Document:

EX-4.1

Exhibit 4.1

 

CONVERGYS CORPORATION

as Issuer

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

Indenture

Dated as of [October __], 2009

 

5.75% Junior Subordinated Convertible Debentures due 2029

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1

	Definitions and Other Provisions of General Application

	 
	 	 	 	 
	Section 1.01. Definitions

	 	 	6	 
	Section 1.02. Compliance Certificates and Opinions

	 	 	18	 
	Section 1.03. Form of Documents Delivered to Trustee

	 	 	19	 
	Section 1.04. Acts of Holders; Record Dates

	 	 	20	 
	Section 1.05. Notices, Etc., to Trustee and Company

	 	 	20	 
	Section 1.06. Notice to Holders; Waiver

	 	 	21	 
	Section 1.07. Conflict with Trust Indenture Act

	 	 	21	 
	Section 1.08. Effect of Headings and Table of Contents

	 	 	21	 
	Section 1.09. Successors and Assigns

	 	 	22	 
	Section 1.10. Severability Clause

	 	 	22	 
	Section 1.11. Benefits of Indenture

	 	 	22	 
	Section 1.12. Governing Law; Waiver of Jury Trial

	 	 	22	 
	Section 1.13. Legal Holiday

	 	 	22	 
	Section 1.14. Force Majeure

	 	 	22	 
	Section 1.15. U.S.A. Patriot Act

	 	 	22	 
	Section 1.16. Execution in Counterparts

	 	 	23	 
	Section 1.17. Calculations

	 	 	23	 
	Section 1.18. Limitation on Individual Liability

	 	 	23	 
	 
	 	 	 	 
	ARTICLE 2

	Issue, Description, Execution, Registration and Exchange of Securities

	 
	 	 	 	 
	Section 2.01. Title and Terms; Payments

	 	 	24	 
	Section 2.02. Denominations

	 	 	24	 
	Section 2.03. Execution, Authentication, Delivery and Dating

	 	 	24	 
	Section 2.04. Temporary Securities

	 	 	25	 
	Section 2.05. Registration; Registration of Transfer and Exchange

	 	 	25	 
	Section 2.06. Mutilated, Destroyed, Lost and Stolen Securities

	 	 	27	 
	Section 2.07. Persons Deemed Owners

	 	 	27	 
	Section 2.08. Book-Entry Provisions for Global Securities

	 	 	28	 
	Section 2.09. Cancellation and Transfer Provisions

	 	 	29	 
	Section 2.10. CUSIP Numbers

	 	 	29	 
	Section 2.11. Additional Securities; Repurchases

	 	 	29	 
	 
	 	 	 	 
	ARTICLE 3

	Interest

	 
	 	 	 	 
	Section 3.01. Generally

	 	 	30	 

i 

 

	 	 	 	 	 
	 	 	Page
	Section 3.02. Contingent Interest

	 	 	31	 
	Section 3.03. Bid Solicitation Agent’s Responsibilities in Respect of Contingent Interest

	 	 	32	 
	Section 3.04. Payment of Contingent Interest

	 	 	32	 
	Section 3.05. Contingent Interest Notification

	 	 	32	 
	Section 3.06. Defaulted Amounts

	 	 	32	 
	 
	 	 	 	 
	ARTICLE 4

	Subordination

	 
	 	 	 	 
	Section 4.01. Agreement of Subordination

	 	 	33	 
	Section 4.02. Payments to Holders

	 	 	33	 
	Section 4.03. Subrogation of Securities

	 	 	36	 
	Section 4.04. Authorization to Effect Subordination

	 	 	37	 
	Section 4.05. Notice to Trustee

	 	 	37	 
	Section 4.06. Trustee’s Relation to Senior Debt

	 	 	38	 
	Section 4.07. No Impairment of Subordination

	 	 	38	 
	Section 4.08. No Impairment of Conversion Right

	 	 	38	 
	Section 4.09. Article Applicable to Paying Agents

	 	 	38	 
	Section 4.10. Senior Debt Entitled to Rely

	 	 	39	 
	 
	 	 	 	 
	ARTICLE 5

	Covenants

	 
	 	 	 	 
	Section 5.01. Payments and Deliveries

	 	 	39	 
	Section 5.02. Maintenance of Office or Agency

	 	 	39	 
	Section 5.03. Appointments to Fill Vacancies in Trustee’s Office

	 	 	40	 
	
Section 5.04. Money and Common Shares for Payments and Deliveries on Securities to be Held in Trust 

	 	40

	Section 5.05. Statement by Officers as to Default

	 	 	41	 
	Section 5.06. Existence

	 	 	41	 
	Section 5.07. Book-Entry System

	 	 	41	 
	Section 5.08. Additional Interest

	 	 	41	 
	Section 5.09. Commission Filings And Reports

	 	 	42	 
	Section 5.10. Stay, Extension and Usury Laws

	 	 	42	 
	Section 5.11. Further Instruments and Acts

	 	 	42	 
	Section 5.12. Tax Treatment of the Securities

	 	 	42	 
	Section 5.13. Certain Distributions and Dividends

	 	 	43	 
	 
	 	 	 	 
	ARTICLE 6

	Redemption

	 
	 	 	 	 
	Section 6.01. Right to Redeem; Notices to Trustee

	 	 	43	 
	Section 6.02. Selection of Securities to Be Redeemed

	 	 	44	 
	Section 6.03. Redemption Notice

	 	 	44	 
	Section 6.04. Effect of Redemption Notice

	 	 	45	 

ii 

 

	 	 	 	 	 
	 	 	Page
	Section 6.05. Deposit of Redemption Price

	 	 	45	 
	Section 6.06. Securities Redeemed in Part

	 	 	46	 
	 
	 	 	 	 
	ARTICLE 7

	Fundamental Changes and Repurchases Thereupon

	 
	 	 	 	 
	Section 7.01. Repurchase at Option of Holders Upon a Fundamental Change

	 	 	46	 
	Section 7.02. Effect of Fundamental Change Repurchase Notice

	 	 	51	 
	Section 7.03. Withdrawal of Fundamental Change Repurchase Notice

	 	 	52	 
	Section 7.04. Deposit of Fundamental Change Repurchase Price

	 	 	52	 
	Section 7.05. Securities Repurchased in Whole or in Part

	 	 	52	 
	Section 7.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities

	 	 	53	 
	Section 7.07. Repayment to the Company

	 	 	53	 
	 
	 	 	 	 
	ARTICLE 8

	Conversion

	 
	 	 	 	 
	Section 8.01. Conversion Right

	 	 	53	 
	Section 8.02. Settlement Upon Conversion; Conversion Procedure

	 	 	56	 
	Section 8.03. Adjustment of Conversion Rate

	 	 	58	 
	Section 8.04. Shares to Be Fully Paid

	 	 	66	 
	Section 8.05. Adjustments of Average Prices

	 	 	66	 
	Section 8.06. Adjustment to Shares Delivered Upon Conversion Upon a Make-Whole Fundamental Change

	 	 	67	 
	Section 8.07. Effect of Recapitalizations, Reclassifications and Changes to the Common Shares

	 	 	69	 
	Section 8.08. Certain Covenants

	 	 	71	 
	Section 8.09. Responsibility of Trustee

	 	 	71	 
	Section 8.10. Notice to Holders Prior to Certain Actions

	 	 	72	 
	Section 8.11. Shareholder Rights Plans

	 	 	72	 
	Section 8.12. Exchange in Lieu of Conversion

	 	 	73	 
	Section 8.13. Limit on Issuance of Common Shares upon Conversion

	 	 	73	 
	 
	 	 	 	 
	ARTICLE 9

	Events of Default; Remedies

	 
	 	 	 	 
	Section 9.01. Events of Default

	 	 	74	 
	Section 9.02. Acceleration of Stated Maturity; Rescission and Annulment

	 	 	76	 
	Section 9.03. Additional Interest

	 	 	76	 
	Section 9.04. Collection of Indebtedness and Suits for Enforcement by Trustee

	 	 	77	 
	Section 9.05. Trustee May File Proofs of Claim

	 	 	77	 
	Section 9.06. Application of Money Collected

	 	 	77	 
	Section 9.07. Limitation on Suits

	 	 	78	 
	Section 9.08. Unconditional Right of Holders to Receive Payment and Consideration Due Upon Conversion

	 	 	78	 

iii 

 

	 	 	 	 	 
	 	 	Page
	Section 9.09. Restoration of Rights and Remedies

	 	 	79	 
	Section 9.10. Rights and Remedies Cumulative

	 	 	79	 
	Section 9.11. Delay or Omission Not Waiver

	 	 	79	 
	Section 9.12. Control by Holders

	 	 	79	 
	Section 9.13. Waiver of Past Defaults

	 	 	80	 
	Section 9.14. Undertaking for Costs

	 	 	80	 
	 
	 	 	 	 
	ARTICLE 10

	Consolidation, Merger, Sale, Conveyance, Transfer Or Lease

	 
	 	 	 	 
	Section 10.01. Company May Consolidate, etc., Only on Certain Terms

	 	 	80	 
	Section 10.02. Successor Substituted

	 	 	81	 
	 
	 	 	 	 
	ARTICLE 11

	The Trustee

	 
	 	 	 	 
	Section 11.01. Certain Duties and Responsibilities

	 	 	82	 
	Section 11.02. Notice of Defaults

	 	 	82	 
	Section 11.03. Certain Rights of Trustee

	 	 	82	 
	Section 11.04. Not Responsible for Recitals

	 	 	84	 
	Section 11.05. May Hold Securities

	 	 	84	 
	Section 11.06. Money Held in Trust

	 	 	84	 
	Section 11.07. Compensation, Reimbursement; Indemnification

	 	 	84	 
	Section 11.08. Disqualification; Conflicting Interests

	 	 	85	 
	Section 11.09. Corporate Trustee Required; Eligibility

	 	 	85	 
	Section 11.10. Resignation and Removal; Appointment of Successor

	 	 	86	 
	Section 11.11. Acceptance of Appointment by Successor

	 	 	87	 
	Section 11.12. Merger, Conversion, Consolidation or Succession to Business

	 	 	87	 
	Section 11.13. Preferential Collection of Claims against the Company

	 	 	88	 
	 
	 	 	 	 
	ARTICLE 12

	Holders’ Lists And Reports By Trustee

	 
	 	 	 	 
	Section 12.01. Company to Furnish Trustee Names and Addresses of Holders

	 	 	88	 
	Section 12.02. Preservation of Information; Communications to Holders

	 	 	88	 
	Section 12.03. Reports By Trustee

	 	 	88	 
	 
	 	 	 	 
	ARTICLE 13

	Satisfaction And Discharge

	 
	 	 	 	 
	Section 13.01. Satisfaction and Discharge of Indenture

	 	 	89	 
	Section 13.02. Deposited Monies and Common Shares, if any, to Be Held in Trust by Trustee
	 	 	89	 
	Section 13.03. Reinstatement

	 	 	90	 

iv 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 14

	Supplemental Indentures

	 
	 	 	 	 
	Section 14.01. Supplemental Indentures Without Consent of Holders

	 	 	90	 
	Section 14.02. Supplemental Indentures with Consent of Holders

	 	 	91	 
	Section 14.03. Execution of Supplemental Indentures

	 	 	91	 
	Section 14.04. Notice of Supplemental Indenture

	 	 	92	 
	Section 14.05. Effect of Supplemental Indentures

	 	 	92	 
	Section 14.06. Conformity with Trust Indenture Act

	 	 	92	 
	Section 14.07. Reference in Securities to Supplemental Indentures

	 	 	92	 
	EXHIBIT

	Exhibit A      Form of Security

	 	 	A-1	 

v 

 

     INDENTURE, dated as of [October ___], 2009, between Convergys Corporation, a corporation duly
organized and existing under the laws of the State of Ohio, as Issuer (the “Company”), having its
principal office at 201 East Fourth Street, Cincinnati, OH 45202, and U.S. Bank National
Association, a national banking association, as Trustee (the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company has duly authorized the creation of an issuance of its 5.75% Junior
Subordinated Convertible Debentures due 2029 (each a “Security” and collectively, the “Securities”)
of the tenor and amount hereinafter set forth, and to provide therefor the Company has duly
authorized the execution and delivery of this Indenture; and

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH, for and in consideration of the premises and the
purchases of the Securities by the Holders thereof, it is mutually agreed, for the benefit of the
Company and the equal and proportionate benefit of all Holders of the Securities, as follows:

ARTICLE 1

Definitions and Other Provisions of General Application

     Section 1.01. Definitions. For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

     (i) the terms defined in this Section 1.01 have the meanings assigned to them in this
Section 1.01 and include the plural as well as the singular;

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

     (iii) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with GAAP; and

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

     “Acquiror Securities” means securities of the acquiror that are Publicly Traded Securities.

6

 

     “Act,” when used with respect to any Holder, has the meaning specified in Section 1.04(a).

     “Additional Interest” means all amounts, if any, payable pursuant to Section 9.03.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control” when used with respect to any specified Person means the
power to direct the management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

     “Agent Members” has the meaning specified in Section 2.08(a).

     “Bid Solicitation Agent” means the Person appointed by the Company to solicit bids for the
Trading Price of the Securities in accordance with Section 3.02(b) and Section 8.01(b). The
Trustee shall initially act as the Bid Solicitation Agent.

     “Board of Directors” means, with respect to any Person, either the board of directors of such
Person or any duly authorized committee of that board.

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

     “Business Day” means any day other than a Saturday, a Sunday or a day on which the Federal
Reserve Bank of New York is authorized or required by law or executive order to close or be closed.

     “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock and, with respect to partnerships, partnership
interests (whether general or limited) and any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or distributions of assets of,
such partnership.

     “Cash Percentage” shall have the meaning specified in Section 8.02(b).

     “Cash Percentage Notice” shall have the meaning specified in Section 8.02(b).

     “Clause A Distribution” shall have the meaning specified in Section 8.03(c).

     “Clause B Distribution” shall have the meaning specified in Section 8.03(c).

     “Clause C Distribution” shall have the meaning specified in Section 8.03(c).

7

 

     “close of business” means 5:00 p.m. (New York City time).

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

     “Common Equity” of any Person means Capital Stock of such Person that is generally entitled
(a) to vote in the election of directors of such Person or (b) if such Person is not a corporation,
to vote or otherwise participate in the selection of the governing body, partners, managers or
others that will control the management or policies of such Person.

     “Common Shares” means, subject to Section 8.07, the common shares, no par value per share, of
the Company as they exist on the date of this Indenture.

     “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.

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by its Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or any Vice President, its Chief Financial Officer, its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

     “Contingent Debt Regulations” has the meaning specified in Section 5.12.

     “Contingent Interest” has the meaning specified in Section 3.02(a).

     “Conversion Agent” means the Trustee or such other office or agency designated by the Company
as a location where Securities may be presented for conversion.

     “Conversion Date” has the meaning specified in Section 8.02(e).

     “Conversion Obligation” has the meaning specified in Section 8.01.

     “Conversion Price” means as of any date $1,000, divided by the Conversion Rate as of such
date.

     “Conversion Rate” has the meaning specified in Section 8.01.

     “Corporate Trust Office” means the office of the Trustee at which the corporate trust business
of the Trustee shall, at any particular time, be principally administered, which office is, at the
date of this Indenture, located at U.S. Bank National Association, [                    ], Attention: Corporate
Trust Services.

     “Current Conversion Value” means the product of (a) the Conversion Rate in effect on the
relevant Redemption Date and (b) the average of the Daily VWAP of the Common Shares for

8

 

the five consecutive Trading Days ending on the Trading Day immediately preceding such
Redemption Date.

     “Cut-off Date” means the earlier of October 20, 2011 and the date on which the Company’s
Five-Year Competitive Advance and Revolving Credit Facility Agreement dated October 20, 2006, as
amended on August 11, 2008, is terminated.

     “Daily Conversion Value” means, for each of the 20 consecutive Trading Days during the
Observation Period, 5% of the product of (a) the applicable Conversion Rate and (b) the Daily VWAP
of the Common Shares on such Trading Day.

     “Daily Settlement Amount,” for each of the 20 consecutive Trading Days during the Observation
Period, shall consist of:

     (a) cash equal to the lesser of (i) $50 and (ii) the Daily Conversion Value; and

     (b) if the Daily Conversion Value exceeds $50, a number of Common Shares (the “Daily
Share Amount”), subject to the Company’s right to pay cash in lieu of all or a portion of
such shares pursuant to Section 8.02(b), equal to (i) the difference between the Daily
Conversion Value and $50, divided by (ii) the Daily VWAP for such Trading Day.

     “Daily Share Amount” has the meaning specified in clause (b) of the definition of Daily
Settlement Amount.

     “Daily VWAP” means for any Trading Day the per share volume-weighted average price as
displayed under the heading “Bloomberg VWAP” on Bloomberg page “CVG.N <equity> AQR” (or its
equivalent successor if such page is not available) in respect of the period from the scheduled
open of trading until the scheduled close of trading of the primary trading session on such Trading
Day (or if such volume-weighted average price is unavailable, the market value of one Common Share
on such Trading Day determined, using a volume-weighted average method, by a nationally recognized
independent investment banking firm retained for this purpose by the Company). The “Daily VWAP”
shall be determined without regard to after-hours trading or any other trading outside of the
regular trading session trading hours.

     “Default” means any event that is or with the passage of time or the giving of notice or both
would become an Event of Default.

     “Defaulted Amounts” means any amounts on any Security (including, without limitation, the
Redemption Price, Fundamental Change Repurchase Price, principal and interest) that are payable but
are not punctually paid or duly provided for.

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

9

 

     “Designated Institution” has the meaning specified in Section 8.12(a).

     “Designated Senior Debt” means the Company’s obligations under any particular Senior Debt in
which the instrument creating or evidencing the same or the assumption or guarantee thereof (or
related agreements or documents to which the Company is a party) expressly provides that such
Senior Debt shall be “Designated Senior Debt” for purposes of this Indenture. The instrument,
agreement or other document evidencing any Designated Senior Debt may place limitations and
conditions on the right of such Senior Debt to exercise the rights of Designated Senior Debt.

     “Distributed Property” has the meaning specified in Section 8.03(c).

     “Effective Date” has the meaning specified in Section 8.06(c).

     “Event of Default” has the meaning specified in Section 9.01.

     “Ex-Dividend Date” means the first date on which the Common Shares trade on the applicable
exchange or in the applicable market, regular way, without the right to receive the issuance,
dividend or distribution in question.

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

     “Form of Assignment and Transfer” means the “Form of Assignment and Transfer” attached as
Attachment 3 to the Form of Security attached hereto as Exhibit A.

     “Form of Fundamental Change Repurchase Notice” means the “Form of Fundamental Change
Repurchase Notice” attached as Attachment 2 to the Form of Security attached hereto as Exhibit A.

     “Form of Notice of Conversion” means the “Form of Notice of Conversion” attached as Attachment
1 to the Form of Security attached hereto as Exhibit A.

     “Form of Security” means the “Form of Security” attached hereto as Exhibit A.

     “Fundamental Change” shall be deemed to have occurred at the time after the Securities are
originally issued if any of the following occurs:

     (a) a “person” or “group” within the meaning of Section 13(d) of the Exchange Act,
other than the Company, its Subsidiaries or the employee benefit plans of the Company or its
Subsidiaries, has become the direct or indirect “beneficial owner,” as defined in Rule 13d-3
under the Exchange Act, of the Company’s Common Equity representing more than 50% of the
voting power of the Company’s Common Equity;

     (b) consummation of (i) any recapitalization, reclassification or change of the Common
Shares (other than changes resulting from a subdivision or combination) as a result of which
the Common Shares would be converted into, or exchanged for, stock,

10

 

other securities, other property or assets or (ii) any share exchange, consolidation or
merger of the Company pursuant to which the Common Shares will be converted into cash,
securities or other property or any sale, lease or other transfer in one transaction or a
series of transactions of all or substantially all of the consolidated assets of the Company
and its Subsidiaries, taken as a whole, to any Person other than one of the Company’s
Subsidiaries; provided, however, that any such transaction in which (x) the Common Shares
are not changed or exchanged except to the extent necessary to reflect a change in the
jurisdiction or organization of the Company or (y) the holders of all classes of the
Company’s Common Equity immediately prior to such transaction that is a share exchange,
consolidation or merger own, directly or indirectly, more than 50% of all classes of Common
Equity of the continuing or surviving corporation or transferee or the parent thereof
immediately after such event, shall not be a Fundamental Change;

     (c) the shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or

     (d) the Common Shares (or other common shares or common stock underlying the
Securities) cease to be listed or quoted on any of The New York Stock Exchange, The NASDAQ
Global Select Market, The NASDAQ Global Market (or any of their respective successors) or
any other national securities exchange;

provided, however, that a transaction or transactions described in clause (b) above shall not
constitute a Fundamental Change if at least 90% of the consideration received or to be received by
the common shareholders of the Company, excluding cash payments for fractional shares and cash
payments made in respect of dissenters rights or appraisal rights, in connection with such
transaction or transactions otherwise constituting a Fundamental Change consists of shares of
Publicly Traded Securities or shares which will be Publicly Traded Securities when issued or
exchanged in connection with such transaction or transactions and as a result of this transaction
or transactions the Securities become convertible into such consideration, excluding cash payments
for fractional shares and cash payments made in respect of dissenters rights or appraisal rights
(subject to the provisions set forth in Section 8.02(a) and Section 8.02(b)). In addition, for
the avoidance of doubt, in no event will a strategic transaction or other divestiture of the
Company’s Information Management Business be considered the sale, lease or other transfer of all or
substantially all of the consolidated assets of the Company and its Subsidiaries for purposes of
this definition of “Fundamental Change.”

     “Fundamental Change Company Notice” has the meaning specified in Section 7.01(d).

     “Fundamental Change Repurchase Date” has the meaning specified in Section 7.01(a).

     “Fundamental Change Repurchase Notice” has the meaning specified in Section 7.01(c)(i).

     “Fundamental Change Repurchase Price” has the meaning specified in Section 7.01(a).

11

 

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, in each case, as in effect in the United States on the date hereof.

     “Global Security” means a Security in global form registered in the Security Register in the
name of a Depositary or a nominee thereof.

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

     “Indebtedness” means, with respect to any Person, without duplication, (a) such Person’s
indebtedness evidenced by a credit or loan agreement, note, bond, debenture or other written
obligation, (b) all obligations of such Person for money borrowed, (c) all obligations of such
Person evidenced by a note or similar instrument; (d) such Person’s obligations (i) as lessee under
leases required to be capitalized on such Person’s balance sheet under GAAP or (ii) as lessee under
other leases for facilities, capital equipment or related assets, whether or not capitalized,
entered into or leased for financing purposes, (e) all obligations of such Person under interest
rate and currency swaps, caps, floors, collars, hedge agreements, forward contracts or similar
agreements or arrangements, (f) all obligations of such Person with respect to letters of credit,
bankers’ acceptances and similar facilities (including reimbursement obligations with respect to
the foregoing), (g) all obligations of such Person issued or assumed as the deferred purchase price
of property or services (but excluding trade accounts payable and accrued liabilities arising in
the ordinary course of business), (h) obligations of the type described in clauses (a) through (g)
above of another Person and all dividends of another Person, the payment of which, in either case,
the Person first referenced above has assumed or guaranteed, or for which the Person first
referenced above is responsible or liable, directly or indirectly, jointly or severally, as
obligor, guarantor or otherwise, or which are secured by a lien on the property of the Person first
referenced above and (i) renewals, extensions, modifications, replacements, restatements and
refundings of, or any indebtedness or obligation issued in exchange for, any indebtedness or
obligation described in clauses (a) through (h) above. The amount of any Indebtedness outstanding
as of any date shall be the accreted value thereof, in the case of any Indebtedness issued with
original issue discount. The amount of any Indebtedness outstanding as of any date with respect to
any interest rate and currency swaps, caps, floors, collars, hedge agreements, forward contracts or
similar agreements or arrangements shall be the termination value thereof. Indebtedness shall not
include liabilities for taxes of any kind.

     “Indenture” means this instrument as originally executed or 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, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of
and govern this instrument and any such supplemental indenture, respectively.

     “Information Management Business” means the reporting segment of the Company that provides
business support system and operational support system (BSS/OSS) solutions and

12

 

capability across a broad functional footprint, combining software, partner products,
integration and business consulting services, and operational expertise to create solutions that
help service providers meet their business goals. The Information Management solution portfolio is
organized into three functional areas: revenue management, enterprise product management, and
customer relationship solutions. All solutions are billed using Infinys components.

     “Initial Conversion Value” means $[                    ].

     “interest” means (a) Regular Interest, (b) Contingent Interest, if any and (c) Additional
Interest, if any. For the avoidance of doubt, any express mention of Contingent Interest or
Additional Interest in any provision hereof shall not be construed as excluding Contingent Interest
or Additional Interest, as the case may be, in those provisions hereof where such express mention
is not made.

     “Interest Payment Date” means each March 15 and September 15 of each year, beginning on March
15, 2010.

     “Issue Date” means the date the Securities are originally issued as set forth on the face of
the Security under this Indenture.

     “Last Reported Sale Price” of the Common Shares on any date means the closing sale price per
share (or if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and the average ask prices) on that date as
reported in composite transactions for the principal U.S. securities exchange on which the Common
Shares are traded. If the Common Shares are not listed for trading on a U.S. national or regional
securities exchange on the relevant date, the “Last Reported Sale Price” shall be the last quoted
bid price for the Common Shares in the over-the-counter market on the relevant date as reported by
Pink OTC Markets Inc. or a similar organization. If the Common Shares are not so quoted, the “Last
Reported Sale Price” shall be the average of the mid-point of the last bid and ask prices for the
Common Shares on the relevant date from each of at least three nationally recognized independent
investment banking firms selected by the Company for this purpose.

     “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change (as defined above under clause (a), (b) or (d) and with respect to clause (b), determined
after giving effect to any exceptions to or exclusions from such definition, but without regard to
the proviso in clause (b) of the definition thereof).

     “Market Disruption Event” means (a) a failure by the primary United States national or
regional securities exchange or market on which the Common Shares are listed or admitted for
trading to open for trading during its regular trading session or (b) the occurrence or existence
prior to 1:00 p.m., New York City time, on any Scheduled Trading Day for the Common Shares for more
than one half-hour period in the aggregate during regular trading hours of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
relevant stock exchange or otherwise) in the Common Shares or in any options, contracts or futures
contracts relating to the Common Shares.

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     “Measurement Period” has the meaning specified in Section 8.01(b).

     “Merger Event” has the meaning specified in Section 8.07(a).

     “Non-Payment Default” has the meaning specified in Section 4.02(b).

     “Notice of Conversion” has the meaning specified in Section 8.02(c).

     “Observation Period” with respect to any Security surrendered for conversion means (a) except
as set forth in the immediately succeeding clause (b), if the relevant Conversion Date occurs on or
after September 15, 2028, the 20 consecutive Trading Day period beginning on, and including, the
22nd Scheduled Trading Day immediately preceding September 15, 2029; (b) if the relevant Conversion
Date occurs on or after the date of issuance of a Redemption Notice, but prior to the relevant
Redemption Date, the 20 consecutive Trading Days beginning on, and including, the 22nd Scheduled
Trading Day immediately preceding such Redemption Date; and (c) in all other instances, the 20
consecutive Trading Days beginning on, and including, the third Trading Day immediately following
the relevant Conversion Date.

     “Officers’ Certificate” means a certificate (a) signed by (i) one of the Chairman of the
Board, Chief Executive Officer, Chief Financial Officer, the President or any Vice President, and
(ii) one of the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of the
Company, and (b) delivered to the Trustee. One of the officers signing an Officers’ Certificate
given pursuant to Section 5.05 shall be the principal executive, financial or accounting officer
of the Company.

     “open of business” means 9:00 a.m. (New York City time).

     “Opinion of Counsel” means a written opinion of counsel, who may be external or in-house
counsel for the Company, and who shall be reasonably acceptable to the Trustee.

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

	 	(a)	 	Securities theretofore cancelled by the Trustee or accepted by the Trustee for
cancellation;
	 
	 	(b)	 	Securities, or portions thereof, for whose payment, redemption or repurchase
money in the necessary amount has been theretofore deposited with the Trustee or any
Paying Agent (if other than the Company or any Subsidiary of the Company) in trust or
set aside and segregated in trust by the Company (if the Company or any Subsidiary of
the Company shall act as Paying Agent) for the Holders of such Securities; provided
that if such Securities are to be redeemed or repurchased prior to the Stated Maturity,
the relevant Redemption Notice or the relevant Fundamental Change Repurchase Notice
shall have been given to the Holders or by Holder(s), as the case may be and as herein
provided, or provision satisfactory

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	 	 	 	to a Responsible Officer of the Trustee shall have been made for giving such notice;
	 
	 	(c)	 	Securities that have been paid or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture; and
	 
	 	(d)	 	Securities that the Company has repurchased in accordance with Section
2.11(b);

provided, however, that in determining whether the Holders of the requisite Principal Amount of the
Outstanding Securities have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only Securities that a
Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor upon the Securities
or any Affiliate of the Company or of such other obligor.

     “Paying Agent” means any Person (including the Company or any Subsidiary of the Company)
authorized by the Company to pay the Principal Amount of, interest on or Redemption Price or
Fundamental Change Repurchase Price of, any Securities on behalf of the Company. The Trustee shall
initially be the Paying Agent.

     “Payment Blockage Notice” has the meaning specified in Section 4.02(b).

     “Payment Default” has the meaning specified in Section 4.02(a).

     “PDF” has the meaning specified in Section 1.16.

     “Percentage Increase” has the meaning specified in Section 8.06(a).

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

     “Physical Securities” means permanent certificated Securities in registered form issued in
denominations of $1,000 Principal Amount and integral multiples thereof.

     “Principal Amount” of a Security means the principal amount set forth on the face of the
Security, which amount, in the case of any Global Security, may from time to time by decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary, as set forth on
the “Schedule of Exchanges of Securities” in Schedule A thereto, in accordance with the rules and
procedures of the Depositary.

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     “Prospectus” means prospectus dated [___], 2009, relating to the exchange offer by the
Company of the Securities for a portion of the Company’s 4.875% Senior Notes due 2009.

     “Publicly Traded Securities” means common shares or shares of common stock that are listed or
quoted on any of The New York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global
Market or any of their respective successors.

     “Record Date” means with respect to any payment of interest, the March 1 or September 1
(whether or not such day is a Business Day) immediately preceding the relevant Interest Payment
Date.

     “Redemption Date” has the meaning specified in Section 6.03(a).

     “Redemption Notice” has the meaning specified in Section 6.03(a).

     “Redemption Price” has the meaning specified in Section 6.01(b).

     “Reference Price” means $[___].

     “Reference Property” has the meaning specified in Section 8.07(a).

     “Regular Interest” has the meaning specified in Section 3.01(a).

     “Representative” means the (a) indenture trustee or other trustee, agent or representative for
any Senior Debt or (b) with respect to any Senior Debt that does not have any such trustee, agent
or other representative, (i) in the case of such Senior Debt issued pursuant to an agreement
providing for voting arrangements as among the holders or owners of such Senior Debt, any holder or
owner of such Senior Debt acting with the consent of the required Persons necessary to bind such
holders or owners of such Senior Debt and (ii) in the case of all other such Senior Debt, the
holder or owner of such Senior Debt.

     “Responsible Officer” means any officer of the Trustee within the Corporate Trust Office with
direct responsibility for the administration of this Indenture and also, with respect to a
particular matter, any other officer of the Trustee to whom such matter is referred because of such
officer’s knowledge and familiarity with the particular subject.

     “Scheduled Trading Day” means a day that is scheduled to be a Trading Day on the primary
United States national securities exchange or market on which the Common Shares are listed or
admitted for trading. If the Common Shares are not so listed or admitted for trading, “Scheduled
Trading Day” means a Business Day.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the Commission promulgated thereunder.

     “Security” or “Securities” has the meaning specified in the first paragraph of the recitals of
this Indenture.

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     “Security Register” and “Security Registrar” have the respective meanings specified in
Section 2.05(a).

     “Senior Debt” means, with respect to the Company, means the principal of (and premium, if any)
and interest (including all interest accruing subsequent to the commencement of any bankruptcy or
similar proceeding, whether or not a claim for post-petition interest is allowable as a claim in
any such proceeding) on, and all fees and other amounts payable in connection with, any
Indebtedness of the Company, whether absolute or contingent, secured or unsecured, due or to become
due, outstanding on the date of this Indenture or thereafter created, incurred or assumed by the
Company. Notwithstanding the foregoing, “Senior Debt” shall not include (a) the Securities, (b)
any other Indebtedness or obligation if its terms or the terms of the instrument under which or
pursuant to which it is issued expressly provide that it is not senior in right of payment to the
Securities, (c) any Indebtedness or obligation of the Company to any Subsidiary of the Company or
(d) any amounts owed by the Company for trade payables.

     “Settlement Amount” has the meaning specified in Section 8.02(a).

     “Spin-Off” has the meaning specified in Section 8.03(c).

     “Stated Maturity” means September 15, 2029.

     “Stock Price” has the meaning specified in Section 8.06(c).

     “Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is
owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the
Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock”
means stock which ordinarily has voting power for the election of directors, whether at all times
or only so long as no senior class of stock has such voting power by reason of any contingency.

     “Surviving Entity” has the meaning specified in Section 10.01(a)(ii).

     “Tax Triggering Event” means the enactment of U.S. federal legislation, promulgation of
Treasury regulations, issuance of a published ruling, notice, announcement or equivalent form of
guidance by the Treasury or the Internal Revenue Service, or the issuance of a judicial decision if
the Company determines, or receives an opinion of its outside advisors to the effect that, any such
authority will have the effect of lowering the comparable yield or delaying or otherwise limiting
the current deductibility of interest or original issue discount with respect to the Securities;
provided that the Company determines that such reduction, delay, or limitation is material.

     “Trading Day” (i) for all purposes under this Indenture other than for purposes of determining
amounts due upon conversion means a day on which (a) trading in the Common Shares generally occurs
on The New York Stock Exchange or, if the Common Shares are not then listed on The New York Stock
Exchange, on the principal other United States national or

17

 

regional securities exchange on which the Common Shares are then listed or, if the Common
Shares are not then listed on a United States national or regional securities exchange, on the
principal other market on which the Common Shares are then traded, (b) a Last Reported Sale Price
for the Common Shares is available on such securities exchange or market and (c) there is no Market
Disruption Event; provided that if the Common Shares (or other security for which a closing sale
price must be determined) are not so listed or traded, “Trading Day” means a Business Day; and (ii)
solely for purposes of determining amounts due upon conversion, “Trading Day” means a day on which
(a) there is no Market Disruption Event and (b) trading in the Common Shares generally occurs on
The New York Stock Exchange or, if the Common Shares are not then listed on The New York Stock
Exchange, on the principal other United States national or regional securities exchange on which
the Common Shares are then listed or, if the Common Shares are not then listed on a United States
national or regional securities exchange, on the principal other market on which the Common Shares
are then traded, except that if the Common Shares (or other securities for which a Daily VWAP must
be determined) are not so listed or traded, “Trading Day” means a Business Day.

     “Trading Price” has the meaning specified (a) in Section 3.02(b) for purposes of determining
whether Contingent Interest is payable in respect of the Securities and (b) in Section 8.01(b) for
purposes of determining whether the Trading Price Condition has been satisfied.

     “Trading Price Condition” has the meaning specified in Section 8.01(b).

     “Trigger Event” has the meaning specified in Section 8.03(c).

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

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

     “Unit of Reference Property” has the meaning specified in Section 8.07(a).

     “Valuation Period” has the meaning specified in  8.03(c).

     “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 1.02. Compliance Certificates and Opinions. 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 such certificates and opinions as may be required under the Trust Indenture
Act. Each such certificate or opinion shall be given in the form of an Officers’

18

 

Certificate, if to be given by an officer of the Company, or an Opinion of Counsel, if to be
given by counsel, and shall comply with the requirements of the Trust Indenture Act and any other
requirement set forth in this Indenture.

     Every Officers’ Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

     (a) a statement that each individual signing such Officers’ Certificate or Opinion of Counsel
has read such covenant or condition and the definitions herein relating thereto;

     (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are
based;

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

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

     Section 1.03. 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 Officers’ Certificate or Opinion of Counsel may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which such Officers’ Certificate or Opinion of
Counsel are based are erroneous. Any such Officers’ Certificate or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the information with respect
to such factual matters is in the possession of the Company, unless such counsel knows, or in the
exercise of reasonable care should know, 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, they may,
but need not, be consolidated and form one instrument.

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     Section 1.04. Acts of Holders; Record Dates. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by 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 agent duly appointed in writing and, except as herein
otherwise expressly provided, such action shall become effective when such instrument or
instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as an “Act” of the Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to Section 11.01) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section 1.04.

     (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his or her individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his or her authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee reasonably deems sufficient.

     (c) The Company may, in the circumstances permitted by the Trust Indenture Act, fix any day as
the record date for the purpose of determining the Holders entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to vote on any
action, authorized or permitted to be given or taken by Holders. If not set by the Company prior
to the first solicitation of a Holder made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action or vote shall be the
30th day (or, if later, the date of the most recent list of Holders required to be provided
pursuant to Section 12.01) prior to such first solicitation or vote, as the case may be. With
regard to any record date, only the Holders on such date (or their duly designated proxies) shall
be entitled to give or take, or vote on, the relevant action.

     (d) The ownership of Securities shall be proved by the Security Register.

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

     Section 1.05. Notices, Etc., to Trustee and Company. Any request, demand, authorization,
direction, notice, consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with:

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

     (ii) the Company by the Trustee or by any Holder shall be sufficient for every purpose
hereunder (unless otherwise herein expressly provided) if in writing (including facsimile)
and mailed, first-class postage prepaid, to the Company addressed to it 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, Attention:
Secretary.

     Section 1.06. Notice to Holders; Waiver. Where this Indenture provides for notice to Holders
of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at
such Holder’s address as it appears in the Security Register, not later than the latest date (if
any), and not earlier than the earliest date (if any), prescribed for the giving of such notice.
In any case where notice to Holders is given by mail, neither the failure to mail such notice, nor
any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice, either before or
after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by
Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such waiver.

     In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice by mail, then such notification as shall be made with
the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

     Whenever under this Indenture the Trustee is required to provide any notice by mail, in all
cases the Trustee may alternatively provide notice by overnight courier or by telefacsimile, with
confirmation of transmission.

     Section 1.07. Conflict with Trust Indenture Act. If any provision hereof limits, qualifies
or conflicts with a provision of the Trust Indenture Act that is required hereunder to be a part of
and govern this Indenture, the provision in the Trust Indenture Act shall control. If any
provision of this Indenture modifies or excludes any provision of the Trust Indenture Act that may
be so modified or excluded, the provision of this Indenture shall apply as so modified or excluded,
as the case may be.

     Section 1.08. Effect of Headings and Table of Contents. The Article and Section headings
herein and the Table of Contents are for convenience only and shall not affect the construction
hereof, and all Article and Section references are to Articles and Sections, respectively, of this
Indenture unless otherwise expressly stated.

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     Section 1.09. Successors and Assigns. All covenants and agreements in this Indenture by the
Company shall bind its successors and assigns, whether so expressed or not.

     Section 1.10. Severability Clause. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     Section 1.11. Benefits of Indenture. Nothing in this Indenture or in the Securities, express
or implied, shall give to any Person, other than the parties hereto and their respective successors
hereunder and the Holders of Securities, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     Section 1.12. Governing Law; Waiver of Jury Trial. (a) THIS INDENTURE AND EACH SECURITY,
AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE AND EACH SECURITY,
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT
REGARD TO THE CONFLICTS OF LAWS PROVISIONS THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW
OTHER THAN THE LAWS OF THE STATE OF NEW YORK).

     (b) EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS INDENTURE, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 1.13. Legal Holiday. If any Interest Payment Date, the Stated Maturity or any
earlier Fundamental Change Repurchase Date or Redemption Date falls on a day that is not a Business
Day, then the required payment need not be made on such date, but shall be made on the next
succeeding Business Day with the same force and effect as if made on the Interest Payment Date,
Stated Maturity, Fundamental Change Repurchase Date or Redemption Date, as applicable, and no
interest on such payment shall accrue in respect of the delay.

     Section 1.14. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications
or computer (software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking industry to resume
performance as soon as practicable under the circumstances.

     Section 1.15. U.S.A. Patriot Act. The parties hereto acknowledge that in accordance with
Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to
help fight the funding of terrorism and money laundering, is required to obtain, verify, and

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record information that identifies each person or legal entity that establishes a relationship
or opens an account with the Trustee. The parties to this Indenture agree that they will provide
the Trustee with such information as it may request in order for the Trustee to satisfy the
requirements of the U.S.A. Patriot Act.

     Section 1.16. Execution in Counterparts. This Indenture may be executed in two or more
counterparts, which when so executed shall constitute one and the same agreement. The exchange of
copies of this Indenture and of signature pages by facsimile or Portable Document Format (“PDF”)
transmission shall constitute effective execution and delivery of this Indenture as to the parties
hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the
parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for
all purposes.

     Section 1.17. Calculations. Except as otherwise provided herein, the Company or its agents
(other than the Trustee) shall be responsible for making all calculations and determinations called
for under this Indenture and the Securities. These calculations include, but are not limited to,
determinations of the Last Reported Sale Prices of the Common Shares, accrued interest payable on
the Securities and the Conversion Rate. The Company or its agents (other than the Trustee) will
make all such calculations and determinations in good faith and, absent manifest error, its
calculations and determinations will be final and binding on Holders. The Company upon request
shall provide a schedule of its calculations to the Trustee and the Conversion Agent (if different
than the Trustee), and the Trustee and Conversion Agent, as applicable, are entitled to rely
conclusively upon the accuracy of the Company’s calculations and determinations without independent
verification. The Trustee will deliver a copy of such schedule to any Holder upon the written
request of such Holder.

     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 shareholder, employee, officer or
director, 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 corporate obligations, and that no such personal liability
whatever shall attach to, or is or shall be incurred by, the shareholders, employees, officers or
directors, 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 shareholder, employee,
officer or director, 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

Issue, Description, Execution, Registration and Exchange of Securities

     Section 2.01. Title and Terms; Payments. The aggregate Principal Amount of Securities that
may be authenticated and delivered under this Indenture is initially limited to $125,000,000,
subject to Section 2.11 and except for Securities authenticated and delivered upon registration or
transfer of, or in exchange for, or in lieu of, other Securities pursuant to Section  2.04,  2.05,
 2.06,  6.06,  7.05 or  14.07.

     The Securities shall be known and designated as the “5.75% Junior Subordinated Convertible
Debentures due 2029” of the Company. The Principal Amount shall be payable at the Stated Maturity.

     The Securities shall not have the benefit of a sinking fund.

     The Securities shall be subordinated to all Senior Debt of the Company.

     The Principal Amount of and interest on Global Securities registered in the name of The
Depository Trust Company or its nominee shall be paid by wire transfer in immediately available
funds to The Depository Trust Company or its nominee, as applicable.

     The Principal Amount of Physical Securities shall be payable at the office or agency of the
Company maintained by it for such purpose pursuant to Section 5.02. Interest on Physical
Securities will be payable (i) to Holders having an aggregate Principal Amount of $5,000,000 or
less, by check mailed to such Holders and (ii) to Holders having an aggregate Principal Amount of
more than $5,000,000, either by check mailed to such Holders or, upon application by a Holder to
the Security Registrar not later than the relevant Record Date for such interest payment, by wire
transfer in immediately available funds to such Holder’s account within the United States, which
application shall remain in effect until the Holder notifies, in writing, the Security Registrar to
the contrary.

     The aggregate Principal Amount of any Global Security may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for the Depositary, as
set forth on the “Schedule of Exchanges of Securities” in Schedule A thereto, in accordance with
the procedures of the Depositary.

     Section 2.02. Denominations. The Securities shall be issuable only in registered form
without coupons in denominations of $1,000 and any integral multiple of $1,000 above that amount.

     Section 2.03. Execution, Authentication, Delivery and Dating. The Securities shall be
executed on behalf of the Company by its Chairman of the Board of Directors, its Chief Executive
Officer, its Chief Financial Officer, its President or one of its Vice Presidents.

     Securities bearing the manual or facsimile signatures of an individual who was at any time a
proper officer of the Company shall bind the Company, notwithstanding that such

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individual has ceased to hold such office prior to the authentication and delivery of such
Securities or did not hold such office at the date of such Securities.

     At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities executed by the Company to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Securities. The Company Order
shall specify the amount of Securities to be authenticated, and shall further specify the amount of
such Securities to be issued as a Global Security or as Physical Securities. The Trustee in
accordance with such Company Order shall authenticate and deliver such Securities as in this
Indenture provided and not otherwise.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be valid or obligatory
for any purpose unless there appears on such Security a certificate of authentication substantially
in the form set forth on the Form of Security, executed by the Trustee by manual signature,
facsimile or PDF, and such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder.

     Section 2.04. Temporary Securities. Pending the preparation of Physical Securities, the
Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities that are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the Physical Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions and other variations
as the officers executing such Securities may determine, as evidenced by their execution of such
Securities; provided that any such temporary Securities shall bear the legends on the face of such
Securities as set forth in Exhibit A.

     If temporary Securities are issued, the Company will cause Physical Securities to be prepared
without unreasonable delay. After the preparation of Physical Securities, the temporary Securities
shall be exchangeable for Physical Securities upon surrender of the temporary Securities at any
office or agency of the Company designated pursuant to Section 5.02, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a like Principal Amount of
Physical Securities of authorized denominations and tenor. Until so exchanged, the temporary
Securities shall in all respects be entitled to the same benefits under this Indenture as Physical
Securities.

     Section 2.05. Registration; Registration of Transfer and Exchange. (a) The Company shall
cause to be kept at the Corporate Trust Office a register (the register maintained in such office
and in any other office or agency designated pursuant to Section 5.02 being herein sometimes
collectively referred to as the “Security Register”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration of Securities and
of transfers of Securities. The Trustee is hereby appointed “Security Registrar”

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(the “Security Registrar”) for the purpose of registering Securities and transfers of
Securities as herein provided.

     Upon surrender for registration of transfer of any Security at an office or agency of the
Company designated pursuant to Section 5.02 for such purpose, the Company shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees,
one or more new Securities of any authorized denominations and of a like aggregate Principal Amount
and tenor, each such Security being the legends as may be required by this Indenture.

     At the option of the Holder and subject to the other provisions of this Section 2.05 and to
Section 2.09, Securities may be exchanged for other Securities of any authorized denominations and
of a like aggregate Principal Amount and tenor, upon surrender of the Securities to be exchanged at
such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the
exchange is entitled to receive.

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

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

     No service charge shall be made for any registration of transfer or exchange of Securities,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any
transfer tax or other similar governmental charge that may be imposed in connection with any
registration of transfer or exchange of Securities, other than exchanges pursuant to Section 2.04
not involving any transfer.

     Neither the Company nor the Security Registrar shall be required to exchange or register a
transfer of any Security (i) during the period beginning at the open of business 15 days before the
mailing of a Redemption Notice to all Holders of Securities to be redeemed and ending at the close
of business on the date on which a Redemption Notice is mailed to all Holders of Securities to be
redeemed, (ii) after any Redemption Notice has been given to Holders, except that where such notice
provides that such Security is to be redeemed only in part, the Company and the Security Registrar
shall be required to exchange or register a transfer of the portion thereof not to be redeemed,
(iii) that has been surrendered for conversion or (iv) as to which a Fundamental Change Repurchase
Notice has been delivered and not withdrawn, except that where such Fundamental Change Repurchase
Notice provides that such Security is to be purchased only in part, the Company and the Security
Registrar shall be required to exchange or register a transfer of the portion thereof not to be
purchased.

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     (b) Neither the Trustee, the Security Registrar nor any of their respective agents shall (i)
have any duty to monitor compliance with or with respect to any federal or state or other
securities or tax laws or (ii) have any duty to obtain documentation relating to any transfers or
exchanges other than as specifically required hereunder.

     Section 2.06. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of like tenor and Principal Amount and bearing a number
not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security 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 has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security, a new Security of like tenor and Principal Amount and
bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable or has been called for redemption in full, the Company in its discretion
may, instead of issuing a new Security, pay all amounts due with respect to such Security.

     Upon the issuance of any new Security under this Section 2.06, the Company may require
payment by the Holder of a sum sufficient to cover any transfer tax or other similar 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 issued pursuant to this Section 2.06 in lieu of any destroyed, lost or
stolen Security shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.

     The provisions of this Section 2.06 are exclusive and shall preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities.

     Section 2.07. Persons Deemed Owners. Prior to due presentment of a Security for registration
of transfer, the Company, the Trustee, the Security Registrar and any agent of the Company, the
Trustee or the Security Registrar may treat the Person in whose name such Security is registered as
the owner of such Security for the purpose of receiving payment of the principal of such Security
and for all other purposes whatsoever, whether or not such Security shall be overdue, and neither
the Company, the Trustee, the Security Registrar nor any agent of the Company, the Trustee or the
Security Registrar shall be affected by notice to the contrary.

27

 

     Section 2.08. Book-Entry Provisions for Global Securities. (a) The Global Securities
initially shall (i) be registered in the name of the Depositary or the nominee of such Depositary,
(ii) be delivered to the Trustee as custodian for the Depositary and (iii) bear the legends set
forth on the face of the Form of Security.

     Members of, or participants in, the Depositary (“Agent Members”) shall have no rights under
this Indenture with respect to any Global Security held on their behalf by the Depositary, or the
Trustee as its custodian, or under the Global Security, and the Depositary may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depositary or impair, as
between the Depositary and its Agent Members, the operation of customary practices governing the
exercise of the rights of any Holder.

     (b) Transfers of the Global Securities shall be limited to transfers in whole, but not in
part, to the Depositary, its successors or their respective nominees. Interests of beneficial
owners in a Global Security may be transferred or exchanged, in whole or in part, for Physical
Securities in accordance with the rules and procedures of the Depositary and the provisions of
Section 2.09. In addition, Physical Securities shall be transferred to each beneficial owner in
accordance with procedures of the Depositary in exchange for its beneficial interest in the Global
Securities only if: (i) such Depositary has notified the Company that the Depositary is unwilling
or unable to continue as Depositary for such Global Security and a successor shall not have been
appointed within 90 days of such notification, or (ii) such Depositary ceases to be registered as a
clearing agency under the Exchange Act and a successor Depositary shall not have been appointed
within 90 days or (iii) an Event of Default with respect to the Securities has occurred and is
continuing and such beneficial owner requests that its Securities be issued as Physical Securities.

     (c) In connection with any transfer or exchange of a portion of the beneficial interest in the
Global Security to beneficial owners pursuant to subsection (b) above, the Security Registrar shall
(if one or more Physical Securities are to be issued) reflect on its books and records the date and
a decrease in the Principal Amount of the Global Security in an amount equal to the Principal
Amount of the beneficial interest in the Global Security to be transferred, and the Company shall
execute, and the Trustee shall authenticate and deliver, one or more Physical Securities of like
tenor and amount.

