreement
unless otherwise expressly provided.

ARTICLE 2.

AMOUNT AND TERMS OF CREDIT FACILITIES

     Section 2.1 Revolving Loan and Letter of Credit Facilities.

          (a) Revolving Loan Facility. On the terms and subject to conditions hereof, each Lender severally agrees to make
revolving credit loans (“Revolving Loans”) to the Borrower from time to time from the date hereof
to the Termination Date in an aggregate principal amount at any one time outstanding which, when
added to such Lender’s Pro Rata Share of the Letter of Credit Obligations then outstanding, does
not exceed the amount of such Lender’s Commitment; provided, however, that no Advance will be made
in any amount and no Letter of Credit will be issued which, after giving effect thereto, would
cause the Total Outstandings to exceed an aggregate maximum for all Lenders of Twenty-Five Million
Dollars ($25,000,000) (as the same may be increased or reduced from time to time under the terms of
this Agreement, the “Revolving Loan Commitment”). During such period, the Borrower may use the
Commitments by borrowing, prepaying the Revolving Loans in whole or in part, and reborrowing, all
in accordance with the terms and conditions hereof.

               (i) Advance Options. The Revolving Loan shall be comprised of LIBOR Advances and Floating Rate Advances as shall
be specified by the Borrower in a borrowing request pursuant to Section 2.2 except as otherwise
provided herein. Once given, a LIBOR Advance request shall be irrevocable and Borrower shall be
bound thereby. During the continuance of a Default or Event of Default, the Borrower shall not be
permitted to obtain, continue or convert to a LIBOR Advance unless such Default or Event of Default
has first been cured. Both LIBOR Advances and Floating Rate Advances may be outstanding under the
Revolving Note at the same time. Each LIBOR Advance and Floating Rate Advance shall be in a
minimum amount of $500,000 or in an integral multiple of $250,000 above such amount. The Borrower
shall not have more than six (6) LIBOR Advances outstanding at any time.

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               (ii) Continuation or Conversion of Advances. The Borrower may elect to continue any outstanding LIBOR Advance from one Interest Period
into a subsequent Interest Period to begin on the last day of the earlier Interest Period, or
convert any outstanding Advance into any other type of Advance provided for in Section 2.1(a)(i)
above (on the last day of an Interest Period only, in the instance of a LIBOR Advance), by giving
the Agent notice in writing, or by telephone promptly confirmed in writing, given so as to be
received by the Agent not later than 1:00 P.M., Minneapolis time, on the date of the requested
continuation or conversion; provided, however, if the continuing or converting Advance shall be a
LIBOR Advance, Borrower shall give such notice to the Agent at least three (3) Business Days prior
to such continuation or conversion. Each notice of continuation or conversion of an Advance shall
specify (A) the effective date of the continuation or conversion date (which shall be a Business
Day), (B) the amount and the type or types of Advances following such continuation or conversion,
and (C) for continuation as, or conversion into LIBOR Advances, the Interest Periods for such
Advances. Absent timely notice of continuation or conversion, each LIBOR Advance shall
automatically convert into a Floating Rate Advance on the last day of an applicable Interest Period
for LIBOR Advances. No Advance shall be continued as, or converted into, a LIBOR Advance if the
shortest Interest Period for such Advance may not transpire prior to the Termination Date of the
Note or if a Default or Event of Default shall exist. Once given, a LIBOR Advance request shall be
irrevocable and Borrower shall be bound thereby.

               (iii) Increase to Revolving Loan Commitment.

               A. In the event that the Borrower wishes to increase the Revolving Loan Commitment at any time
when no Default or Event of Default has occurred and is continuing (or would result from such
increase), it shall notify the Agent in writing of the amount (the “Revolving Credit Offered
Increase Amount”) of such proposed increase (such notice, a “Commitment Increase Notice”) in a
minimum amount equal to $5,000,000 or a whole multiple of $5,000,000 in excess thereof. The
Borrower may offer the Revolving Credit Offered Increase Amount to (i) any Lender and/or (ii) other
banks, financial institutions or other entities with the consent of the Agent, such consent not to
be unreasonably withheld (“Approved New Lender Offerees”). The Commitment Increase Notice shall
(A) specify the Lenders and/or Approved New Lender Offerees that will be requested to provide such
Revolving Credit Offered
Increase Amount, (B) specify the proposed effective date and (C) be accompanied by a
certificate executed by one or more duly authorized officers of the Borrower stating that no
Default or Event of Default has occurred and is continuing (or would result from such increase).
The Borrower or, if requested by the Borrower, the Agent will notify such Lenders, and/or Approved
New Lender Offerees of such offer.

               B. Any Approved New Lender Offerees which the Borrower selects to offer a portion of the
increased Revolving Loan Commitment and which elects to become a party to this Agreement and obtain
a Commitment in an amount so offered and accepted by it pursuant to Section 2.1(a)(iii)A shall
execute a new lender supplement (the “New Lender Supplement”) with the Borrower and the Agent,
substantially in the form of Exhibit C, whereupon such Approved New Lender Offerees (herein called
a “New Revolving Credit Lender”) shall become a Lender for all purposes and to the same extent as
if originally a party hereto and shall be bound by and entitled to the benefits of this Agreement,
provided that the Commitment of any such New Revolving Credit Lender shall be in an amount not less
than $5,000,000 except with the prior written consent of Agent.

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               C. Any Lender which accepts an offer to it by the Borrower to increase its Commitment pursuant
to Section 2.1(a)(iii)A shall, in each case, execute a Commitment Increase Supplement (each a
“Commitment Increase Supplement”) with the Borrower and the Agent, substantially in the form of
Exhibit D, whereupon such Lender shall be bound by and entitled to the benefits of this Agreement
with respect to the full amount of its Commitment as so increased. No Lender shall have any
obligation, expressed or implied, to offer to increase the amount of its Commitment. Only the
consent of each Lender increasing its Commitment shall be required for an increase in the amount of
the Commitments pursuant to this Section 2.1(a)(iii). No Lender which elects not to increase the
amount of its Commitment may be replaced in respect of its existing Commitment as a result thereof
without such Lender’s consent. Subject to the limitations set forth above, the Borrower and the
Agent shall have discretion jointly to adjust the allocation of the increased aggregate principal
amount of the Commitments among Lenders increasing their Commitments and New Revolving Credit
Lenders.

               D. If any Approved New Lender Offeree becomes a New Revolving Credit Lender pursuant to
Section 2.1(a)(iii)B or any Lender’s Commitment is increased pursuant to Section 2.1(a)(iii)C,
additional Revolving Loans made on or after the effectiveness thereof (the “Revolving Credit
Re-Allocation Date”) shall be made pro rata based on the Pro Rata Shares in effect on and after
such Revolving Credit Re-Allocation Date (except to the extent that any such pro rata borrowings
would result in any Lender making an aggregate principal amount of Revolving Loans in excess of its
Commitment, in which case such excess amount will be allocated to, and made by, such New Revolving
Credit Lenders and/or Lenders with such increased Commitments to the extent of, and pro rata based
on, their respective Commitments otherwise available for Revolving Loans), and continuations of
LIBOR Advances outstanding on such Revolving Credit Re-Allocation Date shall be effected by
repayment of such LIBOR Advances on the last day of the Interest Period applicable thereto and the
making of new LIBOR Advances pro rata based on such new Pro Rata Shares. In the event that on any
such Revolving Credit Re-Allocation Date there is an unpaid principal amount of Floating Rate
Advances, the Borrower shall make prepayments thereof and borrowings of
Floating Rate Advances so that, after giving effect thereto, the Floating Rate Advances
outstanding are held pro rata based on such new Pro Rata Shares. In the event that on any such
Revolving Credit Re-Allocation Date there is an unpaid principal amount of LIBOR Advances, such
LIBOR Advances shall remain outstanding with the respective holders thereof until the expiration of
their respective Interest Periods (unless the Borrower elects to prepay any thereof in accordance
with the applicable provisions of this Agreement), and interest on and repayments of such LIBOR
Advances will be paid thereon to the respective Lenders holding such LIBOR Advances pro rata based
on the respective principal amounts thereof outstanding.

               E. Notwithstanding anything to the contrary in this Section 2.1(a)(iii), (1) no Lender shall
have any obligation to increase its Commitment unless it agrees to do so in its sole discretion and
(2) in no event shall any transaction effected pursuant to this Section 2.1(a)(iii) cause the
Revolving Loan Commitment to exceed Fifty Million Dollars ($50,000,000).

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               F. The Agent shall have received on or prior to the Revolving Credit Re-Allocation Date, for
the benefit of the Lenders, (1) certified copies of resolutions of the board of directors of the
Borrower authorizing the Borrower to borrow the Revolving Credit Offered Increase Amount and (2)
any other documents or instruments as may be requested by the Agent.

               G. Upon the Borrower’s compliance with the foregoing, Agent shall (1) record the information
related to such increase in the Register (as defined in Section 10.1(b) hereof) and replace
Schedule 1.1A; and (2) give prompt notice thereof to Borrower and Lenders.

          (b) Letter of Credit Facility.

               (i) Issuance Mechanics. In addition to Advances made pursuant to Section 2.1(a), the Revolving Loan Commitment may
be utilized, upon the request of Borrower, for the issuance of Letters of Credit for the account of
Borrower. The Agent may, upon receipt of duly executed Letter of Credit Applications and such
other documents, instruments and/or agreements as the Agent may require, issue Letters of Credit on
such terms as are satisfactory to the Agent; provided, however, that no Letter of Credit will be
issued if, before or after taking such Letter of Credit into account, the Letter of Credit
Obligations exceed the lesser of: (A) the Revolving Loan Commitment minus the total Advances
outstanding; or (B) Ten Million Dollars ($10,000,000) (the “Letter of Credit Facility”). The Letter
of Credit Facility is a sublimit of the Revolving Loan Commitment. Immediately upon the issuance by
Agent of a Letter of Credit, and without further action on the part of Agent or any of the Lenders,
each Lender shall be deemed to have purchased from Agent a participation in such Letter of Credit
(or in its obligation under a risk participation agreement with respect thereto) equal to such
Lender’s Pro Rata Share of the aggregate amount available to be drawn under such Letter of Credit.
Each request for a Letter of Credit shall be made by the Borrower in writing, by telefacsimile
transmission or electronic conveyance received by the Agent by 1:00 P.M., Minneapolis time, on. a
Business Day which is not less than one Business Day preceding the requested date of issuance
(which shall also be a
Business Day). Each request for a Letter of Credit shall be deemed a representation by the
Borrower that on the date of issuance of such Letter of Credit and after giving effect thereto the
applicable conditions specified in Article 3 have been and will be satisfied. The Agent may require
that such request be made on such letter of credit application and reimbursement agreement form as
the Agent may from time to time specify, along with satisfactory evidence of the authority and
incumbency of the officers of the Borrower making such request.

               (ii) Expiration Dates of Letters of Credit. Each Letter of Credit shall expire no later than the earlier of (x) the first anniversary
of its date of issuance and (y) the date (the “Collateralization Date”) which is fifteen (15)
Business Days prior to the Termination Date; provided that any Letter of Credit with a one-year
term may provide for the renewal thereof for additional one-year periods and may extend beyond the
Collateralization Date provided further that upon the occurrence of the Collateralization Date, the
Borrower shall have deposited cash with the Agent in the face amount of such Letter of Credit as
additional security therefor. The Agent may elect not to renew any such Letter of Credit and, upon
direction by the Required Lenders, shall not renew any such Letter of Credit, at any time during
the continuance

15

 

of an Event of Default, provided that, in the case of a direction by the Required
Lenders, the Agent receives such directions prior to the date notice of non-renewal is required to
be given by the Agent and the Agent has had a reasonable period of time to act on such notice.

               (iii) Reimbursement Obligation. The Borrower agrees to reimburse the Lenders on demand by Agent for each Unpaid Drawing.
Whenever any Unpaid Drawing exists, each Lender is authorized (and the Borrower does so authorize
the Lenders) to, and may in their sole discretion (but shall not be obligated to), make an Advance
to the Borrower in the amount equal to the amount of the Unpaid Drawing, even if the applicable
conditions precedent specified in Article 3 shall not have been satisfied. The Borrower further
agrees to pay interest on any Unpaid Drawing or any Advance made to pay an Unpaid Drawing at the
same rate as is applicable to Floating Rate Advances. If at such time as the Agent makes an Advance
pursuant to the provisions of this Section, the applicable conditions precedent specified in
Article 3 shall not have been satisfied, or if an Unpaid Drawing remains outstanding at a time when
a Default or Event of Default exists, the Borrower shall pay the Agent interest on the funds so
advanced or outstanding at the Default Rate applicable to Floating Rate Advances.

               (iv) Collateral. Notwithstanding anything to the contrary herein or in any Letter of Credit Application of
the Borrower, upon the occurrence of an Event of Default or upon the Termination Date, an amount
equal to the aggregate amount of Letter of Credit Obligations shall, upon the Agent’s demand, be
delivered to the Agent in cash or other collateral of a type satisfactory to the Agent having a
value, as determined by the Agent, equal to the aggregate amount of the Letter of Credit
Obligations. Any such collateral and/or cash received by the Agent pursuant to this paragraph (d)
shall be held by the Agent in a separate account appropriately designated as a collateral account
in relation to this Agreement and the Letters of
Credit and retained by the Agent as collateral security for the Letter of Credit Obligations.
Such amounts shall not be used by the Agent to pay any amounts drawn or paid under or pursuant to
any Letter of Credit but may be applied to reimburse the Agent or the Lenders, as applicable, for
drawings or payments under or pursuant to Letters of Credit which the Agent or Lenders have paid
or, if no such reimbursement is required, to payment of such other obligations as the Agent shall
determine. Following payment in full of all Obligations, any amounts remaining in any cash
collateral account established pursuant to this paragraph (d) which are not (as determined by the
Agent) to be applied to reimburse the Agent and/or the Lenders for amounts actually paid by Agent
in respect of a Letter of Credit shall be returned to the Borrower (after deduction of the Agent’s
expenses).

               (v) Obligations Absolute. The obligation of the Borrower to repay the Agent for any amount drawn on any Letter of
Credit and to repay the Agent and Lenders for any Advances made to cover Unpaid Drawings shall be
absolute, unconditional and irrevocable, shall continue for so long as any Letter of Credit is
outstanding notwithstanding any termination of this Agreement, and shall be paid strictly in
accordance with the terms of this Agreement, under all circumstances whatsoever, including without
limitation the following circumstances:

                    A. Any lack of validity or enforceability of any Letter of Credit;

16

 

                    B. The existence of any claim, setoff, defense or other right which the Borrower may have or
claim at any time against any beneficiary, transferee or holder of any Letter of Credit (or any
Person for whom any such beneficiary, transferee or holder may be acting), the Agent or any other
Person, whether in connection with a Letter of Credit, this Agreement, the transactions
contemplated hereby, or any unrelated transaction; or

                    C. Any statement or any other document presented under any 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 whatsoever.

Neither the Agent nor its officers, directors or employees shall be liable or responsible for, and
the obligations of the Borrower to the Agent and Lenders shall not be impaired by:

	 	(1)	 	The use which may be made of any Letter of Credit or for any
acts or omissions of any beneficiary, transferee or holder thereof in
connection therewith;
	 
	 	(2)	 	The validity, sufficiency or genuineness of documents, or of
any endorsements thereon, even if such documents or endorsements should, in
fact, prove to be in any or all respects invalid, insufficient, fraudulent or
forged;
	 
	 	(3)	 	The acceptance by the Agent of documents that appear on their
face to be in order, without responsibility for further investigation,
regardless of any notice or information to the contrary; or
	 
	 	(4)	 	Any other circumstances whatsoever in making or failing to make
payment under any Letter of Credit.

     Section 2.2 Procedure for Advances. Any request by the Borrower for an Advance hereunder shall be in writing, or by telephone
promptly confirmed in writing, and must be given so as to be received by the Agent not later than
1:00 P.M. (Minneapolis time) on the requested Advance Date provided, however, if the requested
Advance shall be a LIBOR Advance, Borrower shall give such notice to the Agent at least three (3)
Business Days prior to such continuation or conversion. Each request for an Advance hereunder shall
be irrevocable and shall be deemed a representation by the Borrower that on the requested Advance
Date and after giving effect to the requested Advance the applicable conditions specified in
Article 3 have been and will be satisfied. Each request for an Advance hereunder shall specify (a)
the requested Advance Date, and (b) the amount and type of the Advance. Without in any way limiting
the Borrower’s obligation to confirm in writing any telephone request for an Advance hereunder, the
Agent and each Lender may rely on any such request which it believes in good faith to be genuine;
and the Borrower hereby waives the right to dispute the Agent’s record of the terms of such
telephone request. Unless the Agent or any Lender determines that any applicable condition
specified in Article 3 has not been satisfied, the Agent and each Lender will make available to the
Borrower at the Agent’s principal office in Minneapolis, Minnesota in immediately available funds
not later than 3:00 P.M. (Minneapolis time) on the requested Advance Date its Pro Rata Share of the
amount of the requested Advance.

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     Section 2.3 Payments and Prepayments.

          (a) Payments. Payments and prepayments of principal of, and interest on, the Loans and all fees, expenses
and other Obligations under Loan Documents shall be made without setoff or counterclaim in
immediately available funds and shall be made in same day funds and delivered to Agent at its main
office in Minneapolis, Minnesota, for the benefit of Agent and Lenders, as applicable, not later
than 1:00 P.M. (Minneapolis time) on the dates called for under this Agreement and the Loan
Documents. Funds received after such time shall be deemed to have been received on the next
Business Day. Whenever any payment to be made hereunder or on the Notes shall be stated to be due
on a day which is not a Business Day, such payment shall be made on the next succeeding Business
Day and such extension of time, in the case of a payment of principal, shall be included in the
computation of any interest on such principal payment. Borrower hereby authorizes Lenders to make
Revolving Loans, on the basis of their Pro Rata Shares, for the payment of interest, costs,
facility fees, Letter of Credit fees, funding losses or indemnification obligations under Section
2.7 and Section 2.8 hereof, and Letter of Credit reimbursement obligations. Prior to an Event of
Default, other fees, costs and expenses (including those of attorneys) reimbursable to Agent
pursuant to Section 11.2 or elsewhere in any Loan Document may be debited to the Revolving Loan
after fifteen (15) days notice to Borrower. After the occurrence of an Event of Default, no notice
will be required.

               (i) Revolving Loan. The unpaid principal of the Revolving Notes, together with all accrued and unpaid interest
thereon and all other Obligations shall be due and payable on the Termination Date.

               (ii) Mandatory Prepayments. The Borrower agrees that the Obligations shall be subject to mandatory prepayment if (A) on
any day the Total Outstandings exceeds the Revolving Loan Commitment, and (B) on any day a Lender’s
Pro Rata Share of the Total Outstandings exceeds its Commitment. Borrower agrees that on any such
day, the Borrower shall make a prepayment to the extent of such excess.

               (iii) Optional Prepayments. The Borrower may prepay Advances, in whole or in part, at any time, without premium or
penalty, but subject to the payment of any funding losses payable by Borrower under Section 2.7
hereof and provided further that with respect to the prepayment of any LIBOR Advance during an
Interest Period on two (2) Business Days’ advance written notice. Any such prepayment must be
accompanied by accrued and unpaid interest on the amount prepaid. Each partial prepayment shall be
in a minimum amount of $500,000 or in an integral multiple of $250,000 above such amount. Amounts
paid (unless following an acceleration or upon termination of the Revolving Loan Commitment in
whole) or prepaid on Advances under this Section 2.3 may be re-borrowed upon the terms and subject
to the conditions and limitations of this Agreement.

               (iv) Application of Payments. With respect to the prepayments described in Section 2.3(a)(ii) and (iii), such prepayments
shall first be applied to the payment of all outstanding fees, costs and expenses payable by
Borrower, then such prepayments shall be applied, pro rata, to reduce the outstanding principal
balance of the Revolving Loans. Considering each type of Loan being prepaid separately, any such
prepayment shall be applied first to Floating Rate Advances of the type required to be prepaid
before application to LIBOR

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Advances, in each case in a manner which minimizes any resulting
funding losses under Section 2.7. During the continuance of an Event of Default, Borrower
irrevocably waives the right to direct the application of any and all payments and Borrower hereby
irrevocably agrees that each Lender shall have the continuing exclusive right to thereafter apply
payments in any manner it deems appropriate.

               (v) No Deductions. Any and all payments or reimbursements made hereunder or under the Notes shall be made free
and clear of and without deduction for any and all taxes, levies, imposts, deductions, charges or
withholdings, and all liabilities with respect thereto of any nature whatsoever imposed by any
taxing authority, excluding such taxes to the extent imposed on Agent’s or a Lender’s net income by
the jurisdiction in which Agent or such Lender is organized. If Borrower shall be required by law
to deduct any such amounts from or in respect of any sum
payable hereunder to any Lender or Agent, then the sum payable hereunder shall be increased as
may be necessary so that, after making all required deductions, such Lender or Agent receives an
amount equal to the sum it would have received had no such deductions been made.

     Section 2.4 Notes.

          (a) Revolving Notes. The Borrower agrees that, upon the request to the Agent by any Lender, the Borrower will
promptly execute and deliver to such Lender a revolving promissory note (as such promissory note
may be amended, modified or supplemented from time to time, and including any substitutions for, or
renewals of, such promissory note, individually, a “Revolving Note” and collectively for all
Lenders, the “Revolving Notes”) of the Borrower evidencing any Revolving Loans of such Lender,
substantially in the form of Exhibit A, with appropriate insertions as to date and principal
amount. Each Note shall bear interest at an annual rate determined pursuant to Section 2.5.

     Section 2.5 Interest. Borrower shall pay to Agent interest on the outstanding principal balance of each Note at
one or more of the rates specified below. Unless the Borrower specifies otherwise, the principal
balance of each Advance outstanding under the Revolving Notes shall bear interest at the Floating
Rate.

          (a) LIBOR Advances. The unpaid principal amount of each LIBOR Advance shall bear interest prior to maturity at a
rate per annum equal to the LIBOR Rate in effect for each Interest Period for such LIBOR Advances
plus the applicable Margin pursuant to Section 2.5(c) below.

          (b) Floating Rate Advances. The unpaid principal amount of each Floating Rate Advance shall bear interest prior to maturity
at a rate per annum equal to the Floating Rate.

          (c) Margins/Letter of Credit Fee/Unused Commitment Fee Percentage. The “Margins,” “Letter of Credit Fee” and
"Unused Commitment Fee Percentage” through and
including the first adjustment occurring as specified below shall be 1.50% for Floating Rate
Advances, LIBOR Advances, and Letters of Credit and 0.250% for the Unused Commitment Fee
Percentage. Commencing on the third Business Day after the Borrower delivers financial statements
pursuant to Section 5.1, for each fiscal quarter (each a “Margin/Fee Adjustment

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Date”), the
Margins, the Letter of Credit Fee and Unused Commitment Fee Percentage shall be adjusted, on the
basis of the ratio of Borrower’s Funded Debt to EBITDA (as calculated at the end of the previous
calendar quarter in accordance with Section 5.2(a)), in accordance with the following table,
provided however that the Margin accruing on then existing LIBOR Advances shall not be adjusted.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LIBOR Advances and	 	 	 	 
	Funded Debt to	 	Floating Rate	 	Letter of Credit	 	Unused Commitment
	EBITDA	 	Advances	 	Fees	 	Fee Percentage
	< 0.75
	 	 	1.50	%	 	 	1.50	%	 	 	0.250	%
	> 0.75 < 1.25
	 	 	1.75	%	 	 	1.75	%	 	 	0.375	%
	> 1.25
	 	 	2.00	%	 	 	2.00	%	 	 	0.500	%

Notwithstanding the foregoing, no reduction in the Margins will be made if a Default or an Event of
Default exists at the time that such reduction would otherwise be made. If Borrower fails to
deliver its financial statements in accordance with Section 5.1, the Margins and fees due under
this Section 2.5(c) shall adjust to the highest ratio set forth in the table above beginning on the
date that delivery of such financial statement was due under Section 5.1 below.

          (d) Computation and Payment of Interest. All interest provided for under this Agreement shall
be computed on the basis of actual days
elapsed and a year of 360 days. The date of funding a Floating Rate Advance and the first day of an
Interest Period with respect to a LIBOR Advance shall be included in the calculation of interest.
The date of payment of a Floating Rate Advance and the last day of an Interest Period with respect
to a LIBOR Advance shall be excluded from the calculation of interest. If a Loan is repaid on the
same day that it is made, one (1) days’ interest shall be charged. Interest on all Floating Rate
Advances is payable in arrears on the first day of each month and on the maturity of such Loans,
whether by acceleration or otherwise. Interest on LIBOR Advances shall be payable on the last day
of the applicable Interest Period, unless the Interest Period is greater than three (3) months, in
which case interest will be payable on the last day of each three (3) month interval. In addition,
interest on LIBOR Advances is due on the maturity of such Loans, whether by acceleration or
otherwise.

          (e) Default Rate. Upon the occurrence of any Event of Default, each Advance shall, at the option of the Agent
(or, in the case of an Event of Default under Section 7.1(f), (g) or (h), automatically upon the
occurrence of such Event of Default), bear interest until paid in full at the rate otherwise
applicable thereto plus 2.0% (the “Default Rate”).

          (f) Inability to Determine LIBOR. In the event, prior to commencement of any Interest Period relating to a LIBOR Advance or
outstanding Floating Rate Advances are based on a LIBOR Base Rate, Agent shall determine or be
notified in writing by Required Lenders that adequate and reasonable methods do not exist for
ascertaining LIBOR Base Rate, Agent shall promptly provide notice of such determination to Borrower
and Lenders (which shall be conclusive and binding on Borrower and Lenders). In such event, (1)
any request for a LIBOR Advance or for a conversion to or continuation of a LIBOR Advance shall be
automatically withdrawn and shall be deemed a request for a Floating Rate Advance, (2) each LIBOR
Advance will automatically, on the last day of the then current Interest Period relating

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thereto, become a Floating Rate Advance, (3) all
outstanding Floating Rate Advances (including Advances converted under (1) and (2) above,
shall automatically become Floating Rate Advances based upon the Prime Rate, and (4) the
obligations of Lenders to make LIBOR Advances (or Floating Rate Advances based upon a LIBOR Base
Rate) shall be suspended until Agent or Required Lenders determine that the circumstances giving
rise to such suspension no longer exist, in which event Agent upon the instructions of Required
Lenders, shall so notify Borrower and Lenders.

          (g) Illegality. Notwithstanding any other provisions hereof, if any law, rule, regulation, treaty or
directive or interpretation or application thereof shall make it unlawful for any Lender to make,
fund or maintain LIBOR Advances, or make Floating Rate Advances based upon the LIBOR Base Rate such
Lender shall promptly give notice of such circumstances to Agent, Borrower and the other Lenders.
In such an event, (1) the commitment of such Lender to make LIBOR Advances, make Floating Rate
Advances based upon the LIBOR Base Rate, or convert Floating Rate Advances to LIBOR Advances shall
be immediately suspended and (2) such Lender’s outstanding LIBOR Advances and Floating Rate
Advances based upon the LIBOR Base Rate shall be converted automatically to Floating Rate Advances
based upon the Prime Rate on the last day of the Interest Period thereof or at such earlier time as
may be required by law.

     Section 2.6 Fees and Expenses.

          (a) Unused Commitment Fee. The Borrower agrees to pay to the Lender a Unused Commitment Fee equal to the Unused Amount
multiplied by the applicable Unused Commitment Fee Percentage set forth in Section 2.5(c) above,
from the date of this Agreement to and including the Termination Date, due and payable quarterly in
arrears on the last day of each quarter, commencing March 31, 2009 and on the Termination Date;
such fee shall be prorated for any partial period.

          (b) Agent Fees. Borrower shall pay to Agent, for Agent’s own account, such Agent’s fee as may be required
in any Agent’s Fee Letter as may be agreed to by Borrower and Agent from time to time.

          (c) Letter of Credit Fee. For each Letter of Credit issued, the Borrower shall pay to the Agent an issuance fee equal
to the Agent’s then current rate, payable on the date of issuance of the Letter of Credit. The
Borrower shall further pay to the Agent, for the account of the Lenders, a fee in an amount
determined by applying a per annum rate equal to the Letter of Credit Fee Percentage set forth in
Section 2.5(c) to the original face amount of the Letter of Credit for each month that such Letter
of Credit is outstanding, which fee shall be due and payable monthly in arrears on the last day of
each month, and on the Termination Date. In addition to the foregoing fees, the Borrower shall
pay to the Agent, on demand, all issuance, amendment, drawing and other fees regularly charged
by the Agent to its letter of credit customers and all out-of-pocket expenses incurred by the Agent
in connection with the issuance, amendment, administration or payment of any Letter of Credit.

21

 

          (d) Expenses and Attorneys Fees. Borrower agrees to promptly pay all fees, costs and expenses (including reasonable fees,
charges and disbursements of legal counsel for Agent) incurred by Agent in connection with any
matters contemplated by or arising out of the Loan Documents, in connection with the examination,
review, due diligence investigation, documentation, negotiation, closing and syndication of the
transactions contemplated herein and in connection with the continued administration of the Loan
Documents including any amendments, modifications, consents and waivers. Borrower agrees to
promptly pay all fees, costs and expenses (including reasonable fees, charges and disbursements of
legal counsel for Agent and Lenders) incurred by Agent and Lenders in connection with any action to
enforce any Loan Document or to collect any payments due from Borrower or any other Loan Party.
All fees, costs and expenses for which Borrower is responsible under this Section 2.6(d) shall be
deemed part of the Obligations when incurred. Agent agrees to limit the fees of legal counsel to
be paid by Borrower in conjunction with the initial preparation of this Agreement and the other
Loan Documents at an amount not to exceed $25,000, plus out-of-pocket expenses if, and only if, the
transactions contemplated herein close by February 27, 2009. Borrower understands that all costs
incurred on or after March 1, 2009 shall not be subject to the foregoing limitation.

     Section 2.7 Funding Losses. The Borrower will indemnify Agent and each Lender upon written request of such party (which
request shall set forth the basis for requesting such amounts) against any loss or expense which
the Agent or Lender may sustain or incur (including, without limitation, any loss or expense
sustained or incurred in obtaining, liquidating or employing deposits or other funds acquired to
effect, fund, or maintain any Advance) as a consequence of (i) any failure of the Borrower to make
any payment when due of any amount due hereunder or under the Note, (ii) any failure of the
Borrower to borrow, continue or convert an Advance on a date specified therefor in a notice
thereof, or (iii) any payment, prepayment or conversion of any LIBOR Advance on a date other than
the last day of the Interest Period for such Advance. Determinations by the Agent for purposes of
this Section 2.7 of the amount required to indemnify the Lenders shall be conclusive in the absence
of manifest error. A certificate as to any such loss or expense (including calculations, in
reasonable detail, showing how such Lender computed such loss or expense and showing any other
compensation which such Lender may have received or be entitled to receive for such loss or
expense, if any, and showing any mitigation of such loss or expense by such Lender, if any) shall
be promptly submitted by such Lender to the Borrower and shall, in the absence of manifest error,
be conclusive and binding as to the amount thereof. Such loss or expense may be computed as though
such Lender acquired deposits in the London interbank market to fund the LIBOR Advances, whether or
not the Lender in fact did so.

     Section 2.8 Increased Costs. If at any time, as a result of any change in or the adoption of any law, rule, regulation,
treaty or directive, or any change in the interpretation or administration thereof, or compliance
by Agent or any Lender with any request or directive (whether or not having the force of law) from
any court, central bank, governmental authority, agency or instrumentality, or comparable agency:

          (a) any tax, duty or other charge with respect to any Loan, the Notes or the Revolving Loan
Commitment is imposed, modified or deemed applicable, or the basis of taxation of payments to any
Lender of interest or principal of the Loans or of any fees payable to the Agent or a Lender
hereunder (other than taxes imposed on the overall net income of a Lender) is changed;

22

 

          (b) any reserve, special deposit, special assessment or similar requirement against assets of,
deposits with or for the account of, or credit extended by, a Lender is imposed, modified or deemed
applicable;

          (c) any increase in the amount of capital required or expected to be maintained by a Lender or
any Person controlling a Lender is imposed, modified or deemed applicable; or

          (d) any other condition affecting this Agreement or the Revolving Loan Commitment is imposed
on a Lender or the relevant funding markets;

and the Lender determines that, by reason thereof, the cost to the Lender of making or maintaining
the Loans, issuing the Letters of Credit or maintaining the Revolving Loan Commitment is increased,
or the amount of any sum receivable by the Lender hereunder or under the Notes in respect of any
Loan is reduced; then, the Borrower shall pay to the Agent for the account of the Lender upon
demand such additional amount or amounts as will compensate the Lender (or the controlling Person
in the instance of (c) above) for such additional costs or reduction (provided that the Lender has
not been compensated for such additional cost or reduction in the calculation of the LIBOR Rate).
A certificate as to any additional amounts payable pursuant to this Section 2.8 submitted by any
Lender to Borrower (with a copy to Agent) of the additional amounts required to compensate the
Lender shall be conclusive in the absence of manifest error. In determining such amounts, the
Lender may use any reasonable averaging, attribution and allocation methods.

     Section 2.9 Discretion of Lenders as to Manner of Funding. Notwithstanding any provision of this Agreement to the contrary, each Lender shall be
entitled to fund and maintain its funding of all or any part of the Loans in any manner it elects;
it being understood, however, that for purposes of this Agreement, all determinations hereunder
shall be made as if the Lender had actually funded and maintained each LIBOR Advance during the
Interest Period for such Advance through the purchase of deposits having a term corresponding to
such Interest Period and bearing an interest rate equal to the LIBOR Rate for such Interest Period
(whether or not the Lender shall have granted any participations in such Advances).

     Section 2.10 Optional Prepayment/Replacement of Lenders. Within fifteen (15) days
after receipt by Borrower of written notice and demand from any
Lender for payment pursuant to Section 2.8 or, as provided in Section 8.9(c), in the case of
certain refusals by any Lender to consent to certain proposed amendments, modifications,
terminations or waivers with respect to this Agreement that have been approved by Required Lenders
(any such Lender demanding such payment or refusing to so consent being referred to herein as an
“Affected Lender”), Borrower may, at its option, notify Agent and such Affected Lender of its
intention to do one of the following:

     (a) Borrower may obtain, at Borrower’s expense, a replacement Lender (“Replacement Lender”)
for such Affected Lender, which Replacement Lender shall be reasonably satisfactory to Agent. In
the event Borrower obtains a Replacement Lender that will purchase all outstanding Obligations owed
to such Affected Lender and assume its commitments hereunder (and under any participations sold by
such Affected Lender pursuant to Section 10.2

23

 

hereof) within ninety (90) days following notice of
Borrower’s intention to do so, the Affected Lender shall sell and assign all of its rights and
delegate all of its obligations under this Agreement to such Replacement Lender in accordance with
the provisions of Section 10.1, provided that Borrower has reimbursed such Affected Lender for any
administrative fee payable pursuant to Section 10.1 and, in any case where such replacement occurs
as the result of a demand for payment pursuant to Section 2.8, paid all amounts required to be paid
to such Affected Lender pursuant to Section 2.8 through the date of such sale and assignment; or

     (b) Borrower may prepay in full all outstanding Obligations owed to such Affected Lender and
terminate such Affected Lender’s Commitment, in which case the Revolving Loan Commitment will be
reduced by the amount thereof. Borrower shall, within ninety (90) days following notice of its
intention to do so, prepay in full all outstanding Obligations owed to such Affected Lender
(including, in any case where such prepayment occurs as the result of a demand for payment for
increased costs, such Affected Lender’s increased costs for which it is entitled to reimbursement
under this Agreement through the date of such prepayment), and terminate such Affected Lender’s
obligations under the Revolving Loan Commitment.

