Document:

exv10w1

Exhibit 10.1

IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

EFFECTIVE MAY 4, 2005

(As amended May 5, 2010)

SECTION 1. PURPOSE

     (a) The purpose of the Program is to attract and retain well-qualified persons for service as
nonemployee directors of the Company and to promote identity of interest between directors and
stockholders of the Company. The Program is designed and intended to comply with Rule 16b-3 under
the Securities Exchange Act of 1934, as amended, as such Rule may be amended from time to time, and
shall be interpreted in a manner consistent with the requirements thereof, as now or hereafter
construed, interpreted and applied by regulations, rulings and cases.

     (b) The Program is also intended to comply in form and operation with the requirements of
Section 409A of the Code, or an exception thereto.

SECTION 2. DEFINITIONS

     The following words and phrases have the meaning indicated below, unless the context clearly
indicates otherwise.

     (a) “Affiliate” means any entity that, together with the Company, is treated as a single
employer under Code section 414(b) or (c). For purposes of determining whether a Termination of
Employment has occurred, the term Affiliate will be determined by applying Code section
1563(a)((1), (2) and (3) for purposes of determining a controlled group of corporations under Code
section 414(b) and in applying Treas. Reg. Section 1.414(c)-2 for purposes of determining trades or
businesses that are under common control for purposes of Code section 414(c), the phrase “at least
50 percent” will be used instead of “at least 80 percent” each place it appears.

     (b) “Accounting Date” means the first business day following the annual meeting of
stockholders of the Company, or, if no annual meeting is held during a calendar year, it means
December 31.

     (c) “Basic Fee” means the annual retainer payable to an Eligible Director at the annual rate
in effect on the Accounting Date for such Eligible Director’s services on the Board (exclusive of
any Chairperson Fee, Non-Executive Chairman Fee or Meeting Fees.)

     (d) “Board” means the Board of Directors of the Company.

     (e) “Chairperson Fee” means the annual retainer payable to an Eligible Director at the annual
rate in effect on the Accounting Date for such Eligible Director’s services as the chairperson of
any committee of the Board.

 

 

     (f) “Change in Control” has the meaning given it in Section 8(b) to the extent it is
consistent with and satisfies the definition of “Change of Control” under Code section 409A.

     (g) “Change in Control Price” of the Common Stock shall equal the higher of (i) if applicable,
the price paid for the Common Stock in the transaction constituting a Change in Control and (ii)
the Fair Market Value of the Common Stock as of the last trading day preceding the date of the
Change in Control.

     (h) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations
or binding rules promulgated thereunder.

     (i) “Committee” means the Compensation Committee of the Board.

     (j) “Common Stock” means the common stock, par value $.01 per share, of the Company.

     (k) “Company” means Imation Corp.

     (l) “Dividend Equivalent Credit” has the meaning given it in Section 7(b).

     (m) “Election Form” means the Election Form attached as Exhibit B hereto or such other form as
may be deemed acceptable by the Secretary of the Company from time to time.

     (n) “Eligible Director” means each member of the Board who is not at the time of reference an
employee of the Company or any of its subsidiaries.

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

     (p) “Fair Market Value” as of any date means, the fair market value as defined under the Stock
Plan.

     (q) “Meeting Fees” means the amounts payable to an Eligible Director in arrears on any
Quarterly Payment Date for attendance at meetings or participation in teleconferences of the Board
or any committee of the Board (exclusive of any Basic Fee, Chairperson Fee or Non-Executive
Chairman Fee).

     (r) “Non-Executive Chairman Fee” means the annual retainer payable to the Eligible Director
who is selected to be the Non-Executive Chairman at the annual rate in effect on the Accounting
Date for such Eligible Director’s services as the Non-Executive Chairman.

     (s) “Program” means the Company’s Directors Compensation Program, as amended from time to
time.

 

 

     (t) “Proration Fraction” means a fraction, the numerator of which is the number of days from
the date an Eligible Director first becomes an Eligible Director to the date of the next succeeding
annual meeting of stockholders and the denominator of which is 365.

     (u) “Quarterly Payment Date” means the date established by the Company from time to time for
payment, in arrears, of all Meeting Fees earned by Eligible Directors during the preceding calendar
quarter, provided such date shall not be later than the fifteenth day of the third month following
the end of such calendar quarter.

     (v) “Restricted Stock Unit” means a right to receive payment of one share of Common Stock in
accordance with the conditions set forth in Section 7 hereof or conditions established by the
Committee.

     (w) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as such Rule may be amended from
time to time.

     (x) “Separation from Service” means the individual has ceased to be a member of the Board and
has ceased to provide services as an independent contractor (including as a member of any board of
directors) of the Company and all Affiliates, or such other change in status that constitutes a
“separation from service” under Code section 409A.

     (x) “Stock Plan” means the then current stock incentive plan of the Company used to grant
stock based awards to Eligible Directors.

SECTION 3. ADMINISTRATION

     (a) The Program shall be administered by the Committee.

     (b) In administering the Program, it will be necessary to follow various laws and regulations.
It may be necessary from time to time to change or waive requirements of the Program to conform
with the law, to meet special circumstances not anticipated or covered in the Program, or to carry
on successful operation of the Program, and in connection therewith, the Committee shall have the
full power and authority to:

     (i) Prescribe, amend, and rescind rules and regulations relating to the Program,
establish procedures deemed appropriate for its administration, interpret the provisions of
the Program, remedy ambiguities, and make any and all other determinations not herein
specifically authorized which may be necessary or advisable for its effective
administration;

     (ii) Make any amendments to or modifications of the Program which may be required or
necessary to make the Program set forth herein comply with the provisions of any laws,
federal or state, or any regulations issued thereunder, and to cause the Company at its
expense to take any action related to the Program which may be required under such laws or
regulations;

 

 

     (iii) Contest on behalf of the Eligible Directors or the Company, at the sole
discretion of the Committee and at the expense of the Company, any ruling or decision on any
issue related to the Program, and conduct any such contest and any resulting litigation to a
final determination, ruling, or decision; and

     (iv) Grant stock-based awards under the Program, as provided in Section 5 hereof.

     (c) Unless otherwise expressly provided in the Program, all designations, determinations,
interpretations and other decisions under or with respect to the Program or any award shall be
within the sole discretion of the Committee, may be made at any time and shall be final, conclusive
and binding upon any Eligible Director or beneficiary, and any employee of the Company.

SECTION 4. FEES/EXPENSES

     (a) Each Eligible Director who is first elected to the Board at, or who continues to serve on
the Board immediately following an annual meeting of stockholders, is entitled to receive a Basic
Fee and a Chairperson Fee for serving as chairperson of a committee of the Board (as applicable).

     (b) Any Eligible Director who is designated as the Non-Executive Chairman is entitled to
receive a Non-Executive Chairman Fee for services as the Non-Executive Chairman.

     (c) Each Eligible Director who joins the Board or becomes a chairperson of a committee of the
Board or Non-Executive Chairman after the annual meeting of stockholders is entitled to receive a
Basic Fee, Chairperson Fee or Non-Executive Chairman Fee (as applicable) multiplied by the
Proration Fraction, as of the date such Eligible Director first becomes an Eligible Director,
chairperson of a committee of the Board or Non-Executive Chairman.

     (d) Each Eligible Director is entitled to receive a Meeting Fee for attendance at a meeting of
the Board or a Committee of the Board or participation in a teleconference in lieu of such meeting.
The Meeting Fees are payable in arrears on the Quarterly Payment Date. Any member of the Board who
interviews a Board candidate shall be entitled to receive compensation in an amount equal to the
Meeting Fee for an in person Board meeting for each such interview.

     (e) The current rate of the Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and Meeting
Fees are set forth on the attached Exhibit A, and may be amended from time to time by the Board or
any committee given responsibility for determining Board of Director compensation.

     (f) Each Eligible Director is entitled to reimbursement for reasonable travel costs of
attending Board and committee meetings and interviews of Board candidates. Such reimbursement shall
be payable in cash after receipt of documentation by the Company from such Eligible Director,
provided reimbursement is made no later than the end of the calendar year following the calendar
year in which the expense was incurred.

 

 

SECTION 5. ANNUAL GRANT OF STOCK BASED AWARD

     (a) Each Eligible Director who is first elected to the Board at, continues to serve on the
Board or is serving as the Non-Executive Chairman of the Board immediately following an annual
meeting of stockholders shall be granted a stock based award (i.e., options, restricted stock,
etc.) as of the date of such meeting in type, proportion and amount to be determined by the
Committee and under, and in accordance with, the terms of the Stock Plan.

     (b) Each Eligible Director who joins the Board after an annual meeting of stockholders, shall
be granted a stock based award pursuant to this Section 5 as of the date such Eligible Director
first becomes an Eligible Director based on the number of whole shares of Common Stock equal to the
number granted other Eligible Directors at the time of the immediately preceding annual meeting of
stockholders, multiplied by the Proration Fraction. An Eligible Director who is appointed the
Non-Executive Chairman of the Board after an annual meeting of stockholders, shall be granted a
stock based award pursuant to this Section 5 as of the date such Eligible Director first becomes
the Non-Executive Chairman of the Board based on the number of whole shares of Common Stock that
were granted at the time of the immediately preceding annual meeting of stockholders, multiplied by
the Proration Fraction.

     (c) Terms and conditions of stock based awards (such as grant price, vesting schedule, etc.)
shall be as determined by the Committee and under, and in accordance with, the terms of the Stock
Plan.

     (d) The amount and composition of the current annual stock based award are set forth on the
attached Exhibit A, which may be amended from time to time by the Board or any committee given
responsibility for determining Board of Director compensation.

SECTION 6. MATCHING GIFT PROGRAM

     Each Eligible Director is entitled to a matching gift from the Company of up to $15,000 per
calendar year to qualifying charitable institutions, prorated for any calendar year that Eligible
Director joins the Board. Each Eligible Director must submit evidence of such gift to the Company
and the Company will send the matching contribution directly to the qualifying charitable
institution on behalf of the Eligible Director.

SECTION 7. ELECTIONS TO RECEIVE COMMON STOCK OR RESTRICTED STOCK UNITS

     (a) Elections.

     (i) Common Stock. Each Eligible Director who is not covered by clause (iii)
below, may elect to receive, in lieu of a cash payment for his or her Basic Fee, Chairperson
Fee, Non-Executive Chairman Fee and/or Meeting Fees (or a portion thereof, as elected by the
Eligible Director), a number of shares of Common Stock (excluding fractional shares, which
shall be paid in cash (or carried over to the next payment if an Eligible Director elects to
be paid all in Common Stock)), which is

 

 

calculated by dividing his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee
and/or Meeting Fees (or a portion thereof), by the Fair Market Value of one share of Common
Stock on the Accounting Date or Quarterly Payment Date, as applicable. To be effective, any
such election shall be made by submitting a completed and executed Election Form to the
Secretary of the Company prior to the relevant Accounting Date or Quarterly Payment Date, as
applicable.

     (ii) Restricted Stock Units. Each Eligible Director who is not covered by
clause (iii) below, may elect to receive, in lieu of cash payment for his or her Basic Fee,
Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees, Restricted Stock Units
(including fractional Restricted Stock Units) calculated by dividing his or her Basic Fee,
Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees (or a portion thereof, as
elected by the Eligible Director) for services to be performed in the following the calendar
year by the Fair Market Value of one share of Common Stock on the Accounting Date or
Quarterly Payment Date, as applicable. To be effective, any such election relating to the
Basic Fee, Chairperson Fee, Non-Executive Chairman Fee or Meeting Fees shall be made by
submitting a completed and executed Election Form to the Secretary of the Company prior to
the calendar year in which the Eligible Director wishes the election to be in effect and
such election shall be irrevocable for such calendar year.

     (iii) New Directors. Each Eligible Director who during the preceding
twenty-four (24) months has not participated in any deferred compensation arrangement of the
Company or any Affiliate that would be treated as a single plan with this Plan under Treas.
Reg. Sec. 1.409A-1(c)(2)(i) and who joins the Board between annual meetings of stockholders
may elect prior to first becoming an Eligible Director to receive, in lieu of cash payment
for his or her Basic Fee, Chairperson Fee and/or Non-Executive Chairman Fee, a number of
            shares of Common Stock (excluding fractional shares, which shall be paid in cash (or carried
over to the next payment if an Eligible Director elects to be paid all in Common Stock))
and/or Restricted Stock Units (including fractional Restricted Stock Units) up to the number
which is calculated by (A) multiplying the sum of his or her Basic Fee, Chairperson Fee,
Non-Executive Chairman Fee (or a portion thereof, as elected by the Eligible Director)
payable with respect to the time prior to the next annual meeting of stockholders which the
Eligible Director is first elected to the Board by the Proration Fraction and (B) dividing
the product resulting from clause (A) by the Fair Market Value of one share of Common Stock
on the date that the Eligible Director becomes an Eligible Director. Each Eligible Director
may also elect to receive, in lieu of cash payment for his or her Meeting Fees (or a portion
thereof, as elected by the Eligible Director), Common Stock (excluding fractional shares,
which shall be paid in cash (or carried over to the next payment if an Eligible Director
elects to be paid all in Common Stock)) Restricted Stock Units (including fractional
Restricted Stock Units) calculated by dividing his or her Meeting Fees (or portion thereof)
by the Fair Market Value of one share of Common Stock on the Quarterly Payment Date. To be
effective, any such election shall be made by submitting a completed and executed Election
Form to the Secretary of the Company prior to the date that the Eligible Director becomes a
Director, and such Election Form shall be irrevocable on the date he or she first becomes an

 

 

Eligible Director for that calendar year with respect to any election (or lack of election)
to receive Restricted Stock Units.

     (b) Restricted Stock Units.

     (i) Account. Upon the grant of Restricted Stock Units to an Eligible Director,
such units shall be credited to an account established for such Eligible Director. A
Restricted Stock Unit shall be treated as granted on the corresponding Accounting Date or
last day of the calendar quarter relating to the fees for which the Restricted Stock Units
are determined. Each Eligible Director shall receive an annual statement showing the number
of Restricted Stock Units that have been credited to the Eligible Director’s account under
the Program.

     (ii) Dividend Equivalent Credits. An Eligible Director’s account shall be
credited with Dividend Equivalent Credits equivalent to the amount of dividends paid by the
Company to holders of outstanding shares of Common Stock based on the number of Restricted
Stock Units credited to the Eligible Director’s account on the dividend record date for
shares of Common Stock. Such Dividend Equivalent Credit shall be converted into an
equivalent number of Restricted Stock Units (including fractional Restricted Stock Units)
based on the fair market value of one share of Common Stock on the related dividend payment
date and such Restricted Stock Units shall be subject to the same distribution timing as the
underlying Restricted Stock Units to which the Dividend Equivalent Credits related. If a
dividend is paid in cash, each Eligible Director shall be credited, as of each applicable
dividend payment date, in accordance with the following formula:

(A X B) / C

     in which “A” equals the number of Restricted Stock Units held by the Eligible Director
on the dividend record date, “B” equals the cash dividend per share and “C” equals the Fair
Market Value per share of Common Stock on the dividend payment date. If a dividend is paid
in property other than cash, Dividend Equivalent Credits shall be credited, as of the
applicable dividend payment date, in accordance with the formula set forth above, except
that “B” shall equal the fair market value per share of the property that the Eligible
Director would have received in respect of the number of shares of Common Stock equal to the
number of Restricted Stock Units held by the Eligible Director as of the dividend record
date, had such shares been owned by the Eligible Director as of the record date for such
dividend.

     (iii) Time of Payment. All payments in respect of an Eligible Director’s
Restricted Stock Units shall be made as soon as practicable but not more than ninety (90)
days following the earlier of (A) the Eligible Director’s death (B) the occurrence of a
Change in Control, and (C) the specific date (including upon the Eligible Director’s
Separation from Service) the Eligible Director has elected to receive payment pursuant to
the applicable Election Form pursuant to which such Eligible Director elected to receive
such Restricted Stock Units in lieu of cash. If distribution is to be made upon a
Separation from Service and the individual is a “specified employee,” as defined under

 

 

Code section 409A, on the date of such Separation from Service, then no distribution will be
made before the date that is six (6) months after the date of the individual’s Separation
from Services, or if earlier, upon his or her death.

     (iv) Form of Payment. Payment in respect of Restricted Stock Units shall be
made in one lump sum payment in the form of shares of Common Stock. For purposes of the
preceding sentence, any payment made upon the occurrence of a Change in Control in full or
partial payment of Restricted Stock Units shall be made in cash in an amount equal the
Change in Control Price multiplied by the number of Restricted Stock Units (including
fractional units).