     (d) In connection with the transfer of the entire Global Security to beneficial owners
pursuant to subsection (b) above, the Global Security shall be deemed to be surrendered to the
Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and
deliver, to each beneficial owner identified by the Depositary in exchange for its beneficial
interest in the Global Security, an equal aggregate Principal Amount of Physical Securities of
authorized denominations and the same tenor.

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     (e) The Holder of the Global Securities may grant proxies and otherwise authorize any Person,
including Agent Members and Persons that may hold interests through Agent Members, to take any
action that a Holder is entitled to take under this Indenture or the Securities.

     Section 2.09. Cancellation and Transfer Provisions. The Company at any time may deliver to
the Trustee for cancellation any Securities previously authenticated and delivered hereunder that
the Company may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company has not issued and
sold. The Trustee shall cancel and dispose of all Securities surrendered for registration of
transfer, exchange, payment, purchase, repurchase, redemption, conversion (pursuant to Article 8)
or cancellation in accordance with its customary practices. If the Company shall acquire any of
the Securities, such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are delivered to the Trustee
for cancellation. The Company may not issue new Securities to replace Securities it has paid in
full or delivered to the Trustee for cancellation.

     The Security Registrar shall retain, in accordance with its customary procedures, copies of
all letters, notices and other written communications received pursuant to this Section 2.09. The
Company shall have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.

     Section 2.10. CUSIP Numbers. In issuing the Securities, the Company may use “CUSIP” numbers
(if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in any Redemption
Notice as a convenience to Holders; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the Securities or as contained
in any Redemption Notice and that reliance may be placed only on the other identification numbers
printed on the Securities, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee in writing of any change in
the “CUSIP” numbers.

     Section 2.11. Additional Securities; Repurchases. (a) The Company may, without the consent
of the Holders and notwithstanding Section 2.01, reopen this Indenture and issue additional
Securities hereunder with the same terms and with the same CUSIP number as the Securities initially
issued hereunder in an unlimited aggregate Principal Amount, which will form the same series with
the Securities initially issued hereunder; provided that such additional Securities must be part of
the same issue as the Securities initially issued hereunder for U.S. federal income tax purposes.
Prior to the issuance of any such additional Securities, the Company shall deliver to the Trustee a
Company Order, an Officers’ Certificate and an Opinion of Counsel, such Officers’ Certificate and
Opinion of Counsel to cover such matters, in addition to those required by Section 1.02, as the
Trustee shall reasonably request.

     (b) The Company may also from time to time repurchase the Securities in open market purchases
or negotiated transactions without giving prior notice to Holders. Any Securities

29

 

purchased by the Company shall be cancelled pursuant to Section 2.09 and be deemed to be no
longer Outstanding under this Indenture.

ARTICLE 3

Interest

     Section 3.01. Generally. (a) Regular interest (“Regular Interest”) shall accrue on the
Securities from [October ___], 2009, or from the most recent date on which interest has been paid or
duly provided for, at a rate of 5.75% per annum until the Principal Amount thereof is paid or made
available for payment. Regular Interest shall be payable by the Company semiannually in arrears on
each Interest Payment Date to the Holder in whose name any Security is registered on the Security
Register at the close of business on the corresponding Record Date.

     (b) Regular Interest on the Securities shall be computed (i) for any full semiannual period
for which Regular Interest is calculated, on the basis of a 360-day year of twelve 30-day months,
(ii) for any period shorter than a full semiannual period for which Regular Interest is calculated,
on the basis of a 30-day month and (iii) for such periods of less than a month, the actual number
of days elapsed over a 30-day month.

     (c) (i) Upon the conversion of any Securities, the Holder of such Securities shall not be
entitled to receive any separate cash payment for accrued and unpaid interest, if any, except to
the extent specified below. The Company’s payment or delivery, as the case may be, to the Holder
of the cash and the full number of Common Shares (subject to the Company’s right to pay cash in
respect of all or a portion of such shares pursuant to Section 8.02(b)), if any, together with any
cash payment for any fractional share, into which a Security is convertible, shall be deemed to
satisfy in full the Company’s obligation to pay the Principal Amount of the Securities so converted
and accrued and unpaid interest, if any, to, but not including, the Conversion Date. As a result,
accrued and unpaid interest, if any, to, but not including, the Conversion Date shall be deemed to
be paid in full rather than cancelled, extinguished or forfeited. Upon a conversion of Securities,
to the extent the Company’s Conversion Obligation includes any Common Shares, accrued and unpaid
interest shall be deemed to be paid first out of the cash paid upon such conversion.

     (ii) Notwithstanding subsection (c)(i) above, if Securities are converted after the
close of business on any Record Date but prior to the open of business on the immediately
following Interest Payment Date, Holders of such Securities at the close of business on such
Record Date shall receive the full amount of interest payable on such Securities on the
corresponding Interest Payment Date notwithstanding the conversion. Securities surrendered
for conversion during the period from the close of business on any Record Date to the open
of business on the immediately following Interest Payment Date must be accompanied by funds
equal to the full amount of interest payable on the Securities so converted on such Interest
Payment Date; provided that no such payment need be made:

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     (A) for conversions following the Record Date immediately preceding the Stated
Maturity;

     (B) if the Company has specified a Redemption Date that is after a Record Date
and on or prior to the Business Day immediately following the corresponding
Interest Payment Date;

     (C) if the Company has specified a Fundamental Change Repurchase Date that is
after a Record Date and on or prior to the Business Day immediately following the
corresponding Interest Payment Date; or

     (D) to the extent of any overdue interest, if any overdue interest exists at
the time of conversion with respect to such Security.

     Section 3.02. Contingent Interest. (a) Beginning with the semiannual interest period
commencing on September 15, 2019, contingent interest on the Securities (“Contingent Interest”)
shall accrue during any semiannual interest period where the average Trading Price of the
Securities for the 10 Trading Days immediately preceding the first day of such semiannual period is
greater than or equal to $1,500 per $1,000 Principal Amount of Securities, in which case such
Contingent Interest payable on each $1,000 Principal Amount of Securities for such semiannual
period shall be equal to 0.75% per annum of such average Trading Price.

     (b) For each semiannual interest period commencing on or after September 15, 2019, the Bid
Solicitation Agent will determine the average Trading Price of the Securities for the 10 Trading
Days immediately preceding the first day of such semiannual period. For purposes of determining
whether Contingent Interest shall be payable in respect of the Securities, the “Trading Price” of
the Securities on any date of determination means the average of the secondary market bid
quotations per $1,000 Principal Amount of Securities obtained by the Bid Solicitation Agent for
$5,000,000 Principal Amount of Securities at approximately 3:30 p.m., New York City time, on such
determination date from three independent nationally recognized securities dealers that the Company
selects; provided that if at least three such bids cannot reasonably be obtained by the Bid
Solicitation Agent, but two such bids are obtained, then the average of the two bids shall be used,
and if only one such bid can reasonably be obtained by the Bid Solicitation Agent, that one bid
shall be used. The Company shall provide prompt written notice to the Bid Solicitation Agent
identifying the three independent nationally recognized securities dealers selected by the Company.
If the Bid Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 Principal
Amount of Securities from an independent nationally recognized securities dealer selected by the
Company and identified in writing to the Bid Solicitation Agent or, in the reasonable judgment of
the Board of Directors, the bid quotations are not indicative of the secondary market value of the
Securities, then the Trading Price per $1,000 Principal Amount of Securities shall be determined by
the Board of Directors based on a good faith estimate of the fair value of the Securities. The
Trustee shall initially act as Bid Solicitation Agent and shall be entitled to all of the rights of
the Trustee set forth in this Indenture in connection with any determination of the average Trading
Price of the Securities as provided herein, and any such determination shall be conclusive absent
manifest error.

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     Section 3.03. Bid Solicitation Agent’s Responsibilities in Respect of Contingent Interest.
The Bid Solicitation Agent’s sole responsibility pursuant to Section 3.02 shall be to obtain the
Trading Price of the Securities for each of the 10 Trading Days immediately preceding the first day
of the applicable semiannual interest period and to provide such information to the Company. The
Company shall determine whether Holders are entitled to receive Contingent Interest, and if so,
provide written notice to the Bid Solicitation Agent and issue a press release as required by
Section 3.05. Notwithstanding any term contained in this Indenture or any other document to the
contrary, the Bid Solicitation Agent shall have no responsibilities, duties or obligations for or
with respect to (i) determining whether the Company must pay Contingent Interest or (ii)
determining the amount of Contingent Interest, if any, payable by the Company.

     Section 3.04. Payment of Contingent Interest. Subject to Section 3.01 hereof, Contingent
Interest for any semiannual interest payment period shall be paid by the Company on the applicable
Interest Payment Date to the Holder in whose name any Security is registered on the Security
Register at the close of business on the corresponding Record Date. Contingent Interest on the
Securities shall be computed (i) for any full semiannual period for which Contingent Interest is
calculated, on the basis of a 360-day year of twelve 30-day months, (ii) for any period shorter
than a full semiannual period for which Contingent Interest is calculated, on the basis of a 30-day
month and (iii) for such periods of less than a month, the actual number of days elapsed over a
30-day month. Contingent Interest due under this Article 3 shall be treated for all purposes of
this Indenture like any other interest accruing on the Securities.

     Section 3.05. Contingent Interest Notification. By the third Business Day of a semiannual
interest payment period for which Contingent Interest specified in Section 3.02(a) will be paid,
the Company will disseminate a press release through Reuters Economic Services and Bloomberg
Business News stating that Contingent Interest will be paid on the Securities and identifying such
semiannual interest payment period as the semiannual interest payment period for which such
Contingent Interest will be paid.

     Section 3.06. Defaulted Amounts. Any Defaulted Amounts shall forthwith cease to be payable
to the Holder on the relevant payment date by virtue of its having been such Holder but shall
accrue interest per annum at the interest rate borne by the Securities, subject to the
enforceability thereof under applicable law, from, and including, such relevant payment date until,
but excluding, such Defaulted Amounts shall have been paid by the Company, at its election in each
case, as provided in subsection (a) or (b) below:

     (a) The Company may elect to make payment of any Defaulted Amounts to the Persons in whose
names the Securities are registered at the close of business on a special record date for the
payment of such Defaulted Amounts, which shall be fixed in the following manner. The Company shall
notify the Trustee in writing of the amount of the Defaulted Amounts proposed to be paid on each
Security and the date of the proposed payment (which shall be not less than 25 days after the
receipt by the Trustee of such notice, unless the Trustee shall consent to an earlier date), and at
the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate
amount to be paid in respect of such Defaulted Amounts or shall make arrangements satisfactory to
the Trustee for such deposit on or prior to the date of the

32

 

proposed payment, such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Amounts as in this subsection provided. Thereupon the Company shall fix
a special record date for the payment of such Defaulted Amounts which shall be 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 the receipt by the Trustee of the notice of the proposed payment. The Company shall promptly
notify the Trustee of such special record date and the Trustee, in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted Amounts and the special
record date therefor to be mailed, first-class postage prepaid, to each Holder at its address as it
appears in the Security Register, not less than 10 days prior to such special record date. Notice
of the proposed payment of such Defaulted Amounts and the special record date therefor having been
so mailed, such Defaulted Amounts shall be paid to the Persons in whose names the Securities are
registered at the close of business on such special record date and shall no longer be payable
pursuant to the following subsection (b) of this Section 3.06.

     (b) The Company may make payment of any Defaulted Amounts in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on
which the Securities may be listed or designated for issuance, and upon such notice as may be
required by such exchange or automated quotation system, if, after notice given by the Company to
the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

ARTICLE 4

Subordination

     Section 4.01. Agreement of Subordination. The Company covenants and agrees, and each Holder
of Securities issued hereunder by its acceptance thereof likewise covenants and agrees, that all
Securities shall be issued subject to the provisions of this Article 4; and each Person holding
any Security, whether upon original issue or upon transfer, assignment or exchange thereof, accepts
and agrees to be bound by such provisions.

     The payment of the principal of and interest on all Securities (including, but not limited to,
the Redemption Price and the Fundamental Change Repurchase Price with respect to the Securities
subject to redemption or repurchase in accordance with Articles 6 and 7, respectively, and the
payment of any cash upon conversion in accordance with Article 8) issued hereunder shall, to the
extent and in the manner hereinafter set forth, be subordinated and subject in right of payment to
the prior payment in full in cash or other payment satisfactory to the holders of all Senior Debt,
whether outstanding at the date of this Indenture or thereafter incurred.

     No provision of this Article 4 shall prevent the occurrence of any Default or Event of
Default hereunder.

     Section 4.02. Payments to Holders. No payment shall be made with respect to the principal of
or interest on the Securities (including, but not limited to, the Redemption Price and

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the Fundamental Change Repurchase Price with respect to the Securities subject to redemption
or purchase in accordance with Articles 6 and 7, respectively, and any payment of cash upon
conversion in accordance with Article 8), except payments and distributions made by the Trustee as
permitted by the first or second paragraph of Section 4.05, if:

     (a) the Company defaults in its obligation to pay principal, premium, interest or other
amounts on any Senior Debt, including a default under any redemption or repurchase
obligation, and the default continues beyond any grace period that the Company has to make
these payments (a “Payment Default”); or

     (b) any other default (a “Non-Payment Default”) occurs and is continuing on any
Designated Senior Debt and (i) the default permits holders of the Designated Senior Debt (or
any Representative) to accelerate its maturity and (ii) a Responsible Officer of the Trustee
receives a notice (a “Payment Blockage Notice”) of the default from the Company, the holder
of such Designated Senior Debt or a Representative of such Designated Senior Debt.

     Notwithstanding the foregoing, following the delivery of a Payment Blockage Notice, no new
Payment Blockage Notice may be delivered and no new period of payment blockage with respect to the
Securities may begin until both (i) 365 consecutive days have elapsed since the effectiveness of
the immediately prior Payment Blockage Notice and (ii) all scheduled payments of principal of and
interest on the Securities that have come due have been paid in full in cash. No Non-Payment
Default that existed on the date of delivery of any Payment Blockage Notice with respect to the
Designated Senior Debt whose holders delivered the Payment Blockage Notice may be made the basis of
a subsequent Payment Blockage Notice by the holders of such Designated Senior Debt, whether or not
within a period of 365 consecutive days.

     The Company may and shall resume payments on and distributions in respect of the Securities
upon:

     (1) in the case of a Payment Default, the date upon which the default is cured or
waived or ceases to exist, or

     (2) in the case of a Non-Payment Default with respect to Designated Senior Debt, the
earlier of (x) the date on which such Non-Payment Default is cured or waived or ceases to
exist, in each case, as and to the extent permitted under the documentation for the
Designated Senior Debt, and (y) 179 days after the date on which the applicable Payment
Blockage Notice is received, in each case, unless the maturity of the Designated Senior Debt
has been accelerated or this Article 4 otherwise prohibits the payment or distribution at
the time of such payment or distribution.

     Upon any acceleration of the Principal due on the Securities as a result of an Event of
Default or payment by the Company or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any dissolution, winding-up,
liquidation or reorganization of the Company, whether voluntary or involuntary, marshaling of

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assets, assignment for the benefit of creditors, or in bankruptcy, insolvency, receivership or
other similar proceedings, all principal, premium, if any, interest and other amounts due on all
Senior Debt shall be paid in full in cash, or other payments satisfactory to the holders of Senior
Debt before any payment of cash, property or securities is made on account of the principal of or
interest on, or with respect to the conversion of, the Securities (except, to the extent required
by applicable law, payments made pursuant to Article 13 from monies deposited with the Trustee
pursuant thereto prior to commencement of proceedings for such dissolution, winding-up, liquidation
or reorganization of the Company, marshaling of assets, assignment for the benefit of creditors, or
in bankruptcy, insolvency, receivership or other similar proceedings); and upon any such
dissolution, winding-up, liquidation or reorganization of the Company, marshaling of assets,
assignment for the benefit of creditors or bankruptcy, insolvency, receivership or other similar
proceedings, any payment by the Company, or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders of the Securities or the
Trustee would be entitled, except for the provision of this Article 4, shall (except as aforesaid)
be paid by the Company or by any receiver, trustee in bankruptcy, liquidating trustee, agent or
other Person making such payment or distribution, or by the Holders of the Securities or by the
Trustee under this Indenture if received by them or it, directly to the holders of Senior Debt (pro
rata to such holders on the basis of the respective amounts of Senior Debt held by such holders, or
as otherwise required by law or a court order) or their representative or representatives, or to
the trustee or trustees under any indenture pursuant to which any instruments evidencing any Senior
Debt may have been issued, as their respective interests may appear, to the extent necessary to pay
all Senior Debt in full in cash, or other payment satisfactory to the holders of Senior Debt, after
giving effect to any concurrent payment or distribution to or for the holders of Senior Debt,
before any payment or distribution is made to the Holders of the Securities or to the Trustee.

     For purposes of this Article 4, the words, “cash, property or securities” shall not be deemed
to include shares of Capital Stock of the Company as reorganized or readjusted, or securities of
the Company or any other corporation provided for by a plan of reorganization or readjustment, the
payment of which is subordinated at least to the extent provided in this Article 4 with respect to
the Securities to the payment of all Senior Debt which may at the time be outstanding; provided
that (i) the Senior Debt is assumed by the new corporation, if any, resulting from any
reorganization or readjustment, and (ii) the rights of the holders of Senior Debt (other than
leases which are not assumed by the Company or the new corporation, as the case may be) are not,
without the consent of such holders, altered by such reorganization or readjustment. The
consolidation of the Company with, or the merger of the Company into, another corporation or the
liquidation or dissolution of the Company following the sale, conveyance, transfer or lease of all
or substantially all its property to another corporation upon the terms and conditions provided for
in Article 10 shall not be deemed to be a dissolution, winding-up, liquidation, reorganization,
marshaling of assets, assignment for the benefit of creditors or bankruptcy, insolvency,
receivership or other similar proceeding for the purposes of this Section 4.02 if such other
corporation shall, as a part of such consolidation, merger, sale, conveyance, transfer or lease,
comply with the conditions stated in Article 10.

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     In the event that, notwithstanding the foregoing provisions, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or securities (including,
without limitation, by way of setoff or otherwise), prohibited by the foregoing, shall be received
by the Trustee or the Holders of the Securities before all Senior Debt is paid in full, in cash or
other payment satisfactory to the holders of Senior Debt, or provision is made for such payment
thereof in accordance with its terms in cash or other payment satisfactory to the holders of Senior
Debt, such payment or distribution shall be held in trust for the benefit of and shall be paid over
or delivered to the holders of Senior Debt or their Representative or Representatives, as their
respective interests may appear, as calculated by the Company, for application to the payment of
all Senior Debt remaining unpaid to the extent necessary to pay all Senior Debt in full, in cash or
other payment satisfactory to the holders of Senior Debt or their Representative, after giving
effect to any concurrent payment or distribution to or for the holders of such Senior Debt.

     Nothing in this Section 4.02 shall apply to claims of, or payments to, the Trustee under or
pursuant to Sections 9.06 and 11.07. This Section 4.02 shall be subject to the further
provisions of Section 4.05.

     Section 4.03. Subrogation of Securities. Subject to the payment in full, in cash or other
payment satisfactory to the holders of Senior Debt, of all Senior Debt, the rights of the Holders
of the Securities shall be subrogated to the extent of the payments or distributions made to the
holders of such Senior Debt pursuant to the provisions of this Article 4 (equally and ratably with
the holders of all indebtedness of the Company which by its express terms is subordinated to other
indebtedness of the Company to substantially the same extent as the Securities are subordinated and
is entitled to like rights of subrogation) to the rights of the holders of Senior Debt to receive
payments or distributions of cash, property or securities of the Company applicable to the Senior
Debt until the principal of and interest on the Securities shall be paid in full in cash or other
payment satisfactory to the Holders of Securities; and, for the purposes of such subrogation, no
payments or distributions to the holders of the Senior Debt 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 4, and no payment over pursuant to the provisions of this Article 4, to or for the
benefit of the holders of Senior Debt by Holders of the Securities or the Trustee, shall, as
between the Company, its creditors other than holders of Senior Debt, and the Holders of the
Securities, be deemed to be a payment by the Company to or on account of the Senior Debt; and no
payment or distribution of cash, property or securities to or for the benefit of the Holders of the
Securities pursuant to the subrogation provisions of this Article 4, which would otherwise have
been paid to the holders of Senior Debt shall be deemed to be a payment by the Company to or for
the account of the Securities. It is understood that the provisions of this Article 4 are and are
intended solely for the purposes of defining the relative rights of the Holders of the Securities,
on the one hand, and the holders of the Senior Debt, on the other hand.

     Nothing contained in this Article 4 or elsewhere in this Indenture or in the Securities is
intended to or shall impair, as among the Company, its creditors other than the holders of Senior
Debt, and the Holders of the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of and interest on the

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Securities as and when the same shall become due and payable in accordance with their terms
and this Indenture, or to pay or deliver, as the case may be, the consideration due upon conversion
of such Securities in accordance with this Indenture, or is intended to or shall affect the
relative rights of the Holders of the Securities and creditors of the Company other than the
holders of the Senior Debt.

     Upon any payment or distribution of assets of the Company referred to in this Article 4, the
Trustee, subject to the provisions of Section 11.01, and the Holders of the Securities shall be
entitled to conclusively rely upon any order or decree made by any court of competent jurisdiction
in which such bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings are
pending, or a certificate of the receiver, trustee in bankruptcy, liquidating trustee, agent or
other person making such payment or distribution, delivered to the Trustee or to the Holders of the
Securities, for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Debt and other indebtedness of the Company, the amount
thereof or payable thereon and all other facts pertinent thereto or to this Article 4.

     Section 4.04. Authorization to Effect Subordination. Each Holder of a Security by the
Holder’s acceptance thereof authorizes and directs the Trustee on the Holder’s behalf to take such
action as may be necessary or appropriate to effectuate the subordination as provided in this
Article 4 and appoints the Trustee to act as the Holder’s attorney-in-fact for any and all such
purposes.

     Section 4.05. Notice to Trustee. The Company shall give prompt written notice in the form of
an Officers’ Certificate to a Responsible Officer of the Trustee and to any Paying Agent of any
fact known to the Company that would prohibit the making of any payment of monies to or by the
Trustee or any Paying Agent in respect of the Securities pursuant to the provisions of this
Article 4. Notwithstanding the provisions of this Article 4 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 of monies to or by the Trustee in respect of the
Securities pursuant to the provisions of this Article 4, unless and until a Responsible Officer of
the Trustee shall have received written notice thereof at the applicable Corporate Trust Office
from the Company (in the form of an Officers’ Certificate) or a Representative or a Holder or
Holders of Senior Debt or from any trustee thereof; and before the receipt of any such written
notice, the Trustee, subject to the provisions of Section 11.01, shall be entitled in all respects
to assume that no such facts exist; provided that, if on a date not less than two Business Days
prior to the date upon which by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of or interest on any Security) the
Trustee shall not have received, with respect to such monies, the notice provided for in this
Section 4.05, then, anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority to receive such monies and to apply the same to the purpose for which
they were received, and shall not be affected by any notice to the contrary which may be received
by it on or after such prior date. Notwithstanding anything in this Article 4 to the contrary,
nothing shall prevent any payment by the Trustee to the Holders of monies deposited with it
pursuant to Article 13, and any such payment shall not be subject to the provisions of this
Article 4.

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     The Trustee, subject to the provisions of Section 11.01, shall be entitled to rely on the
delivery to it of a written notice by a Representative or a person representing himself to be a
holder of Senior Debt (or a trustee on behalf of such holder) to establish that such notice has
been given by a Representative or a holder of Senior Debt. 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 Debt to participate in any payment or distribution pursuant to this Article 4, the
Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee
as to the amount of Senior Debt 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 4, 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 4.06. Trustee’s Relation to Senior Debt. The Trustee in its individual capacity
shall be entitled to all the rights set forth in this Article 4 in respect of any Senior Debt at
any time held by it, to the same extent as any other holder of Senior Debt, and nothing in Section
11.13 or elsewhere in this Indenture shall deprive the Trustee of any of its rights as such holder.

     With respect to the holders of Senior Debt, the Trustee undertakes to perform or to observe
only such of its covenants and obligations as are specifically set forth in this Article 4, and no
implied covenants or obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt and, subject to the provisions of Section 11.01, the Trustee shall not be
liable to any holder of Senior Debt if it shall pay over or deliver to Holders of Securities, the
Company or any other Person money or assets to which any holder of Senior Debt shall be entitled by
virtue of this Article 4 or otherwise, unless payment of such amounts is prohibited under this
Article 4 and the Trustee shall have received notice provided for in Section 4.05.

     Section 4.07. No Impairment of Subordination. No right of any present or future holder of
any Senior Debt 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 which any
such holder may have or otherwise be charged with.

     Section 4.08. No Impairment of Conversion Right. Nothing contained in this Article 4 or
elsewhere in this Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than holders of Senior Debt and the Holders, the right, which is
absolute and unconditional, of the Holder of any Security to convert such Security in accordance
with Article 8.

     Section 4.09. Article Applicable to Paying Agents. If 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 4 shall (unless the context otherwise requires) be construed

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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 4 in addition to or in place of
the Trustee; provided, however, that the first paragraph of Section 4.05 shall not apply to the
Company or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.

     Section 4.10. Senior Debt Entitled to Rely. The holders of Senior Debt (including, without
limitation, Designated Senior Debt) shall have the right to rely upon this Article 4, and no
amendment or modification of the provisions contained herein shall diminish the rights of such
holders unless such holders shall have agreed in writing thereto.

ARTICLE 5

Covenants

     Section 5.01. Payments and Deliveries. The Company shall duly and punctually make all
payments and deliveries in respect of the Securities in accordance with the terms of the Securities
and this Indenture.

     Any payments or deliveries made or due pursuant to this Indenture shall be considered paid or
delivered on the applicable date due if by 10:00 a.m., New York City time, on such date the Paying
Agent holds, in accordance with this Indenture, cash (and Common Shares deliverable following
conversion, if applicable) or consideration sufficient to satisfy all such amounts then due.
Payment of the principal of and interest on the Securities shall be in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and
private debts.

     Section 5.02. Maintenance of Office or Agency. The Company shall maintain an office or
agency in the United States where Securities may be presented or surrendered for payment, where
Securities may be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture may be served, which
shall initially be the Corporate Trust Office. The Company shall 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, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the United
States 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.

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     Section 5.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 11.10, a Trustee, so that there shall at all times be a Trustee hereunder.

     Section 5.04. Money and Common Shares for Payments and Deliveries on Securities to be Held in
Trust. If the Company (or any Subsidiary of the Company) shall at any time act as Paying Agent,
then such Paying Agent shall, on or before each due date of any payment in respect of any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to make the payment 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, it will, prior to each due date of
any payment in respect of any Securities, deposit with a Paying Agent a sum sufficient to pay such
amount, such sum to be held as provided by the Trust Indenture Act, 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 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 5.04, that such Paying Agent will (i) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (ii) during the continuance of any
Default by the Company (or any other obligor upon the Securities) in the making of any payment in
respect of the Securities, upon the written request of the Trustee, forthwith pay to the Trustee
all sums held in trust by such Paying Agent as such.

     The Company may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by
the Trustee upon the same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the making of payments in respect of any Security and remaining unclaimed for two years
after such payment has become due shall be paid to the Company on Company Request, or (if then held
by the Company) shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, shall at the expense of the
Company cause to be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New York, notice that such
money remains unclaimed and that, after a

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date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining shall be repaid to the Company. In
the absence of a written request from the Company to return funds remaining unclaimed for two years
after such payment has become due to the Company, the Trustee shall from time to time deliver all
unclaimed payments to or as directed by applicable escheat authorities, as determined by the
Trustee in its sole discretion, in accordance with the customary practices and procedures of the
Trustee. Any such unclaimed funds held by the Trustee pursuant to this Section 5.04 shall be held
uninvested and without any liability for interest.

     The provisions of this Section 5.04 shall apply, mutatis mutandis, to any Common Shares
deliverable upon conversion of the Securities; provided that, for such purposes, references in this
Section 5.04 to the “Paying Agent” shall instead be deemed to be references to the “Conversion
Agent.”

     Section 5.05. Statement by Officers as to Default. The Company will deliver to the Trustee,
within 120 days after the end of each fiscal year of the Company ending after the date hereof, an
Officers’ Certificate, stating whether or not to the knowledge of the signers thereof any Default
occurred during the previous year. In addition, the Company shall deliver to the Trustee, within
30 days after any officer of the Company has knowledge of the occurrence thereof, an Officers’
Certificate providing notice of any events that would constitute a Default, the status of such
events and what action the Company is taking or proposes to take in respect thereof.

     Section 5.06. Existence. Subject to Article 10, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its existence, rights (charter
and statutory) and franchises; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and that the loss thereof is
not disadvantageous in any material respect to the Holders.

     Section 5.07. Book-Entry System. If the Securities cease to trade in the Depositary’s
book-entry settlement system, the Company covenants and agrees that it shall use reasonable efforts
to make such other book-entry arrangements that it determines are reasonable for the Securities.

     Section 5.08. Additional Interest. If at any time Additional Interest becomes payable by the
Company pursuant to Section 9.03, the Company shall promptly deliver to the Trustee a certificate
to that effect and stating (a) the amount of such Additional Interest that is payable and (b) the
date on which such Additional Interest is payable. Additional Interest payable in accordance with
Section 9.03 shall be payable by the Company in arrears on each Interest Payment Date to the
Holder in whose name any Security is registered on the Security Register at the close of business
on the corresponding Record Date following accrual in the same manner as Regular Interest on the
Securities. Additional Interest on the Securities shall be computed (i) for any full semiannual
period for which Additional Interest is calculated, on the basis of a 360-day year of twelve 30-day
months, (ii) for any period shorter than a full semiannual period for which

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Additional Interest is calculated, on the basis of a 30-day month and (iii) for such periods
of less than a month, the actual number of days elapsed over a 30-day month. Unless and until a
Responsible Officer of the Trustee receives such a certificate, the Trustee may assume without
inquiry that no Additional Interest is payable. If the Company has paid Additional Interest
directly to the Persons entitled to such Additional Interest, the Company shall deliver to the
Trustee a certificate setting forth the particulars of such payment.

     Section 5.09. Commission Filings And Reports. The Company shall file with the Trustee within
30 days after the same are required to be filed with the Commission (giving effect to any grace
period provided by Rule 12b-25 under the Exchange Act) any documents or reports that the Company is
required to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act.
Documents filed by the Company with the SEC via the Commission’s EDGAR system shall be deemed to be
filed with the Trustee as of the time such documents are filed via the Commissions EDGAR system for
purposes of this Section 5.09. Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

     Section 5.10. Stay, Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law which
would prohibit or forgive the Company from paying all or any portion of the principal of or
interest on the Securities as contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of this Indenture; and the Company
(to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, 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 5.11. Further Instruments and Acts. Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Indenture.

     Section 5.12. Tax Treatment of the Securities. The Company agrees, and by acceptance of a
beneficial ownership interest in the Securities each beneficial owner of Securities will be deemed
to have agreed, for United States federal income tax purposes, (a) to treat the Securities as
indebtedness of the Company subject to United States Treasury regulations section 1.1275-4 (the
“Contingent Debt Regulations”) and, for purposes of the Contingent Debt Regulations, to treat the
Fair Market Value of any Common Shares received by a Holder upon any conversion of the Securities
as a contingent payment, (b) to be bound by the Company’s determination of the “comparable yield”
and “projected payment schedule,” within the meaning of the Contingent Debt Regulations, with
respect to the Securities and (c) to use such “comparable yield” and “projected payment schedule”
in determining interest accruals with respect to the Securities and

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adjustments thereto. A Holder of Securities may obtain the issue date, yield to maturity,
comparable yield and projected payment schedule by submitting a written request for such
information to: Convergys Corporation, 201 East Fourth Street, Cincinnati, OH 45202, Attention:
Corporate Secretary, with a copy to Convergys Corporation, 201 East Fourth Street, Cincinnati, OH
45202, Attention: Treasurer.

     Section 5.13. Certain Distributions and Dividends. The Company shall not make:

     (a) any distribution of Distributed Property if “FMV” (as defined in the first paragraph of
Section 8.03(c)) would be equal to or greater than “SP0” (as defined in the first
paragraph of Section 8.03(c)); or

     (b) any dividend or distribution described in Section 8.03(d) if “C” (as defined in Section
8.03(d)) would be equal to or greater than “SP0” (as defined in Section 8.03(d)).

ARTICLE 6

Redemption

     Section 6.01. Right to Redeem; Notices to Trustee. (a) The Securities may be redeemed, in
whole or in part, at the option of the Company:

     (i) on or prior to September 15, 2010, if a Tax Triggering Event has occurred; and

     (ii) on or after September 15, 2019, if the Last Reported Sale Price of the Common
Shares has been at least 150% of the applicable Conversion Price for at least 20 Trading
Days (whether or not consecutive) during the 30 consecutive Trading Day period immediately
preceding the date on which the Company provides the relevant Redemption Notice.

     (b) The redemption price at which the Securities are redeemable (the “Redemption Price”) shall
be payable in cash and shall be equal to:

     (i) in the case of a redemption pursuant to Section 6.01(a)(i), (A) 101.5% of the
Principal Amount of the Securities being redeemed, plus (B) accrued and unpaid interest to,
but excluding, the Redemption Date (unless the Redemption Date falls after a Record Date but
on or prior to the immediately succeeding Interest Payment Date, in which case the Company
shall instead pay the full amount of accrued and unpaid interest to the Holder of record as
of the close of business on such Record Date and the Redemption Price shall not include any
accrued and unpaid interest), plus (C) if the Current Conversion Value as of the Redemption
Date of the Securities being redeemed exceeds their Initial Conversion Value, 95% of the
amount determined by subtracting the Initial Conversion Value of such Securities from the
Current Conversion Value as of the Redemption Date; or

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     (ii) in the case of a redemption pursuant to Section 6.01(a)(ii), 100% of the
Principal Amount of Securities being redeemed, plus accrued and unpaid interest to, but
excluding, the Redemption Date (unless the Redemption Date falls after a Record Date but on
or prior to the immediately succeeding Interest Payment Date, in which case the Company
shall instead pay the full amount of accrued and unpaid interest to the Holder of record as
of the close of business on such Record Date and the Redemption Price shall be equal to 100%
of the Principal Amount of the Securities being redeemed).

     (c) The Company may not redeem any Securities unless all accrued and unpaid interest thereon
has been or is simultaneously paid for all semiannual periods or portions thereof terminating prior
to the Redemption Date.

     (d) No Securities may be redeemed if the Principal Amount of the Securities has been
accelerated, and such acceleration has not been rescinded, on or prior to the Redemption Date
(except in the case of an acceleration resulting from a Default by the Company in the payment of
the Redemption Price with respect to such Securities).

     (e) Except as provided in this Section 6.01, the Securities shall not be redeemable by the
Company.

     Section 6.02. Selection of Securities to Be Redeemed. If fewer than all the Securities are
to be redeemed, the Trustee shall select the Securities to be redeemed by lot, on a pro rata basis
or by another method the Trustee considers fair and appropriate (so long as such method is not
prohibited by the rules of The New York Stock Exchange or any stock exchange on which the
Securities are then listed, if applicable). The Trustee shall make the selection within 7 days
from its receipt of the notice from the Company delivered pursuant to Section 6.03 from
Outstanding Securities not previously called for redemption.

     Securities and portions of them the Trustee selects shall be in Principal Amounts of $1,000 or
integral multiples of $1,000. Provisions of this Indenture that apply to Securities called for
redemption in whole also apply to Securities called for redemption in part. The Trustee shall
notify the Company promptly of the Securities or portions of Securities to be redeemed.

     If any Security selected for partial redemption is converted in part before termination of the
conversion 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 during a selection of Securities to be redeemed may be treated
by the Trustee as Outstanding for the purpose of such selection.

     Section 6.03. Redemption Notice. (a) In case the Company exercises its right to redeem the
Securities, in whole or in part, in accordance with, and subject to the conditions set forth in,
Section 6.01(a), it shall fix a Business Day as the date for redemption (each, a “Redemption
Date”). At least 40 days but not more than 60 days before a Redemption Date, the Company shall
mail a notice of redemption (a “Redemption Notice”) by first-class mail, postage prepaid, to the
Trustee, the Paying Agent and each Holder of Securities to be redeemed.

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     (b) The Redemption Notice shall specify the Securities to be redeemed and shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) the then-current Conversion Rate;

     (iv) the name and address of the Paying Agent and Conversion Agent;

     (v) subject to Section 8.02(d), that Securities called for redemption may be converted
at any time before the close of business on the Business Day immediately preceding the
Redemption Date (at which time the right to convert such Securities will expire unless
another condition for conversion shall be satisfied under this Indenture);

     (vi) that Holders who want to convert Securities must satisfy the requirements set
forth therein and in this Indenture, including, without limitation, compliance with Section
8.02(d);

     (vii) that Securities called for redemption must be surrendered to the Paying Agent for
cancellation to collect the Redemption Price;

     (viii) if fewer than all the Outstanding Securities are to be redeemed, the certificate
numbers (if such Securities are Physical Securities) and Principal Amounts of the particular
Securities to be redeemed;

     (ix) that, unless the Company defaults in making payment of such Redemption Price,
interest will cease to accrue on and after the Redemption Date; and

     (x) the CUSIP number of the Securities.

At the Company’s written request delivered at least 30 days prior to the date such notice is to be
given (unless a shorter time period shall be acceptable to the Trustee), the Trustee shall give the
Redemption Notice to each Holder of Securities to be redeemed in the Company’s name and at the
Company’s expense.

     Section 6.04. Effect of Redemption Notice. Once a Redemption Notice is given, Securities
called for redemption become due and payable on the Redemption Date and at the Redemption Price
(except for Securities that are converted in accordance with the terms of this Indenture). Upon
surrender to the Paying Agent, such Securities shall be paid at the Redemption Price.

     Section 6.05. Deposit of Redemption Price. Prior to 10:00 a.m. (New York City time) on a
Redemption Date, the Company shall deposit with the Paying Agent (or if the Company or a Subsidiary
or an Affiliate of either of them is the Paying Agent, shall segregate and hold in trust) money
sufficient to pay the Redemption Price of all Securities to be redeemed on that date other

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than Securities or portions of Securities called for redemption that on or prior thereto have
been delivered by the Company to the Trustee for cancellation or have been converted. The Paying
Agent shall as promptly as practicable return to the Company any money not required for that
purpose because of conversion of Securities pursuant to Article 8. If such money is then held by
the Company in trust and is not required for such purpose it shall be discharged from such trust.

     Section 6.06. Securities Redeemed in Part. Subject to Section 2.05(a), upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate and
deliver to the Holder a new Security in an authorized denomination equal in Principal Amount to the
unredeemed portion of the Security surrendered.

ARTICLE 7

Fundamental Changes and Repurchases Thereupon

     Section 7.01. Repurchase at Option of Holders Upon a Fundamental Change. (a) If a
Fundamental Change occurs at any time prior to the Stated Maturity, then each Holder shall have the
right, at such Holder’s option, to require the Company to repurchase all of such Holder’s
Securities, or any portion thereof with a Principal Amount that is equal to $1,000 or an integral
multiple of $1,000, on a date (the “Fundamental Change Repurchase Date”) specified by the Company
that is not less than 20 calendar days or more than 35 calendar days following the date of the
Fundamental Change Company Notice at a repurchase price equal to 100% of the Principal Amount
thereof, plus accrued and unpaid interest thereon to, but excluding, the Fundamental Change
Repurchase Date (the “Fundamental Change Repurchase Price”) (unless the Fundamental Change
Repurchase Date is after a Record Date and on or prior to the Interest Payment Date to which such
Record Date relates, in which case the Company shall instead pay the full amount of accrued and
unpaid interest to Holders of record on such Record Date and the Fundamental Change Repurchase
Price shall be equal to 100% of the Principal Amount of Securities to be repurchased pursuant to
this Section 7.01), payable in cash unless the Company elects otherwise as provided in Section
7.01(b).

     (b) Instead of paying the Fundamental Change Repurchase Price in cash, the Company may elect
(which election shall be irrevocable) to pay the Fundamental Change Repurchase Price in Common
Shares (so long as such Common Shares are Publicly Traded Securities), Acquiror Securities, or a
combination of cash and such Common Shares or such Acquiror Securities, as the case may be, by so
stating in the Fundamental Change Company Notice; provided that the Company will pay cash for
fractional interests in Common Shares or Acquiror Securities, as the case may be. In such event,
the number of Common Shares or Acquiror Securities that a Holder will receive will equal the
quotient obtained by dividing (i) the portion of the Fundamental Change Repurchase Price to be paid
in Common Shares or Acquiror Securities, as applicable, by (ii) 95% of the average of the Last
Reported Sale Prices of the Common Shares or Acquiror Securities, as the case may be, for the five
Trading Day period immediately preceding, and including, the third Trading Day prior to the
Fundamental Change Repurchase Date. However, the Company may not pay the Fundamental Change
Repurchase Price in Common Shares or Acquiror Securities if an Event of Default has occurred or is
continuing. For purposes of

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determining the existence of potential fractional interests, all Securities subject to
repurchase by the Company held by a Holder shall be considered together. Each Holder whose
Securities are repurchased pursuant to this Section 7.01(b) shall receive the same percentages of
cash, Common Shares and Acquiror Securities in payment of the Fundamental Change Repurchase Price
for such Securities, except with regard to the payment of cash in lieu of fractional Common Shares
or Acquiror Securities. The Company may not change its election with respect to the consideration
(or components or percentages of components thereof) to be paid once the Company has given its
Fundamental Change Company Notice to Holders except in the event of a failure to satisfy, prior to
the close of business on the Business Day prior to the Fundamental Change Repurchase Date, any
condition to the payment of the Fundamental Change Repurchase Price, in whole or in part, in Common
Shares or Acquiror Securities.

     (c) In no event will the Company issue Common Shares in payment of the Fundamental Change
Repurchase Price if such issuance would result in the issuance of more than 19.9% of the Common
Shares outstanding on the date the Securities were issued. In the event that payment of the
Fundamental Change Repurchase Price by delivering Common Shares would result in the issuance of
Common Shares in excess of such limitation, the Company will, at its option, either obtain
shareholder approval of such issuances or deliver cash in lieu of any Common Shares otherwise
deliverable in respect of the Fundamental Change Repurchase Price in excess of such limitation.

     Repurchases of Securities under this Section 7.01 shall be made, at the option of the Holder
thereof, upon:

     (i) delivery to the Paying Agent by a Holder of a duly completed notice (the
“Fundamental Change Repurchase Notice”) in the form set forth on the reverse of the
Securities on or prior to the Business Day immediately preceding the Fundamental Change
Repurchase Date; and

     (ii) delivery or book-entry transfer of the Securities to the Paying Agent at any time
after delivery of the Fundamental Change Repurchase Notice (together with all necessary
endorsements) at the Corporate Trust Office of the Trustee (or office of another Paying
Agent appointed by the Company), such delivery being a condition to receipt by the Holder of
the Fundamental Change Repurchase Price therefor.

     The Fundamental Change Repurchase Notice shall state:

     (A) if certificated, the certificate numbers of the Securities to be delivered
for repurchase;

     (B) the portion of the Principal Amount of Securities to be repurchased, which
must be $1,000 or an integral multiple thereof; and

     (C) that the Securities are to be repurchased by the Company pursuant to the
applicable provisions of the Securities and this Indenture;

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provided, however, that if the Securities are Global Securities, the Fundamental Change Repurchase
Notice must comply with appropriate Depositary procedures.

     Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 7.01 shall have the right to
withdraw such Fundamental Change Repurchase Notice at any time prior to the close of business on
the Business Day immediately preceding the Fundamental Change Repurchase Date by delivery of a
written notice of withdrawal to the Trustee (or other Paying Agent appointed by the Company) in
accordance with Section 7.03.

     The Trustee (or other Paying Agent appointed by the Company) shall promptly notify the Company
of the receipt by it of any Fundamental Change Repurchase Notice or written notice of withdrawal
thereof.

     (d) On or before the 20th Business Day after the occurrence of a Fundamental Change, the
Company shall provide to all Holders of the Securities, the Trustee and the Paying Agent a notice
(the “Fundamental Change Company Notice”) of the occurrence of such Fundamental Change and of the
repurchase right at the option of the Holders arising as a result thereof. Such mailing shall be
by first class mail. Simultaneously with providing such Fundamental Change Company Notice, the
Company shall publish a notice containing the information included therein once in a newspaper of
general circulation in The City of New York or publish such information on the Company’s website or
through such other public medium as the Company may use at such time.

     Each Fundamental Change Company Notice shall specify:

     (i) the events causing the Fundamental Change;

     (ii) the date of the Fundamental Change;

     (iii) the last date on which a Holder may exercise the repurchase right;

     (iv) the Fundamental Change Repurchase Price;

     (v) the Fundamental Change Repurchase Date;

     (vi) the name and address of the Paying Agent and the Conversion Agent, if applicable;

     (vii) if applicable, the applicable Conversion Rate and any adjustments to the
applicable Conversion Rate;

     (viii) whether the Company will pay the Fundamental Change Repurchase Price in cash,
Common Shares, Acquiror Securities or a combination thereof, specifying the percentage of
each;

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     (ix) if applicable, that the Securities with respect to which a Fundamental Change
Repurchase Notice has been delivered by a Holder may be converted only if the Holder
withdraws the Fundamental Change Repurchase Notice in accordance with Section 7.03; and

     (x) the procedures that Holders must follow to require the Company to repurchase or
convert their Securities.

     No failure of the Company to give the foregoing notices and no defect therein shall limit the
Holders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Securities pursuant to this Section 7.01.

     (e) Notwithstanding the foregoing, no Securities may be repurchased by the Company at the
option of the Holders upon a Fundamental Change pursuant to this Section 7.01 if the Principal
Amount of the Securities has been accelerated, and such acceleration has not been rescinded, on or
prior to such date (except in the case of an acceleration resulting from a Default by the Company
in the payment of the Fundamental Change Repurchase Price with respect to such Securities). The
Paying Agent will promptly return to the respective Holders thereof any Physical Securities (i)
with respect to which a Fundamental Change Repurchase Notice has been withdrawn in compliance with
this Indenture or (ii) held by it during the acceleration of the Securities (except in the case of
an acceleration resulting from a Default by the Company in the payment of the Fundamental Change
Repurchase Price with respect to such Securities) and shall deem to be cancelled any instructions
for book-entry transfer of the Securities in compliance with the procedures of the Depositary, in
which case, upon such return or cancellation, as the case may be, the Fundamental Change Repurchase
Notice with respect thereto shall be deemed to have been withdrawn.

     (f) The Company shall, at least three Business Days prior to delivering the Fundamental Change
Company Notice, deliver an Officers’ Certificate to the Trustee specifying:

     (i) the manner of payment selected by the Company;

     (ii) the information required by the Fundamental Change Company Notice pursuant to
Section 7.01(d);

     (iii) if the Company elects to pay the Fundamental Change Repurchase Price, or a
specified percentage thereof, in Common Shares or Acquiror Securities, that the conditions
to such manner of payment set forth in this Section 7.01(f) have been or will be complied
with, and

     (iv) whether the Company desires the Trustee to give the Fundamental Change Company
Notice required by Section 7.01(d).

     The Company’s right to exercise its election to repurchase Securities through the delivery of
Common Shares or Acquiror Securities shall be conditioned upon:

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     (v) the Company’s giving a timely Fundamental Change Company Notice containing an
election to purchase all or a specified percentage of the Securities with Common Shares or
Acquiror Securities as provided herein; and

     (vi) the listing of such Common Shares or Acquiror Securities on any of The New York
Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market or any of their
respective successors.

     If the foregoing conditions are not satisfied prior to the close of business on the Business
Day immediately preceding the Fundamental Change Repurchase Date and the Company has elected to
repurchase the Securities through the issuance of Common Shares or the delivery of Acquiror
Securities, the Company shall pay the entire Fundamental Change Repurchase Price of the Securities
in cash.

     If the Company, in accordance with Section 7.01(b), irrevocably elects to issue or deliver,
as the case may be, Common Shares or Acquiror Securities or a combination of cash and such Common
Shares or such Acquiror Securities,

     (i) any such Common Shares or Acquiror Securities to be issued or delivered, as the
case may be, to Holders shall, on the Fundamental Change Repurchase Date and the date the
Company delivers the Fundamental Change Company Notice, be registered under the Securities
Act and the Exchange Act, if required;

     (ii) any necessary qualification or registration of such Common Shares or Acquiror
Securities under applicable state securities laws or the availability of an exemption from
such qualification and registration shall have been obtained or made and such Common Shares
and/or Acquiror Securities shall be so qualified or registered under applicable state
securities laws or exempt from such qualification or registration as of each of the
Fundamental Change Repurchase Date and the date the Company delivers the Fundamental Change
Company Notice;

     (iii) any such Common Shares or Acquiror Securities to be issued or delivered, as the
case may be, to Holders, shall have been duly authorized and, when issued and delivered
pursuant to the terms of this Indenture in payment of the Fundamental Change Repurchase
Price in respect of the Securities, will be validly issued, fully paid and non-assessable;
and

     (iv) the Trustee shall have received prior to the close of business on the Business Day
prior to the Fundamental Change Repurchase Date (1) an Officers’ Certificate stating that
the terms of the issuance of the Common Shares or Acquiror Securities are in conformity with
this Indenture and (2) an Officers’ Certificate, stating that the conditions to the issuance
of the Common Shares or Acquiror Securities have been satisfied.

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     Such Officers’ Certificate shall also set forth the Last Reported Sale Price of a Common Share
or Acquiror Security, as applicable, on each Trading Day during the five Trading Day period
immediately preceding, and including, the third Trading Day prior to the applicable Fundamental
Change Repurchase Date.

     Promptly after determination of the actual number of Common Shares or Acquiror Securities to
be issued upon repurchase of Securities, the Company shall be required to disseminate a press
release through Reuters Economic Services and Bloomberg Business News containing the information
required by the Fundamental Change Company Notice or shall publish the information on the Company’s
website or through such other public medium as the Company may use at that time.

     All Common Shares and Acquiror Securities delivered upon repurchase of the Securities shall be
duly authorized, validly issued, fully paid and non-assessable.

     If a Holder of a repurchased Security is paid in Common Shares or Acquiror Securities, the
Company shall pay any documentary, stamp or similar issue or transfer tax due on such issue of
Common Shares or delivery of Acquiror Securities. However, the Holder shall pay any such tax that
is due because the Holder requests that the Common Shares be issued or Acquiror Securities be
delivered in a name other than the Holder’s name. The Trustee (or other Paying Agent appointed by
the Company) may refuse to deliver the certificates representing the Common Shares being issued or
Acquiror Securities being delivered in a name other than the Holder’s name until the Trustee (or
other paying agent appointed by the Company) receives a sum sufficient to pay any tax that will be
due because the Common Shares are to be issued or Acquiror Securities are to be delivered in a name
other than the Holder’s name. Nothing herein shall preclude any income tax withholding required by
law or regulations.