     Section 2.11 Termination of Revolving Loan Commitment. The Borrower may,
at any time, upon not less than three (3) Business Days prior written
notice to the Agent, reduce the Revolving Loan Commitment, with any such reduction in a minimum
amount of $5,000,000, or, if more, in an integral multiple of thereof; provided, however, that the
Borrower may not at any time reduce the Revolving Loan Commitment below the Total Outstandings. The
Borrower may, at any time, upon not less than three (3) Business Days prior written notice to the
Agent, terminate the Revolving Loan Commitment (including, without limitation, each Lender’s
Commitment thereunder) in its entirety. Upon termination of the Revolving Loan Commitment pursuant
to this Section, the Borrower shall pay to the Agent the full amount of all outstanding Advances
under the Loans, all accrued and unpaid interest thereon, all unpaid fees, if any, accrued to the
date of such termination, and all other unpaid Obligations to the Agent and Lenders under the Loan
Documents.

     Section 2.12 Use of Revolving Loan Proceeds. The proceeds of the Advances shall be used for the Borrower’s general business purposes in a
manner not in conflict with any of the Borrower’s covenants in this Agreement.

     Section 2.13 Maturity. All of the Obligations shall become due and payable as set forth herein, but in any event
all of the remaining Obligations shall become due and payable upon termination of this Agreement.
Until all Obligations have been fully paid and satisfied (other than contingent indemnification
obligations to the extent no unsatisfied claim has been asserted), the Revolving Loan Commitment
(including, without limitation, each Lender’s Commitment thereunder) has been terminated and all
Letters of Credit have been terminated or otherwise secured to the satisfaction of Agent, Agent
shall be entitled to retain the security interests or liens in the collateral, if any, granted
under the Loan Documents and the ability to exercise all rights and remedies available to them
under the Loan Documents and applicable laws.

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     Section 2.14 USA Patriot Act Notice. The Agent and each Lender hereby notify the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001; the “Act”),
they are required to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information that will allow the
Agent and such Lender to identify the Borrower in accordance with the Act.

ARTICLE 3.

CONDITIONS PRECEDENT

     Section 3.1 Conditions of Initial Advances. The making of the initial Advance on any
of the Loans, or issuance of any initial Letter of
Credit hereunder, shall be subject to the prior or simultaneous fulfillment of the following
conditions, each in form and substance acceptable to Agent:.

          (a) Documents. The Agent shall have received an executed copy of this Agreement, together with each of the
following:

          (i) A Revolving Note payable to each Lender requesting such a note in the principal
amount of its Commitment and duly executed by the Borrower.

          (ii) A Guaranty executed by each Guarantor.

          (iii) Certificates of good standing or existence with respect to the Borrower and each
Subsidiary, issued as of a recent date by the Secretary of State of the Borrower’s or
respective Subsidiary’s state of organization.

          (iv) A copy of the Articles of Incorporation of the Borrower and each Subsidiary with
all amendments thereto, certified by the appropriate governmental official of the
jurisdiction of its incorporation as of a date not more than 15 days prior to the date
hereof.

          (v) A copy of the bylaws of the Borrower and each Subsidiary, certified as of the date
hereof by the Secretary or an Assistant Secretary of the Borrower, as applicable.

          (vi) A copy of the corporate resolution of the Borrower and each Subsidiary duly
authorizing the execution, delivery and performance of the Loan Documents, certified by the
Secretary or an Assistant Secretary of the Borrower or such Subsidiary, as applicable.

          (vii) An incumbency certificate of the Borrower and each Subsidiary showing the names
and titles, and bearing the signatures of, the officers of the Borrower or such Subsidiary
authorized, in the case of the Borrower, to execute the Loan Documents and in the case of
each Subsidiary, to execute its respective Guaranty, certified by the Secretary or an
Assistant Secretary of the Borrower or such Subsidiary, as applicable.

          (viii) The Negative Pledge Agreement executed by Borrower and each Subsidiary.

25

 

          (ix) UCC/Tax Lien Searches confirming no liens other than Permitted Liens.

          (b) Compliance. The Borrower shall have performed and complied with all agreements, terms and conditions
contained in this Agreement required to be performed or complied with by the Borrower prior to or
simultaneously with the date hereof.

          (c) Other Matters. All corporate and legal proceedings relating to the Borrower and all instruments and
agreements in connection with the transactions contemplated by this Agreement shall be satisfactory
in scope, form and substance to the Agent and its counsel, and the Agent shall have received all
information and copies of all documents, including records of corporate proceedings, as the Agent
or its counsel may reasonably have requested in connection therewith, such documents where
appropriate to be certified by proper corporate or governmental authorities.

          (d) Fees and Expenses. The Agent shall have received all fees and other amounts due and payable by the Borrower on
or prior to date hereof.

     Section 3.2 Conditions Precedent to all Advances. The obligation of the Agent to make any Advances hereunder (including the initial advances
on the Loans) or to issue any Letter of Credit hereunder shall be subject to the fulfillment of the
following conditions:

          (a) Representations and Warranties. The representations and warranties contained in Article 4 shall be true and correct on and
as of the date hereof and on the date of each Advance, with the same force and effect as if made on
such date.

          (b) No Default. No Default or Event of Default shall have occurred and be continuing as of the date hereof
and on the date of each Advance or will exist after giving effect to the Advance.

          (c) Notices and Requests. The Agent shall have received the Borrower’s request for such advance as required under
Section 2.2.

          (d) Additional Documents. The execution and delivery to Agent and/or the Lenders of all other documents and instruments as
may be required under the terms of this Agreement as a condition to such Advance or Letter of
Credit, including, if applicable, all documents required by Section 5.11 hereof, or under any other
Loan Documents.

ARTICLE 4.

REPRESENTATIONS AND WARRANTIES

     To induce the Agent to enter into this Agreement and to make Loans and issue Letters of Credit
hereunder, the Borrower represents and warrants to the Agent:

     Section 4.1 Organization, Standing, Etc. The Borrower and each of its Subsidiaries are entities duly organized and validly existing
and in good standing under the laws of the jurisdiction of their respective organization and have
all requisite corporate power and authority to carry on their respective businesses as now
conducted, and to enter into the Loan Documents

26

 

and to issue the Notes and to perform its
respective obligations under the Loan Documents. The Borrower and each of its Subsidiaries are duly
qualified and in good standing as a foreign corporation or other entity, as applicable, in each
jurisdiction in which the character of the properties owned, leased or operated by it or the
business conducted by it makes such qualification necessary.

     Section 4.2 Authorization and Validity. The execution, delivery and performance by the Borrower and each of its Subsidiaries of the
Loan Documents to which it is a party has been duly authorized by all necessary corporate,
company or other legal action of such entity and constitute the legal, valid and binding
obligations of the Borrower and/or its Subsidiaries to the extent a party thereto, enforceable in
accordance with their respective terms, subject to limitations as to enforceability which might
result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors’ rights
generally and subject to limitations on the availability of equitable remedies.

     Section 4.3 No Conflict; No Default. The execution, delivery and performance by the Borrower and its Subsidiaries of the Loan
Documents to which it is a party will not (a) violate any provision of any law, statute, rule or
regulation or any order, writ, judgment, injunction, decree, determination or award of any court,
governmental agency or arbitrator presently in effect having applicability to the Borrower and/or
its Subsidiares, (b) violate or contravene any provisions of the Articles (or Certificate) of
Incorporation, by-laws or other organizational of the Borrower and/or its Subsidiaries, or (c)
result in a breach of or constitute a default under any indenture, loan or credit agreement or any
other agreement, lease or instrument to which the Borrower and/or its Subsidiaries is a party or by
which it or any of its properties may be bound or result in the creation of any Lien on any asset
of the Borrower or any Subsidiary. Neither the Borrower nor any Subsidiary is in default under or
in violation of any such law, statute, rule or regulation, order, writ, judgment, injunction,
decree, determination or award or any such indenture, loan or credit agreement or other agreement,
lease or instrument in any case in which the consequences of such default or violation could
constitute a Material Adverse Effect. No Default or Event of Default has occurred and is
continuing.

     Section 4.4 Government Consent. No order, consent, approval, license, authorization or validation of, or filing, recording
or registration with, or exemption by, any governmental or public body or authority is required on
the part of the Borrower or any Subsidiary to authorize, or is required in connection with the
execution, delivery and performance of, or the legality, validity, binding effect or enforceability
of, the Loan Documents.

     Section 4.5 Financial Statements/Disclosure/Solvency.

     (a) The Borrower’s audited, consolidated financial statements as of September 30, 2008, and
its company prepared consolidated financial statements as of December 31, 2008, as heretofore
furnished to the Agent, have been prepared on a consistent basis and (in the case of the audited
financial statements) in accordance with GAAP and fairly present the financial condition of the
Borrower, and its respective Subsidiaries as at such dates and the results of their operations and
changes in financial position for the respective periods then ended. As of the dates of such
financial statements, neither the Borrower nor any Subsidiary had any material obligation,
contingent liability, liability for taxes or long-term lease obligation which is not reflected in
such financial statements or in the notes thereto. Since September 30, 2008, no Material Adverse
Effect has occurred.

27

 

     (b) No representation or warranty of Borrower or any Subsidiary contained in the Loan
Documents, the financial statements referred to above or any other document, certificate or written
statement furnished to Agent or any Lender by or on behalf of any such Person for use in connection
with the Loan Documents contains any untrue statement of a material fact or omitted, omits or will
omit to state a material fact necessary in order to make the statements contained herein or therein
not misleading in light of the circumstances in which the same were made.

     (c) Borrower and each of its Subsidiaries: (a) owns and will own assets the fair saleable
value of which are (i) greater than the total amount of its liabilities (including contingent
liabilities) and (ii) greater than the amount that will be required to pay the probable liabilities
of its then existing debts as they become absolute and matured considering all financing
alternatives and potential asset sales reasonably available to it; (b) has capital that is not
unreasonably small in relation to its business as presently conducted or after giving effect to any
contemplated transaction; and (c) does not intend to incur and does not believe that it will incur
debts beyond its ability to pay such debts as they become due.

     Section 4.6 Litigation and Contingent Liabilities. Except as described in Schedule 4.6, there are no actions, suits or proceedings pending or,
to the knowledge of the Borrower, threatened against or affecting the Borrower or any Subsidiary or
any of their properties before any court or arbitrator, or any governmental department, board,
agency or other instrumentality which, if determined adversely to the Borrower or such Subsidiary,
could constitute a Material Adverse Effect. Except as described in Schedule 4.6, neither the
Borrower nor any Subsidiary has any Contingent Debt that is material to the Borrower or its
Subsidiaries as a consolidated enterprise.

     Section 4.7 Compliance. The Borrower and its Subsidiaries are in material compliance with all statutes and
governmental rules and regulations applicable to them.

     Section 4.8 Environmental, Health and Safety Laws. Except as described in Schedule 4.8, there does not exist any violation by the Borrower or
any Subsidiary of any applicable federal, state or local law, rule or regulation or order of any
government, governmental department, board, agency or other instrumentality relating to
environmental, pollution, health or safety matters which will or threatens to impose a material
liability on the Borrower or a Subsidiary or which would require a material expenditure by the
Borrower or such Subsidiary to cure. Except as described in Schedule 4.8, neither the Borrower nor
any Subsidiary has received any notice to the effect that any part of its operations or properties
is not in material compliance with any such law, rule, regulation or order or notice that it, or
its property is the subject of any governmental investigation evaluating whether any remedial
action is needed to respond to any release of any toxic or hazardous waste or substance into the
environment, the consequences of which non-compliance or remedial action could constitute a
Material Adverse Effect.

28

 

     Section 4.9 ERISA. Each Plan complies with all material applicable requirements of ERISA and the Code and with
all material applicable rulings and regulations issued under the provisions of ERISA and the Code
setting forth those requirements. No Reportable Event, other than a Reportable Event for which the
reporting requirements have been waived by regulations of the PBGC, has occurred and is continuing
with respect to any Plan. All of the minimum funding standards applicable to such Plans have been
satisfied and there exists no event or condition which would permit the institution of proceedings
to terminate any Plan under Section 4042 of ERISA. The current value of the Plans’ benefits
guaranteed under Title IV or ERISA does not exceed the current value of the Plans’ assets allocable
to such benefits.

     Section 4.10 Regulation U. Neither the Borrower, nor any of its Subsidiaries, is engaged in the business of extending
credit for the purpose of purchasing or carrying margin stock (as defined in Regulation U of the
Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan will be
used to purchase or carry margin stock or for any other purpose which would violate any of the
margin requirements of the Board of Governors of the Federal Reserve System.

     Section 4.11 Ownership of Property; Liens. Each of the Borrower and its Subsidiaries, if any, has good and marketable title to its real
properties and good and sufficient title to its other properties, including all properties and
assets referred to as owned by the Borrower and its Subsidiaries in the financial statements of the
Borrower referred to in Section 4.5 (other than property disposed of since the date of such
financial statement in the ordinary course of business). None of the properties, revenues or
assets of the Borrower or any of the Subsidiaries is subject to a Lien, except for (a) Liens
disclosed in the financial statements referred to in Section 4.5, or (b) Liens allowed under
Section 6.3.

     Section 4.12 Taxes. Each of the Borrower and its Subsidiaries has filed all federal, state and local tax returns
required to be filed and has paid or made provision for the payment of all taxes due and payable
pursuant to such returns and pursuant to any assessments made against it or any of its property and
all other taxes, fees and other charges imposed on it or any of its property by any governmental
authority (other than taxes, fees or charges the amount or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which reserves in accordance
with GAAP have been provided on the books of the Borrower and its Subsidiaries). No tax Liens have
been filed and no material claims are being asserted with respect to any such taxes, fees or
charges. The charges, accruals and reserves on the books of the Borrower in respect of taxes and
other governmental charges are adequate.

     Section 4.13 Intellectual Property. Borrower and each Subsidiary thereof own or are licensed or otherwise have the right to use
all of the patents, trademarks, service marks, trade names, copyrights, contractual franchises,
authorizations and other rights that are, to Borrower’s knowledge (after due inquiry and
investigation) reasonably necessary for the operation of their respective businesses, except
as set forth on Schedule 4.13. To Borrower’s knowledge (after due inquiry and investigation), (i)
the use of such intellectual property by Borrower and its Subsidiaries and the operation of their
respective businesses do not infringe any valid and enforceable intellectual property rights of any
other Person, and (ii) no slogan or other advertising device, product, process, method, substance,
part or other material now employed, or now contemplated to be employed, by Borrower or any
Subsidiary thereof infringes upon any rights held by any other Person. Except as specifically
disclosed on Schedule 4.6, no claim or litigation regarding any of the foregoing is pending or
threatened, and no patent, invention,

29

 

device, application, principle or any statute, law, rule,
regulation, standard or code is pending or, to the knowledge of Borrower, proposed, which, could,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     Section 4.14 Investment Company Act. Neither the Borrower nor any Subsidiary is an “investment company” or a company “controlled”
by an investment company within the meaning of the Investment Company Act of 1940, as amended.

     Section 4.15 Subsidiaries. Schedule 4.15 sets forth as of the date of this Agreement a list of each direct and
indirect Subsidiaries of the Borrower and the number and percentage of the shares of each class of
Stock owned beneficially or of record by the Borrower or any other Subsidiary therein, and the
jurisdiction of incorporation or organization of each Subsidiary. DRB #10, LLC is a non-operating
subsidiary of Borrower and DRB #11, LLC is a non-operating Subsidiary of DRB #10, LLC. Neither DRB
#10, LLC and DRB #11, LLC have any assets or revenues.

     Section 4.16 Related Entities. Schedule 4.16 sets forth as of the date of this Agreement a list of all Related Entities in
which the Borrower or any Subsidiary holds an investment.

     Section 4.17 Investment Policy. Attached hereto as Schedule 4.17 is the Investment Policy adopted by the Borrower’s board of
directors on or about January 30, 2006, which policy governs the Borrower’s investment strategy and
remains in full force and effect and has not been modified, revised or replaced since its adoption.

ARTICLE 5.

AFFIRMATIVE COVENANTS

     From the date of this Agreement and thereafter until any obligation of the Lenders to make
Advances shall have expired or been terminated, the Notes, the Letter of Credit Obligations and all
of the Borrower’s and any Guarantor’s other Obligations have been paid in full and all outstanding
Letters of Credit shall have expired or been terminated, unless the
Required Lenders shall otherwise expressly consent in writing, the Borrower will do, and will
cause each Subsidiary to do, all of the following:

     Section 5.1 Financial Statements and Reports. Furnish to the Agent:

          (a) As soon as available and in any event the earlier of: (i) within five days of filing with
the Securities and Exchange Commission, or (ii) within 120 days after the end of each fiscal year
of the Borrower, the annual audit report of the Borrower and its Subsidiaries prepared on a
consolidated basis and in conformity with GAAP, consisting of at least statements of income, cash
flow, changes in financial position and stockholders’ equity, and a consolidated balance sheet as
at the end of such year, certified without qualification by independent certified public
accountants of recognized standing selected by the Borrower and acceptable to the Agent, together
with any management letters, management reports or other supplementary comments or reports to the
Borrower or its board of directors furnished by such accountants and requested by the Agent.

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          (b) as soon as available, and in any event the earlier of: (i) within five days of filing with
the Securities and Exchange Commission, or (ii) within 45 days after the end of each fiscal
quarter, consolidated unaudited balance sheets of the Borrower and its Subsidiaries as of the end
of each such fiscal quarter and related consolidated statement of income, cash flow and changes in
financial position of the Borrower and its Subsidiaries for each such month and for the year to
date, in reasonable detail and stating in comparative form the figures for the corresponding date
and period in the previous year, all prepared in accordance with GAAP applied on a basis consistent
with the accounting practices reflected in the annual financial statements referred to in Section
4.5.

          (c) Together with the financial statements furnished under (a) and (b), a certificate of the
Borrower’s chief financial officer, substantially in the form of Exhibit B hereto, stating (i) that
such financial statements have been prepared in accordance with generally accepted accounting
principles, consistently applied, and fairly represent the Borrower’s combined, consolidated and
consolidating financial position and the results of its operations for such period, (ii) whether or
not such officer has knowledge of the occurrence of any Default or Event of Default not theretofore
reported and remedied and, if so, stating in reasonable detail the facts with respect thereto, and
(iii) all relevant facts and reasonable detail to evidence, and the computations as to, whether or
not the Borrower is in compliance with all financial covenants set forth in this Agreement.

          (d) As soon as available and in any event within 90 days after the beginning of each fiscal
year of the Borrower, the Borrower will deliver to the Lender the projected financial statements of
the Borrower and its Subsidiaries for such fiscal year, each in reasonable detail, representing the
Borrower’s good faith projections and certified by the Borrower’s chief financial Officer as being
the most accurate projections available and identical to the projections used by the Borrower for
internal planning purposes, together with a statement of underlying assumptions and such supporting
schedules and information as the Agent may in its discretion require.

          (e) Promptly upon their distribution, copies of all financial statements, reports and proxy
statements, which the Borrower shall have sent to its shareholders.

          (f) Promptly after the same are available, copies of each annual report, proxy or financial
statement or other report or communication sent to the stockholders of Borrower and copies of all
annual, regular, periodic and special reports and registration statements that Borrower may file or
be required to file with the Securities and Exchange Commission under Section 13 or Section 15(d)
of the Exchange Act, and, in each case, not otherwise required to be delivered to Agent pursuant
hereto.

          (g) Immediately upon becoming aware of any Default or Event of Default, a notice describing
the nature thereof and what action the Borrower proposes to take with respect thereto.

          (h) Immediately upon becoming aware of the occurrence, with respect to any Plan, of any
Reportable Event (other than a Reportable Event for which the reporting requirements have been
waived by PBGC regulations) or any “prohibited transaction” (as

31

 

defined in Section 4975 of the
Code), a notice specifying the nature thereof and what action the Borrower proposes to take with
respect thereto, and, when received, copies of any notice from PBGC of intention to terminate or
have a trustee appointed for any Plan.

          (i) Immediately upon becoming aware of the occurrence thereof, notice of the institution of
any litigation, arbitration or governmental proceeding, or the rendering of a judgment or decision
in such litigation or proceeding, which could constitute a Material Adverse Effect, and the steps
being taken by the Person(s) affected by such proceeding.

          (j) From time to time, such other information regarding the business, operation and financial
condition of the Borrower and the Subsidiaries as the Agent may reasonably request.

     Section 5.2 Financial Covenants.

          (a) Maximum Funded Debt to EBITDA. The Borrower shall maintain, on a consolidated basis, Funded Debt to EBITDA not greater
than 1.50 to 1.0 as of each fiscal quarter end, determined on a rolling 4-quarter basis.
Notwithstanding anything to the contrary contained herein, the calculation of EBITDA shall not
include any one-time recognition of deferred revenue or gain resulting from the termination of its
License Research Collaboration Agreement and Supply Agreement, each dated as of June 26, 2007
between the Borrower and Merck & Co., Inc.

          (b) Minimum Quick Ratio. The Borrower shall maintain, on a consolidated basis, a Quick Ratio not less than 1.50 to
1.0 measured at each fiscal quarter end.

          (c) Minimum Net Income. The Borrower shall achieve, on a consolidated basis, Net Income: (i) each fiscal quarter
of not less than $750,000, and (ii) each fiscal year end of not less than $5,000,000.

     Section 5.3 Corporate Existence. Subject to Section 6.1 in the instance of a Subsidiary, the Borrower and its Subsidiaries,
as applicable, shall maintain its corporate or other legal existence in good standing under the
laws of its jurisdiction of organization and its qualification to transact business in each
jurisdiction in which the character of the properties owned, leased or operated by it or the
business conducted by it makes such qualification necessary.

     Section 5.4 Insurance. Maintain with financially sound and reputable insurance companies: such insurance as may be
required by law and such other insurance in such amounts and against such hazards as is customary
in the case of reputable corporations engaged in the same or similar business and similarly
situated. Borrower shall deliver to Agent (a) a copy of each policy of insurance, and (b) from
time to time upon request of Agent, evidence of payment of all premiums therefor and
certificates/endorsements naming the Agent, for the account of the Lenders, as additional insured
and lender’s loss payee, each in form reasonably acceptable to Agent.

32

 

     Section 5.5 Payment of Taxes and Claims. File all tax returns and reports which are required by law to be filed by it and pay before
they become delinquent all taxes, assessments and governmental charges and levies imposed upon it
or its property and all claims or demands of any kind (including, without limitation, those of
suppliers, mechanics, carriers, warehouses, landlords and other like Persons) which, if unpaid,
might result in the creation of a Lien upon its property; provided that the foregoing items need
not be paid if they are being contested in good faith by appropriate proceedings, and as long as
the Borrower’s or such Subsidiary’s title to its property is not materially adversely affected, its
use of such property in the ordinary course of its business is not materially interfered with and
adequate reserves with respect thereto have been set aside on the Borrower’s or such Subsidiary’s
books in accordance with GAAP.

     Section 5.6 Inspection. Permit any authorized representatives of Agent to visit and inspect any of the properties of
such Borrower or any of its Subsidiaries, including its and their financial and accounting records,
and to make copies and take extracts therefrom, and to discuss its and their affairs, finances and
business with its and their officers and certified public accountants, at such reasonable times
during normal business hours and as often as may be reasonably requested, provided, however, that
if no Default or an Event of Default exists, the cost of any such visit and inspection shall be
borne by Agent and/or Lenders; and provided further, that when an Event of Default exists, Agent or
any Lender (or any of their respective representatives or independent contractors) may do any of
the foregoing at the expense of Borrower at any time during normal
business hours and without advance notice, and may do so as many times as Agent or any Lender
may require.

     Section 5.7 Maintenance of Properties. Maintain its properties used or useful in the conduct of its business in good condition,
repair and working order, and supplied with all necessary equipment, and make all necessary
repairs, renewals, replacements, betterments and improvements thereto, all as may be necessary so
that the business carried on in connection therewith may be properly and advantageously conducted
at all times.

     Section 5.8 Books and Records. Keep adequate and proper records and books of account in which full and correct entries will
be made of its dealings, business and affairs.

     Section 5.9 Compliance. Comply in all material respects with all laws, rules, regulations, orders, writs, judgments,
injunctions, decrees or awards to which it may be subject.

     Section 5.10 ERISA. Maintain each Plan in compliance with all material applicable requirements of ERISA and of
the Code and with all material applicable rulings and regulations issued under the provisions of
ERISA and of the Code.

     Section 5.11 Additional Subsidiaries. Without limiting other provisions regarding Subsidiaries, upon formation or acquisition of
any entity that would become a Subsidiary, the Borrower shall (a) cause such Subsidiary to become a
Guarantor hereunder by executing and delivering a Guaranty, and (b) deliver to the Agent documents
of the nature of those described in Section 3.1(a)(iii) through (vii) for such Subsidiary and as
may otherwise be required by the Loan Documents. In addition, at any point that DRB #10, LLC and
DRB #11, LLC acquire any assets or record any revenues, Borrower shall cause both such entities to
comply with (a) and (b) above.

33

 

     Section 5.12 Environmental Matters. Observe and comply with all laws, rules, regulations and orders of any government or
government agency relating to health, safety, pollution, hazardous materials or other environmental
matters to the extent non-compliance could result in a material liability or otherwise constitute a
Material Adverse Effect.

     Section 5.13 Depository Accounts. At all times maintain its primary deposit accounts with the Agent.

ARTICLE 6.

NEGATIVE COVENANTS

     From the date of this Agreement and thereafter until any obligation of the Lenders to make
Advances shall have expired or been terminated, the Notes, the Letter of Credit Obligations and all
of the Borrower’s and any Guarantor’s other Obligations have been paid in full and all outstanding
Letters of Credit shall have expired or been terminated, unless the Required Lenders shall
otherwise expressly consent in writing, the Borrower will not, and will not permit any Subsidiary
to, do any of the following:

     Section 6.1 Consolidation and Merger; Asset Acquisitions; Investments. Consolidate with or merge into any Person,
or permit any other Person to merge into it
(provided, however, any Subsidiary may be merged with or liquidated into the Borrower (if the
Borrower is the surviving corporation) or any other Subsidiary), or consummate any Acquisition (in
a transaction analogous in purpose or effect to a consolidation or merger), including any division,
of any other Person, except in connection with a Permitted Acquisition; nor make or permit to exist
any loans or advances to, or make any investment or acquire any interest whatsoever in, any other
Person, except:

          (a) investments in Marketable Securities;

          (b) travel advances or loans to the Borrower’s officers and employees not exceeding at any one
time an aggregate of $10,000;

          (c) advances in the form of progress payments, prepaid rent not exceeding twelve (12) months
or security deposits;

          (d) investments in Subsidiaries created in connection with a Permitted Acquisition; and

          (e) investments in Related Entities that comply with the following terms and conditions:

     (i) the investment must be in an entity that is in the same general line of
business as the Borrower;

     (ii) the aggregate investment in such entity, together with the aggregate
consideration paid in connection with all Acquisitions and the aggregate amount of
all other investments in Related Entities and Subsidiaries occurring during the
twelve (12) months immediately preceding such investment, does not in the aggregate
exceed the Acquisition Limit;

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     (iii) after giving effect to such investment, (i) no Default or Event of
Default shall exist, and (ii) the Borrower shall be in compliance with all other
terms and conditions contained in this Agreement; and

     (iv) as soon as available, but in any event not less than five (5) Business
Days prior to the consummation of any proposed Strategic Business Investment, the
Borrower shall have provided prior written notice of such investment to the Agent,
and upon request shall promptly provide Agent with true, correct and complete copies
of all investment-related documents, together with such other documents, reports,
searches, instruments and information as any Lender may request.

     Section 6.2 Sale of Assets. Sell, lease, assign, transfer or otherwise dispose of (i) the Stock of any Subsidiary, or
(ii) any assets except for the sale of inventory in the ordinary course of business or the sale of
worn-out or depleted equipment; or liquidate, dissolve or suspend all or any material portion of
its consolidated business operations during any fiscal year, or otherwise take any such action
which would have a Material Adverse Effect on Borrower or its business.

     Section 6.3 Indebtedness. Incur, create, assume or permit to exist any Funded Debt or Contingent Debt of the Borrower
or any Subsidiary, or any other indebtedness or liability evidenced by notes, bonds, debentures or
similar obligations, except:

          (a) Funded Debt arising under the Loan Documents;

          (b) Funded Debt in existence on the date hereof and listed in its financial statements
referenced in Section 4.5;

          (c) Funded Debt relating to Permitted Liens existing as of the date hereof and disclosed on
Schedule 6.4;

          (d) additional Funded Debt incurred after the date hereof (including in connection with a
Permitted Acquisition) that in the aggregate does not exceed more than $500,000 in principal amount
outstanding at any time and provided that (i) the incurrence of such Funded Debt does not and would
not cause the Borrower to be in default of any of the financial covenants set forth in Section 5.2
hereof or the terms of Section 6.4 hereof, and (ii) such Funded Debt shall be unsecured except
liens securing purchase money Funded Debt that complies with Section 6.4(c) hereof;

          (e) Contingent Debt related to: (i) the endorsement of negotiable instruments for deposit or
collection (or similar transactions) in the ordinary course of business, and (ii) any contingent
liabilities disclosed on Schedule 4.6 attached hereto;

          (f) Any Contingent Debt (including, but not limited to milestone payments), other than
Guaranties, incurred in conjunction with a Permitted Acquisition consummated before October 1,
2009; and

35

 

          (g) Any Contingent Debt other than the Contingent Debt set forth in (e) and (f) above, so long
as such contingent liability incurred does not exceed $500,000 individually or $1,000,000 in the
aggregate.

     Section 6.4 Liens. Create, incur or suffer to exist any Lien upon or of any of its assets (real or personal),
now owned or hereafter acquired, to secure any Debt; excluding, however, from the operation of the
foregoing, the following (collectively, “Permitted Liens”):

          (a) in the case of any of the Borrower’s or a Subsidiary’s property, covenants, restrictions,
rights, easements and minor irregularities in title which do not materially interfere with its
business or operations as presently conducted;

          (b) Liens in existence on the date hereof and listed in Schedule 6.4 hereto or that are
permitted under any Loan Documents;

          (c) Liens securing purchase money Debt (including capital leases) incurred in connection with
the acquisition of assets provided (i) the incurrence of which Debt does not and would not cause
the Borrower to be in default of any of the financial covenants set forth in Section 5.2 hereof or
the terms of Section 6.3 hereof, and (ii) if requested by the Agent, the Agent shall have received
from the other secured party providing such financing an intercreditor agreement containing
standard and customary terms and otherwise in form and substance acceptable to the Required
Lenders;

          (d) Liens assumed in connection with the merger of a Subsidiary into the Borrower or in
connection with a Permitted Acquisition (including capital leases) provided (i) the Debt securing
such Lien does not and would not cause the Borrower to be in default of any of the financial
covenants set forth in Section 5.2 hereof or the terms of Section 6.3 hereof, and (ii) if requested
by the Agent, the Agent shall have received from the other secured party providing such financing
an intercreditor agreement containing standard and customary terms and otherwise in form and
substance acceptable to the Required Lenders; and

          (e) Security interest and Liens, if any, created by the Loan Documents.

     Section 6.5 Transactions with Affiliates. Directly or indirectly to enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any management, consulting,
investment banking, advisory or other similar services) with any Affiliate (excluding any Affiliate
that is a Guarantor) or with any director, officer or employee of Borrower or any Affiliate, except
(a) as set forth on Schedule 6.5 hereto, (b) transactions in the ordinary course of the business of
such Borrower or any of its Subsidiaries and upon fair and reasonable terms which are fully
disclosed to Agent and are no less favorable to such Borrower or such Subsidiary than would be
obtained in a comparable arm’s length transaction with a Person that is not an Affiliate, and (c)
payment of reasonable compensation to officers and employees for services actually rendered to such
Borrower or such Subsidiary. Notwithstanding the foregoing, unless otherwise approved by Required
Lenders, no payments may be made with respect to any items
set forth on Schedule 6.5, if any, after the occurrence and during the continuation of a
Default or Event of Default or if a Default or Event of Default would result therefrom.

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     Section 6.6 No Restrictions on Subsidiary Distributions. Except as provided herein, create or otherwise cause or suffer to exist or become effective
any consensual encumbrance or restriction of any kind on the ability of any Subsidiary to: (1) pay
dividends or make any other distribution on any of such Subsidiary’s Stock owned by Borrower or any
other Subsidiary; (2) pay any Debt owed to Borrower or any other Subsidiary; (3) make loans or
advances to Borrower or any other Subsidiary; or (4) transfer any of its property or assets to any
Borrower or any other Subsidiary.

     Section 6.7 Use of Proceeds. Permit any proceeds of the Loans to be used, either directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of “purchasing or carrying any margin stock” within the
meaning of Regulation U of the Federal Reserve Board of Governors, as amended from time to time,
and furnish to the Agent, upon its request, a statement in conformity with the requirements of
Federal Reserve Form U-1 referred to in Regulation U.

     Section 6.8 Plans. Permit any condition to exist in connection with any Plan which might constitute grounds for
the PBGC to institute proceedings to have such Plan terminated or a trustee appointed to administer
such Plan, permit any Plan to terminate under any circumstances which would cause the lien provided
for in Section 4068 of ERISA to attach to any property, revenue or asset of the Borrower or any
Subsidiary or permit the underfunded amount of Plan benefits guaranteed under Title IV of ERISA to
exceed $250,000.

     Section 6.9 Change in Nature of Business. Make any material change in the nature of the business of the Borrower or any Subsidiary, as
carried on at the date hereof.

     Section 6.10 Restriction on Fundamental Changes. Directly or indirectly to: (a) change its name or jurisdiction of organization except with
the consent of Agent and Required Lenders which will not be unreasonably withheld; (b) merge any
Subsidiary of a Borrower with or into Borrower or any Subsidiary of a Borrower except upon not less
than five (5) Business Days prior written notice to Agent; or (c) liquidate, wind-up or dissolve
itself (or suffer any liquidation or dissolution).

     Section 6.11 No Negative Pledges/Other Agreements. Enter into any agreement, bond, note or other instrument with or for the benefit of any
Person other than the Agent which would: (a) limit the ability of any Subsidiary to guarantee the
Obligations of Borrower (b) prohibit the Borrower or such Subsidiary from granting, or otherwise
limit the ability of the Borrower or such Subsidiary to grant, to the Agent any Lien on
any assets or properties (real or personal) of the Borrower or such Subsidiary, provided,
however, that this subclause (b) shall not prohibit any negative pledge incurred or provided in
favor of any holder of Debt permitted under Sections 6.3(b) or Section 6.3(d); or (c) be violated
or breached by the Borrower’s performance of its obligations under the Loan Documents.

ARTICLE 7.