     (c) Stock Plan.

     All shares of Common Stock and all Restricted Stock Units awarded pursuant to this Section 7
shall be awarded under, and in accordance with, the terms of the Stock Plan. Restricted Stock Units
awarded hereunder shall be considered Other Stock-Based Awards under the Plan.

SECTION 8. CHANGE IN CONTROL

     (a) For purposes of this Section 8, “Act” shall mean the Securities Exchange Act of 1934.

     (b) For purposes of the Program, a “Change in Control” of the Company shall be deemed to have
occurred if any one of the following events shall occur:

     (i) the consummation of a transaction or series of related transactions during a
12-month period in which a person, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Act) that owns (after application of the attribution rules of Section 318
of the Code) less than 35% of the combined voting power of the Company’s outstanding voting
stock prior to such transaction or the first of such series of related transactions), other
than the Company or a subsidiary of the Company, or any employee benefit plan of the Company
or a subsidiary of the Company, acquires ownership (after application of the attribution
rules of Section 318 of the Code) of 35% or more of the combined voting power of the
Company’s then outstanding voting stock (other than in connection with a Business
Combination in which clauses (1) and (2) of Section 8(b) (iii) apply); or

     (ii) a majority of the members of the Company’s Board of Directors is replaced during
any 12-month period by directors whose appointment or election is not endorsed by a majority
of the members of the Company’s Board of Directors prior to the date of the election or
appointment; or

     (iii) the consummation of a reorganization, merger, statutory share exchange,
consolidation or similar transaction involving the Company, a sale or other disposition in
a transaction or series of related transactions within a 12-month period of all or
substantially all of the Company’s assets or the issuance by the Company of its stock in

 

 

connection with the acquisition of assets or stock of another entity (each, a “Business
Combination”) in each case unless, following such Business Combination, (1) all or
substantially all of the individuals and entities that were the owners of the Company’s
outstanding voting stock immediately prior to such Business Combination own (after
application of the attribution rules of Section 318 of the Code) immediately after the
transaction or transactions more than 50% of the combined voting power of the then
outstanding voting stock (or comparable equity interests) of the entity resulting from such
Business Combination (including an entity that, as a result of such transaction, owns the
Company or all or substantially all of the Company’s assets either directly or through one
of more subsidiaries), and (2) no person, entity or group (other than a direct or indirect
parent entity of the Company that, after giving effect to the Business Combination,
beneficially owns 100% of the outstanding voting securities (or comparable equity interests)
of the entity resulting from the Business Combination) has acquired, during a 12-month
period, ownership (after application of the attribution rules of Section 318 of the Code) of
35% or more of the combined voting power of the then outstanding voting stock (or comparable
equity interests) of the entity resulting from such Business Combination.

     Notwithstanding anything herein stated, no Change in Control shall be deemed to occur unless
such event constitutes a change in ownership or effective control, or a change in the ownership of
a substantial portion of the assets, of a business under Code section 409A.

SECTION 9. AMENDMENT; TERMINATION

     The Board may at any time and from time to time alter, amend, suspend, or terminate the
Program in whole or in part; provided, however, that no amendment which requires stockholder
approval in order for the exemptions available under Rule 16b-3 to be applicable to the Program and
the Eligible Directors shall be effective unless the same shall be approved by the stockholders of
the Company entitled to vote thereon.

SECTION 10. RIGHTS OF ELIGIBLE DIRECTORS

     Nothing contained in the Program or with respect to any grant shall interfere with or limit in
any way the right of the stockholders of the Company to remove any Eligible Director from the Board
pursuant to the bylaws of the Company, nor confer upon any Eligible Director any right to continue
in the service of the Company as a director.

SECTION 11. GENERAL RESTRICTIONS

     (a) Investment Representations. The Company may require any Eligible Director to whom
Common Stock is issued, as a condition of receiving such Common Stock, to give written assurances
in substance and form satisfactory to the Company and its counsel to the effect that such person is
acquiring the Common Stock for his or her own account for investment and not with any present
intention of selling or otherwise distributing the same, and to such other effects as the Company
deems necessary or appropriate in order to comply with federal and applicable state securities
laws.

 

 

     (b) Compliance with Securities Laws. Each issuance shall be subject to the requirement
that, if at any time counsel to the Company shall determine that the listing, registration or
qualification of the shares upon any securities exchange or under any state or federal law, or the
consent or approval of any governmental or regulatory body, is necessary as a condition of, or in
connection with, the issuance of shares thereunder, such issuance may not be accepted or exercised
in whole or in part unless such listing, registration, qualification, consent or approval shall
have been effected or obtained on conditions acceptable to the Committee. Nothing herein shall be
deemed to require the Company to apply for or to obtain such listing, registration or
qualification.

     (c) Nontransferability. Except as otherwise provided by the Committee, Restricted
Stock Units under this Program shall not be transferable by an Eligible Director other than by the
laws of descent and distribution.

     (d) No Acceleration of Distribution of Restricted Stock Units. The distribution of
Restricted Stock Units may not be accelerated, including upon termination of the Program, if such
acceleration would cause the distribution to become subject to tax under Code Section 409A.

SECTION 12. WITHHOLDING

     The Company may defer making payments or delivering shares of Common Stock under the Program
for up to 30 days to ensure that satisfactory arrangements have been made for the payment of any
federal, state or local income or employment taxes that the Company reasonably determines in its
sole discretion are required to be withheld with respect to such payment or delivery.

SECTION 13. GOVERNING LAW

     The Program and all rights hereunder shall be construed in accordance with and governed by the
internal law, and not the law of conflicts, of the State of Delaware.

SECTION 14. UNFUNDED PROGRAM

     The Program shall be unfunded and shall not create (or be construed to create) a trust or a
separate fund or funds. The Program shall not establish any fiduciary relationship between the
Company and any Eligible Director or other person. To the extent any person holds any rights by
virtue of a grant under the Program, such right shall be no greater than the right of an unsecured
general creditor of the Company.

SECTION 15. HEADINGS

     The headings of sections and subsections herein are included solely for convenience of
reference and shall not affect the meaning of any of the provisions of the Program.

 

 

EXHIBIT A

FEES

(as of May 5, 2010)

	 	 	 

	Basic Fee

	 	 $50,000
	 
	 	 
	Non-Executive Chairman

	 	1.2 times the Basic Fee provided to each
Eligible Director, in addition to the Basic
Fee for service as a member of the Board of
Directors.
	 
	 	 
	Committee Chair

	 	Audit & Finance: $10,000

Compensation: $10,000

Nominating & Governance: $7,500
	 
	 	 
	Board Meetings/Teleconferences

	 	 $1,500/$1,000
	 
	 	 
	Audit & Finance

Meetings/Teleconferences

	 	 $1,500/$1,000
	 
	 	 
	Compensation Committee

Meetings/Teleconferences

	 	 $1,500/$1,000
	 
	 	 
	Nomination & Governance

Meetings/Teleconferences

	 	 $1,500/$1,000
	 
	 	 
	Annual Stock Based Grants

	 	All Eligible Directors: Dollar value
$175,000 in options and restricted stock,
with 50% as options and 50% as restricted
stock (calculated using modified Black-Scholes
model)

Non-Executive Chairman: 1.2 times the
Annual Stock Based Grant provided to each
Eligible Director, with the same division
as between options and restricted stock, in
addition to the Annual Stock Based Grant
for service as a member of the Board of
Directors

 

 

EXHIBIT B

IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

ELECTION FORM

     THIS ELECTION is made by ___(the “Eligible Director”), effective as of the ___day of
___, 200___.

     WHEREAS, Imation Corp., a Delaware corporation (the “Company”) has a director compensation
program (the “Program”);

     WHEREAS, the Eligible Director has the option under the Program to receive Common Stock and/or
Restricted Stock Units in lieu of payment of certain cash compensation for service as a director of
the Company;

     NOW, THEREFORE, in accordance with the terms and conditions of the Program, the Eligible
Director hereby agrees as follows:

The Program

     This Election is entered into pursuant to the Program, which is incorporated herein by
reference and made a part hereof. The Eligible Director hereby acknowledges receipt of a copy of
the Program. All capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to them in the Program.

Basic Fee, Chairperson Fee and Non-Executive Chairman Fee (“Annual Grant”)

     The Basic Fee, Chairperson Fee and Lee Director Fee is payable (and prorated) on the date
first elected to the Board of Directors (if other than at an annual meeting of stockholders).
Thereafter, the Basic Fee, Chairperson Fee and Non-Executive Chairman Fee is payable on each
Accounting Date following the Annual Meeting of Stockholders.

** Special Tax Rules Relating to Election to Receive Restricted Stock Units

     Due to Internal Revenue Code Section 409A relating to the taxation of deferred compensation,
an election to receive Restricted Stock Units under the Program can only be made for services
performed and payments to be received following the calendar year in which the election is made
(e.g., an election made in 2007 is not effective until January 1, 2008). Also, the election must
remain in effect for the ENTIRE calendar year. Any change in or termination of the election can
only be made the year before it is to go in effect (e.g., a change for 2008 must be made before the
end of 2007.)

 

 

     Subject to the terms and conditions of the Program, the Eligible Director hereby elects to
receive the Basic Fee, the Chairperson and Non-Executive Chairman Fee, if applicable, in the
following manner:

BASIC FEE

	 	 	 	 	 	 	 

	 

	 	 	 	%	 	Election to receive Common Stock in lieu of Cash
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Restricted Stock Units in lieu of Cash**
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Cash
	 

	 	 	 	 	 	 
	Total:

	 	 	100	%	 	 
	 

	 	 	 	 	 	 

CHAIRPERSON FEE: (if applicable)

	 	 	 	 	 	 	 

	 

	 	 	 	%	 	Election to receive Common Stock in lieu of Cash
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Restricted Stock Units in lieu of Cash**
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Cash
	 

	 	 	 	 	 	 
	Total:

	 	 	100	%	 	 
	 

	 	 	 	 	 	 

MEETING FEES:

     Subject to the terms and conditions of the Program, the Eligible Director elects to receive
Meeting Fees compensation in the following manner, with such fees payable on each Quarterly Payment
Date:

	 	 	 	 	 	 	 

	 

	 	 	 	%	 	Election to receive Common Stock in lieu of Cash
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Restricted Stock Units in lieu of Cash**
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Cash
	 

	 	 	 	 	 	 
	Total:

	 	 	100	%	 	 
	 

	 	 	 	 	 	 

NON-EXECUTIVE CHAIRMAN FEE: (if applicable)

	 	 	 	 	 	 	 

	 

	 	 	 	%	 	Election to receive Common Stock in lieu of Cash
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Restricted Stock Units in lieu of Cash**
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	%	 	Election to receive Cash
	 

	 	 	 	 	 	 
	Total:

	 	 	100 	%	 	 
	 

	 	 	 	 	 	 

 

 

DISTRIBUTION ELECTION FOR RESTRICTED STOCK UNITS: (Must be completed if Eligible Director
has made an Election to Receive Restricted Stock Units.)

     The Eligible Director hereby elects to receive payment of his or her Restricted Stock Units on
the earlier to occur of a Change in Control, his or her death or the following date:

	 	___	 	___-year anniversary of the grant date (please specify)
	 
	 	___	 	The date the Eligible Director incurs a “separation from service” with
Company (within the meaning of Section 409A of the Internal Revenue
Code).
	 
	 	___	 	Other (please specify date only):            
                        
     

Term of Election 

     This Election will remain in effect until terminated or changed by the Eligible Director
pursuant to written notice to the Secretary of the Company or filing of a new Election Form. Note:
A change or termination of an Election to receive Restricted Stock Units will not become effective
until January 1 of the calendar year following the calendar year the change or termination is filed
with the Secretary of the Company.

     IN WITNESS WHEREOF, the Eligible Director has entered into this Election on the day and year
first above written, and the Company has accepted this Election as of such day and year.

	 	 	 	 	 	 	 

	 	 	ELIGIBLE DIRECTOR	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 	 	Accepted and Agreed to by IMATION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:Exhibit 10.1

Exhibit 10.1

EXECUTION VERSION

$100,000,000 REVOLVING CREDIT FACILITY

CREDIT AGREEMENT

by and among

DSW INC.

DSW SHOE WAREHOUSE, INC.

as Borrowers

THE GUARANTORS PARTY HERETO

THE LENDERS PARTY HERETO

PNC BANK, NATIONAL ASSOCIATION

as Administrative Agent

PNC CAPITAL MARKETS LLC

as Sole Book Runner and Sole Lead Arranger

BANK OF AMERICA, N.A.

as Syndication Agent and Documentation Agent

and

FIFTH THIRD BANK and

WELLS FARGO RETAIL FINANCE, LLC

as Managing Agents

Dated as of June 30, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	1. CERTAIN DEFINITIONS
	 	 	1	 
	1.1 Certain Definitions
	 	 	1	 
	1.2 Construction
	 	 	32	 
	1.3 Accounting Principles
	 	 	32	 
	 
	 	 	 	 
	2. REVOLVING CREDIT AND SWING LOAN FACILITIES
	 	 	33	 
	2.1 Revolving Credit Commitments
	 	 	33	 
	2.1.1 Revolving Credit Loans
	 	 	33	 
	2.1.2 Swing Loan Commitment
	 	 	33	 
	2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans; Permitted Overadvances
	 	 	34	 
	2.2.1 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans
	 	 	34	 
	2.2.2 Permitted Overadvances
	 	 	34	 
	2.3 Commitment Fees
	 	 	34	 
	2.4 Simplified Borrowing Base and Borrowing Base; Permitted Short Term Loans
	 	 	35	 
	2.4.1 Simplified Borrowing Base and Borrowing Base
	 	 	35	 
	2.4.2 Permitted Short Term Loans
	 	 	35	 
	2.5 Revolving Credit Loan Requests; Swing Loan Requests
	 	 	35	 
	2.5.1 Revolving Credit Loan Requests
	 	 	36	 
	2.5.2 Swing Loan Requests
	 	 	36	 
	2.6 Making Revolving Credit Loans and Swing Loans; Presumptions by the Administrative Agent; Repayment of Revolving Credit Loans; Borrowings to Repay Swing Loans
	 	 	36	 
	2.6.1 Making Revolving Credit Loans
	 	 	36	 
	2.6.2 Presumptions by the Administrative Agent
	 	 	37	 
	2.6.3 Making Swing Loans
	 	 	37	 
	2.6.4 Repayment of Revolving Credit Loans
	 	 	37	 
	2.6.5 Borrowings to Repay Swing Loans
	 	 	37	 
	2.6.6 Trigger Event Election Period
	 	 	38	 
	2.7 Notes
	 	 	38	 
	2.8 Use of Proceeds
	 	 	38	 
	2.9 Letter of Credit Subfacility
	 	 	38	 
	2.9.1 Issuance of Letters of Credit
	 	 	38	 
	2.9.2 Letter of Credit Fees
	 	 	40	 
	2.9.3 Disbursements, Reimbursement
	 	 	40	 
	2.9.4 Repayment of Participation Advances
	 	 	42	 
	2.9.5 Documentation
	 	 	42	 
	2.9.6 Determinations to Honor Drawing Requests
	 	 	43	 
	2.9.7 Nature of Participation and Reimbursement Obligations
	 	 	43	 
	2.9.8 Indemnity
	 	 	44	 
	2.9.9 Liability for Acts and Omissions
	 	 	45	 

 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	2.9.10 Issuing Lender Reporting Requirements
	 	 	46	 
	2.9.11 Cash Collateral
	 	 	46	 
	2.10 Increase in Revolving Credit Commitments
	 	 	46	 
	2.10.1 Increasing Lenders and New Lenders
	 	 	46	 
	2.10.2 Repayment of Outstanding Loans; Borrowing of New Loans
	 	 	48	 
	2.10.3 Outstanding Letters of Credit. Repayment of Outstanding Loans; Borrowing of New Loans
	 	 	48	 
	2.11 Reduction of Revolving Credit Commitment
	 	 	48	 
	2.11.1 Revolving Credit Commitments
	 	 	48	 
	2.11.2 Canadian Commitments
	 	 	48	 
	2.11.3 Deemed Termination of Canadian Commitments
	 	 	48	 
	 