     Section 7.02. Effect of Fundamental Change Repurchase Notice. Upon receipt by the Paying
Agent of the Fundamental Change Repurchase Notice specified in Section 7.01(d), the Holder of the
Security in respect of which such Fundamental Change Repurchase Notice was given shall (unless such
Fundamental Change Repurchase Notice is withdrawn in accordance with Section 7.03) thereafter be
entitled to receive solely the Fundamental Change Repurchase Price with respect to such Security.
Such Fundamental Change Repurchase Price shall be paid to such Holder, subject to receipt of funds
or securities by the Paying Agent, on the later of (x) the Fundamental Change Repurchase Date with
respect to such Security (provided that the conditions in Section 7.01 have been satisfied) and
(y) the time of delivery of such Security to the Paying Agent by the Holder thereof in the manner
required by Section 7.01(c).

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     Section 7.03. Withdrawal of Fundamental Change Repurchase Notice. A Fundamental Change
Repurchase Notice may be withdrawn by means of a written notice of withdrawal delivered to the
Paying Agent in accordance with the Fundamental Change Company Notice at any time prior to the
close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date,
specifying:

     (a) the Principal Amount of the Securities with respect to which such notice of withdrawal is
being submitted;

     (b) if Physical Securities have been issued, the certificate numbers of the withdrawn
Securities; and

     (c) the Principal Amount, if any, of such Securities that remains subject to the original
Fundamental Change Repurchase Notice, which portion must be in Principal Amounts of $1,000 or an
integral multiple of $1,000;

provided, however, that if the Securities are Global Securities, the withdrawal notice must comply
with appropriate procedures of the Depositary.

     Section 7.04. Deposit of Fundamental Change Repurchase Price. Prior to 10:00 a.m. (New York
City time) on the Fundamental Change Repurchase Date, the Company shall deposit with the Trustee or
with the Paying Agent (or, if the Company or a Subsidiary or an Affiliate of either of them is
acting as the Paying Agent, shall segregate and hold in trust as provided herein) an amount of
money (in immediately available funds if deposited on such Business Day) or Common Shares or
Acquiror Securities, as applicable, sufficient to pay the Fundamental Change Repurchase Price of
all the Securities or portions thereof that are to be repurchased as of the Fundamental Change
Repurchase Date. The Company shall promptly notify the Trustee in writing of the amount of any
deposits of cash, Common Shares or Acquiror Securities made pursuant to this Section 7.04. If the
Paying Agent holds cash, Common Shares or Acquiror Securities sufficient to pay the Fundamental
Change Repurchase Price of any Security for which a Fundamental Change Repurchase Notice has been
tendered and not withdrawn in accordance with this Indenture on the Fundamental Change Repurchase
Date, then immediately following the Fundamental Change Repurchase Date, (a) such Security will
cease to be outstanding and interest will cease to accrue thereon (whether or not book-entry
transfer of such Securities is made or whether or no such Security is delivered to the Paying
Agent) and (b) all other rights of the Holder in respect thereof will terminate (other than the
right to receive the Fundamental Change Repurchase Price upon delivery or transfer of such
Security).

     Section 7.05. Securities Repurchased in Whole or in Part. Any Security that is to be
repurchased, whether in whole or in part, shall be surrendered at the office of the Paying Agent
(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 such Holder’s attorney duly authorized in writing) and the Company shall execute and the Trustee
shall authenticate and deliver to the Holder of such Security, without service charge, a new
Security or Securities, of any authorized denomination as requested by such Holder in

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aggregate Principal Amount equal to, and in exchange for, the portion of the Principal Amount
of the Security so surrendered which is not repurchased.

     Section 7.06. Covenant to Comply With Securities Laws Upon Repurchase of Securities. In
connection with any offer to repurchase Securities under Section 7.01 (provided that such offer or
repurchase constitutes an “issuer tender offer” for purposes of Rule 13e-4 (which term, as used
herein, includes any successor provision thereto) under the Exchange Act at the time of such offer
or repurchase), the Company shall, if required, (a) comply with Rule 13e-4, Rule 14e-1 and any
other applicable tender offer rules under the Exchange Act, (b) file the related Schedule TO (or
any successor schedule, form or report) under the Exchange Act, and (c) otherwise comply with all
Federal and state securities laws so as to permit the rights and obligations under Section 7.01 to
be exercised in the time and in the manner specified in Section 7.01.

     Section 7.07. Repayment to the Company. The Trustee and the Paying Agent shall return to the
Company any cash, Common Shares or Acquiror Securities that remain unclaimed held by them for the
payment of the Fundamental Change Repurchase Price; provided that to the extent that the aggregate
amount of cash, Common Shares or Acquiror Securities deposited by the Company pursuant to Section
7.04 exceeds the aggregate Fundamental Change Repurchase Price of the Securities or portions
thereof which the Company is obligated to repurchase as of the Fundamental Change Repurchase Date,
then as soon as practicable following the Fundamental Change Repurchase Date, the Trustee or the
Paying Agent, as the case may be, shall return any such excess to the Company.

ARTICLE 8

Conversion

     Section 8.01. Conversion Right. Subject to and upon compliance with the provisions of this
Indenture, each Holder shall have the right, at such Holder’s option, at any time following the
Issue Date of the Securities hereunder through the close of business on the Business Day
immediately preceding the Stated Maturity to convert the Principal Amount of any such Securities,
or any portion of such Principal Amount that is $1,000 or an integral multiple thereof, at an
initial conversion rate of [___] Common Shares (subject to adjustment as provided in Section
8.03 and Section 8.06, the “Conversion Rate”) per $1,000 Principal Amount of Securities (subject
to the settlement provisions of Section 8.02, the “Conversion Obligation”) (x) prior to the close
of business on the Business Day immediately preceding September 15, 2028, only upon the
satisfaction of any of the conditions described in clauses (a) through (e) below and (y) on or
after September 15, 2028, without regard to the conditions described in clauses (a) through (e)
below.

     (a) Subject to Section 8.02(d), prior to the close of business on the Business Day
immediately preceding September 15, 2028, a Holder may surrender all or a portion of its Securities
for conversion during any calendar quarter commencing after December 31, 2009 (and only during such
calendar quarter), if the Last Reported Sale Price for the Common Shares for at

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least 20 Trading Days (whether or not consecutive) during the period of 30 consecutive Trading
Days ending on the last Trading Day of the preceding calendar quarter is greater than or equal to
130% of the Conversion Price on each applicable Trading Day.

     (b) Subject to Section 8.02(d), prior to the close of business on the Business Day
immediately preceding September 15, 2028, a Holder may surrender its Securities for conversion
during the five Business Day period after any five consecutive Trading Day period (the “Measurement
Period”) in which the Trading Price per $1,000 Principal Amount of Securities, as determined
following a request by a Holder of Securities in accordance with the procedures set forth in this
Section 8.01(b), for each day of such Measurement Period was less than 98% of the product of the
Last Reported Sale Price of the Common Shares and the applicable Conversion Rate (“Trading Price
Condition”). For purposes of this Section 8.01(b), the “Trading Price” of the Securities on any
date of determination means the average of the secondary market bid quotations per $1,000 Principal
Amount of Securities obtained by the Bid Solicitation Agent for $5,000,000 Principal Amount of
Securities at approximately 3:30 p.m., New York City time, on such determination date from three
independent nationally recognized securities dealers that the Company selects; provided that if
three such bids cannot reasonably be obtained by the Bid Solicitation Agent but two such bids are
obtained, then the average of the two bids shall be used, and if only one such bid can reasonably
be obtained by the Bid Solicitation Agent, that one bid shall be used. The Company shall provide
prompt written notice to the Bid Solicitation Agent identifying the three independent nationally
recognized securities dealers selected by the Company. If, on any Trading Day, the Bid
Solicitation Agent cannot reasonably obtain at least one bid for $5,000,000 million Principal
Amount of Securities from an independent nationally recognized securities dealer, then the Trading
Price per $1,000 Principal Amount of Securities shall be deemed to be less than 98% of the product
of the Last Reported Sale Price of the Common Shares and the applicable Conversion Rate on such
Trading Day. If, on any Trading Day, the Company does not instruct the Bid Solicitation Agent to
obtain bids when required, the Trading Price per $1,000 Principal Amount of Securities shall be
deemed to be less than 98% of the product of the Last Reported Sale Price of the Common Shares and
the applicable Conversion Rate on each Trading Day the Company fails to do so. The Bid
Solicitation Agent shall have no obligation to determine the Trading Price of the Securities unless
the Company has requested such determination; and the Company shall have no obligation to make such
request to the Bid Solicitation Agent unless a Holder of a Security provides the Company with
reasonable evidence that the Trading Price per $1,000 Principal Amount of Securities would be less
than 98% of the product of the Last Reported Sale Price of the Common Shares and the applicable
Conversion Rate. At such time, the Company shall instruct the Bid Solicitation Agent to determine
the Trading Price of the Securities beginning on the next Trading Day and on each successive
Trading Day until the Trading Price per $1,000 Principal Amount of Securities is greater than or
equal to 98% of the product of the Last Reported Sale Price of the Common Shares and the applicable
Conversion Rate. If the Trading Price Condition has been met, the Company shall so notify the
Holders and the Trustee. If, at any time after the Trading Price Condition has been met, the
Trading Price per $1,000 Principal Amount of Securities is greater than 98% of the product of the
Last Reported Sale Price of the

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Common Shares and the Conversion Rate for such date, the Company will so notify the Holders
and the Trustee.

     (c) Subject to Section 8.02(d), a Holder may surrender its Securities for conversion if the
Company calls any or all of the Securities for redemption as provided in Article 6, at any time
prior to the close of business on the Business Day immediately preceding the Redemption Date, even
if the Securities are not otherwise convertible at such time, after which time the Holder’s right
to convert its Securities pursuant to this Section 8.01 will expire (unless the Company defaults
in the payment of the Redemption Price, in which case a Holder of Securities may convert such
Securities pursuant to this Section 8.01 until the Redemption Price has been paid or duly provided
for).

     (d) If the Company elects to:

     (i) issue to all or substantially all holders of Common Shares rights, options or
warrants entitling them for a period of not more than 60 calendar days after the
announcement date of such issuance to subscribe for or purchase Common Shares, at a price
per share less than the average of the Last Reported Sale Prices of the Common Shares for
the 10 consecutive Trading Day period ending on the Trading Day immediately preceding the
date of announcement of such issuance; or

     (ii) distribute to all or substantially all holders of Common Shares its assets, debt
securities or rights to purchase its securities, which distribution has a per share value,
as reasonably determined by the Company’s Board of Directors, exceeding 10% of the Last
Reported Sale Price of the Common Shares on the Trading Day immediately preceding the date
of announcement for such distribution,

then, in either case, the Company shall notify the Holders of the Securities at least 30 Scheduled
Trading Days prior to the Ex-Dividend Date for such issuance or distribution. Once the Company has
given such notice, subject to Section 8.02(d), Holders may surrender their Securities for
conversion at any time until the earlier of 5:00 p.m., New York City time, on the Business Day
immediately preceding the Ex-Dividend Date and the Company’s announcement that such issuance or
distribution will not take place, even if the Securities are not otherwise convertible at such
time.

     (e) If (i) a transaction or event that constitutes a Fundamental Change or a Make-Whole
Fundamental Change occurs, regardless of whether a Holder has the right to require the Company to
purchase the Securities pursuant to Section 7.01, (ii) the Company is a party to a consolidation,
merger or binding share exchange pursuant to which the Company’s Common Shares would be converted
into cash, securities or other assets or (iii) the Company transfers or leases all or substantially
all of its assets in a transaction pursuant to which the Common Shares would be converted into
cash, securities or other assets, then, in any such case, subject to Section 8.02(d), the
Securities may be surrendered for conversion at any time from or after the date which is 30
Scheduled Trading Days prior to the anticipated effective date of the transaction (or, if later,
the Business Day after the Company gives notice of such transaction) until 35 Trading

55

 

Days after the actual effective date of such transaction (or, if such transaction also
constitutes a Fundamental Change, until the related Fundamental Change Repurchase Date). In
addition, if a transaction or event that constitutes a Make-Whole Fundamental Change occurs on or
prior to the Cut-off Date, the Securities may also be surrendered for conversion at any time from,
and including, the Cut-off Date, to, and including, the 30th calendar day immediately
following the Cut-off Date. The Company shall notify Holders and the Trustee (i) as promptly as
practicable following the date the Company publicly announces such transaction but in no event less
than 30 Scheduled Trading Days prior to the anticipated effective date of such transaction or (ii)
if the Company does not have knowledge of such transaction at least 30 Scheduled Trading Days prior
to the anticipated effective date of such transaction, within three Business Days of the date upon
which the Company receives notice, or otherwise becomes aware, of such transaction but in no event
later than the actual effective date of such transaction.

     Section 8.02. Settlement Upon Conversion; Conversion Procedure. (a) Except as provided in
Section 8.06, upon conversion of any Security, on the third Business Day immediately following the
last Trading Day of the relevant Observation Period, the Company shall deliver to converting
Holders in respect of each $1,000 Principal Amount of Securities surrendered for conversion a
“Settlement Amount” equal to the sum of the Daily Settlement Amounts for each of the 20 Trading
Days during the Observation Period. If the sum of the Daily Conversion Values for each of the 20
Trading Days in the applicable Observation Period is less than the $1,000 Principal Amount, a
converting Holder(s) will receive less than $1,000 Principal Amount in respect of each $1,000
Principal Amount of Securities converted.

     (b) The Company may specify in respect of any conversion a percentage of the Daily Share
Amount that will be settled in cash (the “Cash Percentage”) and the Company shall notify Holders of
such Cash Percentage (the “Cash Percentage Notice”) no later than the second Business Day
immediately following the related Conversion Date (or in the case of any conversions occurring on
or after (i) the date of issuance of a Redemption Notice in accordance with Section 6.03 and prior
to the related Redemption Date, in such Redemption Notice or (ii) September 15, 2028, no later than
September 15, 2028). The Company may only specify one Cash Percentage (if any) in respect of each
Observation Period. If the Company timely specifies a Cash Percentage, the amount of cash that the
Company will pay in lieu of all or the applicable portion of the Daily Share Amount in respect of
each Trading Day in the applicable Observation Period shall equal the product of (A) the Cash
Percentage, (B) the Daily Share Amount for such Trading Day (assuming the Company had not specified
a Cash Percentage) and (C) the Daily VWAP for such Trading Day. The number of Common Shares
deliverable in respect of each Trading Day in the applicable Observation Period shall be a
percentage of the Daily Share Amount (assuming the Company had not specified a Cash Percentage)
equal to 100% minus the Cash Percentage. If the Company does not timely specify a Cash Percentage,
the Company shall no longer have the right to specify a Cash Percentage and the Company must settle
the entire Daily Share Amount for each Trading Day in such Observation Period in Common Shares
(plus cash in lieu of any fractional share in accordance with Section 8.02(f)).

     (c) Before any Holder of a Security shall be entitled to convert the same as set forth in
Section 8.01, such Holder shall (i) in the case of a Global Security, comply with the procedures

56

 

of the Depositary in effect at that time and, if required, pay funds equal to interest payable
on the next Interest Payment Date to which such Holder is not entitled as set forth in Section
3.01(c) and, if required pursuant to Section 8.02(h), pay all taxes or duties, if any and (ii) in
the case of a Physical Security, (A) complete and manually sign the conversion notice in the form
on the reverse of such Physical Security (a “Notice of Conversion”) or a facsimile of the Notice of
Conversion, (B) deliver the Notice of Conversion, which is irrevocable, and the Physical Security
to the Conversion Agent, (C) if required, furnish appropriate endorsements and transfer documents,
(D) if required, pay all transfer or similar taxes and (E) if required, pay funds equal to interest
payable on the next Interest Payment Date to which such Holder is not entitled as set forth in
Section 3.01(c). No Notice of Conversion with respect to any Securities may be given by a Holder
thereof if such Holder has also given a Fundamental Change Repurchase Notice and not validly
withdrawn such Fundamental Change Repurchase Notice in accordance with Section 7.03.

     (d) Notwithstanding the foregoing, on any date on or prior to the Cut-off Date, if the
aggregate Principal Amount of Securities that has been converted prior to such date is equal to or
greater than $25,000,000, the Company will not be required to accept Securities surrendered for
conversion, and a Holder will not be permitted to convert its Securities. If, as a result of one or
more conversions on a single Conversion Date prior to the Cut-off Date, the aggregate Principal
Amount of Securities that a converting Holder or Holders have surrendered for conversion on such
Conversion Date, when added to the aggregate Principal Amount of Securities converted prior to such
Conversion Date, would exceed $25,000,000, each such Holder(s) will be subject to proration with
respect to its conversion and may not be able to convert all of its Securities. In addition, if
exact proration would lead to conversions in excess of this limitation (or conversion of a
Principal Amount of Securities that is not an integral multiple of $1,000), the Conversion Agent
will select the Securities to be converted (in Principal Amounts of $1,000 or integral multiples
thereof) by lot or by another method that the Conversion Agent considers fair and appropriate.

     (e) A Security shall be deemed to have been converted on the date that the Holder has complied
with the requirements set forth in subsection (c) above and such conversion is not otherwise
prohibited by Section 8.02(d) (the “Conversion Date”); provided, however, that the Person in whose
name any Common Shares shall be issuable upon such conversion shall become the Holder of record of
such Common Shares as of the close of business on the last Trading Day of the relevant Observation
Period.

     (f) The Company shall deliver cash in lieu of any fractional Common Share issuable in
connection with payment and delivery of the Settlement Amount based on the Daily VWAP of the Common
Shares on the last Trading Day of the applicable Observation Period.

     (g) In case any Security shall be surrendered for partial conversion, the Company shall
execute and the Trustee shall authenticate and deliver to or upon the written order of the Holder
of the Security so surrendered, without charge to such Holder, a new Security or Securities in
authorized denominations in an aggregate Principal Amount equal to the unconverted portion of the
surrendered Securities.

57

 

     (h) If a Holder submits a Security for conversion, the Company shall pay any documentary,
stamp or similar issue or transfer tax due on the issue of any Common Shares upon conversion,
unless the tax is due because the Holder requests any shares to be issued in a name other than the
Holder’s name or because, solely as a result of the actions of the Holder, the tax is imposed by
any taxing authority outside the United States, in which either such case the Holder will pay that
tax. The Conversion Agent may refuse to deliver the certificates representing the Common Shares
being issued in a name other than the Holder’s name until the Trustee receives a sum sufficient to
pay any tax which will be due because the shares are to be issued in a name other than the Holder’s
name. Nothing herein shall preclude any tax withholding required by law or regulations.

     (i) Except as provided in Section 8.03, no adjustment shall be made for dividends on any
Common Shares issued upon the conversion of any Security as provided in this Article 8.

     (j) Upon the conversion of an interest in a Global Security, the Trustee shall make a notation
on the “Schedule of Exchanges of Securities” of such Global Security as to the reduction in the
Principal Amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of any Security effected through any Conversion Agent other than the Trustee.

     Section 8.03. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company if any of the following events occurs, except that the Company shall not
make any adjustments to the Conversion Rate if Holders of the Securities participate (other than in
the case of a share split or share combination), at the same time and upon the same terms as
holders of the Common Shares and solely as a result of holding the Securities, in any of the
transactions described in this Section 8.03, without having to convert their Securities, as if
such Holders held a number of Common Shares equal to the Conversion Rate, multiplied by the
Principal Amount (expressed in thousands) of Securities held by such Holder.

     (a) If the Company exclusively issues Common Shares as a dividend or distribution on its
Common Shares, or if the Company effects a share split or share combination of its Common Shares,
the Conversion Rate shall be adjusted based on the following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the open of business on
the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open
of business on the effective date of such share split or share combination, as
applicable;

58

 

	 	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the open of business on
such Ex-Dividend Date or effective date;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of Common Shares outstanding immediately prior to the open of
business on such Ex-Dividend Date or effective date; and
	 
	 	 	 	 
	OS1

	 	=
	 	the number of Common Shares outstanding immediately after giving effect to
such dividend, distribution, share split or share combination.

Any adjustment made under this Section 8.03(a) shall become effective immediately after the open
of business on the Ex-Dividend Date for such dividend or distribution, or immediately after the
open of business on the effective date for such share split or share combination. If any dividend
or distribution of the type described in this Section 8.03(a) is declared but not so paid or
made, or any share split or combination of the type described in this Section 8.03(a) is
announced but the outstanding Common Shares are not split or combined, as the case may be, the
Conversion Rate shall be immediately readjusted, effective as of the date the Board of Directors
determines not to pay such dividend or distribution, or not to split or combine the outstanding
Common Shares, as the case may be, to the Conversion Rate that would then be in effect if such
dividend, distribution, share split or share combination had not been declared or announced.

     (b) If the Company issues to all or substantially all holders of its Common Shares any rights,
options or warrants entitling them for a period of not more than 60 calendar days after the
announcement date of such issuance to subscribe for or purchase Common Shares, at a price per share
less than the average of the Last Reported Sale Prices of the Common Shares for the 10 consecutive
Trading Day period ending on the Trading Day immediately preceding the date of announcement of such
issuance, the Conversion Rate shall be increased based on the following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the open of business on
the Ex-Dividend Date for such issuance;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of Common Shares outstanding immediately prior to the open of business on such Ex-Dividend Date;
	 
	 	 	 	 
	X

	 	=
	 	the total number of Common Shares issuable pursuant to such rights, options or warrants; and

59

 

	 	 	 	 	 
	Y

	 	=
	 	the number of Common Shares equal to the aggregate price payable to exercise
or convert such rights, options or warrants, divided by the average of the Last
Reported Sale Prices of Common Shares over the 10 consecutive Trading Day period ending
on the Trading Day immediately preceding the date of announcement of the issuance of
such rights, options or warrants.

Any increase made under this Section 8.03(b) shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the open of business on
the Ex-Dividend Date for such issuance. To the extent that Common Shares are not delivered after
the expiration of such rights, options or warrants, the Conversion Rate shall be decreased to the
Conversion Rate that would then be in effect had the increase with respect to the issuance of such
rights, options or warrants been made on the basis of delivery of only the number of Common Shares
actually delivered. If such rights, options or warrants are not so issued, the Conversion Rate
shall be decreased to the Conversion Rate that would then be in effect if such Ex-Dividend Date for
such issuance had not occurred.

In determining whether any rights, options or warrants entitle the holders to subscribe for or
purchase Common Shares at less than such average of the Last Reported Sale Prices of the Common
Shares for the 10 consecutive Trading Day period ending on the Trading Day immediately preceding
the date of announcement for such issuance, and in determining the aggregate offering price of such
Common Shares, there shall be taken into account any consideration received by the Company for such
rights, options or warrants and any amount payable on exercise or conversion thereof, the value of
such consideration, if other than cash, to be determined by the Board of Directors.

     (c) If the Company distributes shares of its Capital Stock, evidences of its indebtedness,
other assets or property of the Company or rights, options or warrants to acquire its Capital Stock
or other securities, to all or substantially all holders of the Common Shares, excluding (i)
dividends, distributions, rights, options or warrants as to which an adjustment was effected
pursuant to Section 8.03(a) or Section 8.03(b), (ii) dividends or distributions paid
exclusively in cash, and (iii) Spin-Offs as to which the provisions set forth below in this
Section 8.03(c) shall apply (any of such shares of Capital Stock, evidences of indebtedness, other
assets or property or rights, options or warrants to acquire Capital Stock or other securities of
the Company, the “Distributed Property”), then the Conversion Rate shall be increased based on the
following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the open of business on the Ex-Dividend Date for such distribution;

60

 

	 	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the open of business on such Ex-Dividend Date;
	 
	 	 	 	 
	SP0

	 	=
	 	the average of the Last Reported Sale Prices of the Common Shares over the
10 consecutive Trading Day period ending on the Trading Day immediately preceding the
Ex-Dividend Date for such distribution; and
	 
	 	 	 	 
	FMV

	 	=
	 	the fair market value (as determined by the Board of Directors) of the
Distributed Property with respect to each outstanding Common Share on the Ex-Dividend Date for such distribution.

If the Board of Directors determines the “FMV” (as defined above) of any distribution for purposes
of this Section 8.03(c) by reference to the actual or when-issued trading market for any
securities, it shall in doing so consider the prices in such market over the same period used in
computing the Last Reported Sale Prices of the Common Shares over the 10 consecutive Trading Day
period ending on the Trading Day immediately preceding the Ex-Dividend Date for such distribution.

Any increase made under the portion of this Section 8.03(c) above shall become effective
immediately after the open of business on the Ex-Dividend Date for such distribution. If such
distribution is not so paid or made, the Conversion Rate shall be decreased to the Conversion Rate
that would then be in effect if such dividend or distribution had not been declared.

With respect to an adjustment pursuant to this Section 8.03(c) where there has been a payment of a
dividend or other distribution on the Common Shares of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit (a
“Spin-Off”), the Conversion Rate will be increased based on the following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the end of the Valuation Period;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the end of the Valuation Period;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Last Reported Sale Prices of the Capital Stock or
similar equity interest distributed to holders of Common Shares applicable to one
Common Share over the first 10 consecutive Trading Day period after, and including, the
Ex-Dividend Date of the Spin-Off (the “Valuation Period”); and

61

 

	 	 	 	 	 
	MP0

	 	=
	 	the average of the Last Reported Sale Prices of Common Shares over the Valuation Period.

The adjustment to the Conversion Rate under the preceding paragraph shall occur on the last day of
the Valuation Period; provided that in respect of any conversion during the Valuation Period,
references in the portion of this Section 8.03(c) related to Spin-Offs to 10 Trading Days shall be
deemed replaced with such lesser number of Trading Days as have elapsed between the Ex-Dividend
Date of such Spin-Off and the Conversion Date in determining the applicable Conversion Rate.

     For purposes of this Section 8.03 (and subject in all respect to Section 8.11), rights,
options or warrants distributed by the Company to all holders of its Common Shares entitling them
to subscribe for or purchase shares of the Company’s Capital Stock, including Common Shares (either
initially or under certain circumstances), which rights, options or warrants, until the occurrence
of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such Common
Shares; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of the
Common Shares, shall be deemed not to have been distributed for purposes of this Section 8.03 (and
no adjustment to the Conversion Rate under this Section 8.03 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights, options or warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is required) to the
Conversion Rate shall be made under this Section 8.03. If any such right, option or warrant,
including any such existing rights, options or warrants distributed prior to the date of this
Indenture, are subject to events, upon the occurrence of which such rights, options or warrants
become exercisable to purchase different securities, evidences of indebtedness or other assets,
then the date of the occurrence of any and each such event shall be deemed to be the date of
distribution and Ex-Dividend Date with respect to new rights, options or warrants with such rights
(in which case the existing rights, options or warrants shall be deemed to terminate and expire on
such date without exercise by any of the holders thereof). In addition, in the event of any
distribution (or deemed distribution) of rights, options or warrants, or any Trigger Event or other
event (of the type described in the immediately preceding sentence) with respect thereto that was
counted for purposes of calculating a distribution amount for which an adjustment to the Conversion
Rate under this Section 8.03 was made, (1) in the case of any such rights, options or warrants
that shall all have been redeemed or purchased without exercise by any holders thereof, upon such
final redemption or purchase (x) the Conversion Rate shall be readjusted as if such rights, options
or warrants had not been issued and (y) the Conversion Rate shall then again be readjusted to give
effect to such distribution, deemed distribution or Trigger Event, as the case may be, as though it
were a cash distribution, equal to the per share redemption or purchase price received by a holder
or holders of Common Shares with respect to such rights, options or warrants (assuming such holder
had retained such rights, options or warrants), made to all holders of Common Shares as of the date
of such redemption or purchase, and (2) in the case of such rights, options or warrants that shall
have expired or been terminated without exercise by any holders thereof, the Conversion Rate shall
be readjusted as if such rights, options and warrants had not been issued.

62

 

     For purposes of Section 8.03(a), Section 8.03(b) and this Section 8.03(c), any dividend
or distribution to which this Section 8.03(c) is applicable that also includes one or both of:

     (A) a dividend or distribution of Common Shares to which Section 8.03(a) is applicable (the
“Clause A Distribution”); or

     (B) a dividend or distribution of rights, options or warrants to which Section 8.03(b) is
applicable (the “Clause B Distribution”),

then (1) such dividend or distribution, other than the Clause A Distribution and the Clause B
Distribution, shall be deemed to be a dividend or distribution to which this Section 8.03(c) is
applicable (the “Clause C Distribution”) and any Conversion Rate adjustment required by this
Section 8.03(c) with respect to such Clause C Distribution shall then be made, and (2) the Clause
A Distribution and Clause B Distribution shall be deemed to immediately follow the Clause
Distribution and any Conversion Rate adjustment required by Section 8.03(a) and Section 8.03(b)
with respect thereto shall then be made, except that, if determined by the Company (I) the
“Ex-Dividend Date” of the Clause A Distribution and the Clause B Distribution shall be deemed to be
the Ex-Dividend Date of the Clause C Distribution and (II) any Common Shares included in the Clause
A Distribution or Clause B Distribution shall be deemed not to be “outstanding immediately prior to
the Ex-Dividend Date of such dividend or distribution, or immediately prior to the open of business
on the effective date of such share split or share combination, as applicable” within the meaning
of Section 8.03(a) or “outstanding immediately prior to the open of business on such Ex-Dividend
Date” within the meaning of Section 8.03(b).

     (d) If any cash dividend or distribution is made to all or substantially all holders of the
Common Shares (other than a distribution under subsection (e) below, pursuant to which an
adjustment to the Conversion Rate is made), the Conversion Rate shall be increased based on the
following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the open of business on
the Ex-Dividend Date for such dividend or distribution;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the open of business on the
Ex-Dividend Date for such dividend or distribution;
	 
	 	 	 	 
	SP0

	 	=
	 	the Last Reported Sale Price of the Common Shares on the Trading Day
immediately preceding the Ex-Dividend Date for such dividend or distribution; and

63

 

	 	 	 	 	 
	C

	 	=
	 	the amount in cash per share the Company distributes to holders of its Common Shares.

Any increase pursuant to this Section 8.03(d) shall become effective immediately after the open
of business on the Ex-Dividend Date for such dividend or distribution. If such dividend or
distribution is not so paid, the Conversion Rate shall be decreased to the Conversion Rate that
would then be in effect if such dividend or distribution had not been declared.

     (e) If the Company or any of its Subsidiaries make a payment in respect of a tender offer or
exchange offer for the Common Shares, to the extent that the cash and value of any other
consideration included in the payment per Common Share exceeds the Last Reported Sale Price of the
Common Shares on the Trading Day next succeeding the last date on which tenders or exchanges may be
made pursuant to such tender or exchange offer, the Conversion Rate shall be increased based on the
following formula:

   where,

	 	 	 	 	 
	CR0

	 	=
	 	the Conversion Rate in effect immediately prior to the close of business on
the 10th Trading Day immediately following, and including, the Trading Day next
succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 
	CR1

	 	=
	 	the Conversion Rate in effect immediately after the close of business on
the 10th Trading Day immediately following, and including, the Trading Day next
succeeding the date such tender or exchange offer expires;
	 
	 	 	 	 
	AC

	 	=
	 	the aggregate value of all cash and any other consideration (as determined by
the Board of Directors) paid or payable for Common Shares purchased in such tender or
exchange offer;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of Common Shares outstanding immediately prior to the date such
tender or exchange offer expires (prior to giving effect to the purchase of all Common
Shares accepted for purchase or exchange in such tender offer or exchange offer);
	 
	 	 	 	 
	OS1

	 	=
	 	the number of Common Shares outstanding immediately after the date such
tender or exchange offer expires (after giving effect to the purchase of all Common
Shares accepted for purchase or exchange in such tender offer or exchange offer); and
	 
	 	 	 	 
	SP1

	 	=
	 	the average of the Last Reported Sale Prices of the Common Shares over the
10 consecutive Trading Day period commencing on the Trading Day next succeeding the
date such tender or exchange offer expires.

64

 

The adjustment to the Conversion Rate under this Section 8.03(e) shall occur at the close of
business on the 10th Trading Day immediately following, and including, the Trading Day next
succeeding the date such tender or exchange offer expires; provided that in respect of any
conversion within the 10 Trading Days immediately following, and including, the expiration date of
any tender or exchange offer, references in this Section 8.03(e) with respect to 10 Trading Days
shall be deemed replaced with such lesser number of Trading Days as have elapsed between the
expiration date of such tender or exchange offer and the Conversion Date in determining the
applicable Conversion Rate. If the Company is obligated to purchase Common Shares pursuant to any
such tender or exchange offer, but the Company is permanently prevented by applicable law from
effecting any such purchases or all such purchases are rescinded, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such tender or exchange offer
had not been made.

     (f) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance
of Common Shares or any securities convertible into or exchangeable for Common Shares or the right
to purchase Common Shares or such convertible or exchangeable securities.

     (g) In addition to those required by subsections (a), (b), (c), (d) or (e) of this
Section 8.03, and to the extent permitted by applicable law and subject to the applicable rules of
The New York Stock Exchange (if the Common Shares are then listed thereon), the Company from time
to time may increase the Conversion Rate by any amount for a period of at least 20 Business Days if
the Board of Directors determines that such increase would be in the Company’s best interest. In
addition, the Company may (but is not required to) increase the Conversion Rate to avoid or
diminish any income tax to holders of Common Shares or rights to purchase Common Shares in
connection with a dividend or distribution of shares (or rights to acquire shares) or similar
event. Whenever the Conversion Rate is increased pursuant to either of the preceding two
sentences, the Company shall mail to the Holder of each Security at its last address appearing on
the Security Register a notice of the increase at least 15 days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased Conversion Rate and the
period during which it will be in effect.

     (h) All calculations and other determinations under this Article 8 shall be made by the
Company or its agents and shall be made to the nearest cent or to the nearest one-ten thousandth
(1/10,000) of a share, as the case may be. The Company shall not be required to make an adjustment
to the Conversion Rate unless the adjustment would require a change of at least 1% in the
Conversion Rate. However, the Company shall carry forward any adjustments that are less than 1% of
the Conversion Rate and make such carried-forward adjustment, regardless of whether the aggregate
adjustment is less than 1% (i) upon any conversion of Securities and (ii) on each of the 22
Scheduled Trading Days immediately preceding September 15, 2029.

     (i) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and the Conversion Agent (if other than the Trustee) an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment. Unless and until a Responsible Officer of the Trustee shall have
received such Officers’ Certificate, the Trustee shall not be deemed to have

65

 

knowledge of any adjustment of the Conversion Rate and may assume without inquiry that the
last Conversion Rate of which a Responsible Officer of the Trustee has actual knowledge is still in
effect. Promptly after delivery of such certificate, the Company shall prepare a notice of such
adjustment of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which
each adjustment becomes effective and shall mail such notice of such adjustment of the Conversion
Rate to each Holder at its last address appearing on the Security Register of this Indenture.
Failure to deliver such notice shall not affect the legality or validity of any such adjustment.

     (j) For purposes of this Section 8.03, the number of Common Shares at any time outstanding
shall not include shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of Common Shares. The Company shall not
pay any dividend or make any distribution on Common Shares held in the treasury of the Company.

     (k) Notwithstanding anything to the contrary in this Article 8, the applicable Conversion
Rate shall not be adjusted:

     (i) upon the issuance of any Common Shares pursuant to any present or future plan
providing for the reinvestment of dividends or interest payable on the Company’s securities
and the investment of additional optional amounts in Common Shares under any plan;

     (ii) upon the issuance of any Common Shares or options or rights to purchase those
 shares pursuant to any present or future employee, director or consultant benefit plan or
program of the Company or any of its Subsidiaries or any such plan or program assumed by the
Company or any of the Company’s Subsidiaries;

     (iii) upon the issuance of any Common Shares pursuant to any option, warrant, right or
exercisable, exchangeable or convertible security not described in clause (ii) of this
subsection and outstanding as of the date the Securities were first issued;

     (iv) for a change in the par value of the Common Shares; or

     (v) for accrued and unpaid interest, if any.

     Section 8.04. Shares to Be Fully Paid. The Company shall provide, free from preemptive
rights, out of its authorized but unissued shares or shares held in treasury, sufficient Common
Shares to provide for conversion of the Securities from time to time as such Securities are
presented for conversion (assuming a Cash Percentage for all conversions of 0%).

     Section 8.05. Adjustments of Average Prices. Whenever any provision of this Indenture
requires the Company to calculate the Last Reported Sale Prices, the Daily VWAPs, the Daily
Conversion Values or the Daily Settlement Amounts over a span of multiple days (including an
Observation Period and the Stock Price for purposes of a Make-Whole Fundamental Change), the
Company shall make appropriate adjustments to each to account for any adjustment to the

66

 

Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion
Rate where the Ex-Dividend Date of the event occurs, at any time during the period when the Last
Reported Sale Prices, the Daily VWAPs, the Daily Conversion Values or the Daily Settlement Amounts
are to be calculated.

     Section 8.06. Adjustment to Shares Delivered Upon Conversion Upon a Make-Whole Fundamental
Change. (a) If a Make-Whole Fundamental Change occurs and a Holder elects to convert its
Securities in connection with such Make-Whole Fundamental Change, the Company shall, under certain
circumstances, increase the Conversion Rate for the Securities so surrendered for conversion by a
number of additional Common Shares equal to a percentage of the applicable Conversion Rate prior to
such increase (the “Percentage Increase”), as described below. A conversion of Securities shall be
deemed for these purposes to be “in connection with” such Make-Whole Fundamental Change if the
relevant Notice of Conversion is received by the Conversion Agent (x) from, and including, the
Effective Date of the Make-Whole Fundamental Change up to, and including, the Business Day
immediately prior to the related Fundamental Change Repurchase Date (or, in the case of a
Make-Whole Fundamental Change that would have been a Fundamental Change but for the proviso in
clause (b) of the definition thereof, the 35th Trading Day immediately following the Effective Date
of such Make-Whole Fundamental Change) or (y) if the relevant Make-Whole Fundamental Change occurs
on or prior to the Cut-off Date, from, and including, the Cut-off Date, to, and including, the
30th calendar day immediately following the Cut-off Date.

     (b) Upon surrender of Securities for conversion in connection with a Make-Whole Fundamental
Change pursuant to Section 8.01(e), the Company shall pay or deliver, as the case may be, in lieu
of Common Shares, including the number of additional Common Shares equal to the Percentage
Increase, cash or a combination of cash and Common Shares in accordance with Section 8.02;
provided, however, that if, at the effective time of a Make-Whole Fundamental Change described in
clause (b) of the definition of Fundamental Change, the Reference Property is comprised entirely of
cash, for any conversion of Securities following the Effective Date of such Make-Whole Fundamental
Change, the Conversion Obligation shall be calculated based solely on the Stock Price for the
transaction and shall be deemed to be an amount equal to the Conversion Rate (including any
Percentage Increase), multiplied by such Stock Price. In such event, the Conversion Obligation
shall be determined and paid to Holders in cash on the third Business Day following the Conversion
Date. The Company shall notify the Holders of Securities of the Effective Date of any Make-Whole
Fundamental Change and issue a press release announcing such Effective Date no later than five
Business Days after such Effective Date.

     (c) The Percentage Increase shall be determined by reference to the table below, based on the
date on which the Make-Whole Fundamental Change occurs or becomes effective (the “Effective Date”)
and the price (the “Stock Price”) paid (or deemed paid) per Common Share in the Make-Whole
Fundamental Change as a percentage of the Reference Price. If the holders of the Common Shares
receive only cash in a Make-Whole Fundamental Change described in clause (b) of the definition of
Fundamental Change, the Stock Price shall be the cash amount paid per share. Otherwise, the Stock
Price shall be the average of the Last Reported Sale Prices

67

 

of the Common Shares over the five Trading Day period ending on, and including, the Trading
Day immediately preceding the Effective Date of the Make-Whole Fundamental Change. The Board of
Directors shall make appropriate adjustments to the Stock Price, in its good faith determination in
accordance with Section 8.05, to account for any adjustment to the Conversion Rate that becomes
effective, or any event requiring an adjustment to the Conversion Rate where the Ex-Dividend Date
of the event occurs, during such five consecutive Trading Day period.

     (d) The Stock Prices as a percentage of the Reference Price set forth in the column headings
of the table below shall be adjusted as of any date on which the Conversion Rate of the Securities
is otherwise adjusted as set forth in Section 8.03. The adjusted Stock Prices as a percentage of
the Reference Price shall equal the Stock Prices as a percentage of the Reference Price applicable
immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the
Conversion Rate immediately prior to such adjustment giving rise to the Stock Price as a percentage
of the Reference Price adjustment and the denominator of which is the Conversion Rate as so
adjusted. The Percentage Increases set forth in the table below shall also be adjusted in the same
manner and at the same time as the Conversion Rate as set forth in Section 8.03.

     (e) The following table sets forth the Percentage Increase pursuant to this Section 8.06 for
each Stock Price as a percentage of the Reference Price and Effective Date set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price as a Percentage of the Reference Price	 
	Effective Date	 	100%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 	 	%	 
	 
	[October __], 2009
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2010
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2011
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2012
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2013
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2014
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2015
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2016
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2017
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2018
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2019
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2020
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2021
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2022
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2023
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2024
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2025
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2026
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2027
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2028
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	September 15, 2029
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

     The exact Stock Price as a percentage of the Reference Price and Effective Date may not be set
forth in the table above, in which case:

     (i) if the Stock Price as a percentage of the Reference Price is between two Stock
Prices as a percentage of the Reference Price in the table above or the Effective Date is
between two Effective Dates in the table above, the Percentage Increase shall be determined
by a straight-line interpolation between the Percentage Increase set forth for

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the higher and lower Stock Prices as a percentage of the Reference Price and the
earlier and later Effective Dates, as applicable, based on a 365-day year;

     (ii) if the Stock Price as a percentage of the Reference Price is greater than 600.0%
of the Reference Price (subject to adjustment in the same manner as the Stock Prices as a
percentage of the Reference Price set forth in the column headings of the table above), no
additional Common Shares shall be added to the Conversion Rate; and

     (iii) if the Stock Price as a percentage of the Reference Price is less than 100.0% of
the Reference Price (subject to adjustment in the same manner as the Stock Prices as a
percentage of the Reference Price set forth in the column headings of the table above), no
additional Common Shares shall be added to the Conversion Rate.

Notwithstanding the foregoing, in no event shall the total number of Common Shares issuable upon
conversion exceed an amount equal to [___]% of the applicable Conversion Rate, per $1,000 Principal
Amount of Securities, subject to adjustment in the same manner as the Conversion Rate pursuant to
Section 8.03. The Company will not issue upon conversion more than 19.9% of Common Shares
Outstanding at the time the Securities were issued, unless, as described in clause (ii) of Section
8.13, the Company obtains shareholder approval of issuances in excess of such 19.9% limitation.

     (f) Nothing in this Section 8.06 shall prevent an adjustment to the Conversion Rate pursuant
to Section 8.03 in respect of a Make-Whole Fundamental Change.

     Section 8.07. Effect of Recapitalizations, Reclassifications and Changes to the Common
Shares. (a) In the case of:

     (i) any recapitalization, reclassification or change of the Common Shares (other than
changes resulting from a subdivision or combination),

     (ii) any consolidation, merger or combination involving the Company,

     (iii) any sale, lease or other transfer to a third party of the consolidated assets of
the Company and its Subsidiaries substantially as an entirety or

     (iv) any statutory share exchange,

in each case as a result of which the Common Shares would be converted into, or exchanged for,
stock, other securities, other property or assets (including cash or any combination thereof) (any
such transaction or event, a “Merger Event”), then, at and after the effective time of such Merger
Event, the right to convert each $1,000 Principal Amount of Securities shall be changed into a
right to convert such Principal Amount of Securities into the kind and amount of shares of stock,
other securities or other property or assets (including cash or any combination thereof) that a
holder of a number of Common Shares equal to the Conversion Rate immediately prior to such Merger
Event would have owned or been entitled to receive (the “Reference Property”, with each “Unit of
Reference Property” meaning the kind and amount of Reference Property that a

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holder of one Common Share would have received in such Merger Event) upon such Merger Event and,
prior to or at the effective time of such Merger Event, the Company or the successor or purchasing
Person, as the case may be, shall execute with the Trustee a supplemental indenture (which shall
comply with the Trust Indenture Act as in force at the date of execution of such supplemental
indenture if such supplemental indenture is then required to so comply) permitted under Section
14.01(f) providing for such change in the right to convert each $1,000 Principal Amount of
Securities; provided, however, that at and after the effective time of such Merger Event (A) the
amount otherwise payable in cash upon conversion of the Securities pursuant to Section 8.02 shall
continue to be payable in cash, (B) the number of Common Shares (if the Company does not elect to
pay cash in lieu of all such Common Shares) otherwise deliverable upon conversion of the Securities
pursuant to Section 8.02 shall instead be deliverable in the amount and type of Reference Property
that a holder of that number of Common Shares would have received in such Merger Event and (C) the
Daily VWAP shall be calculated based on the value of a Unit of Reference Property.

     If, as a result of the Merger Event, each Common Share is converted into, or exchanged for,
the right to receive more than a single type of consideration (determined based in part upon any
form of shareholder election), then (i) the Reference Property into which the Securities will be
convertible shall be deemed to be the weighted average of the types and amounts of consideration
received by the holders of Common Shares that affirmatively make such an election, and (ii) the
Unit of Reference Property for purposes of the immediately preceding paragraph shall refer to the
consideration referred to in clause (i) of this paragraph attributable in respect of one Common
Share. The Company shall notify Holders of such weighted average as soon as practicable after such
determination is made.

     Such supplemental indenture described in the second immediately preceding paragraph shall
provide for adjustments that shall be as nearly equivalent as is possible to the adjustments
provided for in this Article 8. If, in the case of any Merger Event, the Reference Property
includes shares of stock, securities or other property or assets (including cash or any combination
thereof) of a Person other than the successor or purchasing corporation, as the case may be, in
such Merger Event, then such supplemental indenture shall also be executed by such other Person and
shall contain such additional provisions to protect the interests of the Holders of the Securities
as the Board of Directors shall reasonably consider necessary by reason of the foregoing, including
the provisions providing for the repurchase rights set forth in Article 7.

     (b) In the event the Company shall execute a supplemental indenture pursuant to Section
8.07(a), the Company shall promptly file with the Trustee an Officers’ Certificate briefly stating
the reasons therefor, the kind or amount of cash, securities or property or asset that will
comprise the Reference Property after any such Merger Event, any adjustment to be made with respect
thereto and that all conditions precedent have been complied with, and shall promptly mail notice
thereof to all Holders. The Company shall cause notice of the execution of such supplemental
indenture to be mailed to each Holder, at its address appearing on the Security Register provided
for in this Indenture, within 20 days after execution thereof. Failure to deliver such notice
shall not affect the legality or validity of such supplemental indenture.

70

 

     (c) The Company shall not become a party to any Merger Event unless its terms are consistent
with this Section 8.07. None of the foregoing provisions shall affect the right of a holder of
Securities to convert its Securities into cash and Common Shares, if any, as set forth in Section
8.01 and Section 8.02 prior to the effective date of such Merger Event.

     (d) The above provisions of this Section shall similarly apply to successive Merger Events.

     Section 8.08. Certain Covenants. (a) Before taking any action that would cause an increase
in the Conversion Rate that results in a corresponding reduction in the Conversion Price below the
then par value, if any, of the Common Shares issuable upon conversion of the Securities, the
Company will take all corporate action which may, in the opinion of its counsel, be necessary in
order that the Company may validly and legally issue such Common Shares at such reduced Conversion
Price.

     The Company covenants that all Common Shares issued upon conversion of Securities will be
fully paid and non-assessable by the Company and free from all taxes, liens and changes with
respect to the issue thereof.

     (b) The Company covenants that, if any Common Shares to be provided for the purpose of
conversion of Securities hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will in good faith and as expeditiously as possible secure such registration or
approval, as the case may be.

     (c) The Company covenants that if at any time the Common Shares shall be listed on any other
national securities exchange or automated quotation system the Company will, if permitted and
required by the rules of such exchange or automated quotation system, list and keep listed, so long
as the Common Shares shall be so listed on such exchange or automated quotation system, all Common
Shares issuable upon conversion of the Securities.

     Section 8.09. Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Holder to determine the Conversion Rate
or whether any facts exist which may require any adjustment of the Conversion Rate, or with respect
to the nature or extent or calculation of any such adjustment when made, or with respect to the
method employed, or herein or in any supplemental indenture provided to be employed, in making the
same. The Trustee and any other Conversion Agent shall not be accountable with respect to the
validity or value (or the kind or amount) of any Common Shares, or of any securities or property
(including cash), which may at any time be issued or delivered upon the conversion of any Security;
and the Trustee and any other Conversion Agent make no representations with respect thereto.
Neither the Trustee nor any Conversion Agent shall be responsible for any failure of the Company to
issue, transfer or deliver any Common Shares or stock certificates or other securities or property
(including cash) upon the surrender of any Security for the purpose of conversion or to comply with
any of the duties, responsibilities or covenants of the Company contained in this Article 8.
Without limiting the generality of the

71

 

foregoing, neither the Trustee nor any Conversion Agent shall be under any responsibility to
determine the correctness of any provisions contained in any supplemental indenture entered into
pursuant to Section 8.07 relating either to the kind or amount of shares of stock or securities or
property (including cash) receivable by Holders upon the conversion of their Securities after any
event referred to in such Section 8.07 or to any adjustment to be made with respect thereto, but,
subject to the provisions of Section 11.01, may accept as conclusive evidence of the correctness
of any such provisions, and shall be protected in conclusively relying upon, the Officers’
Certificate (which the Company shall be obligated to file with the Trustee prior to the execution
of any such supplemental indenture) with respect thereto.

     Section 8.10. Notice to Holders Prior to Certain Actions. In case of any:

     (a) action by the Company or one of its Subsidiaries that would require an adjustment in the
Conversion Rate pursuant to Section 8.03, Section 8.06 or Section 8.11; or

     (b) Merger Event; or

     (c) voluntary or involuntary dissolution, liquidation or winding-up of the Company or any of
its Subsidiaries;

then, in each case (unless notice of such event is otherwise required pursuant to another provision
of this Indenture), the Company shall cause to be filed with the Trustee and the Conversion Agent
(if other than the Trustee) and to be mailed to each Holder at its address appearing on the
Security Register, as promptly as possible but in any event at least 20 days prior to the
applicable date hereinafter specified, a notice stating (i) the date on which a record is to be
taken for the purpose of such action by the Company or one of its Subsidiaries or, if a record is
not to be taken, the date as of which the holders of Common Shares of record are to be determined
for the purposes of such action by the Company or one of its Subsidiaries, or (ii) the date on
which such Merger Event, dissolution, liquidation or winding-up is expected to become effective or
occur, and the date as of which it is expected that holders of Common Shares of record shall be
entitled to exchange their Common Shares for securities or other property deliverable upon such
Merger Event, dissolution, liquidation or winding-up. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of such action by the Company or one of its
Subsidiaries, Merger Event, dissolution, liquidation or winding-up.