EVENTS OF DEFAULT AND REMEDIES

     Section 7.1 Events of Default. The occurrence of any one or more of the following events shall constitute an Event of
Default:

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          (a) The Borrower or any Guarantor shall fail to make when due, whether by acceleration or
otherwise, any payment of principal of or interest on any of the Loans, or any fee or other amount
required to be paid to the Agent or the Lenders pursuant to the Loan Documents;

          (b) A Change of Control shall occur;

          (c) Any representation or warranty made or deemed to have been made by or on behalf of the
Borrower or any Subsidiary in the Loan Documents or by or on behalf of the Borrower or any
Subsidiary in any certificate, statement, report or other writing furnished by or on behalf of the
Borrower or any Subsidiary to the Agent pursuant to the Loan Documents shall prove to have been
false or misleading in any material respect on the date as of which the facts set forth are stated
or certified or deemed to have been stated or certified;

          (d) The Borrower shall fail to comply with Section 5.2, Section 5.3 or Section 5.4 hereof or
any Section of Article 6 hereof;

          (e) The Borrower or any Subsidiary shall fail to comply with any agreement, covenant,
condition, provision or term contained in the Loan Documents (and such failure shall not constitute
an Event of Default under any of the other provisions of this Section 7.1) and such failure to
comply shall continue for 30 calendar days after notice thereof to the Borrower by the Agent;

          (f) The Borrower or any Subsidiary shall become insolvent or shall generally not pay its debts
as they mature or shall apply for, shall consent to, or shall acquiesce in the appointment of a
custodian, trustee or receiver of the Borrower or such Subsidiary or for a substantial part of the
property thereof or, in the absence of such application, consent or acquiescence, a custodian,
trustee or receiver shall be appointed for the Borrower or any Subsidiary or for a substantial part
of the property thereof and shall not be discharged within 30 days;

          (g) Any bankruptcy, reorganization, debt arrangement or other proceedings under any bankruptcy
or insolvency law shall be instituted by or against the Borrower or any Subsidiary, and, if
instituted against the Borrower or any Subsidiary, shall have a been consented to or acquiesced to
by the Borrower or any such Subsidiary, or shall remain undismissed for 30 days, or an order for
relief shall have been entered against the Borrower or any such Subsidiary,
or the Borrower or any Subsidiary shall take any corporate action to approve institution of,
or acquiescence in, such a proceeding;

          (h) Any dissolution or liquidation proceeding shall be instituted by or against the Borrower
or any Subsidiary and, if instituted against the Borrower or any such Subsidiary, shall be
consented to or acquiesced in by the Borrower or such Subsidiary or shall remain for 30 days
undismissed, or the Borrower or any Subsidiary shall take any corporate action to approve
institution of, or acquiescence in, such a proceeding;

          (i) A judgment, writ, warrant for attachment, executions or similar process for the payment of
money in excess of the sum of (1) an amount in any individual case in excess of $500,000 or (2) an
amount in the aggregate at any time in excess of $1,000,000 (in either case to the extent not
adequately covered by insurance as to which the insurance company has

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acknowledged coverage) shall
be rendered against the Borrower or any Subsidiary and the Borrower or such Subsidiary shall not
discharge the same or provide for its discharge in accordance with its terms, or procure a stay of
execution thereof, prior to any execution on such judgments by such judgment creditor, within 30
days from the date of entry thereof, and within said period of 30 days, or such longer period
during which execution of such judgment shall be stayed, appeal therefrom and cause the execution
thereof to be stayed during such appeal;

          (j) The institution by the Borrower or any ERISA Affiliate of steps to terminate any Plan if
in order to effectuate such termination, the Borrower or any ERISA Affiliate would be required to
make a contribution to such Plan, or would incur a liability or obligation to such Plan, in excess
of $250,000, or the institution by the PBGC of steps to terminate any Plan;

          (k) The maturity of any Debt (excluding accounts payable) of the Borrower or any Subsidiary
(other than Obligations under the Loan Documents) in excess of $500,000 shall be accelerated, or
the Borrower or any Subsidiary shall fail to pay any such Debt when due or, in the case of such
Debt payable on demand, when demanded, or any event shall occur or condition shall exist and shall
continue for more than the period of grace, if any, applicable thereto and shall have the effect of
causing, or permitting (any required notice having been given and grace period having expired) the
holder of any such Debt or any trustee or other Person acting on behalf of such holder to cause,
such Debt to become due prior to its stated maturity or to realize upon any collateral given as
security therefor; or

          (l) A Material Adverse Effect has occurred.

     Section 7.2 Remedies. If (a) any Event of Default described in Sections 7.1(f), (g) or (h) shall occur with
respect to the Borrower or any Subsidiary, the Revolving Loan Commitment (including, without
limitation, each Lender’s Commitment thereunder) shall automatically terminate and the outstanding
unpaid principal balance of the Loans, the accrued interest thereon and all other obligations of
the Borrower or any Subsidiary to the Agent under the Loan Documents shall automatically become
immediately due and payable without presentment, demand, protest or notice of any kind; or (b) any
other Event of Default shall occur and be continuing, then the
Agent may, and at the request of Required Lenders Agent shall (i) declare the Revolving Loan
Commitment (including, without limitation, each Lender’s Commitment thereunder) terminated,
whereupon the Revolving Loan Commitment shall terminate, and/or (ii) declare that the outstanding
unpaid principal balance of the Loans, the accrued and unpaid interest thereon and all other
Obligations of the Borrower or any Subsidiary to the Agent and the Lenders under the Loan Documents
to be forthwith due and payable, whereupon the Loans, all accrued and unpaid interest thereon and
all such Obligations shall immediately become due and payable, in each case without demand or
notice of any kind, all of which are hereby expressly waived, anything in this Agreement or in the
Notes to the contrary notwithstanding. In addition, without limiting the foregoing (y) upon the
occurrence of any Default, Agent may, and at the request of Required Lenders Agent shall, without
notice or demand, immediately suspend all or any portion of Lenders’ obligations to make additional
Loans or issue or cause to be issued Letters of Credit under the Revolving Loan Commitment;
provided that if the subject condition or event is waived by Required Lenders or cured within any
applicable grace or cure period, the Revolving Loan Commitment shall be reinstated; and (z) upon
the occurrence of any Event of Default or at any time thereafter until such Event of

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Default is
cured to the written satisfaction of the Agent, the Agent may take any or all of the following
actions: (i) exercise all rights and remedies available under any instrument, document or agreement
between the Borrower or any Subsidiary and the Agent; and (ii) enforce all rights and remedies
under any applicable law.

     Section 7.3 Offset. In addition to the remedies set forth in Section 7.2, upon the occurrence of any Event of
Default or at any time thereafter while such Event of Default continues, each Lender is hereby
authorized by Borrower at any time or from time to time, with reasonably prompt subsequent notice
to Borrower (any prior or contemporaneous notice being hereby expressly waived) to set off and to
appropriate and to apply any and all (A) balances held by such Lender at any of its offices for the
account of Borrower or any of its Subsidiaries (regardless of whether such balances are then due to
Borrower or its Subsidiaries), and (B) other property at any time held or owing by such Lender to
or for the credit or for the account of Borrower or any of its Subsidiaries, against and on account
of any of the Obligations; except that no Lender shall exercise any such right without the prior
written consent of Agent. Any Lender exercising a right to set off shall purchase for cash (and
the other Lenders shall sell) interests in each of such other Lender’s Pro Rata Share of the
Obligations as would be necessary to cause all Lenders to share the amount so set off with each
other Lender in accordance with their respective Pro Rata Shares. Borrower agrees, to the fullest
extent permitted by law, that any Lender may exercise its right to set off with respect to amounts
in excess of its Pro Rata Share of the Obligations and upon doing so shall deliver such amount so
set off to the Agent for the benefit of all Lenders in accordance with their Pro Rata Shares.

ARTICLE 8.

AGENCY

     Section 8.1 Appointment of Agent.

          (a) Each Lender hereby designates Wells Fargo as Agent to act as herein specified. Each
Lender hereby irrevocably authorizes Agent to take such action on its behalf under the provisions
of this Agreement and the Notes and any other instruments and agreements referred to herein and to
exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of Agent by the terms hereof and thereof and such other powers as are
reasonably incidental thereto. Except as otherwise provided herein, Agent shall hold any
collateral and all payments of principal, interest, fees, charges and expenses received pursuant to
this Agreement or any of the Loan Documents for the benefit of Lenders. Agent may perform any of
its duties hereunder by or through its agents or employees.

          (b) The provisions of this Article 8 are solely for the benefit of Agent and Lenders, and
Borrower shall not have any rights as a third party beneficiary of any of the provisions hereof.
In performing its functions and duties under this Agreement, Agent shall act solely as agent of
Lenders and does not assume and shall not be deemed to have assumed any obligation toward or
relationship of agency or trust with or for Borrower or any Subsidiaries.

     Section 8.2 Nature of Duties of Agent. Agent shall not have duties, obligations
or responsibilities except those expressly set
forth in this Agreement and the Loan Documents. Neither Agent nor any of its officers, directors,
employees or agents shall be liable for any action

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taken or omitted by it as such hereunder or in
connection herewith, unless caused by its or their gross negligence or willful misconduct. The
duties of Agent shall be mechanical and administrative in nature; Agent shall not have by reason of
this Agreement or the Loan Documents a fiduciary relationship in respect of any Lender; and nothing
in this Agreement or the Loan Documents, expressed or implied, is intended to or shall be so
construed as to impose upon Agent any obligations in respect of this Agreement or the Loan
Documents except as expressly set forth herein.

     Section 8.3 Lack of Reliance on Agent.

          (a) Independently and without reliance upon Agent, each Lender, to the extent it deems
appropriate, has made and shall continue to make (i) its own independent investigation of the
financial or other condition and affairs of Agent and any other Lender in connection with the
taking or not taking of any action in connection herewith and (ii) its own appraisal of the
creditworthiness of Agent and any other Lender, and, except as expressly provided in this
Agreement, Agent shall not have any duty or responsibility, either initially or on a continuing
basis, to provide any Lender with any credit or other information with respect thereto, whether
coming into its possession before the making of the initial Revolving Loans, Draw Loans and the
Term Loans or at any time or times thereafter.

          (b) Agent shall not be responsible to any Lender for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other writing delivered in
connection herewith or for the execution, effectiveness, genuineness, validity, enforceability,
collectibility, priority or sufficiency of this Agreement or the Loan Documents or any notes or the
financial or other condition of Borrower or any of its Subsidiaries. Agent shall
not be required to make any inquiry concerning either the performance or observance of any of
the terms, provisions or conditions of this Agreement or the Loan Documents, or the financial
condition of Borrower or any Subsidiary, or the existence or possible existence of any Event of
Default.

     Section 8.4 Certain Rights of Agent. Agent shall have the right to request
instructions from Required Lenders or all Lenders, as
applicable, pursuant to this Agreement, by notice to each Lender. If Agent shall request
instructions from Required Lenders or all Lenders, as applicable, with respect to any act or action
(including the failure to act) in connection with this Agreement, Agent shall be entitled to
refrain from such act or taking such action unless and until Agent shall have received instructions
from Required Lenders or all Lenders, as applicable, and Agent shall not incur liability to any
Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right
of action whatsoever against Agent as a result of Agent acting or refraining from acting hereunder
in accordance with the instructions of Required Lenders or all Lenders, as applicable.

     Section 8.5 Reliance by Agent. Agent shall be under no duty to
examine, inquire into, or pass upon the validity,
effectiveness or genuineness of this Agreement, any of the Loan Documents or any instrument,
document or communication furnished pursuant hereto or thereto or in connection herewith or
therewith. Agent shall be entitled to rely, and shall be fully protected in relying, upon any
note, writing, resolution, notice, statement, certificate, telex, teletype or telecopier message,
cablegram, radiogram, order, electronic mail or other

41

 

documentary, teletransmission or telephone
message believed by it to be genuine and correct and to have been signed, sent or made by the
proper person. Agent may consult with legal counsel (including counsel for Borrower with respect
to matters concerning Borrower), independent public accountants and other experts selected by it
and shall not be liable for any action taken or omitted to be taken by it in good faith in
accordance with the advice of such counsel, accountants or experts.

     Section 8.6 Indemnification of Agent. To the extent Agent is not promptly reimbursed and indemnified by Borrower, each Lender will
reimburse and indemnify Agent, in proportion to its Pro Rata Share, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
(including counsel fees and disbursements) or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against Agent in performing its duties hereunder, in any
way relating to or arising out of this Agreement; provided, that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from Agent’s gross negligence or willful misconduct. If
any indemnity furnished to Agent for any purpose shall, in the opinion of Agent, be insufficient or
become impaired, Agent may call for additional indemnities and cease to do, or not commence, the
acts to be indemnified against, even if so directed by Required Lenders or all Lenders, as
applicable, until such additional indemnification
is provided. The obligations of Lenders under this Section 8.6 shall survive the payment in
full of the Obligations, any resignation by Agent and the termination of this Agreement.

     Section 8.7 Agent in its Individual Capacity. With respect to the Loans made by
it pursuant hereto, Agent shall have the same rights and
powers hereunder as any other Lender or holder of a note or participation interest and may exercise
the same as though it was not performing the duties specified herein; and the terms “Lenders,”
“Required Lenders” or any similar terms shall, unless the context clearly otherwise indicates,
include Agent in its individual capacity. Agent may accept deposits from, lend money to, acquire
equity interests in, and generally engage in any kind of banking, trust, financial advisor or other
business with Borrower or any Subsidiaries or any Affiliate of Borrower or any of the Subsidiaries
as if it were not performing the duties specified herein, and may accept fees and other
consideration from Borrower or any Subsidiaries for services in connection with this Agreement and
otherwise without having to account for the same to Lenders, to the extent such activities are not
in contravention of the terms of this Agreement.

     Section 8.8 Successor Agent.

          (a) Agent may, upon thirty (30) days’ notice to Lenders and Borrower, resign at any time
(effective upon the appointment of a successor Agent pursuant to the provisions of this Section 8.8
by giving written notice thereof to Lenders and Borrower. Upon any such resignation, Required
Lenders shall have the right, upon five (5) days’ notice, to appoint a successor Agent which, if no
Default is continuing, is acceptable to Borrower (such approval not to be unreasonably withheld).
If no successor Agent shall have been so appointed by Required Lenders and approved by Borrower, if
applicable, and accepted such appointment, within thirty (30) days after the retiring Agent’s
giving of notice of resignation, then, upon five (5) days’ notice, the retiring Agent may, on
behalf of Lenders, appoint a successor Agent, which shall be a

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bank or a trust company or other
financial institution which maintains an office in the United States, or a commercial bank
organized under the laws of the United States of America or of any State thereof.

          (b) Upon the acceptance of any appointment as an Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. After any retiring Agent’s resignation hereunder as
Agent, the provisions of this Article 8 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was an Agent under this Agreement.

     Section 8.9 Amendments, Consents and Waivers.

          (a) Except as otherwise provided in this Section 8.9 or in Section 11.1 and except as to
matters set forth in other subsections hereof or in any other Loan Document as requiring only
Agent’s consent, the consent of Required Lenders and Borrower will be required
to amend, modify, terminate, or waive any provision of this Agreement or any of the other Loan
Documents. The consent of Borrower shall constitute consent of Borrower and each of its
Subsidiaries.

          (b) In the event Agent requests the consent of a Lender and does not receive a written consent
or denial thereof within ten (10) Business Days after such Lender’s receipt of such request, then
such Lender will be deemed to have denied the giving of such consent.

          (c) If, in connection with any proposed amendment, modification, termination or waiver of any
of the provisions of this Agreement requiring the consent or approval of all Lenders under Section
11.1, the consent of Required Lenders is obtained but the consent of one or more other Lenders
whose consent is required is not obtained, then Borrower shall have the right, so long as all such
non-consenting Lenders are either replaced or prepaid as described in clauses (A) or (B) below, to
either (A) replace the non-consenting Lenders with one or more Replacement Lenders pursuant to
Section 2.10(a) so long as each such Replacement Lender consents to the proposed amendment,
modification, termination or waiver or (B) prepay in full the Obligations of the non-consenting
Lenders and terminate the non-consenting Lenders’ Commitment in accordance with Section 2.10(b).

     Section 8.10 Actions with Respect to Defaults. In addition to Agent’s right (where applicable) to take actions on its own accord as
permitted under this Agreement, Agent shall take such action with respect to an Event of Default as
shall be directed by Required Lenders or all Lenders, as applicable, under this Agreement;
provided, that until Agent shall have received such directions, Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such Event of
Default as it shall deem advisable and in the best interests of Lenders. No Lender shall have any
right individually to enforce or seek to enforce this Agreement or any Loan Document or to realize
upon any collateral, unless instructed to do so by Agent.

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     Section 8.11 Delivery of Information. Agent shall not be required to deliver to any Lender originals or copies of any documents,
instruments, notices, communications or other information received by Agent from Borrower or any of
the Subsidiaries, Required Lenders, any Lender or any other Person under or in connection with this
Agreement or any Loan Document except: (i) as specifically provided in this Agreement or any Loan
Document and (ii) as specifically requested from time to time in writing by any Lender with respect
to a specific document, instrument, notice or other written communication received by and in the
possession of Agent at the time of receipt of such request and then only in accordance with such
specific request.

     Section 8.12 Demand. Subject to the terms of this Agreement, Agent
shall make demand for repayment by Borrower of
all amounts owing by Borrower hereunder, after the occurrence of an Event of Default, upon the
written request of Required Lenders. Agent shall make such demand in such manner as it deems
appropriate, in its sole discretion, to effectuate the request of the Required
Lenders. Nothing contained herein shall limit the discretion of Agent to take reserves, or to
exercise any other discretion granted to Agent in this Agreement.

     Section 8.13 Notice of Default. Agent shall not be deemed to have knowledge
or notice of the occurrence of any Event of
Default or any Default, except with respect to Events of Default arising as a result of Borrower’s
failure to pay principal, interest or fees required to be paid to Agent for the benefit of Lenders,
unless Agent shall have received written notice from a Lender or Borrower describing such Event of
Default or Default, and which identifies such event as a “notice of default”. Upon receipt of any
such notice or Agent becoming aware of Borrower’s failure to pay principal, interest or fees
required to be paid to Agent for the benefit of Lenders, Agent will notify each Lender of such
receipt or event.

     Section 8.14 Arranger. Wells Fargo as the sole Lead Arranger
shall not have any duties or responsibilities
hereunder in its capacity as such.

ARTICLE 9.

FUNDING OF ADVANCES, RECEIPT OF PAYMENTS.

     Section 9.1 Funding of Advances/Settlement. The following procedures shall be followed by
the Agent and the Lenders upon receipt by Agent of a request for an Advance from Borrower:

          (a) Upon receipt of a request for an Advance from the Borrower, the Agent shall promptly
provide each Lender notice of such request and the amount of each Lender’s Pro Rata Share thereof.

          (b) Agent may, on behalf of Lenders, disburse funds to the Borrower for Loans requested. Each
Lender shall reimburse Agent on demand for all funds disbursed on its behalf by Agent, or if Agent
so requests, each Lender will remit to Agent its Pro Rata Share of any Loan before Agent disburses
same to any Borrower. If Agent elects to require that each Lender make funds available to Agent
prior to disbursement by Agent to such Borrower, Agent shall advise each Lender by telephone or fax
of the amount of such Lender’s Pro Rata Share of the Loan requested by any Borrower no later than
3:00 p.m. (Minneapolis time) on the scheduled funding date applicable thereto, and each such Lender
shall pay Agent such Lender’s Pro Rata Share of such requested Loan, in same day funds, by wire
transfer to Agent’s account on such

44

 

scheduled funding date. If any Lender fails to pay its Pro
Rata Share within one (1) Business Day after Agent’s demand, Agent shall promptly notify the
Borrower, and the Borrower shall immediately repay such amount to Agent. Any repayment required
pursuant to this Section 9.1(b) shall be without premium or penalty. Nothing in this Section
9.1(b) or elsewhere in this Agreement or the other Loan Documents, including the remaining
provisions of Article 9, shall be deemed to require Agent to advance funds on behalf of any Lender
or to relieve any Lender from its obligation to fulfill its Commitment hereunder or to prejudice
any rights that Agent or any Borrower may have against any Lender as a result of any default by
such Lender hereunder.

          (c) At least once each calendar week or more frequently at Agent’s election (each, a
“Settlement Date”), Agent shall advise each Lender by telephone or fax of the amount of such
Lender’s Pro Rata Share of principal, interest and fees paid for the benefit of Lenders with
respect to each applicable Loan. Provided that each Lender has funded all payments required to be
made by it and funded all purchases of participations required to be funded by it under this
Agreement and the other Loan Documents as of such Settlement Date, Agent shall pay to each Lender
such Lender’s Pro Rata Share of principal, interest and fees paid by the Borrower since the
previous Settlement Date for the benefit of such Lender on the Loans held by it. Such payments
shall be made by wire transfer to such Lender not later than 3:00 p.m. (Minneapolis time) on the
next Business Day following each Settlement Date. To the extent that any Lender (a “Non-Funding
Lender”) has failed to fund all such payments or failed to fund the purchase of all such
participations required to be funded by such Lender pursuant to this Agreement, Agent shall be
entitled to set off the funding shortfall against that Non-Funding Lender’s Pro Rata Share of all
payments received from Borrower.

     Section 9.2 Availability of Lender’s Pro Rata Share. Agent may assume that each Lender will make its Pro Rata Share of each Loan available to Agent
on each funding date. If such Pro Rata Share is not, in fact, paid to Agent by such Lender when
due, Agent will be entitled to recover such amount on demand from such Lender without setoff,
counterclaim or deduction of any kind. If any Lender fails to pay the amount of its Pro Rata Share
forthwith upon Agent’s demand, Agent shall promptly notify the Borrower and the Borrower shall
immediately repay such amount to Agent. Nothing in this Section 9.2 or elsewhere in this Agreement
or the other Loan Documents shall be deemed to require Agent to advance funds on behalf of any
Lender or to relieve any Lender from its obligation to fulfill its Commitment hereunder or to
prejudice any rights that any Borrower may have against any Lender as a result of any default by
such Lender hereunder. To the extent that Agent advances funds to any Borrower on behalf of any
Lender and is not reimbursed therefor on the same Business Day as such advance is made, Agent shall
be entitled to retain for its account all interest accrued on such advance until reimbursed by the
applicable Lender.

     Section 9.3 Return of Payments.

          (a) If Agent pays an amount to a Lender under this Agreement in the belief or expectation that
a related payment has been or will be received by Agent from any Borrower and such related payment
is not received by Agent, then Agent will be entitled to recover such amount from such Lender on
demand without setoff, counterclaim or deduction of any kind.

45

 

          (b) If Agent determines at any time that any amount received by Agent under this Agreement
must be returned to Borrower or any Subsidiary or paid to any other Person pursuant to any
insolvency law or otherwise, then, notwithstanding any other term or condition of this Agreement or
any other Loan Document, Agent will not be required to distribute any portion thereof to any
Lender. In addition, each Lender will repay to Agent on demand any portion of such amount that
Agent has distributed to such Lender, together with interest at such
rate, if any, as Agent is required to pay to any Borrower or such other Person, without
setoff, counterclaim or deduction of any kind.

     Section 9.4 Non-Funding Lenders. The failure of any Non-Funding Lender to make any Loan or any payment required by it
hereunder, or to fund any purchase of any participation to be made or funded by it on the date
specified therefor shall not relieve any other Lender (each such other Lender, an “Other Lender”)
of its obligations to make such loan or fund the purchase of any such participation on such date,
but neither any Other Lender nor Agent shall be responsible for the failure of any Non-Funding
Lender to make a loan, fund the purchase of a participation or make any other payment required
hereunder. Notwithstanding anything set forth herein to the contrary, a Non-Funding Lender shall
not have any voting or consent rights under or with respect to any Loan Document or constitute a
“Lender” or a “Lender” (or be included in the calculation of “Required Lenders” hereunder) for any
voting or consent rights under or with respect to any Loan Document.

ARTICLE 10.

ASSIGNMENTS AND PARTICIPATIONS.

     Section 10.1 Assignments.

          (a) Assignments. Each Lender may from time to time assign, subject to the terms of an Assignment Certificate
in substantially the form attached hereto as Exhibit E (each an “Assignment Certificate”), its
rights and delegate its obligations under this Agreement to another Person, provided that (1) such
Lender (excluding Wells Fargo) shall first obtain the written consent of Agent and prior to
occurrence of an Event of Default, the Borrower, which consent shall not be unreasonably withheld;
(2) the Commitment of such Lender being assigned shall in no event be less than the lesser of (a)
$5,000,000 or (b) the entire amount of the Commitment of the assigning Lender; and (3) upon the
consummation of each such assignment the assigning Lender shall pay Agent an administrative fee of
not less than $3,500. The administrative fee referred to in clause (3) of the preceding sentence
shall not apply to an assignment of security interest in the Obligations as described in Section
10.3 below. In the case of an assignment authorized under this Section 10.1, the assignee shall
have, to the extent of such assignment, the same rights, benefits and obligations as it would if it
were an initial Lender hereunder. The assigning Lender shall be relieved of its obligations
hereunder with respect to its Commitment or assigned portions thereof. Borrower hereby
acknowledges and agrees that any assignment will give rise to a direct obligation of Borrower to
the assignee and that the assignee shall be considered to be a Lender hereunder.

          (b) Recording of Assignments. Agent shall maintain at its office in Minneapolis, Minnesota a copy of each Assignment
Certificate delivered to it and a register for the recordation of the names and addresses of
Lenders, and the commitments of, and principal

46

 

amount of the Loans owing to each
Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the
Register shall be presumptive evidence of the amounts due and owing to Lender in the absence of
manifest error. Borrower, Agent and each Lender 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.
The Register shall be available for inspection by Borrower and any Lender, at any reasonable time
upon reasonable prior notice.

     (c) Acceptance of Assignment by Agent. Upon its receipt of a duly completed Assignment Certificate executed by an assigning Lender
and its assignee (together with the Notes subject to such assignment) and the administrative fee
referred to above, Agent shall (subject to the consent of Agent to such assignment, if required)
(1) accept such Assignment Certificate; (2) record the information contained therein in the
Register and replace Schedule 1.1A; and (3) give prompt notice thereof to Borrower and Lenders.
Upon request by Agent, Borrower shall promptly execute and deliver to Agent Note(s) evidencing the
Obligations owed by Borrower to the assignee and, if applicable, the assigning Lender, after giving
effect to the assignment. Agent shall cancel the Note(s) delivered to it by the assigning Lender
and deliver the new Note(s) to the assignee and, unless the assigning Lender has assigned all of
its interests under this Agreement, the assigning Lender.

     Section 10.2 Participations. Any Lender may sell participations in all or any part of its Commitment to another Person
provided that such Lender (excluding Wells Fargo) shall first obtain the prior written consent of
Agent and prior to occurrence of an Event of Default, the Borrower, which consent shall not be
unreasonably withheld. All amounts payable by Borrower hereunder shall be determined as if that
Lender had not sold such participation and the holder of any such participation shall not be
entitled to require such Lender to take or omit to take any action hereunder except action directly
effecting (i) any reduction in the principal amount or interest rate payable with respect to any
Loan in which such holder participates; or (ii) any extension of the Termination Date, the date on
which any principal payment is due under any of the Loans or the date fixed for any payment of
interest payable with respect to any Loan in which such holder participates. Borrower hereby
acknowledge and agree that any participation will give rise to a direct obligation of Borrower to
the participant, and the participant shall for purposes of Section 2.7, Section 7.3 and Section
11.2 be considered to be a Lender hereunder.

     Section 10.3 Security Interests in Obligations; Assignments to Affiliates. Notwithstanding any other provision
of this Agreement, any Lender may at any time,
following written notice to Agent, (1) pledge the Obligations held by it or create a security
interest in all or any portion of its rights under this Agreement or the other Loan Documents in
favor of any Person; provided, however, that (a) no such pledge or grant of security interest to
any Person shall release such Lender from its obligations hereunder or under any other Loan
Document and (b) the acquisition of title to such Lender’s Obligations pursuant to any foreclosure
or other exercise of remedies by such Person shall be subject to the provisions of this Agreement
and the other Loan Documents in all respects including, without limitation, any
consent required by Section 10.1(a); and (2) assign all or any portion of its funded loans to
an Affiliate of such Lender which is at least 50% owned by such Lender or its parent company, to
one or more other Lenders or to a Related Fund. For purposes of this paragraph, a “Related Fund”
shall mean, with respect to any Lender, a fund or other investment vehicle that invests in
commercial loans and is managed by such Lender or by the same investment advisor that manages such
Lender or by an Affiliate of such investment advisor.

47

 

     Section 10.4 Other Matters. Except as otherwise provided in this Article 10, no Lender shall, as between Borrower and
that Lender, be relieved of any of its obligations hereunder as a result of any sale, assignment,
transfer or negotiation of, or granting of a participation in, all or any part of the Loans, the
Notes or other Obligations owed to such Lender. Each Lender may furnish any information concerning
any Borrower and its Subsidiaries in the possession of that Lender from time to time to assignees
and participants (including prospective assignees and participants). Borrower agrees that it will
use commercially reasonable efforts to assist and cooperate with Agent and any Lender in any manner
reasonably requested by Agent or such Lender (provided that such request does not violate any duty
of Borrower under its existing licensing agreements or under existing law) to effect the sale of a
participation or an assignment described above, including without limitation assistance in the
preparation of appropriate disclosure documents or placement memoranda. Notwithstanding anything
contained in this Agreement to the contrary, so long as the Required Lenders shall remain capable
of making LIBOR Advances, no Person shall become a Lender hereunder unless such Person shall also
be capable of making LIBOR Advances.

ARTICLE 11.

MISCELLANEOUS

     Section 11.1 Waivers and Amendments. No failure on the
part of the Agent or the holder(s) of the Notes to exercise and no delay
in exercising any power or right hereunder or under any other Loan Document shall operate as a
waiver thereof; nor shall any single or partial exercise of any power or right preclude any other
or further exercise thereof or the exercise of any other power or right. The remedies herein and in
any other instrument, document or agreement delivered or to be delivered to the Agent hereunder or
in connection herewith are cumulative and not exclusive of any remedies provided by law. No notice
to or demand on the Borrower not required hereunder or under the Notes shall in any event entitle
the Borrower to any other or further notice or demand in similar or other circumstances or
constitute a waiver of the right of the Agent or the holder(s) of the Notes to any other or further
action in any circumstances without notice or demand. No amendment, modification or waiver of any
provision of the Loan Documents or consent to any departure by the Borrower therefrom shall be
effective unless the same shall be in writing and signed by the Agent, and then such amendment,
modifications, waiver or consent shall be effective only in the specific instances and for the
specific purpose for which given.

     Except as otherwise provided herein, no amendment, modification, termination or waiver of any
provision of this Agreement, the Notes or any of the other Loan Documents, or consent to
any departure by Borrower or any Subsidiary therefrom (each a “Loan Party”), shall in any
event be effective unless the same shall be in writing and signed by Required Lenders (or Agent, if
expressly set forth herein, in any Note or in any other Loan Document) and the applicable Loan
Party; provided, that no amendment, modification, termination or waiver shall, (1) increase the
amount of any Lender’s Commitment unless in writing and signed by the such Lender, and (2) unless
in writing and signed by all Lenders, do any of the following: (a) increase the Revolving Loan
Commitment (except as expressly permitted by Section 2.1(a)(iii)); (b) reduce

48

 

the principal of or
the rate of interest on any Loan or the fees payable with respect to any Loan or Letter of Credit;
(c) extend the Termination Date or any date fixed for any payment of interest or fees; (d) change
the definition of the term Required Lenders or the percentage of Lenders which shall be required
for Lenders to take any action hereunder; (e) amend or waive this Section 11.1 or the definitions
of the terms used in this Section 11.1 insofar as the definitions affect the substance of this
Section 11.1; and provided, further, that no amendment, modification, termination or waiver
affecting the rights or duties of Agent under any Loan Document shall in any event be effective,
unless in writing and signed by Agent, in addition to all Lenders required to take such action.
Notwithstanding anything to the contrary in this Section 11.1, Agent and Borrower may execute
amendments to this Agreement and the other Loan Documents for the purpose of correcting
typographical errors without the consent of Lenders. Each amendment, modification, termination or
waiver shall be effective only in the specific instance and for the specific purpose for which it
was given. No notice to or demand on Borrower or any other Loan Party in any case shall entitle
Borrower or any other Loan Party to any other or further notice or demand in similar or other
circumstances. Any amendment, modification, termination, waiver or consent effected in accordance
with this Section 11.1 shall be binding upon each holder of the Notes at the time outstanding, each
future holder of the Notes and, if signed by a Loan Party, on such Loan Party

     Section 11.2 Indemnities. Borrower agrees to indemnify, pay, and hold Agent, each Lender (individually and in their
capacity as Issuing Lenders) and their respective officers, directors, employees, agents, and
attorneys (the “Indemnitees”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs and expenses (including all
reasonable fees and expenses of counsel to such Indemnitees) of any kind or nature whatsoever that
may be imposed on, incurred by, or asserted against the Indemnitee as a result of such Indemnitees
being a party to this Agreement or the transactions consummated pursuant to this Agreement or
otherwise relating to any of the Related Transactions; provided that Borrower shall have no
obligation to an Indemnitee hereunder with respect to liabilities to the extent resulting from the
gross negligence or willful misconduct of that Indemnitee as determined by a court of competent
jurisdiction. If and to the extent that the foregoing undertaking may be unenforceable for any
reason, Borrower agrees to make the maximum contribution to the payment and satisfaction thereof
which is permissible under applicable law. This subsection and other indemnification provisions
contained within the Loan Documents shall survive the termination of this Agreement.

     Section 11.3 Notices.

          (a) Except as otherwise provided herein, including without limitation 1.1(b), all notices,
requests and demands to or upon the respective parties hereto to be effective shall be in writing
(including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have
been duly given or made when delivered, or three Business Days after being deposited in the mail,
postage prepaid, or, in the case of telecopy notice, when received, addressed to such party at the
address specified on the signature page hereof, or at such other address as such party shall have
specified to the other party hereto in writing; provided, however, that any notice, demand or
request to the Agent shall be deemed to have been given only when received by the Agent.

49

 

          (b) Notices and other communications to the Agent or the Lenders hereunder may be delivered or
furnished by electronic communications pursuant to procedures approved by the Agent; provided that
the foregoing shall not apply to notices pursuant to Article 2 unless otherwise agreed by the Agent
and each Lender. The Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures approved
by it; provided that approval of such procedures may be limited to particular notices or
communications. Additionally, if the Agent agrees to accept a notice pursuant to Article 2,
including any notice of borrowing, notice of interest period selection or notice of loan type
conversion, made by e-mail transmission, such e-mail transmission shall be binding on the Borrower
whether or not written confirmation is sent by the Borrower or requested by the Agent, and the
Agent may act prior to the receipt of any requested written confirmation, without any liability
whatsoever, based upon e-mail notice believed by the Agent in good faith to be from the Borrower or
its agents. The Agent’s records of the terms of any e-mail notice pursuant to Article 2 shall be
conclusive on the Borrower in the absence of gross negligence or willful misconduct on the part of
the Agent in connection therewith.

          (c) The Borrower agrees that the Agent may make any material delivered by the Borrower to the
Agent, as well as any amendments, waivers, consents, and other written information, documents,
instruments and other materials relating to the Borrower or any of its Affiliates, or any other
materials or matters relating to this Agreement, the other Loan Documents or any of the
transactions contemplated hereby or thereby (collectively, the “Communications”) available to the
Lenders by posting such notices on an electronic delivery system (which may be provided by the
Agent, an Affiliate, or any Person that is not an Affiliate of the Agent), such as IntraLinks, or a
substantially similar electronic system that requires passwords for access and takes other
customary measures with respect to confidentiality and security (the “Platform”). The Borrower
acknowledges that (i) the distribution of material through an electronic medium is not necessarily
secure and that there are confidentiality and other risks associated with such distribution, (ii)
the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its
Affiliates represents or warrants the accuracy, completeness, timeliness, sufficiency or sequencing
of the Communications posted on the Platform. The Agent and its Affiliates expressly disclaim with
respect to the Platform any liability for errors in transmission, incorrect or incomplete
downloading, delays in posting or delivery, or problems accessing the Communications posted on the
Platform and any liability for any losses, costs, expenses or liabilities that may be suffered or
incurred in connection with the Platform, except to the extent any of the foregoing liabilities are
caused by the gross negligence or willful misconduct of the Agent or any of its Affiliates. No
warranty of any kind, express,
implied or statutory, including, without limitation, any warranty of merchantability, fitness
for a particular purpose, non-infringement of third party rights or freedom from viruses or other
code defects, is made by the Agent or any of its Affiliates in connection with the Platform.