	 	 	 	 
	3. INTEREST RATES
	 	 	49	 
	3.1 Interest Rate Options
	 	 	49	 
	3.1.1 Revolving Credit Interest Rate Options; Swing Line Interest Rate
	 	 	49	 
	3.1.2 Rate Quotations
	 	 	50	 
	3.2 Interest Periods
	 	 	50	 
	3.2.1 Amount of Borrowing Tranche
	 	 	50	 
	3.2.2 Renewals
	 	 	50	 
	3.3 Interest and Fees After Default
	 	 	50	 
	3.3.1 Letter of Credit Fees, Interest Rate
	 	 	50	 
	3.3.2 Other Obligations
	 	 	50	 
	3.3.3 Acknowledgment
	 	 	50	 
	3.4 LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available
	 	 	50	 
	3.4.1 Unascertainable
	 	 	51	 
	3.4.2 Illegality; Increased Costs; Deposits Not Available
	 	 	51	 
	3.4.3 Administrative Agent’s and Lenders’ Rights
	 	 	51	 
	3.5 Selection of Interest Rate Options
	 	 	52	 
	3.6 Interest Act (Canada)
	 	 	52	 
	 
	 	 	 	 
	4. PAYMENTS
	 	 	52	 
	4.1 Payments
	 	 	52	 
	4.2 Pro Rata Treatment of Lenders; Repayment of Advances
	 	 	53	 
	4.2.1 Pro Rata Treatment of Lenders
	 	 	53	 
	4.2.2 Repayment of Advances
	 	 	53	 
	4.3 Sharing of Payments by Lenders
	 	 	53	 
	4.4 Presumptions by Administrative Agent
	 	 	54	 
	4.5 Interest Payment Dates
	 	 	54	 
	4.6 Voluntary Prepayments
	 	 	55	 
	4.6.1 Right to Prepay
	 	 	55	 
	4.6.2 Replacement of a Lender
	 	 	55	 
	4.7 Mandatory Prepayments
	 	 	56	 
	4.7.1 Disposition of Assets; Indebtedness
	 	 	56	 
	4.7.2 Borrowing Base Exceeded; Canadian Borrowing Base Exceeded
	 	 	57	 

 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	4.7.3 Receipt and Application of Payment
	 	 	57	 
	4.7.4 Application Among Interest Rate Options
	 	 	57	 
	4.8 Increased Costs
	 	 	57	 
	4.8.1 Increased Costs Generally
	 	 	57	 
	4.8.2 Capital Requirements
	 	 	58	 
	4.8.3 Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans
	 	 	58	 
	4.8.4 Delay in Requests
	 	 	58	 
	4.9 Taxes
	 	 	59	 
	4.9.1 Payments Free of Taxes
	 	 	59	 
	4.9.2 Payment of Other Taxes by the Borrowers
	 	 	59	 
	4.9.3 Indemnification by the Borrowers; Treatment of Certain Refunds
	 	 	59	 
	4.9.4 Evidence of Payments
	 	 	60	 
	4.9.5 Status of Lenders
	 	 	60	 
	4.10 Indemnity
	 	 	61	 
	4.11 Settlement Date Procedures
	 	 	62	 
	 
	 	 	 	 
	5. REPRESENTATIONS AND WARRANTIES
	 	 	62	 
	5.1 Representations and Warranties
	 	 	62	 
	5.1.1 Organization and Qualification; Power and Authority; Compliance With Laws; Title to Properties; Event of Default
	 	 	62	 
	5.1.2 Subsidiaries and Owners; Investment Companies
	 	 	63	 
	5.1.3 Validity and Binding Effect
	 	 	63	 
	5.1.4 No Conflict; Material Agreements; Consents
	 	 	63	 
	5.1.5 Litigation
	 	 	64	 
	5.1.6 Financial Statements
	 	 	64	 
	5.1.7 Margin Stock
	 	 	64	 
	5.1.8 Full Disclosure
	 	 	65	 
	5.1.9 Taxes
	 	 	65	 
	5.1.10 Patents, Trademarks, Copyrights, Licenses, Etc
	 	 	65	 
	5.1.11 Liens in the Collateral
	 	 	65	 
	5.1.12 Insurance
	 	 	65	 
	5.1.13 ERISA Compliance
	 	 	66	 
	5.1.14 Environmental Matters
	 	 	66	 
	5.1.15 Solvency
	 	 	66	 
	5.1.16 Labor Matters
	 	 	66	 
	5.1.17 DDAs; Credit Card Arrangements
	 	 	67	 
	5.2 Updates to Schedules
	 	 	67	 
	 
	 	 	 	 
	6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT
	 	 	67	 
	6.1 First Loans and Letters of Credit
	 	 	68	 
	6.1.1 Deliveries
	 	 	68	 
	6.1.2 Other Conditions Precedent
	 	 	69	 
	6.1.3 Payment of Fees and Expenses
	 	 	70	 
	6.2 Each Loan or Letter of Credit
	 	 	70	 

 

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	6.3 Initial Loans or Letters of Credit — Canadian Borrower
	 	 	70	 
	 
	 	 	 	 
	7. COVENANTS
	 	 	70	 
	7.1 Affirmative Covenants
	 	 	70	 
	7.1.1 Preservation of Existence, Etc
	 	 	70	 
	7.1.2 Payment of Liabilities, Including Taxes, Etc
	 	 	70	 
	7.1.3 Maintenance of Insurance
	 	 	71	 
	7.1.4 Maintenance of Properties and Leases
	 	 	71	 
	7.1.5 Visitation Rights
	 	 	71	 
	7.1.6 Keeping of Records and Books of Account
	 	 	72	 
	7.1.7 Compliance with Laws; Use of Proceeds
	 	 	72	 
	7.1.8 Further Assurances
	 	 	72	 
	7.1.9 Anti-Terrorism Laws
	 	 	72	 
	7.1.10 Cash Management
	 	 	73	 
	7.2 Negative Covenants
	 	 	74	 
	7.2.1 Indebtedness
	 	 	74	 
	7.2.2 Liens; Lien Covenants
	 	 	76	 
	7.2.3 Guaranties
	 	 	76	 
	7.2.4 Loans and Investments
	 	 	76	 
	7.2.5 Dividends and Related Distributions
	 	 	77	 
	7.2.6 Liquidations, Mergers, Consolidations, Amalgamations, Acquisitions
	 	 	77	 
	7.2.7 Dispositions of Assets or Subsidiaries
	 	 	77	 
	7.2.8 Affiliate Transactions
	 	 	78	 
	7.2.9 Subsidiaries, Partnerships and Joint Ventures
	 	 	78	 
	7.2.10 Continuation of or Change in Business
	 	 	79	 
	7.2.11 Fiscal Year
	 	 	79	 
	7.2.12 Issuance of Stock
	 	 	79	 
	7.2.13 Changes in Organizational Documents
	 	 	79	 
	7.2.14 Capital Expenditures
	 	 	79	 
	7.2.15 Minimum Fixed Charge Coverage Ratio
	 	 	79	 
	7.2.16 Agreements Restricting Dividends
	 	 	80	 
	7.2.17 DDAs; Credit Card Processors
	 	 	80	 
	7.2.18 Negative Pledges
	 	 	80	 
	7.3 Reporting Requirements
	 	 	80	 
	7.3.1 Quarterly Financial Statements; Monthly Financial Statements
	 	 	80	 
	7.3.2 Annual Financial Statements
	 	 	80	 
	7.3.3 Certificate of the Borrowers
	 	 	81	 
	7.3.4 Simplified Borrowing Base Certificates; Borrowing Base Certificates
	 	 	81	 
	7.3.5 Minimum Cash Requirement; DDAs
	 	 	81	 
	7.3.6 Notices
	 	 	81	 
	 
	 	 	 	 
	8. DEFAULT
	 	 	83	 
	8.1 Events of Default
	 	 	83	 
	8.1.1 Payments Under Loan Documents
	 	 	83	 

 

iv

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	8.1.2 Breach of Warranty
	 	 	83	 
	8.1.3 Breach of Certain Covenants
	 	 	83	 
	8.1.4 Breach of Other Covenants
	 	 	84	 
	8.1.5 Defaults in Indebtedness; Leases
	 	 	84	 
	8.1.6 Final Judgments or Orders
	 	 	84	 
	8.1.7 Loan Document Unenforceable
	 	 	84	 
	8.1.8 Uninsured Losses; Proceedings Against Assets
	 	 	84	 
	8.1.9 Events Relating to Plans and Benefit Arrangements
	 	 	84	 
	8.1.10 Change of Control
	 	 	85	 
	8.1.11 Relief Proceedings
	 	 	85	 
	8.2 Consequences of Event of Default
	 	 	85	 
	8.2.1 Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings
	 	 	85	 
	8.2.2 Bankruptcy, Insolvency or Reorganization Proceedings
	 	 	86	 
	8.2.3 Set-off
	 	 	86	 
	8.2.4 Application of Proceeds
	 	 	86	 
	 
	 	 	 	 
	9. THE ADMINISTRATIVE AGENT
	 	 	89	 
	9.1 Appointment and Authority
	 	 	89	 
	9.2 Rights as a Lender
	 	 	89	 
	9.3 Exculpatory Provisions
	 	 	90	 
	9.4 Reliance by Administrative Agent
	 	 	91	 
	9.5 Delegation of Duties
	 	 	91	 
	9.6 Resignation of Administrative Agent
	 	 	91	 
	9.7 Non-Reliance on Administrative Agent and Other Lenders
	 	 	92	 
	9.8 No Other Duties, etc
	 	 	92	 
	9.9 Administrative Fee
	 	 	92	 
	9.10 Authorization to Release Collateral and Guarantors
	 	 	92	 
	9.11 No Reliance on Administrative Agent’s Customer Identification Program
	 	 	93	 
	9.12 Defaulting Lender
	 	 	93	 
	9.12.1 Failure or Refusal to Comply with Lender Obligations
	 	 	93	 
	9.12.2 Non-Defaulting Lender Rights
	 	 	94	 
	9.12.3 Indemnification
	 	 	94	 
	9.12.4 Risk Participation
	 	 	94	 
	 
	 	 	 	 
	10. MISCELLANEOUS
	 	 	95	 
	10.1 Modifications, Amendments or Waivers
	 	 	95	 
	10.1.1 Increase of Commitment
	 	 	95	 
	10.1.2 Extension of Payment; Reduction of Principal Interest or Fees; Modification of Terms of Payment
	 	 	95	 
	10.1.3 Release of Collateral or Guarantor
	 	 	95	 
	10.1.4 Availability
	 	 	96	 
	10.1.5 Miscellaneous
	 	 	96	 
	10.2 No Implied Waivers; Cumulative Remedies
	 	 	96	 
	10.3 Expenses; Indemnity; Damage Waiver
	 	 	96	 
	10.3.1 Costs and Expenses
	 	 	96	 

 

v

 

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	10.3.2 Indemnification by the Loan Parties
	 	 	97	 
	10.3.3 Reimbursement by Lenders
	 	 	98	 
	10.3.4 Waiver of Consequential Damages, Etc
	 	 	98	 
	10.3.5 Payments
	 	 	98	 
	10.4 Holidays
	 	 	98	 
	10.5 Notices; Effectiveness; Electronic Communication
	 	 	99	 
	10.5.1 Notices Generally
	 	 	99	 
	10.5.2 Electronic Communications
	 	 	99	 
	10.5.3 Change of Address, Etc
	 	 	100	 
	10.6 Severability
	 	 	100	 
	10.7 Duration; Survival
	 	 	100	 
	10.8 Successors and Assigns
	 	 	100	 
	10.8.1 Successors and Assigns Generally
	 	 	100	 
	10.8.2 Assignments by Lenders
	 	 	100	 
	10.8.3 Register
	 	 	102	 
	10.8.4 Participations
	 	 	102	 
	10.8.5 Limitations upon Participant Rights Successors and Assigns Generally
	 	 	103	 
	10.8.6 Certain Pledges; Successors and Assigns Generally
	 	 	103	 
	10.9 Publicity
	 	 	103	 
	10.10 Confidentiality
	 	 	103	 
	10.10.1 General
	 	 	103	 
	10.10.2 Sharing Information With Affiliates of the Lenders
	 	 	104	 
	10.11 Counterparts; Integration; Effectiveness
	 	 	104	 
	10.11.1 Counterparts; Integration; Effectiveness
	 	 	104	 
	10.12 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL
	 	 	104	 
	10.12.1 Governing Law
	 	 	104	 
	10.12.2 SUBMISSION TO JURISDICTION
	 	 	105	 
	10.12.3 WAIVER OF VENUE
	 	 	105	 
	10.12.4 SERVICE OF PROCESS
	 	 	105	 
	10.12.5 WAIVER OF JURY TRIAL
	 	 	105	 
	10.13 Patriot Act Notice; Proceeds of Crime Act
	 	 	106	 
	10.14 Additional Waivers
	 	 	106	 
	10.14.1 Joint and Several Liability
	 	 	106	 
	10.14.2 No Reduction of Obligations
	 	 	106	 
	10.14.3 Additional Waivers
	 	 	107	 
	10.14.4 Subordination
	 	 	107	 
	10.15 Obligations Upon Receipt of Indefeasible Payment In Full
	 	 	108	 
	10.16 Limitation Of Canadian Borrower’s Liability
	 	 	109	 
	10.17 Judgment Currency
	 	 	109	 
	10.17.1 Judgment Currency
	 	 	109	 
	10.17.2 Change in Exchange Rate
	 	 	109	 
	10.17.3 Canadian Liabilities
	 	 	110	 
	10.17.4 Rate of Exchange
	 	 	110	 
	10.18 Language
	 	 	110	 

 

vi

 

LIST OF SCHEDULES AND EXHIBITS

SCHEDULES

	 	 	 	 	 
	SCHEDULE 1.1(A)
	 	—	 	PRICING GRID
	SCHEDULE 1.1(B)
	 	—	 	COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES
	SCHEDULE 1.1(C)
	 	—	 	QUALIFIED CREDIT CARD RECEIVABLES
	SCHEDULE 1.1(D)
	 	—	 	QUALIFIED INVENTORY
	SCHEDULE 1.1(E)
	 	—	 	EXISTING LETTERS OF CREDIT
	SCHEDULE 1.1(P)
	 	—	 	PERMITTED LIENS
	SCHEDULE 5.1.1
	 	—	 	QUALIFICATIONS TO DO BUSINESS
	SCHEDULE 5.1.2
	 	—	 	SUBSIDIARIES
	SCHEDULE 5.1.14
	 	—	 	ENVIRONMENTAL DISCLOSURES
	SCHEDULE 5.1.16
	 	—	 	LABOR MATTERS
	SCHEDULE 5.1.17.1
	 	—	 	DDAs
	SCHEDULE 5.1.17.2
	 	—	 	CREDIT CARD PROCESSORS
	SCHEDULE 6.1.1
	 	—	 	OPINION OF COUNSEL
	SCHEDULE 7.1.3
	 	—	 	INSURANCE REQUIREMENTS RELATING TO COLLATERAL
	SCHEDULE 7.2.1
	 	—	 	PERMITTED INDEBTEDNESS
	SCHEDULE 7.2.8
	 	—	 	AFFILIATE TRANSACTIONS

EXHIBITS

	 	 	 	 	 
	EXHIBIT 1.1(A)
	 	—	 	ASSIGNMENT AND ASSUMPTION AGREEMENT
	EXHIBIT 1.1(C)
	 	—	 	COLLATERAL ASSIGNMENT
	EXHIBIT 1.1(G)(1)
	 	—	 	GUARANTOR JOINDER
	EXHIBIT 1.1(G)(2)
	 	—	 	GUARANTY AGREEMENT
	EXHIBIT 1.1(G)(3)
	 	—	 	BORROWER JOINDER
	EXHIBIT 1.1(N)(1)
	 	—	 	REVOLVING CREDIT NOTE
	EXHIBIT 1.1(N)(2)
	 	—	 	SWING LOAN NOTE
	EXHIBIT 1.1(S)
	 	—	 	SECURITY AGREEMENT
	EXHIBIT 2.5.1
	 	—	 	LOAN REQUEST
	EXHIBIT 2.5.2
	 	—	 	SWING LOAN REQUEST
	EXHIBIT 2.10
	 	—	 	LENDER JOINDER
	EXHIBIT 7.3.3
	 	—	 	COMPLIANCE CERTIFICATE
	EXHIBIT 7.3.4.1
	 	—	 	SIMPLIFIED BORROWING BASE CERTIFICATE
	EXHIBIT 7.3.4.2
	 	—	 	BORROWING BASE CERTIFICATE

 

vii

 

CREDIT AGREEMENT

THIS CREDIT AGREEMENT (as hereafter amended, the “Agreement”) is dated as of June 30, 2010 and
is made by and among DSW INC., an Ohio corporation (“DSW”), DSW SHOE WAREHOUSE, INC., a Missouri
corporation (“DSW Shoe”, and together with DSW, individually, a “Borrower”, and collectively, the
“Borrowers”, as hereinafter further defined), each of the GUARANTORS (as hereinafter defined), the
LENDERS (as hereinafter defined), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as
administrative agent for the Lenders under this Agreement (hereinafter referred to in such capacity
as the “Administrative Agent”).