     Section 8.11. Shareholder Rights Plans. To the extent that the Company has a rights plan in
effect upon conversion of the Securities, each Common Share, if any, issued upon such conversion
shall be entitled to receive the appropriate number of rights, if any, and the certificates
representing the Common Shares issued upon such conversion shall bear such legends, if any, in each
case as may be provided by the terms of any such shareholder rights plan, as the same may be
amended from time to time. If at the time of conversion, however, any such rights have separated
from the Common Shares in accordance with the provisions of the applicable shareholder rights plan
so that the Holders would not be entitled to receive any rights in respect of the Common Shares, if
any, issuable upon conversion of the Securities, the Conversion Rate shall be adjusted at the time
of separation as if the Company distributed to all

72

 

holders of Common Shares Distributed Property as
provided in Section 8.03(c), subject to readjustment in the event of the expiration, termination
or redemption of such rights.

     Section 8.12. Exchange in Lieu of Conversion. (a) When a Holder surrenders Securities for
conversion, the Company may direct the Conversion Agent to surrender, on or prior to the second
Business Day immediately following the applicable Conversion Date, such Securities to a financial
institution (a “Designated Institution”) designated by the Company for exchange in lieu of
conversion. In order to accept any Securities surrendered for conversion, the Designated
Institution must agree to deliver, in exchange for such Securities, all cash and Common Shares, if
any, due upon conversion as provided in Section 8.02, at the sole option of the Designated
Institution
and as is designated to the Conversion Agent by the Company. By the close of business on the
second Business Day immediately following the applicable Conversion Date, the Company will notify
the Holder surrendering Securities for conversion that the Company has directed the Designated
Institution to make an exchange in lieu of conversion and such Designated Institution shall be
required to notify the Conversion Agent whether it will deliver, upon exchange, the cash and Common
Shares, if any, due in respect of such conversion.

     (b) If the Designated Institution accepts any such Securities, it shall deliver the cash and
Common Shares, if any, as specified in Section 8.02 to the Conversion Agent, and the Conversion
Agent shall deliver such cash and Common Shares, if any, to the Holder on the third Business Day
immediately following the last Trading Day of the applicable Observation Period, which delivery
shall be deemed to satisfy the Company’s Conversion Obligation under this Article 8 with respect
to such Holder. Any Securities so exchanged by such Designated Institution shall remain
Outstanding for all purposes under this Indenture.

     (c) If the Designated Institution agrees to accept any Securities for exchange but does not
timely deliver the related consideration, or if the Designated Institution does not accept such
Securities for exchange, the Company shall convert such Securities and pay or deliver, as the case
may be, the cash and Common Shares, if any, no later than the third Business Day immediately
following the last Trading Day of the applicable Observation Period, in accordance with the
provisions of Section 8.02.

     (d) The Company’s designation of a financial institution pursuant to this Section 8.12 to
which the Securities may be submitted for exchange does not require such financial institution to
accept any Securities for exchange (unless the institution has separately made an agreement with
the Company). The Company may, but shall not be obligated to, enter into a separate agreement with
the Designated Institution that would compensate it for any such transaction.

     Section 8.13. Limit on Issuance of Common Shares upon Conversion. Notwithstanding anything
to the contrary in this Indenture, (i) subject to clause (ii) of this Section 8.13, the Company
will not issue Common Shares upon conversion of the Securities if such issuance would result in the
issuance of more than 19.9% of the Common Shares Outstanding on the date the Securities were issued
and (ii) if an event occurs that would result in an increase in the Conversion Rate by an amount in
excess of limitations imposed by any shareholder approval rules or listing standards of any
national or regional securities exchange that are applicable to the

73

 

Company, the Company will, at
its option, either obtain shareholder approval of any issuance of Common Shares upon conversion of
the Securities in excess of such limitations or deliver cash in lieu of any Common Shares otherwise
deliverable upon conversions in excess of such limitations based on the Daily VWAP of the Common
Shares on each Trading Day of the relevant Observation Period in respect of which, in lieu of
delivering Common Shares, the Company delivers cash pursuant to this Section 8.13.

ARTICLE 9

Events of Default; Remedies

     Section 9.01. Events of Default. “Event of Default,” wherever used herein, means any one of
the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

     (a) default in any payment of interest on any Securities when due and payable and such default
continues for a period of 30 days;

     (b) default in the payment of principal of any Security when due and payable (whether in cash
or securities) at the Stated Maturity, upon optional redemption, upon any required repurchase, upon
declaration of acceleration or otherwise;

     (c) failure by the Company to comply with its obligation to convert the Securities in
accordance with this Indenture upon exercise of a Holder’s conversion right;

     (d) failure by the Company to give a Fundamental Change Company Notice or notice of a
specified corporate transaction pursuant to Section 8.01(d) or Section 8.01(e), in each case when
due;

     (e) failure by the Company to comply with its obligations under Article 10;

     (f) failure by the Company for 60 days after written notice from the Trustee or the Holders of
at least 25% in Principal Amount of the Securities then outstanding has been received by the
Company to comply with any of its other agreements contained in the Securities or this Indenture;

     (g) default by the Company or any Subsidiary of the Company with respect to any mortgage,
agreement or other instrument under which there may be outstanding, or by which there may be
secured or evidenced, any indebtedness for money borrowed in excess of $50 million in the aggregate
of the Company and/or any such Subsidiary, whether such indebtedness now exists or shall hereafter
be created (i) resulting in such indebtedness becoming or being declared due and payable or (ii)
constituting a failure to pay the principal or interest of any such

74

 

debt when due and payable at
its stated maturity, upon required purchase, upon declaration of acceleration or otherwise;

     (h) a final judgment for the payment of $50 million or more (excluding any amounts covered by
insurance) rendered against the Company or any Subsidiary of the Company, which judgment is not
paid, discharged or stayed within 60 days after (i) the date on which the right to appeal thereof
has expired if no such appeal has commenced, or (ii) the date on which all rights to appeal have been
extinguished;

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

     (i) a decree or order for relief in respect of the Company or any Subsidiary of the
Company that is a “significant subsidiary” (as defined in Article 1, Rule 1-02 of Regulation
S-X under the Exchange Act) 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

     (ii) a decree or order adjudging the Company or any Subsidiary of the Company that is a
“significant subsidiary” (as defined in Article 1, Rule 1-02 of Regulation S-X under the
Exchange Act) to be insolvent, or approving a petition seeking reorganization, arrangement,
adjustment or composition of the Company or any such Subsidiary and such decree or order
shall remain unstayed and in effect for a period of 60 consecutive days; or

     (iii) a final and non-appealable order appointing a custodian, receiver, liquidator,
assignee, trustee or other similar official of the Company or any Subsidiary of the Company
that is a “significant subsidiary” (as defined in Article 1, Rule 1-02 of Regulation S-X
under the Exchange Act) of any substantial part of the property of the Company or any such
Subsidiary or ordering the winding up or liquidation of the affairs of the Company or any
such Subsidiary; or

     (j) the commencement by the Company or any Subsidiary of the Company that is a “significant
subsidiary” (as defined in Article 1, Rule 1-02 of Regulation S-X under the Exchange Act) 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
or any such Subsidiary 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 or any such
Subsidiary of a petition or answer or consent seeking reorganization, arrangement, adjustment or
composition of the Company or any such Subsidiary or relief under any applicable law, or the
consent by the Company or any such Subsidiary 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 such Subsidiary or any substantial part of the property of the Company or any
such Subsidiary or the making by the Company or any such Subsidiary of an assignment for the
benefit of creditors, or

75

 

the taking of corporate action by the Company or any such Subsidiary in
furtherance of any such action.

     Section 9.02. Acceleration of Stated Maturity; Rescission and Annulment. (a)
If an Event of Default (other than those specified in Section 9.01(i) and Section
9.01(j)) occurs and is continuing, then and in every such case the Trustee or the Holders of not
less than 25% in aggregate Principal Amount of the Outstanding Securities may declare the Principal
Amount of, and accrued and unpaid interest, if any, on, all the Outstanding Securities to be due
and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such Principal Amount
and accrued and unpaid interest, if any, shall become immediately due and payable.

     Notwithstanding the foregoing, in the case of an Event of Default specified in Section
9.01(i) or Section 9.01(j), the Principal Amount of, and accrued and unpaid interest, if any, on,
all Outstanding Securities will ipso facto automatically and immediately become due and payable
without any declaration or other act on the part of the Trustee or any Holder.

     (b) At any time after such a declaration of acceleration has been made, the Holders of a
majority in Principal Amount of the Outstanding Securities, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if:

     (i) rescission would not conflict with any judgment or decree of a court of competent
jurisdiction; and

     (ii) all existing Events of Default, other than the nonpayment of the Principal Amount
of and accrued and unpaid interest, if any, on the Securities that have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 9.13.

provided, however, that no such rescission may be made for an Event of Default in respect of (x)
the nonpayment of the Principal Amount of, or accrued and unpaid interest on, the Securities or the
nonpayment of the Fundamental Change Repurchase Price or for the failure to deliver the
consideration due upon conversion of any Securities or (y) a covenant or provision hereof which
under Article 14 cannot be modified or amended without the consent of the Holder of each
Outstanding Security affected.

     No such rescission shall affect any subsequent Event of Default or impair any right consequent
thereon.

     Section 9.03. Additional Interest. Notwithstanding anything in this Indenture or in the
Securities to the contrary, to the extent the Company elects, the sole remedy for Event of Default
relating to (a) the Company’s failure to file with the Trustee pursuant to Section 314(a)(1) of the
Trust Indenture Act any documents or reports that the Company is required to file with the
Commission pursuant to Section 13 or 15(d), or (2) the Company’s failure to comply with its
obligations as set forth in Section 5.09, shall after the occurrence of such an Event of Default

76

 

consist exclusively of the right to receive Additional Interest on the Securities at a rate equal
to 0.25% per annum of the Principal Amount of the Securities outstanding for each day during the
120-day period beginning on, and including, the occurrence of such an Event of Default during which
such Event of Default is continuing. If the Company so elects, such Additional Interest shall be
payable in the same manner and on the same dates as regular interest on the Securities. On the
121st day after such Event of Default (if the Event of Default relating to the Company’s failure to
file is not cured or waived prior to such 121st day), the Securities will be subject to
acceleration as provided in Section 9.02. In the event the
Company does not elect to pay Additional Interest following an event of Default in accordance
with this Section 9.03, the Securities shall be subject to acceleration as provided in Section
9.02.

     In order to elect to pay Additional Interest as the sole remedy during the first 120 days
after the occurrence of any Event of Default described in the immediately preceding paragraph, the
Company must notify all Holders of the Securities, the Trustee and the Paying Agent of such
election prior to the beginning of such 120-day period. Upon the failure to timely give such
notice, the Securities shall be immediately subject to acceleration as provided in Section 9.02.

     Section 9.04. Collection of Indebtedness and Suits for Enforcement by Trustee. If an Event
of Default occurs and is continuing, the Trustee may, but shall not be obligated to, pursue any
available remedy to collect the payment of the Principal Amount plus accrued but unpaid interest on
the Securities or to enforce the performance of any provision of the Securities or this Indenture.
The Trustee may maintain a proceeding even if the Trustee does not possess any of the Securities or
does not produce any of the Securities in the proceeding.

     Section 9.05. Trustee May File Proofs of Claim. In case of any judicial proceeding relative
to the Company (or any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or otherwise, to take
any and all actions authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall be authorized to
collect and receive any moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any
other amounts due the Trustee under Section 11.07.

     No provision of this Indenture shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 9.06. Application of Money Collected. Any money collected by the Trustee pursuant
to this Article 9 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 to Holders, upon presentation of the

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Securities and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 11.07; and

     SECOND: To the payment of the amounts then due and unpaid on the Securities for the
Principal Amount, Redemption Price, Fundamental Change Repurchase Price or interest, as the
case may be, in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts due and
payable on such Securities.

     Section 9.07. Limitation on Suits. No Holder of any Security 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 (other than in the case of
an Event of Default specified in Section 9.01(a), Section 9.01(b) or Section 9.01(c)), unless:

     (i) such Holder has previously given written notice to the Trustee that an Event of
Default is continuing;

     (ii) Holders of at least 25% in Principal Amount of the Outstanding Securities shall
have requested the Trustee to institute proceedings in respect of such Event of Default;

     (iii) such Holders have offered to the Trustee security or indemnity reasonably
satisfactory to it against any loss, liability or expense to be incurred in compliance with
such request;

     (iv) the Trustee shall not have complied with such request within 60 days after the
request and the offer of security or indemnity; and

     (v) the Holders of a majority in Principal Amount of the Outstanding Securities shall
not have given the Trustee a direction that in the opinion of the Trustee is inconsistent
with such request within such 60-day period;

it being understood and intended that no one or more Holders shall have any right in any manner
whatever by virtue of, or by availing itself of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all the Holders (it being
understood that the Trustee does not have an affirmative duty to ascertain whether or not such
actions or forbearances are unduly prejudicial to such Holders).

     Section 9.08. Unconditional Right of Holders to Receive Payment and Consideration Due Upon
Conversion. Notwithstanding any other provision of this Indenture, each Holder shall have the
right to receive payment or delivery, as the case may be, of the Principal Amount (including the
Redemption Price and Fundamental Change Repurchase Price, if applicable) of,

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accrued and unpaid
interest, if any, on, and the consideration due upon conversion of, in respect of the Securities
held by such Holder, on or after the respective due dates expressed or provided for in this
Indenture, or to institute suit for the enforcement of any such payment or delivery, as
the case may be, and such right to receive such payment or delivery, as the case may be, on or
after such respective dates shall not be impaired or affected adversely without the consent of such
Holder.

     Section 9.09. Restoration of Rights and Remedies. If the Trustee or any Holder has
instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding
has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee
or to such Holder, then and in every such case, subject to any determination in such proceeding,
the Company, the Trustee and the Holders shall be restored severally and respectively to their
former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders
shall continue as though no such proceeding had been instituted.

     Section 9.10. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 2.06, no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

     Section 9.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Security 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 9 or by law to the Trustee or
to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

     Section 9.12. Control by Holders. The Holders of a majority in Principal Amount of the
Outstanding Securities shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or power conferred on
the Trustee; provided that:

     (i) such direction shall not be in conflict with any rule of law or with this
Indenture;

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

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     (iii) the Trustee may refuse to follow any direction that the Trustee determines is
unduly prejudicial to the rights of any other Holder or that would expose the Trustee to
personal liability.

     Section 9.13. Waiver of Past Defaults. The Holders of a majority in Principal Amount of the
Outstanding Securities may on behalf of the Holders of all the Securities waive any past Default
hereunder and its consequences, except a Default:

     (i) described in Section 9.01(a), Section 9.01(b) or Section 9.01(c); or

     (ii) in respect of a covenant or provision hereof which under Article 14 cannot be
modified or amended without the consent of the Holder of each Outstanding Security 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 9.14. Undertaking for Costs. In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or omitted by it as
Trustee, in either case in respect of the Securities, a court may require any party litigant in
such suit to file an undertaking to pay the costs of the suit, and the court may assess reasonable
costs, including reasonable attorney’s fees and expenses, against any party litigant in the suit
having due regard to the merits and good faith of the claims or defenses made by the party
litigant; but the provisions of this Section 9.14 shall not apply to any suit instituted by the
Company, 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 the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of the Principal Amount
on any Security on or after the Stated Maturity of such Security, the Redemption Price or the
Fundamental Change Repurchase Price.

ARTICLE 10

Consolidation, Merger, Sale, Conveyance, Transfer Or Lease

     Section 10.01. Company May Consolidate, etc., Only on Certain Terms. The Company shall not
consolidate with or merge with or into, or sell, convey, transfer or lease all or substantially all
of its properties and assets to another Person, unless:

     (a) either (i) the Company is the resulting, surviving or transferee Person or (ii) the Person
(if not the Company) formed by such consolidation or into which the Company is merged or the Person
which acquires by sale, conveyance or transfer, or which leases, all or substantially all of the
properties and assets of the Company (the “Surviving Entity”), (1) is a corporation organized and
validly existing under the laws of the United States of America, any State thereof

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or the District
of Columbia and (2) the Surviving Entity expressly assumes, by an indenture supplemental hereto,
all obligations of the Company under the Securities and this Indenture;

     (b) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under this Indenture; and

     (c) if a supplemental indenture is required in connection with such transaction, the Company
or the Surviving Entity has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, sale, conveyance, transfer or lease and such
supplemental indenture comply with this Article 10 and Article 14, respectively.

     For purposes of this Section 10.01, the sale, conveyance, transfer or lease of all or
substantially all of the properties and assets of one or more Subsidiaries of the Company to
another Person, which properties and assets, if held by the Company instead of such Subsidiaries,
would constitute all or substantially all of the properties and assets of the Company on a
consolidated basis, shall be deemed to be the sale, conveyance, transfer or lease of all or
substantially all of the properties and assets of the Company to another Person. For the avoidance
of doubt, for purposes of this Section 10.01, in no event will a strategic transaction or other
divestiture of the Company’s Information Management Business be considered the sale, conveyance,
transfer or lease of all or substantially all of the Company’s properties and assets.

     Section 10.02. Successor Substituted. In case of any such consolidation, merger, sale,
conveyance, transfer or lease in which the Company is not the Surviving Entity and upon the
assumption by the Surviving Entity, by supplemental indenture, executed and delivered to the
Trustee, of the due and punctual payment of the principal of and interest on all of the Securities,
and the due and punctual performance and observance of all of the covenants and conditions of this
Indenture to be performed or satisfied by the Company, such Surviving Entity 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 it had been named herein as the party of this first part, and, except in
the case of a lease of all or substantially all of the Company’s properties and assets, the Company
shall be discharged from its obligations under the Securities and this Indenture. Such Surviving
Entity thereupon may cause to be signed, and may issue either in its own name or in the name of the
Company any or all of the Securities, issuable hereunder that theretofore shall not have been
signed by the Company and delivered to the Trustee; and, upon the order of such Surviving Entity
instead of the Company and subject to all the terms, conditions and limitations in this Indenture
prescribed, the Trustee shall authenticate and shall deliver, or cause to be authenticated and
delivered, any Securities that previously shall have been signed and delivered by the officers of
the Company to the Trustee for authentication, and any Securities that such Surviving Entity shall
cause to be signed and delivered to the Trustee for that purpose. All the Securities so issued
shall in all respects have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture as though all of
such Securities had been issued at the date of the execution hereof. In the event of any such
consolidation, merger, sale, conveyance or transfer, upon compliance with this Article 10 the
Person named as the “Company” in the first paragraph of this Indenture or any successor that shall
thereafter have become such in the manner prescribed in this Article 10 may be

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dissolved, wound up
and liquidated at any time thereafter and such
Person shall be discharged from its liabilities as obligor and maker of the Securities and
from its obligations under this Indenture.

ARTICLE 11

The Trustee

     Section 11.01. Certain Duties and Responsibilities. The duties and responsibilities of the
Trustee shall be as provided by the Trust Indenture Act. Except during the continuance of an Event
of Default of which a Responsible Officer of the Trustee has actual knowledge, 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. In case an Event of Default of which a Responsible Officer of the Trustee has actual
knowledge with respect to the Securities has occurred (which has not been cured or waived), the
Trustee shall exercise the rights and powers vested in it by this Indenture, and use the same
degree of care and skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person’s own affairs. Notwithstanding the foregoing, 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. Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section 11.01.

     Section 11.02. Notice of Defaults. If a Default hereunder occurs and is continuing and is
known to the Trustee, the Trustee shall give the Holders notice thereof within 90 days after the
occurrence thereof; provided that (except in the case of any Default in the payment of Principal
Amount (including the Redemption Price and Fundamental Change Repurchase Price, if applicable) of
or interest on any of the Securities or a Default in the payment or delivery of the consideration
due upon conversion), the Trustee shall be protected in withholding such notice if and so long as a
committee of trust officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of Securities.

     Section 11.03. Certain Rights of Trustee. Subject to the provisions of Section 11.01:

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

     (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order and any resolution of the Board of Directors of the Company
may be sufficiently evidenced by a Board Resolution;

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

     (d) the Trustee may consult with counsel of its selection and the 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;

     (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture or to institute, conduct or defend any litigation hereunder or in relation
hereto at the request or direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee security or indemnity reasonably satisfactory to it
against the costs, expenses and liabilities which might be incurred by it in compliance with such
request or direction;

     (f) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit; and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

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

     (h) the Trustee shall not be charged with knowledge or required to take notice of any Default
or Event of Default with respect to the Securities unless either (i) a Responsible Officer shall
have actual knowledge of such Default or Event of Default or (ii) written notice of such Default or
Event of Default shall have been given to a Responsible Officer of the Trustee by the Company or
any other obligor on such Securities or by any Holder of such Securities;

     (i) the Trustee shall not be liable in its individual capacity for any action taken, suffered
or omitted by it in good faith and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

     (j) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian,
director, officer, employee and other Person employed to act hereunder;

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     (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded;

     (l) the permissive rights of the Trustee to take certain actions under or perform any
discretionary act enumerated in this Indenture shall not be construed as a duty unless so specified
herein, and the Trustee shall not be answerable for other than its negligence or willful misconduct
in the performance of such action or act; and

     (m) the Trustee shall not be liable in its individual capacity with respect to any action
taken, suffered or omitted to be taken by it in good faith in accordance with this Indenture or at
the direction of the Holders of a majority in aggregate 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 or omitting to exercise any trust or power conferred upon
the Trustee, under this Indenture.

     Section 11.04. Not Responsible for Recitals. The recitals contained herein and in the
Securities, except the Trustee’s certificates of authentication, shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes
no representations as to the validity, sufficiency or priority of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of
Securities or the proceeds thereof. Except with respect to the authentication of Securities
pursuant to Section 2.03, the Trustee shall not be responsible for the legality or the validity of
this Indenture or the Securities issued or intended to be issued hereunder.

     Section 11.05. May Hold Securities. The Trustee, any Paying Agent, any Security Registrar
or any other agent of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Section 11.08 and 11.13, may otherwise deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar
or such other agent.

     Section 11.06. Money Held in Trust. Subject to the provisions of Section 4.02 and Section
5.04, all monies and properties received by the Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received. Money held by the
Trustee in trust hereunder need not be segregated from other funds except to the extent required by
law. The Trustee shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed in writing with the Company.

     Section 11.07. Compensation, Reimbursement; Indemnification. The Company agrees:

     (i) to pay to the Trustee from time to time such compensation for all services rendered
by it hereunder as the Company and the Trustee shall from time to time agree in

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writing (which compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);

     (ii) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or willful
misconduct; and

     (iii) to indemnify the Trustee and any predecessor Trustee for, and to hold it harmless
against, any and all loss, liability, damage, claim or expense including taxes (other than
taxes based upon, measured by or determined by the income of the Trustee) incurred without
negligence or willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this trust, including the reasonable costs and expenses of
defending itself against any claim (whether assessed by the Company, by any Holder or any
other Person) or liability in connection with the exercise or performance of any of its
powers or duties hereunder.

     Notwithstanding any other provision of this Indenture to the contrary, in no event shall the
Trustee be liable for special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, lost profits) even if the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action.

     The obligations of the Company under this Section 11.07 shall survive the resignation or
removal of the Trustee and the satisfaction and discharge of this Indenture. To secure the
Company’s payment obligations in this Section 11.07, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee, except that held in trust to
pay principal on the Securities. Such lien shall survive the resignation or removal of the Trustee
and the satisfaction and discharge of this Indenture. When the Trustee incurs expenses or renders
services after a Default or an Event of Default specified in Section 9.01(i) and Section 9.01(j)
occurs, the expenses and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under U.S. Code, Title 11
or any other similar foreign, federal or state law for the relief of debtors.

     Section 11.08. Disqualification; Conflicting Interests. If the Trustee has or shall acquire
a conflicting interest within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.

     Section 11.09. Corporate Trustee Required; Eligibility. There shall at all times be a
Trustee hereunder which shall be a Person that is eligible pursuant to the Trust Indenture Act to
act as such and has, or whose parent banking company has, a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least annually, pursuant to
law or to the requirements of said supervising or examining authority, then for the purposes
of

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this Section 11.09, the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 11.09, it shall resign immediately in the manner and with the effect hereinafter specified
in this Article 11.

     Section 11.10. Resignation and Removal; Appointment of Successor. (a)
No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article 11 shall become effective until the acceptance of appointment by the
successor Trustee under Section 11.11.

     (b) The Trustee may resign at any time by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction at the expense of the Company for the appointment of a successor
Trustee.

     (c) The Trustee may be removed at any time by Act of the Holders of majority in Principal
Amount of the Outstanding Securities, delivered to the Trustee and to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within
30 days after the notice of removal, the Trustee being removed may petition, at the expense of the
Company, any court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities.

     (d) If at any time:

     (i) the Trustee shall fail to comply with Section 11.08 after written request therefor
by the Company or by any Holder who has been a bona fide Holder of a Security for at least
six months, or

     (ii) the Trustee shall cease to be eligible under Section 11.09 and shall fail to
resign after written request therefor by the Company or by any such Holder, or

     (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent, or

     (iv) a receiver of the Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,

then, in any such case, (A) the Company by a Company Order may remove the
Trustee, or (B) subject to Section 9.14, any Holder who has been a bona
fide Holder of a Security for at least six months may, on behalf of such Holder
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor Trustee.

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     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Company Order, shall promptly
appoint a successor Trustee. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of
a majority in Principal Amount of the Outstanding Securities delivered to the Company and the
retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment, become the successor Trustee and supersede the successor Trustee appointed by the
Company. If no successor Trustee shall have been so appointed by the Company or the Holders and
accepted appointment in the manner hereinafter provided, any Holder who has been a bona fide Holder
of a Security for at least six months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee.

     (f) The Company shall give written notice of each resignation and each removal of the Trustee
and each appointment of a successor Trustee to all Holders in the manner provided in Section 1.06.
Each notice shall include the name of the successor Trustee and the address of its Corporate Trust
Office.

     Section 11.11. Acceptance of Appointment by Successor. Every successor Trustee appointed
hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring
Trustee; but, on request of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such successor Trustee
all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring Trustee hereunder.
Upon request of any such successor Trustee, the Company shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.

     No successor Trustee shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article 11.

     Section 11.12. Merger, Conversion, Consolidation or Succession to Business. Any Person into
which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate trust business of
the Trustee by sale or otherwise, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article 11, 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.

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     Section 11.13. Preferential Collection of Claims against the Company. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon the Securities),
the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection
of claims against the Company (or any such other obligor).

ARTICLE 12

Holders’ Lists And Reports By Trustee

     Section 12.01. Company to Furnish Trustee Names and Addresses of Holders. The Company will
furnish or cause to be furnished to the Trustee:

     (i) semiannually, not more than 15 days after each Record Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the Holders as of such
Record Date; and

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

excluding from any such list names and addresses received by the Trustee in its capacity as
Security Registrar; provided, however, that no such list need be furnished so long as the Trustee
is acting as Security Registrar.

     Section 12.02. Preservation of Information; Communications to Holders. (a)
The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 12.01 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 12.01
upon receipt of a new list so furnished.

     (b) The rights of Holders to communicate with other Holders with respect to their rights under
this Indenture or under the Securities, and the corresponding rights and duties of the Trustee,
shall be as provided by the Trust Indenture Act.

     (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

     Section 12.03. Reports By Trustee. (a) The Trustee shall transmit
to Holders such reports concerning the Trustee and its actions under this Indenture as may be
required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant
thereto. Reports so required to be transmitted at stated intervals of not more than 12 months
shall be transmitted no

88

 

later than September 15 in each calendar year, commencing on September 15,
2010. Each such report shall be dated as of a date not more than 60 days prior to the date of
transmission.

     (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange, if any, upon which the Securities are listed, with the
Commission and with the Company. The Company will promptly notify the Trustee in writing when the
Securities are listed on any stock exchange or of any delisting thereof.

ARTICLE 13

Satisfaction And Discharge

     Section 13.01. Satisfaction and Discharge of Indenture. When (a) the Company shall deliver
to the Registrar for cancellation all Securities theretofore authenticated (other than any
Securities that have been destroyed, lost or stolen and in lieu of or in substitution for which
other Securities shall have been authenticated and delivered) and not theretofore canceled, or (b)
all the Securities not theretofore canceled or delivered to the Trustee for cancellation shall have
become due and payable (whether at Stated Maturity, on any Redemption Date or Fundamental Change
Repurchase Date, upon conversion or otherwise) and the Company shall deposit with the Trustee, in
trust, or deliver to the Holders, as applicable, cash or cash and Common Shares, if any, sufficient
to pay all amounts due (and Common Shares deliverable following conversion, if applicable) on all
of such Securities (other than any Securities that shall have been destroyed, lost or stolen and in
lieu of or in substitution for which other Securities shall have been authenticated and delivered)
not theretofore canceled or delivered to the Trustee for cancellation, including principal and
interest due, accompanied, except in the event the Securities are due and payable solely in cash at
the Stated Maturity of the Securities or upon an earlier Redemption Date or Fundamental Change
Repurchase Date, by a verification report as to the sufficiency of the deposited amount from an
independent certified accountant or other financial professional reasonably satisfactory to the
Trustee, and if the Company shall also pay or cause to be paid all other sums payable hereunder by
the Company, then this Indenture shall cease to be of further effect (except as to (i) rights
hereunder of Holders of the Securities to receive all amounts owing upon the Securities and the
other rights, duties and obligations of Holders of the Securities, as beneficiaries hereof with
respect to the amounts, if any, so deposited with the Trustee and (ii) the rights, obligations and
immunities of the Trustee hereunder), and the Trustee, on written demand of the Company accompanied
by an Officers’ Certificate and an Opinion of Counsel as required by Section 1.02 and at the cost
and expense of the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture; the Company, however, hereby agrees to reimburse the Trustee for any
costs or expenses thereafter reasonably and properly incurred by the Trustee, including the fees
and expenses of its counsel, and to
compensate the Trustee for any services thereafter reasonably and properly rendered by the
Trustee in connection with this Indenture or the Securities.

     Section 13.02. Deposited Monies and Common Shares, if any, to Be Held in Trust by Trustee.
Subject to Section 5.04, all monies and Common Shares, if any, deposited with the Trustee pursuant
to Section 13.01 shall be held in trust for the sole benefit of the Holders of the

89

 

Securities, and
such monies and Common Shares shall be applied by the Trustee to the payment, either directly or
through any Paying Agent (including the Company or any Subsidiary of the Company acting as Paying
Agent), to the Holders of the particular Securities for the payment, settlement or redemption of
which such monies or Common Shares have been deposited with the Trustee, of all sums or amounts due
and to become due thereon for principal and interest, if any.

     Section 13.03. Reinstatement. If
the Trustee or the Paying Agent is unable to apply any money or Common Shares in accordance with
Section 13.02 by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 13.01 until such time as the Trustee or the Paying Agent is permitted to apply
all such money and Common Shares in accordance with Section 13.02; provided, however, that if the
Company makes any payment of interest on, principal of or payment or delivery in respect of any
Security following the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money or Common Shares,
if any, held by the Trustee or Paying Agent.

ARTICLE 14

Supplemental Indentures

     Section 14.01. Supplemental Indentures Without Consent of Holders. Without the consent of
any Holders, the Company, when authorized by a Board Resolution, and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory
to the Trustee, for any of the following purposes:

     (a) to cure any ambiguity, omission, defect or inconsistency that does not materially
adversely affect Holders of the Securities;

     (b) to provide for the assumption by a Surviving Entity of the obligations of the Company
under this Indenture pursuant to Article 10;

     (c) to add guarantees with respect to the Securities;

     (d) to secure the Securities;

     (e) to add to the Company’s covenants for the benefit of the Holders or surrender any right or
power conferred upon the Company;

     (f) to make any change that does not materially adversely affect the rights of any Holder;

     (g) to comply with any requirement of the Commission in connection with the qualification of
this Indenture under the Trust Indenture Act; or

90

 

     (h) to conform the provisions of this Indenture or the Securities to the “Description of the
2029 Debentures” section of the Prospectus.

     Section 14.02. Supplemental Indentures with Consent of Holders. With the consent of the
Holders of at least a majority in Principal Amount of the Securities then Outstanding, by Act of
said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders under this Indenture;
provided, however, that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

     (i) reduce the amount of Securities whose Holders must consent to an amendment or
waiver;

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

     (iii) reduce the Principal Amount of or extend the Stated Maturity of any Security;

     (iv) make any change that impairs or adversely affects the conversion rights or
Conversion Rate of any Securities;

     (v) reduce the Redemption Price or the Fundamental Change Repurchase Price of any
Security or amend or modify in any manner adverse to the Holders of Securities the Company’s
obligation to make such payments, whether through an amendment or waiver of provisions in
the covenants, definitions or otherwise;

     (vi) make any Security payable in money other than that stated in the Security;

     (vii) impair the right of any Holder to receive payment of the Principal Amount of and
interest on such Holder’s Securities on or after the due dates therefor or to institute suit
for the enforcement of any payment on or with respect to such Holder’s Securities; or

     (viii) make any changes to the subordination provisions of this Indenture if such
change would adversely affect the rights of Holders.

     It shall not be necessary for any Act of Holders under this Section 14.02 to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Section 14.03. Execution of Supplemental Indentures. In executing, or accepting the
additional trusts created by, any supplemental indenture permitted by this Article 14 or the
modifications thereby of the trusts created by this Indenture, the Trustee shall receive, and
(subject to Section 11.01) shall be fully protected in conclusively relying upon, in addition to
the

91

 

documents required by Section 1.02, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. Subject to the preceding
sentence, the Trustee shall sign such supplemental indenture if the same does not adversely affect
the Trustee’s own rights, duties or immunities under this Indenture or otherwise. The Trustee may,
but shall not be obligated to, enter into any such supplemental indenture that adversely affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

     Section 14.04. Notice of Supplemental Indenture. After an amendment or supplement under
this Article 14 becomes effective, the Company shall mail to the Holders a notice briefly
describing such amendment or supplement. However, the failure to give such notice to all the
Holders, or any defect in the notice, shall not impair or affect the validity of the amendment or
supplement.

     Section 14.05. Effect of Supplemental Indentures. Upon the execution of any supplemental
indenture under this Article 14, this Indenture shall be modified in accordance therewith, and
such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.

     Section 14.06. Conformity with Trust Indenture Act. Every supplemental indenture executed
pursuant to this Article 14 shall conform to the requirements of the Trust Indenture Act.

     Section 14.07. Reference in Securities to Supplemental Indentures. Securities authenticated
and delivered after the execution of any supplemental indenture pursuant to this Article 14 shall
bear a notation in form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding
Securities.

92

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.

	 	 	 	 	 
	 	CONVERGYS CORPORATION

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

[Trustee Signature Follows]

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

     [INCLUDE IF SECURITY IS A GLOBAL SECURITY] [THIS SECURITY IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED,
AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON
OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
THE INDENTURE.

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”), A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS
MUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

     [INCLUDE FOR ALL SECURITIES] [THIS SECURITY WAS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED
STATES FEDERAL INCOME TAX PURPOSES. PURSUANT TO SECTION 5.12 OF THE INDENTURE, THE COMPANY
AGREES, AND BY ACCEPTANCE OF A BENEFICIAL OWNERSHIP INTEREST IN THE SECURITIES EACH BENEFICIAL
OWNER OF A SECURITY AGREES, FOR UNITED STATES FEDERAL INCOME TAX PURPOSES, (I) TO TREAT THE
SECURITIES AS INDEBTEDNESS OF THE COMPANY SUBJECT TO UNITED STATES TREASURY REGULATIONS SECTION
1.1275-4 (THE “CONTINGENT DEBT REGULATIONS”) AND, FOR PURPOSES OF THE CONTINGENT DEBT REGULATIONS,
TO TREAT THE FAIR MARKET VALUE OF ANY COMMON STOCK RECEIVED UPON CONVERSION AS A CONTINGENT
PAYMENT, (II) TO BE BOUND BY THE COMPANY’S DETERMINATION OF THE “COMPARABLE YIELD” AND “PROJECTED
PAYMENT SCHEDULE,” WITHIN THE MEANING OF THE CONTINGENT DEBT REGULATIONS, WITH RESPECT TO SUCH
HOLDER’S SECURITIES AND (III) TO USE SUCH “COMPARABLE YIELD” AND “PROJECTED PAYMENT SCHEDULE” IN
DETERMINING INTEREST ACCRUALS WITH RESPECT TO THE SECURITIES AND ADJUSTMENTS THERETO. [A HOLDER OF
SECURITIES MAY OBTAIN THE ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND THE PROJECTED PAYMENT
SCHEDULE BY SUBMITTING A WRITTEN REQUEST FOR SUCH INFORMATION TO: CONVERGYS CORPORATION, 201 EAST
FOURTH STREET,

 

 

CINCINNATI, OH 45202, ATTENTION: CORPORATE SECRETARY, WITH A COPY TO:
CONVERGYS CORPORATION, 201 EAST FOURTH STREET, CINCINNATI, OH 45202, ATTENTION:
TREASURER.]]1

 

			
	1	 	OID legend not required for publicly traded notes, though a Form 8281 is.

2

 

CONVERGYS CORPORATION

5.75% Junior Subordinated Convertible Debentures due 2029

			
	 	 	 
	No. ___
	 	Initially U.S. $                                        

CUSIP No. [_______]

     Convergys Corporation, a corporation duly organized and validly existing under the laws of the
State of Ohio (the “Company,” which term includes any successor corporation under the Indenture
referred to on the reverse hereof), for value received hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of                      DOLLARS ($                    ) (or such lesser amount
principal amount as shall be set forth on the “Schedule of Exchanges of Securities” in Schedule A
hereto) on September 15, 2029, and interest hereon as set forth below.

     Reference is made to the further provisions of this Security set forth on the reverse hereof,
including, without limitation, provisions giving the Company the right to redeem this Security
under certain circumstances and provisions giving the Holder the right to convert this Security
into cash and Common Shares, if any, and to require the Company to repurchase this Security upon
certain events, in each case, on the terms and subject to the limitations referred to on the
reverse hereof and as more fully specified in the Indenture (as defined on the reverse of this
Security). Such further provisions shall for all purposes have the same effect as though fully set
forth at this place. Capitalized terms used but not defined herein shall have such meanings as are
ascribed to such terms in the Indenture.

     This Security shall be deemed to be a contract made under the laws of the State of New York,
and, for all purposes, this Security, and any claim, controversy or dispute arising under or
related to this Security, shall be construed in accordance with and governed by the laws of the
State of New York (without regard to the conflicts of laws provisions thereof).

     In the case of any conflict between this Security and the Indenture, the provisions of the
Indenture shall control.

     This Security shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.

[Remainder of page intentionally left blank]

3

 

     IN WITNESS WHEREOF, CONVERGYS CORPORATION has caused this instrument to be duly executed.

     Dated:                     

	 	 	 	 	 
	 	CONVERGYS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

4

 

	 	 	 	 	 

CERTIFICATE OF AUTHENTICATION

     This is one of the Securities referred to in the within-mentioned Indenture.

     Dated:                     

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

5

 

	 	 	 	 	 

[FORM OF REVERSE OF SECURITY]

CONVERGYS CORPORATION

5.75% Junior Subordinated Convertible Debentures due 2029

     This Security is one of a duly authorized issue of Securities of the Company, designated as
its 5.75% Junior Subordinated Convertible Debentures due 2029 (the “Securities”), all issued or to
be issued under and pursuant to an Indenture dated as of [October ___], 2009 (the “Indenture”),
between the Company and U.S. Bank National Association (the “Trustee”), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights,
limitations, obligations, duties and immunities thereunder of the Trustee, the Company and the
Holders of the Securities.

     Regular Interest shall accrue on the Securities from the date of issue, or from the most
recent date on which interest has been paid or duly provided for, at a rate of 5.75% per annum
until the Principal thereof is paid or made available for payment. Regular Interest shall be
payable by the Company semiannually in arrears on each Interest Payment Date to the Holder in whose
name any Security is registered at the close of business on the corresponding Record Date. In
addition to Regular Interest, beginning with the semiannual interest period commencing on September
15, 2019, Contingent Interest on the Securities shall accrue during any semiannual interest period
where the average Trading Price of the Securities for the 10 Trading Days immediately preceding the
first day of such semiannual period is greater than or equal to $1,500 per $1,000 Principal Amount
of Securities, in which case such Contingent Interest payable on each $1,000 Principal Amount of
Securities for such semiannual period shall be equal to 0.75% per annum of such average Trading
Price.

     The Securities are unsecured junior obligations of the Company subordinated in right of
payment to the Company’s existing and future Senior Debt and effectively subordinated in right of
payment to all indebtedness and other liabilities of the Company’s Subsidiaries.

     No sinking fund is provided for the Securities. As provided in and subject to the provisions
of the Indenture, the Securities may be redeemed, in whole or in part, at the option of the Company
(i) on or prior to September 15, 2010, if a Tax Triggering Event has occurred and (ii) on or after
September 15, 2019, if the Last Reported Sale Price of the Common Shares has been at least 150% of
the applicable Conversion Price for at least 20 Trading Days (whether or not consecutive) during
the 30 consecutive Trading Day period immediately preceding the date on which the Company provides
the relevant Redemption Notice, in each case at the Redemption Price set forth in the Indenture.

     As provided in and subject to the provisions of the Indenture, upon the occurrence of a
Fundamental Change, the Holder has the right, at such Holder’s option, to require the Company to
repurchase all of such Holder’s Securities or any portion thereof (in principal amounts of

6

 

$1,000 or integral multiples thereof) on the Fundamental Change Repurchase Date at a price
equal to the Fundamental Change Repurchase Price.

     As provided in and subject to the provisions of the Indenture, (i) prior to the close of
business on the Business Day immediately preceding September 15, 2028, only upon the satisfaction
of the occurrence of the conditions described in clauses (a) through (e) of Section 8.01 of the
Indenture and (ii) on or after September 15, 2028, without regard to the conditions described in
clauses (a) through (e) of Section 8.01, each Holder shall have the right, at such Holder’s
option, at any time following the Issue Date of this Security through the close of business on the
Business Day immediately preceding the Stated Maturity, subject to Section 8.02(d), to convert the
Principal Amount of this Security or a portion thereof that is $1,000 or an integral multiple
thereof, into cash and Common Shares (subject to the Company’s right to pay cash in respect of all
or a portion of such shares in accordance with Section 8.02(b)), if any, at the applicable
Conversion Rate specified in the Indenture, as adjusted from time to time as provided in the
Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities to be effected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in Principal Amount of the Securities at the time Outstanding.
The Indenture also contains provisions permitting the Holders of specified percentages in
Principal Amount of the Securities at the time Outstanding, on behalf of the Holders of all
Securities, to waive compliance by the Company with certain provisions of the Indenture and certain
past Defaults under the Indenture and their consequences. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

     As provided in and subject to the provisions of the Indenture, in case an Event of Default, as
defined in the Indenture, shall have occurred and be continuing, the principal of and interest on
all Securities may be declared due and payable, by either the Trustee or Holders of not less than
25% in aggregate Principal Amount of Securities then Outstanding, and upon said declaration shall
become due and payable, in the manner, with the effect and subject to the conditions provided in
the Indenture.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the Principal Amount (including the Redemption Price and Fundamental Change Repurchase if
applicable) of, interest on and the consideration due upon conversion of, this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

     No service charge shall be made for any registration of transfer or exchange of this Security,
but the Company and the Security Registrar may require payment of a sum sufficient to cover any
transfer tax or other similar governmental charge that may be imposed in connection

7

 

with any registration of transfer or exchange of this Security, other than exchanges pursuant
to Section 2.04 of the Indenture not involving any transfer.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and the Security Registrar and any agent of the Company or the Trustee may treat the Person
in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by
notice to the contrary.

     This Security, and any claim, controversy or dispute arising under or related to this
Security, shall be governed by, and construed in accordance with, the laws of the State of New
York (without regard to the conflicts of laws provisions thereof that would result in the
application of any law other than the law of the State of New York).

     All terms used in this Security that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

8

 

ABBREVIATIONS

The following abbreviations, when used in the inscription of the face of this Security, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT	 	 
	 

	 	 	 	Custodian
	 

	 	 

(Cust)
	 	 
	 
	 	 	 	 
	TEN ENT — as tenants by the entireties
	 	 	 	 
	 

	 	 

(Minor)
	 	 
	 
	 	 	 	 
	JT TEN — as joint tenants with right of
	 	 	 	 
	Survivorship and not as tenants in common	 	Uniform Gifts to Minors Act                     (State)

Additional abbreviations may also be used though not in the above list.

9

 

SCHEDULE A

SCHEDULE OF EXCHANGES OF SECURITIES

CONVERGYS CORPORATION

5.75% Junior Subordinated Convertible Debentures due 2029

     The initial Principal Amount of this Global Security is                      DOLLARS ($[                    ]). The
following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	Amount of	 	 	Principal Amount	 	 	Signature of	 
	 	 	decrease in	 	 	increase in	 	 	of this Global	 	 	authorized	 
	 	 	Principal Amount	 	 	Principal Amount	 	 	Security following	 	 	signatory of	 
	 	 	of this Global	 	 	of this Global	 	 	such decrease or	 	 	Trustee or	 
	Date of Exchange	 	Security	 	 	Security	 	 	increase	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

A-1

 

ATTACHMENT 1

[FORM OF NOTICE OF CONVERSION]

To: Convergys Corporation

     The undersigned registered owner of this Security hereby exercises the option to convert this
Security, or the portion hereof (that is $1,000 Principal Amount or an integral multiple thereof)
below designated, into cash and Common Shares, if any, in accordance with the terms of the
Indenture referred to in this Security, and directs that any cash payable and any Common Shares
issuable and deliverable upon such conversion, together with any cash for any fractional shares,
and any Securities representing any unconverted Principal Amount hereof, be issued and delivered to
the registered Holder hereof unless a different name has been indicated below. If any Common
Shares or any portion of this Security not converted are to be issued in the name of a Person other
than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto in
accordance with Section 8.02(h) of the Indenture. Any amount required to be paid by the
undersigned on account of interest accompanies this Security.

	 	 	 	 	 
	Dated:                                         

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

Signature(s)
	 	 
	 
	 	 	 	 
	 

Signature Guarantee

	 	 
	 	 
	 
	 	 	 	 
	Signature(s) must be guaranteed
by an eligible Guarantor Institution
(banks, stock brokers, savings and
loan associations and credit unions)
with membership in an approved
signature guarantee medallion program
pursuant to Securities and Exchange
Commission Rule 17Ad-15 if Common
Shares are to be issued, or Securities
to be delivered, other than to and in
the name of the registered holder.
	 	 	 	 
	 
	 	 	 	 
	Fill in for registration of shares if
to be issued, and Securities if to
be delivered, other than to and in the
name of the registered holder:
	 	 	 	 

1

 

	 	 	 	 	 
	 

(Name)

	 	 
	 	 
	 
	 	 	 	 
	 

(Street Address)

	 	 
	 	 
	 
	 	 	 	 
	 

(City, State and Zip Code)

	 	 
	 	 
	Please print name and address
	 	 	 	 
	 
	 	 	 	 
	 	 	Principal Amount to be converted (if less than all):
$______,000
	 
	 	 	 	 
	 	 	NOTICE: The above signature(s) of the Holder(s) hereof must
correspond with the name as written upon the face of the
Security in every particular without alteration or
enlargement or any change whatever.
	 
	 	 	 	 
	 

	 	 

	 	 
	 	 	Social Security or Other Taxpayer

Identification Number

2

 

ATTACHMENT 2

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

To: Convergys Corporation

     The undersigned registered owner of this Security hereby acknowledges receipt of a notice from
Convergys Corporation (the “Company”) as to the occurrence of a Fundamental Change with respect to
the Company and specifying the Fundamental Change Repurchase Date and requests and instructs the
Company to pay to the registered holder hereof in accordance with the applicable provisions of the
Indenture referred to in this Security (1) the entire Principal Amount of this Security, or the
portion thereof (that is $1,000 Principal Amount or an integral multiple thereof) below designated,
and (2) if such Fundamental Change Repurchase Date does not fall during the period after a Record
Date and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, if
any, thereon to, but excluding, such Fundamental Change Repurchase Date.

     In the case of Physical Securities, the certificate numbers of the Securities to be purchased
are as set forth below:

Dated:                                         

	 	 	 	 	 
	 

	 	 

Signature(s)
	 	 
	 
	 	 	 	 
	 

	 	 

Social Security or Other Taxpayer
	 	 
	 

	 	Identification Number	 	 
	 
	 	 	 	 
	 

	 	Principal amount to be repaid (if less than all):	 	 
	 

	 	$___,000	 	 
	 
	 	 	 	 
	 

	 	NOTICE: The above signature(s) of the Holder(s) hereof must
correspond with the name as written upon the face of the
Security in every particular without alteration or
enlargement or any change whatever.	 	 

1

 

ATTACHMENT 3

[FORM OF ASSIGNMENT AND TRANSFER]

For value received                                                              hereby sell(s), assign(s) and transfer(s) unto
                                         (Please insert social security or Taxpayer Identification Number of assignee) the
within Security, and hereby irrevocably constitutes and appoints                                          attorney to
transfer the said Security on the books of the Company, with full power of substitution in the
premises.

	 	 	 
	Dated:                                                             
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

Signature(s)

	 	 
	 
	 	 
	 

Signature Guarantee

	 	 
	 
	 	 
	Signature(s) must be guaranteed by an
eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and
credit unions) with membership in an approved
signature guarantee medallion program pursuant
to Securities and Exchange Commission
Rule 17Ad-15 if Securities are to be delivered, other
than to and in the name of the registered holder.
	 	 