          (d) Each Lender agrees that notice to it (as provided in the next sentence) (a “Notification”)
specifying that any Communication has been posted to the Platform shall for purposes of this
Agreement constitute effective delivery to such Lender of such information, documents or other
materials comprising such Communication. Each Lender agrees (i) to notify, on or before the date
such Lender becomes a party to this Agreement, the Agent in writing of such Lender’s e-mail
address to which a Notification may be sent (and from time to time thereafter to ensure that the
Agent has on record an effective e-mail address for such Lender) and (ii) that any Notification may
be sent to such e-mail address.

50

 

     Section 11.4 Successors. This Agreement shall be binding upon the Borrower and the Agent and their respective
successors and assigns, and shall inure to the benefit of the Borrower and the Agent and the
successors and assigns of the Agent. The Borrower shall not assign its rights or duties hereunder
without the written consent of the Agent.

     Section 11.5 Participations and Information. The Agent may sell participation interests in any or all of the Loans to any Person. The
Agent may furnish any information concerning the Borrower in the possession of the Agent from time
to time to participants and prospective participants and may furnish information in response to
credit inquiries consistent with general banking practice.

     Section 11.6 Treatment of Certain Information; Confidentiality. Agent
and each Lender agrees to maintain the confidentiality of the Information, except
that Information may be disclosed: (a) to its Affiliates and to its Affiliates’ respective
partners, directors, officers, employees, agents, advisors and representatives; (b) to the extent
requested by any regulatory authority, purporting to have jurisdiction over it; (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 contained in this Section 11.6 to any
assignee of or Participant in, or any prospective Lender, assignee of, or Participant in, any of
its rights or obligations under this Agreement; (g) with the consent of Borrower; or (h) to the
extent such Information becomes publicly available other than as a result of a breach of this
Section 11.6 or becomes available to Agent, any Lender or any of their respective Affiliates on a
non-confidential basis from a source other than the Borrower. As used herein, “Information” means
all information (including financial information) received from Borrower or any Subsidiaries
relating to Borrower or any Subsidiary or any of their respective businesses, other than any such
information that is available to Agent or any Lender on a non-confidential basis, and not in
contravention of this Section 11.6, prior to disclosure by Borrower or any Subsidiary thereof.
Any Person required to maintain the confidentiality of Information as provided in this Section
11.6 shall be considered to have complied with its obligation to do so if such person has exercised
the same degree of care to maintain the confidentiality of such Information as such Person would
accord to its own confidential information.

     Section 11.7 Failure or Indulgence Not Waiver; Remedies Cumulative. No
failure or delay on the part of Agent or any Lender to exercise, nor any partial
exercise of, any power, right or privilege hereunder or under any other Loan Documents shall impair
such power, right, or privilege or be construed to be a waiver of any Default or Event of Default.
All rights and remedies existing hereunder or under any other Loan Document are cumulative to and
not exclusive of any rights or remedies otherwise available.

51

 

     Section 11.8 Marshaling; Payments Set Aside. Neither Agent nor any Lender shall be under any obligation to marshal any assets in payment
of any or all of the Obligations. To the extent that Borrower makes payment(s) or Agent enforces
its Liens or Agent or any Lender exercises its right of set-off, and such payment(s) or the
proceeds of such enforcement or set-off is subsequently invalidated, declared to be fraudulent or
preferential, set aside, or required to be repaid by anyone, then to the extent of such recovery,
the Obligations or part thereof originally intended to be satisfied, and all Liens, rights and
remedies therefor, shall be revived and continued in full force and effect as if such payment had
not been made or such enforcement or set-off had not occurred.

     Section 11.9 Lenders’ Obligations Several; Independent Nature of Lenders’ Rights. The
obligation of each Lender hereunder is several and not joint and no Lender shall be
responsible for the obligation or commitment of any other Lender hereunder. In the event that any
Lender at any time should fail to make a Loan as herein provided, the Lenders, or any of them, at
their sole option, may make the Loan that was to have been made by the Lender so failing to make
such Loan. Nothing contained in any Loan Document and no action taken by Agent or any Lender
pursuant hereto or thereto shall be deemed to constitute Lenders to be a partnership, an
association, a joint venture or any other kind of entity. The amounts payable at any time hereunder
to each Lender shall be a separate and independent debt.

     Section 11.10 Severability. Any
provision of the Agreement which 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.

     Section 11.11 Subsidiary References. The
provisions of this Agreement relating to Subsidiaries shall apply only during such times
as the Borrower has one or more Subsidiaries.

     Section 11.12 Captions. The captions or headings herein and any table of contents hereto are for convenience only
and in no way define, limit or describe the scope or intent of any provision of this Agreement.

     Section 11.13 Entire Agreement. This Agreement, and the Notes embody the entire agreement and understanding between the
Borrower and the Agent with respect to the subject matter hereof and thereof. This Agreement
supersedes all prior agreements (including the Existing Credit Agreement) and understandings
relating to the subject matter hereof.

     Section 11.14 Counterparts. This Agreement may be executed in any number of counterparts and by facsimile or e-mail
transmission, all of which taken together shall constitute one and the same instrument, and either
of the parties hereto may execute this Agreement by signing any such counterpart.

     Section 11.15 Governing Law. THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS AGREEMENT, THE NOTES AND EACH OF THE
OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT
GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE
UNITED STATES APPLICABLE TO NATIONAL BANKS.

52

 

     Section 11.16 Consent to Jurisdiction. AT THE OPTION OF THE AGENT, THIS AGREEMENT AND THE NOTES MAY BE ENFORCED IN ANY FEDERAL
COURT OR MINNESOTA STATE COURT SITTING IN MINNEAPOLIS OR ST. PAUL, MINNESOTA; AND THE BORROWER
CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH
FORUMS IS NOT CONVENIENT IN THE EVENT THE BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR
VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
CREATED BY THIS AGREEMENT, THE LENDER AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED
TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED
UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

     Section 11.17 Waiver of Jury Trial. THE
BORROWER WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR
DEFEND ANY RIGHTS (a) UNDER THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR UNDER ANY AMENDMENT,
INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION
HEREWITH OR (b) ARISING FROM ANY
BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH
ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     Section 11.18 Borrower Acknowledgements. The Borrower hereby acknowledges that (a) it has been advised by counsel in the negotiation,
execution and delivery of this Agreement and the other Loan Documents, (b) the Agent has no
fiduciary relationship to the Borrower, the relationship being solely that of debtor and creditor,
(c) no joint venture exists between the Borrower and the Agent, and (d) the Agent undertakes no
responsibility to the Borrower to review or inform the Borrower of any matter in connection with
any phase of the business or operations of the Borrower and the Borrower shall rely entirely upon
its own judgment with respect to its business, and any review, inspection or supervision of, or
information supplied to, the Borrower by the Agent is for the protection of the Agent and neither
the Borrower nor any third party is entitled to rely thereon.

     Section 11.19 Arbitration

          (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to binding
arbitration all claims, disputes and controversies between or among them (and their respective
employees, officers, directors, attorneys, and other agents), whether in tort, contract or
otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the
Loan Documents, and their negotiation, execution, collateralization, administration, repayment,
modification, extension, substitution, formation, inducement, enforcement, default or termination;
or (ii) requests for additional credit.

          (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in Minnesota
selected by the American Arbitration Association (“AAA”); (ii) be governed by the Federal
Arbitration Act (Title 9 of the United States Code), notwithstanding any

53

 

conflicting choice of law
provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such
other administrator as the parties shall mutually agree upon, in accordance with the AAA’s
commercial dispute resolution procedures, unless the claim or counterclaim is at least
$1,000,000.00 exclusive of claimed interest, arbitration fees and costs in which case the
arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex
commercial disputes (the commercial dispute resolution procedures or the optional procedures for
large, complex commercial disputes to be referred to herein, as applicable, as the “Rules”). If
there is any inconsistency between the terms hereof and the Rules, the terms and procedures set
forth herein shall control. Any party who fails or refuses to submit to arbitration following a
demand by any other party shall bear all costs and expenses incurred by such other party in
compelling arbitration of any dispute. Nothing contained herein shall be deemed to be a waiver by
any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar
applicable state law.

          (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement
does not limit the right of any party to (i) foreclose against real or
personal property collateral; (ii) exercise self-help remedies relating to collateral or proceeds
of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies
such as replevin, injunctive relief, attachment or the appointment of a receiver, before during or
after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of
the right or obligation of any party to submit any dispute to arbitration or reference hereunder,
including those arising from the exercise of the actions detailed in sections (i), (ii) and (iii)
of this paragraph.

          (d) Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in
controversy is $5,000,000.00 or less will be decided by a single arbitrator selected according to
the Rules, and who shall not render an award of greater than $5,000,000.00. Any dispute in which
the amount in controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel of
three arbitrators; provided however, that all three arbitrators must actively participate in all
hearings and deliberations. The arbitrator will be a neutral attorney licensed in the State of
Minnesota or a neutral retired judge of the state or federal judiciary of Minnesota, in either case
with a minimum of ten years experience in the substantive law applicable to the subject matter of
the dispute to be arbitrated. The arbitrator will determine whether or not an issue is
arbitratable and will give effect to the statutes of limitation in determining any claim. In any
arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the
arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for
failure to state a claim or motions for summary adjudication. The arbitrator shall resolve all
disputes in accordance with the substantive law of Minnesota and may grant any remedy or relief
that a court of such state could order or grant within the scope hereof and such ancillary relief
as is necessary to make effective any award. The arbitrator shall also have the power to award
recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator
deems necessary to the same extent a judge could pursuant to the Federal Rules of Civil Procedure,
the Minnesota Rules of Civil Procedure or other applicable law. Judgment upon the award rendered
by the arbitrator may be entered in any court having jurisdiction. The institution and maintenance
of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not
constitute a waiver of the right of any party, including the plaintiff, to submit the controversy
or claim to arbitration if any other party contests such action for judicial relief.

54

 

          (e) Discovery. In any arbitration proceeding, discovery will be permitted in accordance with
the Rules. All discovery shall be expressly limited to matters directly relevant to the dispute
being arbitrated and must be completed no later than 20 days before the hearing date. Any requests
for an extension of the discovery periods, or any discovery disputes, will be subject to final
determination by the arbitrator upon a showing that the request for discovery is essential for the
party’s presentation and that no alternative means for obtaining information is available.

          (f) Class Proceedings and Consolidations. No party hereto shall be entitled to join or
consolidate disputes by or against others in any arbitration, except parties who have executed any
Loan Document, or to include in any arbitration any dispute as a representative or member of a
class, or to act in any arbitration in the interest of the general public or in a private attorney
general capacity.

          (g) Payment Of Arbitration Costs And Fees. The arbitrator shall award all costs and expenses
of the arbitration proceeding.

          (h) Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the
parties shall take all action required to conclude any arbitration proceeding within 180 days of
the filing of the dispute with the AAA. No arbitrator or other party to an arbitration proceeding
may disclose the existence, content or results thereof, except for disclosures of information by a
party required in the ordinary course of its business or by applicable law or regulation. If more
than one agreement for arbitration by or between the parties potentially applies to a dispute, the
arbitration provision most directly related to the Loan Documents or the subject matter of the
dispute shall control. This arbitration provision shall survive termination, amendment or
expiration of any of the Loan Documents or any relationship between the parties.

[Signature page follows.]

55

 

     In Witness Whereof, the parties hereto have caused this Credit Agreement to be
executed as of the date first above.

	 	 	 	 	 
	 	BORROWER:

SurModics, Inc.

 	 
	 	By:  	/s/ Philip D. Ankeny
 	 
	 	 	Name:  	Philip D. Ankeny 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer
	 
	 
	 	 	Address: 	9924 West 74th Street

Eden Prairie, MN 55344-3523
	 
	 
	 	 	E-mail:  	pankeny@surmodics.com
	 
	 	 	Facsimile: 	

952/345-3560 	 
	 
	 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Agent and a Lender

 	 
	 	By:  	/s/ Joshua D. Lucas
 	 
	 	 	Name:  	Joshua D. Lucas 	 
	 	 	Title:  	Relationship Manager
	 
	 
	 	 	Address: 	Regional Commercial Banking

MAC N9307-013

7900 Xerxes Avenue South

Bloomington, MN 55431
	 
	 
	 	 	E-mail:  	
joshua.d.lucas@wellsfargo.com	 
	 
	 	 	Facsimile: 	612-316-1621	 
	 

56EX-4.8

Exhibit 4.8

MGIC INVESTMENT CORPORATION,

Issuer

to

U.S. BANK NATIONAL ASSOCIATION,

Trustee

 

SUBORDINATED INDENTURE

 

Dated as of                      ___, 20___

 

Reconciliation and tie between

Trust Indenture Act of 1939 (the “Trust Indenture Act”)

and Indenture

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	 
	 	 
	§310(a)(1)

	 	6.8
	(a)(2)

	 	6.8
	(b)

	 	6.9
	§312(a)

	 	7.1
	(b)

	 	7.2
	(c)

	 	7.2
	§313(a)

	 	7.3
	(b)(2)

	 	7.3
	(c)

	 	7.3
	(d)

	 	7.3
	§314(a)

	 	7.4
	(c)(1)

	 	1.2
	(c)(2)

	 	1.2
	(e)

	 	1.2
	(f)

	 	1.2
	§315(a)

	 	6.1(a)
	(b)

	 	6.1(b)
	(c)

	 	6.1(b)
	(d)

	 	6.1(c)
	(e)

	 	5.15
	§316(a) (last sentence)

	 	1.1
	(a)(1)(A)

	 	5.12
	(a)(1)(B)

	 	5.13
	(b)

	 	5.8
	§317(a)(1)

	 	5.3
	(a)(2)

	 	5.4
	(b)

	 	10.3
	§318(a)

	 	1.8

 

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

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.2. Compliance Certificates and Opinions
	 	 	11	 
	 
	 	 	 	 
	Section 1.3. Form of Documents Delivered to Trustee
	 	 	11	 
	 
	 	 	 	 
	Section 1.4. Acts of Holders
	 	 	12	 
	 
	 	 	 	 
	Section 1.5. Notices, Etc. to the Trustee and the Company
	 	 	14	 
	 
	 	 	 	 
	Section 1.6. Notice to Holders of Securities; Waiver
	 	 	14	 
	 
	 	 	 	 
	Section 1.7. Language of Notices
	 	 	15	 
	 
	 	 	 	 
	Section 1.8. Conflict with Trust Indenture Act
	 	 	15	 
	 
	 	 	 	 
	Section 1.9. Effect of Headings and Table of Contents
	 	 	15	 
	 
	 	 	 	 
	Section 1.10. Successors and Assigns
	 	 	15	 
	 
	 	 	 	 
	Section 1.11. Separability Clause
	 	 	16	 
	 
	 	 	 	 
	Section 1.12. Benefits of Indenture
	 	 	16	 
	 
	 	 	 	 
	Section 1.13. Governing Law
	 	 	16	 
	 
	 	 	 	 
	Section 1.14. Legal Holidays
	 	 	16	 
	 
	 	 	 	 
	Section 1.15. Counterparts
	 	 	16	 
	 
	 	 	 	 
	Section 1.16. Judgment Currency
	 	 	16	 
	 
	 	 	 	 
	Section 1.17. No Security Interest Created
	 	 	17	 
	 
	 	 	 	 
	Section 1.18. Limitation on Individual Liability
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 2 SECURITIES FORMS
	 	 	18	 
	 
	 	 	 	 
	Section 2.1. Forms Generally
	 	 	18	 
	 
	 	 	 	 
	Section 2.2. Form of Trustee’s Certificate of Authentication
	 	 	18	 
	 
	 	 	 	 
	Section 2.3. Securities in Global Form
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 3 THE SECURITIES
	 	 	19	 
	 
	 	 	 	 
	Section 3.1. Amount Unlimited; Issuable in Series
	 	 	19	 
	 
	 	 	 	 
	Section 3.2. Currency; Denominations
	 	 	23	 
	 
	 	 	 	 
	Section 3.3. Execution, Authentication, Delivery and Dating
	 	 	23	 
	 
	 	 	 	 
	Section 3.4. Temporary Securities
	 	 	25	 
	 
	 	 	 	 
	Section 3.5. Registration, Transfer and Exchange
	 	 	26	 
	 
	 	 	 	 
	Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities
	 	 	29	 
	 
	 	 	 	 
	Section 3.7. Payment of Interest and Certain Additional Amounts; Rights to Interest
and Certain Additional Amounts Preserved 
	 	 	30	 
	 
	 	 	 	 
	Section 3.8. Persons Deemed Owners
	 	 	32	 
	 
	 	 	 	 
	Section 3.9. Cancellation
	 	 	32	 

i

 

	 	 	 	 	 
	Section 3.10. Computation of Interest
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 4 SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	33	 
	 
	 	 	 	 
	Section 4.1. Satisfaction and Discharge
	 	 	33	 
	 
	 	 	 	 
	Section 4.2. Defeasance and Covenant Defeasance
	 	 	34	 
	 
	 	 	 	 
	Section 4.3. Application of Trust Money
	 	 	38	 
	 
	 	 	 	 
	ARTICLE 5 REMEDIES
	 	 	39	 
	 
	 	 	 	 
	Section 5.1. Events of Default
	 	 	39	 
	 
	 	 	 	 
	Section 5.2. Acceleration of Maturity; Rescission and Annulment
	 	 	40	 
	 
	 	 	 	 
	Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee
	 	 	41	 
	 
	 	 	 	 
	Section 5.4. Trustee May File Proofs of Claim
	 	 	42	 
	 
	 	 	 	 
	Section 5.5. Trustee May Enforce Claims without Possession of Securities or Coupons
	 	 	43	 
	 
	 	 	 	 
	Section 5.6. Application of Money Collected
	 	 	43	 
	 
	 	 	 	 
	Section 5.7. Limitations on Suits
	 	 	44	 
	 
	 	 	 	 
	Section 5.8. Unconditional Right of Holders to Receive Principal and any Premium,
Interest and Additional Amounts 
	 	 	44	 
	 
	 	 	 	 
	Section 5.9. Restoration of Rights and Remedies
	 	 	45	 
	 
	 	 	 	 
	Section 5.10. Rights and Remedies Cumulative
	 	 	45	 
	 
	 	 	 	 
	Section 5.11. Delay or Omission Not Waiver
	 	 	45	 
	 
	 	 	 	 
	Section 5.12. Control by Holders of Securities
	 	 	45	 
	 
	 	 	 	 
	Section 5.13. Waiver of Past Defaults
	 	 	46	 
	 
	 	 	 	 
	Section 5.14. Waiver of Usury, Stay or Extension Laws
	 	 	46	 
	 
	 	 	 	 
	Section 5.15. Undertaking for Costs
	 	 	46	 
	 
	 	 	 	 
	ARTICLE 6 THE TRUSTEE
	 	 	47	 
	 
	 	 	 	 
	Section 6.1. Certain Duties and Responsibilities
	 	 	47	 
	 
	 	 	 	 
	Section 6.2. Certain Rights of Trustee
	 	 	48	 
	 
	 	 	 	 
	Section 6.3. Notice of Default
	 	 	49	 
	 
	 	 	 	 
	Section 6.4. Not Responsible for Recitals or Issuance of Securities
	 	 	50	 
	 
	 	 	 	 
	Section 6.5. May Hold Securities
	 	 	50	 
	 
	 	 	 	 
	Section 6.6. Money Held in Trust
	 	 	50	 
	 
	 	 	 	 
	Section 6.7. Compensation and Reimbursement
	 	 	50	 
	 
	 	 	 	 
	Section 6.8. Corporate Trustee Required; Eligibility
	 	 	51	 
	 
	 	 	 	 
	Section 6.9. Resignation and Removal; Appointment of Successor
	 	 	51	 
	 
	 	 	 	 
	Section 6.10. Acceptance of Appointment by Successor
	 	 	53	 
	 
	 	 	 	 
	Section 6.11. Merger, Conversion, Consolidation or Succession to Business
	 	 	54	 
	 
	 	 	 	 
	Section 6.12. Appointment of Authenticating Agent
	 	 	54	 

ii

 

	 	 	 	 	 
	ARTICLE 7 HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY
	 	 	56	 
	 
	 	 	 	 
	Section 7.1. Company to Furnish Trustee Names and Addresses of Holders
	 	 	56	 
	 
	 	 	 	 
	Section 7.2. Preservation of Information; Communications to Holders
	 	 	57	 
	 
	 	 	 	 
	Section 7.3. Reports by Trustee
	 	 	57	 
	 
	 	 	 	 
	Section 7.4. Reports by Company
	 	 	57	 
	 
	 	 	 	 
	ARTICLE 8 CONSOLIDATION, MERGER AND SALES
	 	 	58	 
	 
	 	 	 	 
	Section 8.1. Company May Consolidate, Etc., Only on Certain Terms
	 	 	58	 
	 
	 	 	 	 
	Section 8.2. Successor Person Substituted for Company
	 	 	59	 
	 
	 	 	 	 
	ARTICLE 9 SUPPLEMENTAL INDENTURES
	 	 	59	 
	 
	 	 	 	 
	Section 9.1. Supplemental Indentures without Consent of Holders
	 	 	59	 
	 
	 	 	 	 
	Section 9.2. Supplemental Indentures with Consent of Holders
	 	 	60	 
	 
	 	 	 	 
	Section 9.3. Execution of Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	Section 9.4. Effect of Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	Section 9.5. Reference in Securities to Supplemental Indentures
	 	 	62	 
	 
	 	 	 	 
	Section 9.6. Conformity with Trust Indenture Act
	 	 	62	 
	 
	 	 	 	 
	Section 9.7. Notice of Supplemental Indenture
	 	 	62	 
	 
	 	 	 	 
	ARTICLE 10 COVENANTS
	 	 	63	 
	 
	 	 	 	 
	Section 10.1. Payment of Principal, any Premium, Interest and Additional Amounts
	 	 	63	 
	 
	 	 	 	 
	Section 10.2. Maintenance of Office or Agency
	 	 	63	 
	 
	 	 	 	 
	Section 10.3. Money for Securities Payments to Be Held in Trust
	 	 	64	 
	 
	 	 	 	 
	Section 10.4. Additional Amounts
	 	 	66	 
	 
	 	 	 	 
	Section 10.5. Corporate Existence
	 	 	66	 
	 
	 	 	 	 
	Section 10.6. Waiver of Certain Covenants
	 	 	66	 
	 
	 	 	 	 
	Section 10.7. Company Statement as to Compliance; Notice of Certain Defaults
	 	 	67	 
	 
	 	 	 	 
	ARTICLE 11 REDEMPTION OF SECURITIES
	 	 	67	 
	 
	 	 	 	 
	Section 11.1. Applicability of Article
	 	 	67	 
	 
	 	 	 	 
	Section 11.2. Election to Redeem; Notice to Trustee
	 	 	68	 
	 
	 	 	 	 
	Section 11.3. Selection by Trustee of Securities to be Redeemed
	 	 	68	 
	 
	 	 	 	 
	Section 11.4. Notice of Redemption
	 	 	68	 
	 
	 	 	 	 
	Section 11.5. Deposit of Redemption Price
	 	 	70	 
	 
	 	 	 	 
	Section 11.6. Securities Payable on Redemption Date
	 	 	70	 
	 
	 	 	 	 
	Section 11.7. Securities Redeemed in Part
	 	 	71	 
	 
	 	 	 	 
	ARTICLE 12 SINKING FUNDS
	 	 	71	 
	 
	 	 	 	 
	Section 12.1. Applicability of Article
	 	 	71	 
	 
	 	 	 	 
	Section 12.2. Satisfaction of Sinking Fund Payments with Securities
	 	 	72	 

iii

 

	 	 	 	 	 
	Section 12.3. Redemption of Securities for Sinking Fund
	 	 	72	 
	 
	 	 	 	 
	ARTICLE 13  REPAYMENT AT THE OPTION OF HOLDERS
	 	 	73	 
	 
	 	 	 	 
	Section 13.1. Applicability of Article
	 	 	73	 
	 
	 	 	 	 
	ARTICLE 14 SECURITIES IN FOREIGN CURRENCIES
	 	 	73	 
	 
	 	 	 	 
	Section 14.1. Applicability of Article
	 	 	73	 
	 
	 	 	 	 
	ARTICLE 15 MEETINGS OF HOLDERS OF SECURITIES
	 	 	73	 
	 
	 	 	 	 
	Section 15.1. Purposes for Which Meetings May Be Called
	 	 	73	 
	 
	 	 	 	 
	Section 15.2. Call, Notice and Place of Meetings
	 	 	74	 
	 
	 	 	 	 
	Section 15.3. Persons Entitled to Vote at Meetings
	 	 	74	 
	 
	 	 	 	 
	Section 15.4. Quorum; Action
	 	 	74	 
	 
	 	 	 	 
	Section 15.5. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	75	 
	 
	 	 	 	 
	Section 15.6. Counting Votes and Recording Action of Meetings
	 	 	76	 
	 
	 	 	 	 
	ARTICLE 16 SUBORDINATION OF SECURITIES
	 	 	76	 
	 
	 	 	 	 
	Section 16.1. Applicability of Article
	 	 	76	 
	 
	 	 	 	 
	Section 16.2. Securities Subordinate to Senior Debt
	 	 	77	 
	 
	 	 	 	 
	Section 16.3. Payment Over of Proceeds Upon Dissolution, Etc
	 	 	77	 
	 
	 	 	 	 
	Section 16.4. No Payment When Senior Indebtedness in Default
	 	 	78	 
	 
	 	 	 	 
	Section 16.5. Payment Permitted If No Default
	 	 	79	 
	 
	 	 	 	 
	Section 16.6. Subrogation to Rights of Holders of Senior Indebtedness
	 	 	79	 
	 
	 	 	 	 
	Section 16.7. Provisions Solely to Define Relative Rights
	 	 	80	 
	 
	 	 	 	 
	Section 16.8. Trustee to Effectuate Subordination
	 	 	80	 
	 
	 	 	 	 
	Section 16.9. No Waiver of Subordination Provisions
	 	 	80	 
	 
	 	 	 	 
	Section 16.10. Notice to Trustee
	 	 	81	 
	 
	 	 	 	 
	Section 16.11. Reliance on Judicial Order or Certificate of Liquidating Agent
	 	 	81	 
	 
	 	 	 	 
	Section 16.12. Trustee Not Fiduciary for Holders of Senior Indebtedness
	 	 	82	 
	 
	 	 	 	 
	Section 16.13. Rights of Trustee as Holder of Senior Indebtedness; Preservation of
Trustee’s Rights
	 	 	82	 
	 
	 	 	 	 
	Section 16.14. Article Applicable to Paying Agents
	 	 	82	 
	 
	 	 	 	 
	Section 16.15. Defeasance of this Article Twelve
	 	 	82	 

iv

 

     SUBORDINATED INDENTURE, dated as of                      ___, 20                     (the “Indenture”), among MGIC INVESTMENT
CORPORATION, a corporation duly organized and existing under the laws of the State of Wisconsin
(hereinafter called the “Company”), having its principal executive office located at MGIC Plaza,
250 East Kilbourn Avenue, Milwaukee, Wisconsin 53202, and U.S. Bank National Association, a
national banking association, as trustee (hereinafter called the “Trustee”), having a Corporate
Trust Office located at 1555 North RiverCenter Drive, Suite 301, Milwaukee, Wisconsin 53212,
Attention: [                    ].

Recitals

     The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured, subordinated debentures, notes or other evidences
of indebtedness (hereinafter called the “Securities”), unlimited as to principal amount, to bear
such rates of interest, to mature at such time or times, to be issued in one or more series and to
have such other provisions as shall be fixed as hereinafter provided.

     The Company has duly authorized the execution and delivery of this Indenture. All things
necessary to make this Indenture a valid agreement of the Company, in accordance with its terms,
have been done.

     This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended,
and the rules and regulations of the Securities and Exchange Commission promulgated thereunder that
are required to be part of this Indenture and, to the extent applicable, shall be governed by such
provisions.

     Now, therefore, this Indenture witnesseth:

     For and in consideration of the premises and the purchase of the Securities by the Holders (as
herein defined) thereof, it is mutually covenanted and agreed, for the equal and proportionate
benefit of all Holders of the Securities or of any series thereof and any Coupons (as herein
defined) as follows:

ARTICLE 1

Definitions and other Provisions of General Application

     Section 1.1. Definitions.

     Except as otherwise expressly provided in or pursuant to this Indenture or unless the context
otherwise requires, for all purposes of this Indenture:

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

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

 

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

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

     (5) the word “or” is always used inclusively (for example, the phrase “A or B” means “A
or B or both,” not “either A or B but not both”).

     Certain terms used principally in certain Articles hereof are defined in those Articles.

     “Act,” when used with respect to any Holders, has the meaning specified in Section 1.4.

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

     “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 the meanings correlative to the foregoing.

     “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.12 to
act on behalf of the Trustee to authenticate Securities of one or more series.

     “Authorized Newspaper” means a newspaper, in an official language of the place of publication
or in the English language, customarily published on each day that is a Business Day in the place
of publication, whether or not published on days that are Legal Holidays in the place of
publication, and of general circulation in each place in connection with which the term is used or
in the financial community of each such place. Where successive publications are required to be
made in Authorized Newspapers, the successive publications may be made in the same or in different
newspapers in the same city meeting the foregoing requirements and in each case on any day that is
a Business Day in the place of publication.

     “Authorized Officer” means, when used with respect to the Company, the Chief Executive
Officer, the Chief Financial Officer, the President, any Vice President, the Treasurer, the
Controller, the Chief Accounting Officer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company.

2

 

     “Bearer Security” means any Security in the form established pursuant to Section 2.1 which is
payable to bearer.

     “Board of Directors” means the board of directors of the Company or any committee of that
board duly authorized to act generally or in any particular respect for the Company hereunder.

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

     “Business Day,” with respect to any Place of Payment or other location, means, unless
otherwise specified with respect to any Securities pursuant to Section 3.1, any day other than a
Saturday, Sunday or other day on which banking institutions in such Place of Payment or other
location are authorized or obligated by law, regulation or executive order to close.

     “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, including Preferred Stock, but excluding any debt securities convertible
into such equity.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934, as amended, or, if at any time after the
execution of this Indenture such Commission is not existing and performing the duties now assigned
to it under the Trust Indenture Act, then the body performing such duties at such time.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person, and any other obligor upon
the Securities.

     “Company Request” and “Company Order” mean, respectively, a written request or order, as the
case may be, signed in the name of the Company by an Authorized Officer, and delivered to the
Trustee.

     “Conversion Event” means the cessation of use of (i) a Foreign Currency both by the government
of the country or the confederation which issued such Foreign Currency and for the settlement of
transactions by a central bank or other public institutions of or within the international banking
community or (ii) any currency unit or composite currency for the purposes for which it was
established.

     “Corporate Trust Office” means the corporate trust office of the Trustee at which at any
particular time its corporate trust business with respect to the Indenture shall be administered,
which office at the date of original execution of this Indenture is located at 1555 North
RiverCenter Drive, Suite 301, Milwaukee, Wisconsin 53212, Attention:
[                                        ], except for purposes of Section 10.2, such term shall mean

3

 

the office or agency of the Trustee in the Borough of Manhattan, the City of New York, which
office at the date hereof is located at [                                        ].

     “Corporation” includes corporations, limited liability companies, partnerships (limited or
otherwise), associations, joint-stock companies, trusts and any other form of business entity.

     “Coupon” means any interest coupon appertaining to a Bearer Security.

     “Currency,” with respect to any payment, deposit or other transfer in respect of the principal
of or any premium or interest on or any Additional Amounts with respect to any Security, means
Dollars or the Foreign Currency, as the case may be, in which such payment, deposit or other
transfer is required to be made by or pursuant to the terms hereof or such Security and, with
respect to any other payment, deposit or transfer pursuant to or contemplated by the terms hereof
or such Security, means Dollars.

     “CUSIP number” or “Committee on Uniform Security Information Procedures number” means the
alphanumeric designation assigned to a Security developed by the American Banker’s Association that
uniquely identifies securities trading in the United States. The CUSIP number consists of 9
digits, the first 6 identify the issue and 7-9 identify the issuer.

     “Defaulted Interest” has the meaning specified in Section 3.7.

     “Dollars” or “$” means a dollar or other equivalent unit of legal tender for payment of public
or private debts in the United States of America.

     “Event of Default” has the meaning specified in Section 5.1.

     “Foreign Currency” means any currency, currency unit or composite currency, including, without
limitation, the euro, issued by the government of one or more countries other than the United
States of America or by any recognized confederation or association of such governments.

     “Government Obligations” means securities which are (i) direct obligations of the United
States of America or the other government or governments which issued the Foreign Currency in which
the principal of or any premium or interest on such Security or any Additional Amounts in respect
thereof shall be payable, in each case where the payment or payments thereunder are supported by
the full faith and credit of such government or governments or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the United States of
America or such other government or governments, in each case where the timely payment or payments
thereunder are unconditionally guaranteed as a full faith and credit obligation by the United
States of America or such other government or governments, and which, in the case of (i) or (ii),
are not callable or redeemable at the option of the issuer or issuers thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with respect to any
such Government Obligation or a specific payment of interest on or principal of or other amount
with respect to any such Government Obligation held by such custodian for the account of the holder
of a depository receipt, provided that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depository receipt from any
amount received by the custodian in respect of the

4

 

Government Obligation or the specific payment of interest on or principal of or other amount
with respect to the Government Obligation evidenced by such depository receipt.

     “Holder,” in the case of any Registered Security, means the Person in whose name such Security
is registered in the Security Register and, in the case of any Bearer Security, means the bearer
thereof and, in the case of any Coupon, means the bearer thereof.

     “Indenture” means this instrument as it may from time to time be supplemented or amended by
one or more indentures supplemental hereto entered into pursuant to the applicable provisions
hereof and, with respect to any Security, by the terms and provisions of such Security and any
Coupon appertaining thereto established pursuant to Section 3.1 (as such terms and provisions may
be amended pursuant to the applicable provisions hereof).

     “Independent Public Accountants” means accountants or a firm of accountants that, with respect
to the Company and any other obligor under the Securities or the Coupons, are independent public
accountants within the meaning of the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the Commission thereunder, who may be the independent public accountants
regularly retained by the Company or who may be other independent public accountants. Such
accountants or firm shall be entitled to rely upon any Opinion of Counsel as to the interpretation
of any legal matters relating to this Indenture or certificates required to be provided hereunder.

     “Indexed Security” means a Security the terms of which provide that the principal amount
thereof payable at Stated Maturity may be more or less than the principal face amount thereof at
original issuance.

     “Interest,” with respect to any Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity and, when used with respect to
a Security which provides for the payment of Additional Amounts pursuant to Section 10.4, includes
such Additional Amounts.

     “Interest Payment Date,” with respect to any Security, means the Stated Maturity of an
installment of interest on such Security.

     “Junior Subordinated Payment” has the meaning specified in Section 16.3.

     “Judgment Currency” has the meaning specified in Section 1.16.

     “Legal Holidays” means (i) any day on which banking institutions in the city of New York, New
York or in the city of Milwaukee, Wisconsin are authorized or required by law or executive order to
remain closed or (ii) a day on which the corporate trust office of the Trustee is closed for
business.

     “Maturity,” with respect to any Security, means the date on which the principal of such
Security or an installment of principal becomes due and payable as provided in or pursuant to this
Indenture, whether at the Stated Maturity or by declaration of acceleration, notice of redemption
or repurchase, notice of option to elect repayment or otherwise, and includes the Redemption Date.

5

 

     “New York Banking Day” has the meaning specified in Section 1.16.