The Borrowers have requested the Lenders to provide a revolving credit facility to the
Borrowers in an aggregate original principal amount not to exceed $100,000,000, which may be
increased in accordance with the terms of Section 2.10 [Increase in Revolving Credit Commitments]
hereof and a sub-facility in favor of the Canadian Borrower (defined below) in an aggregate
original principal amount not to exceed $10,000,000. In consideration of their mutual covenants
and agreements hereinafter set forth and intending to be legally bound hereby, the parties hereto
covenant and agree as follows:

1. CERTAIN DEFINITIONS

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

Account shall mean “accounts” as defined in the UCC (or as regards to the Canadian
Borrower, the PPSA), and also shall mean any account, contract right, general intangible, chattel
paper, instrument or document representing any right to payment for goods sold or services
rendered, whether or not earned by performance and whether or not evidenced by a contract,
instrument or document, which is now owned or hereafter acquired by a Loan Party. All Accounts,
whether Qualified Credit Card Receivables or not, shall be subject to the Administrative Agent’s
and the Lenders’ Prior Security Interest.

Account Debtor shall mean any Person who is or who may become obligated to a Loan
Party under, with respect to, or on account of, an Account.

Acquisition shall mean, with respect to any Person (a) an investment in, or a purchase
of a controlling interest in, the equity interests of any other Person, (b) a purchase or other
acquisition of all or substantially all of the assets or properties of, another Person or of any
business unit of another Person, (c) any merger, consolidation or amalgamation of such Person with
any other Person or other transaction or series of transactions resulting in the acquisition of all
or substantially all of the assets, or a controlling interest in the equity interests, of any
Person, or (d) any acquisition of any store locations of any Person for an aggregate purchase price
of $5,000,000 or more, in each case in any transaction or group of transactions which are part of a
common plan.

 

 

 

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

Administrative Fee shall have the meaning specified in Section 9.9
[Administrative Fee].

Affiliate as to any Person shall mean any other Person (i) which directly or
indirectly controls, is controlled by, or is under common control with such Person, (ii) which
beneficially owns or holds ten percent (10.0%) or more of any class of the voting or other equity
interests of such Person, or (iii) ten percent (10.0%) or more of any class of voting interests or
other equity interests of which is beneficially owned or held, directly or indirectly, by such
Person.

Agreement shall have the meaning specified in the preamble hereof.

Alternate Source shall have the meaning specified in the definition of “Federal Funds
Open Rate” or “LIBOR Rate”, as applicable.

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

Applicable Commitment Fee Rate shall mean the percentage rate per annum based on the
Average Daily Revolving Credit Availability for the immediately preceding fiscal quarter according
to the pricing grid on Schedule 1.1(A) below the heading “Commitment Fee.”

Applicable Letter of Credit Fee Rate shall mean the following percentage rate per
annum based upon Average Daily Revolving Credit Availability then in effect according to the
pricing grid on Schedule 1.1(A): (a) with respect to Standby Letters of Credit, the
percentage rate per annum applicable to Revolving Credit Loans to which the LIBOR Rate Option or
the BA Rate Option, as applicable, applies, and (b) with respect to Commercial Letters of Credit,
the percentage rate per annum equal to fifty percent (50%) of the percentage rate per annum
applicable to Revolving Credit Loans to which the LIBOR Rate Option or the BA Rate Option, as
applicable, applies.

Applicable Margin shall mean, as applicable:

(A) the percentage spread to be added to the Base Rate applicable to Revolving Credit Loans
under the Base Rate Option based on the Average Daily Revolving Credit Availability according to
the pricing grid on Schedule 1.1(A) below the heading “Revolving Credit Base Rate Spread”,
or

(B) the percentage spread to be added to the LIBOR Rate applicable to Revolving Credit Loans
under the LIBOR Rate Option based on the Average Daily Revolving Credit Availability according to
the pricing grid on Schedule 1.1(A) below the heading “Revolving Credit LIBOR Rate Spread”;

 

- 2 -

 

(C) the percentage spread to be added to the Canadian Prime Rate applicable to Revolving
Credit Loans under the Canadian Prime Rate Option based on the Average Daily Revolving Credit
Availability according to the pricing grid on Schedule 1.1(A) below the heading “Revolving
Credit Canadian Prime Rate Spread”; or

(D) the percentage spread to be added to the BA Rate applicable to Revolving Credit Loans
under the BA Rate Option based on the Average Daily Revolving Credit Availability according to the
pricing grid on Schedule 1.1(A) below the heading “Revolving Credit BA Rate Spread”.

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

Arranger shall mean PNC Capital Markets LLC, and its successors and assigns, in its
capacity as sole book runner and sole lead arranger.

Assignment and Assumption Agreement shall mean an assignment and assumption agreement
entered into by a Lender and an assignee permitted under Section 10.8 [Successors and
Assigns], in substantially the form of Exhibit 1.1(A) or, with respect to any assignment by
any Canadian Lender, in such other form as is reasonably acceptable to the Administrative Agent.

Authorized Officer shall mean, with respect to any Loan Party, the Chief Executive
Officer, President, Chief Financial Officer, Treasurer or Assistant Treasurer of such Loan Party or
such other individuals, designated by written notice to the Administrative Agent from the
Borrowers, authorized to execute notices, reports and other documents on behalf of the Loan Parties
required hereunder. The Borrowers may amend such list of individuals from time to time by giving
written notice of such amendment to the Administrative Agent.

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

Average Daily Revolving Credit Availability shall mean, at any time of determination,
the average daily Revolving Credit Availability for the immediately preceding fiscal quarter.

BA Equivalent Loan shall mean any Loan to the Canadian Borrower in CD$ bearing
interest at a rate determined by reference to the BA Rate in accordance with the provisions of
Article II.

BA Equivalent Loan Borrowing shall mean any Borrowing comprised of BA Equivalent
Loans.

BA Rate shall mean, for the Interest Period of each BA Equivalent Loan, the rate of
interest per annum equal to the annual rates applicable to CD$ bankers’ acceptances having an
identical or comparable term as the bankers’ acceptances proposed to be issued displayed and

 

- 3 -

 

identified as such on the display referred to as the “CDOR Page” (or any display substituted
therefor) of Reuter Monitor Money Rates Service as at approximately 10:00 A.M. on such day (or, if
such day is not a Business Day, as of 10:00 A.M. on the immediately preceding Business Day),
provided that if such rates do not appear on CDOR Page at such time on such date, the rate for such
date will be the annual discount rate (rounded upward to the nearest whole multiple of 1/100 of 1%)
as of 10:00 A.M. on such day at which The Toronto-Dominion Bank is then offering to purchase CD$
bankers’ acceptances accepted by it having such specified term (or a term as closely as possible
comparable to such specified term). In the event that the Administrative Agent is unable to obtain
any such quotation as provided above, it will be deemed that a BA Rate pursuant to a BA Equivalent
Loan Borrowing cannot be obtained.

BA Rate Option shall mean the option of the Canadian Borrower to have Loans bear
interest at the rate and under the terms set forth in Section 3.1.1(iv) [Revolving Credit
BA Rate Option].

Bankruptcy Code means each of (i) Title 11, U.S.C., as now or hereafter in effect, or
any successor thereto, and (ii) the Bankruptcy and Insolvency Act (Canada), the Companies’
Creditors Arrangement Act (Canada) and the Winding-up and Restructuring Act (Canada), as now or
hereafter in effect, or any successor thereto.

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

Base Rate Option shall mean the option of the Borrowers to have Loans bear interest at
the rate and under the terms set forth in Section 3.1.1(i) [Revolving Credit Base Rate
Option].

Blocked Account shall have the meaning specified in Section 7.1.10 [Cash
Management].

Blocked Account Agreement shall mean with respect to an account established by a Loan
Party, an agreement, in form and substance satisfactory to the Administrative Agent, establishing
control (as defined in the UCC) of such account by the Administrative Agent and whereby the bank
maintaining such account agrees, upon the occurrence of a Trigger Event Election or the occurrence
and continuance of an Event of Default, to comply only with the instructions originated by the
Administrative Agent without the further consent of any Loan Party.

Blocked Account Bank shall mean each bank with whom DDAs are maintained in which any
funds of any of the Loan Parties from one or more DDAs are concentrated and with whom a Blocked
Account Agreement has been, or is required to be, executed in accordance with the terms hereof.

 

- 4 -

 

Borrower Joinder shall mean a joinder by a Person as a Borrower under the Loan
Documents in the form of Exhibit 1.1(G)(3), or, with respect to a joinder by the Canadian
Borrower, in such other form as is reasonably acceptable to the Administrative Agent.

Borrowers shall mean each of (a) DSW Inc., a corporation organized and existing under
the laws of the State of Ohio, (b) DSW Shoe Warehouse, Inc., a corporation organized and existing
under the laws of the State of Missouri, and (c) each other Person which joins this Agreement as a
Borrower after the date hereof.

Borrowing Base shall mean at any time:

(a) ninety percent (90%) of Qualified Credit Card Receivables of the Domestic
Borrowers, plus

(b) the lesser of (i) sixty-five percent (65%) of the book value (determined in
accordance with GAAP) of Qualified Inventory of the Domestic Borrowers at cost (determined
in accordance with GAAP), or (ii) eighty-five percent (85%) of the appraised net orderly
liquidation value expressed as a percentage of cost (as used in this definition, “NOLV”) of
Qualified Inventory of the Domestic Borrowers multiplied by the cost (determined in
accordance with GAAP) of Qualified Inventory of the Domestic Borrowers, minus

(c) reserves deemed appropriate by the Administrative Agent.

Following the occurrence of a Borrowing Base Trigger Event, until such time as the
Administrative Agent shall have obtained and reviewed an updated audit and appraisal, in
each case in form and substance satisfactory to the Administrative Agent, NOLV shall be
based upon the audit and appraisal delivered to the Administrative Agent pursuant to Section
7.1.5.2 hereof. Notwithstanding anything to the contrary, the Administrative Agent may, in
its sole discretion, (i) increase the level of any reserves, or define or maintain such
other reserves, as the Administrative Agent may deem necessary or appropriate, and (ii)
reduce the advance percentages for Qualified Credit Card Receivables and Qualified
Inventory, in the case of this clause (ii) upon the Administrative Agent’s receipt and
review of such updated audit and appraisal to the extent that, in the Administrative Agent’s
reasonable opinion, such updated audit and appraisal evidence a material change from the
audit and appraisal delivered to the Administrative Agent pursuant to Section 7.1.5.2
hereof. Any such change shall become effective immediately upon written notice from the
Administrative Agent to the Borrowers for the purpose of calculating the Borrowing Base
hereunder.

Borrowing Base Certificate shall have the meaning specified in Section
7.3.4(ii) [Simplified Borrowing Base Certificates; Borrowing Base Certificates].

Borrowing Base Trigger Event shall mean the occurrence of any of the following events:
(i) the occurrence of a Trigger Event Election, (ii) the occurrence of an Event of Default, or
(iii) the failure of the Domestic Borrowers to have on hand the Minimum Cash Requirement.

 

- 5 -

 

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

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

Business Day shall mean any day other than a Saturday or Sunday or a legal holiday on
which commercial banks are authorized or required to be closed for business in Pittsburgh,
Pennsylvania and if the applicable Business Day relates to any Loan to which the LIBOR Rate Option
applies, such day must also be a day on which dealings are carried on in the London interbank
market; provided further that when used in connection with any Loan to the Canadian
Borrower, the term “Business Day” shall also exclude any day on which banks are authorized or
required by law to be closed in Toronto, Ontario, Canada.

Canadian Availability means, as of any date of determination thereof by the
Administrative Agent, the result, if a positive number, of (a) the lesser of (i) CD$10,000,000 or
(ii) the Canadian Borrowing Base, minus (b) the Revolving Facility Usage by the Canadian
Borrower, minus (c) the aggregate amount of all then outstanding and unpaid trade payables
and other obligations of the Canadian Borrower which are more than sixty (60) days past due as of
such time (it being understood that to the extent that the time for payment of any such trade
payables and other obligations has been extended in writing by the applicable creditor, such trade
payables and other obligations shall not be deemed to be past due until the extended date for
payment has passed); provided that Canadian Availability shall be reduced by that amount
necessary in order that Revolving Credit Availability will not be exceeded. In calculating
Canadian Availability at any time and for any purpose under this Agreement, the Canadian Borrower
shall certify to the Administrative Agent that all of its accounts payable and taxes are being paid
on a timely basis.

Canadian Borrower means a direct or indirect wholly owned Subsidiary of DSW to be
hereafter formed under the laws of the Province of Ontario, Canada, which joins this Agreement as
the Canadian Borrower after the date hereof.

Canadian Borrowing Base shall mean at any time:

(a) ninety percent (90%) of Qualified Credit Card Receivables of the Canadian Borrower,
plus

(b) the lesser of (i) sixty-five percent (65%) of the book value (determined in
accordance with GAAP) of Qualified Inventory of the Canadian Borrower at cost

 

- 6 -

 

(determined in accordance with GAAP), or (ii) eighty-five percent (85%) of the
appraised net orderly liquidation value expressed as a percentage of cost (as used in this
definition, “NOLV”) of Qualified Inventory of the Canadian Borrower multiplied by the cost
(determined in accordance with GAAP) of Qualified Inventory of the Canadian Borrower,
minus

(c) reserves deemed appropriate by the Administrative Agent.

Following the occurrence of a Borrowing Base Trigger Event, until such time as the
Administrative Agent shall have obtained and reviewed an updated audit and appraisal, in each case
in form and substance satisfactory to the Administrative Agent, NOLV shall be based upon the audit
and appraisal of the Domestic Borrowers delivered to the Administrative Agent pursuant to Section
7.1.5.2 hereof. Notwithstanding anything to the contrary, the Administrative Agent may, in its
sole discretion, (i) increase the level of any reserves, or define or maintain such other reserves,
as the Administrative Agent may deem necessary or appropriate, and (ii) reduce the advance
percentages for Qualified Credit Card Receivables and Qualified Inventory, in the case of this
clause (ii) upon the Administrative Agent’s receipt and review of an audit and appraisal for the
Canadian Borrower to the extent that, in the Administrative Agent’s reasonable opinion, such
updated audit and appraisal evidence a material change from the audit and appraisal delivered of
the Domestic Borrowers to the Administrative Agent pursuant to Section 7.1.5.2 hereof. Any such
change shall become effective immediately upon written notice from the Administrative Agent to the
Borrowers for the purpose of calculating the Canadian Borrowing Base hereunder.

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

Canadian Lender initially means PNC Canada. Any Person may be a Canadian Lender only
if it is a financial institution that is listed on Schedule I, II or III of the Bank Act (Canada)
or is not a foreign bank for purposes of the Bank Act (Canada), and if such financial institution
is not resident in Canada and is not deemed to be resident in Canada for purposes of the Income Tax
Act (Canada), then such financial institution deals at arm’s length with the Canadian Borrower for
purposes of the Income Tax Act (Canada).

Canadian Liabilities shall mean any obligation or liability of the Canadian Borrower,
howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due, under or in connection with (i) this Agreement, the
Notes, or any other Loan Document whether to the Administrative Agent, any of the Canadian Lenders
or their Affiliates provided for under such Loan Documents (including all interest, fees, expenses,
indemnities and other amounts that accrue after the commencement of any case or proceeding by or
against the Canadian Borrower or any of its Subsidiaries under the Bankruptcy Code, whether or not
allowed in such case or proceeding), (ii) any Lender Provided Interest Rate Hedge to the Canadian
Borrower and (iii) any Other Lender Provided Financial Service Product provided to the Canadian
Borrower.