NOTICE: The signature on the assignment must correspond with the name as written upon the face of
the Security in every particular without alteration or enlargement or any change whatever.EX-10.1

Exhibit 10.1

Published CUSIP No.:
[                             ]

 

$650,000,000

REVOLVING CREDIT FACILITY

Dated as of August 14, 2009

among

NORDSTROM, INC.,

as Borrower,

THE FINANCIAL INSTITUTIONS NAMED HEREIN,

as Lenders,

BANK OF AMERICA, N.A.,

as Agent,

WELLS FARGO BANK, N.A.,

as Syndication Agent,

and

THE ROYAL BANK OF SCOTLAND PLC AND U.S. BANK NATIONAL ASSOCIATION,

as Co-Documentation Agents

 

BANC OF AMERICA SECURITIES LLC

and

WELLS FARGO SECURITIES, LLC,

as Joint Lead Arrangers and Co-Book Managers

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND RELATED MATTERS	 	 	1	 
	Section 1.1
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Related Matters	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE 2 AMOUNTS AND TERMS OF THE CREDIT FACILITIES	 	 	17	 
	Section 2.1.
	 	Revolving Loans	 	 	17	 
	Section 2.2.
	 	Bid Loans	 	 	19	 
	Section 2.3.
	 	Use of Proceeds	 	 	21	 
	Section 2.4.
	 	Interest; Interest Periods; Conversion/Continuation	 	 	21	 
	Section 2.5.
	 	Notes, Etc.	 	 	23	 
	Section 2.6.
	 	Fees	 	 	24	 
	Section 2.7.
	 	Termination and Reduction of Revolving Commitments	 	 	24	 
	Section 2.8.
	 	Repayments and Prepayments	 	 	25	 
	Section 2.9.
	 	Manner of Payment	 	 	25	 
	Section 2.10.
	 	Pro Rata Treatment	 	 	26	 
	Section 2.11
	 	Sharing of Payments	 	 	27	 
	Section 2.12.
	 	Mandatory Suspension and Conversion of Euro-Dollar Rate Loans	 	 	27	 
	Section 2.13.
	 	Regulatory Changes	 	 	28	 
	Section 2.14.
	 	Compensation for Funding Losses	 	 	29	 
	Section 2.15.
	 	Certificates Regarding Yield
Protection, Etc.	 	 	29	 
	Section 2.16
	 	Taxes	 	 	29	 
	Section 2.17.
	 	Applicable Lending Office; Discretion of Lenders as to Manner of Funding	 	 	30	 
	Section 2.18.
	 	Increases in Revolving Commitment	 	 	30	 
	 
	 	 	 	 	 	 
	ARTICLE 3 CONDITIONS TO LOANS	 	 	31	 
	Section 3.1.
	 	Closing Conditions	 	 	31	 
	Section 3.2.
	 	Conditions Precedent to Loans	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES	 	 	33	 
	Section 4.1.
	 	Organization, Powers and Good Standing	 	 	33	 
	Section 4.2.
	 	Authorization, Binding Effect,
No Conflict, Etc.	 	 	33	 
	Section 4.3.
	 	Financial Information	 	 	34	 
	Section 4.4.
	 	No Material Adverse Changes	 	 	34	 
	Section 4.5.
	 	Litigation	 	 	34	 
	Section 4.6.
	 	Agreements: Applicable Law	 	 	34	 
	Section 4.7.
	 	Taxes	 	 	34	 
	Section 4.8.
	 	Governmental Regulation	 	 	35	 
	Section 4.9.
	 	Margin Regulations/Proceeds of Loans	 	 	35	 
	Section 4.10.
	 	Employee Benefit Plans	 	 	35	 
	Section 4.11.
	 	Disclosure	 	 	35	 
	Section 4.12.
	 	Solvency	 	 	35	 
	Section 4.13.
	 	Title to Properties	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE 5 AFFIRMATIVE COVENANTS OF THE BORROWER	 	 	36	 
	Section 5.1.
	 	Financial Statements and Other Reports	 	 	36	 
	Section 5.2.
	 	Records and Inspection	 	 	38	 
	Section 5.3.
	 	Corporate Existence, Etc.	 	 	38	 

i

 

	 	 	 	 	 	 	 
	Section 5.4
	 	Payment of Taxes and Claims	 	 	38	 
	Section 5.5.
	 	Maintenance of Properties	 	 	39	 
	Section 5.6.
	 	Maintenance of Insurance	 	 	39	 
	Section 5.7.
	 	Conduct of Business; Compliance with Law	 	 	39	 
	Section 5.8.
	 	Further Assurances	 	 	39	 
	Section 5.9.
	 	Future Information	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE 6 NEGATIVE COVENANTS OF THE BORROWER	 	 	40	 
	Section 6.1.
	 	Liens	 	 	40	 
	Section 6.2.
	 	Restricted Payments	 	 	42	 
	Section 6.3.
	 	Financial Covenants	 	 	42	 
	Section 6.4.
	 	Restriction on Fundamental Changes	 	 	42	 
	Section 6.5.
	 	Asset Dispositions	 	 	43	 
	Section 6.6.
	 	Transactions with Affiliates	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE 7 EVENTS OF DEFAULT, ETC.	 	 	44	 
	Section 7.1.
	 	Events of Default	 	 	44	 
	Section 7.2.
	 	Remedies	 	 	46	 
	Section 7.3
	 	Allocation of Payments After Event of Default	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE 8 THE AGENT	 	 	47	 
	Section 8.1
	 	Appointment and Authority	 	 	47	 
	Section 8.2
	 	Rights as a Lender	 	 	47	 
	Section 8.3
	 	Exculpatory Provisions	 	 	47	 
	Section 8.4
	 	Reliance by Agent	 	 	48	 
	Section 8.5
	 	Delegation of Duties	 	 	48	 
	Section 8.6
	 	Resignation of Agent	 	 	49	 
	Section 8.7
	 	Non-Reliance on Agent and Other Lenders	 	 	49	 
	Section 8.8
	 	No Other Duties, Etc.	 	 	49	 
	Section 8.9
	 	Agent May File Proofs of Claim	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE 9 MISCELLANEOUS	 	 	50	 
	Section 9.1.
	 	Expenses	 	 	50	 
	Section 9.2
	 	Indemnity; Damages	 	 	51	 
	Section 9.3.
	 	Amendments; Waivers; Modifications in Writing	 	 	52	 
	Section 9.4.
	 	Cumulative Remedies: Failure or Delays; Enforcement	 	 	53	 
	Section 9.5
	 	Notices; Effectiveness; Electronic Communication	 	 	53	 
	Section 9.6.
	 	Successors and Assigns; Designations	 	 	55	 
	Section 9.7.
	 	Set Off	 	 	58	 
	Section 9.8.
	 	Survival of Agreements, Representations and Warranties	 	 	58	 
	Section 9.9.
	 	Execution in Counterparts	 	 	59	 
	Section 9.10.
	 	Complete Agreement	 	 	59	 
	Section 9.11.
	 	Limitation of Liability	 	 	59	 
	Section 9.12.
	 	WAIVER OF TRIAL BY JURY	 	 	59	 
	Section 9.13.
	 	Confidentiality	 	 	59	 
	Section 9.14.
	 	Binding Effect; Continuing Agreement	 	 	61	 
	Section 9.15.
	 	NO ORAL AGREEMENTS	 	 	61	 
	Section 9.16.
	 	USA Patriot Act Notice	 	 	61	 
	Section 9.17.
	 	No Advisory or Fiduciary Responsibility	 	 	61	 
	Section 9.18.
	 	Electronic Execution of Assignments and Certain Other Documents	 	 	62	 
	Section 9.19.
	 	Replacement of Lenders	 	 	62	 

ii

 

	 	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit 2.1(c)
	 	Form of Notice of Borrowing
	Exhibit 2.1(c)(iii)
	 	Form of Notice of Responsible Officers
	Exhibit 2.2(b)(i)
	 	Form of Bid Loan Quote Request
	Exhibit 2.2(b)(ii)
	 	Form of Bid Loan Quote
	Exhibit 2.4(b)(ii)
	 	Form of Notice of Conversion/Continuation
	Exhibit 2.5(a)(i)
	 	Form of Revolving Loan Note
	Exhibit 2.5(a)(ii)
	 	Form of Bid Loan Note
	Exhibit 3.1(d)
	 	Form of Closing Officer’s Certificate
	Exhibit 5.1(c)
	 	Form of Compliance Certificate
	Exhibit 9.6(b)
	 	Form of Assignment and Assumption
	 
	 
	 
	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 1.1(a)
	 	Controlling Stockholders
	Schedule 1.1(b)
	 	Existing Liens
	Schedule 1.1(c)
	 	Revolving Commitments
	Schedule 4.1
	 	Organization of Borrower and Subsidiaries
	Schedule 4.5
	 	Material Litigation
	Schedule 9.5
	 	Certain Addresses for Notices

iii

 

Exhibit 10.1

REVOLVING CREDIT AGREEMENT

          REVOLVING CREDIT AGREEMENT, dated as of August 14, 2009 (as amended, supplemented or otherwise
modified from time to time, the “Agreement”), by and among NORDSTROM, INC., a Washington
corporation (the “Borrower”), the banks and other financial institutions that either now or
in the future are parties hereto (collectively the “Lenders” and each individually a
“Lender”), WELLS FARGO BANK, N.A., as syndication agent (in such capacity, the
“Syndication Agent”) and BANK OF AMERICA, N.A., as administrative agent for the Lenders (in
such capacity, and any successor in such capacity, the “Agent”). The Lenders, the
Syndication Agent and the Agent are collectively referred to herein as the “Lender Parties”
and each individually as a “Lender Party.”

RECITALS

          WHEREAS, the Borrower has requested that the Lenders provide a new revolving credit facility
in an aggregate amount of $650,000,000 (the “Credit Facility”) for the purposes hereinafter
set forth;

          WHEREAS, the Lenders have agreed to make the requested Credit Facility available to the
Borrower on the terms and conditions hereinafter set forth; and

          WHEREAS, this Agreement replaces in its entirety the Existing Credit Agreement.

          NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS AND RELATED MATTERS

          Section 1.1     Definitions.

          The following terms with initial capital letters have the following meanings:

          “Absolute Rate” is defined in Section 2.2(b)(iii).

          “Administrative Questionnaire” means an Administrative Questionnaire to be completed
by each Lender in a form supplied by the Agent.

          “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such first Person. The term “control” means the possession, directly or indirectly,
of the power, whether or not exercised, to direct or cause the direction of the management or
policies of a Person, whether through the ownership of Capital Stock, by contract or otherwise, and
the terms “controlled” and “common control” have correlative meanings. Unless otherwise indicated,
“Affiliate” refers to an Affiliate of the Borrower. Notwithstanding the foregoing, in no event
shall any Lender Party or any Affiliate of any Lender Partly be deemed to be an Affiliate of the
Borrower. For the avoidance of doubt, the parties agree that, as of the date hereof, 1700 Seventh
L.P., a Washington limited partnership, is not an Affiliate of the Borrower.

          “Agent” means Bank of America or any successor agent appointed in accordance with

 

 

Section 8.6.

          “Agent’s Account” means the account of the Agent identified as such on Schedule
9.5, or such other account as the Agent may hereafter designate by notice to the Borrower and
each Lender Party.

          “Agent’s Office” means the office of the Agent identified as such on Schedule
9.5, or such other office as the Agent may hereafter designate by notice to the Borrower and
each Lender Party.

          “Agreement” means this Credit Agreement, as it may be amended or modified from time to
time, including all Schedules and Exhibits.

          “Applicable Law” means all applicable provisions of all (i) constitutions, treaties,
statutes, laws, rules, regulations and ordinances of any Governmental Authority, (ii) Governmental
Approvals and (iii) orders, decisions, judgments, awards and decrees of any Governmental Authority.

          “Applicable Lending Office” means, with respect to any Lender, (i) in the case of any
payment with respect to Euro-Dollar Rate Loans, such Lender’s Euro-Dollar Lending Office and (ii)
in the case of any payment with respect to Base Rate Loans or Bid Loans or any other payment under
the Loan Documents, such Lender’s Domestic Lending Office.

          “Applicable Margin” means, at any time, with respect to Facility Fees, Base Rate Loans
or Euro-Dollar Rate Loans, as applicable, the appropriate applicable percentage corresponding to
the long term, senior, unsecured, non-credit enhanced debt rating of the Borrower in effect from
time to time as shown below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Long Term, Senior, Unsecured,	 	 	Applicable	 	 	Applicable	 	 	Applicable	 
	 	Level	 	 	Non-Credit	 	 	Margin for	 	 	Margin for	 	 	Margin for	 
	 	 	 	 	Enhanced Debt Rating of	 	 	Euro-Dollar Rate	 	 	Base Rate	 	 	Facility Fees	 
	 	 	 	 	Borrower	 	 	Loans	 	 	Loans	 	 	 	 
	 	
I.
	 	 	
3 A+ from S&P 

or

3 A1 from Moody’s
	 	 	
1.075%
	 	 	
0.075%
	 	 	
0.175%	 
	 	
II.
	 	 	
3 A but < A+ from S&P 

or

3 A2 but < A1 from Moody’s
	 	 	
1.300%
	 	 	
0.300%
	 	 	
0.200%	 
	 	
III.
	 	 	
3 A- but < A from S&P 

or

3 A3 but < A2 from Moody’s
	 	 	
1.750%
	 	 	
0.750%
	 	 	
0.250%	 
	 	
IV.
	 	 	
3 BBB+ but < A- from S&P 

or

3 Baa1 but < A3
from Moody’s
	 	 	
2.125%
	 	 	
1.125%
	 	 	
0.375%	 
	 	
V.
	 	 	
3 BBB but < BBB+ from S&P 

or

3 Baa2 but < Baa1
from 
Moody’s
	 	 	
2.500%
	 	 	
1.500%
	 	 	
0.500%	 
	 

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	Long Term, Senior, Unsecured,	 	 	Applicable	 	 	Applicable	 	 	Applicable	 
	 	Level	 	 	Non-Credit	 	 	Margin for	 	 	Margin for	 	 	Margin for	 
	 	 	 	 	Enhanced Debt Rating of	 	 	Euro-Dollar Rate	 	 	Base Rate	 	 	Facility Fees	 
	 	 	 	 	Borrower	 	 	Loans	 	 	Loans	 	 	 	 
	 	

	 	 	

	 	 	

	 	 	

	 	 	
	 
	 	
VI.
	 	 	
3 BBB- but < BBB from S&P 

or

3 Baa3 but < Baa2
from 
Moody’s
	 	 	
2.875%
	 	 	
1.875%
	 	 	
0.625%	 
	 	
VI.
	 	 	
< BBB- from S&P 

or

< Baa3 from Moody’s 

or 

unrated by S&P and Moody’s
	 	 	
3.250%
	 	 	
2.250%
	 	 	
0.750%	 
	 

          Notwithstanding the above, (i) if at any time there is a split in ratings between S&P and
Moody’s of one level, the applicable percentage shall be determined by the higher of the two
ratings (e.g. A-/Baa1 results in Level III pricing) and (ii) if at any time there is a split
between S&P and Moody’s of two or more levels, the applicable level shall be one level below the
higher of the S&P or Moody’s rating (e.g. A-/Baa2 results in Level IV pricing, as does A-/Baa3).

          The credit ratings to be utilized for purposes of determining a Level hereunder are those
assigned to the senior unsecured long-term debt of the Borrower without third-party credit
enhancement, and any rating assigned to any other Debt of the Borrower shall be disregarded. The
debt rating in effect at any date is the debt rating that is in effect at the close of business on
such date. The Applicable Margin shall be determined and, if necessary, adjusted on the date
(each, a “Determination Date”) on which there is
any change in the Borrower’s debt ratings. Each Applicable Margin shall be effective from one
Determination Date until the next Determination Date. Any adjustment in the Applicable Margin
shall be applicable to all existing Euro-Dollar Rate Loans and all existing Base Rate Loans as well
as any new Euro-Dollar Rate Loans and any new Base Rate Loans made. The Borrower shall notify the
Agent in writing immediately upon any change in its debt ratings.

          “Approved Fund” means any Fund that is administered or managed by (i) a Lender, (ii)
an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers or
manages a Lender.

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

          “Assignment and Assumption” means an Assignment and Assumption in the form of
Exhibit 9.6(b).

          “Bank of America” means Bank of America, N.A. or any successor thereto.

          “Bankruptcy Code” means Title 11 of the United States Code (11 U.S.C. Section 101
et seq.), as amended, modified, succeeded or replaced from time to time.

          “BAS” means Banc of America Securities LLC or any successor thereto, in its capacity
as joint

3

 

lead arranger and co-book manager.

          “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (i)
the Federal Funds Rate plus 1/2 of 1%, (ii) the Prime Rate and (iii) the Interbank Offered Rate
plus 1.0%. Notwithstanding the reference to the Interbank Offered Rate in this definition,
such rate is for reference only, and the Base Rate shall in no event include “match-funding” of
Loans using the Base Rate or cause such Loans to be subject to an interest period or adjustment of
the rate due to taxes, Applicable Lending Office or the like; the unavailability of the Interbank
Offered Rate at any time shall result solely in the Base Rate being the higher of the other two
rates.

          “Base Rate Loan” means a Revolving Loan, or portion thereof, that bears interest by
reference to the Base Rate.

          “Bid Loan” is defined in Section 2.2(a).

          “Bid Loan Borrowing” is defined in Section 2.2(a).

          “Bid Loan Note” means a Bid Loan Note made by the Borrower, in substantially the form
of Exhibit 2.5(a)(ii), payable to the order of a Lender, evidencing the obligation of the
Borrower to repay the Bid Loans made by such Lender, and includes any Bid Loan Note issued in
exchange or substitution therefor.

          “Bid Loan Quote” is defined in Section 2.2(b)(ii).

          “Bid Loan Quote Request” is defined in Section 2.2(b)(i).

          “Borrower” means Nordstrom, Inc., a Washington corporation, and its successors and
permitted assigns.

          “Borrower Account” means the account of the Borrower identified as such on
Schedule 9.5, or such other account as the Borrower may hereafter designate by notice to the Agent, with the
prior consent of the Agent (such consent not to be withheld, conditioned or delayed so long as the
designation of such account would not prevent the Agent from satisfying its obligations hereunder
in a timely manner).

          “Borrower Materials” is defined in Section 5.1.

          “Borrowing” means a contemporaneous borrowing of Loans of the same Type.

          “Business Day” means any day that (i) is not a Saturday, Sunday or other day on which
commercial banks in Seattle, Washington, San Francisco, California or Charlotte, North Carolina are
authorized or obligated to close and (ii) if the applicable Business Day relates to any Euro-Dollar
Rate Loans, is a Euro-Dollar Business Day.

          “Capital Expenditures” means, for any period, for the Borrower and its consolidated
Subsidiaries, all capital expenditures as determined in accordance with GAAP, but excluding
expenditures to the extent made with insurance proceeds received in connection with any loss of,
damage to or destruction of any property of the Borrower or its consolidated Subsidiaries so long
as such insurance proceeds are used to purchase, replace, rebuild or refurbish property that is
useful in the business of the Borrower or its Subsidiaries.

          “Capital Stock” means, with respect to any Person, all (i) shares, interests,
participations or other

4

 

equivalents (howsoever designated) of capital stock and other equity or
ownership interests of such Person and (ii) rights (other than debt securities convertible into
capital stock or other equity interests), warrants or options to acquire any such capital stock or
other equity interests.

          “Capitalized Leases” means, as to any Person, all leases of such Person of real or
personal property that in accordance with GAAP are or should be capitalized on the balance sheet of
such Persons. The amount of any Capitalized Lease shall be the capitalized amount thereof as
determined in accordance with GAAP.

          “Change of Control” means that (a) a majority of the directors of the Borrower shall
be Persons other than Persons (x) for whose election proxies shall have been solicited by the board
of directors of the Borrower or for whose appointment or election is otherwise approved or ratified
by the board of directors of the Borrower or (y) who are then serving as directors appointed by the
board of directors to fill vacancies on the board of directors caused by death or resignation (but
not by removal) or to fill newly-created directorships or (b) any “person” or “group” (as such
terms are used in Sections 13(d) of the Securities Exchange Act of 1934), other than the
Controlling Stockholders, becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Securities Exchange Act of 1934, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such person or group has the right to acquire whether
such right is immediately exercisable or only after the passage of time), directly or indirectly,
of Voting Stock of the Borrower (or other securities convertible into such Voting Stock)
representing 50% or more of the combined voting power of all Voting Stock of the Borrower.

          “Closing Date” means the date of this Agreement.

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

          “Compliance Certificate” is defined in Section 5.1(c).

          “Contingent Obligation” means, as to any Person, any obligation, direct or indirect,
contingent or
otherwise, of such Person which does or would reasonably be expected to result in the direct
payment of money (i) with respect to any Debt or other obligation of another Person, including any
direct or indirect guarantee of such Debt (other than any endorsement for collection in the
ordinary course of business) or any other direct or indirect obligation, by agreement or otherwise,
to purchase or repurchase any such Debt or obligation or any security therefor, or to provide funds
for the payment or discharge of any such Debt or obligation (whether in the form of loans,
advances, stock purchases, capital contributions or otherwise), (ii) to provide funds to maintain
the financial condition of any other Person, (iii) to lease or purchase property, securities or
services primarily for the purpose of assuring the holders of Debt or other obligations of another
Person or (iv) otherwise to assure or hold harmless the holders of Debt or other obligations of
another Person against loss in respect thereof. The amount of any Contingent Obligation shall be
the greater of (a) the amount of the Debt or obligation guaranteed or otherwise supported thereby
or (b) the maximum amount guaranteed or supported by the Contingent Obligation. The term
“Contingent Obligation”, as used with respect to the Borrower or any Subsidiary, shall not include
(1) the obligations of the Borrower under any obligation which the Borrower has or may have to sell
to, repurchase from or indemnify the purchaser or other transferee with respect to accounts
discounted, sold or in which an interest is otherwise transferred by the Borrower or any Subsidiary
in the ordinary course of its business (but any such other obligation shall be excluded only to the
extent that such other obligation is for the benefit, directly or indirectly, of any Person that is
a Wholly-Owned Subsidiary (direct or indirect) of the Borrower); or (2) any obligation which a
Subsidiary has or may have to sell to, repurchase from or indemnify the purchaser or other
transferee with respect to accounts discounted, sold or in which an interest is otherwise
transferred by the Borrower or such Subsidiary in the ordinary course

5

 

of its business (but any such
other obligation shall be excluded only to the extent that such obligation is for the benefit,
directly or indirectly, of any Person that is a Wholly-Owned Subsidiary (direct or indirect) of the
Borrower); (3) supply, service or licensing agreements between or among the Borrower or its
Subsidiaries and any Affiliate(s), in each case, so long as such agreements comply with Section
6.6; (4) environmental indemnities routinely given as part of sale, lease or other disposition
or acquisition of real estate, or (5) “indemnities” for attorneys’ fees and costs which are
incidental to another transaction and/or damages arising from breach of the terms of such
transaction.

          “Contractual Obligation” means, as applied to any Person, any provision of any
security issued by that Person or of any indenture, agreement or other instrument to which that
Person is a party or by which it or any of the properties owned or leased by it is bound or
otherwise subject.

          “Controlled Group” means all members of a controlled group of corporations and all
trades or businesses (irrespective of whether incorporated) that, together with the Borrower or any
Subsidiary, are or were treated as a single employer under Section 414 of the Code.

          “Controlling Stockholders” means the individuals listed on Schedule 1.1(a)
hereto and the spouse and lineal descendants of any such individual.

          “Debt” means, with respect to any Person, the aggregate amount of, without
duplication: (i) all obligations for borrowed money (including, except as otherwise provided in
subpart (iii) below, purchase money indebtedness) other than, with respect to Debt of the Borrower
or any of its Subsidiaries, funds borrowed by the Borrower or any such Subsidiary from the
Borrower or another such Subsidiary; (ii) all obligations evidenced by bonds, debentures, notes or
other similar instruments; (iii) all obligations to pay the deferred purchase price of property or
services, except trade accounts payable (which trade payables are deemed to include any consignment
purchases) arising in the ordinary course of business that are not overdue; (iv) the principal
portion of all obligations under (a) Capitalized Leases and (b) any synthetic lease, tax retention
operating lease, off-balance sheet loan or similar off-balance sheet financing product of such
Person where such transaction is considered borrowed money indebtedness for tax purposes but is
classified as an operating lease in accordance with GAAP; (v) all obligations of third parties
secured by a
Lien on any asset owned by such Person whether or not such obligation or liability is assumed;
(vi) all obligations of such Person, contingent or otherwise, in respect of any letters of credit
or bankers’ acceptances; (vii) all Contingent Obligations; (viii) the aggregate amount paid to, or
borrowed by, such Person as of such date under a sale of receivables or similar transaction
(regardless of whether such transaction is effected without recourse to such Person or in a manner
that would not be reflected on the balance sheet of such Person in accordance with GAAP); (ix) all
Debt of any partnership or unincorporated joint venture to the extent such Person is legally
obligated with respect thereto; and (x) all net obligations with respect to interest rate
protection agreements, foreign currency exchange agreements, commodity purchase or option
agreements or other interest or exchange rate or commodity price hedging agreements.

          “Default” means any condition or event that, with the giving of notice or lapse of
time or both, would, unless cured or waived, become an Event of Default.

          “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Loans required to be funded by it hereunder within three Business Days of the date required to be
funded by it hereunder, unless the subject of a good faith dispute or unless such failure has been
cured, (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 unless such failure has been cured, or (c) has been adjudicated
or determined by a governmental entity having authority over such Person or its assets to be
insolvent or become the subject of a bankruptcy or insolvency proceeding or has had a receiver,
conservator, trustee or custodian appointed for it; provided

6

 

that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any ownership interest in
such Lender or a parent company thereof or the exercise of control over a Lender or Person
controlling such Lender by a Governmental Authority or an instrumentality thereof; it being
understood that if a Lender has been turned over to the FDIC (or a similar regulatory entity) for
the purpose of sale or liquidation it shall be a Defaulting Lender.

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

          “Domestic Lending Office” means the office, branch or Affiliate of any Lender
described in such Lender’s Administrative Questionnaire as its Domestic Lending Office or such
other office, branch or Affiliate as the Lender may hereafter designate as its Domestic Lending
Office for one or more Types of Loans by notice to the Borrower and the Agent.

          “EBITDAR” means, for any period, with respect to the Borrower and its consolidated
Subsidiaries, Net Income plus, to the extent deducted in determining such Net Income, the sum of
(a) Interest Expense, (b) income tax expense, (c) depreciation expense, (d) amortization expense,
(e) Rent Expense and (f) non-recurring, non-cash charges (including goodwill or other impairment
charges) in an aggregate principal amount not to exceed $50,000,000 during the term of this
Agreement, in each case as determined in accordance with GAAP.

          “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved
Fund; and (d) any other Person (other than a natural person) approved by (i) the Agent, and (ii)
unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to
be unreasonably withheld or delayed; it being understood that it shall be reasonable for the
Borrower to withhold consent to a new assignee Lender if as a result of such assignment the
Borrower would incur additional costs, including without limitation, under Sections 2.13
and 2.16; and the assignee Lender shall provide such information, if requested by the
Borrower, in connection with any proposed assignment); provided that notwithstanding the
foregoing, “Eligible Assignee” shall not include (i) the Borrower or any of the Borrower’s
Affiliates or Subsidiaries, (ii) any competitor of the Borrower or any affiliate of a competitor of
the Borrower or the Borrower’s Affiliates or (iii) any Defaulting Lender.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Event” means (i) (a) the occurrence of a reportable event, within the meaning
of Section 4043(c) of ERISA, with respect to any Plan unless the 30-day notice requirement with
respect to such event has been waived by the PBGC (provided that a reportable event arising from
the disqualification of a Plan or the distress termination of a Plan under ERISA Section 4041(c)
shall be deemed to be an ERISA Event without regard to any waiver of notice by the PBGC by
regulation or otherwise), or (b) the requirements of subsection (1) of Section 4043(b) of ERISA
(without regard to subsection (2) of such Section) are met with respect to a contributing sponsor,
as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9),
(10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect
to such Plan within the following 30 days; (ii) the minimum required contribution (as defined in
Section 430(a) of the Code) to each Pension Plan, and the minimum contribution required under
Section 412 of the Code have not been timely contributed with respect to a Plan; (iii) the
provision by the administrator of a Plan of a notice of intent to terminate such Plan pursuant to
Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to
in Section 4041(e) of ERISA); (iv) the cessation of operations at a facility of the Borrower or any
member of the Controlled Group in the circumstances described in Section 4062(e) of ERISA; (v) the
withdrawal by the Borrower or any member of the Controlled Group from a Plan during a plan year for
which it was a substantial employer, as defined in Section 4001(a)(2)

7

 

of ERISA; (vi) the adoption
of an amendment to a Plan requiring the provision of security to such Plan pursuant to Section 307
of ERISA; or (vii) the institution by the PBGC of proceedings to terminate a Plan pursuant to
Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of
ERISA that constitutes grounds for the termination of, or the appointment of a trustee to
administer, a Plan.

          “Euro-Dollar Business Day” means any Business Day on which commercial banks are open
for international business (including dealings in interbank Dollar deposits) in London, England.

          “Euro-Dollar Lending Office” means the office, branch or Affiliate of any Lender
described in such Lender’s Administrative Questionnaire as its Euro-Dollar Lending Office or,
subject to the terms hereof, such other office, branch or Affiliate as such Lender may hereafter
designate as its Euro-Dollar Lending Office by notice to the Borrower and the Agent.

          “Euro-Dollar Rate” means, for any Interest Period with respect to any Euro-Dollar Rate
Loan, a rate per annum determined by the Agent to be equal to the quotient obtained by dividing (a)
the Interbank Offered Rate for such Euro-Dollar Rate Loan for such Interest Period by (b) one minus
the Euro-Dollar Reserve Requirement for such Euro-Dollar Rate Loan for such Interest Period.

          “Euro-Dollar Rate Loan” means a Revolving Loan, or portion thereof, that bears
interest at a rate determined by reference to a Euro-Dollar Rate (and as to which a single Interest
Period is applicable) but such term excludes any Base Rate Loan on which the Base Rate is
determined based on the Interbank Offered Rate under the definition of Base Rate or any Bid Loan.

          “Euro-Dollar Reserve Requirement” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such
day, whether or not applicable to any Lender, under regulations issued from time to time by the
Federal Reserve Board for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently
referred to as “Eurocurrency liabilities”). The Euro-Dollar Rate for each outstanding Euro-Dollar
Rate Loan shall be adjusted automatically as of the effective date of any change in the Euro-Dollar
Reserve Requirement.

          “Event of Default” means any of the events specified in Section 7.1.

          “Excluded Tax” means, with respect to any payment to any Lender Party, (i) any taxes
imposed on or measured by the overall net income (including a franchise tax based on net income) of
such Lender Party by any Governmental Authority or taxing authority thereof or therein, and (ii)
any taxes imposed on or measured by the overall net income (including a franchise tax based on net
income) of such Lender Party or its Agent’s Office or Applicable Lending Office in respect of which
the payment is made, by any Governmental Authority in the jurisdiction in which it is incorporated,
maintains its principal executive office or in which such Agent’s Office or Applicable Lending
Office is located.

          “Existing Credit Agreement” means that certain Revolving Credit Agreement, dated as of
November 4, 2005, by and among the Borrower, the financial institutions party thereto as lenders
thereunder and Bank of America, N.A., as administrative agent for such lenders, as it has been
amended, supplemented or otherwise modified from time to time.

          “Existing Liens” means the Liens described on Schedule 1.1(b).

          “Facility Fee” is defined in Section 2.6(a).

8

 

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

          “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any successor thereto.

          “Fee Letter” means that certain letter agreement, dated as of July 8, 2009, among the
Borrower, the Agent and BAS regarding certain fees relating to this Agreement, as the same may be
amended, supplemented or otherwise modified in writing from time to time by the Borrower, the Agent
and BAS.

          “Fees” means, collectively, the fees defined in or referenced in Section 2.6.

          “Fiscal Year” means the fiscal year of the Borrower, which shall be the twelve
month-period ending on January 31 in each year or such other period as the Borrower may designate
and the Agent may approve in writing. “Fiscal Quarter” or “fiscal quarter” means
any quarter of a Fiscal Year.

          “Fixed Charge Coverage Ratio” is defined in Section 6.3(b).

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

          “Funded Debt” means, with respect to the Borrower and its Subsidiaries, on a
consolidated basis, the aggregate amount of, without duplication: (i) all obligations for borrowed
money (including, except as
otherwise provided in subpart (iii) below, purchase money indebtedness) other than funds
borrowed by the Borrower or any Subsidiary from the Borrower or another Subsidiary; (ii) all
obligations evidenced by bonds, debentures, notes or other similar instruments; (iii) all
obligations to pay the deferred purchase price of property or services, except trade accounts
payable (which trade payables are deemed to include any consignment purchases) arising in the
ordinary course of business that are not overdue; (iv) the principal portion of all obligations
under (a) Capitalized Leases and (b) any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product of the Borrower or any of its
Subsidiaries where such transaction is considered borrowed money indebtedness for tax purposes but
is classified as an operating lease in accordance with GAAP; (v) all obligations of others secured
by a Lien on any asset owned by the Borrower or any of its Subsidiaries whether or not such
obligation or liability is assumed; and (vi) the aggregate amount paid to, or borrowed by, the
Borrower or any of its Subsidiaries as of such date under a sale of receivables or similar
transaction (regardless of whether such transaction is effected without recourse to the Borrower or
any of its Subsidiaries or in a manner that would not be reflected on the balance sheet of the
Borrower or any of its Subsidiaries in accordance with GAAP).

          “Funding Date” means any date on which a Loan is (or is requested to be) made.

          “GAAP” means generally accepted accounting principles as in effect in the United
States of America from time to time and applied on a consistent basis.

9

 

          “Governmental Approval” means an authorization, consent, approval, permit or license
issued by, or a registration, qualification or filing with, any Governmental Authority.

          “Governmental Authority” means any nation and any state or political subdivision
thereof and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any tribunal or arbitrator of competent jurisdiction.

          “Indemnitees” is defined in Section 9.2.

          “Information” is defined in Section 9.13.

          “Interbank Offered Rate” means:

          (a)      For any Interest Period with respect to a Euro-Dollar Rate Loan, the
rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by
Reuters (or other commercially available source providing quotations of BBA LIBOR as
designated by the Agent from time to time) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Interest Period, for Dollar deposits (for
delivery on the first day of such Interest Period) with a term equivalent to such Interest
Period. If such rate is not available at such time for any reason, then the “Interbank
Offered Rate” for such Interest Period shall be the rate per annum determined by the Agent
to be the rate at which deposits in Dollars for delivery on the first day of such Interest
Period in same day funds in the approximate amount of the Euro-Dollar Rate Loan being made,
continued or converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 11:00 a.m. (London time) two Business
Days prior to the commencement of such Interest Period.

         (b)
      For any day with respect to an interest rate calculation for a Base Rate Loan, the
rate per annum equal to BBA LIBOR at approximately 11:00 a.m., London time, two Business
Days prior to such date for Dollar deposits (for delivery on such day) with a term
equivalent to
one month. If such rate is not available at such time for any reason, then the
“Interbank Offered Rate” shall be the rate determined by the Agent to be the rate at which
deposits in Dollars for delivery on the Funding Date for such Base Rate Loan in same day
funds in the approximate amount of the Base Rate Loan being made, continued or converted by
Bank of America and with a term equivalent to one month would be offered by Bank of
America’s London Branch to major banks in the London interbank eurodollar market at
approximately 11:00 a.m. (London time) two Business Days prior to such day.

          “Interest Expense” means the consolidated interest expense (including the amortization
of debt discount and premium, the interest component under Capitalized Leases and the implied
interest component under synthetic leases, tax retention operating leases, off-balance sheet loans
or similar off-balance sheet financing products) of the Borrower and its Subsidiaries, as
determined in accordance with GAAP.

          “Interest Period” means, subject to the conditions set forth below:

          (i)
      with respect to each Euro-Dollar Rate Loan, the period commencing on the Funding
Date specified in the related Notice of Borrowing or Notice of Conversion/Continuation and
ending (subject to availability to all Lenders) one, two, three or six months thereafter, as
the Borrower may elect, as applicable; and

10

 

          (ii)
     with respect to any Bid Loan, the period commencing on the Funding Date specified
in the related Bid Loan Quote Request and ending on any Business Day not less than seven and
not more than 30 days thereafter, as the Borrower may request as provided in Section
2.2(b)(i).

          Notwithstanding the foregoing: (a) if a Euro-Dollar Rate Loan is continued, the Interest
Period applicable to the continued Euro-Dollar Rate Loan shall commence on the day on which the
Interest Period applicable to such Euro-Dollar Rate Loan ends; (b) any Interest Period applicable
to a Euro-Dollar Rate Loan (1) that would otherwise end on a day that is not a Business Day shall
be extended to the next succeeding Business Day, unless such succeeding Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding Business
Day or (2) that begins on the last Business Day of a calendar month (or on a day for which there is
no numerically corresponding day in the calendar month at the end of such Interest Period) shall
end on the last Business Day of the calendar month; and (c) no Interest Period shall end after the
Maturity Date.

          “Investment Agreement” means the Investment Agreement, dated as of October 8, 1984,
between the Borrower and Nordstrom Credit, Inc., a Colorado corporation, as amended from time to
time.

          “Lender” means each of those banks and other financial institutions identified as such
on the signature pages hereto and such other institutions that may become Lenders pursuant to
Section 9.6(b) or Section 2.18.

          “Lender Party” means each of the Lenders, the Agent and the Syndication Agent.

          “Leverage Ratio” is defined in Section 6.3(a).

          “Lien” means any lien, mortgage, pledge, security interest, charge, or encumbrance of
any kind (including any conditional sale or other title retention agreement or any lease in the
nature thereof) and any agreement to give any lien, mortgage, pledge, security interest, charge, or
other encumbrance of any kind.

          “Loan” means a Base Rate Loan, Euro-Dollar Rate Loan or Bid Loan, each of which
constitutes a “Type” of Loan.

          “Loan Documents” means, collectively, this Agreement, the Notes, and any other
agreement, instrument or other writing executed or delivered by the Borrower in connection
herewith, and all amendments, exhibits and schedules to any of the foregoing.

          “Margin Regulations” means Regulations T, U and X of the Federal Reserve Board, as
amended from time to time, or any successor regulations.

          “Margin Stock” means “margin stock” as defined in the Margin Regulations.

          “Material Adverse Effect” or “Material Adverse Change” means (i) a material
adverse effect on or (ii) a material adverse change in, as the case may be, any one or more of the
following: (A) the business, assets, liabilities, results of operations or condition (financial or
otherwise) of the Borrower and its Subsidiaries taken as a whole or (B) the ability of the Borrower
to perform its obligations under any Loan Document to which it is a party or (C) the actual
material rights and remedies of any Lender Party under any Loan Document.

11

 

          “Material Contractual Obligation” means a Contractual Obligation, the violation of
which could reasonably be expected to have a Material Adverse Effect.

          “Maturity Date” means August 14, 2012.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor or assignee of the
business of such company in the business of rating debt.

          “Mortgages” means mortgages, deeds of trust or deeds to secure debt that purport to
grant to a Person a security interest in the fee interests and/or leasehold interests of the
Borrower or any Subsidiary in any real property.

          “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA.

          “Net Income” means, for any period with respect to the Borrower and its consolidated
Subsidiaries, net income (or net loss), excluding the effect of extraordinary or other
non-recurring gains and losses, as determined in accordance with GAAP.

          “Note” means a Revolving Loan Note or Bid Loan Note.

          “Notice of Borrowing” is defined in Section 2.1(c)(i).

          “Notice of Conversion/Continuation” is defined in Section 2.4(b)(ii).

          “Notice of Responsible Officers” is defined in Section 2.1(c)(iii).

          “Obligations” means all present and future obligations and liabilities of the Borrower
of every type and description arising under or in connection with the Loan Documents due or to
become due to the Lender Parties or any Person entitled to indemnification under the Loan
Documents, or any of their respective successors, transferees or assigns, whether for principal,
interest, Fees, expenses, indemnities or other amounts (including attorneys’ fees and expenses) and
whether due or not due, direct or indirect,
joint and/or several, absolute or contingent, voluntary, or involuntary, liquidated or
unliquidated, determined or undetermined, and whether now or hereafter existing, renewed or
restructured.

          “Participant” is defined in Section 9.6(d).

          “PBGC” means the Pension Benefit Guaranty Corporation, as defined in Title IV of
ERISA, or any successor.

          “Permitted Liens” means, with respect to any asset, the Liens (if any) permitted to
exist on such asset in accordance with Section 6.1.

          “Person” means an individual, a corporation, a partnership, a limited liability
company, a trust, an unincorporated organization or any other entity or organization, including a
government or any agency or political subdivision thereof.

          “Plan” means, at any time, any employee pension benefit plan that is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 430 of the Code and that is
either (i) maintained by the Borrower or any member of a Controlled Group for employees of the
Borrower or such Controlled Group or was formerly so maintained and in respect of which the
Borrower or any member of the Controlled Group could have liability under Section 4069 of ERISA in
the event such plan

12

 

has been or were to be terminated or (ii) maintained for employees of the
Borrower or any member of the Controlled Group and at least one Person other than the Borrower and
the members of the Controlled Group or was formerly so maintained and in respect of which the
Borrower or any member of the Controlled Group could have liability under Section 4064 or 4069 of
ERISA in the event such plan has been or were to be terminated.

          “Platform” is defined in Section 5.1.

          “Post-Default Rate” means (i) with respect to all Base Rate Loans and any other
amounts (other than then outstanding Euro-Dollar Rate Loans) owing hereunder not paid when due, a
rate per annum equal at all times to the rate otherwise applicable to Base Rate Loans plus 2.00%
per annum, and (ii) with respect to each then outstanding Euro-Dollar Rate Loan, a rate per annum
equal at all times to the rate otherwise applicable to such Euro-Dollar Rate Loan plus 2.00% per
annum.

          “Prime Rate” means the rate of interest in effect for such day as publicly announced
from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set by Bank
of America based upon various factors including Bank of America’s costs and desired return, general
economic conditions and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in the “prime rate”
announced by Bank of America shall take effect at the opening of business on the day specified in
the public announcement of such change.

          “Recourse Agreement” means the Recourse Agreement, dated as of March 1, 2001, between
the Borrower and Nordstrom Credit, Inc., a Colorado corporation, for the benefit of Nordstrom fsb,
a federal savings bank, as amended from time to time.

          “Regulation D” means Regulation D of the Federal Reserve Board, as amended from time
to time.

          “Regulatory Change” means (i) the adoption or becoming effective after the date hereof
of any treaty, law, rule or regulation, (ii) any change in any such treaty, law, rule or regulation
(including Regulation D), or any change in the administration or enforcement thereof, by any
Governmental
Authority, central bank or other monetary authority charged with the interpretation or
administration thereof, in each case after the date hereof, or (iii) compliance after the date
hereof by any Lender Party (or its Applicable Lending Office or, in the case of capital adequacy
requirements, any holding company of any Lender Party) with any interpretation, directive, request,
order or decree (whether or not having the force of law) of any such Governmental Authority,
central bank or other monetary authority.

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

          “Rent Expense” means the consolidated rent expense of the Borrower and its
Subsidiaries, as determined in accordance with GAAP.

          “Required Lenders” means Lenders having more than 50% of the Revolving Commitments or,
if the Revolving Commitments have terminated, Lenders holding more than 50% of the aggregate unpaid
principal amount of the Loans. The Revolving Commitments of, and the outstanding Loans held by,
any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders
for as long as such Lender is a Defaulting Lender.

          “Responsible Officer” is defined in Section 2.1(c)(iii).

13

 

          “Restricted Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any Capital Stock of the Borrower or any Subsidiary now or hereafter outstanding,
except (a) a dividend or other distribution payable solely in shares or equivalents of Capital
Stock of the same class as the Capital Stock on account of which the dividend or distribution is
being paid or made and (b) the issuance of equity interests upon the exercise of outstanding
warrants, options or other rights, or (ii) any redemption, retirement, sinking fund or similar
payment, purchase or other acquisition for value, direct or indirect, of any Capital Stock of the
Borrower or any Subsidiary now or hereafter outstanding.

          “Revolving Commitment” means, with respect to each Lender, the amount set forth for
such Lender on Schedule 1.1(c) or as set forth in the Assignment and Assumption or in any
other documentation described in Section 2.18 pursuant to which such Lender becomes a party
hereto, in each case, as modified or terminated from time to time pursuant to the terms hereof.

          “Revolving Commitment Percentage” means, for each Lender, the percentage identified on
Schedule 1.1(c) opposite such Lender’s name or as set forth in the Assignment and
Assumption or in any other documentation described in Section 2.18 pursuant to which such
Lender becomes a party hereto, in each case, as such percentage may be modified in accordance with
the terms hereof.

          “Revolving Commitment Termination Date” is defined in Section 2.7(a).

          “Revolving Committed Amount” means SIX HUNDRED FIFTY MILLION DOLLARS ($650,000,000),
as such amount may be reduced in accordance with Section 2.7 or increased in accordance
with Section 2.18.

          “Revolving Loan Note” means a Revolving Loan Note made by the Borrower, in
substantially in the form of Exhibit 2.5(a)(i), payable to the order of a Lender,
evidencing the obligation of the Borrower to repay the Revolving Loans made by such Lender and
includes any Revolving Loan Note issued in exchange or substitution therefor.

          “Revolving Loans” is defined in Section 2.1(a)(i).

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor or assignee of the business of such division in the business of
rating debt.

          “Sale and Leaseback Transaction” means, with respect to the Borrower or any
Subsidiary, any arrangement, directly or indirectly, with any Person whereby the Borrower or such
Subsidiary shall sell or transfer any property used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property that it intends to
use for substantially the same purpose or purposes as the property being sold or transferred.

          “SEC” means the United States Securities and Exchange Commission, and any successor
thereto.

          “Senior Officer” means, with respect to the Borrower, the chairman of the board of
directors; the president; the chief executive officer; the chief operating officer; the chief
financial officer; or the vice president and treasurer of the Borrower.

          “Solvent” and “Solvency” mean, with respect to any Person as of a particular
date, that on such date (i) such Person is able to pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business, (ii) such Person
does not intend to, and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay as such debts and liabilities mature in their

14

 

ordinary course, (iii) such Person is not engaged in a business or a transaction, and is not
about to engage in a business or a transaction, for which such Person’s assets would constitute
unreasonably small capital after giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is about to engage, (iv) the fair value of the assets
of such Person is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of such Person and (v) the present fair saleable value of the assets of
such Person is not less than the amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured. In computing the amount of contingent
liabilities at any time, it is intended that such liabilities will be computed at the amount which,
in light of all the facts and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability.

          “Subsidiary” means, with respect to any Person, any other Person of which more than
50% of the Voting Stock is at the time directly or indirectly owned by such first Person. Unless
otherwise indicated, “Subsidiary” refers to a Subsidiary of the Borrower.

          “Support Letter” means (i) that certain letter from the Borrower to Nordstrom fsb, a
federal savings bank, dated as of June 17, 2004 affirming the Borrower’s commitment to provide
adequate funding to allow Nordstrom fsb to meet its obligations, as amended by a letter dated June
2005, and as further amended from time to time, (ii) that certain Savings Association Support
Agreement dated as of May 31, 2009 among the Borrower, Nordstrom Credit, Inc. and the Office of
Thrift Supervision, a Federal banking agency existing under the laws of the United States of
America, affirming the Borrower’s commitment to provide adequate funding to allow Nordstrom fsb to
meet its obligations, as amended from time to time and/or (iii) such other similar type agreements
as are required by an applicable regulator.

          “Syndication Agent” means Wells Fargo Bank, N.A., or any successors thereto.

          “Taxes” means any income, stamp, excise, property and other taxes, charges, fees,
levies, duties, imposts, withholdings or other assessments, together with any interest and
penalties, additions to tax and additional amounts imposed by any federal, state, local or foreign
taxing authority upon any Person.

          “Type” is defined in the definition of “Loan.”

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

          “Wholly-Owned” means, with respect to any Subsidiary, that all the Capital Stock
(except for directors’ qualifying shares) of such Subsidiary are directly or indirectly owned by
the Borrower.

          Section 1.2.     Related Matters.

            (a)
      Construction. Unless the context of this Agreement clearly requires
otherwise, references to the plural include the singular, the singular includes the plural,
the part includes the whole, “including” is not limiting, and “or” has the inclusive meaning
represented by the phrase “and/or.” The words “hereof,” “hereto,” “hereby,” “hereunder” and
similar terms in this Agreement refer to this Agreement as a whole (including the Preamble,
the Recitals, the Schedules and the Exhibits) and not to any particular provision of this
Agreement. References in this Agreement to
“Articles,” “Sections,” “Subsections,” “Exhibits,” “Schedules,”
“Recitals” and “Preambles” are to this Agreement unless otherwise specified. References in
this Agreement to 

15

 

any
agreement, other document or law “as amended” or “as amended from time
to time,” or to amendments of any document or law, shall include any amendments,
supplements, replacements, renewals, waivers or other modifications. References in this
Agreement to any law (or any part thereof) include any rules and regulations promulgated
thereunder (or with respect to such part) by the relevant Governmental Authority, as amended
from time to time.

          (b)
        Determinations. Any determination or calculation contemplated by this
Agreement that is made by any Lender Party in good faith and reasonably shall be final and
conclusive and binding upon the Borrower and, in the case of determinations by the Agent,
also the other Lender Parties, in the absence of manifest error. All consents and other
actions of any Lender Party contemplated by this Agreement may be given, taken, withheld or
not taken in such Lender Party’s discretion (whether or not so expressed), except as
otherwise expressly provided herein.

          (c)
        Accounting Terms and Determinations. Unless otherwise specified herein,
all accounting terms used herein shall be interpreted, all accounting determinations
hereunder shall be made, and all financial statements required to be delivered hereunder
shall be prepared on a consolidated basis in accordance with GAAP. In the event that any
“Accounting Change” (as defined below) shall occur and such change results in a material
change in the resulting financial covenants, standards or terms in this Agreement, then the
Borrower and the Lender Parties agree to enter into negotiations in order to amend such
provisions of this Agreement so as to equitably reflect such Accounting Changes with the
desired result that the criteria for evaluating the Borrower’s financial condition shall be
the same after such Accounting Changes as they would be if such Accounting Changes had not
been made. Until such time as such an amendment shall have been executed and delivered by
the Borrower, the Agent and the Required Lenders, all financial covenants, standards and
terms in this Agreement shall continue to be calculated or construed as if such Accounting
Changes had not occurred. “Accounting Changes” refers to changes in accounting
principles required by the promulgation of any rule, regulation, pronouncement or opinion by
the Financial Accounting Standards Board of the American Institute of Certified Public
Accountants or, if applicable, the SEC or any regulator of financial institutions or
financial institution holding companies.

          (d)
        Governing Law and Submission to Jurisdiction.

             (i)
        THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS (OTHER THAN THE RULES REGARDING CONFLICTS OF LAWS) OF THE STATE OF WASHINGTON.

             (ii)
        THE BORROWER IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS
PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF WASHINGTON
SITTING IN KING COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE WESTERN
DISTRICT OF WASHINGTON, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,
OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH WASHINGTON STATE COURT
OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.
EACH OF THE PARTIES HERETO AGREES THAT A FINAL

16

 

JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON
THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR
IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR
ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE
COURTS OF ANY JURISDICTION.

            (e)
      Headings. The Article and Section headings used in this Agreement are for
convenience of reference only and shall not affect the construction hereof.

            (f)
      Severability. If any provision of this Agreement shall be held to be
invalid, illegal or unenforceable under Applicable Law in any jurisdiction, such provision
shall be ineffective only to the extent of such invalidity, illegality or unenforceability,
which shall not affect any other provisions hereof or the validity, legality or
enforceability of such provision in any other jurisdiction.