     “Office” or “Agency,” with respect to any Securities, means an office or agency of the Company
maintained or designated in a Place of Payment for such Securities pursuant to Section 10.2 or any
other office or agency of the Company maintained or designated for such Securities pursuant to
Section 10.2 or, to the extent designated or required by Section 10.2 in lieu of such office or
agency, the Corporate Trust Office of the Trustee.

     “Officer’s Certificate” means a certificate signed by an Authorized Officer that is delivered
to the Trustee.

     “Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel
for the Company, or other counsel who shall be reasonably acceptable to the Trustee, that, if
required by the Trust Indenture Act, complies with the requirements of Section 314(e) of the Trust
Indenture Act.

     “Original Issue Discount Security” means a Security issued pursuant to this Indenture which
provides for declaration of an amount less than the principal face amount thereof to be due and
payable upon acceleration pursuant to Section 5.2.

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

	 	(a)	 	any such Security theretofore cancelled by the Trustee or the
Security Registrar or delivered to the Trustee or the Security Registrar for
cancellation;
	 
	 	(b)	 	any such Security for whose payment at the Maturity thereof
money in the necessary amount has been theretofore deposited pursuant hereto
(other than pursuant to Section 4.2) with the Trustee or any Paying Agent
(other than the Company) in trust or set aside and segregated in trust by the
Company (if the Company shall act as its own Paying Agent) for the Holders of
such Securities and any Coupons appertaining thereto, provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee
has been made;
	 
	 	(c)	 	any such Security with respect to which the Company has
effected defeasance pursuant to the terms hereof, except to the extent provided
in Section 4.2;
	 
	 	(d)	 	any such Security which has been paid pursuant to Section 3.6
or in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, unless there shall have been
presented to the Trustee proof satisfactory to it that such Security is held by
a bona fide purchaser in whose hands such Security is a valid obligation of the
Company; and

6

 

	 	(e)	 	any such Security converted or exchanged as contemplated by
this Indenture into securities of the Company or another issuer, if the terms
of such Security provide for such conversion or exchange pursuant to Section
3.1;

provided, however, that in determining whether the Holders of the requisite principal amount of
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder or are present at a meeting of Holders of Securities for quorum purposes, (i) the
principal amount of an Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall be equal to the
amount of the principal thereof that pursuant to the terms of such Original Issue Discount Security
would be declared (or shall have been declared to be) due and payable upon a declaration of
acceleration thereof pursuant to Section 5.2 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such determination and that
shall be deemed Outstanding for such purposes shall be equal to the principal face amount of such
Indexed Security at original issuance, unless otherwise provided in or pursuant to this Indenture,
and (iii) the principal amount of a Security denominated in a Foreign Currency shall be the Dollar
equivalent, determined on the date of original issuance of such Security, of the principal amount
(or, in the case of an Original Issue Discount Security, the Dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in (i) above) of such
Security, and (iv) Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in making any such
determination or relying upon any such request, demand, authorization, direction, notice, consent
or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
shall be so disregarded. Securities so owned which shall have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A) the
pledgee’s right so to act with respect to such Securities and (B) that the pledgee is not the
Company or any other obligor upon the Securities or any Coupons appertaining thereto or an
Affiliate of the Company or such other obligor.

     “Paying Agent” means any Person authorized by the Company to pay the principal of, or any
premium or interest on, or any Additional Amounts with respect to, any Security or any Coupon on
behalf of the Company.

     “Payment Blockage Period” has the meaning specified in Section 16.4.

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

     “Place of Payment,” with respect to any Security, means the place or places where the
principal of, or any premium or interest on, or any Additional Amounts with respect to such
Security are payable as provided in or pursuant to this Indenture or such Security.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same indebtedness as that evidenced by such particular

7

 

Security; and, for the purposes of this definition, any Security authenticated and delivered
pursuant to Section 3.6 in exchange for or in lieu of a lost, destroyed, mutilated or stolen
Security or any Security to which a mutilated, destroyed, lost or stolen Coupon appertains shall be
deemed to evidence the same indebtedness as the lost, destroyed, mutilated or stolen Security or
the Security to which a mutilated, destroyed, lost or stolen Coupon appertains.

     “Preferred Stock” in respect of any Corporation means Capital Stock of any class or classes
(however designated) which is preferred as to the payment of dividends or other distributions, or
as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of
such Corporation, over shares of Capital Stock of any other class of such Corporation.

     “Proceeding” has the meaning specified in Section 16.3.

     “Redemption Date,” with respect to any Security or portion thereof to be redeemed, means the
date fixed for such redemption by or pursuant to this Indenture or such Security.

     “Redemption Price,” with respect to any Security or portion thereof to be redeemed, means the
price at which it is to be redeemed as determined by or pursuant to this Indenture or such
Security.

     “Registered Security” means any Security established pursuant to Section 3.1 which is
registered in a Security Register.

     “Regular Record Date” for the interest payable on any Registered Security on any Interest
Payment Date therefor means the date, if any, specified in or pursuant to this Indenture or such
Security as the “Regular Record Date.”

     “Required Currency” has the meaning specified in Section 1.16.

     “Responsible Officer” means any vice president, any assistant vice president, the secretary,
any assistant secretary, the treasurer, any assistant treasurer, or any trust officer or any other
authorized officer of the Trustee customarily performing functions similar to those performed by
any of the above designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his or her knowledge of and
familiarity with the particular subject.

     “Securities Payment” has the meaning specified in Section 16.3.

     “Security” or “Securities” has the meaning specified in the Recitals.

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.5.

     “Senior Indebtedness” means the principal of, premium, if any, and interest on::

     (1) all indebtedness of the Company, whether outstanding on the date of the issuance of the
Securities or thereafter created, incurred or assumed, which is for money borrowed, or

8

 

which is evidenced by a note, bond, indenture or similar instrument (such indebtedness in this
definition is referred to as “Indebtedness”);

     (2) all of the Company’s obligations under leases required or permitted to be capitalized
under GAAP;

     (3) all of the Company’s reimbursement obligations with respect to any letter of credit,
banker’s acceptance, security purchase facility or similar credit transactions;

     (4) all of the Company’s conditional sales agreements or agreements or obligations to pay
deferred purchase prices, other than in the ordinary course of business;

     (5) all of the Company’s obligations under interest rate swap agreements, interest rate cap
agreements, interest rate collar agreements and other agreements or arrangements designed to
protect against fluctuations in interest rates or foreign exchange rates;

     (6) all obligations of the types referred to in clauses (1) through (5) above of another
Person, the payment of which the Company is responsible or liable for as obligor, guarantor or
otherwise; and

     (7) amendments, modifications, renewals, extensions, deferrals and refundings of any of the
above types of indebtedness.

Senior Indebtedness shall continue to be Senior Indebtedness and to be entitled to the benefits of
the subordination provisions of this Indenture irrespective of any amendment, modification or
waiver of any term of the Senior Indebtedness, or any extension or renewal of the Senior
Indebtedness. Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness shall
not include (i) trade accounts payable or indebtedness incurred for the purchase of goods,
materials or property in the ordinary course of business, or for services obtained in the ordinary
course of business or for other liabilities arising in the ordinary course of business, (ii) any
indebtedness which by its terms is expressly made pari passu with or subordinated to the
Securities, (iii) obligations of the Company owed to its Subsidiaries, (iv) the Indebtedness of the
Company that is the 9% Convertible Junior Subordinated Debentures issued under the Indenture dated
as of March 28, 2008, as the same may be amended or modified from time to time, or (v) any
Indebtedness of the Company (and any accrued and unpaid interest in respect of such Indebtedness)
which by its terms is subordinate or junior in right of payment and similar matters to any other
Indebtedness of the Company unless such Indebtedness is expressly made senior to the Securities (in
which event such Indebtedness shall be Senior Indebtedness with the same effect as if expressly
listed as part of clauses (a) through (e) above); for the avoidance of doubt, it is understood that
any Indebtedness that is subordinate or junior in right of payment and similar matters to any other
Indebtedness of the Company but is not expressly made senior to the Securities shall be parri passu
with the Securities.

     “Senior Nonmonetary Default” has the meaning specified in Section 16.4.

     “Senior Payment Default” has the meaning specified in Section 16.4.

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     “Special Record Date” for the payment of any Defaulted Interest on any Registered Security
means a date fixed by the Company pursuant to Section 3.7.

     “Stated Maturity,” with respect to any Security or any installment of principal thereof or
interest thereon, or any Additional Amounts with respect thereto, means the date established by or
pursuant to this Indenture or such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is, or such Additional Amounts are, due and
payable, in each case, as such date may be extended in accordance with Article 16 hereof.

     “Subsidiary” means, in respect of any Person, any Corporation, limited or general partnership
or other business entity of which at the time of determination more than 50% of the voting power of
the shares of its Capital Stock or other interests (including partnership interests) entitled
(without regard to the occurrence of any contingency) to vote in the election of directors,
managers, trustees or similar governing Persons thereof is owned or controlled, directly or
indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or
(iii) one or more Subsidiaries of such Person.

     “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, and any reference
herein to the Trust Indenture Act or a particular provision thereof shall mean such Act or
provision, as the case may be, as amended or replaced from time to time or as supplemented from
time to time by rules or regulations adopted by the Commission under or in furtherance of the
purposes of such Act or provision, as the case may be.

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

     “United States,” except as otherwise provided in or pursuant to this Indenture or any
Security, means the United States of America (including the states thereof and the District of
Columbia), its territories and possessions and other areas subject to its jurisdiction.

     “United States Alien,” except as otherwise provided in or pursuant to this Indenture or any
Security, means any Person who, for United States Federal income tax purposes, is a foreign
corporation, a non resident alien individual, a non resident alien fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non resident alien individual or a non resident alien
fiduciary of a foreign estate or trust.

     “U.S. Depository” or “Depository” means, with respect to any Security issuable or issued in
the form of one or more global Securities, the Person designated as U.S. Depository or Depository
by the Company in or pursuant to this Indenture, which Person must be, to the extent required by
applicable law or regulation, a clearing agency registered under the Securities Exchange Act of
1934, as amended, and, if so provided with respect to any Security, any successor to such Person.
If at any time there is more than one such Person, “U.S. Depository”

10

 

or “Depository” shall mean, with respect to any Securities, the qualifying entity which has
been appointed with respect to such Securities.

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

     Section 1.2. Compliance Certificates and Opinions.

     Except as otherwise expressly provided in this Indenture, upon any application or request by
the Company to the Trustee to take any action under any provision of this Indenture, the Company
shall furnish to the Trustee an Officer’s Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if
any, have been complied with, except that in the case of any such application or request as to
which the furnishing of such documents or any of them is specifically required by any provision of
this Indenture relating to such particular application or request, no additional certificate or
opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (1) a statement that the individual signing such certificate or opinion has read such
condition or covenant and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of such individual, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to whether
or not such condition or covenant has been complied with; and

     (4) a statement as to whether, in the opinion of such individual, such condition or
covenant has been complied with.

     Section 1.3. Form of Documents Delivered to Trustee.

     In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to
legal matters, upon an Opinion of Counsel, provided that such officer, after reasonable inquiry,
has no reason to believe and does not believe that the Opinion of Counsel with respect to

11

 

the matters upon which his certificate or opinion is based is erroneous. Any such Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Company stating that the information with
respect to such factual matters is in the possession of the Company, provided that such counsel,
after reasonable inquiry, has no reason to believe and does not believe that the certificate or
opinion or representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture or any
Security, they may, but need not, be consolidated and form one instrument.

     Section 1.4. Acts of Holders.

     (1) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by or pursuant to this Indenture to be given or taken by Holders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by an agent duly appointed in writing. If, but only if, Securities of a series are
issuable as Bearer Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided in or pursuant to this Indenture to be given or taken by Holders of
Securities of such series may, alternatively, be embodied in and evidenced by the record of Holders
of Securities of such series voting in favor thereof, either in person or by proxies duly appointed
in writing, at any meeting of Holders of Securities of such series duly called and held in
accordance with the provisions of Article 15, or a combination of such instruments and any such
record. Except as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments and any such record (and
the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Holders signing such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or of the holding by
any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee and the Company and any
agent of the Trustee and the Company, if made in the manner provided in this section. The record
of any meeting of Holders of Securities shall be proved in the manner provided in Section 15.6.

     Without limiting the generality of this Section 1.4, unless otherwise provided in or pursuant
to this Indenture, a Holder, including a U.S. Depository that is a Holder of a global Security, may
make, give or take, by a proxy or proxies, duly appointed in writing, any request, demand,
authorization, direction, notice, consent, waiver or other Act provided in or pursuant to this
Indenture to be made, given or taken by Holders, and a U.S. Depository that is a Holder of a global
Security may provide its proxy or proxies to the beneficial owners of interests in any such global
Security through such U.S. Depository’s standing instructions and customary practices.

     The Company shall fix a record date for the purpose of determining the Persons who are
beneficial owners of interest in any permanent global Security held by a U.S. Depository entitled
under the procedures of such U.S. Depository to make, give or take, by a proxy or proxies duly
appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or

12

 

other Act provided in or pursuant to this Indenture to be made, given or taken by Holders. If
such a record date is fixed, the Holders on such record date or their duly appointed proxy or
proxies, and only such Persons, shall be entitled to make, give or take such request, demand,
authorization, direction, notice, consent, waiver or other Act, whether or not such Holders remain
Holders after such record date. No such request, demand, authorization, direction, notice,
consent, waiver or other Act shall be valid or effective if made, given or taken more than 90 days
after such record date.

     (2) The fact and date of the execution by any Person of any such instrument or writing
referred to in this Section 1.4 may be proved in any reasonable manner; and the Trustee may in any
instance require further proof with respect to any of the matters referred to in this section.

     (3) The ownership, principal amount and serial numbers of Registered Securities held by any
Person, and the date of the commencement and the date of the termination of holding the same, shall
be proved by the Security Register.

     (4) The ownership, principal amount and serial numbers of Bearer Securities held by any
Person, and the date of the commencement and the date of the termination of holding the same, may
be proved by the production of such Bearer Securities or by a certificate executed, as depositary,
by any trust company, bank, banker or other depositary reasonably acceptable to the Company,
wherever situated, if such certificate shall be deemed by the Company and the Trustee to be
satisfactory, showing that at the date therein mentioned such Person had on deposit with such
depositary, or exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer Securities, if such
certificate or affidavit is deemed by the Trustee to be satisfactory. The Trustee and the Company
may assume that such ownership of any Bearer Security continues until (i) another certificate or
affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (ii)
such Bearer Security is produced to the Trustee by some other Person, or (iii) such Bearer Security
is surrendered in exchange for a Registered Security, or (iv) such Bearer Security is no longer
Outstanding. The ownership, principal amount and serial numbers of Bearer Securities held by the
Person so executing such instrument or writing and the date of the commencement and the date of the
termination of holding the same may also be proved in any other manner which the Company and the
Trustee deem sufficient.

     (5) If the Company shall solicit from the Holders of any Registered Securities any request,
demand, authorization, direction, notice, consent, waiver or other Act, the Company may at its
option (but is not obligated to), by Board Resolution, fix in advance a record date for the
determination of Holders of Registered Securities entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other Act may be given
before or after such record date, but only the Holders of Registered Securities of record at the
close of business on such record date shall be deemed to be Holders for the purpose of determining
whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent, waiver or other Act,
and for that purpose the Outstanding Securities shall be computed as of such record date; provided
that no such authorization, agreement or consent by the Holders

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of Registered Securities shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record date.

     (6) Any request, demand, authorization, direction, notice, consent, waiver or other Act by the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done or suffered to be done by the Trustee, any Security Registrar,
any Paying Agent or the Company in reliance thereon, whether or not notation of such Act is made
upon such Security.

     Section 1.5. Notices, Etc. to the Trustee and the Company.

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of Holders
or other document provided or permitted by this Indenture to be made upon, given or furnished to,
or filed with,

     (1) the Trustee by any Holder or the Company shall be sufficient for every purpose hereunder
if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office,
or

     (2) the Company by the Trustee or any Holder shall be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid,
to the Company addressed to the attention of its Chief Financial Officer, Controller or Secretary,
at the address of its principal office specified in the first paragraph of this instrument or at
any other address previously furnished in writing to the Trustee by the Company.

     Section 1.6. Notice to Holders of Securities; Waiver.

     Except as otherwise expressly provided in or pursuant to this Indenture, where this Indenture
provides for notice to Holders of Securities of any event,

     (1) such notice shall be sufficiently given to Holders of Registered Securities if in writing
and mailed, first class postage prepaid, to each Holder of a Registered Security affected by such
event, at his address as it appears in the Security Register, not later than the latest date, and
not earlier than the earliest date, prescribed for the giving of such notice; and

     (2) such notice shall be sufficiently given to Holders of Bearer Securities, if any, if
published in an Authorized Newspaper in The City of New York and, if such Securities are then
listed on any stock exchange outside the United States, in an Authorized Newspaper in such city as
the Company shall advise the Trustee that such stock exchange so requires, on a Business Day at
least twice, the first such publication to be not earlier than the earliest date and the second
such publication not later than the latest date prescribed for the giving of such notice.

     In any case where notice to Holders of Registered Securities is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a
Registered Security shall affect the sufficiency of such notice with respect to other Holders of
Registered Securities or the sufficiency of any notice to Holders of Bearer Securities given as

14

 

provided herein. Any notice which is mailed in the manner herein provided shall be
conclusively presumed to have been duly given or provided. In the case by reason of the suspension
of regular mail service or by reason of any other cause it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

     In case by reason of the suspension of publication of any Authorized Newspaper or Authorized
Newspapers or by reason of any other cause it shall be impracticable to publish any notice to
Holders of Bearers Securities as provided above, then such notification to Holders of Bearer
Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to
such Holders for every purpose hereunder. Neither failure to give notice by publication to Holders
of Bearer Securities as provided above, nor any defect in any notice so published, shall affect the
sufficiency of any notice mailed to Holders of Registered Securities as provided above.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by the Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Holders of Securities shall be filed
with the Trustee, but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

     Section 1.7. Language of Notices.

     Any request, demand, authorization, direction, notice, consent, election or waiver required or
permitted under this Indenture shall be in the English language, except that, if the Company so
elects, any published notice may be in an official language of the country of publication.

     Section 1.8. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with any duties under any required
provision of the Trust Indenture Act imposed hereon by Section 318(c) thereof, such required
provision shall control.

     Section 1.9. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     Section 1.10. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

15

 

     Section 1.11. Separability Clause.

     In case any provision in this Indenture, any Security or any Coupon shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     Section 1.12. Benefits of Indenture.

     Nothing in this Indenture, any Security or any Coupon, express or implied, shall give to any
Person, other than the parties hereto, any Security Registrar, any Paying Agent, any Authenticating
Agent and their successors hereunder and the Holders of Securities or Coupons, any benefit or any
legal or equitable right, remedy or claim under this Indenture.

     Section 1.13. Governing Law.

     This Indenture, the Securities and any Coupons shall be governed by and construed in
accordance with the laws of the State of New York applicable to agreements made or instruments
entered into and, in each case, performed in said state.

     Section 1.14. Legal Holidays.

     Unless otherwise specified in or pursuant to this Indenture or any Securities, in any case
where any Interest Payment Date, Stated Maturity or Maturity of any Security, or the last date on
which a Holder has the right to convert or exchange Securities of a series that are convertible or
exchangeable, shall be a Legal Holiday at any Place of Payment, then (notwithstanding any other
provision of this Indenture, any Security or any Coupon other than a provision in any Security or
Coupon that specifically states that such provision shall apply in lieu hereof) payment need not be
made at such Place of Payment on such date, and such Securities need not be converted or exchanged
on such date but such payment may be made, and such Securities may be converted or exchanged, on
the next succeeding day that is a Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date or at the Stated Maturity or Maturity or on such
last day for conversion or exchange, and no interest shall accrue on the amount payable on such
date or at such time for the period from and after such Interest Payment Date, Stated Maturity,
Maturity or last day for conversion or exchange, as the case may be, to such next succeeding
Business Day.

     Section 1.15. Counterparts.

     This Indenture may be executed in several counterparts, each of which shall be an original and
all of which shall constitute but one and the same instrument.

     Section 1.16. Judgment Currency.

     The Company agrees, to the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or Additional Amounts on the
Securities of any series (the “Required Currency”) into a currency in which a judgment will be
rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in

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

     Section 1.17. No Security Interest Created.

     Nothing in this Indenture or in any Security, express or implied, shall be construed to
constitute a security interest under the Uniform Commercial Code or similar legislation, as now or
hereafter enacted and in effect in any applicable jurisdiction.

     Section 1.18. Limitation on Individual Liability.

     No recourse under or upon any obligation, covenant or agreement contained in this Indenture or
in any Security, or for any claim based thereon or otherwise in respect thereof, shall be had
against any incorporator, shareholder, officer, director, member, manager, partner or other similar
Person, as such, past, present or future, of the Company, either directly or through the Company,
whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that this Indenture and the
obligations issued hereunder are solely obligations of the Company, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders,
officers, directors, members, managers, partners or other similar Persons, as such, of the Company,
or any of them, because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture or in any Security
or implied therefrom; and that any and all such personal liability of every name and nature, either
at common law or in equity or by constitution or statute, of, and any and all such rights and
claims against, every such incorporator, shareholder, officer, director, member, manager, partner
or other similar Person, as such, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this Indenture or in
any Security or implied therefrom, are hereby expressly waived and released as a condition of, and
as a consideration for, the execution of this Indenture and the issuance of such Security.

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ARTICLE 2

Securities Forms

     Section 2.1. Forms Generally.

     Each Registered Security, Bearer Security, Coupon and temporary or permanent global Security
issued pursuant to this Indenture shall be in the form established by or pursuant to a Board
Resolution or in one or more indentures supplemental hereto, shall have such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by or
pursuant to this Indenture or any indenture supplemental hereto and may have such letters, numbers
or other marks of identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Security or Coupon as evidenced
by their execution of such Security or Coupon.

     Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities
shall be issuable in registered form without Coupons and shall not be issuable upon the exercise of
warrants.

     Definitive Securities and definitive Coupons shall be printed, lithographed or engraved or
produced by any combination of these methods on a steel engraved border or steel engraved borders
or may be produced in any other manner, all as determined by the officers of the Company executing
such Securities or Coupons, as evidenced by their execution of such Securities or Coupons.

     Section 2.2. Form of Trustee’s Certificate of Authentication.

     Subject to Section 6.12, the Trustee’s certificate of authentication shall be in substantially
the following form:

     This is one of the Securities of the series designated therein referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

By:

Authorized Officer

     Section 2.3. Securities in Global Form.

     Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities
shall not be issuable in temporary or permanent global form. If Securities of a series shall be
issuable in global form, any such Security may provide that it or any number of such Securities
shall represent the aggregate amount of all Outstanding Securities of such series (or such lesser
amount as is permitted by the terms thereof) from time to time endorsed thereon and may also
provide that the aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges. Any endorsement of any

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Security in global form to reflect the amount, or any increase or decrease in the amount, or
changes in the rights of Holders, of Outstanding Securities represented thereby shall be made in
such manner and by such Person or Persons as shall be specified therein or in the Company Order to
be delivered pursuant to Section 3.3 or 3.4 with respect thereto. Subject to the provisions of
Section 3.3 and, if applicable, Section 3.4, the Trustee shall deliver and redeliver, in each case
at the Company’s expense, any Security in permanent global form in the manner and upon instructions
given by the Person or Persons specified therein or in the applicable Company Order. If a Company
Order pursuant to Section 3.3 or 3.4 has been, or simultaneously is, delivered, any instructions by
the Company with respect to a Security in global form shall be in writing but need not be
accompanied by or contained in an Officer’s Certificate and need not be accompanied by an Opinion
of Counsel.

     Notwithstanding the provisions of Section 3.7, unless otherwise specified in or pursuant to
this Indenture or any Security, payment of principal of, any premium and interest on, and any
Additional Amounts in respect of, any Security in temporary or permanent global form shall be made
to the Person or Persons specified therein.

     Notwithstanding the provisions of Section 3.8 and except as provided in the preceding
paragraph, the Company, the Trustee and any agent of the Company or the Trustee shall treat as the
Holder of such principal amount of Outstanding Securities represented by a global Security (i) in
the case of a global Security in registered form, the Holder of such global Security in registered
form, or (ii) in the case of a global Security in bearer form, the Person or Persons specified
pursuant to Section 3.1.

ARTICLE 3

The Securities

     Section 3.1. Amount Unlimited; Issuable in Series.

     The aggregate principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited. The Securities may be issued in one or more series.

     With respect to any Securities to be authenticated and delivered hereunder, there shall be
established in or pursuant to a Board Resolution and set forth in an Officer’s Certificate, or
established in one or more indentures supplemental hereto,

     (1) the title of such Securities and the series in which such Securities shall be included;

     (2) any limit upon the aggregate principal amount of the Securities of such title or the
Securities of such series which may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in
lieu of, other Securities of such series pursuant to Section 3.4, 3.5, 3.6, 9.5 or 11.7, upon
repayment in part of any Registered Security of such series pursuant to Article 13, upon surrender
in part of any Registered Security for conversion into other securities of the Company or exchange
for securities of another issuer pursuant to its terms, or pursuant to or as contemplated by the
terms of such Securities);

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     (3) if such Securities are to be issuable as Registered Securities, as Bearer Securities or
alternatively as Bearer Securities and Registered Securities, and whether the Bearer Securities are
to be issuable with Coupons, without Coupons or both, and any restrictions applicable to the offer,
sale or delivery of the Bearer Securities and the terms, if any, upon which Bearer Securities may
be exchanged for Registered Securities and vice versa;

     (4) if any of such Securities are to be issuable in global form, when any of such Securities
are to be issuable in global form and (i) whether such Securities are to be issued in temporary or
permanent global form or both, (ii) whether beneficial owners of interests in any such global
Security may exchange such interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such exchanges may occur,
if other than in the manner specified in Section 3.5, and (iii) the name of the Depository or the
U.S. Depository, as the case may be, with respect to any such global Security;

     (5) if any of such Securities are to be issuable as Bearer Securities or in global form, the
date as of which any such Bearer Security or global Security shall be dated (if other than the date
of original issuance of the first of such Securities to be issued);

     (6) if any of such Securities are to be issuable as Bearer Securities, whether interest in
respect of any portion of a temporary Bearer Security in global form payable in respect of an
Interest Payment Date therefor prior to the exchange, if any, of such temporary Bearer Security for
definitive Securities shall be paid to any clearing organization with respect to the portion of
such temporary Bearer Security held for its account and, in such event, the terms and conditions
(including any certification requirements) upon which any such interest payment received by a
clearing organization will be credited to the Persons entitled to interest payable on such Interest
Payment Date;

     (7) the date or dates, or the method or methods, if any, by which such date or dates shall be
determined, on which the principal of such Securities is payable;

     (8) the rate or rates at which such Securities shall bear interest, if any, or the method or
methods, if any, by which such rate or rates are to be determined, the date or dates, if any, from
which such interest shall accrue or the method or methods, if any, by which such date or dates are
to be determined, the Interest Payment Dates, if any, on which such interest shall be payable and
the Regular Record Date, if any, for the interest payable on Registered Securities on any Interest
Payment Date, whether and under what circumstances Additional Amounts on such Securities or any of
them shall be payable, the notice, if any, to Holders regarding the determination of interest on a
floating rate Security and the manner of giving such notice, and the basis upon which interest
shall be calculated if other than that of a 360 day year of twelve 30 day months;

     (9) if in addition to or other than the Borough of Manhattan, The City of New York, the place
or places where the principal of, any premium and interest on or any Additional Amounts with
respect to such Securities shall be payable, any of such Securities that are Registered Securities
may be surrendered for registration of transfer or exchange, any of such Securities may be
surrendered for conversion or exchange and notices or demands to or upon the

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Company in respect of such Securities and this Indenture may be served, the extent to which,
or the manner in which, any interest payment or Additional Amounts on a global Security on an
Interest Payment Date, will be paid and the manner in which any principal of or premium, if any, on
any global Security will be paid;

     (10) whether any of such Securities are to be redeemable at the option of the Company and, if
so, the date or dates on which, the period or periods within which, the price or prices at which
and the other terms and conditions upon which such Securities may be redeemed, in whole or in part,
at the option of the Company;

     (11) whether the Company is obligated to redeem or purchase any of such Securities pursuant to
any sinking fund or analogous provision or at the option of any Holder thereof and, if so, the date
or dates on which, the period or periods within which, the price or prices at which and the other
terms and conditions upon which such Securities shall be redeemed or purchased, in whole or in
part, pursuant to such obligation, and any provisions for the remarketing of such Securities so
redeemed or purchased;

     (12) the denominations in which any of such Securities that are Registered Securities shall be
issuable if other than denominations of $1,000 and any integral multiple thereof, and the
denominations in which any of such Securities that are Bearer Securities shall be issuable if other
than the denomination of $5,000;

     (13) whether the Securities of the series will be convertible into other securities of the
Company and/or exchangeable for securities of another issuer, and if so, the terms and conditions
upon which such Securities will be so convertible or exchangeable, and any deletions from or
modifications or additions to this Indenture to permit or to facilitate the issuance of such
convertible or exchangeable Securities or the administration thereof;

     (14) if other than the principal amount thereof, the portion of the principal amount of any of
such Securities that shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 5.2 or the method by which such portion is to be determined;

     (15) if other than Dollars, the Foreign Currency in which payment of the principal of, any
premium or interest on or any Additional Amounts with respect to any of such Securities shall be
payable;

     (16) if the principal of, any premium or interest on or any Additional Amounts with respect to
any of such Securities are to be payable, at the election of the Company or a Holder thereof or
otherwise, in Dollars or in a Foreign Currency other than that in which such Securities are stated
to be payable, the date or dates on which, the period or periods within which, and the other terms
and conditions upon which, such election may be made, and the time and manner of determining the
exchange rate between the Currency in which such Securities are stated to be payable and the
Currency in which such Securities or any of them are to be paid pursuant to such election, and any
deletions from or modifications of or additions to the terms of this Indenture to provide for or to
facilitate the issuance of Securities denominated or payable, at the election of the Company or a
Holder thereof or otherwise, in a Foreign Currency;

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     (17) whether the amount of payments of principal of, any premium or interest on or any
Additional Amounts with respect to such Securities may be determined with reference to an index,
formula or other method or methods (which index, formula or method or methods may be based, without
limitation, on one or more Currencies, commodities, equity securities, equity indices or other
indices), and, if so, the terms and conditions upon which and the manner in which such amounts
shall be determined and paid or payable;

     (18) any deletions from, modifications of or additions to the Events of Default or covenants
of the Company with respect to any of such Securities, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants set forth herein;

     (19) whether either or both of Section 4.2(2) relating to defeasance or Section 4.2(3)
relating to covenant defeasance shall not be applicable to the Securities of such series, or any
covenants in addition to those specified in Section 4.2(3) relating to the Securities of such
series which shall be subject to covenant defeasance, and any deletions from, or modifications or
additions to, the provisions of Article 4 in respect of the Securities of such series;

     (20) whether any of such Securities are to be issuable upon the exercise of warrants, and the
time, manner and place for such Securities to be authenticated and delivered;

     (21) if any of such Securities are to be issuable in global form and are to be issuable in
definitive form (whether upon original issue or upon exchange of a temporary Security) only upon
receipt of certain certificates or other documents or satisfaction of other conditions, then the
form and terms of such certificates, documents or conditions;

     (22) if there is more than one Trustee, the identity of the Trustee and, if not the Trustee,
the identity of each Security Registrar, Paying Agent or Authenticating Agent with respect to such
Securities; and

     (23) any other terms of such Securities and any other deletions from or modifications or
additions to this Indenture in respect of such Securities.

     All Securities of any one series and all Coupons, if any, appertaining to Bearer Securities of
such series shall be substantially identical except as to Currency of payments due thereunder,
denomination and the rate of interest thereon, or method of determining the rate of interest, if
any, Maturity, and the date from which interest, if any, shall accrue and except as may otherwise
be provided by the Company in or pursuant to the Board Resolution and set forth in the Officer’s
Certificate or in any indenture or indentures supplemental hereto pertaining to such series of
Securities. The terms of the Securities of any series may provide, without limitation, that the
Securities shall be authenticated and delivered by the Trustee on original issue from time to time
upon written order of persons designated in the Officer’s Certificate or supplemental indenture and
that such persons are authorized to determine, consistent with such Officer’s Certificate or any
applicable supplemental indenture, such terms and conditions of the Securities of such series as
are specified in such Officer’s Certificate or supplemental indenture. All Securities of any one
series need not be issued at the same time and, unless otherwise so provided, a series may be
reopened for issuances of additional Securities of such series or to establish additional terms of
such series of Securities.

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     If any of the terms of the Securities of any series shall be established by action taken by or
pursuant to a Board Resolution, the Board Resolution shall be delivered to the Trustee at or prior
to the delivery of the Officer’s Certificate setting forth the terms of such series.

     Section 3.2. Currency; Denominations.

     Unless otherwise provided in or pursuant to this Indenture, the principal of, any premium and
interest on and any Additional Amounts with respect to the Securities shall be payable in Dollars.
Unless otherwise provided in or pursuant to this Indenture, Registered Securities denominated in
Dollars shall be issuable in registered form without Coupons in denominations of $1,000 and any
integral multiple thereof, and the Bearer Securities denominated in Dollars shall be issuable in
the denomination of $5,000. Securities not denominated in Dollars shall be issuable in such
denominations as are established with respect to such Securities in or pursuant to this Indenture.

     Section 3.3. Execution, Authentication, Delivery and Dating.

     Securities shall be executed on behalf of the Company by its Chairman of the Board, its
President, its Chief Financial Officer, its Controller or a Vice President under its corporate
seal, if any, reproduced thereon and attested by its Secretary or one of its Assistant Secretaries.
Coupons shall be executed on behalf of the Company by the President, Chief Financial Officer,
Controller or Treasurer of the Company. The signature of any of these officers on the Securities
or any Coupons appertaining thereto may be manual or facsimile.

     Securities and any Coupons appertaining thereto bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities and Coupons or did not hold such offices at the date
of original issuance of such Securities or Coupons.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities, together with any Coupons appertaining thereto, executed by the
Company, to the Trustee for authentication and, provided that the Board Resolution and Officer’s
Certificate or supplemental indenture or indentures with respect to such Securities referred to in
Section 3.1 and a Company Order for the authentication and delivery of such Securities have been
delivered to the Trustee, the Trustee in accordance with the Company Order and subject to the
provisions hereof and of such Securities shall authenticate and deliver such Securities. In
authenticating such Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities and any Coupons appertaining thereto, the Trustee shall be entitled
to receive, and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be
fully protected in relying upon,

	 	(1)	 	an Opinion of Counsel to the effect that:

     (a) the form or forms and terms of such Securities and Coupons, if any, have
been established in conformity with the provisions of this Indenture;

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     (b) all conditions precedent to the authentication and delivery of such
Securities and Coupons, if any, appertaining thereto, have been complied with and
that such Securities and Coupons, when completed by appropriate insertions, executed
under the Company’s corporate seal, if any, and attested by duly authorized officers
of the Company, delivered by duly authorized officers of the Company to the Trustee
for authentication pursuant to this Indenture, and authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute legally valid and binding
obligations of the Company, enforceable against the Company in accordance with their
terms, except as enforcement thereof may be subject to or limited by bankruptcy,
insolvency, reorganization, moratorium, arrangement, fraudulent conveyance,
fraudulent transfer or other similar laws relating to or affecting creditors’ rights
generally, and subject to general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law) and will entitle the
Holders thereof to the benefits of this Indenture; such Opinion of Counsel need
express no opinion as to the availability of equitable remedies and may assume that
the laws of the State of New York are identical in all relevant aspects to the
substantive laws of the State of Wisconsin;

     (c) all laws and requirements in respect of the execution and delivery by the
Company of such Securities and Coupons, if any, have been complied with in all
material respects; and

     (d) this Indenture has been qualified under the Trust Indenture Act; and

     (2) an Officer’s Certificate stating that, to the best knowledge of the Persons
executing such certificate, all conditions precedent to the execution, authentication and
delivery of such Securities and Coupons, if any, appertaining thereto, have been complied
with, and no event which is, or after notice or lapse of time would become, an Event of
Default with respect to any of the Securities shall have occurred and be continuing.