 

- 7 -

 

Canadian Prime Rate means the higher of (a) the annual rate of interest established
from time to time by PNC Canada as its reference rate of interest for loans made in CD$ to Canadian
customers and designated as its “prime” rate, which rate may not be the lowest or most favorable
rate then being charged commercial borrowers or others by PNC Canada, and (b) the BA Rate
applicable to Canadian dollar banker’s acceptances having a term of one month as displayed on the
“CDOR Page” or otherwise as determined pursuant to the definition of “BA Rate” plus one percent
(1%) per annum. Any change in the Canadian Prime Rate shall take effect at the opening of business
on the day such change is announced.

Canadian Prime Rate Option shall mean the option of the Canadian Borrower to have
Loans bear interest at the rate and under the terms set forth in Section 3.1.1(iii)
[Revolving Credit Canadian Prime Rate Option].

Capital Expenditures shall mean the expenditure of funds or the incurrence of
liabilities which may be capitalized in accordance with GAAP.

Capital Lease shall mean any lease which may be capitalized in accordance with GAAP.

Cash Collateralize shall mean to pledge and deposit with or deliver to Administrative
Agent, for the benefit of the Issuing Lender and the Lenders, as collateral for the Letter of
Credit Obligations, cash in an amount equal to 105% of the sum of (i) the maximum amount then or at
any time thereafter available to be drawn or otherwise outstanding in respect of the then
outstanding Letters of Credit, plus (ii) the aggregate Reimbursement Obligations and Letter of
Credit Borrowings. Such cash collateral shall be maintained in blocked, non-interest-bearing
deposit accounts maintained by, and in the name of, the Administrative Agent.

CD$ shall mean Canadian dollars.

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

CIP Regulations shall have the meaning specified in Section 9.11 [No Reliance
on Administrative Agent’s Customer Identification Program].

Closing Date shall mean the Business Day on which the first Loan shall be made, which
shall be June 30, 2010.

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

Collateral shall mean (a) the collateral under the (i) Security Agreement, (ii) the
Collateral Assignment, and (iii) the Blocked Account Agreements, and (b) any cash collateral
referred to in the definition of “Cash Collateralize”; provided however, Collateral
shall not

 

- 8 -

 

include the Excluded Property; provided further that any assets of the
Canadian Borrower shall secure only the Canadian Liabilities.

Collateral Access Agreement shall mean an agreement reasonably satisfactory in form
and substance to the Administrative Agent executed by (a) a bailee or other Person in possession of
Collateral, and (b) any landlord of real estate leased by any Loan Party, pursuant to which such
Person (i) acknowledges the Administrative Agent’s Lien on the Collateral, (ii) releases or
subordinates such Person’s Liens in the Collateral held by such Person or located on such real
estate, (iii) provides the Administrative Agent with access to the Collateral held by such bailee
or other Person or located in or on such Real Estate, (iv) as to any landlord, provides the
Administrative Agent with a reasonable time to sell and dispose of the Collateral from such Real
Estate, and (v) makes such other agreements with the Administrative Agent as the Administrative
Agent may reasonably require.

Collateral Assignment shall mean the Collateral Assignment in the form of Exhibit
1.1(C), or, with respect to the Canadian Borrower, in such other form as is reasonably
acceptable to the Administrative Agent.

Collateral Documents shall have the meaning specified in Section 5.1.11 [Liens
in the Collateral].

Commercial Letter of Credit shall mean any letter of credit which is a commercial
letter of credit issued in respect of the purchase of goods or services by one or more of the Loan
Parties in the ordinary course of their business.

Commitment shall mean as to any Lender the aggregate of its Revolving Credit
Commitment and Canadian Commitment and, in the case of PNC, its Swing Loan Commitment, and
Commitments shall mean the aggregate of the Revolving Credit Commitments, Canadian
Commitments and Swing Loan Commitment of all of the Lenders, including, without limitation, any
increased Commitments of any Lender pursuant to Section 2.10 hereof.

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

Compliance Certificate shall have the meaning specified in Section 7.3.3
[Certificate of the Borrowers].

Concentration Account shall have the meaning specified in Section 7.1.10 [Cash
Management].

Consolidated EBITDA for any period of determination shall mean (i) the sum of net
income, depreciation, amortization, other non-cash charges to net income, interest expense and
income tax expense minus (ii) non-cash credits to net income, in each case of DSW and its
Subsidiaries for such period determined and consolidated in accordance with GAAP.

Credit Card Notification shall have the meaning specified in Section 7.1.10
[Cash Management].

 

- 9 -

 

Credit Card Receivables shall mean each Account together with all income, payments and
proceeds thereof, owed by a major credit or debit card issuer (including, but not limited to, Visa,
MasterCard and American Express and such other issuers approved by the Administrative Agent) to a
Loan Party resulting from charges by a customer of a Loan Party on credit or debit cards issued by
such issuer in connection with the sale of goods by a Loan Party, or services performed by a Loan
Party, in each case in the ordinary course of its business.

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

DDA shall mean each checking, savings or other demand deposit account maintained by
any of the Loan Parties. All funds in each DDA shall be conclusively presumed to be Collateral and
proceeds of Collateral and the Administrative Agent and the Lenders shall have no duty to inquire
as to the source of the amounts on deposit in any DDA.

Defaulting Lender shall mean any Lender that (a) has failed to fund any portion of the
Loans, participations with respect to Letters of Credit, or participations in Swing Line Loans
required to be funded by it hereunder within one Business Day of the date required to be funded by
it hereunder unless such failure has been cured and all interest accruing as a result of such
failure has been fully paid in accordance with the terms hereof, (b) has otherwise failed to pay
over to the Administrative Agent or any other Lender any other amount required to be paid by it
hereunder within one Business Day of the date when due, unless the subject of a good faith dispute
or unless such failure has been cured and all interest accruing as a result of such failure has
been fully paid in accordance with the terms hereof, (c) has failed at any time to comply with the
provisions of Section 4.3 with respect to purchasing participations from the other Lenders,
whereby such Lender’s share of any payment received, whether by setoff or otherwise, is in excess
of its Ratable Share of such payments due and payable to all of the Lenders, or (d) has since the
date of this Agreement been deemed insolvent by an Official Body or become the subject of a
bankruptcy, receivership, monitorship, conservatorship or insolvency proceeding, or has a parent
company that since the date of this Agreement been deemed insolvent by an Official Body or become
the subject of a bankruptcy, receivership, monitorship, conservatorship or insolvency proceeding.

Deteriorating Lender shall mean any Defaulting Lender or any Lender (a) which has
defaulted in fulfilling its obligations under one or more other syndicated credit facilities, or
(b) as to which a Person that controls such Lender has been deemed insolvent or become the subject
of a bankruptcy, insolvency or similar proceeding.

Determination Date shall mean the date upon which each of the following has occurred:

(a) The Commitments have been terminated by the Required Lenders upon the occurrence of
an Event of Default (or are deemed terminated upon the occurrence of an Event of Default of
the type described in Section 8.1.11 [Relief Proceedings]); and

 

- 10 -

 

(b) The Obligations and/or the Canadian Liabilities have been declared to be due and payable
(or has become automatically due and payable) and have not been paid in accordance with the terms
of this Agreement.

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

Domestic Borrower shall mean all Borrowers other than the Canadian Borrower.

Domestic Lender shall mean all Lenders other than the Canadian Lender.

Domestic Subsidiary shall mean any Subsidiary that is organized under the laws of the
United States of America, any State thereof or the District of Columbia.(excluding, for the
avoidance of doubt, any Subsidiary organized under the laws of Puerto Rico or any other territory).

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

DSW shall mean DSW Inc., a corporation organized and existing under the laws of the
State of Ohio.

DSW Shoe shall mean DSW Shoe Warehouse, Inc., a corporation organized and existing
under the laws of the State of Missouri.

Environmental Laws shall mean all applicable federal, state, local, tribal,
territorial, provincial and foreign Laws (including common law), constitutions, statutes, treaties,
regulations, rules, ordinances and codes and any consent decrees, settlement agreements, judgments,
orders, directives, policies or programs issued by or entered into with an Official Body pertaining
or relating to: (i) pollution or pollution control; (ii) protection of human health from exposure
to regulated substances; (iii) protection of the environment and/or natural resources; (iv)
employee safety in the workplace; (v) the presence, use, management, generation, manufacture,
processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale,
transport, storage, collection, distribution, disposal or release or threat of release of regulated
substances; (vi) the presence of contamination; (vii) the protection of endangered or threatened
species; and (viii) the protection of environmentally sensitive areas.

Equity Interests shall have the meaning specified in Section 5.1.2
[Subsidiaries and Owners; Investment Companies].

Equivalent Amount means, on any date, the rate at which CD$ may be exchanged into
Dollars, determined by reference to the Bank of Canada noon rate as published on the Reuters Screen
BOFC on the immediately preceding Business Day. In the event that such rate does not appear on
such Reuters page, “Equivalent Amount” shall mean, on any date, the amount of Dollars into which an
amount of CD$ may be converted or the amount of CD$ into which an amount of Dollars may be
converted, in either case, at, in the case of the Canadian Borrower, PNC Canada’s spot buying rate
in Toronto as at approximately 12:00 noon (Toronto time) on such date and, in the case of a
Domestic Borrower, the Administrative Agent’s spot buying rate

 

- 11 -

 

in New York as at approximately 12:00 noon (New York City time) on the immediately preceding
Business Day.

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

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

ERISA Event shall mean (a) a reportable event (under Section 4043 of ERISA and
regulations thereunder) with respect to a Pension Plan; (b) a withdrawal by a Borrower or any ERISA
Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that
is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial
withdrawal by a Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a
Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the
commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an
event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon any Borrower or any ERISA Affiliate; or (g) with
respect to the Canadian Borrower, the existence with respect to any Plan of any due but un-remitted
contribution, whether or not waived.

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

Eurocurrency Liabilities shall have the meaning specified in the definition of “LIBOR
Reserve Percentage”.

Event of Default shall mean any of the events described in Section 8.1 [Events
of Default] and referred to therein as an “Event of Default.”

Excluded Property shall mean any of the following property of any Loan Party: (i) all
rights, priorities and privileges relating to any real property in which any Loan Party has an
interest and any leases or sub-leases of any real property; (ii) all rights, priorities and
privileges relating to intellectual property, whether arising under United States, multinational or
foreign laws or otherwise, including domain names, copyrights, copyright licenses, patents, patent
licenses, trademarks, trademark licenses and trade secrets, and any right to sue at law or in
equity for any infringement or other impairment thereof, including the right to receive all
proceeds and damages therefrom; (iii) depository accounts used solely for payroll, medical expenses
and payments, pension benefits, employee withholding or other benefits, taxes, and stock options;

 

- 12 -

 

(iv) interests in life insurance; (v) goods or other tangible property not located in the US
or Canada; and (vi) interests or investments in joint ventures, the constituent documents or
shareholder or member agreements of or for which prohibit the granting of collateral.

Excluded Taxes shall mean, with respect to the Administrative Agent, any Lender, the
Issuing Lender or any other recipient of any payment to be made by or on account of any obligation
of any Loan Party hereunder, (a) taxes imposed on or measured by its overall net income (however
denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in
which its principal office is located or, in the case of any Lender, in which its applicable
lending office is located, (b) any branch profits taxes imposed by the United States of America or
any similar tax imposed by any other jurisdiction in which any Loan Party is located and (c) in the
case of a Foreign Lender, any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party hereto (or designates a new lending office)
or is attributable to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 4.9.5 [Status of Lenders], except to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new
lending office (or assignment), to receive additional amounts from any Loan Party with respect to
such withholding tax pursuant to Section 4.9.1 [Payment Free of Taxes].

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

Existing Letters of Credit shall mean each of the letters of credit issued or deemed
issued under the Existing Loan Agreement and described on Schedule 1.1(E).

Existing Loan Agreement shall mean that certain Loan and Security Agreement dated as
of July 5, 2005, by and among the Borrowers, PNC (as successor by merger to National City Business
Credit, Inc.), as administrative agent and collateral agent, PNC (as successor by merger to
National City Bank), as Letter of Credit Issuer, and the other parties thereto, as amended and in
effect immediately prior to the Closing Date.

Expiration Date shall mean, with respect to the Revolving Credit Commitments, June 30,
2014.

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

 

- 13 -

 

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

Fee Letter shall mean the letter agreement, dated May 18, 2010, among the Domestic
Borrowers, the Administrative Agent and the Arranger.

Financial Statement Accounts shall mean, for the Domestic Borrowers and the Canadian
Borrower, respectively, “accounts receivable, net of bad debt reserves”, as shown on such Loan
Party’s consolidating balance sheet, calculated in accordance with GAAP.

Financial Statement Inventory shall mean, for the Domestic Borrowers and the Canadian
Borrower, respectively, “inventories”, as shown on such Loan Party’s consolidating balance sheet,
calculated in accordance with GAAP.

Fixed Charge Coverage Ratio shall mean, for DSW and its Subsidiaries on a consolidated
basis, as of any date of determination, the ratio of (a) Consolidated EBITDA, minus Capital
Expenditures, minus income taxes paid in cash, minus dividends and other
distributions on account of, and repurchases of, DSW’s capital stock, for the applicable period
then ending taken as one accounting period, to (b) Fixed Charges, for the applicable period then
ending taken as one accounting period.

Fixed Charges shall mean, without duplication, the sum of the following for the Loan
Parties on a consolidated basis: (a) Interest Expense, plus (b) scheduled payments of principal on
Indebtedness (including Capital Leases but excluding the Revolving Credit Loans).

Foreign Lender shall mean any Lender that is organized under the Laws of a
jurisdiction other than that in which any Loan Party is resident for tax purposes. For purposes of
this definition, the United States of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

Foreign Subsidiary shall mean any Subsidiary other than a Domestic Subsidiary.

GAAP shall mean generally accepted accounting principles as are in effect from time to
time, subject to the provisions of Section 1.3 [Accounting Principles], and applied on a

 

- 14 -

 

consistent basis both as to classification of items and amounts provided that,
with respect to Foreign Subsidiaries organized under the laws of Canada, “GAAP” shall mean
principles which are consistent with those promulgated or adopted by the Canadian Institute of
Chartered Accountants and its predecessors (or successors) in effect and applicable to the
accounting period in respect of which reference to GAAP is being made.

General Security Agreement shall mean a General Security Agreement between the
Canadian Borrower and its Subsidiaries and the Administrative Agent, in form and substance
reasonably satisfactory to the Administrative Agent.

Guarantor shall mean, (a) with respect to the Obligations of the Domestic Borrowers,
each of the parties to this Agreement which is designated as a “Guarantor” on the signature page
hereof and each other Person which joins this Agreement as a Guarantor after the date hereof, and
(b) with respect to the Canadian Liabilities, each of the Domestic Borrowers and their
Subsidiaries, each Subsidiary of the Canadian Borrower and each other Person which joins this
Agreement as a Guarantor after the date hereof.

Guarantor Joinder shall mean a joinder by a Person as a Guarantor under the Loan
Documents in the form of Exhibit 1.1(G)(1) or, with respect to the Canadian Liabilities, in
such other form as is reasonably acceptable to the Administrative Agent.

Guaranty of any Person shall mean any obligation of such Person guaranteeing or in
effect guaranteeing any liability or obligation of any other Person in any manner, whether directly
or indirectly, including any agreement to indemnify or hold harmless any other Person, any
performance bond or other suretyship arrangement and any other form of assurance against loss,
except (i) endorsement of negotiable or other instruments for deposit or collection in the ordinary
course of business, (ii) warranties made in the ordinary course of business, (iii) liabilities to
any lessor by a Loan Party, (iv) indemnities in contracts of Indebtedness permitted hereunder, and
(v) indemnities in respect of statutory obligations, bonding, brokerage, financial contracts,
acquisitions, divestures and other customary business contracts.

Guaranty Agreement shall mean the Continuing Agreement of Guaranty and Suretyship in
substantially the form of Exhibit 1.1(G)(2) (or, with respect to the Canadian Liabilities,
in such other form as is reasonably acceptable to the Administrative Agent) executed and delivered
by each of the Guarantors.

ICC shall have the meaning specified in Section 10.11.1 [Governing Law].

Increasing Lender shall have the meaning specified in Section 2.10.1
[Increasing Lenders and New Lenders].