            (g)
      Time. All references to time herein shall be references to Pacific Standard
Time or Pacific Daylight Time, as the case may be, unless specified otherwise.

ARTICLE 2

AMOUNTS AND TERMS OF THE CREDIT FACILITIES

          Section 2.1.
    Revolving Loans.

          (a) 
      General Terms.

            (i)
      Each Lender severally agrees, upon the terms and subject to the conditions set
forth in this Agreement, at any time from and after the Closing Date until the Business Day
next preceding the Revolving Commitment Termination Date, to make revolving loans (each a
“Revolving Loan”) to the Borrower; provided that (A) the sum of all Revolving Loans
outstanding plus all Bid Loans outstanding shall not exceed the Revolving Committed Amount
and (B) with respect to each individual Lender, such Lender’s pro rata share of outstanding
Revolving Loans shall not exceed such Lender’s Revolving Commitment Percentage of the
Revolving Committed Amount.

            (ii)
      Revolving Loans may be voluntarily prepaid pursuant to Section 2.8(c) and,
subject to the provisions of this Agreement, any amounts so prepaid or otherwise repaid in
accordance with their terms may be re-borrowed, up to the amount available under this
Section 2.1 at the time of such reborrowing.

          (b)
      Type of Loans and Amounts.

            (i)
      Loans made under this Section 2.1 may be Base Rate Loans or Euro-Dollar
Rate Loans, subject, however, to Sections 2.4(c) and 2.12.

            (ii)
      Each Borrowing of Revolving Loans shall be in a minimum aggregate amount of
$1,000,000 and integral multiples of $100,000 in excess thereof, in the case of a Borrowing
of

17

 

Base Rate Loans, or a minimum aggregate amount of $5,000,000 and integral multiples of
$1,000,000 in excess thereof, in the case of a Borrowing of Euro-Dollar Rate Loans.

          (c)
      Notice of Borrowing.

            (i)
      When
the Borrower desires to borrow Revolving Loans pursuant to this Section
2.1, it shall provide telephonic notice to the Agent followed promptly by a written
Notice of Borrowing substantially in the form of Exhibit 2.1(c), duly completed and
executed by a Responsible Officer (a “Notice of Borrowing”), (A) no later than 10:00
a.m. on the proposed Funding Date, in the case of a Borrowing of Base Rate Loans, or (B) no
later than 10:00 a.m. at least three Euro-Dollar Business Days before the proposed Funding
Date, in the case of a Borrowing of Euro-Dollar Rate Loans.

            (ii)
      No Lender Party shall incur any liability to the Borrower or the other Lender
Parties in acting upon any telephonic notice that such Lender Party believes to have been
given by a Responsible Officer or for otherwise acting in good faith under this Section
2.1 and in making any Loan in accordance with this Agreement pursuant to any telephonic
notice and, upon funding of Revolving Loans by any Lender in accordance with this Agreement
pursuant to any such telephonic notice, the Borrower shall have effected Revolving Loans
hereunder.

            (iii)
     The Borrower shall notify the Agent of the names of its officers and employees
authorized to request and take other actions with respect to Loans on behalf of the Borrower
(each a “Responsible Officer”) by providing the Agent with a Notice of Responsible
Officers substantially in the form of Exhibit 2.1(c)(iii), duly completed and
executed by a Senior Officer (a “Notice of Responsible Officers”). The Agent shall
be entitled to rely conclusively on a Responsible Officer’s authority to request and take
other actions with respect to Loans on behalf of the Borrower until the Agent receives a new
Notice of Responsible Officers that no longer designates such Person as a Responsible
Officer.

            (iv)
      Any Notice of Borrowing (or telephonic notice) delivered pursuant to this
Section 2.1 shall be irrevocable and, subject to Section 2.12(a), the
Borrower shall be bound to make a Borrowing in accordance therewith.

            (v)
      The Agent shall promptly notify each Lender of the contents of any Notice of
Borrowing (or telephonic notice) received by it, and such Lender’s pro rata portion of the
Borrowing requested. Prior to 11:00 a.m. on the date specified in such notice as the
Funding Date, each Lender, subject to the terms and conditions hereof, shall make its pro
rata portion of the Borrowing available, in Dollars and in immediately available funds, to
the Agent at the Agent’s Account.

          (d)
      Funding. Not later than 1:00 p.m. on the applicable Funding Date or such later
time as may be agreed to by the Borrower and the Agent, and subject to and upon satisfaction of the
applicable conditions set forth in Article 3 as determined by the Agent, the Agent shall, upon
receipt of the proceeds of the requested Loans, make such proceeds available to the Borrower in
Dollars in immediately available funds in the Borrower Account.

          (e)
      Several Obligations; Funding by Lenders; Presumption by Agent. The obligations of
the Lenders hereunder to make Revolving Loans and to make payments pursuant to Section
9.2(b) are several and not joint. The failure of any Lender to make any Revolving Loan, to
fund any such participation or to
make any payment under Section 9.2(b) on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of

18

 

any other Lender to so make its Revolving Loan, to purchase its
participation or to make its payment under Section 9.2(b). Unless the Agent shall have
received notice from a Lender prior to the proposed date of any borrowing of Euro-Dollar Rate Loans
(or, in the case of any borrowing of Base Rate Loans, prior to 11:00 a.m. on the date of such
borrowing) that such Lender will not make available to the Agent such Lender’s share of such
Revolving Loan, the Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.1(c) (or, in the case of a borrowing of Base Rate Loans, that
such Lender has made such share available in accordance with and at the time required by
Section 2.1(c)) and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of the applicable
borrowing available to the Agent, then the applicable Lender agrees to pay to the Agent forthwith
on demand such corresponding amount in immediately available funds with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Agent at the greater of the Federal Funds Rate and a rate determined by the
Agent in accordance with banking industry rules on interbank compensation. If such Lender has not
paid such amount to the Agent within two Business Days following the Agent’s demand therefor, then
the Borrower agrees to pay to the Agent forthwith on demand such corresponding amount in
immediately available funds with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment to the Agent at the
interest rate applicable to Base Rate Loans. If the Borrower and such Lender shall pay interest to
the Agent for the same or an overlapping period, the Agent shall promptly remit to the Borrower the
amount of such interest paid by the Borrower for such period. If such Lender pays its share of the
applicable Revolving Loan to the Agent, then the amount so paid shall constitute such Lender’s
Revolving Loan included in such Borrowing. Any payment by the Borrower shall be without prejudice
to any claim the Borrower may have against a Lender that shall have failed to make such payment to
the Agent. A notice of the Agent to any Lender or the Borrower with respect to any amount owing
under this subsection (e) shall be conclusive, absent manifest error.

          Section 2.2.     Bid Loans.

            (a)
      General Terms. At any time prior to the Business Day immediately preceding
the Revolving Commitment Termination Date, the Borrower may request the Lenders to make
offers to make bid loans to the Borrower (each a “Bid Loan”); provided that
(i) the sum of all Bid Loans outstanding plus all Revolving Loans outstanding shall not
exceed the Revolving Committed Amount; (ii) the aggregate amount of Bid Loans requested for
any Funding Date and with the same Interest Period (each a “Bid Loan Borrowing”)
shall be at least $2,000,000 and in integral multiples of $1,000,000 in excess thereof; and
(iii) all Interest Periods applicable to Bid Loans shall be subject to Section
2.4(c). The Lenders may, but shall have no obligation to, make such offers, and the
Borrower may, but shall have no obligation to, accept any such offers in the manner set
forth in this Section 2.2.

            (b)
      Bid Loan Procedures.

            (i)
      When the Borrower wishes to request offers to make Bid Loans, it shall
provide telephonic notice to the Agent (which shall promptly notify the Lenders)
followed promptly by written notice substantially in the form of Exhibit
2.2(b)(i), duly completed and executed by a Responsible Officer (a “Bid Loan
Quote Request”), so as to be received no later than 10:00 a.m. on the second
Business Day before the proposed Funding Date (or such other time and date as the
Borrower and the Agent, with the consent of the Required Lenders, may agree).
Subject to Section 2.4(c), the Borrower
may request offers for up to three different Bid Loan Borrowings in a single
Bid Loan Quote Request, in which case such Bid Loan Quote Request shall be deemed a
separate

19

 

Bid Loan Quote Request for each such Borrowing. Except as otherwise
provided in this Section 2.2, no Bid Loan Quote Request shall be given
within five Business Days (or such other number of days as the Borrower and the
Agent, with the consent of the Required Lenders, may agree) of any other Bid Loan
Quote Request.

            (ii)
      Each Lender may, but shall not be obligated to, in response to any Bid
Loan Quote Request submit one or more written quotes substantially in the form of
Exhibit 2.2(b)(ii), duly completed (each a “Bid Loan Quote”), each
containing an offer to make a Bid Loan for the Interest Period requested and setting
forth the Absolute Rate to be applicable to the Bid Loan;
provided that (A) a Lender
may make a single submission containing one or more Bid Loan Quotes in response to
several Bid Loan Quote Requests given at the same time; and (B) the principal amount
of the Bid Loan for which each such offer is being made shall be at least $2,000,000
and multiples of $l,000,000 in excess thereof; provided that the aggregate
principal amount of all Bid Loans for which a Lender submits Bid Loan Quotes (1) may
be greater or less than the Revolving Commitment of such Lender but (2) may not
exceed the principal amount of the Bid Loan Borrowing for which offers were
requested. Each Bid Loan Quote by a Lender other than the Agent must be submitted
to the Agent by fax not later than 8:00 a.m. on the Funding Date (or such other time
and date as the Borrower and the Agent, with the consent of the Required Lenders,
may agree); provided that any Bid Loan Quote may be submitted by the Agent,
in its capacity as a Lender, only if the Agent notifies the Borrower of the terms of
the offer contained therein not later than 7:45 a.m. on the Funding Date. Subject
to Sections 3 and 7.2, any Bid Loan Quote so made shall be
irrevocable except with the consent of the Agent given on the instructions of the
Borrower. Unless otherwise agreed by the Agent and the Borrower, no Bid Loan Quote
shall contain qualifying, conditional or similar language or propose terms other
than or in addition to those set forth in the applicable Bid Loan Quote Request and,
in particular, no Bid Loan Quote may be conditioned upon acceptance by the Borrower
of all (or some specified minimum) of the principal amount of the Bid Loan for which
such Bid Loan Quote is being made.

           
(iii)      The Agent shall, as promptly as practicable after any Bid Loan Quote is
submitted (but in any event not later than 8:30 a.m. on the Funding Date, or 7:45
a.m. on the Funding Date with respect to any Bid Loan Quote submitted by the Agent,
in its capacity as a Lender), notify the Borrower of the terms (A) of any Bid Loan
Quote submitted by a Lender that is in accordance with Section 2.2(b)(ii)
and (B) of any Bid Loan Quote that amends, modifies or is otherwise inconsistent
with a previous Bid Loan Quote submitted by such Lender with respect to the same Bid
Loan Quote Request. Any subsequent Bid Loan Quote shall be disregarded by the Agent
unless the subsequent Bid Loan Quote is submitted solely to correct a manifest error
in a former Bid Loan Quote. The Agent’s notice to the Borrower shall specify (1)
the aggregate principal amount of the Bid Loan Borrowing for which offers have been
received and (2) (A) the respective principal amounts and (B) the rates of interest
(which shall be expressed as an absolute number and not in terms of a specified
margin over the quoting Lender’s cost of funds) (the “Absolute Rate”) so
offered by each Lender (identifying the Lender that made each such Bid Loan Quote).

            (iv)
      Not later than 9:00 a.m. on the Funding Date (or such other time and date
as the Borrower and the Agent, with the consent of each Lender that has submitted a
Bid Loan Quote may agree), the Borrower shall notify the Agent of its acceptance or
nonacceptance of the offers so notified to it pursuant to Section
2.2(b)(iii) (and the failure of the Borrower to give such notice by such time
shall constitute nonacceptance), and the

20

 

Agent shall promptly notify each affected
Lender. In the case of acceptance, such notice shall specify the aggregate
principal amount of offers for each Interest Period that are accepted. The Borrower
may accept any Bid Loan Quote in whole or in part; provided that (A) any Bid
Loan Quote accepted in part shall be at least $1,000,000 and multiples of $1,000,000
in excess thereof; (B) the aggregate principal amount of each Bid Loan Borrowing may
not exceed the applicable amount set forth in the related Bid Loan Quote Request;
(C) the aggregate principal amount of each Bid Loan Borrowing shall be at least
$2,000,000 and multiples of $1,000,000 and shall not cause the limits specified in
Section 2.2(a) to be violated; (D) acceptance of offers may be made only in
ascending order of Absolute Rates, beginning with the lowest rate so offered; and
(E) the Borrower may not accept any offer where the Agent has advised the Borrower
that such offer fails to comply with Section 2.2(b)(ii) or otherwise fails
to comply with the requirements of this Agreement (including Section
2.2(a)). If offers are made by two or more Lenders with the same Absolute Rates
for a greater aggregate principal amount than the amount in respect of which offers
are accepted for the related Interest Period, the principal amount of Bid Loans in
respect of which such offers are accepted shall be allocated by the Borrower among
such Lenders as nearly as possible (in amounts of at least $1,000,000 and multiples
of $500,000 in excess thereof) in proportion to the aggregate principal amount of
such offers. Determinations by the Borrower of the amounts of Bid Loans shall be
conclusive in the absence of manifest error. Notwithstanding anything else
contained herein, the Borrower shall have no obligation to accept any Bid Loan Quote
by a Defaulting Lender.

            (v)
      Subject to the terms set forth in this Agreement, any Lender whose offer to
make any Bid Loan has been accepted shall, prior to 10:00 a.m. on the date specified
for the making of such Loan, make the amount of such Loan available to the Agent at
the Agent’s Account in immediately available funds, for the account of the Borrower.
The amount so received by the Agent shall, subject to the terms and conditions of
this Agreement, be made available to the Borrower on or before 11:00 a.m. on such
date by depositing the same, in immediately available funds, in the Borrower
Account.

          Section 2.3.     Use of Proceeds.

          The proceeds of the Loans shall be used by the Borrower only for working capital, capital
expenditures and other lawful general corporate purposes of the Borrower and its Subsidiaries,
including (a) loans made by the Borrower to its Subsidiaries and (b) the payment of commercial
paper. No part of the proceeds of the Loans shall be used directly or indirectly for the purpose,
whether immediate, incidental or ultimate, of purchasing or carrying any Margin Stock or
maintaining or extending credit to others for such purpose or for any other purpose that otherwise
violates the Margin Regulations. Notwithstanding the foregoing, the proceeds of the Loans shall
not be used to finance any acquisition of all or substantially all of the Capital Stock of another
Person unless the board of directors (or other comparable governing body) of such Person has duly
approved such acquisition.

          Section 2.4.     Interest; Interest Periods; Conversion/Continuation.

            (a)
      Interest Rate and Payment.

            (i)
      Each Loan shall bear interest on the unpaid principal amount thereof, from
and including the date of the making of such Loan to and excluding the due date or
the date of any repayment thereof, at the following rates per annum: (A) for so
long as and to the extent that such Loan is a Base Rate Loan, at the Base Rate plus
the Applicable

21

 

Margin; (B) for so long as and to the extent that such Loan is a
Euro-Dollar Rate Loan, at the Euro-Dollar Rate for each Interest Period applicable
thereto plus the Applicable
Margin; and (C) if such Loan is a Bid Loan, at the
Absolute Rate quoted by the Lender making such Bid Loan pursuant to Section
2.2(b)(ii).

            (ii)
      Notwithstanding the foregoing provisions of this Section 2.4(a),
(A) during the existence of an Event of Default pursuant to Section
7.1(a)(i), such overdue principal shall bear interest at a rate per annum equal
to the Post-Default Rate, without notice or demand of any kind and (B) during the
existence of any Event of Default (other than pursuant to Section
7.1(a)(i)), any principal, overdue interest or other amount payable under this
Agreement and the other Loan Documents shall, at the request of the Required
Lenders, bear interest at a rate per annum equal to the Post-Default Rate.

            (iii)      Accrued interest shall be payable in arrears (A) in the case of a Base
Rate Loan, on the last Business Day of each month; (B) in the case of a Euro-Dollar
Rate Loan, on the last day of each Interest Period applicable
thereto; provided that
if the Interest Period applicable to a Euro-Dollar Rate Loan is longer than three
months, interest also shall be payable on the last day of the third month of such
Interest Period; (C) in the case of a Bid Loan, on the last day of the Interest
Period applicable thereto; and (D) in the case of any Loan, when the Loan shall
become due, whether by reason of maturity, mandatory prepayment, acceleration or
otherwise. The Agent shall provide a billing to the Borrower setting forth the
amount of interest payable in sufficient time for the Borrower to make timely
payments of the correct amount without incurring any penalty or interest at the
Post-Default Rate.

           (b)       Conversion or Continuation of Revolving Loans.

            (i)
      Subject to this Section 2.4(b) and Sections 2.4(c) and
2.14, the Borrower shall have the option (A) at any time, to convert all or
any part of its outstanding Base Rate Loans to Euro-Dollar Rate Loans, and (B) on
the last day of the Interest Period applicable thereto, to (1) convert all or any
part of its outstanding Euro-Dollar Rate Loans to Base Rate Loans, or (2) to
continue all or any part of its Euro-Dollar Rate Loans as Loans of the same Type;
provided that, in the case of clause (A) or (B) (2), there does not exist a Default
or an Event of Default at such time. If a Default or an Event of Default shall
exist upon the expiration of the Interest Period applicable to any Euro-Dollar Rate
Loan, such Euro-Dollar Rate Loan automatically shall be converted into a Base Rate
Loan.

            (ii)
      If the Borrower elects to convert or continue a Revolving Loan under this
Section 2.4(b), it shall provide telephonic notice to the Agent (which shall
promptly notify the Lenders) followed promptly by a written Notice of
Conversion/Continuation substantially in the form of Exhibit 2.4(b)(ii),
duly completed and executed by a Responsible Officer (a “Notice of
Continuation/Conversion”) (A) not later than 10:00 a.m. at least three
Euro-Dollar Business Days before the proposed conversion or continuation date, if
the Borrower proposes to convert into, or to continue, a Euro-Dollar Rate Loan, and
(B) otherwise not later than 10:00 a.m. on the Business Day next preceding the
proposed conversion or continuation date.

            (iii)
     No Lender Party shall incur any liability to the Borrower or any other
Lender Party in acting upon any telephonic notice that such Lender Party
believes to have been given by a Responsible Officer or for otherwise acting in good
faith under this

22

 

Section 2.4(b) in converting or continuing any Loan (or a
part thereof) pursuant to any telephonic notice.

            (iv)
      Any Notice of Conversion/Continuation (or telephonic notice) shall be
irrevocable and the Borrower shall be bound to convert or continue in accordance
therewith. If any request for the conversion or continuation of a Loan is not made
in accordance with this Section 2.4(b), or if no notice is so given with
respect to a Euro-Dollar Rate Loan as to which the Interest Period expires, then
such Euro-Dollar Rate Loan automatically shall be converted into a Base Rate Loan.

            (v)
      Bid Loans may not be continued or converted but instead must be repaid in
full at the end of the applicable Interest Period.

           (c)
      Interest Periods and Minimum Amounts. Notwithstanding anything herein to
the contrary, (i) all Interest Periods applicable to Euro-Dollar Rate Loans and Bid Loans
shall comply with the definition of “Interest Period,” and (ii) there may be no more than
ten different Interest Periods for all Euro-Dollar Rate Loans and Bid Loans outstanding at
any one time. For purposes of the foregoing clause (ii), Interest Periods applicable to
Loans of different Types shall constitute different Interest Periods even if they are
coterminous.

           (d)
      Computations. Interest on each Loan and all Fees and other amounts payable
hereunder or under the other Loan Documents shall be computed on the basis of a 360-day year
or, in the case of interest on Base Rate Loans, a 365 or 366-day year, as the case may be,
for the actual number of days elapsed including the first day but excluding the last day on
which such Loan is outstanding (it being understood and agreed that if a Loan is borrowed
and repaid on the same day, one day’s interest shall be payable with respect to such Loan).
Any change in the interest rate on any Loan or other amount resulting from a change in the
rate applicable thereto (or any component thereof, including the Applicable Margin) pursuant
to the terms hereof shall become effective as of the opening of business on the day on which
such change in the applicable rate (or component) shall become effective. Each
determination of an interest rate by the Agent pursuant to any provision of this Agreement
shall be conclusive and binding on all parties for all purposes, in the absence of manifest
error.

           (e)
      Maximum Lawful Rate of Interest. The rate of interest payable on any Loan
or other amount shall in no event exceed the maximum rate of non-usurious interest
permissible under Applicable Law. If the rate of interest payable on any Loan or other
amount is ever reduced as a result of this Section 2.4(e) and at any time thereafter
the maximum rate permitted by Applicable Law shall exceed the rate of interest provided for
in this Agreement, then the rate provided for in this Agreement shall be increased to the
maximum rate provided by Applicable Law for such period as is required so that the total
amount of interest received by the Lenders is that which would have been received by the
Lenders but for the operation of the first sentence of this Section 2.4(e).

          Section 2.5.     Notes, Etc.

           (a)
       Loans Evidenced by Notes. The Revolving Loans made by each Lender shall be
evidenced by a single Revolving Loan Note payable to such Lender. The Bid Loans made by
each Lender shall be evidenced by a single Bid Loan Note payable to such Lender. Each Note
shall, by its terms, mature in accordance with the provisions of this Agreement applicable
to the
relevant Loans.

23

 

           (b)
      Notation of Amounts and Maturities, Etc. Each Lender is hereby irrevocably
authorized to record on the schedule attached to its Notes (or a continuation thereof) the
information contemplated by such schedule. The failure to record, or any error in
recording, any such information shall not, however, affect the obligations of the Borrower
hereunder or under any Note to repay the principal amount of the Loans evidenced thereby,
together with all interest accrued thereon. All such notations shall constitute conclusive
evidence of the accuracy of the information so recorded, in the absence of manifest error.

          Section 2.6.     Fees.

           (a)
      Facility Fee. The Borrower shall pay to the Agent, for the pro rata
benefit of the Lenders, a per annum facility fee (the “Facility Fee”) equal to the
Applicable Margin for the Facility Fee, in effect from time to time, based upon the then
Revolving Committed Amount, whether or not used, for each day from and after the Closing
Date until the Revolving Commitment Termination Date, provided that no Facility Fee
shall accrue on any unfunded portion of the Revolving Commitment of a Defaulting Lender so
long as such Lender shall be a Defaulting Lender. The Facility Fee shall be payable
quarterly in arrears on the last day of each calendar quarter and on the Revolving
Commitment Termination Date. The Agent shall provide a billing to the Borrower setting
forth the amount of the Facility Fee payable in sufficient time for the Borrower to make
timely payments of the correct amount without incurring any penalty or interest at the
Post-Default Rate.

           (b)
      Other Fees. On the Closing Date and from time to time thereafter as
specified in the Fee Letter, the Borrower shall pay to the Agent the fees specified in the
Fee Letter.

           (c)
      Fees Non-Refundable. All Fees shall be fully earned when payable hereunder
or under the Fee Letter and shall be non-refundable.

          Section 2.7.     Termination and Reduction of Revolving Commitments.

           (a) 
      Automatic Termination. Each Lender’s Revolving Commitment shall terminate
without further action on the part of such Lender on the earlier to occur of (i) the
Maturity Date, and (ii) the date of complete (but not partial) termination of the Revolving
Commitments pursuant to Section 2.7(b) or Section 7.2 (such earlier date
being referred to herein as the “Revolving Commitment Termination Date”).

           (b)
       Voluntary Reductions. Upon not less than five Business Days’ prior written
notice to the Agent, the Borrower shall have the right, at any time or from time to time
after the Closing Date, to terminate in whole or permanently reduce in part, without premium
or penalty, the Revolving Committed Amount to an amount not less than the then aggregate
principal amount of all outstanding Loans. Any such termination or partial reduction shall
be effective on the date specified in the Borrower’s notice, and any such partial reduction
shall be in a minimum amount of $10,000,000 and in integral multiples of $1,000,000 in
excess thereof.

           (c)
       Change of Control. If a Change of Control shall occur (a) the Borrower
will, within ten days after the occurrence thereof, give the Agent notice thereof and shall
describe in reasonable detail the facts and circumstances giving rise thereto and (b) each
Lender may, by three Business Days’ notice to the Borrower and the Agent given not later
than 90 days after receipt of such notice of Change of Control, terminate its Revolving
Commitment, which shall
thereupon be terminated, and declare the Notes held by it (together with accrued
interest thereon) and any other amounts payable hereunder for its account to be, and such
Notes and such other

24

 

amounts shall thereupon become, immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

          Section 2.8.     Repayments and Prepayments.

           (a)
       Repayment. The unpaid principal amount of all Loans, together with accrued
but unpaid interest and all other sums owing thereunder shall be due and payable in full on
the Revolving Commitment Termination Date.

           (b)
       Excess Revolving Loans. If at any time the aggregate principal amount of
all outstanding Loans exceeds the Revolving Committed Amount, the Borrower shall, not later
than the Business Day after the Borrower learns or is notified of the excess, make mandatory
prepayments of the Revolving Loans as may be necessary so that, after such prepayment, such
excess is eliminated.

           (c)
       Optional Prepayments.

            (i)
      Subject to this Section 2.8(c), the Borrower may, at its option, at
any time or from time to time, prepay Revolving Loans in whole or in part, without
premium or penalty, provided that (A) any prepayment shall be in an aggregate
principal amount of at least $5,000,000 and in integral multiples of $1,000,000 in
excess thereof (or, alternatively, the whole amount of Revolving Loans then
outstanding) and (B) any prepayment of a Euro-Dollar Rate Loan on a day other than
the last day of the Interest Period applicable thereto shall be made together with
the amounts payable pursuant to Section 2.14. Bid Loans may not be
voluntarily prepaid at any time.

            (ii)
     If the Borrower elects to prepay a Revolving Loan under this Section
2.8(c), it shall deliver to the Agent a notice of optional prepayment (A) with
respect to a Base Rate Loan, not later than 10:00 a.m. on the proposed repayment
date or (B) with respect to a Euro-Dollar Rate Loan, not later than 10:00 a.m. at
least three Business Days before the proposed prepayment date. Any notice of
optional prepayment shall be irrevocable, and the payment amount specified in such
notice shall be due and payable on the date specified in such notice, together with
interest accrued thereon to such date.

           (d)
       Payments Set Aside. To the extent the Agent or any Lender receives payment
of any amount under the Loan Documents, whether by way of payment by the Borrower, set-off
or otherwise, which payment is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any other party
under any bankruptcy law, other law or equitable cause, in whole or in part, then, to the
extent of such payment received, the Obligations or part thereof intended to be satisfied
thereby shall be revived and continue in full force and effect.

          Section 2.9.     Manner of Payment.

           (a)
       All payments to be made by the Borrower shall be made without condition or
deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise
expressly provided, the Borrower shall make each payment under the Loan Documents to the
Agent, in Dollars and in immediately available funds at the Agent’s Office, for the account
of the Applicable Lending Offices of the Lenders entitled to such payment, by depositing
such payment
in the Agent’s Account not later than 11:00 a.m. on the due date thereof. Any payments
received

25

 

after 11:00 a.m. on any Business Day shall be deemed received on the next
succeeding Business Day. Not later than 12:00 Noon on the day such payment is made, the
Agent shall deliver to each Lender, for the account of the Lender’s Applicable Lending
Office, in Dollars and in immediately available funds, such Lender’s share of the payment so
made. Delivery shall be made in accordance with the written instructions satisfactory to
the Agent from time to time given to the Agent by each Lender.

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

           (c)
       If the Agent shall fail to deliver to any other Lender Party its share of any
payment received from the Borrower as and when required by Section 2.9(a), the Agent
shall pay to such Lender its share of such payment together with interest on such amount at
the Federal Funds Rate, for each day from the date such amount was required to be paid to
such Lender until the date the Agent pays such amount to such Lender.

           (d)
       Subject to Sections 2.10 and 7.3, all payments made by the Borrower
under the Loan Documents shall be applied to the Obligations as the Borrower may direct;
provided that if the Borrower does not provide any such direction to the Agent, all amounts
paid or received shall be applied, subject to Section 2.10, as the Agent may
reasonably deem appropriate.

           (e)
       Whenever any payment to be made hereunder shall be stated to be due on a day that
is not a Business Day, such payment shall instead by made on the next succeeding Business
Day (subject to accrual of interest and fees for the period of extension), except that, in
the case of Euro-Dollar Rate Loans, if the extension would cause the payment to be made in
the next following calendar month, then such payment shall instead be made on the preceding
Business Day.

          Section 2.10.    Pro Rata Treatment.

          Except to the extent otherwise expressly provided herein,

           (a)
       Revolving Loans shall be made by the Lenders pro rata according to their respective
Revolving Commitment Percentages.

           (b)
       Each reduction of the Revolving Committed Amount and each payment of Revolving
Loans, interest on Revolving Loans and Facility Fees shall be applied pro rata among the
Lenders according to their respective Revolving Commitment Percentages.

           (c)
       Each payment by the Borrower of principal of Bid Loans made as part of the same
Borrowing shall be made and applied for the account of the Lenders holding such Bid Loans
pro rata according to the respective unpaid principal amount of such Bid Loans owed to
such Lenders and each payment by the Borrower of interest on Bid Loans shall be made
and

26

 

applied for the account of the Lenders holding such Bid Loans pro rata according to the
respective accrued but unpaid interest on the Bid Loans owed to such Lenders.

          Section 2.11    Sharing of Payments.

          The Lenders agree among themselves that, except to the extent otherwise provided herein, in
the event that any Lender shall obtain payment in respect of any Loan, or any other obligation
owing to such Lender under this Agreement through the exercise of a right of setoff, banker’s lien
or counterclaim, or pursuant to a secured claim under Section 506 of the Bankruptcy Code or other
security or interest arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, in
excess of its pro rata share of such payment as provided for in this Agreement, such Lender shall
promptly pay in cash or purchase from the other Lenders a participation in such Loans and other
obligations in such amounts, and make such other adjustments from time to time, as shall be
equitable to the end that all Lenders share such payment in accordance with their respective
ratable shares as provided for in this Agreement. The Lenders further agree among themselves that
if payment to a Lender obtained by such Lender through the exercise of a right of setoff, banker’s
lien, counterclaim or other event as aforesaid shall be rescinded or must otherwise be restored,
each Lender which shall have shared the benefit of such payment shall, by payment in cash or a
repurchase of a participation theretofore sold, return its share of that benefit (together with its
share of any accrued interest payable with respect thereto) to each Lender whose payment shall have
been rescinded or otherwise restored. Except as otherwise expressly provided in this Agreement, if
any Lender or the Agent shall fail to remit to any other Lender an amount payable by such Lender or
the Agent to such other Lender pursuant to this Agreement on the date when such amount is due, such
payments shall be made together with interest thereon for each date from the date such amount is
due until the date such amount is paid to the Agent or such other Lender at a rate per annum equal
to the Federal Funds Rate. If under any applicable bankruptcy, insolvency or other similar law,
any Lender receives a secured claim in lieu of a setoff to which this Section 2.11 applies,
such Lender shall, to the extent practicable, exercise its rights in respect of such secured claim
in a manner consistent with the rights of the Lenders under this Section 2.11 to share in
the benefits of any recovery on such secured claim.

          Section 2.12.    Mandatory Suspension and Conversion of Euro-Dollar Rate Loans.

          Each Lender’s obligation to make, continue or convert Loans into Euro-Dollar Rate Loans shall
be suspended, all outstanding Euro-Dollar Rate Loans shall be converted into Base Rate Loans (other
than Base Rate Loans as to which the interest rate is based on the Interbank Offered Rate) on the
last day of the respective Interest Periods applicable thereto (or, if earlier, in the case of
Section 2.12(b), on the last day that such Lender can lawfully continue to maintain
Euro-Dollar Rate Loans) and all pending requests for the making or continuation of, or conversion
into, Euro-Dollar Rate Loans shall be considered requests for the making or conversion into Base
Rate Loans (other than Base Rate Loans as to which the interest rate is based on the Interbank
Offered Rate) (or, in the case of requests for conversion, disregarded) on the same Funding Date or
the end of the currently applicable Interest Period, as applicable, if:

           (a)
       on or prior to the determination of the interest rate for a Euro-Dollar Rate Loan
for any Interest Period, the Agent determines that for any reason appropriate quotations (as
referenced in the definition of “Interbank Offered Rate” appearing in Section 1.1)
are not available to the Agent in the relevant interbank market for purposes of determining
the Euro-Dollar Rate, or a Lender advises the Agent (which shall thereupon notify the
Borrower and the other Lenders) that such rate would not accurately reflect the cost to such
Lender of making, continuing, or converting a Loan into, a Euro-Dollar Rate Loan for such
Interest Period; or

27

 

           (b)
       after the date hereof, a Lender notifies the Agent (which shall thereupon notify
the Borrower and the other Lenders) of its determination that any Regulatory Change makes it
unlawful or impossible for such Lender or its Euro-Dollar Lending Office to make or maintain
any Euro-Dollar Rate Loan or any Base Rate Loan as to which the interest rate is based on
the Interbank Offered Rate, or to comply with its obligations hereunder in respect thereof;
provided, however, that if the Euro-Dollar Lending Office of any affected Lender is other
than the affected Lender’s main office, before giving such notice, such affected Lender
agrees to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Euro-Dollar Lending Office if such
designation will avoid the need for giving such notice and will not be otherwise materially
disadvantageous to such Lender.

          Section 2.13.   Regulatory Changes.

           (a)
       Increased Costs. If, on or after the date hereof, any Regulatory Change
shall impose, modify, or deem applicable any reserve, special deposit, compulsory loan,
insurance or similar requirement (other than any such requirement with respect to any
Euro-Dollar Rate Loan to the extent included in the Euro-Dollar Reserve Requirement),
against, or any fees or charges in respect of, assets held by, deposits with or other
liabilities for the account of, commitments of, advances or Loans by or other credit
extended by, any Lender Party (or its Applicable Lending Office) or shall impose on any
Lender Party (or its Applicable Lending Office) or on the relevant interbank market any
other condition affecting any Euro-Dollar Rate Loan, or any obligation to make Euro-Dollar
Rate Loans, and the effect of the foregoing is (i) to increase the cost to such Lender Party
(or its Applicable Lending Office) of making, issuing, renewing or maintaining any
Euro-Dollar Rate Loan or its Revolving Commitment in respect thereof or (ii) to reduce the
amount of any sum received or receivable by such Lender Party (or its Applicable Lending
Office) hereunder or under any other Loan Document with respect thereto, then, the Borrower
shall from time to time pay to such Lender Party, within 15 days after request by such
Lender Party, such additional amounts as are necessary, in such Lender Party’s reasonable
determination, to compensate such Lender Party for such increased cost or reduction;
provided, however, that if the Euro-Dollar Lending Office of any affected Lender is other
than the affected Lender’s main office, before giving such notice, such affected Lender
agrees to use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions) to designate a different Euro-Dollar Lending Office if such
designation will avoid the need for giving such notice and will not be otherwise materially
disadvantageous to such Lender.

           (b)
       Capital Costs. If a Regulatory Change after the date hereof regarding
capital adequacy (including the adoption or becoming effective of any treaty, law, rule,
regulation or guideline adopted pursuant to or arising out of the July 1988 report of the
Basle Committee on Banking Regulations and Supervisory Practices entitled “International
Convergence of Capital Measurement and Capital Standards”) has or would have the effect of
reducing the rate of return on the capital of or maintained by any Lender or any company
controlling such Lender as a consequence of such Lender’s Loans or obligations hereunder and
other commitments of this type to a level below that which such Lender or company could have
achieved but for such Regulatory Change (taking into account such Lender’s or company’s
policies with respect to capital adequacy), then the Borrower shall from time to time pay to
such Lender, within 15 days after request by such Lender, such additional amounts as are
necessary in such Lender’s reasonable determination to compensate such Lender or company for
such reduction in return, to the extent such Lender or company determines such reduction to
be attributable to the existence of obligations for the account of the Borrower.

28

 

          Section 2.14.    Compensation for Funding Losses.

          The Borrower shall pay to any Lender, upon demand by such Lender, such amount or amounts as
such Lender reasonably determines is or are necessary to compensate it for any loss, cost, expense
or liabilities incurred (including any loss, cost, expense or liability incurred by reason of the
liquidation or redeployment of deposits) by it as a result of (a) any payment, prepayment or
conversion of any Euro-Dollar Rate Loan for any reason (including by reason of a prepayment
pursuant to Section 2.8(b) or an acceleration pursuant to Section 7.2, but
excluding any prepayment pursuant to Section 2.1(e)) on a date other than the last day of
an Interest Period applicable to such Euro-Dollar Rate Loan, or (b) any Euro-Dollar Rate Loan for
any reason not being made (other than a wrongful failure to fund by such Lender or failure to make
such a Loan due to circumstances described in Section 2.12), converted or continued, or any
payment of principal of or interest thereon not being made, on the date therefor determined in
accordance with the applicable provisions of this Agreement or (c) for any prepayment of a Bid Loan
due to acceleration pursuant to Section 7.2 or otherwise. Notwithstanding the foregoing,
the Borrower shall not be responsible to any Lender for any costs hereunder that result from the
application of Section 2.12 or from any wrongful actions or omissions or default (including
under Section 2.1(e)) of such Lender.

          Section 2.15.    Certificates Regarding Yield Protection, Etc.

          Any request by any Lender Party for payment of additional amounts pursuant to Sections
2.13, 2.14 and 2.16 shall be accompanied by a certificate of such Lender Party
setting forth the basis and amount of such request. In determining the amount of such payment,
such Lender Party may use such reasonable attribution or averaging methods as it deems appropriate
and practical.

          Section 2.16    Taxes.

           (a)
       Tax Liabilities Imposed on a Lender. Any and all payments by the Borrower
hereunder or under any of the Loan Documents shall be made, in accordance with the terms
hereof and thereof, subject to the provisions of this Section 2.16 and Section
2.17, free and clear of and without deduction for any and all Taxes other than Excluded
Taxes. If the Borrower shall be required by law to deduct any Taxes from or in respect of
any sum payable hereunder to any Lender, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.16) such Lender receives an amount
equal to the sum it would have received had no such deductions been made, (ii) the Borrower
shall make such deductions, (iii) the Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with Applicable Law, and (iv) the Borrower
shall deliver to such Lender evidence of such payment to the relevant Governmental
Authority. Notwithstanding any other provision of this Section 2.16, the Borrower
shall not be required to pay any additional amounts pursuant to this Section 2.16(a)
with respect to Taxes that are attributable to such Lender’s failure to fully comply with
Section 2.16(c) and/or the certifications provided by such Lender being inaccurate.

           (b)
       Other Taxes. In addition, the Borrower agrees to pay, upon written notice
from a Lender and prior to the date when penalties attach thereto, all other Taxes (other
than Excluded Taxes) that arise from any payment made hereunder or from the execution,
delivery or registration of, or otherwise with respect to, this Agreement.

           (c)
       Foreign Lender. Each Lender (which, for purposes of this Section
2.16, shall include any Affiliate of a Lender that makes any Euro-Dollar Rate Loan
pursuant to the terms of this Agreement) that is not a “United States person” (as such term
is defined in Section 7701(a)(30) of the Code) shall submit to the Borrower and the Agent on
or before the

29

 

Closing
Date (or, in the case of a Person that becomes a Lender after the Closing Date by
assignment, promptly upon such assignment), two duly completed and signed copies of (A)
either (1) Form W-8BEN or Form W-8ECI of the United States Internal Revenue Service, or a
successor applicable form, certifying that such Lender is entitled to benefits under an
income tax treaty to which the United States is a party which reduces to zero the rate of
withholding tax on payments of interest or certifying that the income receivable pursuant to
this Agreement is effectively connected with the conduct of a trade or business in the
United States, or (B) an Internal Revenue Service Form W-8 or W-9, or a successor applicable
form, entitling such Lender to receive a complete exemption from United States backup
withholding tax. Each such Lender shall, from time to time after submitting either such
form, submit to the Borrower and the Agent such additional duly completed and signed copies
of such forms (or such successor forms or other documents as shall be adopted from time to
time by the relevant United States taxing authorities) as may be (1) reasonably requested in
writing by the Borrower or the Agent and (2) appropriate under then current United States
laws or regulations. Upon the reasonable request of the Borrower or the Agent, each Lender
that has not provided the forms or other documents, as provided above, on the basis of being
a United States person shall submit to the Borrower and the Agent a certificate to the
effect that it is such a “United States person.”

          Section 2.17.    Applicable Lending Office; Discretion of Lenders as to Manner of Funding.

          Each Lender may make, carry or transfer Euro-Dollar Rate Loans at, to, or for the account of
an Affiliate of the Lender, provided that such Lender shall not be entitled to receive, nor shall
the Borrower be required to pay, any greater amount under Sections 2.13 or 2.16 as
a result of the transfer of any such Loan than such Lender would be entitled to receive, or the
Borrower obligated to pay, immediately prior thereto unless (a) such transfer occurred at a time
when circumstances giving rise to the claim for such greater amount did not exist or (b) such claim
would have arisen even if such transfer had not occurred. Notwithstanding any other provision of
this Agreement, each Lender shall be entitled to fund and maintain its funding of all or any part
of its Euro-Dollar Rate Loans in any manner it sees fit, it being understood, however, that for
purposes of this Agreement, all determinations hereunder shall be made as if each Lender had
actually funded and maintained each Euro-Dollar Rate Loan through the purchase of deposits in the
relevant interbank market having a maturity corresponding to such Loan’s Interest Period and
bearing interest at the applicable rate.

          Section 2.18.    Increases in Revolving Commitment.

          Prior to the Maturity Date and upon at least 15 days’ prior written notice to the Agent (which
notice shall be promptly transmitted by the Agent to each Lender), the Borrower shall have the
right, subject to the terms and conditions set forth below, to increase the aggregate amount of the
Revolving Committed Amount; provided that (a) no Default or Event of Default shall exist at the
time of the request or the proposed increase in the Revolving Committed Amount, (b) such increase
must be in a minimum amount of $10,000,000 and in integral multiples of $1,000,000 above such
amount, (c) the Revolving Committed Amount shall not be increased to an amount greater than SEVEN
HUNDRED FIFTY MILLION DOLLARS ($750,000,000) without the prior written consent of the Required
Lenders, (d) the aggregate amount of all increases to the Revolving Committed Amount pursuant to
this Section 2.18 shall not exceed $100,000,000, (e) no individual Lender’s Revolving
Commitment may be increased without such Lender’s written consent, (f) the Borrower shall execute
and deliver such Revolving Loan Note(s) as are necessary to reflect the increase in the Revolving
Committed Amount, (g) Schedule 1.1(c) shall be amended to reflect the revised Revolving
Committed Amount and revised Revolving Commitment Percentages of the Lenders and (h) if any
Revolving Loans are outstanding at the time of an increase in the Revolving Committed Amount, the
Borrower will prepay (provided that any such prepayment shall be subject to Section 2.14)
one or more existing Revolving Loans in an amount necessary such that after

30

 

giving effect to the increase in the Revolving Committed Amount each Lender will hold its pro rata
share (based on its share of the revised Revolving Committed Amount) of outstanding Revolving
Loans.

          Any such increase in the Revolving Committed Amount shall apply, at the option of the
Borrower, to (x) the Revolving Commitment of one or more existing Lenders; provided that any Lender
whose Revolving Commitment is being increased must consent in writing thereto and/or (y) the
creation of a new Revolving Commitment to one or more institutions that is not an existing Lender;
provided that any such institution (A) must conform to the definition of Eligible Assignee, (B)
must have a Revolving Commitment of at least $10,000,000 and (C) must become a Lender under this
Credit Agreement by execution and delivery of an appropriate joinder agreement or of counterparts
to this Credit Agreement in a manner acceptable to the Borrower and the Agent.

ARTICLE 3

CONDITIONS TO LOANS

          Section 3.1.    Closing Conditions.

          The obligation of the Lenders to enter into this Credit Agreement shall be subject to
satisfaction (or waiver) of the following conditions:

           (a)
       Loan Documents. The Agent shall have received duly executed copies of (i)
this Agreement and (ii) the Notes, all of which shall be in form and substance satisfactory
to the Agent and each of the Lenders.

           (b)
       Corporate Documents. The Agent shall have received the following:

            (i)
      Charter Documents. Copies of the articles or certificate of
incorporation of the Borrower certified to be true and complete as of a recent date
by the appropriate Governmental Authority of the state of its incorporation and
certified by a secretary or assistant secretary of the Borrower to be true and
correct as of the Closing Date.

            (ii)
      Bylaws. A copy of the bylaws of the Borrower certified by a
secretary or assistant secretary of the Borrower to be true and correct as of the
Closing Date.

            (iii)
     Resolutions. Copies of resolutions of the board of directors of
the Borrower or an authorized committee thereof, approving and adopting the
transactions contemplated herein and authorizing execution and delivery of the Loan
Documents, certified by a secretary or assistant secretary of the Borrower to be
true and correct and in full force and effect as of the Closing Date.

            (iv)
     Good Standing. Copies of a certificate of good standing,
existence or its equivalent with respect to the Borrower certified as of a recent
date by the appropriate Governmental Authority of the state of its incorporation.

            (v)
       Incumbency. An incumbency certificate of the Borrower certified by
a secretary or assistant secretary of the Borrower to be true and correct as of the
Closing Date.

           (c)
      Opinion of Counsel. The Agent shall have received an opinion or opinions
(which shall cover, among other things, authority, legality, validity, binding effect and

31

 

enforceability), satisfactory to the Agent, addressed to the Lender Parties and dated
as of the Closing Date, from legal counsel to the Borrower.

           (d)
      Closing Officer’s Certificate. The Agent shall have received a certificate
executed by the chief financial officer of the Borrower in the form of Exhibit
3.1(d).

           (e)
      Material Adverse Change. As of the Closing Date, there shall not have
occurred a Material Adverse Change since January 31, 2009.

           (f)
      Litigation. Except as disclosed in Schedule 4.5, there are no
actions, suits or proceedings pending or, to the best knowledge of the Borrower, threatened
against or affecting the Borrower, any Subsidiary or any of its properties before any
Governmental Authority (i) in which there is a reasonable possibility of an adverse
determination that could result in a material liability or have a Material Adverse Effect or
(ii) that in any manner draws into question the validity, legality or enforceability of any
Loan Document or any transaction contemplated thereby.

           (g)
      Fees, Expenses and Interest Paid. The Borrower shall have paid all fees
and expenses due and owing pursuant to the terms of this Agreement for which the Borrower
shall have been billed on or before the Closing Date, including, but not limited to, fees
owed pursuant to (i) the Fee Letter, (ii) that certain fee letter dated as of July 8, 2009
by and among the Borrower, Bank of America, BAS, Wells Fargo Bank, N.A. and Wells Fargo
Securities, LLC and (iii) that certain fee letter dated as of July 8, 2009 by and among the
Borrower, Wells Fargo Bank, N.A. and Wells Fargo Securities, LLC.

           (h)
      Existing Credit Agreement. The Existing Credit Agreement shall be
terminated and all amounts owing there under, if any, shall have been paid in full.

           (i)
      General. All other documents and legal matters in connection with the
transactions contemplated by this Agreement shall have been delivered or executed or
recorded in form and substance satisfactory to the Agent, and the Agent shall have received
all such counterpart originals or certified copies thereof as the Agent may reasonably
request.

          Without limiting the generality of the provisions of Section 8.4, for purposes of
determining compliance with the conditions specified in this Section 3.1, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Agent shall have received notice from such
Lender prior to the proposed Closing Date specifying its objection thereto.

          Section 3.2.    Conditions Precedent to Loans.

          The obligation of the Lenders to make any Loan on any Funding Date shall be subject to the
following conditions precedent:

           (a)
      Closing Date. The conditions precedent set forth in Section 3.1
shall have been satisfied or waived in writing by the Lenders as of the Closing Date.

           (b)
      Notice of Borrowing. The Borrower shall have delivered to the Agent, (i)
in the case of a Revolving Loan, a Notice of Borrowing, duly executed and completed in
accordance with Section 2.1, and the Borrower shall have otherwise complied with all
of the terms of

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Section 2.1 or (ii) in the case of a Bid Loan, a Bid Loan Quote Request, duly executed
and completed, in accordance with Section 2.2, and the Borrower shall have otherwise
complied with all of the terms of Section 2.2.

           (c)
      Representations and Warranties. All of the representations and warranties
of the Borrower contained in the Loan Documents (other than the representation set forth in
Section 4.4 of this Agreement) shall be true and correct in all material respects on
and as of the Funding Date as though made on and as of that date.

           (d)
      No Default. No Default or Event of Default shall exist or result from the
making of the Loan.

           (e)
      Satisfaction of Conditions. Each borrowing of a Loan shall constitute a
representation and warranty by the Borrower as of the Funding Date that the conditions
contained in Sections 3.2(c) and 3.2(d) have been satisfied.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Lender Parties as follows:

          Section 4.1.    Organization, Powers and Good Standing.

          Each of the Borrower and, except as would not reasonably be expected to have a Material
Adverse Effect, its Subsidiaries (a) is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization, as shown on Schedule 4.1, and (b) has all
requisite power and authority and the legal right to own and operate its properties, to carry on
its business as heretofore conducted, to enter into the Loan Documents to which it is a party and
to carry out the transactions contemplated hereby and thereby. Except as would not reasonably be
expected to have a Material Adverse Effect, each of the Borrower and its Subsidiaries possesses all
Governmental Approvals, in full force and effect, free from burdensome restrictions, that are
necessary for the ownership, maintenance and operation of its properties and conduct of its
business as now conducted, and is not in violation thereof. Each of the Borrower and its
Subsidiaries is duly qualified, in good standing and authorized to do business in each state or
other jurisdiction where the nature of its business activities conducted or properties owned or
leased requires it to be so qualified and where any failure to be so qualified, individually or in
the aggregate, could have a Material Adverse Effect. All Subsidiaries of the Borrower are listed
on Schedule 4.1, which may be updated by the Borrower from time to time.

          Section 4.2.    Authorization, Binding Effect, No Conflict, Etc.

           (a)
      Authorization, Binding Effect, Etc. The execution, delivery and
performance by the Borrower of each Loan Document have been duly authorized by all necessary
corporate action on the part of the Borrower; and each such Loan Document has been duly
executed and delivered by the Borrower and is the legal, valid and binding obligation of the
Borrower, enforceable against it in accordance with its terms, except as enforcement may be
limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to creditors’ rights generally.

           (b)
      No Conflict. The execution, delivery and performance by the Borrower of
each

33

 

Loan Document, and the consummation of the transactions contemplated thereby, do not
and will not (i) violate any provision of the charter or other organizational documents of
the Borrower, (ii) except for consents that have been obtained and are in full force and
effect, conflict with, result in a breach of, or constitute (or, with the giving of notice
or lapse of time or both, would constitute) a default under, or require the approval or
consent of any Person pursuant to, any Material Contractual Obligation of the Borrower
(including the Investment Agreement), (iii) violate any Applicable Law binding on the
Borrower, or (iv) result in or require the creation or imposition of any Lien on any assets
or properties of the Borrower or any of its Subsidiaries.