     If all the Securities of any series are not to be issued at one time, it shall not be
necessary to deliver an Opinion of Counsel and an Officer’s Certificate at the time of issuance of
each Security, but such opinion and certificate, with appropriate modifications, shall be delivered
at or before the time of issuance of the first Security of such series. After any such first
delivery, any separate written request by an Authorized Officer of the Company or any person
designated in writing by an Authorized Officer that the Trustee authenticate and deliver Securities
of such series for original issue will be deemed to be a certification by the Company that all
conditions precedent provided for in this Indenture relating to authentication and delivery of such
Securities continue to have been complied with and that no Event of Default with respect to any of
the Securities has occurred or is continuing.

     The Trustee shall not be required to authenticate or to cause an Authenticating Agent to
authenticate any Securities if the issue of such Securities pursuant to this Indenture will affect
the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise
in

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a manner which is not reasonably acceptable to the Trustee or if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken.

     Each Registered Security shall be dated the date of its authentication. Each Bearer Security
and any Bearer Security in global form shall be dated as of the date specified in or pursuant to
this Indenture.

     No Security or Coupon appertaining thereto shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose, unless there appears on such Security a
certificate of authentication substantially in the form provided for in Section 2.2 or 6.12
executed by or on behalf of the Trustee or by the Authenticating Agent by the manual signature of
one of its authorized officers. Such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and delivered hereunder.
Except as permitted by Section 3.6 or 3.7, the Trustee shall not authenticate and deliver any
Bearer Security unless all Coupons appertaining thereto then matured have been detached and
cancelled.

     Section 3.4. Temporary Securities.

     Pending the preparation of definitive Securities, the Company may execute and deliver to the
Trustee and, upon Company Order, the Trustee shall authenticate and deliver, in the manner provided
in Section 3.3, temporary Securities in lieu thereof which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of
the definitive Securities in lieu of which they are issued, in registered form or, if authorized in
or pursuant to this Indenture, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as the officers of the
Company executing such Securities may determine, as conclusively evidenced by their execution of
such Securities. Such temporary Securities may be in global form.

     Except in the case of temporary Securities in global form, which shall be exchanged in
accordance with the provisions thereof, if temporary Securities are issued, the Company shall cause
definitive Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities of the same series and containing terms and provisions that are identical to
those of any temporary Securities, such temporary Securities shall be exchangeable for such
definitive Securities upon surrender of such temporary Securities at an Office or Agency for such
Securities, without charge to any Holder thereof. Upon surrender for cancellation of any one or
more temporary Securities (accompanied by any unmatured Coupons appertaining thereto), the Company
shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series and containing
identical terms and provisions; provided, however, that no definitive Bearer Security, except as
provided in or pursuant to this Indenture, shall be delivered in exchange for a temporary
Registered Security; and provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions set forth in or pursuant to this Indenture. Unless otherwise provided in or pursuant to this
Indenture with respect to a temporary global Security, until so exchanged the temporary Securities
of any series shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

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     Section 3.5. Registration, Transfer and Exchange.

     With respect to the Registered Securities of each series, if any, the Company shall cause to
be kept a register (each such register being herein sometimes referred to as the “Security
Register”) at an Office or Agency for such series in which, subject to such reasonable regulations
as it may prescribe, the Company shall provide for the registration of the Registered Securities of
such series and of transfers of the Registered Securities of such series. Such Office or Agency
shall be the “Security Registrar” for that series of Securities. Unless otherwise specified in or
pursuant to this Indenture or the Securities, the Trustee shall be the initial Security Registrar
for each series of Securities. The Company shall have the right to remove and replace from time to
time the Security Registrar for any series of Securities; provided that no such removal or
replacement shall be effective until a successor Security Registrar with respect to such series of
Securities shall have been appointed by the Company and shall have accepted such appointment by the
Company. In the event that the Trustee shall not be or shall cease to be Security Registrar with
respect to a series of Securities, it shall have the right to examine the Security Register for
such series at all reasonable times. There shall be only one Security Register for each series of
Securities.

     Upon surrender for registration of transfer of any Registered Security of any series at any
Office or Agency for such series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Registered
Securities of the same series denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding and containing
identical terms and provisions.

     At the option of the Holder, Registered Securities of any series may be exchanged for other
Registered Securities of the same series containing identical terms and provisions, in any
authorized denominations, and of a like aggregate principal amount, upon surrender of the
Securities to be exchanged at any Office or Agency for such series. Whenever any Registered
Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the exchange is
entitled to receive.

     If provided in or pursuant to this Indenture, with respect to Securities of any series, at the
option of the Holder, Bearer Securities of such series may be exchanged for Registered Securities
of such series containing identical terms, denominated as authorized in or pursuant to this
Indenture and in the same aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons and all matured
Coupons in default thereto appertaining. If the Holder of a Bearer Security is unable to produce
any such unmatured Coupon or Coupons or matured Coupon or Coupons in default, such exchange may be effected if the Bearer Securities are accompanied by payment in
funds acceptable to the Company and the Trustee in an amount equal to the face amount of such
missing Coupon or Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Company and the Trustee if there is furnished to them such security or indemnity as they may
require to save each of them and any Paying Agent harmless. If thereafter the Holder of such
Bearer Security shall surrender to any Paying Agent any such missing Coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive

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the amount of such
payment; provided, however, that, except as otherwise provided in Section 10.2, interest
represented by Coupons shall be payable only upon presentation and surrender of those Coupons at an
Office or Agency for such series located outside the United States. Notwithstanding the foregoing,
in case a Bearer Security of any series is surrendered at any such Office or Agency for such series
in exchange for a Registered Security of such series and like tenor after the close of business at
such Office or Agency on (i) any Regular Record Date and before the opening of business at such
Office or Agency on the next succeeding Interest Payment Date, or (ii) any Special Record Date and
before the opening of business at such Office or Agency on the related date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be (or, if such Coupon is so
surrendered with such Bearer Security, such Coupon shall be returned to the Person so surrendering
the Bearer Security), and interest or Defaulted Interest, as the case may be, shall not be payable
on such Interest Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but shall be payable only to the
Holder of such Coupon when due in accordance with the provisions of this Indenture.

     If provided in or pursuant to this Indenture with respect to Securities of any series, at the
option of the Holder, Registered Securities of such series may be exchanged for Bearer Securities
upon such terms and conditions as may be provided in or pursuant to this Indenture with respect to
such series.

     Whenever any Securities are surrendered for exchange as contemplated by the immediately
preceding two paragraphs, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to receive.

     Notwithstanding the foregoing, except as otherwise provided in or pursuant to this Indenture,
any global Security shall be exchangeable for definitive Securities only if (i) the Depository is
at any time unwilling, unable or ineligible to continue as depository and a successor depository is
not appointed by the Company within 90 days of the date the Company is so informed in writing, (ii)
the Company executes and delivers to the Trustee a Company Order to the effect that such global
Security shall be so exchangeable, or (iii) an Event of Default has occurred and is continuing with
respect to the Securities. If the beneficial owners of interests in a global Security are entitled
to exchange such interests for definitive Securities as the result of an event described in clause
(i), (ii) or (iii) of the preceding sentence, then without unnecessary delay but in any event not
later than the earliest date on which such interests may be so exchanged, the Company shall deliver
to the Trustee definitive Securities in such form and denominations as are required by or pursuant
to this Indenture, and of the same series, containing identical terms and in aggregate principal
amount equal to the principal amount of such global Security, executed by the Company. On or after the earliest date on which such interests may
be so exchanged, such global Security shall be surrendered from time to time by the U.S.
Depository or such other Depository as shall be specified in the Company Order with respect
thereto, and in accordance with instructions given to the Trustee and the U.S. Depository or such
other Depository, as the case may be (which instructions shall be in writing but need not be
contained in or accompanied by an Officer’s Certificate or be accompanied by an Opinion of
Counsel), as shall be specified in the Company Order with respect thereto to the Trustee, as the

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Company’s agent for such purpose, to be exchanged, in whole or in part, for definitive Securities
as described above without charge. The Trustee shall authenticate and make available for delivery,
in exchange for each portion of such surrendered global Security, a like aggregate principal amount
of definitive Securities of the same series of authorized denominations and of like tenor as the
portion of such global Security to be exchanged, which (unless such Securities are not issuable
both as Bearer Securities and as Registered Securities, in which case the definitive Securities
exchanged for the global Security shall be issuable only in the form in which the Securities are
issuable, as provided in or pursuant to this Indenture) shall be in the form of Bearer Securities
or Registered Securities, or any combination thereof, as shall be specified by the beneficial owner
thereof, but subject to the satisfaction of any certification or other requirements to the issuance
of Bearer Securities; provided, however, that no such exchanges may occur during a period beginning
at the opening of business 15 days before any selection of Securities of the same series to be
redeemed and ending on the relevant Redemption Date; and provided, further, that (unless otherwise
provided in or pursuant to this Indenture) no Bearer Security delivered in exchange for a portion
of a global Security shall be mailed or otherwise delivered to any location in the United States.
Promptly following any such exchange in part, such global Security shall be returned by the Trustee
to such Depository or the U.S. Depository, as the case may be, or such other Depository or U.S.
Depository referred to above in accordance with the instructions of the Company referred to above.
If a Registered Security is issued in exchange for any portion of a global Security after the close
of business at the Office or Agency for such Security where such exchange occurs on or after (i)
any Regular Record Date for such Security and before the opening of business at such Office or
Agency on the next succeeding Interest Payment Date, or (ii) any Special Record Date for such
Security and before the opening of business at such Office or Agency on the related proposed date
for payment of interest or Defaulted Interest, as the case may be, interest shall not be payable on
such Interest Payment Date or proposed date for payment, as the case may be, in respect of such
Registered Security, but shall be payable on such Interest Payment Date or proposed date for
payment, as the case may be, only to the Person to whom interest in respect of such portion of such
global Security shall be payable in accordance with the provisions of this Indenture.

     All Securities issued upon any registration of transfer or exchange of Securities shall be the
valid obligations of the Company evidencing the same debt and entitling the Holders thereof to the
same benefits under this Indenture as the Securities surrendered upon such registration of transfer
or exchange.

     Every Registered Security presented or surrendered for registration of transfer or for
exchange or redemption shall (if so required by the Company or the Security Registrar for such
Security) be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar for such Security duly executed by the
Holder thereof or his attorney duly authorized in writing.

     No service charge shall be made for any registration of transfer or exchange, or redemption of
Securities, but the Company may require payment of a sum sufficient to cover any tax or other
governmental charge and any other expenses (including fees and expenses of the Trustee) that may be
imposed in connection with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, 9.5 or 11.7 not involving any transfer.

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     Except as otherwise provided in or pursuant to this Indenture, the Company shall not be
required (i) to issue, register the transfer of or exchange any Securities during a period
beginning at the opening of business 15 days before the day of mailing of a notice of redemption of
Securities of like tenor and the same series under Section 11.3 and ending at the close of business
on the day of such mailing, or (ii) to register the transfer of or exchange any Registered Security
selected for redemption in whole or in part, except in the case of any Security to be redeemed in
part, the portion thereof not to be redeemed, or (iii) to exchange any Bearer Security selected for
redemption except, to the extent provided with respect to such Bearer Security, that such Bearer
Security may be exchanged for a Registered Security of like tenor and the same series, provided
that such Registered Security shall be immediately surrendered for redemption with written
instruction for payment consistent with the provisions of this Indenture or (iv) to issue, register
the transfer of or exchange any Security which, in accordance with its terms, has been surrendered
for repayment at the option of the Holder, except the portion, if any, of such Security not to be
so repaid.

     Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security or a Security with a mutilated Coupon appertaining to it is
surrendered to the Trustee, subject to the provisions of this Section 3.6, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the
same series containing identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding to the Coupons, if
any, appertaining to the surrendered Security.

     If there be delivered to the Company and the Trustee (i) evidence to their satisfaction of the
destruction, loss or theft of any Security or Coupon, and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security or Coupon has been acquired by a
bona fide purchaser, the Company shall execute and, upon the Company’s request the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Security or in exchange for the Security to which a destroyed, lost or stolen Coupon
appertains with all appurtenant Coupons not destroyed, lost or stolen, a new Security of the same
series containing identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding to the Coupons, if
any, appertaining to such destroyed, lost or stolen Security or to the Security to which such
destroyed, lost or stolen Coupon appertains.

     Notwithstanding the foregoing provisions of this Section 3.6, in case any mutilated,
destroyed, lost or stolen Security or Coupon has become or is about to become due and payable,
the Company in its discretion may, instead of issuing a new Security, pay such Security or
Coupon; provided, however, that payment of principal of, any premium or interest on or any
Additional Amounts with respect to any Bearer Securities shall, except as otherwise provided in
Section 10.2, be payable only at an Office or Agency for such Securities located outside the United
States and, unless otherwise provided in or pursuant to this Indenture, any interest on Bearer
Securities and any Additional Amounts with respect to such interest shall be payable only upon
presentation and surrender of the Coupons appertaining thereto.

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     Upon the issuance of any new Security under this Section 3.6, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.

     Every new Security, with any Coupons appertaining thereto issued pursuant to this Section 3.6
in lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a
destroyed, lost or stolen Coupon appertains shall constitute a separate obligation of the Company,
whether or not the destroyed, lost or stolen Security and Coupons appertaining thereto or the
destroyed, lost or stolen Coupon shall be at any time enforceable by anyone, and shall be entitled
to all the benefits of this Indenture equally and proportionately with any and all other Securities
of such series and any Coupons, if any, duly issued hereunder.

     The provisions of this Section 3.6, as amended or supplemented pursuant to this Indenture with
respect to particular Securities or generally, shall be exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities or Coupons.

     Section 3.7. Payment of Interest and Certain Additional Amounts; Rights to Interest and
Certain Additional Amounts Preserved.

     Unless otherwise provided in or pursuant to this Indenture, any interest on and any Additional
Amounts with respect to any Registered Security which shall be payable, and are punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in whose name such
Security (or one or more Predecessor Securities) is registered as of the close of business on the
Regular Record Date for such interest.

     Unless otherwise provided in or pursuant to this Indenture, any interest on and any Additional
Amounts with respect to any Registered Security which shall be payable, but shall not be punctually
paid or duly provided for, on any Interest Payment Date for such Registered Security (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the Holder thereof on the relevant
Regular Record Date by virtue of having been such Holder; and such Defaulted Interest may be paid
by the Company, at its election, as provided in Clause (1) or (2) below:

     (1) The Company may elect to make payment of any Defaulted Interest to the Person in
whose name such Registered Security (or a Predecessor Security thereof) shall be registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which shall be fixed by the Company in the following manner. The
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to
be paid on such Registered Security, the Special Record Date therefor and the date of the
proposed payment, and at the same time the Company shall deposit with the Trustee an amount
of money equal to the aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when so deposited to be held in trust for
the benefit of the Person entitled to such Defaulted Interest as provided in this clause
(1). The Special Record Date for the payment of such Defaulted Interest shall be

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not more
than 15 days and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after notification to the Trustee of the proposed payment. The Trustee
shall, in the name and at the expense of the Company, cause notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor to be mailed, first class
postage prepaid, to the Holder of such Registered Security (or a Predecessor Security
thereof) at his address as it appears in the Security Register not less than 10 days prior
to such Special Record Date. The Trustee may, in its discretion, in the name and at the
expense of the Company, cause a similar notice to be published at least once in an
Authorized Newspaper of general circulation in the Borough of Manhattan, The City of New
York, but such publication shall not be a condition precedent to the establishment of such
Special Record Date. Notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall
be paid to the Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be registered at the close of business on such Special Record Date and shall
no longer be payable pursuant to the following clause (2).

     (2) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange on which such Security may
be listed, and upon such notice as may be required by such exchange, if, after notice given
by the Company to the Trustee of the proposed payment pursuant to this clause (2), such
payment shall be deemed practicable by the Trustee.

     Unless otherwise provided in or pursuant to this Indenture or the Securities of any particular
series pursuant to the provisions of this Indenture, at the option of the Company, interest on
Registered Securities that bear interest may be paid by mailing a check to the address of the
Person entitled thereto as such address shall appear in the Security Register or by transfer to an
account maintained by the payee with a bank located in the United States.

     Subject to the foregoing provisions of this Section and Section 3.5, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in lieu of any other
Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Security.

     In the case of any Registered Security of any series that is convertible into other securities
of the Company or exchangeable for securities of another issuer, which Registered Security is
converted or exchanged after any Regular Record Date and on or prior to the next succeeding
Interest Payment Date (other than any Registered Security with respect to which the
Stated Maturity is prior to such Interest Payment Date), interest with respect to which the
Stated Maturity is on such Interest Payment Date shall be payable on such Interest Payment Date
notwithstanding such conversion or exchange, and such interest (whether or not punctually paid or
duly provided for) shall be paid to the Person in whose name that Registered Security (or one or
more predecessor Registered Securities) is registered at the close of business on such Regular
Record Date. Except as otherwise expressly provided in the immediately preceding sentence, in the
case of any Registered Security which is converted or exchanged, interest with respect to which the
Stated Maturity is after the date of conversion or exchange of such Registered Security shall not
be payable.

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     Section 3.8. Persons Deemed Owners.

     Prior to due presentment of a Registered Security for registration of transfer, the Company,
the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Registered Security is registered in the Security Register as the owner of such Registered Security
for the purpose of receiving payment of principal of, any premium and (subject to Sections 3.5 and
3.7) interest on and any Additional Amounts with respect to such Registered Security and for all
other purposes whatsoever, whether or not any payment with respect to such Registered Security
shall be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.

     The Company, the Trustee and any agent of the Company or the Trustee may treat the bearer of
any Bearer Security or the bearer of any Coupon as the absolute owner of such Security or Coupon
for the purpose of receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not any payment with respect to such Security or Coupon shall be overdue,
and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected
by notice to the contrary.

     No Holder of any beneficial interest in any global Security held on its behalf by a Depository
shall have any rights under this Indenture with respect to such global Security, and such
Depository may be treated by the Company, the Trustee and any agent of the Company or the Trustee
as the owner of such global Security for all purposes whatsoever. None of the Company, the
Trustee, any Paying Agent or the Security Registrar will have any responsibility or liability for
any aspect of the records relating to or payments made on account of beneficial ownership interests
of a global Security or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

     Section 3.9. Cancellation.

     All Securities and Coupons surrendered for payment, redemption, registration of transfer,
exchange or conversion or for credit against any sinking fund payment shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee, and any such Securities and Coupons, as
well as Securities and Coupons surrendered directly to the Trustee for any such purpose, shall be
cancelled promptly by the Trustee. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall
be cancelled promptly by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities cancelled as provided in this section, except as expressly permitted by
or pursuant to this Indenture. All cancelled Securities and Coupons held by the Trustee shall be
destroyed by the Trustee, unless by a Company Order the Company directs their return to it.

     Section 3.10. Computation of Interest.

     Except as otherwise provided in or pursuant to this Indenture or in any Security, interest on
the Securities shall be computed on the basis of a 360 day year of twelve 30 day months.

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ARTICLE 4

Satisfaction and Discharge of Indenture

     Section 4.1. Satisfaction and Discharge.

     Upon the direction of the Company by a Company Order, this Indenture shall cease to be of
further effect with respect to any series of Securities specified in such Company Order and any
Coupons appertaining thereto, and the Trustee, on receipt of a Company Order, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture as to such series, when

	 	(1)	 	either

     (a) all Securities of such series theretofore authenticated and delivered and
all Coupons appertaining thereto (other than (i) Coupons appertaining to Bearer
Securities of such series surrendered in exchange for Registered Securities of such
series and maturing after such exchange whose surrender is not required or has been
waived as provided in Section 3.5, (ii) Securities and Coupons of such series which
have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 3.6, (iii) Coupons appertaining to Securities of such series called for
redemption and maturing after the relevant Redemption Date whose surrender has been
waived as provided in Section 11.6, and (iv) Securities and Coupons of such series
for whose payment money has theretofore been deposited in trust or segregated and
held in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 10.3) have been delivered to the Trustee for
cancellation; or

     (b) all Securities of such series and, in the case of (i) or (ii) below, any
Coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation, (i) have become due and payable, or (ii) will become due and
payable at their Stated Maturity within one year, or (iii) if redeemable at the
option of the Company, are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption by
the Trustee in the name, and at the expense, of the Company, and the Company, in the
case of (i), (ii) or (iii) above, has deposited or caused to be deposited with the
Trustee as trust funds in trust for such purpose, money in the Currency in which
such Securities are payable in an amount sufficient to pay and discharge the entire
indebtedness on such Securities and any Coupons appertaining thereto not theretofore
delivered to the Trustee for cancellation, including the principal of, any premium
and interest on, and any Additional Amounts with respect to such Securities and any
Coupons appertaining thereto, to the date of such deposit (in the case of Securities
which have become due and payable) or to the Maturity thereof, as the case may be;

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     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company with respect to the Outstanding Securities of such series and any Coupons
appertaining thereto; and

     (3) the Company has delivered to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture as to such series have been complied with.

     In the event there are Securities of two or more series hereunder, the Trustee shall be
required to execute an instrument acknowledging satisfaction and discharge of this Indenture only
if requested to do so with respect to Securities of such series as to which it is Trustee and if
the other conditions thereto are met.

     Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 6.7 and, if money shall
have been deposited with the Trustee pursuant to subclause (b) of clause (1) of this section, the
obligations of the Company and the Trustee with respect to the Securities of such series under
Sections 3.5, 3.6, 4.3, 10.2 and 10.3, with respect to the payment of Additional Amounts, if any,
with respect to such Securities as contemplated by Section 10.4 (but only to the extent that the
Additional Amounts payable with respect to such Securities exceed the amount deposited in respect
of such Additional Amounts pursuant to Section 4.1(1)(b)), and with respect to any rights to
convert or exchange such Securities into securities of the Company or another issuer shall survive.

     Section 4.2. Defeasance and Covenant Defeasance.

          (1) Unless pursuant to Section 3.1, either or both of (i) defeasance of the Securities
of or within a series under clause (2) of this Section 4.2 shall not be applicable with
respect to the Securities of such series or (ii) covenant defeasance of the Securities of or
within a series under Section 4.2(3) shall not be applicable with respect to the Securities of such series, then such provisions, together with the other provisions of
this Section 4.2 (with such modifications thereto as may be specified pursuant to Section
3.1 with respect to any Securities), shall be applicable to such Securities and any Coupons
appertaining thereto, and the Company may at its option by Board Resolution, at any time,
with respect to such Securities and any Coupons appertaining thereto, elect to have Section
4.2(2) or Section 4.2(3) be applied to such Outstanding Securities and any Coupons
appertaining thereto upon compliance with the conditions set forth below in this Section
4.2.

          (2) Upon the Company’s exercise of the above option applicable to this Section 4.2(2)
with respect to any Securities of or within a series, the Company shall be deemed to have
been discharged from its obligations, and the provisions of Article 16 shall cease to be
effective, with respect to such Outstanding Securities and any Coupons appertaining thereto
on the date the conditions set forth in clause (4) of this Section 4.2 are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall
be deemed to have paid and discharged the entire indebtedness

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represented by such
Outstanding Securities and any Coupons appertaining thereto, which shall thereafter be
deemed to be “Outstanding” only for the purposes of clause (5) of this Section 4.2 and the
other Sections of this Indenture referred to in clauses (i) and (ii) below, and to have
satisfied all of its other obligations under such Securities and any Coupons appertaining
thereto, and this Indenture insofar as such Securities and any Coupons appertaining thereto
are concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (i) the rights of Holders of such Outstanding
Securities and any Coupons appertaining thereto to receive, solely from the trust fund
described in clause (4) of this Section 4.2 and as more fully set forth in such clause,
payments in respect of the principal of (and premium, if any) and interest, if any, on, and
Additional Amounts, if any, with respect to, such Securities and any Coupons appertaining
thereto when such payments are due, and any rights of such Holder to convert such Securities
into other securities of the Company or exchange such Securities for securities of another
issuer, (ii) the obligations of the Company and the Trustee with respect to such Securities
under Sections 3.5, 3.6, 10.2 and 10.3 and with respect to the payment of Additional
Amounts, if any, on such Securities as contemplated by Section 10.4 (but only to the extent
that the Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to Section 4.2(4)(a) below), and
with respect to any rights to convert such Securities into other securities of the Company
or exchange such Securities for securities of another issuer, (iii) the rights, powers,
trusts, duties and immunities of the Trustee hereunder and (iv) this Section 4.2. The
Company may exercise its option under this Section 4.2(2) notwithstanding the prior exercise
of its option under clause (3) of this Section 4.2 with respect to such Securities and any
Coupons appertaining thereto.

          (3) Upon the Company’s exercise of the option to have this Section 4.2(3) apply with
respect to any Securities of or within a series, (a) the Company shall be released from its
obligations under any covenant applicable to such Securities to the extent specified
pursuant to Section 3.1(19), and (b) the provisions of Article 16 shall
cease to be effective, in each case with respect to such Outstanding Securities and any
Coupons appertaining thereto, on and after the date the conditions set forth in clause (4)
of this Section 4.2 are satisfied (hereinafter, “covenant defeasance”), and such Securities
and any Coupons appertaining thereto shall thereafter be deemed to be not “Outstanding” for
the purposes of any direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with any such covenant, but shall continue to be
deemed “Outstanding” for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to such Outstanding Securities and any Coupons
appertaining thereto, the Company may omit to comply with, and shall have no liability in
respect of, any term, condition or limitation set forth in any such section or such other
covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any
such section or such other covenant or by reason of reference in any such section or such
other covenant to any other provision herein or in any other document and such omission to
comply shall not constitute a default or an Event of Default under Section 5.1(4) or 5.1(8)
or otherwise, as the case may be, but, except as specified above,

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the remainder of this
Indenture and such Securities and Coupons appertaining thereto shall be unaffected thereby.

          (4) The following shall be the conditions to application of clause (2) or (3) of this
Section 4.2 to any Outstanding Securities of or within a series and any Coupons appertaining
thereto:

          (a) The Company shall irrevocably have deposited or caused to be deposited with
the Trustee (or another trustee satisfying the requirements of Section 6.8 who shall
agree to comply with the provisions of this Section 4.2 applicable to it) as trust
funds in trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the Holders of such
Securities and any Coupons appertaining thereto, (1) an amount in Dollars or in such
Foreign Currency in which such Securities and any Coupons appertaining thereto are
then specified as payable at Stated Maturity, or (2) Government Obligations
applicable to such Securities and Coupons appertaining thereto (determined on the
basis of the Currency in which such Securities and Coupons appertaining thereto are
then specified as payable at Stated Maturity) which through the scheduled payment of
principal and interest in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment of principal of
(and premium, if any) and interest, if any, on such Securities and any Coupons
appertaining thereto, money in an amount, or (3) a combination thereof, in any case,
in an amount, sufficient, without consideration of any reinvestment of such
principal and interest, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by the
Trustee (or other qualifying trustee) to pay and discharge, (y) the principal of
(and premium, if any) and interest, if any, on such Outstanding Securities and any
Coupons appertaining thereto at the Stated Maturity of such principal or installment
of principal or premium or interest and (z) any mandatory sinking fund payments or
analogous payments applicable to such Outstanding Securities and any Coupons
appertaining thereto on the days on which such payments are due and payable in accordance with the
terms of this Indenture and of such Securities and any Coupons appertaining thereto.

          (b) Such defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default under, this Indenture or any other material
agreement or instrument to which the Company is a party or by which it is bound.

          (c) No Event of Default or event which with notice or lapse of time or both
would become an Event of Default with respect to such Securities and any Coupons
appertaining thereto shall have occurred and be continuing on the date of such
deposit and, with respect to defeasance only, at any time during the period ending
on the 123rd day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).

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          (d) In the case of an election under clause (2) of this Section 4.2, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that (i)
the Company has received from the Internal Revenue Service a letter ruling, or there
has been published by the Internal Revenue Service a Revenue Ruling, or (ii) since
the date of execution of this Indenture, there has been a change in the applicable
Federal income tax law, in either case to the effect that, and based thereon such
opinion shall confirm that, the Holders of such Outstanding Securities and any
Coupons appertaining thereto will not recognize income, gain or loss for Federal
income tax purposes as a result of such defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as would
have been the case if such defeasance had not occurred.

          (e) In the case of an election under clause (3) of this Section 4.2, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect that
the Holders of such Outstanding Securities and any Coupons appertaining thereto will
not recognize income, gain or loss for Federal income tax purposes as a result of
such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such covenant defeasance had not occurred.

          (f) The Company shall have delivered to the Trustee an Opinion of Counsel to
the effect that, after the 123rd day after the date of deposit, all money and
Government Obligations (or other property as may be provided pursuant to Section
3.1) (including the proceeds thereof) deposited or caused to be deposited with the
Trustee (or other qualifying trustee) pursuant to this clause (4) to be held in
trust will not be subject to any case or proceeding (whether voluntary or
involuntary) in respect of the Company under any Federal or State bankruptcy,
insolvency, reorganization or other similar law, or any decree or order for relief
in respect of the Company issued in connection therewith.

          (g) At the time of such deposit, (i) no default in the payment of any principal
of or premium or interest on any Senior Indebtedness shall have
occurred and be continuing, (ii) no event of default with respect to any Senior
Indebtedness shall have resulted in such Senior Indebtedness becoming, and
continuing to be, due and payable prior to the date on which it would otherwise have
become due and payable (unless payment of such Senior Indebtedness has been made or
duly provided for), and (iii) no other event of default with respect to any Senior
Indebtedness shall have occurred and be continuing permitting (after notice or lapse
of time or both) the holders of such Senior Indebtedness (or an agent or trustee on
behalf of such holders) to declare such Senior Indebtedness due and payable prior to
the date on which it would otherwise have become due and payable.

          (h) The Company shall have delivered to the Trustee an Officer’s Certificate
and the Company shall have delivered to the Trustee an Opinion of Counsel, each
stating that all conditions precedent to the defeasance or covenant

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defeasance under
clause (2) or (3) of this Section 4.2 (as the case may be) have been complied with.

     Notwithstanding any other provisions of this Section 4.2(4), such defeasance or
covenant defeasance shall be effected in compliance with any additional or
substitute terms, conditions or limitations which may be imposed on the Company in
connection therewith pursuant to Section 3.1.

     (5) Unless otherwise specified in or pursuant to this Indenture or any Security, if,
after a deposit referred to in Section 4.2(4)(a) has been made, (a) the Holder of a Security
in respect of which such deposit was made is entitled to, and does, elect pursuant to
Section 3.1 or the terms of such Security to receive payment in a Currency other than that
in which the deposit pursuant to Section 4.2(4)(a) has been made in respect of such
Security, or (b) a Conversion Event occurs in respect of the Foreign Currency in which the
deposit pursuant to Section 4.2(4)(a) has been made, the indebtedness represented by such
Security and any Coupons appertaining thereto shall be deemed to have been, and will be,
fully discharged and satisfied through the payment of the principal of (and premium, if
any), and interest, if any, on, and Additional Amounts, if any, with respect to, such
Security as the same becomes due out of the proceeds yielded by converting (from time to
time as specified below in the case of any such election) the amount or other property
deposited in respect of such Security into the Currency in which such Security becomes
payable as a result of such election or Conversion Event based on (x) in the case of
payments made pursuant to clause (a) above, the applicable market exchange rate for such
Currency in effect on the second Business Day prior to each payment date, or (y) with
respect to a Conversion Event, the applicable market exchange rate for such Foreign Currency
in effect (as nearly as feasible) at the time of the Conversion Event.

     The Company shall pay and indemnify the Trustee (or other qualifying trustee, collectively for
purposes of this Section 4.2(5) and Section 4.3, the “Trustee”) against any tax, fee or other
charge, imposed on or assessed against the Government Obligations deposited pursuant to this
Section 4.2 or the principal or interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of such Outstanding Securities and
any Coupons appertaining thereto.

     Anything in this Section 4.2 to the contrary notwithstanding, the Trustee shall deliver or pay
to the Company from time to time upon Company Request, any money or Government Obligations (or
other property and any proceeds therefrom) held by it as provided in clause (4) of this Section 4.2
which, in the opinion of a nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, are in excess of
the amount thereof which would then be required to be deposited to effect a defeasance or
covenant defeasance, as applicable, in accordance with this Section 4.2.

     Section 4.3. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money and Government
Obligations (or other property as may be provided pursuant to Section 3.1)

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(including the proceeds
thereof) deposited with the Trustee pursuant to Section 4.1 or 4.2 in respect of any Outstanding
Securities of any series and any Coupons appertaining thereto shall be held in trust and applied by
the Trustee, in accordance with the provisions of such Securities and any Coupons appertaining
thereto and this Indenture, to the payment, either directly or through any Paying Agent (including
the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such
Securities and any Coupons appertaining thereto of all sums due and to become due thereon in
respect of principal (and premium, if any) and interest and Additional Amounts, if any; but such
money and Government Obligations need not be segregated from other funds except to the extent
required by law. Money and Securities so held in trust are not subject to Article 16.

ARTICLE 5

Remedies

     Section 5.1. Events of Default.

     “Event of Default,” wherever used herein with respect to Securities of any series, 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),
unless such event is specifically deleted or modified in or pursuant to the supplemental indenture,
Board Resolution or Officer’s Certificate establishing the terms of such Series pursuant to this
Indenture:

     (1) default in the payment of any interest on any Security of such series, or any
Additional Amounts payable with respect thereto, when such interest becomes or such
Additional Amounts become due and payable, and continuance of such default for a period of
30 days; or

     (2) default in the payment of the principal of or any premium on any Security of such
series, or any Additional Amounts payable with respect thereto, when such principal or
premium becomes or such Additional Amounts become due and payable at their Maturity; or

     (3) default in the deposit of any sinking fund payment when and as due by the terms of
a Security of such series; or

     (4) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture or the Securities (other than a covenant or warranty a default in the
performance or the breach of which is elsewhere in this Section specifically dealt with or
which has been expressly included in this Indenture solely for the benefit of a series of
Securities other than such series), and continuance of such default or breach 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 Securities of such series, a written notice

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specifying such
default or breach and requiring it to be remedied and stating that such notice is a “Notice
of Default” hereunder; or

     (5) the entry by a court having competent jurisdiction of:

     (a) a decree or order for relief in respect of the Company in an involuntary
proceeding under any applicable bankruptcy, insolvency, reorganization or other
similar law and such decree or order shall remain unstayed and in effect for a
period of 60 consecutive days; or

     (b) a decree or order adjudging the Company to be insolvent, or approving a
petition seeking reorganization, arrangement, adjustment or composition of the
Company and such decree or order shall remain unstayed and in effect for a period of
60 consecutive days; or

     (c) a final and non appealable order appointing a custodian, receiver,
liquidator, assignee, trustee or other similar official of the Company of any
substantial part of the property of the Company or ordering the winding up or
liquidation of the affairs of the Company; or

     (6) the commencement by the Company of a voluntary proceeding under any applicable
bankruptcy, insolvency, reorganization or other similar law or of a voluntary proceeding
seeking to be adjudicated insolvent or the consent by the Company to the entry of a decree
or order for relief in an involuntary proceeding under any applicable bankruptcy,
insolvency, reorganization or other similar law or to the commencement of any insolvency
proceedings against it, or the filing by the Company of a petition or answer or consent
seeking reorganization, arrangement, adjustment or composition of the Company or similar
relief under any applicable law, or the consent by the Company to the filing of such
petition or to the appointment of or taking possession by a custodian, receiver, liquidator,
assignee, trustee or similar official of the Company or any substantial part of the property
of the Company or the making by the Company of an assignment for the benefit of creditors
generally, or the taking of entity action by the Company in furtherance of any such action;
or

     (7) any other Event of Default provided in or pursuant to this Indenture with respect
to Securities of such series.