Indebtedness shall mean, as to any Person at any time, any and all indebtedness,
obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or
indirect, absolute or contingent, or joint or several) of such Person for or in respect of: (i)
borrowed money, (ii) amounts raised under or liabilities in respect of any note purchase or
acceptance credit facility, (iii) reimbursement obligations (contingent or otherwise) under any
letter of credit agreement, (iv) obligations under any currency swap agreement, interest rate swap,
cap, collar or floor agreement or other interest rate management device, (v) any other

 

- 15 -

 

transaction (including forward sale or purchase agreements, Capital Leases and conditional
sales agreements) having the commercial effect of a borrowing of money entered into by such Person
to finance its operations or capital requirements (but not including trade payables and accrued
expenses and liabilities with respect to operating leases incurred in the ordinary course of
business which are not represented by a promissory note or other evidence of indebtedness and which
are not more than sixty (60) days past due), or (vi) any Guaranty of Indebtedness for borrowed
money.

Indemnified Taxes shall mean Taxes other than Excluded Taxes.

Indemnitee shall have the meaning specified in Section 10.3.2 [Indemnification
by the Loan Parties].

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

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

Intercompany Subordination Agreement shall mean a Subordination Agreement among the
Loan Parties and each of their Subsidiaries which is not a Loan Party, in form and substance
reasonably acceptable to the Administrative Agent.

Interest Expense shall mean total interest expense generated during the period in
question (including attributable to conditional sales contracts, Capital Leases and other title
retention agreements in accordance with GAAP) of DSW and its Subsidiaries on a consolidated basis
with respect to all outstanding Indebtedness including accrued interest and interest paid in kind
and capitalized interest, fees, commissions, discounts and other fees owed with respect to letters
of credit and bankers’ acceptance financing, and net costs under Interest Rate Hedges.

Interest Period shall mean the period of time selected by the Borrowers in connection
with (and to apply to) any election permitted hereunder by the Borrowers to have Revolving Credit
Loans bear interest under the LIBOR Rate Option or, with respect to the Canadian Borrower, the BA
Rate Option. Subject to the last sentence of this definition, such period shall be one, two, three
or six Months. Such Interest Period shall commence on the effective date of such Interest Rate
Option, which shall be (i) the Borrowing Date if the Borrowers are requesting new Loans, or (ii)
the date of renewal of or conversion to the LIBOR

 

- 16 -

 

Rate Option or BA Rate Option, as applicable, if the Borrowers are renewing or converting to
the LIBOR Rate Option or BA Rate Option applicable to outstanding Loans. Notwithstanding the
second sentence hereof: (A) any Interest Period which would otherwise end on a date which is not a
Business Day shall be extended to the next succeeding Business Day unless such Business Day falls
in the next calendar month, in which case such Interest Period shall end on the next preceding
Business Day, and (B) the Borrowers shall not select, convert to or renew an Interest Period for
any portion of the Loans that would end after the Expiration Date.

Interest Rate Hedge shall mean an interest rate exchange, collar, cap, swap,
adjustable strike cap, adjustable strike corridor or similar agreements entered into by DSW or any
of its Subsidiaries in order to provide protection to, or minimize the impact upon, the Borrowers,
the Guarantors and/or their Subsidiaries of increasing floating rates of interest applicable to
Indebtedness.

Interest Rate Option shall mean any LIBOR Rate Option, Base Rate Option, BA Rate
Option or Canadian Prime Rate Option.

Inventory shall mean “inventory” as defined in the UCC and, as regards the Canadian
Borrower, includes all “inventory” as defined in the PPSA, and also shall mean any and all goods,
merchandise and other personal property, including, without limitation, goods in transit,
wheresoever located and whether now owned or hereafter acquired by any Loan Party which are or may
at any time be held as raw materials, finished goods, work-in-process, supplies or materials used
or consumed in the such Loan Party’s business or held for sale or lease, including, without
limitation, (a) all such property the sale or other disposition of which has given rise to Accounts
and which has been returned to or repossessed or stopped in transit by such Loan Party, and (b) all
packing, shipping and advertising materials relating to all or any such property. All Inventory,
whether Qualified Inventory or not, shall be subject to the Administrative Agent’s and the Lenders’
Prior Security Interest.

IRS shall mean the Internal Revenue Service.

ISP98 shall have the meaning specified in Section 10.12.1 [Governing Law].

Issuing Lender shall mean PNC, in its individual capacity as issuer of Letters of
Credit hereunder, and any other Lender that DSW, Administrative Agent (each of whose consent shall
not be unreasonably withheld or delayed) and such other Lender may agree may from time to time to
issue Letters of Credit hereunder.

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

Judgment Conversion Date shall have the meaning set forth in Section 10.17
[Judgment Currency].

Judgment Currency shall have the meaning set forth in Section 10.17 [Judgment
Currency].

 

- 17 -

 

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

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

Lenders shall mean the financial institutions named on Schedule 1.1(B) and
their respective successors and assigns as permitted hereunder, each of which is referred to herein
as a Lender. For the purpose of any Loan Document which provides for the granting of a security
interest or other Lien to the Lenders or to the Administrative Agent for the benefit of the Lenders
as security for the Obligations or Canadian Liabilities, respectively, “Lenders” shall include any
Affiliate of a Lender to which such Obligation is owed.

Letter of Credit shall mean each Existing Letter of Credit and shall also have the
meaning specified in Section 2.9.1 [Issuance of Letters of Credit].

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

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

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

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

LIBOR Rate shall mean, with respect to the Loans comprising any Borrowing Tranche to
which the LIBOR Rate Option applies for any Interest Period, the interest rate per annum determined
by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary, to
the nearest 1/100th of 1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on
such other substitute Bloomberg page that displays rates at which U.S. Dollar deposits are offered
by leading banks in the London interbank deposit market), or the rate which is quoted by another
source selected by the Administrative Agent which has been approved by the British Bankers’
Association as an authorized information vendor for the purpose of displaying rates at which U.S.
Dollar deposits are offered by leading banks in the London interbank deposit market (for purposes
of this definition, an “Alternate Source”), at approximately 11:00 a.m., London time, two (2)
Business Days prior to the commencement of such Interest Period as the London interbank offered
rate for U.S. Dollars for

 

- 18 -

 

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

	 	 	 	 	 
	 

	 	 	 	London interbank offered rates quoted by Bloomberg
	LIBOR Rate

	 	=
	 	or appropriate successor as shown on Bloomberg Page BBAM1
	 

	 	 	 	       1.00 — LIBOR Reserve Percentage

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

LIBOR Rate Option shall mean the option of the Domestic Borrowers to have Loans bear
interest at the rate and under the terms set forth in Section 3.1.1(ii) [Revolving Credit
LIBOR Rate Option].

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

Lien shall mean any mortgage, deed of trust, pledge, lien, security interest, charge
or other encumbrance or security arrangement of any nature whatsoever, and, with respect to the
Canadian Borrower, also includes any prior claim or deemed trust in, on or of such asset, whether
voluntarily or involuntarily given, including any conditional sale or title retention arrangement,
and any assignment, deposit arrangement or lease intended as, or having the effect of, security and
any filed financing statement or other notice of any of the foregoing (whether or not a lien or
other encumbrance is created or exists at the time of the filing).

Liquidation Percentage shall mean, for any Lender, a fraction, the numerator of which
is such Lender’s Revolving Credit Commitment (including its Canadian Commitment) on the
Determination Date and the denominator of which is the total Revolving Credit Commitments
(including Canadian Commitments) of all Lenders on the Determination Date.

Loan Documents shall mean this Agreement, the Fee Letter, the Collateral Assignment,
the Guaranty Agreement, the Intercompany Subordination Agreement, the Notes, the Blocked Account
Agreements, the Security Agreement, the General Security Agreement, the Simplified Borrowing Base
Certificates, the Borrowing Base Certificates, the Compliance Certificates and any other
instruments, certificates or documents delivered in connection herewith or therewith.

 

- 19 -

 

Loan Parties shall mean the Borrowers and the Guarantors.

Loan Party Equity Interests shall have the meaning specified in Section 5.1.2
[Subsidiaries and Owners; Investment Companies].

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

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

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

Minimum Cash Requirement shall mean, as of any date of determination, cash and cash
equivalents, and other short-term investments (as determined in accordance with GAAP), of not less
than $125,000,000.

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

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

Net Proceeds shall mean:

(a) with respect to any sale of assets by any Loan Party or any of its Subsidiaries, or any
casualty or other insured damage to, or any taking under power of eminent domain or by condemnation
or similar proceeding of (and payments in lieu thereof), any property or asset of any Loan Party
or any of its Subsidiaries, the excess, if any, of (i) the sum of cash and cash equivalents
received in connection with such transaction (including any cash or cash equivalents received by
way of deferred payment pursuant to, or by monetization of, a note receivable or

 

- 20 -

 

otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of
any Indebtedness that is secured by the applicable asset by a Lien permitted hereunder which is
senior to the Administrative Agent’s Lien on such asset and that is required to be repaid (or to
establish an escrow for the future repayment thereof) in connection with such transaction (other
than Indebtedness under the Loan Documents), plus (B) taxes paid or payable in connection
therewith, provided that after the occurrence of a Trigger Event Election or an Event of Default,
such taxes shall not reduce the amounts constituting Net Proceeds, plus (C) the reasonable
and customary out-of-pocket expenses incurred by such Loan Party or such Subsidiary in connection
with such transaction (including, without limitation, appraisals, and brokerage, legal, title and
recording or transfer tax expenses and commissions) paid by any Loan Party to third parties (other
than Affiliates)); and

(b) with respect to the incurrence or issuance of any Indebtedness by any Loan Party or any of
its Subsidiaries, the excess of (i) the sum of the cash and cash equivalents received in connection
with such transaction over (ii) the underwriting discounts and commissions, and other reasonable
and customary out-of-pocket expenses, incurred by such Loan Party or such Subsidiary (other than to
an Affiliate) in connection therewith.

New Lender shall have the meaning specified in Section 2.10.1 [Increasing
Lenders and New Lenders].

NOLV shall have the meaning specified in the definition of “Borrowing Base” or
“Canadian Borrowing Base”, as applicable.

Non-Consenting Lender shall have the meaning specified in Section 10.1
[Modifications, Amendments or Waivers].

Non-Extension Notice Date shall have the meaning specified in Section 2.9.1
[Issuance of Letters of Credit].

Notes shall mean, collectively, the promissory notes in the form of Exhibit
1.1(N)(1) (or, with respect to the Canadian Borrower, in such other form as is reasonably
acceptable to the Administrative Agent) evidencing the Revolving Credit Loans, and in the form of
Exhibit 1.1(N)(2) evidencing the Swing Loan.

Obligation shall mean any obligation or liability of any of the Loan Parties,
howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due, under or in connection with (i) this Agreement, the
Notes, the Letters of Credit, the Fee Letter or any other Loan Document whether to the
Administrative Agent, any of the Lenders or their Affiliates provided for under such Loan Documents
(including all interest, fees, expenses, indemnities and other amounts that accrue after the
commencement of any case or proceeding by or against any Domestic Borrower or any of its
Subsidiaries under the Bankruptcy Code, whether or not allowed in such case or proceeding), (ii)
any Lender Provided Interest Rate Hedge, and (iii) any Other Lender Provided Financial Service
Product. Without limiting the foregoing, for purposes of clarity, whenever used herein the term
“Obligations” shall include all Canadian Liabilities.

 

- 21 -

 

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

Overadvance shall mean the making of a Loan or the issuing of a Letter of Credit to
the extent that, immediately after such event, Revolving Credit Availability is less than zero, or,
with respect to the Canadian Borrower, Canadian Availability is less than zero.

Other Lender Provided Financial Service Product shall mean agreements or other
arrangements under which any Lender or Affiliate of a Lender provides any of the following products
or services to any of the Loan Parties: (i) (a) credit cards, (b) credit card processing services,
(c) debit cards, (d) purchase cards, (e) ACH transactions, (f) cash management, including
controlled disbursement, accounts or services, (g) foreign currency exchange, or (h) such other
similar agreements or arrangements as, with respect to this clause (h), are mutually agreed by the
Administrative Agent and DSW, and (ii) following the occurrence of a Trigger Event Election or an
Event of Default, wire transfer services.

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

Order shall have the meaning specified in Section 2.9.9 [Liability for Acts
and Omissions].

Participant has the meaning specified in Section 10.8.4 [Participations].

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

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

Payment In Full shall mean the indefeasible payment in full in cash of the Loans and
other Obligations hereunder, termination of the Commitments and expiration or termination of all
Letters of Credit (or with respect to any undrawn Letters of Credit, the full Cash
Collateralization thereof or the supporting thereof by another letter of credit from an issuing
bank and on terms reasonably satisfactory to the Issuing Lender and the Administrative Agent).

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

Pension Plan shall mean any “employee pension benefit plan” (as such term is defined
in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA
and is sponsored or maintained any Borrower or any ERISA Affiliate or to which any

 

- 22 -

 

Borrower or any ERISA Affiliate contributes or has an obligation to contribute, or in the case
of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions
at any times during the immediately preceding five plan years.

Permitted Acquisition shall mean (a) the Acquisition described in a certain
confidential side letter of even date herewith, or (b) an Acquisition in which all of the following
conditions are satisfied:

(i) No Event of Default or Potential Default then exists or would arise from the consummation
of such Acquisition;

(ii) Such Acquisition shall have been approved by the Board of Directors of the Person (or
similar governing body if such Person is not a corporation) which is the subject of such
Acquisition and such Person shall not have announced that it will oppose such Acquisition or shall
not have commenced any action which alleges that such Acquisition shall violate applicable Law;

(iii) The Borrowers shall have furnished the Administrative Agent with ten (10) Business Days’
prior written notice of such intended Acquisition and shall have furnished the Administrative Agent
with a current draft of the Acquisition Documents (and final copies thereof as and when executed),
a summary of any due diligence undertaken by the Loan Parties in connection with such Acquisition,
appropriate financial statements of the Person which is the subject of such Acquisition, pro forma
projected financial statements for the twelve (12) month period following such Acquisition after
giving effect to such Acquisition (including balance sheets, cash flows and income statements by
month for the acquired Person, individually, and on a consolidated basis with all Loan Parties),
and such other information as the Administrative Agent may reasonably require, all of which shall
be reasonably satisfactory to the Administrative Agent;

(iv) Either (i) the legal structure of the Acquisition shall be reasonably acceptable to the
Administrative Agent in its discretion, or (ii) the Loan Parties shall have provided the
Administrative Agent with a favorable solvency opinion from an unaffiliated third party valuation
firm reasonably satisfactory to the Administrative Agent;

(v) After giving effect to the Acquisition, if the Acquisition is an Acquisition of equity
interests, a Loan Party shall acquire and own, directly or indirectly, a majority of the equity
interests in the Person being acquired and shall control a majority of any voting interests or
shall otherwise control the governance of the Person being acquired;

(vi) Any assets acquired shall be utilized in, and if the Acquisition involves a merger,
consolidation, amalgamation or stock acquisition, the Person which is the subject of such
Acquisition shall be engaged in, a business otherwise permitted to be engaged in by a Loan Party
under this Agreement;

(vii) If the Person which is the subject of such Acquisition will be maintained as a
Subsidiary of a Loan Party, or if the assets acquired in an Acquisition will be transferred to a
Subsidiary which is not then a Loan Party, such Subsidiary shall have been joined as a Borrower

 

- 23 -

 

or as a Guarantor hereunder, as the Administrative Agent shall determine, and the
Administrative Agent shall have received a first priority security and/or mortgage interest in such
Subsidiary’s equity interests and property of such Subsidiary and of the same nature as constitutes
Collateral under the Collateral Documents; and

(viii) unless the Domestic Borrowers shall have on hand the Minimum Cash Requirement
immediately prior to and after giving effect to such Acquisition and no Trigger Event Election
shall have occurred, (A) the total consideration paid for all such Acquisitions (whether in cash,
tangible property, notes or other property) shall not exceed in the aggregate the sum of
$25,000,000 in any fiscal year, and (B) Revolving Credit Availability immediately prior to, and
after giving effect to, such Acquisition is greater than $50,000,000, or such Acquisition shall
have been approved in writing by the Required Lenders.

Permitted Investments shall mean any Investment that is permitted by DSW’s investment
policy as in effect on the Closing Date or as thereafter modified with the consent of the Required
Lenders (such consent not to be unreasonably withheld or delayed); provided that in no
event shall any auction rate securities constitute a Permitted Investment hereunder;
provided further that (a) Permitted Investments consisting of (i) corporate bonds
may not exceed twenty-five percent (25%) of all Permitted Investments, (ii) preferred stock shall
not exceed $10,000,000 in the aggregate outstanding at any time, and (iii) corporate owned life
insurance policies shall not exceed $5,000,000 in the aggregate outstanding at any time.