          (c)
      Governmental Approvals. No Governmental Approval is or will be required in
connection with the execution, delivery and performance by the Borrower of any Loan Document
or the transactions contemplated thereby.

          Section 4.3.     Financial Information.

          The balance sheets of the Borrower and its consolidated Subsidiaries as of January 31, 2008
and January 31, 2009 and the related statements of earnings, stockholder’s equity and cash flow for
the Fiscal Years then ended, certified by the Borrower’s independent certified public accountants,
which are included in the Borrower’s Annual Report on Form 10-K for the Fiscal Year ended January
31, 2009, were prepared in accordance with GAAP consistently applied and fairly present the
financial position of the Borrower and its consolidated Subsidiaries as of the respective dates
thereof and the results of operations and cash flow for the periods then ended. Neither the
Borrower nor any of its consolidated Subsidiaries on such dates had any liabilities for Taxes or
long-term leases, forward or long-term commitments or unrealized losses from any unfavorable
commitments that are not reflected in the foregoing statements or in the notes thereto and that,
individually or in the aggregate, are material.

          Section 4.4.     No Material Adverse Changes.

          Since January 31, 2009, there has been no Material Adverse Change.

          Section 4.5.     Litigation.

          Except as disclosed in Schedule 4.5 or as otherwise disclosed in accordance with
Section 5.1(g) below, there are no actions, suits or proceedings pending or, to the best
knowledge of the Borrower, threatened against or affecting the Borrower, any Subsidiary or any of
its properties before any Governmental Authority (a) in which there is a reasonable possibility of
an adverse determination that could result in a material liability or have a Material Adverse
Effect or (b) that in any manner draws into question the validity, legality or enforceability of
any Loan Document or any transaction contemplated thereby.

          Section 4.6.     Agreements: Applicable Law.

          Neither the Borrower nor any Subsidiary is in material violation of any Applicable Law, or in
default under its charter documents, bylaws or other organizational or governing documents or any
of its Material Contractual Obligations.

          Section 4.7.     Taxes.

          All United States federal income tax returns and all other material tax returns required to be
filed by the Borrower or any Subsidiary have been filed and all Taxes due pursuant to such returns
have been paid, except such Taxes, if any, as are being contested in good faith and as to which
adequate reserves

34

 

have been established in accordance with GAAP. To the best knowledge of the Borrower, there
has not been asserted or proposed to be asserted any Tax deficiency against the Borrower or any
Subsidiary that would be material to the Borrower and its Subsidiaries taken as a whole and that is
not reserved against on the financial books of the Borrower.

          Section 4.8.     Governmental Regulation.

          The Borrower is neither an “investment company” registered or required to be registered under
the Investment Company Act of 1940, as amended, or a company controlled by such a company, nor is
the Borrower subject to any federal or state statute or regulation limiting its ability to incur
Debt for money borrowed (other than the Margin Regulations).

          Section 4.9.     Margin Regulations/Proceeds of Loans.

          Neither the Borrower nor any Subsidiary is engaged principally, or as one of its important
activities, in the business of extending credit for the purposes of purchasing or carrying Margin
Stock. The value of all Margin Stock held by the Borrower and its Subsidiaries constitutes less
than 25% of the value, as determined in accordance with the Margin Regulations, of all assets of
the Borrower. The proceeds of the Loans will be and have been used solely in accordance with
Section 2.3.

          Section 4.10.    Employee Benefit Plans.

          None of the Plans of the Borrower or any member of the Controlled Group are in “at risk
status” (as defined in Section 430(i)(4) of the Code, without regard to Section 430(i)(4)(B)
relating to the transition rule) and no Plan has incurred any liability to the PBGC in connection
with any Plan.

          During the five-year period prior to the date this representation is made or deemed made, no
ERISA Event has occurred and is continuing with respect to any Plan (whether or not terminated).
Neither the Borrower nor any member of the Controlled Group is required to make or accrue a
contribution or has within any of the preceding five plan years made or accrued an obligation to
make contributions to any Multiemployer Plan. To the extent the Borrower in the future has or
enters into any applicable Plan, the fair market value of the assets of each Plan is at least equal
to the present value of the “benefit liabilities” (within the meaning of Section 4001(a)(16) of
ERISA), whether or not vested, under such Plan determined in accordance with Financial Accounting
Standards Board Statement 87 using the actuarial assumptions and methods used by the actuary to
such Plan in its valuation of such Plan.

          Section 4.11.    Disclosure.

          All information in any document, certificate or written statement furnished to the Lender
Parties by or on behalf of the Borrower with respect to the business, assets, prospects, results of
operation or financial condition of the Borrower or any Subsidiary for use in connection with the
transactions contemplated by this Agreement has been true and correct in all material respects on
and as of the date made or given and has not omitted a material fact necessary in order to make
such information not misleading in light of the circumstances under which such information was
furnished. There is no fact known to the Borrower (other than matters of a general economic
nature) that has had or could reasonably be expected to have a Material Adverse Effect and that has
not been disclosed herein or in such other documents, certificates or statements.

          Section 4.12.    Solvency.

          The Borrower is, individually and on a consolidated basis with its Subsidiaries, Solvent.

35

 

          Section 4.13.    Title to Properties.

          The Borrower and each of its Subsidiaries is the owner of, and has good and marketable title
to, or has a valid license or lease to use, all of its material properties and assets, and none of
such properties or assets is subject to any Liens other than Permitted Liens.

ARTICLE 5

AFFIRMATIVE COVENANTS OF THE BORROWER

          So long as any portion of the Revolving Commitments shall be in effect and until all
Obligations are paid and performed in full:

          Section 5.1.     Financial Statements and Other Reports.

          The Borrower shall deliver to the Agent (which shall promptly provide copies to each Lender),
for the benefit of the Lenders:

          (a)
       as soon as practicable and in any event within the earlier of (i) 90 days after the
end of each Fiscal Year or (ii) two Business Days after the date the Borrower files its Form
10-K with the SEC, the consolidated balance sheet of the Borrower and its consolidated
Subsidiaries as of the end of such year and the related statements of earnings,
stockholder’s equity and cash flow for such Fiscal Year, setting forth in each case in
comparative form the figures for the previous Fiscal Year, all in reasonable detail and
accompanied by an unqualified report thereon of Deloitte & Touche LLP or other independent
certified public accountants of recognized national standing selected by the Borrower and
reasonably satisfactory to the Required Lenders, which report shall state that such
financial statements fairly present the financial position of the Borrower and its
consolidated Subsidiaries as of the date indicated and its results of operations and cash
flows for the periods indicated in conformity with GAAP (except as otherwise stated therein)
and that the examination by such accountants in connection with such financial statements
has been made in accordance with generally accepted auditing standards.

          (b)
       as soon as practicable and in any event within 45 days after the end of each Fiscal
Quarter (other than the last Fiscal Quarter of any Fiscal Year) a consolidated balance sheet
of the Borrower and its consolidated Subsidiaries as of the end of such quarter and the
related statements of earnings, stockholder’s equity and cash flow for such quarter and the
portion of the Fiscal Year ended at the end of such quarter, setting forth in each case in
comparative form the figures for the corresponding periods of the prior Fiscal Year, all in
reasonable detail and certified by the Borrower’s chief financial officer or controller as
fairly presenting the financial condition of the Borrower and its consolidated Subsidiaries
as of the dates indicated and its results of operations and cash flows for the periods
indicated, subject to normal year-end adjustments.

          (c)
       together with each delivery of financial statements pursuant to Sections
5.1(a) and 5.1(b), a certificate of the chief financial officer or the treasurer
of the Borrower, substantially in the form of Exhibit 5.1(c) (a “Compliance
Certificate”), duly executed and completed, setting forth the calculations required to
establish compliance with Section 6.3, as of the date of such financial statements.
The financial statements required by Sections 5.1(a) and 5.1(b) and the
Compliance Certificate required by this Section 5.1(c) shall be delivered in printed
form.

36

 

          (d)
       within five Business Days after the Borrower becomes aware of the occurrence of any
Default or Event of Default, a certificate of a Senior Officer of the Borrower setting forth
the details thereof and the action that the Borrower is taking or proposes to take with
respect thereto.

          (e)
       promptly upon their becoming available, copies of all material reports, notices and
proxy statements sent or made available by the Borrower to its security holders, and all
material registration statements (other than the exhibits thereto) and annual, quarterly or
monthly reports, if any, filed by the Borrower with the SEC.

          (f)
       within five Business Days after the Borrower becomes aware of the occurrence of an
ERISA Event, a statement of a Senior Officer of the Borrower setting forth the details
thereof and the action that the Borrower is taking or proposes to take with respect thereto,
together with a copy of the notice, if any, of such event given or required to be given to
the PBGC; within five days of the date the Borrower or any member of the Controlled Group
becomes obliged to make or accrue a contribution to a Multiemployer Plan, a statement of a
Senior Officer of the Borrower setting forth the details thereof and the action that the
Borrower is taking or proposes to take with respect thereto.

          (g)
       within five Business Days after the Borrower obtains knowledge thereof, notice of
all litigation or proceedings commenced or threatened affecting the Borrower or any
Subsidiary (i) that could reasonably be expected to have a Material Adverse Effect or (ii)
that questions the validity or enforceability of any Loan Document.

          (h)
       promptly notify the Agent of any move of its principal executive office from the
State of Washington.

          (i)
       from time to time such additional information regarding the Borrower and its
Subsidiaries or the business, assets, liabilities, prospects, results of operation or
financial condition of any such Person as the Agent, on behalf of any Lender Party, may
reasonably request.

          Documents required to be delivered pursuant to Section 5.1(a) or (b) or
(e) (to the extent any such documents are included in materials otherwise filed with the
SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on
the date (i) on which the Borrower posts such documents, or provides a link thereto on the
Borrower’s website on the Internet at the website address listed on Schedule 9.5; or (ii)
on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if
any, to which each Lender and the Agent have access (whether a commercial, third-party website or
whether sponsored by the Agent); provided that: (x) the Borrower shall deliver paper copies
of such documents to the Agent or any Lender that requests the Borrower to deliver such paper
copies until a written request to cease delivering paper copies is given by the Agent or such
Lender and (y) the Borrower shall notify the Agent and each Lender (by telecopier or electronic
mail) of the posting of any such documents and provide to the Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein,
in every instance the Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 5.1(c) to the Agent. Except for such Compliance
Certificates, the Agent shall have no obligation to request the delivery or to maintain copies of
the documents referred to above, and in any event shall have no responsibility to monitor
compliance by the Borrower with any such request for delivery, and each Lender shall be solely
responsible for requesting delivery to it or maintaining its copies of such documents.

37

 

          The Borrower hereby acknowledges that (a) the Agent and/or BAS will make available to the
Lenders materials and/or information provided by or on behalf of the Borrower hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or
another similar electronic system (the “Platform”) and (b) certain of the Lenders (each a
“Public Lender”) may have personnel who do not wish to receive material non-public
information with respect to the Borrower or its Affiliates, or the respective securities of any of
the foregoing, and who may be engaged in investment and other market-related activities with
respect to such Persons’ securities. The Borrower hereby agrees that so long as the Borrower is
the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a
private offering or is actively contemplating issuing any such securities (w) all Borrower
Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked
“PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the
first page thereof; (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Agent, BAS and the Lenders to treat such Borrower Materials as not containing
any material non-public information with respect to the Borrower or its securities for purposes of
United States federal and state securities laws (provided, however, that to the
extent such Borrower Materials constitute Information, they shall be treated as set forth in
Section 9.13); (y) all Borrower Materials marked “PUBLIC” are permitted to be made
available through a portion of the Platform designated as “Public Side Information;” and (z) the
Agent and BAS shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as
being suitable only for posting on a portion of the Platform that is not marked as “Public Side
Information.” Notwithstanding the foregoing, the Borrower shall be under no obligation to mark any
Borrower Materials “PUBLIC.”

          Section 5.2.     Records and Inspection.

          The Borrower shall, and shall cause each Subsidiary to, maintain adequate books, records and
accounts as may be required or necessary to permit the preparation of financial statements required
to be delivered hereunder in accordance with sound business practices and GAAP. The Borrower
shall, and shall cause each Subsidiary to, permit such Persons as the Agent may designate, at
reasonable times during the Borrower’s regular office hours as often as may reasonably be requested
and under reasonable circumstances, to (a) visit and inspect any of its properties, (b) inspect and
copy its books and records, and (c) discuss with its officers, as the Agent may reasonably request,
and its independent accountants, its business, assets, liabilities, results of operation or
financial condition; provided that the Agent shall not have access to consumer information or any
other similar restricted information if such access is prohibited by Applicable Law.

          Section 5.3.     Corporate Existence, Etc.

          The Borrower shall, and shall (except as otherwise permitted under Section 6.4) cause
each Subsidiary to, at all times preserve and keep in full force and effect its corporate existence
and all rights and franchises material to the Borrower and to the Borrower and its Subsidiaries
taken as a whole.

          Section 5.4 Payment of Taxes and Claims.

          The Borrower shall, and shall cause each Subsidiary to, pay and discharge (a) all Taxes
imposed upon it or any of its properties or in respect of any of its franchises, business, income
or property before any material penalty shall be incurred with respect to such Taxes, and (b) all
claims of any kind (including claims for labor, material and supplies) that, if unpaid, might by
Applicable Law become a Lien upon any material portion of the property of the Borrower and its
Subsidiaries; provided, however, that, unless and until foreclosure, distraint,
levy, sale or similar proceedings shall have commenced, the Borrower need not pay or discharge any
such Tax or claim so long as the validity or amount thereof is being contested in good faith and by
appropriate proceedings and so long as any reserves or other

38

 

appropriate provisions as may be required by GAAP shall have been made therefor.

          Section 5.5.     Maintenance of Properties.

          The Borrower shall, and shall cause each Subsidiary to, maintain or cause to be maintained in
good repair, working order and condition (ordinary wear and tear excepted), all properties and
other assets useful or necessary to its business, and from time to time the Borrower shall make or
cause to be made all appropriate repairs, renewals and replacements thereto except, in each case,
to the extent the failure to do so could not reasonably be expected to have a Material Adverse
Effect. The Borrower shall, and shall cause each of its Subsidiaries to, use reasonable efforts to
prevent offsets of and defenses to its receivables and other rights to payment.

          Section 5.6.     Maintenance of Insurance.

          The Borrower shall, and shall cause each Subsidiary to, maintain with financially sound and
reputable insurance companies insurance (or adequate self insurance) in at least such amounts, of
such character and against at least such risks as is usually maintained by companies of established
repute engaged in the same or a similar business in the same general area.

          Section 5.7.     Conduct of Business; Compliance with Law.

          The Borrower shall not change the general character of its business as conducted at the
Closing Date or engage, directly or through a Subsidiary, in any type of business not reasonably
related to its business as normally conducted. The Borrower shall maintain its right to carry on
business in any jurisdiction where it is doing business at such time and remain in and continuously
operate the same lines of business presently engaged in except for (i) periodic shutdown in the
ordinary course of business, (ii) interruptions caused by strike, labor dispute, catastrophe, acts
of war or terrorism or any other events over which it has no control, and (iii) discontinuance of
operations when reasonably determined by the Borrower to be in the best interest of the Borrower,
provided that such discontinuance will not have a Materially Adverse Effect. The Borrower shall,
and shall cause each of its Subsidiaries to, conduct its business in compliance in all material
respects with all Applicable Law and all its Material Contractual Obligations.

          Section 5.8.     Further Assurances.

          At any time and from time to time, upon the request of the Agent, the Borrower shall execute
and deliver such further documents and do such other acts and things as the Agent may reasonably
request in order to effect fully the purposes of the Loan Documents and any other agreement
contemplated thereby and to provide for payment and performance of the Obligations in accordance
with the terms of the Loan Documents.

          Section 5.9.     Future Information.

          All data, certificates, reports, statements, documents and other information the Borrower
shall furnish to the Lender Parties in connection with the Loan Documents shall, at the time the
information is furnished, not contain any untrue statement of a material fact, shall be complete
and correct in all material respects to the extent necessary to give the Lender Parties sufficient
and accurate knowledge of the subject matter thereof, and shall not omit to state a material fact
necessary in order to make the statements contained therein not misleading in light of the
circumstances under which such information is furnished.

39

 

ARTICLE 6

NEGATIVE COVENANTS OF THE BORROWER

          So long as any portion of the Revolving Commitments shall be in effect and until all
Obligations are paid and performed in full:

          Section 6.1.     Liens.

          The Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly,
create, incur, assume or permit to exist any Lien on or with respect to any asset of the Borrower
or any Subsidiary, whether now owned or hereafter acquired, except:

          (a)
       Liens securing the Obligations and Existing Liens;

          (b)
       (i) Liens for Taxes, assessments or charges of any Governmental Authority for
claims that are not material and are not yet due or are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves or other appropriate
provisions are being maintained in accordance with GAAP (and as to which foreclosure,
distraint, levy, sale or similar proceedings have not yet commenced with respect to the
property subject to any such Lien on account thereof); (ii) statutory Liens of landlords and
Liens of carriers, warehousemen, mechanics, materialmen, bankers and other Liens imposed by
law and created in the ordinary course of business for amounts that are not material and are
not yet due or are being contested in good faith by appropriate proceedings and with respect
to which adequate reserves or other appropriate provisions are being maintained in
accordance with GAAP (and as to which foreclosure, distraint, levy, sale or similar
proceedings have not yet commenced with respect to the property subject to any such Lien on
account thereof); (iii) Liens incurred and deposits made in the ordinary course of business
in connection with workers’ compensation, unemployment insurance and other types of social
security benefits or to secure the performance (including by way of surety bonds or appeal
bonds) of tenders, bids, leases, contracts, statutory obligations or similar obligations or
arising as a result of progress payments under contracts, in each case in the ordinary
course of business and not relating to the repayment of Debt; (iv) easements, rights-of-way,
covenants, consents, reservations, encroachments, variations and other restrictions,
conditions (including those conditions commonly referred to as “CC&Rs”), charges or
encumbrances (whether or not recorded) that do not materially interfere with the ordinary
conduct of the Borrower’s business; (v) building restrictions, zoning laws and other
statutes, laws, rules, regulations, ordinances and restrictions; (vi) leases, subleases,
easements or similar use rights granted in the ordinary course of business to others not
materially interfering with the business of, and consistent with past practices of, the
Borrower; (vii) construction, operation and reciprocal easement agreements entered into in
the ordinary course of business that do not materially interfere with the ordinary conduct
of the Borrower’s business and not relating to the repayment of Debt; (viii) customary
rights of set off, revocation, refund or charge-back under deposit agreements or under the
Uniform Commercial Code in favor of banks or other financial institutions where the Borrower
or any Subsidiary maintains deposits in the ordinary course of business; (ix) Liens on
accounts receivable of the Borrower for which collection attempts are being undertaken by a
third party at the request of the Borrower; (x) Liens arising from precautionary Uniform
Commercial Code financing statements regarding operating leases and (xi) Liens arising by
operation of law on insurance polices and proceeds thereof to secure premiums thereunder;

          (c)
       any attachment or judgment Lien, not otherwise constituting an Event of Default,

40

 

in existence less than 30 days after the entry thereof or with respect to which (i)
execution has been stayed, (ii) payment is covered in full by insurance and the insurer has
not denied coverage, or (iii) the Borrower is in good faith prosecuting an appeal or other
appropriate proceedings for review and has set aside on its books such reserves as may be
required by GAAP with respect to such judgment or award;

          (d)
       precautionary Uniform Commercial Code financing statements regarding consignments,
provided that any such financing statements do not describe any property
other than the assets acquired through the consignment and proceeds thereof;

          (e)
       Liens securing Debt of the Borrower or any Subsidiary used to finance the
acquisition of fixed assets (including, without limitation, equipment and vehicles) of the
Borrower or such Subsidiary, the construction of additional buildings or the expansion
otherwise of their respective facilities and Debt consisting of Capitalized Leases; provided
that such Debt (i) does not exceed the cost to the Borrower or such Subsidiary of the assets
acquired with the proceeds of such Debt or the value of the assets subject to such Capital
Leases, (ii) in the case of new construction or expansion of existing facilities, is either
a construction or permanent loan secured by the facilities constructed and/or the real
property on which such facilities are located and related equipment and fixtures, leases,
rents, reserves and other personal property (which for this purpose shall not include
inventory and intellectual property) to the extent located on or commonly considered to be
part of the real property as applicable, and (iii) in the case of other asset financing, is
incurred within twelve months following the date of the acquisition (which for this purpose
shall, in the case of a construction project, be the date that construction is completed and
the asset constructed is placed into service or in the case of a Sale and Leaseback
Transaction the date of disposition); provided that any such Lien does not encumber any
property other than the assets acquired with the proceeds of such Debt or the assets subject
to such Capital Lease, related reserve funds, related personal property (which for this
purpose shall not include inventory and intellectual property) and proceeds of any of the
foregoing;

          (f)
       Liens existing on assets of any Person at the time such assets are acquired;
provided such Lien does not encumber any assets other than the assets subject to
such Lien at the time such assets are acquired and proceeds thereof and such Lien was not
created in contemplation of such acquisition;

          (g)
       Liens arising from the sale or securitization of receivables, to the extent the
Debt arising from such securitization is not otherwise prohibited under this Agreement at
the time such Debt was incurred;

          (h)
       any Lien constituting a renewal, extension or replacement of any Existing Lien or
any Lien permitted by clauses (e) or (f) of this Section 6.1, provided such
Lien is limited to all or a part of the property subject to the Lien extended, renewed or
replaced;

          (i)
       Liens granted by a Subsidiary of the Borrower in favor of the Borrower or another
Subsidiary of the Borrower;

          (j)
       covenants contained in the following agreements which require the grant of security
for the obligations evidenced thereby if security is given for some other obligation: (i)
that certain Indenture dated as of March 11, 1998 between the Borrower and Wells Fargo Bank,
National Association (formerly known as Norwest Bank Colorado, National Association), as
Trustee, as in effect on the Closing Date, (ii) that certain Indenture dated as of December
3, 2007 between the Borrower and Wells Fargo Bank, National Association, as Trustee, as in
effect on the Closing Date;

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and (iii) that certain Indenture dated as of May 1, 2007 between Nordstrom Credit Card
Master Note Trust II and its successors and Wells Fargo Bank, National Association, as
Trustee, as in effect on the Closing Date; provided, however, that this
clause (j) shall not be deemed to restrict additional Debt from being issued under any of
the foregoing agreements or any supplement thereto so long as the covenants contained
therein relating to the grant of security therefore are not modified in a manner adverse to
the Lenders;

          (k)
       leases, licenses, subleases or sublicenses granted to others (including, without
limitation, licenses of intellectual property) not interfering in any material respect with
the business of the Borrower and its Subsidiaries;

          (l) 
       Mortgages, Sale and Leaseback Transactions and/or other similar Liens that (i) do
not materially impair the use of the assets subject thereto in the operation of such
business, (ii) do not encumber intellectual property and (iii) do not secure obligations
aggregating in excess of $200,000,000; and

          (m)
       other Liens securing obligations not exceeding $35,000,000 in the aggregate.

          Section 6.2.     Restricted Payments.

          The Borrower shall not, and shall not permit any Subsidiary to, declare, pay or make, or agree
to declare, pay or make, any Restricted Payment, except (a) Restricted Payments by any Subsidiary
to the Borrower and any other Person that owns capital stock or other equity interests in such
Subsidiary, ratably according to their respective holdings of the type of capital stock or other
equity interests in respect of which such Restricted Payment is being made, (b) Restricted Payments
(other than purchases or other acquisition for value of any Capital Stock of the Borrower or any
Subsidiary) so long as no Default or Event of Default then exists or would result therefrom
(assuming for this purpose that compliance with Section 6.3 is being measured as of the end
of the immediately preceding Fiscal Quarter giving pro forma effect to the Restricted Payment)
and/or (c) purchases or other acquisitions for value of any Capital Stock of the Borrower or any
Subsidiary.

          Section 6.3.     Financial Covenants.

          (a) 
      Leverage Ratio. As of the last day of each Fiscal Quarter, for the twelve month
period ending on such date, the Borrower shall not permit the ratio of (i) the sum of (A) Funded
Debt as of the last day of such period and (B) the product of (1) Rent Expense for such period
times (2) six to (ii) EBITDAR for such period (the “Leverage Ratio”) to be greater than 4.0
to 1.0. For purposes of calculating the Leverage Ratio between the Closing Date and February 1,
2010, Funded Debt shall be reduced by the amount of cash on the balance sheet of the Borrower in an
amount not to exceed $250,000,000.

          (b) 
      Fixed Charge Coverage Ratio. As of the last day of each Fiscal Quarter, for the
twelve month period ending on such date, the Borrower shall not permit the ratio of (i) the
difference of (A) EBITDAR for such period minus (B) Capital Expenditures for such period to
(ii) the sum of (A) Interest Expense (net of interest income of the Borrower and its Subsidiaries,
as determined in accordance with GAAP) for such period plus (B) Rent Expense for such
period (the “Fixed Charge Coverage Ratio”) to be less than 2.0 to 1.0.

          Section 6.4.     Restriction on Fundamental Changes.

          The Borrower shall not, and shall not permit any Subsidiary to enter into any merger,

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consolidation, reorganization or recapitalization, liquidate, wind up or dissolve or sell,
lease, transfer or otherwise dispose of, in one transaction or a series of transactions, all or
substantially all of its or their business or assets, whether now owned or hereafter acquired;
provided that as long as no Default or Event of Default shall exist either before or after giving
effect thereto (a) any Solvent Subsidiary or other Solvent Person (other than the Borrower) may be
merged or consolidated with or into the Borrower (so long as the Borrower is the surviving entity)
or any Subsidiary, (b) any Subsidiary may be liquidated, wound up or dissolved so long as it does
not cause or could not be reasonably expected to cause a Material Adverse Effect and (c) in
addition to transactions permitted under Section 6.5 (which permitted transactions shall
not be restricted by this Section 6.4), all or substantially all of any Subsidiary’s
business or assets may be sold, leased, transferred or otherwise disposed of, in one transaction or
a series of transactions, to the Borrower or another Subsidiary.

          Section 6.5.     Asset Dispositions.

          The Borrower shall not, and shall not (except as permitted by Section 6.4(c)) permit
any Subsidiary to, sell, lease, transfer or otherwise dispose of during any Fiscal Year property or
other assets (other than (a) sales of inventory in the ordinary course of business and (b) the sale
or disposition of the Borrower’s interest in 1700 Seventh LP) constituting, in the aggregate, 25%
or more of the consolidated assets of the Borrower and its Subsidiaries, as calculated on a book
value basis. Notwithstanding the foregoing limitation, the Borrower and its Subsidiaries shall be
permitted to sell or transfer their receivables in a transaction to securitize such receivables,
and such sales or transfers of receivables shall not be included in the computation above.

          Section 6.6.     Transactions with Affiliates.

          The Borrower shall not, and shall not permit any Subsidiary to, directly or indirectly, enter
into any transaction (including the purchase, sale, lease, or exchange of any property or the
rendering of any service) with any Affiliate of the Borrower, unless (a) such transaction is not
otherwise prohibited by this Agreement, (b) such transaction is in the ordinary course of business
and (c) if such transaction is other than with a Wholly-Owned Subsidiary, such transaction is on
fair and reasonable terms no less favorable to the Borrower or its Subsidiary, as the case may be,
than those terms which might be obtained at the time in a comparable arm’s length transaction with
a Person who is not an Affiliate or, if such transaction is not one which by its nature could be
obtained from such other Person, is on fair and reasonable terms and was negotiated in good faith;
provided that this Section 6.6 shall not restrict (i) dividends, distributions and other
payments and transfers on account of any shares of Capital Stock of the Borrower or any Subsidiary
otherwise permissible hereunder and (ii) transactions pursuant to (A) the Investment Agreement, (B)
the Recourse Agreement, (C) the Support Letter and (D) any agreement between the Borrower and any
Affiliate of the Borrower pursuant to which the Borrower sells, discounts or otherwise transfers an
interest in accounts receivable in the ordinary course of its business (including agreements under
which the Borrower has an obligation to repurchase from or indemnify the purchaser with respect to
accounts discounted, sold or otherwise transferred by the Borrower).

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ARTICLE 7

EVENTS OF DEFAULT, ETC.

          Section 7.1.     Events of Default.

          The occurrence of any one or more of the following events, acts or occurrences shall
constitute an event of default (each an “Event of Default”):

          (a)
       Failure to Make Payments. The Borrower (i) shall fail to pay as and when
due (whether at stated maturity, upon acceleration, upon required prepayment or otherwise)
any principal of any Loan, or (ii) shall fail to pay any interest, Fees or other amounts
(other than principal) payable under the Loan Documents within five days of the date when
due under the Loan Documents;

          (b)
       Default in Other Debt. (i) The Borrower or any Subsidiary shall default in
the payment (whether at stated maturity, upon acceleration, upon required prepayment or
otherwise), beyond any period of grace provided therefor, of any principal of or interest on
any other Debt with a principal amount (individually or in the aggregate) in excess of
$50,000,000, or (ii) any other breach or default (or other event or condition), beyond any
period of grace provided therefor, shall occur under any agreement, indenture or instrument
relating to any such other Debt with a principal amount (individually or in the aggregate)
in excess of $50,000,000, if the effect of such breach or default (or such other event or
condition) is to cause, or to permit, the holder or holders of such other Debt (or a Person
on behalf of such holder or holders) to cause (upon the giving of notice or otherwise), such
other Debt to become or be declared due and payable, or required to be prepaid, redeemed,
purchased or defeased (or an offer of prepayment, redemption, purchase or defeasance be
made), prior to its stated maturity (other than by a scheduled mandatory prepayment);
provided, however, that if any such breach or default described in this
Section 7.1(b) is cured or waived prior to any action being taken pursuant to
Section 7.2(a) or 7.2(b), the Event of Default under this Agreement in
respect of such breach or default shall be deemed cured to the extent of such cure or
waiver;

          (c)
       Breach of Certain Covenants.

          (i)
       The Borrower shall fail to perform, comply with or observe any agreement,
covenant or obligation under Section 2.3, under Sections 6.2 through
6.5 inclusive, or under Section 5.1(d) or 5.3 (insofar as it
requires the preservation of the corporate existence of the Borrower);

          (ii)
       The Borrower shall fail to perform, comply with or observe any agreement,
covenant or obligation under Section 6.1 or under Section 6.6 and
such failure shall not have been remedied within ten days; or

          (iii)       The Borrower shall fail to perform, comply with or observe any agreement,
covenant or obligation under Sections 5.1(a), (b) or (c) and
such failure shall not have been remedied within five days;

          (d)        Other Defaults Under Loan Documents. The Borrower shall fail to perform,
comply with or observe any agreement, covenant or obligation under any provision of any Loan
Document (other than those provisions referred to in Sections 7.l(a), 7.1(b)
and 7.1(c)) and such failure shall not have been remedied within 30 days after the
earlier to occur of (i) the Borrower’s

44

 

knowledge thereof or (ii) written notice thereof by the Agent to the Borrower; or

          (e)        Breach of Representation or Warranty. Any representation or warranty or
certification made or furnished by the Borrower under any Loan Document shall prove to have
been false or incorrect in any material respect when made (or deemed made);

          (f)        Involuntary Bankruptcy; Appointment of Receiver, Etc. There shall be
commenced against the Borrower or any of its Subsidiaries, an involuntary case seeking the
liquidation or reorganization of the Borrower or any of its Subsidiaries under Chapter 7 or
Chapter 11, respectively, of the Bankruptcy Code or any similar proceeding under any other
Applicable Law or an involuntary case or proceeding seeking the appointment of a receiver,
liquidator, sequestrator, custodian, trustee or other officer having similar powers over the
Borrower or any of its Subsidiaries or to take possession of all or a substantial portion of
its property or to operate all or a substantial portion of its business, and any of the
following events occurs: (i) the Borrower or any of its Subsidiaries consents to the
institution of the involuntary case or proceeding; (ii) the petition commencing the
involuntary case or proceeding is not timely controverted; (iii) the petition commencing the
involuntary case or proceeding remains undismissed and unstayed for a period of 60 days; or
(iv) an order for relief is issued or entered therein;

          (g)        Voluntary Bankruptcy; Appointment of Receiver, Etc. The Borrower or any of
its Subsidiaries shall institute a voluntary case seeking liquidation or reorganization
under Chapter 7 or Chapter 11, respectively, of the Bankruptcy Code or any similar
proceeding under any other Applicable Law, or shall consent thereto; or shall consent to the
conversion of an involuntary case to a voluntary case; or shall file a petition, answer a
complaint or otherwise institute any proceeding seeking, or shall consent to or acquiesce in
the appointment of, a receiver, liquidator, sequestrator, custodian, trustee or other
officer with similar powers over the Borrower or any of its Subsidiaries or to take
possession of all or a substantial portion of its property or to operate all or a
substantial portion of its business; or shall make a general assignment for the benefit of
creditors; or shall generally not pay, or shall admit in writing its inability to pay, its
debts as they become due; or the board of directors of the Borrower or any of its
Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize
action to approve any of the foregoing;

          (h)        Judgments and Attachments. The Borrower or any Subsidiary shall suffer any
money judgments, writs or warrants of attachment or similar processes (collectively,
“Judgments”) that, individually or in the aggregate, involve an amount or value in excess of
$50,000,000 and such Judgments shall continue unsatisfied or unstayed for a period of 60
days; provided that no Event of Default shall exist if (i) payment of the Judgments are
covered in full by insurance and the insurer has affirmed such coverage or (ii) the Borrower
is in good faith prosecuting an appeal of such Judgments and has (A) deposited funds as
required for such appeal, if any and (B) reserved amounts on its books for such Judgments as
required in accordance with GAAP.

          (i)        ERISA. The Borrower or any member of the Controlled Group shall fail to
pay when due any material amount or amounts that it shall have become liable to pay to the
PBGC or to a Plan under Title IV of ERISA; or a proceeding shall be instituted by a
fiduciary of any such Plan or Plans against the Borrower or any member of the Controlled
Group to enforce Section 515 of ERISA; or any ERISA Event shall occur which could reasonably
be expected to have a Material Adverse Effect; or the Borrower or any member of the
Controlled Group shall partially or completely withdraw from any Multiemployer Plan; or any
Multiemployer Plan to

45

 

which
Borrower or any member of its Controlled Group becomes obligated to make or accrue a
contribution is placed in reorganization or terminates; or

          (j)        Termination of Loan Documents, Etc. Any Loan Document, or any material
provision thereof, shall cease to be in full force and effect with respect to the Borrower
for any reason, or the Borrower shall contest or purport to repudiate or disavow any of its
obligations under, or the validity of enforceability of, any Loan Document or any material
provision thereof.

          Section 7.2.     Remedies.

          Upon the occurrence of an Event of Default:

          (a)
       If an Event of Default occurs under Section 7.1(f) or 7.1(g), then
the Revolving Commitments shall automatically and immediately terminate, and the obligation
of the Lenders to make any Loan hereunder shall cease, and the unpaid principal amount of
the Loans and all other Obligations shall automatically become immediately due and payable,
without presentment, demand, protest, notice or other requirements of any kind, all of which
are hereby expressly waived by the Borrower.

          (b)        If an Event of Default occurs, other than under Section 7.1(f) or
7.1(g), the Agent may (i) with the consent of the Required Lenders, by written
notice to the Borrower, declare that the Revolving Commitments and all pending Bid Loan
Quotes (whether or not accepted) are terminated, whereupon the obligation of the Lender
Parties to make any Loan hereunder shall cease, and/or (ii) with the consent of the Required
Lenders, declare the unpaid principal amount of the Loans and all other Obligations to be,
and the same shall thereupon become, due and payable, without presentment, demand, protest,
any additional notice or other requirements of any kind, all of which are hereby expressly
waived by the Borrower.

          (c)        The Agent may, with the consent of the Required Lenders, enforce any and all rights
and interests created and existing under the Loan Documents, including, without limitation,
all rights of set-off.

          Notwithstanding the fact that enforcement powers reside primarily with the Agent, each
Lender has, to the extent permitted by law, a separate right of payment and shall be
considered a separate “creditor” holding a separate “claim” within the meaning, and for the
purposes, of Section 101(5) of the Bankruptcy Code or any other insolvency statute.

          Section 7.3 Allocation of Payments After Event of Default.

          Notwithstanding any other provisions of this Agreement, after the occurrence and during the
continuance of an Event of Default, all amounts collected or received by the Agent or any Lender on
account of amounts outstanding under any of the Loan Documents shall be paid over or delivered as
follows:

          FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable attorneys’ fees) of the Agent or any of the Lenders in
connection with enforcing the rights of the Lenders under the Loan Documents and any
protective advances made by the Agent or any of the Lenders, pro rata as set forth below;

          SECOND, to the payment of any fees owed to the Agent or any Lender, pro rata as set
forth below;

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          THIRD, to the payment of all accrued interest payable to the Lenders hereunder, pro
rata as set forth below;

          FOURTH, to the payment of the outstanding principal amount of the Loans and all other
obligations which shall have become due and payable under the Loan Documents, pro rata as
set forth below; and

          FIFTH, the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category and (b) each of the
Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then
outstanding Loans held by such Lender bears to the aggregate then outstanding Loans) of amounts
available to be applied.

ARTICLE 8

THE AGENT

          Section 8.1       Appointment and Authority.

          Each Lender hereby irrevocably appoints Bank of America to act on its behalf as the Agent
hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof,
together with such actions and powers as are reasonably incidental thereto. The provisions of this
Article are solely for the benefit of the Agent and the Lenders, and (except as provided in Section
8.6) the Borrower shall not have rights as a third party beneficiary of any of such provisions.

          Section 8.2       Rights as a Lender.

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

          Section 8.3       Exculpatory Provisions.

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

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

          (b)        shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby
or by the other Loan Documents that the Agent is required to exercise as directed in writing
by the

47

 

Required Lenders (or such other number or percentage of the Lenders as shall be
expressly provided for herein or in the other Loan Documents), provided that the
Agent shall not be required to take any action that, in its opinion or the opinion of its
counsel, may expose the Agent to liability or that is contrary to any Loan Document or
applicable law; and

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

          The Agent shall not be liable for any action taken or not taken by it (i) with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary, or as the Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 9.3 and 7.2) or (ii) in the absence of its
own gross negligence or willful misconduct. The Agent shall be deemed not to have knowledge of any
Default or Event of Default unless and until notice describing such Default or Event of Default is
given to the Agent by the Borrower or a Lender.

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

          Section 8.4      Reliance by Agent.

          The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or other distribution)
believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper
Person. The Agent also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability for relying
thereon. In determining compliance with any condition hereunder to the making of a Loan that by
its terms must be fulfilled to the satisfaction of a Lender, the Agent may presume that such
condition is satisfactory to such Lender unless the Agent shall have received notice to the
contrary from such Lender prior to the making of such Loan. The Agent may consult with legal
counsel (who may be counsel for the Borrower), independent accountants and other experts selected
by it, and shall not be liable for any action taken or not taken by it in accordance with the
advice of any such counsel, accountants or experts.

          Section 8.5      Delegation of Duties.

          The Agent may perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub-agents appointed by the Agent.
The Agent and any such sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Related Parties. The exculpatory provisions of this Article
shall apply to any such sub-agent and to the Related Parties of the Agent and any such sub-agent,
and shall apply to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Agent.

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          Section 8.6      Resignation of Agent.

          The Agent may at any time give notice of its resignation to the Lenders and the Borrower.
Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the
consent of the Borrower at all times other than during the existence of a Default or an Event of
Default (which consent of the Borrower shall not be unreasonably withheld or delayed), to appoint a
successor, which shall be a Lender with an office in the United States, or an Affiliate of any such
Lender with an office in the United States. If no such successor shall have been so appointed by
the Required Lenders and shall have accepted such appointment within 30 days after the retiring
Agent gives notice of its resignation, then the retiring Agent may on behalf of the Lenders appoint
a successor Agent meeting the qualifications set forth above; provided that if the Agent
shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment,
then such resignation shall nonetheless become effective in accordance with such notice and (1) the
retiring Agent shall be discharged from its duties and obligations hereunder and under the other
Loan Documents and (2) all payments, communications and determinations provided to be made by, to
or through the Agent shall instead be made by or to each Lender directly (at the account and
location on file with the Agent, which the retiring Agent shall furnish to the Borrower), until
such time as the Required Lenders appoint a successor Agent as provided for above in this Section.
Upon the acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Agent, and the retiring Agent shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by the Borrower to a successor Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrower and such successor. After
the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of
this Article and Section 9.1 shall continue in effect for the benefit of such retiring
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while the retiring Agent was acting as Agent.

          Section 8.7      Non-Reliance on Agent and Other Lenders.

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

          Section 8.8      No Other Duties, Etc.

          Anything herein to the contrary notwithstanding, none of the bookrunners, arrangers,
syndication agents, documentation agents or co-agents listed on the cover page hereof shall have
any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Agent or a Lender hereunder.

          Section 8.9      Agent May File Proofs of Claim.

          In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Borrower, the Agent

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(irrespective of whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Agent shall have made any
demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise

          (a)       to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and
to file such other documents as may be necessary or advisable in order to have the claims of
the Lenders and the Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Agent and their respective agents and
counsel and all other amounts due the Lenders and the Agent under Sections 2.6,
9.1 and 9.2 allowed in such judicial proceeding); and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Agent and, in the event that the Agent shall consent to the making of such payments directly to the
Lenders, to pay to the Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Agent and its agents and counsel, and any other amounts due the
Agent under Sections 2.6, 9.1 and 9.2.

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

ARTICLE 9

MISCELLANEOUS

          Section 9.1.     Expenses.

          The Borrower shall pay on demand:

          (a)       any and all reasonable attorneys’ fees and disbursements (including allocated costs
of in-house counsel) and out-of-pocket costs and expenses incurred by the Agent and its
Affiliates in connection with the development, drafting, negotiation and administration of
the Loan Documents, any amendments thereto and the syndication and closing of the
transactions contemplated thereby; and

          (b)       all reasonable costs and expenses (including fees and disbursements of in-house and
other attorneys, appraisers, financial advisors and consultants) incurred by the Lender
Parties in any workout, restructuring or similar arrangements or, after an Event of Default,
in connection with the protection, preservation, exercise or enforcement of any of the terms
of the Loan Documents or in connection with any foreclosure, collection or bankruptcy
proceedings.

          The foregoing costs and expenses shall include all out-of-pocket expenses incurred by the
Agent and the cost of independent public accountants and other outside experts retained by the
Agent or, to the extent reimbursable under subpart (b) above, any Lender. All amounts due under
this Section 9.1 shall be payable within ten Business Days after demand therefor. The
agreements in this Section shall survive the

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termination of the Revolving Commitments and repayment of all other Obligations.

          Section 9.2      Indemnity; Damages.

          (a)   
    Indemnification by the Borrower. The Borrower shall indemnify the Agent
(and any sub-agent thereof), each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an “Indemnitee”) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related
expenses (including the reasonable fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all reasonable fees
and time charges and disbursements for attorneys who may be employees of any Indemnitee,
incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the
Borrower arising out of, in connection with, or as a result of (i) the execution or delivery
of this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by such Indemnitee hereto of its obligations hereunder or
thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the
case of the Agent (and any sub-agent thereof) and its Related Parties only, the
administration of this Agreement and the other Loan Documents or (ii) any actual or
threatened claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third party or by
the Borrower, and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such
losses, claims, damages, liabilities or related expenses (x) are determined by a court of
competent jurisdiction by final judgment to have resulted from the gross negligence or
willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or
under any other Loan Document, if the Borrower has obtained a final judgment in its favor on
such claim as determined by a court of competent jurisdiction.

          (b)       Reimbursement by Lenders. To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under Section 9.1 or subsection (a) of
this Section to be paid by it to the Agent (or any sub-agent thereof) or any Related Party
of any of the foregoing, each Lender severally agrees to pay to the Agent (or any such
sub-agent) or such Related Party, as the case may be, such Lender’s Revolving Commitment
Percentage (determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Agent (or any such sub-agent) in its capacity as such,
or against any Related Party of any of the foregoing acting for the Agent (or any such
sub-agent) in connection with such capacity. The obligations of the Lenders under this
subsection (b) are subject to the provisions of Section 2.1(e).

          (c)       Waiver of Damages, Etc. No Indemnitee referred to in subsection (a) above
shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by such Indemnitee
through telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby other than for direct or actual damages resulting from the gross
negligence or willful misconduct of such Indemnitee or breach in bad faith of such
Indemnitee’s obligations hereunder, in each case, as determined by a final judgment of a
court of competent jurisdiction.

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

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          (e)  
      Survival. The agreements in this Section shall survive the resignation of
the Agent, the replacement of any Lender, the termination of the Revolving Commitments and
the repayment, satisfaction or discharge of the Obligations.

          (f)  
      Limit on Indemnity. To the extent that the undertaking to indemnify and
hold harmless set forth in Section 9.2(a) may be unenforceable as violative of any
Applicable Law or public policy, the Borrower shall make the maximum contribution to the
payment and satisfaction of its obligations set forth in Section 9.2(a) that is
permissible under Applicable Law.

          Section 9.3.    Amendments; Waivers; Modifications in Writing.

          No amendment of any provision of this Agreement or any other Loan Document (including a waiver
thereof or consent relating thereto) shall be effective unless the same shall be in writing and
signed by the Agent and the Required Lenders and, except as to a waiver or consent requested by or
to the benefit of the Borrower, the Borrower, provided further:

          (a)
      no amendment, waiver, consent, forbearance or other agreement that has the effect
of (i) reducing the rate or amount of any amount payable by the Borrower to any Lender Party
under the Loan Documents, (other than as a result of waiving the applicability of the
Post-Default Rate of interest), (ii) extending the stated maturity or due date, of any
amount payable by the Borrower to any Lender Party under the Loan Documents, (iii)
increasing the amount, or extending the stated termination or reduction date, of any
Lender’s Revolving Commitment hereunder or subjecting any Lender Party to any additional
obligation to extend credit (it being understood and agreed that a waiver of any Default or
Event of Default or a waiver of any mandatory reduction in the Revolving Commitments shall
not constitute a change in the terms of any Revolving Commitment of any Lender), (iv)
altering the rights and obligations of the Borrower to prepay the Loans, or (v) changing
this Section 9.3 or the definition of the term “Required Lenders” or any other
percentage of Lenders specified in this Agreement to be the applicable percentage to act on
specified matters shall be effective unless the same shall be signed by or on behalf of each
of the Lenders affected thereby;

          (b)
      no amendment that modifies Article 8 or otherwise has the effect of (i) increasing
the duties or obligations of the Agent, (ii) increasing the standard of care or performance
required on the part of the Agent, or (iii) reducing or eliminating the indemnities or
immunities to which the Agent is entitled (including any amendment of this Section
9.3), shall be effective unless the same shall be signed by or on behalf of the Agent;
and

          (c)
      any waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given;

provided, however, that notwithstanding anything to the contrary herein, (i) no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent
hereunder, except that, any waiver, amendment or modification requiring the consent of all Lenders
or each affected Lender (A) which by its terms affects such Defaulting Lender differently than
other affected Lenders, (B) increases or extends the Revolving Commitment of any such Defaulting
Lender, (C) reduces the principal of or (except as provided in Section 9.3(a)(i) above) the
rate of interest for Loans of such Defaulting Lender, or fees or other amounts payable hereunder or
under any other Loan Document to such Defaulting Lender, (D) extends the stated maturity or due
date, of any amount payable by the Borrower to any Lender Party under the Loan Documents, or (E)
amends or modifies any provisions of this proviso, shall require the consent of such Defaulting
Lender and (ii) each Lender is entitled to vote as such Lender sees fit on any

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bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code of the United States supersedes the unanimous
consent provisions set forth herein.

Except as required herein, no notice to or demand on the Borrower in any case shall entitle the
Borrower to any other or further notice or demand in similar or other circumstances. Any amendment
effected in accordance with this Section 9.3 shall be binding upon each present and future
Lender Party and the Borrower.

          Section 9.4.     Cumulative Remedies: Failure or Delays; Enforcement.

          The rights and remedies provided for under this Agreement are cumulative and are not exclusive
of any rights and remedies that may be available to the Lender Parties under Applicable Law or
otherwise. No failure or delay on the part of any Lender Party in the exercise of any power, right
or remedy under the Loan Documents shall impair such power, right or remedy or operate as a waiver
thereof, nor shall any single or partial exercise of any such power, right or remedy preclude other
or further exercise thereof or of any other power, right or remedy.

          Notwithstanding anything to the contrary contained herein or in any other Loan Document, the
authority to enforce rights and remedies hereunder and under the other Loan Documents against the
Borrower shall be vested exclusively in, and all actions and proceedings at law in connection with
such enforcement shall be instituted and maintained exclusively by, the Agent in accordance with
Section 7.2 for the benefit of all the Lenders; provided, however, that the
foregoing shall not prohibit (a) the Agent from exercising on its own behalf the rights and
remedies that inure to its benefit (solely in its capacity as Agent) hereunder and under the other
Loan Documents, (b) any Lender from exercising setoff rights in accordance with Section 9.7
(subject to the terms of Section 2.11), or (c) any Lender from filing proofs of claim or
appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to
the Borrower under any bankruptcy or insolvency proceeding; and provided, further,
that if at any time there is no Person acting as Agent hereunder and under the other Loan
Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Agent
pursuant to Section 7.2 and (ii) in addition to the matters set forth in clauses (b) and
(c) of the preceding proviso and subject to Section 2.11, any Lender may, with the consent
of the Required Lenders, enforce any rights and remedies available to it and as authorized by the
Required Lenders.

          Section 9.5     Notices; Effectiveness; Electronic Communication.

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

          (i)
      if to the Borrower or the Agent, to the address, telecopier number,
electronic mail address or telephone number specified for such Person on
Schedule 9.5; and

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

          Notices and other communications sent by hand or overnight courier service, or mailed

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by certified or registered mail, shall be deemed to have been given when received;
notices and other communications sent by telecopier shall be deemed to have been given when
sent, if confirmation of receipt has been received (except that, if not given during normal
business hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient). Notices and other communications
delivered through electronic communications to the extent provided in subsection (b) below,
shall be effective as provided in such subsection (b).

          (b)
      Electronic Communications. Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Agent,
provided that the foregoing shall not apply to notices to any Lender pursuant to
Article II if such Lender has notified the Agent that it is incapable of receiving
notices under such Article by electronic communication. 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 in writing, provided
that approval of such procedures may be limited to particular notices or communications and
neither the Borrower nor the Agent shall have any obligation to agree to accept any
electronic notices.