     Section 5.2. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time Outstanding (other
than an Event of Default specified in clause (6) or (7) of Section 5.1) occurs and is continuing,
then the Trustee or the Holders of not less than 25% in principal amount of the Outstanding
Securities of such series may declare the principal of all the Securities of such series, or such
lesser amount as may be provided for in the Securities of such series, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given by the Holders),
and upon any such declaration such principal or such lesser amount shall become immediately due and
payable.

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     If an Event of Default specified in clause (6) or (7) of Section 5.1 occurs, all unpaid
principal of and accrued interest on the Outstanding Securities of that series (or such lesser
amount as may be provided for in the Securities of such series) shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder of any Security of that series.

     At any time after a declaration of acceleration with respect to the Securities of any series
has been made and before a judgment or decree for payment of the money due has been obtained by the
Trustee as hereinafter in this Article provided, the Holders of not less than a majority in
principal amount of the Outstanding Securities of such series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if

     (1) the Company has paid or deposited with the Trustee a sum of money sufficient to pay

     (a) all overdue installments of any interest on and Additional Amounts with
respect to all Securities of such series and any Coupon appertaining thereto,

     (b) the principal of and any premium on any Securities of such series which
have become due otherwise than by such declaration of acceleration and interest
thereon and any Additional Amounts with respect thereto at the rate or rates borne
by or provided for in such Securities,

     (c) to the extent that payment of such interest or Additional Amounts is
lawful, interest upon overdue installments of any interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and

     (d) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and all other amounts due the Trustee under Section 6.7; and

     (2) all Events of Default with respect to Securities of such series, other than the non
payment of the principal of, any premium and interest on, and any Additional Amounts with
respect to Securities of such series which shall have become due solely by
such declaration of acceleration, shall have been cured or waived as provided in
Section 5.13.

     No such rescission shall affect any subsequent default or impair any right consequent thereon.

     Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

     (1) default is made in the payment of any installment of interest on or any Additional
Amounts with respect to any Security or any Coupon appertaining thereto

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when such interest
or Additional Amounts shall have become due and payable and such default continues for a
period of 30 days, or

     (2) default is made in the payment of the principal of or any premium on any Security
or any Additional Amounts with respect thereto at their Maturity,

the Company shall, upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders
of such Securities and any Coupons appertaining thereto, the whole amount of money then due and
payable with respect to such Securities and any Coupons appertaining thereto, with interest upon
the overdue principal, any premium and, to the extent that payment of such interest shall be
legally enforceable, upon any overdue installments of interest and Additional Amounts at the rate
or rates borne by or provided for in such Securities, and, in addition thereto, such further amount
of money as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel and all other amounts due to the Trustee under Section 6.7.

     If the Company fails to pay the money it is required to pay the Trustee pursuant to the
preceding paragraph forthwith upon the demand of the Trustee, the Trustee, in its own name and as
trustee of an express trust, may institute a judicial proceeding for the collection of the money so
due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the
same against the Company or any other obligor upon such Securities and any Coupons appertaining
thereto and collect the monies adjudged or decreed to be payable in the manner provided by law out
of the property of the Company or any other obligor upon such Securities and any Coupons
appertaining thereto, wherever situated.

     If an Event of Default with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series and any Coupons appertaining thereto by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or such
Securities or in aid of the exercise of any power granted herein or therein, or to enforce any
other proper remedy.

     Section 5.4. Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities of any series or the property of the Company or
such other obligor or their creditors, the Trustee (irrespective of whether the principal of the
Securities shall then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company for the payment of
any overdue principal, premium, interest or Additional Amounts) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

     (1) to file and prove a claim for the whole amount, or such lesser amount as may be
provided for in the Securities of any applicable series, of the principal and any premium,
interest and Additional Amounts owing and unpaid in respect of the Securities

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and any
Coupons appertaining thereto and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents or
counsel) and of the Holders of Securities or any Coupons appertaining thereto allowed in
such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder of Securities or any Coupons to
make such payments to the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to the Holders of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amounts due the Trustee under Section 6.7.

     Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder of a Security or any Coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or Coupons or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a
Security or any Coupon in any such proceeding.

     Section 5.5. Trustee May Enforce Claims without Possession of Securities or Coupons.

     All rights of action and claims under this Indenture or any of the Securities or Coupons may
be prosecuted and enforced by the Trustee without the possession of any of the Securities or
Coupons or the production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery or judgment, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, shall be for the
ratable benefit of each and every Holder of the Securities or Coupons in respect of which such
judgment has been recovered.

     Section 5.6. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal, or any premium, interest or Additional Amounts, upon presentation of the
Securities or Coupons, or both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee and any predecessor Trustee under
Section 6.7;

     SECOND: Subject to the provisions of Article 16, the payment of the amounts then due
and unpaid upon the Securities and any Coupons for principal and any premium,

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interest and
Additional Amounts in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the aggregate
amounts due and payable on such Securities and Coupons for principal and any premium,
interest and Additional Amounts, respectively;

     THIRD: The balance, if any, to the Person or Persons entitled thereto.

     Section 5.7. Limitations on Suits.

     No Holder of any Security of any series or any Coupons appertaining thereto shall have any
right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless

     (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of such series;

     (2) the Holders of not less than 25% in principal amount of the Outstanding Securities
of such series shall have made written request to the Trustee to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

     (3) such Holder or Holders have offered to the Trustee such indemnity as is reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in compliance
with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (5) no direction inconsistent with such written request has been given to the Trustee
during such 60 day period by the Holders of a majority in principal amount of the
Outstanding Securities of such series;

     it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture or any Security to
affect, disturb or prejudice the rights of any other such Holders or Holders of Securities of any
other series, or to obtain or to seek to obtain priority or preference over any other Holders or to
enforce any right under this Indenture, except in the manner herein provided and for the equal and
ratable benefit of all such Holders.

				
	 	Section 5.8.	 	Unconditional Right of Holders to Receive Principal and any Premium, Interest and
Additional Amounts.

     Notwithstanding any other provision in this Indenture, the Holder of any Security or Coupon
shall have the right, which is absolute and unconditional, to receive payment of the principal of,
any premium and (subject to Sections 3.5 and 3.7) interest on, and any Additional Amounts with
respect to, such Security or payment of such Coupon, as the case may be, on the respective Stated
Maturity or Maturities therefor specified in such Security or Coupon (or, in the case of
redemption, on the Redemption Date or, in the case of repayment at the option of such Holder if
provided in or pursuant to this Indenture, on the date such repayment is due) and to

44

 

institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

     Section 5.9. Restoration of Rights and Remedies.

     If the Trustee or any Holder of a Security or a Coupon has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case the Company, the Trustee and each such Holder shall, subject to any
determination in such proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Trustee and each such Holder shall
continue as though no such proceeding had been instituted.

     Section 5.10. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities or Coupons in the last paragraph of Section 3.6, no right or
remedy herein conferred upon or reserved to the Trustee or to each and every Holder of a Security
or a Coupon is intended to be exclusive of any other right or remedy, and every right and remedy,
to the extent permitted by law, shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise.

     The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the
extent permitted by law, prevent the concurrent assertion or employment of any other appropriate
right or remedy.

     Section 5.11. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Security or Coupon to exercise any
right or remedy accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to any Holder of a Security or a Coupon
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by
such Holder, as the case may be.

     Section 5.12. Control by Holders of Securities.

     The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on the Trustee with
respect to the Securities of such series and any Coupons appertaining thereto, provided that

     (1) such direction shall not be in conflict with any rule of law or with this Indenture
or with the Securities of such series,

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and

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     (3) such direction is not unduly prejudicial to the rights of the other Holders of
Securities of such series not joining in such action.

     Section 5.13. Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the Outstanding Securities of
any series on behalf of the Holders of all the Securities of such series and any Coupons
appertaining thereto may waive any past default hereunder with respect to such series and its
consequences, except a default

     (1) in the payment of the principal of, any premium or interest on, or any Additional
Amounts with respect to, any Security of such series or any Coupons appertaining thereto, or

     (2) in respect of a covenant or provision hereof which under Article 9 cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected.

     Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

     Section 5.14. Waiver of Usury, Stay or Extension Laws.

     The Company covenants that (to the extent that it may lawfully do so) it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company expressly waives (to the
extent that it may lawfully do so) all benefit or advantage of any such law and covenants that it
will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law had been enacted.

     Section 5.15. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit
having due regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section 5.15 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of Outstanding Securities of any series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium, if any) or interest,
if any, on or Additional Amounts, if any, with respect to any Security on or after the respective
Stated Maturities expressed in such Security (or, in the case of redemption, on or after

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the
Redemption Date, and, in the case of repayment, on or after the date for repayment) or for the
enforcement of the right, if any, to convert or exchange any Security into other securities in
accordance with its terms.

ARTICLE 6

The Trustee

     Section 6.1. Certain Duties and Responsibilities.

     (a) Except during the continuance of an Event of Default,

     (1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions that by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall be under a duty
to examine the same to determine whether or not they conform to the requirements of this
Indenture but not to verify or confirm the contents thereof.

     (b) In case an Event of Default actually known to a Responsible Office of the Trustee has
occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it
by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man
would exercise or use under the circumstances in the conduct of his own affairs.

     (c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own willful misconduct,
except that

     (1) this paragraph (c) shall not be construed to limit the effect of paragraph (a) of
this Section 6.1;

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

     (3) the Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Holders of a majority in
principal amount of the Outstanding Securities relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture.

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     Section 6.2. Certain Rights of Trustee.

     (1) the Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, coupon or
other paper or document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     (2) any request or direction of the Company mentioned herein shall be sufficiently
evidenced by a Company Request or a Company Order (in each case, other than delivery of any
Security, together with any Coupons appertaining thereto, to the Trustee for authentication
and delivery pursuant to Section 3.3 which shall be sufficiently evidenced as provided
therein) and any resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;

     (3) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or omitting any
action hereunder, the Trustee (unless other evidence shall be herein specifically
prescribed) may, in the absence of bad faith on its part, may request and rely upon an
Officer’s Certificate;

     (4) the Trustee may consult with counsel and the written advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

     (5) the Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by or pursuant to this Indenture at the request or direction of any of the
Holders of Securities of any series or any Coupons appertaining thereto pursuant to this
Indenture, unless such Holders shall have offered to the Trustee such security or indemnity
as is reasonably satisfactory to it against the costs, expenses and liabilities which might
be incurred by it in compliance with such request or direction;

     (6) the Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, coupon or other paper or document, but
the Trustee, in its discretion, may, but shall not be obligated to make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall be entitled to examine,
during business hours and upon reasonable notice, the books, records and premises of the
Company, personally or by agent or attorney;

     (7) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

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     (8) the Authenticating Agent, Paying Agent, and Security Registrar shall have the same
protections as the Trustee set forth hereunder;

     (9) no provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers;

     (10) whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Article 6;

     (11) the Trustee shall not be liable for any action taken or omitted to be taken by it
in good faith that it believed to be authorized or within the discretion or rights or powers
conferred upon it by this Indenture, unless the Trustee’s conduct constitutes negligence;

     (12) the permissive rights of the Trustee to do things enumerated in this Indenture
shall not be construed as a duty unless so specified; and

     (13) the Trustee shall not be deemed to have notice or actual knowledge of any Event of
Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless
written notice of any Event of Default is received by the Trustee pursuant to Section 1.5
hereof. Except as otherwise expressly provided herein, the Trustee shall not be bound to
ascertain or inquire as to the performance or observance of any of the terms, conditions,
covenants or agreements herein or in any series of Securities.

     Section 6.3. Notice of Default.

     Within 90 days after the occurrence of any default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series entitled
to receive reports pursuant to Section 7.3(3), notice of such default hereunder actually known to a
Responsible Officer of the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the principal of (or premium, if
any), or interest, if any, on, or Additional Amounts or any sinking fund or purchase fund
installment with respect to, any Security of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good faith determine
that the withholding of such notice is in the best interest of the Holders of Securities and
Coupons of such series; and provided, further, that in the case of any default of the character
specified in Section 5.1(5) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the purposes of this
Section, the term “default” means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of such series.

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     Section 6.4. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificate of
authentication, and in any Coupons shall be taken as the statements of the Company and neither the
Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or of the Securities
or the Coupons, except that the Trustee represents that it is duly authorized to execute and
deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that
the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are
true and accurate, subject to the qualifications set forth therein. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the Company of the
Securities or the proceeds thereof.

     Section 6.5. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
Person that may be an agent of the Trustee or the Company, in its individual or any other capacity,
may become the owner or pledgee of Securities or Coupons and, subject to Sections 310(b) and 311 of
the Trust Indenture Act, may otherwise deal with the Company with the same rights it would have if
it were not the Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other
Person.

     Section 6.6. Money Held in Trust.

     Except as provided in Section 4.3 and Section 10.3, money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required by law and shall be
held uninvested. The Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed to in writing with the Company.

     Section 6.7. Compensation and Reimbursement.

     The Company agrees:

     (1) to pay to the Trustee from time to time reasonable compensation for all services
rendered by the Trustee hereunder (which compensation shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture or arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder (including
the reasonable compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to the Trustee’s
negligence or bad faith; and

     (3) to indemnify the Trustee and its agents, officers, directors and employees for, and
to hold them harmless against, any loss, liability or expense incurred without negligence or
bad faith on their part, arising out of or in connection with the acceptance

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or
administration of the trust or trusts hereunder, including the costs and expenses of
defending themselves against any claim or liability in connection with the exercise or
performance of any of their powers or duties hereunder, except to the extent that any such
loss, liability or expense was due to the Trustee’s negligence or bad faith.

     As security for the performance of the obligations of the Company under this section, the
Trustee shall have a lien prior to the Securities of any series upon all property and funds held or
collected by the Trustee as such, except funds held in trust for the payment of principal of, and
premium or interest on or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto.

     To the extent permitted by law, any compensation or expense incurred by the Trustee after a
default specified in or pursuant to Section 5.1 is intended to constitute an expense of
administration under any then applicable bankruptcy or insolvency law. “Trustee” for purposes of
this Section 6.7 shall include any predecessor Trustee but the negligence or bad faith of any
Trustee shall not affect the rights of any other Trustee under this Section 6.7.

     The provisions of this Section 6.7 shall survive the satisfaction and discharge of this
Indenture or the earlier resignation or removal of the Trustee and shall apply with equal force and
effect to the Trustee in its capacity as Authenticating Agent, Paying Agent or Security Registrar.

     Section 6.8. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder that is a Corporation organized and doing
business under the laws of the United States of America, any state thereof or the District of
Columbia, that is eligible under Section 310(a)(1) of the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act and that has a combined capital and
surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$50,000,000, and that is subject to supervision or examination by Federal or state authority. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereinafter specified in
this Article.

     Section 6.9. Resignation and Removal; Appointment of Successor.

     (1) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of appointment by the
successor Trustee pursuant to Section 6.10.

     (2) The Trustee may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Company. If the instrument of
acceptance by a successor Trustee required by Section 6.10 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to such series.

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     (3) The Trustee may be removed at any time with respect to the Securities of any series
by Act of the Holders of a majority in principal amount of the Outstanding Securities of
such series, delivered to the Trustee and the Company.

     (4) If at any time:

     (a) the Trustee shall fail to comply with the obligations imposed upon it under
Section 310(b) of the Trust Indenture Act with respect to Securities of any series
after written request therefor by the Company or any Holder of a Security of such
series who has been a bona fide Holder of a Security of such series for at least six
months, or

     (b) the Trustee shall cease to be eligible under Section 6.8 and shall fail to
resign after written request therefor by the Company or any such Holder, or

     (c) the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or of
its property or affairs for the purpose of rehabilitation, conservation or
liquidation,

then, in any such case, (i) the Company, by or pursuant to a Board Resolution, may
remove the Trustee with respect to all Securities or the Securities of such series,
or (ii) subject to Section 315(e) of the Trust Indenture Act, any Holder of a
Security who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee with respect to all
Securities of such series and the appointment of a successor Trustee or Trustees.

     (5) If the Trustee shall resign, be removed or become incapable of acting, or if a
vacancy shall occur in the office of Trustee for any cause, with respect to the Securities
of one or more series, the Company, by or pursuant to a Board Resolution, shall promptly
appoint a successor Trustee or Trustees with respect to the Securities of such series (it
being understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall be only one
Trustee with respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 6.10. If, within one year after such resignation,
removal or incapacity, or the occurrence of such vacancy, a successor Trustee with respect
to the Securities of any series shall be appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the Company and
the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements of Section
6.10, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been so appointed
by the Company or the Holders of Securities and accepted appointment in the manner required
by Section 6.10, any Holder of a Security who has been a bona fide Holder of a Security of
such series for at least six months may, on behalf of himself and all others

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similarly
situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

     (6) The Company shall give notice of each resignation and each removal of the Trustee
with respect to the Securities of any series and each appointment of a successor Trustee
with respect to the Securities of any series by mailing written notice of such event by
first class mail, postage prepaid, to the Holders of Registered Securities, if any, of such
series as their names and addresses appear in the Security Register and, if Securities of
such series are issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United States. Each
notice shall include the name of the successor Trustee with respect to the Securities of
such series and the address of its Corporate Trust Office.

     (7) In no event shall any retiring Trustee be liable for the acts or omissions of any
successor Trustee hereunder.

     Section 6.10. Acceptance of Appointment by Successor.

     (1) Upon the appointment hereunder of any successor Trustee with respect to all
Securities, such successor Trustee so appointed shall execute, acknowledge and deliver to
the Company and the retiring Trustee an instrument accepting such appointment, and thereupon
the resignation or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties hereunder of the retiring Trustee; but, on the request of
the Company or such successor Trustee, such retiring Trustee, upon payment of its charges,
shall execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and, subject to Section 10.3, shall duly
assign, transfer and deliver to such successor Trustee all property and money held by such
retiring Trustee hereunder, subject nevertheless to its claim, if any, provided for in
Section 6.7.

     (2) Upon the appointment hereunder of any successor Trustee with respect to the
Securities of one or more (but not all) series, the Company, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto wherein each
successor Trustee shall accept such appointment and which (1) shall contain such provisions
as shall be necessary or desirable to transfer and confirm to, and to vest in, such
successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities,
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change
any of the provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being understood
that nothing herein or in such supplemental indenture shall constitute such Trustees co
trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts

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hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee and that no Trustee shall be responsible for any notice given to, or received
by, or any act or failure to act on the part of any other Trustee hereunder, and, upon the
execution and delivery of such supplemental indenture, the resignation or removal of the
retiring Trustee shall become effective to the extent provided therein, such retiring
Trustee shall have no further responsibility for the exercise of rights and powers or for
the performance of the duties and obligations vested in the Trustee under this Indenture
with respect to the Securities of that or those series to which the appointment of such
successor Trustee relates other than as hereinafter expressly set forth, and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates; but, on
request of the Company or such successor Trustee, such retiring Trustee, upon payment of its
charges with respect to the Securities of that or those series to which the appointment of
such successor Trustee relates and subject to Section 10.3 shall duly assign, transfer and
deliver to such successor Trustee, to the extent contemplated by such supplemental
indenture, the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such successor Trustee
relates, subject to its claim, if any, provided for in Section 6.7.

     (3) Upon request of any Person appointed hereunder as a successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in paragraph (1) or
(2) of this Section, as the case may be.

     (4) No Person shall accept its appointment hereunder as a successor Trustee unless at
the time of such acceptance such successor Person shall be qualified and eligible under this
Article.

     Section 6.11. Merger, Conversion, Consolidation or Succession to Business.

     Any Corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any Corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any Corporation succeeding by sale or otherwise to all or
substantially all of the corporate trust business of the Trustee shall be the successor of the
Trustee hereunder, without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated but not delivered
by the Trustee then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself authenticated such
Securities.

     Section 6.12. Appointment of Authenticating Agent.

     The Trustee may appoint one or more Authenticating Agents acceptable to the Company with
respect to one or more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of that or those series issued upon original issue, exchange,
registration of transfer, partial redemption or partial repayment or pursuant to Section 3.6, and

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Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication
and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of
authentication executed on behalf of the Trustee by an Authenticating Agent.

     Each Authenticating Agent must be acceptable to the Company and, except as provided in or
pursuant to this Indenture, shall at all times be a Corporation that would be permitted by the
Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act,
is authorized under applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture
Act) of at least $50,000,000. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in the manner and with
the effect specified in this Section.

     Any Corporation into which an Authenticating Agent may be merged or converted or with which it
may be consolidated, or any Corporation resulting from any merger, conversion or consolidation to
which such Authenticating Agent shall be a party, or any Corporation succeeding by sale or
otherwise to all or substantially all of the corporate agency or corporate trust business of an
Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, provided such
Corporation shall be otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, the Trustee may
appoint a successor Authenticating Agent which shall be acceptable to the Company and shall (i)
mail written notice of such appointment by first class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such Authenticating Agent shall
serve, as their names and addresses appear in the Security Register, and (ii) if Securities of the
series are issued as Bearer Securities, publish notice of such appointment at least once in an
Authorized Newspaper in the place where such successor
Authenticating Agent has its principal office if such office is located outside the United
States. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall
become vested with all the rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

     The Company agrees to pay each Authenticating Agent from time to time reasonable compensation
for its services under this Section. If the Trustee makes such payments, it shall be entitled to
be reimbursed for such payments, subject to the provisions of Section 6.7.

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     The provisions of Sections 3.8, 6.4 and 6.5 shall be applicable to each Authenticating Agent.

     If an Authenticating Agent is appointed with respect to one or more series of Securities
pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to
or in lieu of the Trustee’s certificate of authentication, an alternate certificate of
authentication in substantially the following form:

     This is one of the Securities of the series designated herein referred to in the within
mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

By:

as Authenticating Agent

By:

Authorized Officer

     If all of the Securities of any series may not be originally issued at one time, and if the
Trustee does not have an office capable of authenticating Securities upon original issuance located
in a Place of Payment where the Company wishes to have Securities of such series authenticated upon
original issuance, the Trustee, if so requested in writing (which writing need not be accompanied
by or contained in an Officer’s Certificate by the Company), shall appoint in accordance with this
Section an Authenticating Agent having an office in a Place of Payment designated by the Company
with respect to such series of Securities.

ARTICLE 7

Holders Lists and Reports by Trustee and Company

     Section 7.1. Company to Furnish Trustee Names and Addresses of Holders.

     In accordance with Section 312(a) of the Trust Indenture Act, the Company shall furnish or
cause to be furnished to the Trustee

     (1) semi annually with respect to Securities of each series not later than June 1 and
December 1 of the year or upon such other dates as are set forth in or pursuant to the Board
Resolution or indenture supplemental hereto authorizing such series, a list, in each case in
such form as the Trustee may reasonably require, of the names and addresses of Holders as of
the applicable date, and

     (2) at such other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content as of a date
not more than 15 days prior to the time such list is furnished,

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provided, however, that so long as the Trustee is the Security Registrar no such list shall be
required to be furnished.

     Section 7.2. Preservation of Information; Communications to Holders.

     The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of the
Trust Indenture Act.

     Every Holder of Securities or Coupons, by receiving and holding the same, agrees with the
Company and the Trustee that none of the Company, the Trustee, any Paying Agent or any Security
Registrar shall be held accountable by reason of the disclosure of any such information as to the
names and addresses of the Holders of Securities in accordance with Section 312(c) of the Trust
Indenture Act, regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant to a request made
under Section 312(b) of the Trust Indenture Act.

     Section 7.3. Reports by Trustee.

     (1) Within 60 days after May 15 of each year commencing with the first May 15 following
the first issuance of Securities pursuant to Section 3.1, if required by Section 313(a) of
the Trust Indenture Act, the Trustee shall transmit, pursuant to Section 313(c) of the Trust
Indenture Act, a brief report dated as of such May 15 with respect to any of the events
specified in said Section 313(a) which may have occurred since the later of the immediately
preceding May 15 and the date of this Indenture.

     (2) The Trustee shall transmit the reports required by Section 313(a) of the Trust
Indenture Act at the times specified therein.

     (3) Reports pursuant to this Section shall be transmitted in the manner and to the
Persons required by Sections 313(c) and 313(d) of the Trust Indenture Act.

     Section 7.4. Reports by Company.

     The Company, pursuant to Section 314(a) of the Trust Indenture Act, shall:

     (1) file with the Trustee, within 15 days after the Company is required to file the
same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Company may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act
of 1934, as amended; or, if the Company is not required to file information, documents or
reports pursuant to either of said Sections, then it shall file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents and reports which
may be required pursuant to Section 13 of the Securities Exchange Act of 1934, as amended,
in respect of a security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations;

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     (2) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (3) transmit within 30 days after the filing thereof with the Trustee, in the manner
and to the extent provided in Section 313(c) of the Trust Indenture Act, such summaries of
any information, documents and reports required to be filed by the Company pursuant to
paragraphs (1) and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.

ARTICLE 8

Consolidation, Merger and Sales

     Section 8.1. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge into any other Person (whether or not
affiliated with the Company), or convey, transfer or lease its properties and assets as an entirety
or substantially as an entirety to any other Person (whether or not affiliated with the Company),
and the Company shall not permit any other Person (whether or not affiliated with the Company) to
consolidate with or merge into the Company; unless:

     (1) in case the Company shall consolidate with or merge into another Person or convey,
transfer or lease its properties and assets as an entirety or substantially as an entirety
to any Person, the Person formed by such consolidation or into which the Company is merged
or the Person which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company as an entirety or substantially as an entirety shall be a Corporation
organized and existing under the laws of the United States
of America or any state thereof or the District of Columbia and shall expressly assume,
by an indenture (or indentures, if at such time there is more than one Trustee) supplemental
hereto, executed by the successor Person and delivered to the Trustee the due and punctual
payment of the principal of, any premium and interest on and any Additional Amounts with
respect to all the Securities and the performance of every obligation in this Indenture and
the Outstanding Securities on the part of the Company to be performed or observed and shall
provide for conversion or exchange rights in accordance with the provisions of the
Securities of any series that are convertible or exchangeable into Common Stock or other
securities;

     (2) immediately after giving effect to such transaction and treating any indebtedness
which becomes an obligation of the Company or a Subsidiary as a result of such transaction
as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default or event which, after notice or lapse of time, or both, would become an
Event of Default, shall have occurred and be continuing; and

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     (3) either the Company or the successor Person shall have delivered to the Trustee an
Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture comply with this Article and
that all conditions precedent herein provided for relating to such transaction have been
complied with.

     Section 8.2. Successor Person Substituted for Company.

     Upon any consolidation by the Company with or merger of the Company into any other Person or
any conveyance, transfer or lease of the properties and assets of the Company substantially as an
entirety to any Person in accordance with Section 8.1, the successor Person formed by such
consolidation or into which the Company is merged 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 Indenture with the same effect as if such successor Person had been named as the
Company herein; and thereafter, except in the case of a lease, the predecessor Person shall be
released from all obligations and covenants under this Indenture, the Securities and the Coupons.

ARTICLE 9

Supplemental Indentures

     Section 9.1. Supplemental Indentures without Consent of Holders.

     Without the consent of any Holders of Securities or Coupons, the Company (when authorized by
or pursuant to a Board Resolution) and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, for any of the following
purposes:

     (1) to evidence the succession of another Person to the Company, and the assumption by
any such successor of the covenants of the Company, contained herein and in the Securities;
or

     (2) to add to the covenants of the Company for the benefit of the Holders of all or any
series of Securities (as shall be specified in such supplemental indenture or indentures) or
to surrender any right or power herein conferred upon the Company; or

     (3) to add to or change any of the provisions of this Indenture to provide that Bearer
Securities may be registrable as to principal, to change or eliminate any restrictions on
the payment of principal of, any premium or interest on or any Additional Amounts with
respect to Securities, to permit Bearer Securities to be issued in exchange for Registered
Securities, to permit Bearer Securities to be exchanged for Bearer Securities of other
authorized denominations or to permit or facilitate the issuance of Securities in
uncertificated form, provided any such action shall not adversely affect the interests of
the Holders of Outstanding Securities of any series or any Coupons appertaining thereto in
any material respect; or

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     (4) to establish the form or terms of Securities of any series and any Coupons
appertaining thereto as permitted by Sections 2.1 and 3.1; or

     (5) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 6.10; or

     (6) to cure any ambiguity or to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions
with respect to matters or questions arising under this Indenture which shall not adversely
affect the interests of the Holders of Securities of any series then Outstanding or any
Coupons appertaining thereto in any material respect; or

     (7) to add to, delete from or revise the conditions, limitations and restrictions on
the authorized amount, terms or purposes of issue, authentication and delivery of
Securities, as herein set forth; or

     (8) to add any additional Events of Default with respect to all or any series of
Securities (as shall be specified in such supplemental indenture); or

     (9) to supplement any of the provisions of this Indenture to such extent as shall be
necessary to permit or facilitate the defeasance and discharge of any series of Securities
pursuant to Article 4, provided that any such action shall not adversely affect the
interests of any Holder of an Outstanding Security of such series and any Coupons
appertaining thereto or any other Outstanding Security or Coupon in any material
respect; or

     (10) to make provisions with respect to conversion or exchange rights of Holders of
Securities of any series; or

     (11) to amend or supplement any provision contained herein or in any supplemental
indenture, provided that no such amendment or supplement shall materially adversely affect
the interests of the Holders of any Securities then Outstanding.

     Section 9.2. Supplemental Indentures with Consent of Holders.

     With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series affected by such supplemental indenture, by Act of said
Holders delivered to the Company and the Trustee, the Company (when authorized by or pursuant to a
Company’s Board Resolution) and the Trustee may enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of
the provisions of this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture or of the Securities of such series; provided,
however, that no such supplemental indenture, without the consent of the Holder of each Outstanding
Security affected thereby, shall

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     (1) change the Stated Maturity of the principal of, or any premium or installment of
interest on or any Additional Amounts with respect to, any Security, or reduce the principal
amount thereof or the rate (or modify the calculation of such rate) of interest thereon or
any Additional Amounts with respect thereto, or any premium payable upon the redemption
thereof or otherwise, or change the obligation of the Company to pay Additional Amounts
pursuant to the terms hereof (except as contemplated by Section 8.1(1) and permitted by
Section 9.1(1)), or reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 5.2 or the amount thereof provable in bankruptcy pursuant to
Section 5.4, change the redemption provisions or adversely affect the right of repayment at
the option of any Holder as contemplated by Article 13, or change the Place of Payment,
Currency in which the principal of, any premium or interest on, or any Additional Amounts
with respect to any Security is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date or, in the case of repayment at the option of
the Holder, on or after the date for repayment), or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders is required for any waiver (of compliance with certain provisions
of this Indenture or certain defaults hereunder and their consequences)
provided for in this Indenture, or reduce the requirements of Section 15.4 for quorum
or voting, or

     (3) modify any of the provisions of this Section, Section 5.13 or Section 10.6, except
to increase any such percentage or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each Outstanding
Security affected thereby, or

     (4) make any change that adversely affects the right to convert or exchange any
Security into or for securities of the Company or other securities, (whether or not issued
by the Company) cash or property in accordance with its terms.

     A supplemental indenture which changes or eliminates any covenant or other provision of this
Indenture which shall have been included expressly and solely for the benefit of one or more
particular series of Securities, or which modifies the rights of the Holders of Securities of such
series with respect to such covenant or other provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Securities of any other series.

     It shall not be necessary for any Act of Holders of Securities under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

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     Section 9.3. Execution of Supplemental Indentures.

     As a condition to executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trust created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section 315 of the Trust
Indenture Act) shall be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture and an
Officer’s Certificate stating that all conditions precedent to the execution of such supplemental
indenture have been fulfilled. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

     Section 9.4. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of a Security theretofore or thereafter authenticated
and delivered hereunder and of any Coupon appertaining thereto shall be bound thereby.

     Section 9.5. Reference in Securities to Supplemental Indentures.

     Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities of any series so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be
prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.

     Section 9.6. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

     Section 9.7. Notice of Supplemental Indenture.

     Promptly after the execution by the Company and the Trustee of any supplemental indenture
pursuant to Section 9.2, the Company shall transmit to the Holders of Outstanding Securities of any
series affected thereby a notice setting forth the substance of such supplemental indenture.

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ARTICLE 10

Covenants

	 	 	Section 10.1. Payment of Principal, any Premium, Interest and Additional Amounts.

     The Company covenants and agrees for the benefit of the Holders of the Securities of each
series that it will duly and punctually pay the principal of, any premium and interest on and any
Additional Amounts with respect to the Securities of such series in accordance with the terms
thereof, any Coupons appertaining thereto and this Indenture. Any interest due on any Bearer
Security on or before the Maturity thereof, and any Additional Amounts payable with respect to such
interest, shall be payable only upon presentation and surrender of the Coupons appertaining thereto
for such interest as they severally mature.

     Section 10.2. Maintenance of Office or Agency.

     The Company shall maintain in each Place of Payment for any series of Securities an Office or
Agency where Securities of such series (but not Bearer Securities, except as otherwise provided
below, unless such Place of Payment is located outside the United States) may be presented or
surrendered for payment, where Securities of such series may be surrendered for registration of
transfer or exchange, where Securities of such series that are convertible or exchangeable may be
surrendered for conversion or exchange, and where notices and demands to
or upon the Company in respect of the Securities of such series relating thereto and this
Indenture may be served. If Securities of a series are issuable as Bearer Securities, the Company
shall maintain, subject to any laws or regulations applicable thereto, an Office or Agency in a
Place of Payment for such series which is located outside the United States where Securities of
such series and any Coupons appertaining thereto may be presented and surrendered for payment;
provided, however, that if the Securities of such series are listed on The Stock Exchange of the
United Kingdom and the Republic of Ireland or the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so require, the Company
shall maintain a Paying Agent in London, Luxembourg or any other required city located outside the
United States, as the case may be, so long as the Securities of such series are listed on such
exchange. The Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such Office or Agency. If at any time the Company shall fail to
maintain any such required Office or Agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, except that Bearer Securities of such series and any Coupons
appertaining thereto may be presented and surrendered for payment at the place specified for the
purpose with respect to such Securities as provided in or pursuant to this Indenture, and the
Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.

     Except as otherwise provided in or pursuant to this Indenture, no payment of principal,
premium, interest or Additional Amounts with respect to Bearer Securities shall be made at any
Office or Agency in the United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States; provided,

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however, if
amounts owing with respect to any Bearer Securities shall be payable in Dollars, payment of
principal of, any premium or interest on and any Additional Amounts with respect to any such
Security may be made at the Corporate Trust Office of the Trustee or any Office or Agency
designated by the Company in the Borough of Manhattan, The City of New York, if (but only if)
payment of the full amount of such principal, premium, interest or Additional Amounts at all
offices outside the United States maintained for such purpose by the Company in accordance with
this Indenture is illegal or effectively precluded by exchange controls or other similar
restrictions.