Permitted Liens shall mean:

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

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

(iii) Statutory Liens of mechanics, materialmen, warehousemen, carriers, or other like Liens,
securing obligations incurred in the ordinary course of business that are not yet due and payable,
Liens of customs brokers, freight forwarders and common carriers incurred in the ordinary course of
business that are not overdue and which attach solely to the property in their possession, and
Liens of landlords securing obligations to pay lease payments that are not yet due and payable or
in default;

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

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

 

- 24 -

 

(vi) Liens, security interests and mortgages in favor of the Administrative Agent for the
benefit of the Lenders and their Affiliates securing the Obligations and/or the Canadian
Liabilities (including Lender Provided Interest Rate Hedges and Other Lender Provided Financial
Services Obligations);

(vii) Liens on property leased by any Loan Party or Subsidiary of a Loan Party under Capital
Leases and operating leases permitted in Section 7.2.14 [Capital Expenditures] securing
obligations of such Loan Party or Subsidiary to the lessor under such leases;

(viii) Any Lien existing on the date of this Agreement and described on Schedule
1.1(P), provided that the principal amount secured thereby is not hereafter increased,
and no additional assets become subject to such Lien;

(ix) Purchase Money Security Interests and Capital Leases; provided that the aggregate
amount of loans and deferred payments secured by such Purchase Money Security Interests and Capital
Leases shall not exceed $20,000,000 at any time outstanding (excluding for the purpose of this
computation any loans or deferred payments secured by Liens described on Schedule 1.1(P));

(x) Liens on unearned insurance premiums in connection with insurance premium financing in the
ordinary course of business;

(xi) Liens in favor of landlords on leasehold improvements financed by allowances or advances
provided by such landlords pursuant to lease arrangements;

(xii) Liens in favor of consignors on (A) inventory consigned by such consignors to a Loan
Party, and (B) proceeds of such inventory; and

(xiii) The following, (A) if the validity or amount thereof is being contested in good faith
by appropriate and lawful proceedings diligently conducted so long as levy and execution thereon
have been stayed and continue to be stayed or (B) if a final judgment is entered and such judgment
is discharged within forty-five (45) days of entry, and in either case they do not affect the
Collateral or, in the aggregate, materially impair the ability of any Loan Party to perform the
Obligations (or with respect to the Canadian Borrower, the Canadian Liabilities) hereunder or under
the other Loan Documents:

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

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

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

 

- 25 -

 

(4) Liens resulting from final judgments or orders described in Section 8.1.6 [Final
Judgments or Orders].

Permitted Overadvance shall mean an Overadvance made by the Administrative Agent in
its discretion following the occurrence of a Trigger Event Election or an Event of Default, which:

(a) Is made to maintain, protect or preserve the Collateral and/or the Administrative Agent’s,
the Lenders’ and the Issuing Lender’s rights under the Loan Documents, including to preserve the
Loan Parties’ business assets and infrastructure (such as the payment of insurance premiums, taxes,
necessary suppliers, rent and payroll);

(b) Is made to fund an orderly liquidation or wind-down of the Loan Parties’ assets or
business in a bankruptcy or another insolvency proceeding (whether or not occurring prior to or
after the commencement of such a bankruptcy or insolvency proceeding);

(c) Is made to enhance the likelihood of, or to maximize the amount of, repayment of any
Obligation;

(d) Is made to pay any other amount chargeable to any Loan Party hereunder; or

(e) Is otherwise made for the benefit of the Administrative Agent, the Lenders and the Issuing
Lender, collectively; and

(f) Together with all other Permitted Overadvances then outstanding, shall not (i) exceed five
percent (5%) of the Borrowing Base or the Canadian Borrowing Base, as applicable, at any time or
(ii) unless a Liquidation is occurring, remain outstanding for more than forty-five (45)
consecutive Business Days, unless in each case, the Required Lenders otherwise agree,

provided however, that the foregoing shall not (i) modify or abrogate any of the
provisions of Section 2.9.3 regarding the Lenders’ obligations with respect to Letters of
Credit or of the provisions of Section 2.6.5 regarding the Lenders’ obligations with
respect to Swing Loans, or (ii) result in any claim or liability against the Administrative Agent
(regardless of the amount of any Overadvance) for Unintentional Overadvances, and such
Unintentional Overadvances shall not reduce the amount of Permitted Overadvances allowed hereunder,
and further provided that in no event shall the Administrative Agent make an Overadvance, if after
giving effect thereto, (i) the Revolving Facility Usage would exceed the Revolving Credit
Commitments (as in effect prior to any termination of the Commitments pursuant to Section
2.11 [Reduction of Revolving Credit Commitment]), or (ii) with respect to the Canadian
Borrower, the Revolving Facility Usage of the Canadian Borrower would exceed the Canadian
Commitments (in each case as in effect prior to any termination of the Commitments pursuant to
Section 2.11 [Reduction of Revolving Credit Commitment]).

Permitted Short Term Loans shall have the meaning specified in Section 2.4.2
[Permitted Short Term Loans].

 

- 26 -

 

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

Plan shall mean at any time (a) an employee pension benefit plan (including a Multiple
Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of ERISA or is subject to
the minimum funding standards under Section 412 of the Code and either (i) is maintained by any
member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time
within the preceding five years been maintained by any entity which was at such time a member of
the ERISA Group for employees of any entity which was at such time a member of the ERISA Group or
(b) in respect of the Canadian Borrower, any pension benefit or retirement savings plan maintained
by the Canadian Borrower and its Subsidiaries for its employees or its former employees to which
the Canadian Borrower or any of its Subsidiaries contribute or are required to contribute with
respect to which the Canadian Borrower or any of its Subsidiaries has incurred or may incur
liability, including contingent liability.

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

PNC Canada shall mean PNC Bank Canada Branch, its successors and assigns.

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

PPSA shall mean the Personal Property Security Act of Ontario (or any successor
statute) or similar legislation of any other Canadian jurisdiction, including, without limitation,
the Civil Code of Quebec, the laws of which are required by such legislation to be applied in
connection with the issue, perfection, enforcement, opposability, priority, validity or effect of
security interests.

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

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

Prior Security Interest shall mean a valid and enforceable perfected first-priority
security interest under the UCC or PPSA, as applicable, in the Collateral which is subject only to
statutory Liens for taxes not yet due and payable, Purchase Money Security Interests or other
Permitted Liens having priority by operation of Law.

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

 

- 27 -

 

interbank deposit market for a one month period as published in another publication selected
by the Administrative Agent).

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

Qualified Credit Card Receivables shall have the meaning specified in Schedule
1.1(c).

Qualified Inventory shall have the meaning specified in Schedule 1.1(d).

Ratable Share shall mean (a) with respect to the Canadian Lenders, the proportion that
a Lender’s Canadian Commitment bears to the Canadian Commitments of all of the Canadian Lenders,
provided that if the Canadian Commitments have terminated or expired, the Ratable Shares
shall be determined based upon the Canadian Commitments most recently in effect, giving effect to
any assignments, (b) with respect to the Lenders (other than the Canadian Lenders), the proportion
that a Lender’s Commitment (excluding its Canadian Commitment and Swing Loan Commitment) bears to
the Commitments (excluding its Canadian Commitment and Swing Loan Commitment) of all of the Lenders
(other than the Canadian Lenders), provided further that if the Commitments have terminated
or expired, the Ratable Shares shall be determined based upon the Commitments (excluding the
Canadian Commitment and Swing Loan Commitment) most recently in effect, giving effect to any
assignments, and (c) with respect to all Lenders, the proportion that a Lender’s Commitment
(excluding the Swing Loan Commitment) bears to the Commitments (excluding the Swing Loan
Commitment) of all of the Lenders; and further provided that if the Commitments have
terminated or expired, the Ratable Shares shall be determined based upon the Commitments (excluding
the Swing Loan Commitment) most recently in effect, giving effect to any assignments.

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

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

Relief Proceeding shall mean any proceeding seeking a decree or order for relief in
respect of any Loan Party or Subsidiary of a Loan Party in a voluntary or involuntary case under
any applicable bankruptcy, insolvency, reorganization or other similar law now or hereafter in
effect (including, without limitation, the Bankruptcy Code), or for the appointment of a receiver,
monitor, interim monitor, liquidator, assignee, custodian, trustee, sequestrator, conservator (or
similar official) of any Loan Party or Subsidiary of a Loan Party for any substantial part of its
property, or for the winding-up or liquidation of its affairs, or an assignment for the benefit of
its creditors.

Required Lenders shall mean

 

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

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

Required Share shall have the meaning specified in Section 4.11 [Settlement
Date Procedures].

Revolving Credit Availability shall mean, as of any date of determination thereof by
the Administrative Agent with respect to the Domestic Borrowers, the result, if a positive number,
of (a) the lesser of (i) the Revolving Credit Commitments, or (ii) (A) until the occurrence of a
Borrowing Base Trigger Event, the Simplified Borrowing Base, or (B) thereafter, the Borrowing Base,
minus (b) the Revolving Facility Usage, minus (c) the aggregate amount of all then
outstanding and unpaid trade payables and other obligations of Domestic Borrowers which are more
than sixty (60) days past due as of such time (it being understood that to the extent that the time
for payment of any such trade payables and other obligations has been extended in writing by the
applicable creditor, such trade payables and other obligations shall not be deemed to be past due
until the extended date for payment has passed). In calculating Revolving Credit Availability at
any time and for any purpose under this Agreement, the Borrowers shall certify to the
Administrative Agent that all accounts payable and taxes are being paid on a timely basis.

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

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

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

Security Agreement shall mean the Security Agreement in substantially the form of
Exhibit 1.1(S) executed and delivered by each of the Loan Parties to the Administrative
Agent for the benefit of the Lenders.

Settlement Date shall mean each Business Day on which the Administrative Agent elects
to effect settlement pursuant Section 4.11 [Settlement Date Procedures].

 

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Simplified Borrowing Base shall mean at any time the sum of (i) sixty percent (60%) of
the Financial Statement Accounts, plus (ii) fifty percent (50%) of the Financial Statement
Inventory, in each case determined in accordance with GAAP.

Simplified Borrowing Base Certificate shall have the meaning specified in Section
7.3.4(i) [Simplified Borrowing Base Certificates; Borrowing Base Certificates].

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

Standby Letter of Credit shall mean a Letter of Credit issued to support obligations
of one or more of the Loan Parties, contingent or otherwise, which finance the working capital and
business needs of the Loan Parties incurred in the ordinary course of business.

Statements shall have the meaning specified in Section 5.1.6(i)
[Historical Statements].

Subordinated Indebtedness shall mean Indebtedness which is expressly subordinated in
right of payment to prior Payment In Full and which is in form and on terms approved in writing by
the Administrative Agent.

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

 

- 30 -

 

Subsidiary Equity Interests shall have the meaning specified in Section 5.1.2
[Subsidiaries and Owners; Investment Companies].

Substantial Liquidation shall mean either (a) the liquidation of substantially all of
the Collateral, or (b) the sale or other disposition of substantially all of the Collateral by the
Loan Parties.

Swing Loan Commitment shall mean PNC’s commitment to make Swing Loans to the Domestic
Borrowers pursuant to Section 2.1.2 [Swing Loan Commitment] hereof in an aggregate
principal amount up to $10,000,000.

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

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

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

Taryn Rose shall mean the investment by DSW in JLPDS-TRI LLC and its Subsidiaries.

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

Trigger Event shall mean any of the following events: (i) Revolving Credit
Availability is less than $50,000,000 (including Letter of Credit Outstandings), and (ii) the
making of a Loan (other than a Permitted Short Term Loan) hereunder. A Trigger Event shall be
deemed to be continuing at all times following the occurrence of a Trigger Event Election.

Trigger Event Election shall mean, with respect to any Trigger Event, the Required
Lenders’ election to cause the Borrowers to be subject to the Borrowing Base rather than the
Simplified Borrowing Base in accordance with Section 2.4.1 [Simplified Borrowing Base and
Borrowing Base].

Trigger Event Election Period shall have the meaning specified in Section
2.4.1 [Simplified Borrowing Base and Borrowing Base].

UCC shall mean the Uniform Commercial Code as in effect from time to time in the State
of Ohio; provided, however, that if a term is defined in Article 9 of the Uniform
Commercial Code differently than in another Article thereof, the term shall have the meaning set
forth in Article 9; provided further that, if by reason of mandatory provisions of law, perfection,
or the effect of perfection or non-perfection, of a security interest in any Collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect

 

- 31 -

 

in a jurisdiction other than the State of Ohio, “UCC” shall mean the Uniform
Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or non-perfection or availability of such
remedy, as the case may be.

UCP shall have the meaning specified in Section 10.11.1 [Governing Law].

Unintentional Overadvance shall mean an Overadvance which, to the Administrative
Agent’s knowledge, did not constitute an Overadvance when made but which has become an Overadvance
resulting from changed circumstances beyond the control of the Administrative Agent, the Lenders
and the Issuing Lender, including, without limitation, a reduction in the value of property or
assets included in the Borrowing Base or the Canadian Borrowing Base or misrepresentation by the
Loan Parties.

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

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

1.3 Accounting Principles. Except as otherwise provided in this Agreement, all
computations and determinations as to accounting or financial matters and all financial statements
to be delivered pursuant to this Agreement shall be made and prepared in accordance with GAAP
(including principles of consolidation where appropriate), and all accounting or financial terms
shall have the meanings ascribed to such terms by GAAP; provided, however, that all
accounting terms used in Section 7.2 [Negative Covenants] (and all defined terms used in
the definition of any accounting term used in Section 7.2 [Negative Covenants] shall have
the meaning given to such terms (and defined terms) under GAAP as in effect on the date hereof

 

- 32 -

 

applied on a basis consistent with those used in preparing Statements referred to in
Section 5.1.6(i) [Historical Statements]. In the event of any change after the date hereof
in GAAP, and if such change would affect the computation of any of the financial covenants set
forth in Section 7.2 [Negative Covenants], then the parties hereto agree to endeavor, in
good faith, to agree upon an amendment to this Agreement that would adjust such financial covenants
in a manner that would preserve the original intent thereof , provided that, until
so amended such financial covenants shall continue to be computed in accordance with GAAP prior to
such change therein.

2. REVOLVING CREDIT AND SWING LOAN FACILITIES

2.1 Revolving Credit Commitments.

2.1.1 Revolving Credit Loans. Subject to the terms and conditions hereof and relying
upon the representations and warranties herein set forth, each Domestic Lender severally agrees to
make Revolving Credit Loans to the Domestic Borrowers and each Canadian Lender severally agrees to
make Revolving Credit Loans to the Canadian Borrower at any time or from time to time on or after
the date hereof to the Expiration Date; provided that after giving effect to each such
Loan, (i) the aggregate amount of Revolving Credit Loans from such Lender shall not exceed such
Lender’s Revolving Credit Commitment or Canadian Commitment, as applicable, minus such Lender’s
Ratable Share of the outstanding Swing Loans and Letter of Credit Obligations, (ii) the Revolving
Facility Usage of the Domestic Borrowers shall not exceed (x) with respect to any such Loan other
than a Permitted Short Term Loan, the lesser of (a) the Revolving Credit Commitments, and (b) (1)
until the occurrence of a Borrowing Base Trigger Event, the Simplified Borrowing Base, or (2)
thereafter, the Borrowing Base, minus, in each case the Revolving Facility Usage of the
Canadian Borrower, or (y) with respect to any such Loan that is a Permitted Short Term Loan, the
Revolving Credit Commitments minus outstanding Letter of Credit Obligations, minus
the Revolving Facility Usage of the Canadian Borrower. Within such limits of time and amount and
subject to the other provisions of this Agreement, the Borrowers may borrow, repay and reborrow
pursuant to this Section 2.1, and (iii) the aggregate outstanding amount of the Revolving
Credit Loans to the Canadian Borrower shall not at any time exceed Canadian Availability.