          Unless the Agent otherwise prescribes, (i) notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from
the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or
other communication is received after the normal business hours of the recipient, such
notice or communication shall be deemed to have been received at the opening of business on
the next business day for the recipient, and (ii) notices or communications posted to an
Internet or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause (i) of
notification that such notice or communication is available and identifying the website
address therefor.

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

          (d)
      Change of Address, Etc. Each of the Borrower or the Agent may change its

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

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

          Section 9.6.     Successors and Assigns; Designations.

          (a)
      Successors and Assigns Generally. The provisions of this Agreement and the
other Loan Documents shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the Borrower may
not assign or otherwise transfer any of its rights or obligations hereunder or thereunder
without the prior written consent of each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of this Section, (iii) by
way of pledge or assignment of a security interest subject to the restrictions of subsection
(f) of this Section, or (iv) to an SPC (as defined in Section 9.6(g)) in accordance
with the provisions of subsection (h) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Agent and the Lenders) any legal or equitable right,
remedy or claim under or by reason of this Agreement.

          (b)
      Assignments by Lenders. Any Lender may at any time assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this Agreement and
the other Loan Documents (including all or a portion of its Revolving Commitment and the
Loans at the time owing to it); provided that:

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          (i)
      except in the case of an assignment of the entire remaining amount of the
assigning Lender’s Revolving Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an Approved
Fund with respect to a Lender, the aggregate amount of the Revolving Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the Revolving
Commitment is not then in effect, the principal outstanding balance of the Loans of
the assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the Agent
or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $10,000,000 unless each of the Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met;

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

          (iii)      any assignment of a Revolving Commitment must be approved by the Agent
(such approval not to be unreasonably withheld) unless the Person that is the
proposed assignee is itself a Lender, an Affiliate of a Lender or an Approved Fund
(whether or not the proposed assignee would otherwise qualify as an Eligible
Assignee); and

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

          Subject to acceptance and recording thereof by the Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment and Assumption,
the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and obligations of
a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of
the interest assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering all of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to
be a party hereto but shall continue to be entitled to the benefits of Sections
2.13, 2.14, 2.16, 9.1 and 9.2 with respect to facts and
circumstances occurring prior to the effective date of such assignment and shall continue to
retain the obligations with respect thereto as well). Upon request, the Borrower (at its
expense) shall execute and deliver applicable Note(s) to the assignee Lender, and the
assignor Lender shall surrender and cancel any Notes, if requested. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a sale by such Lender of
a participation in such rights and obligations in accordance with subsection (d) of this
Section.

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          (c)
      Register. The Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the Revolving
Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the
terms hereof from time to time (the “Register”). The entries in the Register shall
be conclusive, absent manifest error, and the Borrower, the Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower, at any reasonable time and from
time to time upon reasonable prior notice, and the Borrower may also receive a copy of the
Register upon request. In addition, at any time that a request for a consent for a material
or other substantive change to the Loan Documents is pending, any Lender wishing to consult
with other Lenders in connection therewith may request and receive from the Agent a copy of
the Register.

          (d)
      Participations. Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Agent, sell participations to any Person (other than a
natural person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries or any
competitor of the Borrower or any of its Affiliates or Subsidiaries or any Affiliate of a
competitor of the Borrower or any of its Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under
this Agreement (including all or a portion of its Revolving Commitment and/or the Loans;
provided that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, shall be the sole holder of the Note(s), if any, and
Loan Documents subject to the participation and shall have the sole right to enforce its
rights and remedies under the Loan Documents and (iii) the Borrower, the Agent and the other
Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement and the other Loan Documents.

          Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and the other
Loan Documents and to approve any amendment, modification or waiver of any provision of
this Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment, waiver or
other modification that would change the amount, interest rate or maturity of the Loans or
any other matter that requires unanimous consent of all of the Lenders. Subject to
subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled
to the benefits of Sections 2.13, 2.14 and 2.16 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to subsection
(b) of this Section.

          (e)
      Limitations upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Section 2.13 or 2.14 than the
applicable Lender would have been entitled to receive with respect to the participation sold
to such Participant, unless the sale of the participation to such Participant is made with
the Borrower’s prior written consent. A Participant that would be a foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 2.13 unless the
Borrower is notified of the participation sold to such Participant and the Borrower is
provided with evidence satisfactory to the Borrower that such Participant has agreed, for
the benefit of the Borrower, to comply with Sections 2.15, 2.16 and
2.17 to the same extent as if it were a Lender and had acquired its interest
pursuant to subsection (b) of this Section.

          (f)
      Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including under its Note,
if any) to secure

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obligations of such Lender, including any pledge or assignment to secure obligations to
a Federal Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto.

          (g)
      Special Purpose Funding Vehicles. Notwithstanding anything to the contrary
contained herein, so long as any action in accordance with this Section 9.6(g) does
not cause increased costs or expenses for the Borrower, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”) the option to
fund all or any part of any Loan that such Granting Lender would otherwise be obligated to
fund pursuant to this Agreement; provided that (i) nothing herein shall constitute a
commitment by any SPC to fund any Loan, (ii) if an SPC elects not to exercise such option or
otherwise fails to fund all or any part of such Loan, the Granting Lender shall be obligated
to fund such Loan pursuant to the terms hereof, (iii) no SPC shall have any voting rights
pursuant to Section 9.3 and (iv) with respect to notices, payments and other matters
hereunder, the Borrower, the Agent and the Lenders shall not be obligated to deal with an
SPC, but may limit their communications and other dealings relevant to such SPC to the
applicable Granting Lender. The funding of a Loan by an SPC hereunder shall utilize the
Revolving Commitment of the Granting Lender to the same extent that, and as if, such Loan
were funded by such Granting Lender. Each party hereto hereby agrees that no SPC shall be
liable for any indemnity or payment under this Agreement for which a Lender would otherwise
be liable for so long as, and to the extent, the Granting Lender provides such indemnity or
makes such payment. Notwithstanding anything to the contrary contained in this Agreement,
any SPC may disclose any non-public information relating to its funding of Loans to any
rating agency, commercial paper dealer or provider of any surety or guarantee to such SPC so
long as such disclosure is clearly designated as being made on a confidential basis. This
Section 9.6(g) may not be amended without the prior written consent of each Granting
Lender, all or any part of whose Loan is being funded by an SPC at the time of such
amendment.

          Section 9.7.     Set Off.

          In addition to any rights now or hereafter granted under Applicable Law and to the extent not
prohibited by law or Contractual Obligation of such Lender Party, during the existence of any Event
of Default, each Lender Party is hereby irrevocably authorized by the Borrower, at any time or from
time to time, without notice to the Borrower or to any other Person, any such notice being hereby
expressly waived, to set off and to appropriate and to apply any and all deposits (general or
special, including certificates of deposit, whether matured or unmatured, but not including trust
accounts) and any other indebtedness, in each case whether direct or indirect or contingent or
matured or unmatured at any time held or owing by such Lender Party to or for the credit or the
account of the Borrower, against and on account of the Obligations, irrespective of whether or not
such Lender Party shall have made any demand for payment, provided that such Lender Party shall,
promptly following such set off or application, give notice to the Borrower thereof, which notice
shall contain an explanation of the basis for the set off or application.

          Section 9.8.     Survival of Agreements, Representations and Warranties.

          All agreements, representations and warranties made hereunder and in any other Loan Document
shall survive the execution and delivery hereof and thereof. Such representations and warranties
have been or will be relied upon by the Agent and each Lender regardless of any investigation made
by the Agent or any Lender or on their behalf (unless the Agent or such Lender, as applicable, had
actual knowledge contrary thereto prior to its reliance), and shall continue in full force and
effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.
Without limitation, the

58

 

agreements and obligations of the Borrower contained in Sections 2.13, 2.16,
9.1, and 9.2 and the obligations of the Lenders under Sections 2.15,
2.16 and 8.7 shall survive the payment in full of all other Obligations.

          Section 9.9.     Execution in Counterparts.

          This Agreement may be executed in any number of counterparts, each of which counterparts, when
so executed and delivered, shall be deemed to be an original and all of which counterparts, taken
together, shall constitute but one and the same Agreement.

          Section 9.10.     Complete Agreement.

          This Agreement, together with the other Loan Documents and the Fee Letter, represents the
entire agreement of the parties hereto and supersedes all prior agreements and understandings, oral
or written, if any, including any commitment letters or correspondence relating to the Loan
Documents or the transactions contemplated therein.

          Section 9.11.     Limitation of Liability.

          No claim shall be made by the Borrower or any Lender Party against any party hereto or the
Affiliates, directors, officers, employees or agents of any party hereto for any special, indirect,
consequential or punitive damages in respect of any claim for breach of contract or under any other
theory of liability arising out of or related to the transactions contemplated by this Agreement,
or any act, omission or event occurring in connection therewith; and the Borrower and each Lender
Party waives, releases and agrees not to sue upon any claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

          Section 9.12.     WAIVER OF TRIAL BY JURY.

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

          Section 9.13.     Confidentiality.

          Each of the Agent and the Lenders agrees to maintain the confidentiality of the Information
(as defined below), except that Information may be disclosed (a) to its Affiliates and to its and
its Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and
representatives who have a specific need to use the Information in connection with this Agreement
and any transactions contemplated hereby (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential and to use such Information only in connection with this
Agreement and any transactions

59

 

contemplated hereby), (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 in connection with this Agreement
and any transactions contemplated hereby and with the understanding that the Information will be
used only in connection with this Agreement and any transactions contemplated hereby, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any Eligible Assignee of or Participant in, or any
prospective Eligible Assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the consent of the
Borrower or (h) to the extent such Information (x) becomes publicly available other than as a
result of a breach of this Section or (y) becomes available to the Agent and any Lender or any of
their respective Affiliates on a nonconfidential basis from a source other than the Borrower; or
(i) to the National Association of Insurance Commissioners or any other similar organization;
provided that with respect to clause (c) above, the Agent or the Lender, as applicable, will use
reasonable efforts to notify the Borrower prior to any such disclosure. In addition, the Agent and
the Lenders may disclose the existence of this Agreement and information about this Agreement (to
the extent such information constitutes public information pursuant to the Borrower’s SEC
disclosure) to market data collectors, similar service providers to the lending industry, and
service providers to the Agent and the Lenders in connection with the administration and management
of this Agreement, the other Loan Documents and the Revolving Commitments.

          For purposes of this Section, “Information” means all information received from the
Borrower or any Subsidiary relating to the Borrower or any Subsidiary or any of their respective
businesses, including, without limitation, inventions, improvements, trade secrets, processes,
data, software programs, techniques, marketing plans, strategies, forecasts, forward looking
statements and projections, estimates and assumptions concerning anticipated results, unpublished
copyrightable material, customer lists, customer information, sources of supply, prospects or
projections, manufacturing techniques, formulas, research or experimental work, work in process and
all information regarding transactions between the Borrower or any Subsidiary and its customers,
including without limitation, sales documents, transactions receipts, customer names, account
numbers, transaction amounts and dates, other than any such information that is available to the
Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any
Subsidiary. Any Person required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information except to the extent that Applicable Law
imposes additional requirements in which case such Person shall be required to abide by such
additional requirements.

          Each of the Agent and the Lenders acknowledges that (a) the Information may include material
non-public information concerning the Borrower or a Subsidiary, as the case may be, (b) it has
developed compliance procedures regarding the use of material non-public information and (c) it
will handle such material non-public information in accordance with Applicable Law, including
Federal and state securities Laws.

          In addition, the Agent may disclose to any agency or organization that assigns standard
identification numbers to loan facilities such basic information describing the facilities provided
hereunder as is necessary to assign unique identifiers (and, if requested, supply a copy of this
Agreement), it being understood that the Person to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to make available to the public only
such Information as such

60

 

person normally makes available in the course of its business of assigning identification numbers.

     Section 9.14. Binding Effect; Continuing Agreement.

     (a) This Agreement shall become effective at such time when all of the conditions set
forth in Section 3.1 have been satisfied or waived by the Lenders and it shall have
been executed by the Borrower, the Agent, and each Lender, and thereafter this Agreement
shall be binding upon and inure to the benefit of the Borrower, the Agent and each Lender
and their respective successors and assigns.

     (b) This Agreement shall be a continuing agreement and shall remain in full force and
effect until all Loans, interest, Fees and other Obligations have been paid in full and the
Revolving Commitments are terminated. Upon termination, the Borrower shall have no further
obligations (other than the indemnification provisions that survive) under the Loan
Documents; provided that should any payment, in whole or in part, of the Obligations
be rescinded or otherwise required to be restored or returned by the Agent or any Lender,
whether as a result of any proceedings in bankruptcy or reorganization or any similar
reason, then the Loan Documents shall automatically be reinstated and all amounts required
to be restored or returned and all costs and expenses incurred by the Agent or any Lender in
connection therewith shall be deemed included as part of the Obligations.

     Section 9.15. NO ORAL AGREEMENTS.

     ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

     Section 9.16. USA Patriot Act Notice.

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

     Section 9.17. No Advisory or Fiduciary Responsibility.

     In connection with all aspects of each transaction contemplated hereby (including in
connection with any amendment, waiver or other modification hereof or of any other Loan Document),
the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A)
the arranging and other services regarding this Agreement provided by the Agent, BAS and the other
Lead Arranger(s) are arm’s-length commercial transactions between the Borrower and its Affiliates,
on the one hand, and the Agent, BAS and the other Lead Arranger(s), on the other hand, (B) the
Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate, and (C) the Borrower is capable of evaluating, and understands and accepts, the
terms, risks and conditions of the transactions contemplated hereby and by the other Loan
Documents; (ii) (A) the Agent, BAS and each other Lead Arranger(s) each is and has been acting
solely as a principal and, except as expressly agreed in writing by the relevant parties, has not
been, is not, and will not be acting as an advisor, agent or fiduciary

61

 

for the Borrower or any of its Affiliates, or any other Person and (B) neither the Agent, BAS
nor any other Lead Arranger(s) has any obligation to the Borrower or any of its Affiliates with
respect to the transactions contemplated hereby except those obligations expressly set forth herein
and in the other Loan Documents; and (iii) the Agent, BAS and the other Lead Arranger(s) and their
respective Affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Borrower and its Affiliates, and neither the Agent, BAS nor any other Lead
Arranger(s) has any obligation to disclose any of such interests to the Borrower and its
Affiliates. To the fullest extent permitted by Law, the Borrower hereby waives and releases any
claims that it may have against the Agent, BAS and the other Lead Arranger(s) with respect to any
breach or alleged breach of agency or fiduciary duty in connection with any aspect of any
transaction contemplated hereby.

     Section 9.18. Electronic Execution of Assignments and Certain Other Documents.

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

     Section 9.19. Replacement of Lenders.

     If (i) any Lender requests compensation under Section 2.13, (ii) the Borrower is
required to pay any additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.16, (iii) a Lender (a “Non-Consenting Lender”)
does not consent to a proposed change, waiver, discharge or termination with respect to any Loan
Document that has been approved by the Required Lenders as provided in Section 9.3 but
requires unanimous consent of all Lenders or all Lenders directly affected thereby (as applicable)
or (iv) any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort,
upon notice to such Lender and the Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in, and consents required
by, Section 9.6), all of its interests, rights and obligations under this Agreement and the
related Loan Documents to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Agent the assignment fee specified in
Section 9.6(b)(iv);

     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under Section
2.14) from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 2.14 or payments required to be made pursuant to Section 2.16, such
assignment will result in a reduction in such compensation or payments thereafter;

     (d) such assignment does not conflict with Applicable Laws; and

62

 

     (e) in the case of any such assignment resulting from a Non-Consenting Lender’s failure
to consent to a proposed change, waiver, discharge or termination with respect to any Loan
Document, the applicable replacement bank, financial institution or Fund consents to the
proposed change, waiver, discharge or termination; provided that the failure by such
Non-Consenting Lender to execute and deliver an Assignment and Assumption shall not impair
the validity of the removal of such Non-Consenting Lender and the mandatory assignment of
such Non-Consenting Lender’s Revolving Commitments and outstanding Loans pursuant to this
Section 9.19 shall nevertheless be effective without the execution by such
Non-Consenting Lender of an Assignment and Assumption.

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

[SIGNATURE PAGES FOLLOW]

63

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Agreement to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 	 	 
	BORROWER:	 	NORDSTROM, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	By:  /s/ Robert E. Campbell	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	 Robert E. Campbell	 	 
	 	 	 
	 	 
	 

	 	Title:
	 	VP and Treasurer	 	 
	 	 	 
	 	 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 
	AGENT:	 	BANK OF AMERICA, N.A., in its	 	 
	 	 	capacity as Agent	 	 
	 
	 
	 	 	 	 	 	 
	 	 	By: /s/  Don B. Pinzon	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Don B. Pinzon	 	 
	 	 	 
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 
	 	 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 
	LENDERS:	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	By: /s/  Jaime Eng	 	 
	 	 	 
	 	 
	 

	 	Name:
	 	Jaime Eng	 	 
	 	 	 
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 
	 	 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Deborah S. Watson	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Deborah S. Watson	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Senior Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Charlotte Sohn Fuiks	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Charlotte Sohn Fuiks	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Managing Director	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Conan Schleicher	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Conan Schleicher	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Ashley Colmenero	 	 
	 	 	   	 	 
	 

	 	Name:
	 	Ashley Colmenero	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Assistant Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	STATE BANK OF INDIA
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Prabodh Parikh	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Prabodh Parikh	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President and Head (Credit)	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	MORGAN STANLEY BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Melissa James	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Melissa James	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK MELLON
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Timothy J. Glass	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Timothy J. Glass	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	GOLDMAN SACHS BANK USA
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Mark Walton	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Mark Walton	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Anthony W. White	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Anthony W. White	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Sarah Dill	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Sarah Dill	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	THE NORTHERN TRUST COMPANY
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Brandon Rolek	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Brandon Rolek	 	 
	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	UNION BANK, N.A.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Don Smith	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Don Smith	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Credit Executive	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	BANK OF HAWAII
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Steven Nakahara	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Steven Nakahara	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Vice President	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	CATHAY UNITED BANK
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Grace Chou	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Grace Chou	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	SVP & General Manager	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	FIRST COMMERCIAL BANK, LOS ANGELES BRANCH
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Wen-Han Wu	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Wen-Han Wu	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	Deputy General Manager	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	CHANG HWA COMMERCIAL BANK, LTD.,

NEW YORK BRANCH
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Eric Y.S. Tsai	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Eric Y.S. Tsai	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	VP & General Manager	 	 
	 	 	 

	 	 

 

 

Signature Page

Nordstrom, Inc.

Revolving Credit Agreement

	 	 	 	 	 	 	 
	 	 	HUA NAN COMMERCIAL BANK, LTD.,

LOS ANGELES BRANCH
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By: /s/
	 	Oliver C.H. Hsu	 	 
	 	 	 

	 	 
	 

	 	Name:
	 	Oliver C.H. Hsu	 	 
	 	 	 

	 	 
	 

	 	Title:
	 	V.P. & General Manager	 	 
	 	 	 

	 	 

 

 

Exhibit to Revolving Credit Facility [2.1(c)]

FORM OF

NOTICE OF BORROWING

			
	TO:	 	Bank of America, N.A., as Agent

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA   94520-2405

Attention: Glenis Croucher

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and other financial institutions that either now or in the
future are parties thereto as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as
Syndication Agent and BANK OF AMERICA, N.A., a national banking association, in its capacity as
administrative agent on behalf of the Lenders (in such capacity, the “Agent”). Terms with
initial capital letters used but not defined herein have the meanings assigned to them in the
Credit Agreement.

          Pursuant to Section 2.1 of the Credit Agreement:

          1.      The Borrower hereby requests to borrow Revolving Loans in the aggregate principal amounts
and Types as follows (the “Loans”):

          (a)
      Euro-Dollar Rate Loans in the amount of
$                     on
                    ,
20___1 with an Interest Period of                     2; or

          (b)      Base Rate Loans in the amount of
$                     on
                    ,
20___3; and

          2.      The Borrower hereby represents and warrants as follows:

          (a)      All of the representations and warranties contained in Article 4 of the Credit Agreement
and in the other Loan Documents are true and correct in all material respects on and as of the date
hereof and shall be true and correct in all material respects on and as of each Funding Date
proposed herein as though made on and as of each such date (except, in each case, to the extent
that such representations and warranties expressly were made only as of a specific date);

          (b)      No Default or Event of Default exists or would result from the making of the Loans; and

          (c)      All other conditions to borrowing set forth in Section 3.2 of the Credit Agreement are
satisfied.

Date:          
                  ,        

 

			
	1	 	Must be a Euro-Dollar Business Day.
	 
	2	 	With respect to each Euro-Dollar Rate Loan,
permissible Interest Periods are periods of one, two, three or six months.
	 
	3	 	Must be a Business Day.

 

 

	 	 	 	 	 
	 	NORDSTROM, INC.,

a Washington corporation

 	 
	 	By:  	
 	 4
 
	 	Name: 
	 
	 	Title: 
	 
	 

 

			
	4	 	Must be a Responsible Officer.

 

 

Exhibit to Revolving Credit Facility [2.1(c)(iii)]

FORM OF

NOTICE OF RESPONSIBLE OFFICERS

			
	TO:	 	Bank of America, N.A., as Agent

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA   94520-2405

Attention: Glenis Croucher

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and other financial institutions that either now or in the
future are parties thereto as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as
Syndication Agent and BANK OF AMERICA, N.A., a national banking association, in its capacity as
administrative agent on behalf of the Lenders (in such capacity, the “Agent”). Terms with
initial capital letters used but not defined herein have the meanings assigned to them in the
Credit Agreement.

          The Borrower hereby designates the following individuals as Responsible Officers, authorized
to request Loans, continue outstanding Loans, convert Loans to another Type and request rate and
balance information and take other actions with respect to Loans on behalf of the Borrower (but not
to amend the Credit Agreement or the Notes) and certifies that the signatures and telephone numbers
of those individuals are as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Name	 	 	Office	 	 	Signature	 	 	Phone No.	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

          The Agent is hereby authorized to rely on this Notice of Responsible Officers unless and until
a new Notice of Responsible Officers is received by it, irrespective of whether any of the
information set forth herein shall have become inaccurate or false. Additional persons may be
designated as Responsible Officers, or the designation of any person may be revoked, at any time,
by subsequent Notices of Responsible Officers signed by a Senior Officer of the Borrower. In
accordance with the Credit Agreement, the Agent shall have no duty to verify the authenticity of
the certifying signature appearing on any subsequent Notices of Responsible Officers to the extent
the Agent believes in good faith that such signature is of a Senior Officer of the Borrower.

 

 

          The foregoing supersedes any Notice of Responsible Officers presently in effect under the
Credit Agreement.

          Date:                     ,      

	 	 	 	 	 
	 	 	 	 	 
	 	 

	 
	 	By:  	 	1
	 	Name: 
	 
	 	Title: 
	 
	 

 

			
	1	 	Must be a Senior Officer.

 

 

Exhibit to Revolving Credit Facility [2.2(b)(i)]

FORM OF

BID LOAN QUOTE REQUEST

			
	TO:	 	Bank of America, N.A., as Agent

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA   94520-2405

Attention: Glenis Croucher

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and other financial institutions that either now or in the
future are parties thereto as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as
Syndication Agent and BANK OF AMERICA, N.A., a national banking association, in its capacity as
administrative agent on behalf of the Lenders (in such capacity, the “Agent”). Terms with
initial capital letters used but not defined herein have the meanings assigned to them in the
Credit Agreement.

          Pursuant to Section 2.2 of the Credit Agreement:

          1.      The Borrower hereby gives notice that it requests Bid Loan Quotes for the following
proposed Bid Loan Borrowing(s)1:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Funding Date2	 	 	Amount3	 	 	Interest Period4	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

          2.      The Borrower hereby represents and warrants as follows:

          (a)      All of the representations and warranties contained in Article 4 of the Credit Agreement
and in the other Loan Documents are true and correct in all material respects on and as of the date
hereof and shall be true and correct in all material respects on and as of each Funding Date
proposed herein as though made on and as of each such date (except, in each case, to the extent
that such representations and warranties expressly were made only as of a specific date);

          (b)      No Default or Event of Default exists or would result from the Bid Loan Borrowing(s); and

          (c)      All other conditions to borrowing set forth in Section 3.2 of the Credit Agreement are
satisfied.

Date:       
                 ,         

 

			
	1	 	Up to three.
	 
	2	 	Must be a Business Day.
	 
	3	 	Each amount must be at least $2,000,000 and an
integral multiple of $1,000,000 in excess thereof.
	 
	4	 	A period of not less than 7 and not more than 30 days
after the Funding Date and ending on a Business Day.

 

 

	 	 	 	 	 
	 	NORDSTROM, INC.,

a Washington corporation

 	 
	 	By:  	
 	 5
 
	 	Name: 
	 
	 	Title: 
	 
	 

 

			
	5	 	Must be a Responsible Officer.

 

 

Exhibit to Revolving Credit Facility [2.2(b)(ii)]

FORM OF

BID LOAN QUOTE

			
	TO:	 	Bank of America, N.A., as Agent

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA   94520-2405

Attention: Glenis Croucher

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and other financial institutions that either now or in the
future are parties thereto as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as
Syndication Agent and BANK OF AMERICA, N.A., a national banking association, in its capacity as
administrative agent on behalf of the Lenders (in such capacity, the “Agent”). Terms with
initial capital letters used but not defined herein have the meanings assigned to them in the
Credit Agreement.

          In response to the Borrower’s Bid Loan Quote Request dated
                    ,       (the “Bid
Loan Quote Request”), we hereby make the following Bid Loan Quote(s) on the following terms:

          1.      Quoting Bank:
                                        

          2.      Name, address, phone number and fax number of person to contact at Quoting Bank:
                                        

          3.      We hereby offer to make Bid Loan(s) in the following principal amount(s), for the following
Interest Period(s) and the following rate(s):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Funding Date1	 	 	Amount2	 	 	Interest Period3	 	 	Quote4	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

			
	1	 	As specified in the Bid Loan Quote Request.
	 
	2    The principal amount bid for each Interest Period may
not exceed the principal amount requested. Bids must be made for at least
$2,000,000 and an integral multiple of $1,000,000 in excess thereof.
	 
	3	 	As specified in the Bid Loan Quote Request.
	 
	4	 	Specify rate of interest per annum ([quoted on an
“all-in” basis] and rounded to the nearest 1/10,000 of 1%).

 

 

          We understand and agree that the offer(s) set forth above, subject to the satisfaction of the
applicable conditions set forth in the Credit Agreement, irrevocably obligate(s) us to make the Bid
Loan(s) for which any offer(s) are accepted, in whole or in part, subject to the third sentence of
Section 2.2(b)(ii) of the Credit Agreement.

          Date:
                    ,      

	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	By:  	
 	 5
 
	 	Name: 
	 
	 	Title: 
	 
	 

 

			
	5	 	Must be a authorized Officer.

 

 

Exhibit to Revolving Credit Facility [2.4(b)(ii)]

FORM OF

NOTICE OF CONVERSION/CONTINUATION

			
	TO:	 	Bank of America, N.A., as Agent

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA   94520-2405

Attention: Glenis Croucher

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and financial institutions that either now or in the future
are parties thereto as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as Syndication
Agent and BANK OF AMERICA, N.A., a national banking association, in its capacity as administrative
agent on behalf of the Lenders (in such capacity, the “Agent”). Terms with initial capital
letters used but not defined herein have the meanings assigned to them in the Credit Agreement.

          Pursuant to Section 2.4(b) of the Credit Agreement:

[FOR CONVERSION OF BASE RATE INTO EURO-DOLLAR RATE]

          The Borrower hereby requests to convert $           of presently
outstanding Base Rate Loans on
                         , ___1 into
Euro-Dollar Rate Loans with an Interest Period of
                                        
2.

[FOR CONVERSION OF EURO-DOLLAR RATE INTO BASE RATE]

     The Borrower hereby requests to convert $           of presently outstanding Euro-Dollar Rate
Loans with an Interest Period of
                                        
     2, expiring on                            
   , ___ into Base
Rate Loans.

[FOR CONTINUATION OF EURO-DOLLAR RATE]

     The Borrower hereby requests to continue
$                     of presently outstanding Euro-Dollar Rate
Loans with an Interest Period of                      expiring on
                                        
, ___ as Euro-Dollar
Rate Loans with an Interest Period of
                                        
2.

 

			
	1	 	Must be a Euro-Dollar Business Day.
	 
	2	 	With respect to Euro-Dollar Rate Loans, permissible
Interest Periods are periods of one, two, three or six months.

 

 

Date:                     , ____

	 	 	 	 	 
	 	NORDSTROM, INC.,

a Washington corporation

 	 
	 	By:  	
 	 1
 
	 	Name: 
	 
	 	Title: 
	 
	 

 

			
	1	 	Must be a Responsible Officer.

 

 

Exhibit to Revolving Credit Facility [2.5(a)(i)]

FORM OF

REVOLVING LOAN NOTE

____________, 200_

          FOR VALUE RECEIVED, the undersigned, NORDSTROM, INC., a Washington corporation (the
“Borrower”), hereby promises to pay to the order of [insert name of Lender] (the
“Lender”), for the account of its Applicable Lending Office, the aggregate unpaid principal
amount of the Revolving Loans (the “Loans”) made by the Lender to the Borrower under the
Credit Agreement referred to below, on the dates and in the amounts set forth in the Credit
Agreement. The Borrower further promises to pay interest on the unpaid principal amount of each
such Loan from time to time outstanding on the dates and at the rates specified in the Credit
Agreement.

          This Revolving Loan Note (the “Note”) is one of the Revolving Loan Notes referred to
in, and is entitled to the benefits of, the Revolving Credit Agreement, dated as of August 14, 2009
(as the same may be amended, supplemented, replaced, renewed or otherwise modified from time to
time, the “Credit Agreement”), by and among the Borrower, each of the banks and other
financial institutions that either now or in the future are parties thereto as lenders (including
the Lender, the “Lenders”), WELLS FARGO BANK, N.A., as Syndication Agent and BANK OF
AMERICA, N.A., in its capacity as administrative agent on behalf of the Lenders (in such capacity,
the “Agent”), to which reference is hereby made for a more complete statement of the terms
and conditions on which the Loans evidenced hereby are made and are to be repaid. The Credit
Agreement provides for, among other things, the acceleration of the maturity hereof upon the
occurrence of certain events and for voluntary and mandatory prepayments under certain
circumstances and upon certain terms and conditions.

          Terms with initial capital letters used but not defined herein have the meanings assigned to
them in the Credit Agreement. All payments due hereunder shall be made to the Agent at the time
and place, in the type of funds, and in the manner set forth in the Credit Agreement, without any
deduction whatsoever, including, without limitation, any deduction for any set-off, recoupment,
counterclaim, defense, or Taxes (except as otherwise provided in the Credit Agreement). The
Borrower hereby waives diligence, presentment, demand, protest, notice of dishonor and all other
demands and notices in connection with the execution, delivery, performance or enforcement of this
Note, except as otherwise set forth in the Credit Agreement.

          The Lender is authorized (but not obligated) to endorse on the Schedule hereto, or on a
continuation thereof, each Loan made by the Lender and each payment or prepayment with respect
thereto. The failure to record, or any error in recording any, such information shall not,
however, affect the obligations of the Borrower hereunder to repay the principal amount of the
Loans evidenced hereby, together with all interest accrued thereon. All such notations shall
constitute conclusive evidence of the accuracy of the information so recorded, in the absence of
manifest error.

          The Borrower promises to pay all costs and expenses, including attorneys’ fees and
disbursements, incurred in the collection or enforcement hereof.

          Except as permitted by Section 9.6 of the Credit Agreement, this Note may not be assigned to
any Person.

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,

 

 

THE LAWS OF THE STATE OF WASHINGTON. THE BORROWER AND, BY ACCEPTANCE HEREOF, THE LENDER WAIVE THE
RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS NOTE OR ANY ACTION ARISING OUT OF THE
TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR ACTIONS.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

	 	 	 	 	 
	 	NORDSTROM, INC.,

a Washington corporation

 	 
	 	By:	 	 
	 	Name:	  	 
	 	Title:	  	 
	 

 

 

SCHEDULE

REVOLVING LOAN NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	 	 	 
	 	 	Type and	 	Interest	 	Interest	 	Principal	 	Unpaid Principal	 	Notation
	   Date	 	Amount of Note	 	Period	 	Rate	 	Paid	 	Amount of Note	 	Made
	 	 	 	 	 	 	 	 	or Prepaid	 	 	 	By
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

Exhibit to Revolving Credit Facility [2.5(a)(ii)]

FORM OF

BID LOAN NOTE

_____________, 200_

          FOR VALUE RECEIVED, the undersigned, NORDSTROM, INC., a Washington corporation (the
“Borrower”), hereby promises to pay to the order of [insert name of Lender] (the
“Lender”), for the account of its Domestic Lending Officer, the aggregate unpaid principal
amount of all Bid Loans (the “Loans”) made by the Lender to the Borrower under the Credit
Agreement referred to below, on the dates and in the amounts set forth in the Credit Agreement.
The Borrower further promises to pay interest on the unpaid principal amount of each such Loan from
time to time outstanding on the dates and at the rates specified in the Credit Agreement.

          This Bid Loan Note (the “Note”) is one of the Bid Loan Notes referred to in, and is
entitled to the benefits of, the Revolving Credit Agreement, dated as of August 14, 2009 (as the
same may be amended, supplemented, replaced, renewed or otherwise modified from time to time, the
“Credit Agreement”), by and among the Borrower, each of the banks and other financial
institutions that either now or in the future are parties thereto as lenders (including the Lender,
the “Lenders”), WELLS FARGO BANK, N.A., as Syndication Agent and BANK OF AMERICA, N.A., in
its capacity as administrative agent on behalf of the Lenders (in such capacity, the
“Agent”), to which reference is hereby made for a more complete statement of the terms and
conditions on which the Loans evidenced hereby are made and are to be repaid. The Credit Agreement
provides for, among other things, the acceleration of the maturity hereof upon the occurrence of
certain events and for voluntary and mandatory prepayments under certain circumstances and upon
certain terms and conditions.

          Terms with initial capital letters used but not defined herein have the meanings assigned to
them in the Credit Agreement. All payments due hereunder shall be made to the Agent at the time
and place, in the type of funds, and in the manner set forth in the Credit Agreement, without any
deduction whatsoever, including, without limitation, any deduction for any set-off, recoupment,
counterclaim, defense, or Taxes (except as otherwise provided in the Credit Agreement). The
Borrower hereby waives diligence, presentment, demand, protest, notice of dishonor and all other
demands and notices in connection with the execution, delivery, performance or enforcement of this
Note, except as otherwise set forth in the Credit Agreement.

          The Lender is authorized (but not obligated) to endorse on the Schedule hereto, or on a
continuation thereof, each Loan made by the Lender and each payment or prepayment with respect
thereto. The failure to record, or any error in recording any, such information shall not,
however, affect the obligations of the Borrower hereunder to repay the principal amount of the
Loans evidenced thereby, together with all interest accrued thereon. All such notations shall
constitute conclusive evidence of the accuracy of the information so recorded, in the absence of
manifest error.

          The Borrower promises to pay all costs and expenses, including attorneys’ fees and
disbursements, incurred in the collection or enforcement hereof.

          Except as permitted by Section 9.6 of the Credit Agreement, this Note may not be assigned to
any Person.

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
WASHINGTON. THE BORROWER AND, BY ACCEPTANCE

 

 

HEREOF, THE LENDER WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS NOTE OR ANY ACTION
ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH
ACTION OR ACTIONS.

ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW.

	 	 	 	 	 
	 	NORDSTROM, INC.,

a Washington corporation

 	 
	 	By:  	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

 

 

	 	 	 	 	 

SCHEDULE

BID LOAN NOTE

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	 	 	 
	 	 	Type and	 	Interest	 	Interest	 	Principal	 	Unpaid Principal	 	Notation
	   Date	 	Amount of Note	 	Period	 	Rate	 	Paid	 	Amount of Note	 	Made
	 	 	 	 	 	 	 	 	or Prepaid	 	 	 	By
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

 

 

Exhibit to Revolving Credit Facility [3.1(d)]

FORM OF

CLOSING OFFICER’S CERTIFICATE

	TO:	 	 Bank of America, N.A., as
Agent

Agency Management

335 Madison Avenue 4th Floor

Mail Code: NY1-503-04-03

New York, NY 10017

Attention: Steven Gazzillo

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (the
“Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), each of the banks and other financial institutions that are parties thereto as
lenders (the “Lenders”), WELLS FARGO BANK, N.A., as Syndication Agent and BANK OF AMERICA,
N.A., a national banking association, in its capacity as administrative agent on behalf of the
Lenders (in such capacity, the “Agent”). Terms with initial capital letters used but not
defined herein have the meanings assigned to them in the Credit Agreement.

          Pursuant to Section 3.1(d) of the Credit Agreement, the undersigned hereby certifies that he
is the chief financial officer of the Borrower and hereby further certifies as follows:

          1.      I have reviewed the terms of the Loan Documents to which the Borrower is a party and have
made, or caused to be made, such review of the Borrower and its business affairs as I have
considered necessary for the purposes of preparing this Certificate.

          2.      I have prepared and reviewed the contents of this Certificate and have conferred with
counsel for the Borrower for the purpose of discussing the meaning of any provisions hereof that I
desired to have clarified.

          3.      All representations and warranties of the Borrower contained in the Loan Documents to which
the Borrower is a party are true and correct in all material respects as of the date hereof as if
made on such date.

          4.      No Default or Event of Default exists on and as of the date hereof or would result from the
making of the Loans on the Closing Date.

          5.      The Borrower is in compliance with all existing material financial obligations.

 

 

          Date: August 14, 2009

	 	 	 	 	 
	 	 	 
	 	 	
 	 
	 	 	Name:  	 	 
	 	 	Title:  Chief Financial Officer 	 
	 

 

 

Exhibit to Revolving Credit Facility [5.1(c)]

FORM OF

COMPLIANCE CERTIFICATE

			
	TO:	 	Bank of America, N.A., as Agent

Agency Management

335 Madison Avenue 4th Floor

Mail Code: NY1-503-04-03

New York, NY 10017

Attention: Steven Gazzillo

          Reference is hereby made to the Revolving Credit Agreement, dated as of August 14, 2009 (as
the same may be amended, supplemented, replaced, renewed or otherwise modified from time to time,
the “Credit Agreement”), by and among NORDSTROM, INC., a Washington corporation (the
“Borrower”), the banks and other financial institutions from time to time parties thereto
as lenders (the “Lenders”), WELLS FARGO BANK, N.A., as Syndication Agent and BANK OF
AMERICA, N.A., as agent and representative for the Lenders (in such capacity or any successor in
such capacity is referred to herein as the “Agent”). Terms with initial capital letters
used but not defined herein have the meanings assigned to them in the Credit Agreement.

          This Compliance Certificate is being delivered pursuant to Section 5.1(c) of the Credit
Agreement and relates to certain financial statements of the Borrower (the “Financial
Statements”) as of and for [Fiscal Quarter][Fiscal Year] ended
                              
(the “Financial Statement Date”; such [period being the “accounting period”). The undersigned
is the [chief financial officer] [president] of the Borrower, and hereby further certifies as of
the date hereof, in [his/her] capacity as an officer of the Borrower, as follows:

          1.      I have reviewed the terms of the Loan Documents and have made, or have caused to be made, a
review in reasonable detail of the transactions and condition of the Borrower and its Subsidiaries
during the accounting period covered by the Financial Statements to make the statements contained
in this Compliance Certificate. I have also made such inquiries as have been necessary of other
officers of the Borrower in order to complete this Compliance Certificate.

          2.      Such review has not disclosed the existence of any Default or Event of Default during such
accounting period or as of the Financial Statement Date, and I do not have knowledge of the
existence, as at the date of this Compliance Certificate, of any Default or Event of
Default[,except as follows:1].

          3.      The Financial Statements which accompany this Compliance Certificate fairly present in all
material respects the financial condition of the Borrower and its Subsidiaries and have been
prepared in accordance with GAAP[, subject to change resulting from normal year end audit
adjustments].

          4.      As of the Financial Statement Date, the Borrower is in compliance with the Leverage Ratio
set forth in Section 6.3 of the Credit Agreement as set forth below:

 

1   Specify the nature and period of existence of each
Default or Event of Default (if any) and what action the Borrower has taken, is
taking, or proposes to take with respect thereto.

 

 

	 	 	 	 	 	 	 	 
	I. Maximum Leverage Ratio as of Financial Statement Date
	 
	 	 	 	 	 	 
	 

	 	A.
	 	Funded Debt as of the Financial Statement Date1
	 	$_________
	 

	 	B.
	 	Rent Expense for Preceding Twelve Months
	 	$_________
	 

	 	C.
	 	EBITDAR for Preceding Twelve Months
	 	$_________
	 
	 	 	 	 	 	 
	 

	 	 	 	Leverage Ratio as of Financial Statement Date
	 	        to 1.0
	 

	 	 	 	[(A + (B x 6)] ÷ C	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Maximum Leverage Ratio permitted under Section 6.3(a):
	 	4.0 to 1.0
	 
	 	 	 	 	 	 
	II. Minimum Fixed Charge Coverage Ratio as of Financial Statement Date
	 
	 	 	 	 	 	 
	 

	 	A.
	 	EBITDAR for Preceding Twelve Months
	 	$_________
	 

	 	B.
	 	Capital Expenditures for Preceding Twelve Months
	 	$_________
	 

	 	C.
	 	Interest Expense (net of interest income of the Borrower and its
Subsidiaries, as determined in accordance with GAAP) for Preceding
Twelve Months
	 	$_________
	 

	 	D.
	 	Rent Expense for Preceding Twelve Months
	 	$_________
	 
	 	 	 	 	 	 
	 

	 	 	 	Fixed Charge Coverage Ratio as of Financial Statement Date
	 	        to 1.0
	 

	 	 	 	(A – B) ÷ (C+D)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Minimum Fixed Charge Coverage Ratio permitted under
Section 6.3(b):
	 	2.0 to 1.0

The undersigned has executed this Compliance Certificate as of the
                          day of
                    .

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Name:  	 	 
	 	Title:  	 	2 
	 

 

1 For purposes of calculating the Leverage Ratio between
the Closing Date and February 1, 2010, Funded Debt shall be reduced by the
amount of cash on the balance sheet of the Borrower in an amount not to exceed
$250,000,000.

2 To be signed by the chief financial officer or
treasurer of the Borrower.

 

 

Exhibit to Revolving Credit Facility [9.6(b)]

FORM OF

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed
to and incorporated herein by reference and made a part of this Assignment and Assumption as if set
forth herein in full.

          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Agent as contemplated below (i) all of the Assignor’s rights and
obligations as a Lender under the Credit Agreement and any other documents or instruments delivered
pursuant thereto to the extent related to the amount and percentage interest identified below of
all of such outstanding rights and obligations of the Assignor under the respective facilities
identified below and (ii) to the extent permitted to be assigned under applicable law, all claims,
suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against
any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any
other documents or instruments delivered pursuant thereto or the loan transactions governed thereby
or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein
collectively as, the “Assigned Interest”). Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment and Assumption, without
representation or warranty by the Assignor.

	1.	 	Assignor:
                                        
                    

	 
	2.	 	Assignee:
                                        
                     [and is an Affiliate/Approved Fund
of [identify Lender]1]

	 
	3.	 	Borrower: Nordstrom, Inc.

	 
	4.	 	Agent: Bank of America, N.A., as the administrative agent under the Credit
Agreement.

	 
	5.	 	Credit Agreement: Credit Agreement, dated as of August 14, 2009, among Nordstrom,
Inc., the Lenders from time to time party thereto, and Bank of America, N.A., as
administrative agent.

 

1 Select as applicable.

 

 

	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	 	Amount of	 	 	 	Percentage	 	 
	 	 	 	 	Revolving	 	 	 	Revolving	 	 	 	Assigned of	 	 
	 	Facility Assigned	 	 	Commitment/Loans	 	 	 	Commitment/Loans	 	 	 	Revolving	 	 
	 	 	 	 	for all Lenders	 	 	 	Assigned	 	 	 	Commitment/Loans	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	Revolving Committed
Amount
	 	 	$	 	 	 	 	$	 	 	 	 	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	_________________
	 	 	$	 	 	 	 	$	 	 	 	 	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	_________________
	 	 	$	 	 	 	 	$	 	 	 	 	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 

	[7. 	 	Trade Date:
                              ]3

Effective Date:
                                   ,
20      [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE
DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

          The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	Title: 	 
	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	Title: 	 
	 	 	 	 
	 

 

2 Set forth, to at least 9 decimals, as a percentage of
the Revolving Commitment/Loans of all Lenders thereunder.

3 To be completed if the Assignor and the Assignee intend
that the minimum assignment amount is to be determined as of the Trade Date.

 

 

	 	 	 	 	 
	[Consented to and]4 Accepted:

BANK OF AMERICA, N.A., as

Agent

 	 	 
	By:  	 	 
	Title: 	 
	 	 	 
	 
	[Consented to:]5

NORDSTROM, INC.

 	 
	By:  	 	 
	Title: 
	 	 	 
	 

 

4 To be added only if the consent of the Agent is
required by the terms of the Credit Agreement.

5 To be added only if the consent of the Borrower is
required by the terms of the Credit Agreement.

 

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1.       Representations and Warranties.

          1.1.       Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and
clear of any lien, encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or
in connection with the Credit Agreement or any other Loan Document, (ii) the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents
or any collateral thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or
(iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or
any other Person of any of their respective obligations under any Loan Document.

          1.2.       Assignee. The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby and to
become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible
Assignee under the Credit Agreement (subject to receipt of such consents, if any, as may be
required under the Credit Agreement), (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is
sophisticated with respect to decisions to acquire assets of the type represented by the
Assigned Interest and either it, or the Person exercising discretion in making its decision
to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it
has received a copy of the Credit Agreement, and has received or has been accorded the
opportunity to receive copies of the most recent financial statements delivered pursuant to
Section 5.1 thereof, as applicable, and such other documents and information as it deems
appropriate to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest, (vi) it has, independently and without
reliance upon the Agent or any other Lender and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter into this
Assignment and Assumption and to purchase the Assigned Interest, and (vii) if it is a
Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant
to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b)
agrees that (i) it will, independently and without reliance on the Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking action under
the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

          2.       Payments. From and after the Effective Date, the Agent shall make all payments in
respect of the Assigned Interest (including payments of principal, interest, fees and other
amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to
the Assignee for amounts which have accrued from and after the Effective Date.

 

 

          3.       General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Washington.

 

 

Schedule 1.1(c)

Revolving Commitments

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Lender	 	 	Commitment	 	 	Applicable
Percentage	 
	 	Bank of America, N.A.
	 	 	$	88,500,000.00	 	 	 	 	13.615384615	%	 
	 	Wells Fargo Bank, N.A.
	 	 	$	88,500,000.00	 	 	 	 	13.615384615	%	 
	 	The Royal Bank of Scotland plc
	 	 	$	75,000,000.00	 	 	 	 	11.538461538	%	 
	 	U.S. Bank National Association
	 	 	$	75,000,000.00	 	 	 	 	11.538461538	%	 
	 	Fifth Third Bank
	 	 	$	53,000,000.00	 	 	 	 	8.153846153	%	 
	 	State Bank of India
	 	 	$	40,000,000.00	 	 	 	 	6.153846153	%	 
	 	Morgan Stanley Bank, National Association
	 	 	$	35,000,000.00	 	 	 	 	5.384615384	%	 
	 	The Bank of New York Mellon
	 	 	$	30,000,000.00	 	 	 	 	4.615384615	%	 
	 	Goldman Sachs Bank USA
	 	 	$	25,000,000.00	 	 	 	 	3.846153846	%	 
	 	JPMorgan Chase Bank, N.A.
	 	 	$	25,000,000.00	 	 	 	 	3.846153846	%	 
	 	KeyBank National Association
	 	 	$	25,000,000.00	 	 	 	 	3.846153846	%	 
	 	The Northern Trust Company
	 	 	$	25,000,000.00	 	 	 	 	3.846153846	%	 
	 	Union Bank, N.A.
	 	 	$	25,000,000.00	 	 	 	 	3.846153846	%	 
	 	Bank of Hawaii
	 	 	$	10,000,000.00	 	 	 	 	1.538461538	%	 
	 	Cathay United Bank
	 	 	$	10,000,000.00	 	 	 	 	1.538461538	%	 
	 	First Commercial Bank, Los Angeles Branch
	 	 	$	10,000,000.00	 	 	 	 	1.538461538	%	 
	 	Chang Hwa Commercial Bank, New York Branch
	 	 	$	5,000,000.00	 	 	 	 	0.769230769	%	 
	 	Hua Nan Commercial Bank, Ltd., Los
Angeles Branch
	 	 	$	5,000,000.00	 	 	 	 	0.769230769	%	 
	 	TOTAL
	 	 	$650,000,000.00	 	 	100.00%	 
	 

 

 

SCHEDULE 9.5

CERTAIN ADDRESSES FOR NOTICES

BORROWER:

Nordstrom, Inc.

1700 Seventh Avenue, 12th Floor

Seattle, WA 98101-1397

Attn: Robert E. Campbell

Telephone: 206-303-3290

Facsimile: 206-303-3009

Electronic Mail: rob.campbell@nordstrom.com

With a copy to:

Nordstrom, Inc.

1700 Seventh Avenue, Suite 700

Seattle, WA 98101-4407

Attn: Robert B. Sari

Telephone: 206-303-2540

Facsimile: 206-303-2789

Electronic Mail: robert.sari@nordstrom.com

Copies of material notices, including notices of any Default, to:

Lane Powell PC

1420 Fifth Avenue, Suite 4100

Seattle, WA 98101

Attention: Joan Robinson

Telephone: (206) 233-6000

Facsimile: (206) 223-7107

Electronic Mail: robinsonj@lanepowell.com

Copies of material notices, including notices of any Default, to:

Moore & Van Allen PLLC

100 N. Tryon, 47th Floor

Charlotte, NC 28202

Attention: Lauren Biek

Telephone: 704-331-1166

Facsimile: 704-339-5920

Electronic Mail: laurenbiek@mvalaw.com

 

 

ADMINISTRATIVE AGENT:

Administrative Agent’s Office

(for payments and Requests for Credit Extensions):

Bank of America, N.A.

2001 Clayton Road, Building B

Mail Code: CA4-702-02-25

Concord, CA 94520-2405

Attention: Glenis Croucher

Telephone: 925-675-8361

Facsimile: 888-969-3315

Electronic Mail: glenis.croucher@bankofamerica.com

Payment Instructions:

Bank of America, N.A.

New York, NY

ABA # 026009593

Account No.: 3750836479

Account Name: Credit Services #5596

Ref: Nordstrom, Inc.

Other Notices as Administrative Agent:

Bank of America, N.A.

Agency Management

335 Madison Avenue 4th Floor

Mail Code: NY1-503-04-03

New York, NY 10017

Attention: Steven Gazzillo

Telephone: 646-556-0328

Facsimile: 212-901-7842

Electronic Mail: steven.gazzillo@bankofamerica.com

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