     The Company may also from time to time designate one or more other Offices or Agencies where
the Securities of one or more series may be presented or surrendered for any or all such purposes
and may from time to time rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain an Office or
Agency in each Place of Payment for Securities of any series for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission and of any change
in the location of any such other Office or Agency. Unless otherwise provided in or pursuant to
this Indenture, the Company hereby designates as the Place of Payment for each series of Securities
the Borough of Manhattan, The City of New York, and initially appoints the Corporate Trust Office
of the Trustee as the Office or Agency of the Company in the Borough of Manhattan, The City of New
York for such purpose. The Company may subsequently appoint a different Office or Agency in the
Borough of Manhattan, The City of New York, Chicago, Illinois or Milwaukee, Wisconsin for the
Securities of any series.

     Unless otherwise specified with respect to any Securities pursuant to Section 3.1, if and so
long as the Securities of any series (i) are denominated in a Foreign Currency or (ii) may be
payable in a Foreign Currency, or so long as it is required under any other provision of this
Indenture, then the Company will maintain with respect to each such series of Securities, or as so
required, at least one exchange rate agent.

     Section 10.3. Money for Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it shall, on or before each due date of the principal of, any premium or interest on or
Additional Amounts with respect to any of the Securities of such series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency
unit or units or composite currency or currencies in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 3.1 for the Securities of such series)
sufficient to pay the principal or any premium, interest or Additional Amounts so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and
shall promptly notify the Trustee of its action or failure so to act.

     Whenever the Company shall have one or more Paying Agents for any series of Securities, it
shall, on or prior to each due date of the principal of, any premium or interest on or any
Additional Amounts with respect to any Securities of such series, deposit with any Paying Agent a
sum (in the currency or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal or any premium, interest or
Additional Amounts so becoming due, such sum to be held in trust for the benefit of

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the Persons
entitled thereto, and (unless such Paying Agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.

     The Company shall cause each Paying Agent for any series of Securities other than the Trustee
to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the
Trustee, subject to the provisions of this Section, that such Paying Agent shall:

     (1) hold all sums held by it for the payment of the principal of, any premium or
interest on or any Additional Amounts with respect to Securities of such series in trust for
the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as provided in or pursuant to this Indenture;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon
the Securities of such series) in the making of any payment of principal, any premium or
interest on or any Additional Amounts with respect to the Securities of such series; and

     (3) at any time during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same terms as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such sums.

     Except as otherwise provided herein or pursuant hereto, any money deposited with the Trustee
or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, any
premium or interest on or any Additional Amounts with respect to any Security of any series or any
Coupon appertaining thereto and remaining unclaimed for two years after such principal or any such
premium or interest or any such Additional Amounts shall have become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security or any Coupon appertaining thereto shall thereafter, as an
unsecured general creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the Company cause to be
published once, in an Authorized Newspaper in each Place of Payment for such series or to be mailed
to Holders of Registered Securities of such series, or both, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication or mailing nor shall it be later than two years after such principal and
any premium or interest or Additional Amounts shall have become due and payable, any unclaimed
balance of such money then remaining will be repaid to the Company.

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     Section 10.4. Additional Amounts.

     If any Securities of a series provide for the payment of Additional Amounts, the Company
agrees to pay to the Holder of any such Security or any Coupon appertaining thereto Additional
Amounts as provided in or pursuant to this Indenture or such Securities. Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon or the net proceeds
received on the sale or exchange of any Security of any series, such mention shall be deemed to
include mention of the payment of Additional Amounts provided by the terms of such series
established hereby or pursuant hereto to the extent that, in such context, Additional Amounts are,
were or would be payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not be construed as
excluding Additional Amounts in those provisions hereof where such express mention is not made.

     Except as otherwise provided in or pursuant to this Indenture or the Securities of the
applicable series, if the Securities of a series provide for the payment of Additional Amounts, at
least 10 days prior to the first Interest Payment Date with respect to such series of Securities
(or if the Securities of such series shall not bear interest prior to Maturity, the first day on
which a
payment of principal is made), and at least 10 days prior to each date of payment of principal
or interest if there has been any change with respect to the matters set forth in the below
mentioned Officer’s Certificate, the Company shall furnish to the Trustee and the principal Paying
Agent or Paying Agents, if other than the Trustee, an Officer’s Certificate instructing the Trustee
and such Paying Agent or Paying Agents whether such payment of principal of and premium, if any, or
interest on the Securities of such series shall be made to Holders of Securities of such series or
the Coupons appertaining thereto who are United States Aliens without withholding for or on account
of any tax, assessment or other governmental charge described in the Securities of such series. If
any such withholding shall be required, then such Officer’s Certificate shall specify by country
the amount, if any, required to be withheld on such payments to such Holders of Securities or
Coupons, and the Company agrees to pay to the Trustee or such Paying Agent the Additional Amounts
required by the terms of such Securities. The Company covenants to indemnify the Trustee and any
Paying Agent for, and to hold them harmless against, any loss, liability or expense reasonably
incurred without negligence or bad faith on their part arising out of or in connection with actions
taken or omitted by any of them in reliance on any Officer’s Certificate furnished pursuant to this
Section 10.4.

     Section 10.5. Corporate Existence.

     Subject to Article 8, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence.

     Section 10.6. Waiver of Certain Covenants.

     The Company may omit in any particular instance to comply with any term, provision or
condition with respect to the Securities of any series that is included in such series pursuant to
clause (18) of Section 3.1 if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series, by Act of such

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Holders,
either shall waive such compliance in such instance or generally shall have waived compliance with
such term, provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee in respect of any
such term, provision or condition shall remain in full force and effect.

     Section 10.7. Company Statement as to Compliance; Notice of Certain Defaults.

     (1) The Company shall deliver to the Trustee, within 120 days after the end of each
fiscal year, a written statement (which need not be contained in or accompanied by an
Officer’s Certificate) signed by the principal executive officer, the principal financial
officer or the principal accounting officer of the Company, stating that

     (a) a review of the activities of the Company during such year and of its
performance under this Indenture has been made under his or her supervision, and

     (b) to the best of his or her knowledge, based on such review, (a) the Company
has complied with all the conditions and covenants imposed on it under this
Indenture throughout such year, or, if there has been a default in the fulfillment
of any such condition or covenant, specifying each such default known to him or her
and the nature and status thereof, and (b) no event has occurred and is continuing
which is, or after notice or lapse of time or both would become, an Event of
Default, or, if such an event has occurred and is continuing, specifying each such
event known to him and the nature and status thereof.

     (2) The Company shall deliver to the Trustee, within five days after the occurrence
thereof, written notice of any Event of Default or any event which after notice or lapse of
time or both would become an Event of Default pursuant to clause (4) of Section 5.1.

     (3) The Trustee shall have no duty to monitor the Company’s compliance with the
covenants contained in this Article 10 other than as specifically set forth in this Section
10.7.

ARTICLE 11

Redemption of Securities

     Section 11.1. Applicability of Article.

     Redemption of Securities of any series at the option of the Company as permitted or required
by the terms of such Securities shall be made in accordance with the terms of such Securities and
(except as otherwise provided herein or pursuant hereto) this Article.

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     Section 11.2. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the election of the Company of (a) less than all of
the Securities of any series or (b) all of the Securities of any series, with the same issue date,
interest rate or formula, Stated Maturity and other terms, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to
the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities
of such series to be redeemed.

     Section 11.3. Selection by Trustee of Securities to be Redeemed.

     If less than all of the Securities of any series with the same issue date, interest rate or
formula, Stated Maturity and other terms are to be redeemed, the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee from
the Outstanding Securities of such series not previously called for redemption, by such method as
the Trustee shall deem fair and appropriate and which may provide for the selection for redemption
of portions of the principal amount of Registered Securities of such series; provided, however,
that no such partial redemption shall reduce the portion of the principal amount of a Registered
Security of such series not redeemed to less than the minimum denomination for a Security of such
series established herein or pursuant hereto.

     The Trustee shall promptly notify the Company and the Security Registrar (if other than
itself) in writing of the Securities selected for redemption and, in the case of any Securities
selected for partial redemption, the principal amount thereof to be redeemed.

     For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal of such Securities which has been or is
to be redeemed.

     Unless otherwise specified in or pursuant to this Indenture or the Securities of any series,
if any Security selected for partial redemption is converted into other securities of the Company
or exchanged for securities of another issuer in part before termination of the conversion or
exchange right with respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for redemption.
Securities which have been converted or exchanged during a selection of Securities to be redeemed
shall be treated by the Trustee as Outstanding for the purpose of such selection.

     Section 11.4. Notice of Redemption.

     Notice of redemption shall be given in the manner provided in Section 1.6, not less than 30
nor more than 60 days prior to the Redemption Date, unless a shorter period is specified in the
Securities to be redeemed, to the Holders of Securities to be redeemed. Failure to give notice by
mailing in the manner herein provided to the Holder of any Registered Securities 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 Securities or portion thereof.

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     Any notice that is mailed to the Holder of any Registered Securities in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not such Holder
receives the notice.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

     (3) if less than all Outstanding Securities of any series are to be redeemed, the
identification (and, in the case of partial redemption, the principal amount) of the
particular Security or Securities to be redeemed,

     (4) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder of such Security will receive, without charge, a new Security or
Securities of authorized denominations for the principal amount thereof remaining
unredeemed,

     (5) that, on the Redemption Date, the Redemption Price shall become due and payable
upon each such Security or portion thereof to be redeemed, and, if applicable, that interest
thereon shall cease to accrue on and after said date,

     (6) the place or places where such Securities, together (in the case of Bearer
Securities) with all Coupons appertaining thereto, if any, maturing after the Redemption
Date, are to be surrendered for payment of the Redemption Price and any accrued interest and
Additional Amounts pertaining thereto,

     (7) that the redemption is for a sinking fund, if such is the case,

     (8) that, unless otherwise specified in such notice, Bearer Securities of any series,
if any, surrendered for redemption must be accompanied by all Coupons maturing subsequent to
the date fixed for redemption or the amount of any such missing Coupon or Coupons will be
deducted from the Redemption Price, unless security or indemnity satisfactory to the
Company, the Trustee and any Paying Agent is furnished,

     (9) if Bearer Securities of any series are to be redeemed and no Registered Securities
of such series are to be redeemed, and if such Bearer Securities may be exchanged for
Registered Securities not subject to redemption on the Redemption Date pursuant to Section
3.5 or otherwise, the last date, as determined by the Company, on which such exchanges may
be made,

     (10) in the case of Securities of any series that are convertible into Common Stock of
the Company or exchangeable for other securities, the conversion or exchange price or rate,
the date or dates on which the right to convert or exchange the principal of the Securities
of such series to be redeemed will commence or terminate and the place or places where such
Securities may be surrendered for conversion or exchange, and

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     (11) the CUSIP number or the Euroclear or the Cedel reference numbers of such
Securities, if any (or any other numbers used by a Depository to identify such Securities).

     A notice of redemption published as contemplated by Section 1.6 need not identify particular
Registered Securities to be redeemed.

     Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

     Section 11.5. Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company shall deposit, with respect to the Securities
of any series called for redemption pursuant to Section 11.4, with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.3) an amount of money in the applicable Currency sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date, unless
otherwise specified pursuant to Section 3.1 or in the Securities of such series) any accrued
interest on and Additional Amounts with respect thereto, all such Securities or portions thereof
which are to be redeemed on that date.

     Section 11.6. Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall,
on the Redemption Date, become due and payable at the Redemption Price therein specified, and from
and after such date (unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest and the Coupons for such interest
appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall
be void. Upon surrender of any such Security for redemption in accordance with said notice,
together with all Coupons, if any, appertaining thereto maturing after the Redemption Date, such
Security shall be paid by the Company at the Redemption Price, together with any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except as otherwise
provided in or pursuant to this Indenture or the Bearer Securities of such series, installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only upon presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 10.2), and provided,
further, that, except as otherwise specified in or pursuant to this Indenture or the Registered
Securities of such series, installments of interest on Registered Securities whose Stated Maturity
is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the Regular Record
Dates therefor according to their terms and the provisions of Section 3.7.

     If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant
Coupons maturing after the Redemption Date, such Security may be paid after deducting from the
Redemption Price an amount equal to the face amount of all such missing

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Coupons, or the surrender
of such missing Coupon or Coupons may be waived by the Company
and the Trustee if there be furnished to them such security or indemnity as they may require
to save each of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing Coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be entitled to receive
the amount so deducted; provided, however, that any interest or Additional Amounts represented by
Coupons shall be payable only upon presentation and surrender of those Coupons at an Office or
Agency for such Security located outside of the United States except as otherwise provided in
Section 10.2.

     If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium, until paid, shall bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

     Section 11.7. Securities Redeemed in Part.

     Any Registered Security which is to be redeemed only in part shall be surrendered at any
Office or Agency for such Security (with, if the Company or the Trustee so requires, 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 his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Registered Security or Securities of the same series, containing
identical terms and provisions, of any authorized denomination as requested by such Holder in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the U.S. Depository or other Depository
for such Security in global form as shall be specified in the Company Order with respect thereto to
the Trustee, without service charge, a new Security in global form in a denomination equal to and
in exchange for the unredeemed portion of the principal of the Security in global form so
surrendered.

ARTICLE 12

Sinking Funds

     Section 12.1. Applicability of Article.

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

     The minimum amount of any sinking fund payment provided for by the terms of Securities of any
series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of
such minimum amount provided for by the terms of Securities of such series is herein referred to as
an “optional sinking fund payment”. If provided for by the terms of
Securities of any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 12.2. Each sinking fund payment shall be applied to the

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redemption of Securities of any series as provided for by the terms of Securities of such series
and this Indenture.

     Section 12.2. Satisfaction of Sinking Fund Payments with Securities.

     The Company may, in satisfaction of all or any part of any sinking fund payment with respect
to the Securities of any series to be made pursuant to the terms of such Securities (1) deliver
Outstanding Securities of such series (other than any of such Securities previously called for
redemption or any of such Securities in respect of which cash shall have been released to the
Company), together in the case of any Bearer Securities of such series with all unmatured Coupons
appertaining thereto, and (2) apply as a credit Securities of such series which have been redeemed
either at the election of the Company pursuant to the terms of such series of Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, provided that such series of Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking fund and the amount of
such sinking fund payment shall be reduced accordingly. If, as a result of the delivery or credit
of Securities of any series in lieu of cash payments pursuant to this Section 12.2, the principal
amount of Securities of such series to be redeemed in order to satisfy the remaining sinking fund
payment shall be less than $100,000, the Trustee need not call Securities of such series for
redemption, except upon Company Request, and such cash payment shall be held by the Trustee or a
Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the
Trustee or such Paying Agent shall at the request of the Company from time to time pay over and
deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon
delivery by the Company to the Trustee of Securities of that series purchased by the Company having
an unpaid principal amount equal to the cash payment requested to be released to the Company.

     Section 12.3. Redemption of Securities for Sinking Fund.

     Not less than 75 days prior to each sinking fund payment date for any series of Securities,
the Company shall deliver to the Trustee an Officer’s Certificate specifying the amount of the next
ensuing mandatory sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting of Securities of that series pursuant to
Section 12.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory
sinking fund payment, and will also deliver to the Trustee any Securities to be so credited and not
theretofore delivered. If such Officer’s Certificate shall specify an optional amount to be added
in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be
obligated to pay the amount therein specified. Not less than 60 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 11.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company in the manner
provided in Section 11.4. Such notice having been duly given, the redemption of such Securities
shall be made upon the terms and in the manner stated in Sections 11.6 and 11.7.

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ARTICLE 13

Repayment at the Option of Holders

     Section 13.1. Applicability of Article.

     Securities of any series which are repayable at the option of the Holders thereof before their
Stated Maturity shall be repaid in accordance with the terms of the Securities of such series. The
repayment of any principal amount of Securities pursuant to such option of the Holder to require
repayment of Securities before their Stated Maturity, for purposes of Section 3.9, shall not
operate as a payment, redemption or satisfaction of the indebtedness represented by such Securities
unless and until the Company, at its option, shall deliver or surrender the same to the Trustee
with a directive that such Securities be cancelled. Notwithstanding anything to the contrary
contained in this Section 13.1, in connection with any repayment of Securities, the Company may
arrange for the purchase of any Securities by an agreement with one or more investment bankers or
other purchasers to purchase such Securities by paying to the Holders of such Securities on or
before the close of business on the repayment date an amount not less than the repayment price
payable by the Company on repayment of such Securities, and the obligation of the Company to pay
the repayment price of such Securities shall be satisfied and discharged to the extent such payment
is so paid by such purchasers.

ARTICLE 14

Securities in Foreign Currencies

     Section 14.1. Applicability of Article.

     Whenever this Indenture provides for (i) any action by, or the determination of any of the
rights of, Holders of Securities of any series in which not all of such Securities are denominated
in the same Currency, or (ii) any distribution to Holders of Securities, in the absence of any
provision to the contrary in the form of Security of any particular series or pursuant to this
Indenture or the Securities, any amount in respect of any Security denominated in a Currency other
than Dollars shall be treated for any such action or distribution as that amount of Dollars that
could be obtained for such amount on such reasonable basis of exchange and as of the record date
with respect to Registered Securities of such series (if any) for such action, determination of
rights or distribution (or, if there shall be no applicable record date, such other date reasonably
proximate to the date of such action, determination of rights or distribution) as the Company may
specify in a written notice to the Trustee.

ARTICLE 15

Meetings of Holders of Securities

     Section 15.1. Purposes for Which Meetings May Be Called.

     A meeting of Holders of Securities of any series may be called at any time and from time to
time pursuant to this Article to make, give or take any request, demand, authorization,

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direction,
notice, consent, waiver or other Act provided by this Indenture to be made, given or taken by
Holders of Securities of such series.

     Section 15.2. Call, Notice and Place of Meetings.

     (1) The Trustee may at any time call a meeting of Holders of Securities of any series
for any purpose specified in Section 15.1, to be held at such time and at such place in the
Borough of Manhattan, The City of New York, or, if Securities of such series have been
issued in whole or in part as Bearer Securities, in London or in such place outside the
United States as the Trustee shall determine. Notice of every meeting of Holders of
Securities of any series, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 1.6, not less than 21 nor more than 180 days prior to the date fixed for
the meeting.

     (2) In case at any time the Company (by or pursuant to a Board Resolution) or the
Holders of at least 10% in principal amount of the Outstanding Securities of any series
shall have requested the Trustee to call a meeting of the Holders of Securities of such
series for any purpose specified in Section 15.1, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not
have mailed notice of or made the first publication of the notice of such meeting within 21
days after receipt of such request (whichever shall be required pursuant to Section 1.6) or
shall not thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above specified, as the
case may be, may determine the time and the place in the Borough of Manhattan, The City of
New York, or, if Securities of such series are to be issued as Bearer Securities, in London
for such meeting and may call such meeting for such purposes by giving notice thereof as
provided in clause (1) of this Section.

     Section 15.3. Persons Entitled to Vote at Meetings.

     To be entitled to vote at any meeting of Holders of Securities of any series, a Person shall
be (1) a Holder of one or more Outstanding Securities of such series, or (2) a Person appointed by
an instrument in writing as proxy for a Holder or Holders of one or more Outstanding
Securities of such series by such Holder or Holders. The only Persons who shall be entitled
to be present or to speak at any meeting of Holders of Securities of any series shall be the
Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and
its counsel and any representatives of the Company and its counsel.

     Section 15.4. Quorum; Action.

     The Persons entitled to vote a majority in principal amount of the Outstanding Securities of a
series shall constitute a quorum for any meeting of Holders of Securities of such series. In the
absence of a quorum within 30 minutes after the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders of Securities of such series, be dissolved. In any
other case the meeting may be adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment of such meeting. In the absence of a

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quorum at
any reconvened meeting, such reconvened meeting may be further adjourned for a period of not less
than 10 days as determined by the chairman of the meeting prior to the adjournment of such
reconvened meeting. Notice of the reconvening of any adjourned meeting shall be given as provided
in Section 15.2(1), except that such notice need be given only once not less than five days prior
to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided above, of the principal amount
of the Outstanding Securities of such series which shall constitute a quorum.

     Except as limited by the proviso to Section 9.2, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by
the affirmative vote of the Holders of a majority in principal amount of the Outstanding Securities
of that series; provided, however, that, except as limited by the proviso to Section 9.2, any
resolution with respect to any request, demand, authorization, direction, notice, consent, waiver
or other Act which this Indenture expressly provides may be made, given or taken by the Holders of
a specified percentage, which is less than a majority, in principal amount of the Outstanding
Securities of a series may be adopted at a meeting or an adjourned meeting duly reconvened and at
which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified
percentage in principal amount of the Outstanding Securities of such series.

     Any resolution passed or decision taken at any meeting of Holders of Securities of any series
duly held in accordance with this Section shall be binding on all the Holders of Securities of such
series and the Coupons appertaining thereto, whether or not such Holders were present or
represented at the meeting.

     Section 15.5. Determination of Voting Rights; Conduct and Adjournment of Meetings.

     (1) Notwithstanding any other provisions of this Indenture, the Trustee may make such
reasonable regulations as it may deem advisable for any meeting of Holders of Securities of
such series in regard to proof of the holding of Securities of such series and
of the appointment of proxies and in regard to the appointment and duties of inspectors
of votes, the submission and examination of proxies, certificates and other evidence of the
right to vote, and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations, the holding
of Securities shall be proved in the manner specified in Section 1.4 and the appointment of
any proxy shall be proved in the manner specified in Section 1.4 or by having the signature
of the person executing the proxy witnessed or guaranteed by any trust company, bank or
banker authorized by Section 1.4 to certify to the holding of Bearer Securities. Such
regulations may provide that written instruments appointing proxies, regular on their face,
may be presumed valid and genuine without the proof specified in Section 1.4 or other proof.

     (2) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by Holders of
Securities as provided in Section 15.2(2), in which case the Company or the Holders of
Securities of the series calling the meeting, as the case may be, shall in like

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manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting
shall be elected by vote of the Persons entitled to vote a majority in principal amount of
the Outstanding Securities of such series represented at the meeting.

     (3) At any meeting, each Holder of a Security of such series or proxy shall be entitled
to one vote for each $1,000 principal amount of Securities of such series held or
represented by him; provided, however, that no vote shall be cast or counted at any meeting
in respect of any Security challenged as not Outstanding and ruled by the chairman of the
meeting to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or proxy.

     (4) Any meeting of Holders of Securities of any series duly called pursuant to Section
15.2 at which a quorum is present may be adjourned from time to time by Persons entitled to
vote a majority in principal amount of the Outstanding Securities of such series represented
at the meeting; and the meeting may be held as so adjourned without further notice.

     Section 15.6. Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders of Securities of any series
shall be by written ballots on which shall be subscribed the signatures of the Holders of
Securities of such series or of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the secretary of the meeting
their verified written reports in triplicate of all votes cast at the meeting. A record, at least
in triplicate, of the proceedings of each meeting of Holders of Securities of any series shall be
prepared by the secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by
one or more persons having knowledge of the facts setting forth a copy of the notice of the
meeting and showing that said notice was given as provided in Section 15.2 and, if applicable,
Section 15.4. Each copy shall be signed and verified by the affidavits of the permanent chairman
and secretary of the meeting and one such copy shall be delivered to the Company and another to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at
the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein
stated.

ARTICLE 16

Subordination of Securities

     Section 16.1. Applicability of Article.

     Unless otherwise provided with respect to the Securities of any series in or pursuant to the
Board Resolution, Officer’s Certificate or supplemental indenture establishing such series of
Securities pursuant to Section 3.1, the provisions of this Article shall, notwithstanding any other
provision hereof (other than any provision hereof expressly providing that the provisions of this
Article do not apply), be applicable to each series of Securities.

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     Section 16.2. Securities Subordinate to Senior Debt.

     The Company covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article (subject to the provisions of Article 4), the payment of the principal of (and premium, if
any) and interest on each and all of the Securities of such series are hereby expressly made
subordinate and subject in right of payment to the prior indefeasible payment in full of all Senior
Indebtedness.

     No provisions of this Article 16 shall prevent the occurrence of any Event of Default.

     Section 16.3. Payment Over of Proceeds Upon Dissolution, Etc.

     In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to the Company or to its creditors, as such, or to its assets, or (b) any liquidation, dissolution
or other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors generally or any other
marshalling of assets and liabilities of the Company, then and in any such event specified in (a),
(b) or (c) above (each such event, if any, herein sometimes referred to as a “Proceeding”) the
holders of Senior Indebtedness shall be entitled to receive indefeasible payment in full of all
amounts due or to become due on or in respect of all Senior Indebtedness, or provision shall be
made for such payment in cash or cash equivalents or otherwise in a manner satisfactory to the
holders of Senior Indebtedness, before the Holders of the Securities are entitled to receive any
payment or distribution of any kind or character, whether in cash, property or securities
(including any payment or distribution which may be payable or deliverable by reason of the payment
of any other indebtedness of the Company subordinated to the payment of the Securities, such
payment or distribution being hereinafter referred to as a “Junior Subordinated Payment”), on
account of principal of (or premium, if any) or interest on the
Securities or on account of any purchase or other acquisition of Securities by the Company or
any Subsidiary of the Company (all such payments, distributions, purchases and acquisitions, other
than the payment or distribution of stock or securities of the Company referred to in the second
succeeding paragraph, herein referred to, individually and collectively, as a “Securities
Payment”), and to that end the holders of Senior Indebtedness shall be entitled to receive, for
application to the payment thereof, any Securities Payment which may be payable or deliverable in
respect of the Securities in any such Proceeding.

     In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or
the Holder of any Security shall have received any Securities Payment before all Senior
Indebtedness is indefeasibly paid in full or payment thereof provided for in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior Indebtedness, and if
such fact shall, at or prior to the time of such Securities Payment, have been made known to the
Trustee or, as the case may be, such Holder, then and in such event such Securities Payment shall
be paid over or delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of assets of the Company
for application to the payment of all Senior Indebtedness remaining unpaid, to the

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extent necessary
to pay all Senior Indebtedness in full, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness.

     For purposes of this Article only, the words “any payment or distribution of any kind or
character, whether in cash, property or securities” shall not be deemed to include a payment or
distribution of stock or securities of the Company provided for by a plan of reorganization or
readjustment authorized by an order or decree of a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy law or of any other Corporation provided
for by such plan of reorganization or readjustment which stock or securities are subordinated in
right of payment to all then outstanding Senior Indebtedness to substantially the same extent as
the Securities are so subordinated as provided in this Article. The consolidation of the Company
with, or the merger of the Company into, another Person or the liquidation or dissolution of the
Company following the conveyance or transfer of all or substantially all of its assets to another
Person upon the terms and conditions set forth in Article 8 shall not be deemed a Proceeding for
the purposes of this Section if the Person formed by such consolidation or into which the Company
is merged or the Person which acquires by conveyance or transfer such assets, as the case may be,
shall, as a part of such consolidation, merger, conveyance or transfer, comply with the conditions
set forth in Article 8.

     Section 16.4. No Payment When Senior Indebtedness in Default.

     In the event that any Senior Payment Default (as defined below) shall have occurred and be
continuing, then no Securities Payment shall be made unless and until such Senior Payment Default
shall have been cured or waived or shall have ceased to exist or all amounts then due and payable
in respect of Senior Indebtedness shall have been indefeasibly paid in full, or provision shall
have been made for such payment in cash or cash equivalents or otherwise in a manner satisfactory
to the holders of Senior Indebtedness; provided, however, that nothing in this Section shall
prevent the satisfaction of any sinking fund payment in accordance with Article 12 by delivering
and crediting pursuant to Section 12.2 Securities which have been acquired (upon redemption or
otherwise) prior to such Senior Payment Default.

     “Senior Payment Default” means any default in the payment of principal of (or premium, if any)
or interest on any Senior Indebtedness when due, whether at the stated maturity of any such payment
or by declaration of acceleration, call for redemption or otherwise.

     In the event that any Senior Nonmonetary Default (as defined below) shall have occurred and be
continuing, then, upon the receipt by the Company and the Trustee of written notice of such Senior
Nonmonetary Default from a holder (or agent or trustee thereof) of the Senior Indebtedness which is
the subject of such Senior Nonmonetary Default, no Securities Payment shall be made during the
period (the “Payment Blockage Period”) commencing on the date of such receipt of such written
notice and ending on the earlier of (i) the date on which such Senior Nonmonetary Default shall
have been cured or waived or shall have ceased to exist or all Senior Indebtedness the subject of
such Senior Nonmonetary Default shall have been indefeasibly discharged; (ii) the number of days
after the date of such receipt of such written notice that is specified for Securities of a
particular series pursuant to clause (23) of Section 3.1; or (iii) the date on which the Payment
Blockage Period shall have been terminated by written notice to the Company or the Trustee from a
holder (or agent or trustee thereof) of the Senior Indebtedness

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initiating the Payment Blockage
Period; provided, however, that nothing in this Section shall prevent the satisfaction of any
sinking fund payment in accordance with Article 12 by delivering and crediting pursuant to Section
12.2 Securities which have been acquired (upon redemption or otherwise) prior to the date of such
receipt of such written notice. No more than one Payment Blockage Period may be commenced with
respect to the Securities of a particular series during any period whose length is specified for
Securities of a particular series pursuant to clause (23) of Section 3.1 (such period, the
“Specified Period”) and there shall be a period of at least the number of consecutive days that is
specified for Securities of a particular series pursuant to clause (23) of Section 3.1 in each
Specified Period when no Payment Blockage Period is in effect. For all purposes of this paragraph,
no Senior Nonmonetary Default that existed or was continuing on the date of commencement of any
Payment Blockage Period shall be, or be made, the basis for the commencement of a subsequent
Payment Blockage Period, whether or not within a period of the number of consecutive days equal to
the Specified Period, unless such Senior Nonmonetary Default shall have been cured for a period of
not less than the number of consecutive days that is specified for Securities of a particular
series pursuant to clause (23) of Section 3.1.

     “Senior Nonmonetary Default” means the occurrence or existence and continuance of any event of
default with respect to any Senior Indebtedness, other than a Senior Payment Default, permitting
the holders of such Senior Indebtedness (or a trustee or agent on behalf of the holders thereof) to
declare such Senior Indebtedness due and payable prior to the date on which it would otherwise
become due and payable.

     In the event that, notwithstanding the foregoing, the Company shall make any Securities
Payment to the Trustee or any Holder prohibited by the foregoing provisions of this Section, and if
such fact shall, at or prior to the time of such Securities Payment, have been made known to the
Trustee or, as the case may be, such Holder, then and in such event such Securities Payment shall
be paid over and delivered forthwith to the Company.

     The provisions of this Section shall not apply to any Securities Payment with respect to which
Section 16.3 would be applicable.

     Section 16.5. Payment Permitted If No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any of the Securities
shall prevent (a) the Company, at any time except during the pendency of any Proceeding referred to
in Section 16.3 or under the conditions described in Section 16.4, from making Securities Payments,
or (b) the application by the Trustee of any money deposited with it hereunder to Securities
Payments or the retention of such Securities Payment by the Holders, if, at the time of such
application by the Trustee, it did not have knowledge that such Securities Payment would have been
prohibited by the provisions of this Article.

     Section 16.6. Subrogation to Rights of Holders of Senior Indebtedness.

     Subject to the indefeasible payment in full of all amounts due or to become due on or in
respect of Senior Indebtedness, or the provision for such payment in cash or cash equivalents or
otherwise in a manner satisfactory to the holders of Senior Indebtedness, the Holders of the

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Securities shall be subrogated to the rights of the holders of such Senior Indebtedness to receive
payments and distributions of cash, property and securities applicable to the Senior Indebtedness
until the principal of (and premium, if any) and interest on the Securities shall be paid in full.
For purposes of such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the Securities or the
Trustee would be entitled except for the provisions of this Article, and no payments over pursuant
to the provisions of this Article to the holders of Senior Indebtedness by Holders of the
Securities or the Trustee, shall, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders of the Securities, be deemed to be a payment or distribution by the
Company to or on account of the Senior Indebtedness.

     Section 16.7. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose of defining the
relative rights of the Holders on the one hand and the holders of Senior Indebtedness on the other
hand. Nothing contained in this Article or elsewhere in this Indenture or in the Securities is
intended to or shall (a) impair, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders of the Securities, the obligation of the Company, which is absolute
and unconditional (and which, subject to the rights under this Article of the holders of Senior
Indebtedness, is intended to rank equally with all other general obligations of the Company), to
pay to the Holders of the Securities the principal of (and premium, if any) and interest on the
Securities as and when the same shall become due and payable in accordance with their terms; or (b)
affect the relative rights against the Company of the Holders of the Securities and creditors of
the Company other than the holders of Senior Indebtedness; or (c) prevent the Trustee or the Holder
of any Security from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article of the holders of Senior
Indebtedness to receive cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder.

     Section 16.8. Trustee to Effectuate Subordination.

     Each Holder of a Security by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the subordination
provided in this Article and appoints the Trustee his attorney-in-fact for any and all such
purposes.

     Section 16.9. No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to

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the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior Indebtedness, do
any one or more of the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Indebtedness, or otherwise amend or supplement in any
manner Senior Indebtedness or any instrument evidencing the same or any agreement under which
Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Indebtedness; (iii) release any Person
liable in any manner for the collection of Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

     Section 16.10. Notice to Trustee.

     The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment to or by the Trustee in respect of the Securities.
Notwithstanding the provisions of this Article or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless and until the
Trustee shall have received written notice thereof from the Company or a holder of Senior
Indebtedness or from any trustee or agent therefor; and, prior to the receipt of any such written
notice, the Trustee, subject to the provisions of Section 6.1, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall not have received the
notice provided for in this Section at least three Business Days prior to the date upon which by
the terms hereof any money may become payable for any purpose (including, without limitation, the
payment of the principal of (and premium, if any) or interest on any Security), then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purpose for which such money was received and
shall not be affected by any notice to the contrary which may be received by it within three
Business Days prior to such date.

     Subject to the provisions of Section 6.1, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a holder of Senior
Indebtedness (or a trustee or agent therefor) to establish that such notice has been given by a
holder of Senior Indebtedness (or a trustee or agent therefor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this
Article, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of
the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article, and if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the right of such Person
to receive such payment.

     Section 16.11. Reliance on Judicial Order or Certificate of Liquidating Agent.

     Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 6.1, and the Holders of the Securities shall be

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entitled to rely upon any order or decree entered by any court of competent jurisdiction in which
such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors generally, agent or other Person making
such payment or distribution, delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining the Persons entitled to participate in such payment or distribution, the
holders of the Senior Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article.

     Section 16.12. Trustee Not Fiduciary for Holders of Senior Indebtedness.

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if it shall in good faith mistakenly pay
over or distribute to Holders of Securities or to the Company or to any other Person cash, property
or securities to which any holders of Senior Indebtedness shall be entitled by virtue of this
Article or otherwise.

     Section 16.13. Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s
Rights.

     The Trustee in its individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder.

     Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.7.

     Section 16.14. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee; provided, however, that Section 16.3
shall not apply to the Company, or any Affiliate of the Company if the Company or its Affiliate
acts as Paying Agent.

     Section 16.15. Defeasance of this Article Twelve.

     The subordination of the Securities of a series provided by this Article 16 is expressly made
subject to the provisions for Defeasance or Covenant Defeasance in Article 4 hereof and, anything
herein to the contrary notwithstanding, upon the effectiveness of any such Defeasance or Covenant
Defeasance, the Securities of such series then outstanding shall thereupon cease to be subordinated
pursuant to this Article 16.

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[The next page is the signature page]

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     IN WITNESS WHEREOF, the parties hereto have caused this Subordinated Indenture to be duly
executed, and their respective corporate seals to be hereunto affixed, all as of the day and year
first above written.

	 	 	 	 	 	 	 
	[SEAL]	 	MGIC INVESTMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	[SEAL]	 	U.S. BANK NATIONAL ASSOCIATION,

as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

84

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