2.1.2 Swing Loan Commitment. Subject to the terms and conditions hereof and relying
upon the representations and warranties herein set forth, and in order to facilitate loans and
repayments between Settlement Dates, PNC may, at its option, cancelable at any time for any reason
whatsoever, make swing loans (the “Swing Loans”) to the Domestic Borrowers at any time or from time
to time after the date hereof to, but not including, the Expiration Date, in an aggregate principal
amount up to but not in excess of $10,000,000 (the “Swing Loan Commitment”), provided that after
giving effect to such Loan, the Revolving Facility Usage shall not exceed the lesser of (a) the
Revolving Credit Commitments, and (b) (1) until the occurrence of a Borrowing Base Trigger Event,
the Simplified Borrowing Base, or (2) thereafter, the Borrowing Base, minus, in each case
the Revolving Facility Usage of the Canadian Borrower. Within such limits of time and amount and
subject to the other provisions of this Agreement, the Domestic Borrowers may borrow, repay and
reborrow pursuant to this Section 2.1.2. No Permitted Short Term Loan shall be a Swing
Loan hereunder.

 

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2.2 Nature of Lenders’ Obligations with Respect to Revolving Credit Loans; Permitted
Overadvances.

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

2.2.2 Permitted Overadvances. The Administrative Agent, the Lenders and Issuing
Lender shall have no obligation to make any Loan or to provide any Letter of Credit if an
Overadvance would result. The Administrative Agent may, in its discretion, make Permitted
Overadvances without the consent of the Borrowers, the Lenders and the Issuing Lender and the
Borrowers and each Lender shall be bound thereby. Any Permitted Overadvance (other than one made
with respect to the Canadian Borrower) may constitute a Swing Loan. A Permitted Overadvance is for
the account of the Borrowers and shall constitute a Revolving Credit Loan to which the Base Rate
Option (or, with respect to the Canadian Borrower, the Canadian Prime Rate Option) applies and an
Obligation and shall be repaid by the Domestic Borrowers or Canadian Borrower, as applicable, on
demand. The making of any such Permitted Overadvance on any one occasion shall not obligate the
Administrative Agent or any Lender to make or permit any Permitted Overadvance on any other
occasion or to permit such Permitted Overadvances to remain outstanding. The making by the
Administrative Agent of a Permitted Overadvance shall not modify or abrogate any of the provisions
of Section 2.9.3 regarding the Lenders’ obligations to purchase participations with respect
to Letter of Credits or of Section 2.6.5 regarding the Lenders’ obligations to purchase
participations with respect to Swing Loans. The Administrative Agent shall have no liability for,
and no Borrower, Lender or Issuing Bank shall have the right to, or shall, bring any claim of any
kind whatsoever against the Administrative Agent with respect to Unintentional Overadvances
regardless of the amount of any such Overadvance(s).

2.3 Commitment Fees. Accruing from the date hereof until the Expiration Date, the
Borrowers agree to pay to the Administrative Agent for the account of each Lender according to its
Ratable Share, a nonrefundable commitment fee (the “Commitment Fee”) equal to the Applicable
Commitment Fee Rate (computed on the basis of a year of 365 or 366 days, as the case may be, and
actual days elapsed) multiplied by the average daily difference between the amount of (i) with
respect to the Domestic Borrowers, (A) the Revolving Credit Commitments (for purposes of this
computation, PNC’s Swing Loans shall be deemed to be borrowed amounts under its Revolving Credit
Commitment) and (B) the Revolving Facility Usage of the Domestic Borrowers, and (ii) with respect
to the Canadian Borrower, (A) the Canadian Commitments and (B) the Revolving Facility Usage of the
Canadian Borrower; provided, however, that any Commitment Fee accrued with respect
to the Revolving Credit Commitment or Canadian Commitment of a Defaulting Lender during the period
prior to the time such Lender became a

 

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Defaulting Lender and unpaid at such time shall not be payable by the Borrowers so long as
such Lender shall be a Defaulting Lender except to the extent that such Commitment Fee shall
otherwise have been due and payable by the Borrowers prior to such time; and provided
further that no Commitment Fee shall accrue with respect to the Revolving Commitment or
Canadian Commitment of a Defaulting Lender so long as such Lender shall be a Defaulting Lender.
Subject to the proviso in the directly preceding sentence, all Commitment Fees shall be payable in
arrears on each Payment Date.

2.4 Simplified Borrowing Base and Borrowing Base; Permitted Short Term Loans.

2.4.1 Simplified Borrowing Base and Borrowing Base. From and after the Closing Date
until the occurrence of a Borrowing Base Trigger Event, the Domestic Borrowers and the Canadian
Borrower shall be subject to the Simplified Borrowing Base (as calculated for the Domestic
Borrowers or the Canadian Borrower, as applicable) rather than the Borrowing Base or the Canadian
Borrowing Base. From and after the occurrence of a Borrowing Base Trigger Event, until the
Expiration Date, the Domestic Borrowers shall be subject to the Borrowing Base and the Canadian
Borrower shall be subject to the Canadian Borrowing Base, as applicable, rather than the Simplified
Borrowing Base. With respect to each Borrowing Base Trigger Event, the Required Lenders may, in
their reasonable discretion, make a Trigger Event Election by notifying the Borrowers of such
Trigger Event Election within five (5) Business Days following the Lenders’ receipt of written
notice of the occurrence of such Borrowing Base Trigger Event (which notice the Administrative
Agent agrees to promptly furnish upon its obtaining knowledge thereof) (with respect to each
Borrowing Base Trigger Event, the period commencing on the date on which the Lenders receive such
notice and terminating on the earlier to occur of (i) a Trigger Event Election, or (ii) the
expiration of such five (5) Business Day period, is herein referred to as a “Trigger Event Election
Period”). The failure of the Required Lenders to provide a notice with respect to such Trigger
Event during the applicable Trigger Event Election Period shall constitute a waiver of the Required
Lenders’ right to make a Trigger Event Election with respect to such Trigger Event. No such waiver
shall affect the Required Lenders’ right to make a Trigger Event Election following the occurrence
of any other Trigger Event.

2.4.2 Permitted Short Term Loans. The Domestic Borrowers shall be permitted to
request, and the Lenders shall make, short term Revolving Credit Loans hereunder (each, a
“Permitted Short Term Loan”) in an amount not to exceed $25,000,000 (exclusive of Letter of Credit
Outstandings), provided that (i) immediately prior to and after giving effect to the making
of any such Permitted Short Term Loan, the Domestic Borrowers shall have on hand the Minimum Cash
Requirement, (ii) no Trigger Event Election, Potential Default or Event of Default shall have
occurred and be continuing or would result from the making of such Permitted Short Term Loan, (iii)
no Permitted Short Term Loan shall be outstanding for more than ten (10) consecutive Business Days
at any time and (iv) no Permitted Short Term Loan previously made in accordance with this Section
2.4.2 may continue to remain outstanding at any time where the Domestic Borrowers do not have on
hand the Minimum Cash Requirement. No more than two (2) Permitted Short Term Loans shall be
permitted during any fiscal year. Each Permitted Short Term Loan shall be a Revolving Credit Loan
to which the Base Rate Option applies.

2.5 Revolving Credit Loan Requests; Swing Loan Requests. 

 

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2.5.1 Revolving Credit Loan Requests. Except as otherwise provided herein, the
Borrowers may from time to time prior to the Expiration Date request the Lenders to make Revolving
Credit Loans, or renew or convert the Interest Rate Option applicable to existing Revolving Credit
Loans to Section 3.2 [Interest Periods], by delivering to the Administrative Agent, not
later than 1:00 p.m., (i) three (3) Business Days prior to the proposed Borrowing Date with respect
to the making of Revolving Credit Loans to which the LIBOR Rate Option or BA Rate Option applies or
the conversion to or the renewal of the LIBOR Rate Option or BA Rate Option for any Loans; and (ii)
the same Business Day of the proposed Borrowing Date with respect to the making of a Revolving
Credit Loan to which the Base Rate Option or the Canadian Prime Rate Option applies or the last day
of the preceding Interest Period with respect to the conversion to the Base Rate Option or the
Canadian Prime Rate Option for any Loan, of a duly completed request therefor substantially in the
form of Exhibit 2.5.1 (or, with respect to the Canadian Borrower, in such other form as is
reasonably acceptable to the Administrative Agent) or a request by telephone immediately confirmed
in writing by letter, facsimile or telex in such form (each, a “Loan Request”), it being understood
that the Administrative Agent may rely on the authority of any individual making such a telephonic
request without the necessity of receipt of such written confirmation. Each Loan Request shall be
irrevocable and shall specify the aggregate amount of the proposed Loans comprising each Borrowing
Tranche, and, if applicable, the Interest Period, which amounts shall be in (x) integral multiples
of $500,000 and not less than $1,000,000 for each Borrowing Tranche under the LIBOR Rate Option and
integral multiples of CD$500,000 and not less than CD$1,000,000 for each Borrowing Tranche under
the BA Rate Option, and (y) integral multiples of $100,000 and not less than $500,000 for each
Borrowing Tranche under the Base Rate Option or integral multiples of CD$100,000 and not less than
CD$500,000 for each Borrowing Tranche under the Canadian Prime Rate Option.

2.5.2 Swing Loan Requests. Except as otherwise provided herein, the Domestic Borrowers
may from time to time prior to the Expiration Date request PNC to make Swing Loans by delivery to
PNC not later than 1:00 p.m. on the proposed Borrowing Date of a duly completed request therefor
substantially in the form of Exhibit 2.5.2 hereto or a request by telephone immediately
confirmed in writing by letter, facsimile or telex (each, a “Swing Loan Request”), it being
understood that the Administrative Agent may rely on the authority of any individual making such a
telephonic request without the necessity of receipt of such written confirmation. Each Swing Loan
Request shall be irrevocable and shall specify the proposed Borrowing Date and the principal amount
of such Swing Loan, which shall be in integral multiples of $100,000.

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

2.6.1 Making Revolving Credit Loans. The Administrative Agent shall, promptly after
receipt by it of a Loan Request pursuant to Section 2.5 [Revolving Credit Loan Requests;
Swing Loan Requests], notify the applicable Lenders of its receipt of such Loan Request specifying
the information provided by the Borrowers and the apportionment among the Lenders of the requested
Revolving Credit Loans as reasonably determined by the Administrative Agent in accordance with
Section 2.2.1 [Nature of Lenders’ Obligations with Respect to Revolving Credit Loans].
Each Lender shall remit the principal amount of each

 

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Revolving Credit Loan to the Administrative Agent such that the Administrative Agent is able
to, and the Administrative Agent shall, to the extent the Lenders have made funds available to it
for such purpose and subject to Section 6.2 [Each Loan or Letter of Credit], fund such
Revolving Credit Loans to the Domestic Borrowers in U.S. Dollars and to the Canadian Borrower in
CD$ and immediately available funds at the Principal Office prior to 1:00 p.m., on the applicable
Borrowing Date; provided that if any Lender fails to remit such funds to the Administrative
Agent in a timely manner, the Administrative Agent may elect in its sole discretion to fund with
its own funds the Revolving Credit Loans of such Lender on such Borrowing Date, and such Lender
shall be subject to the repayment obligation in Section 2.6.2 [Presumptions by the
Administrative Agent].

2.6.2 Presumptions by the Administrative Agent. Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Loan that such Lender will not
make available to the Administrative Agent such Lender’s share of such Loan, the Administrative
Agent may assume that such Lender has made such share available on such date in accordance with
Section 2.6.1 [Making Revolving Credit Loans] and may, in reliance upon such assumption,
make available to the applicable Borrowers a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable Loan available to the Administrative Agent, then the
applicable Lender and the Domestic Borrowers or the Canadian Borrower, as applicable, severally
agree to pay to the Administrative Agent forthwith on demand such corresponding amount with
interest thereon, for each day from and including the date such amount is made available to the
Borrowers to but excluding the date of payment to the Administrative Agent, at (i) in the case of a
payment to be made by such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation (ii) in the case of a payment to be made by the Domestic Borrowers, the interest rate
applicable to Loans under the Base Rate Option, and (iii) in the case of a payment to be made by
the Canadian Borrower, the interest rate applicable to Loans under the Canadian Prime Rate Option
or the BA Rate Option, as applicable. If such Lender pays its share of the applicable Loan to the
Administrative Agent, then the amount so paid shall constitute such Lender’s Loan. Any payment by
the Borrowers shall be without prejudice to any claim any Borrower may have against a Lender that
shall have failed to make such payment to the Administrative Agent.

2.6.3 Making Swing Loans. So long as PNC elects to make Swing Loans, PNC shall, after
receipt by it of a Swing Loan Request pursuant to Section 2.5.2, [Swing Loan Requests] fund
such Swing Loan to the Domestic Borrowers in U.S. Dollars and immediately available funds at the
Principal Office prior to 4:00 p.m. on the Borrowing Date.

2.6.4 Repayment of Revolving Credit Loans. The Borrowers shall repay the Revolving
Credit Loans together with all outstanding interest thereon on the Expiration Date;
provided that the Domestic Borrowers shall repay each Permitted Short Term Loan together
with all outstanding interest thereon no later than the earlier to occur of (i) the tenth
(10th) Business Day following the Lenders’ making of such Permitted Short Term Loan, and
(ii) the first date on which the Domestic Borrowers shall not have on hand the Minimum Cash
Requirement following the Lenders’ making of such Permitted Short Term Loan.

2.6.5 Borrowings to Repay Swing Loans. PNC may, at its option, exercisable at any time
for any reason whatsoever, demand repayment of the Swing Loans, and each

 

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Domestic Lender shall make a Revolving Credit Loan in an amount equal to such Lender’s Ratable
Share of the aggregate principal amount of the outstanding Swing Loans, plus, if PNC so requests,
accrued interest thereon, provided that no Domestic Lender shall be obligated in any event
to make Revolving Credit Loans in excess of its unused Revolving Credit Commitment after deducting
therefrom its Ratable Share of Letter of Credit Obligations and other Revolving Credit Loans then
outstanding. Revolving Credit Loans made pursuant to the preceding sentence shall bear interest at
the Base Rate Option and shall be deemed to have been properly requested in accordance with
Section 2.5.1 [Revolving Credit Loan Requests] without regard to any of the requirements of
that provision. PNC shall provide notice to the Domestic Lenders (which may be telephonic or
written notice by letter, facsimile or telex) that such Revolving Credit Loans are to be made under
this Section 2.6.5 and of the apportionment among the Domestic Lenders, and the Domestic
Lenders shall be unconditionally obligated to fund such Revolving Credit Loans (whether or not the
conditions specified in Section 2.5.1 [Revolving Credit Loan Requests] are then satisfied)
by the time PNC so requests, which shall not be earlier than 1:00 p.m. on the Business Day next
after the date the Domestic Lenders receive such notice from PNC.

2.6.6 Trigger Event Election Period. Notwithstanding anything to the contrary, the
Borrowers shall not be permitted to request, and the Lenders shall not be obligated to make, any
Loans (including, without limitation, Permitted Short Term Loans and Swing Loans) during any
Trigger Event Election Period.

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

2.8 Use of Proceeds. The proceeds of the Loans shall be used to (i) refinance
Indebtedness of the Borrowers under the Existing Loan Agreement, (ii) pay fees and expenses
associated with the financing contemplated herein, (iii) finance any Permitted Acquisition, (iv)
provide for the ongoing working capital requirements and for other general corporate purposes of
the Borrowers, in the case of each of clauses (i), (ii), (iii) and (iv) to the extent permitted
hereunder.

2.9 Letter of Credit Subfacility. 

2.9.1 Issuance of Letters of Credit. Borrowers may at any time prior to the
Expiration Date request the issuance of a Standby Letter of Credit or a Commercial Letter of Credit
(each, a “Letter of Credit”) on behalf of itself or, with respect to the Domestic Borrowers only,
another Loan Party, or the amendment or extension of an existing Letter of Credit, by delivering or
having such other Loan Party deliver to the Issuing Lender (with a copy to the Administrative
Agent) a completed application and agreement for letters of credit, or request for such amendment
or extension, as applicable, in such form as the Issuing Lender may specify from time to time by no
later than 1:00 p.m. at least two (2) Business Days, or such shorter period as may be agreed to by
the Issuing Lender, in advance of the proposed date of issuance. Promptly after receipt of any
letter of credit application, the Issuing Lender shall confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has received

 

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a copy of such Letter of Credit application and if not, the Issuing Lender will provide
Administrative Agent with a copy thereof. Unless the Issuing Lender has received notice from any
Lender, Administrative Agent or any Loan Party, at least one day prior to the requested date of
issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable
conditions in Section 6 [Conditions of Lending and Issuance of Letters of Credit] is not
satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of
the other Lenders set forth in this Section 2.9, the Issuing Lender or any of the Issuing
Lender’s Affiliates will issue a Letter of Credit or agree to such amendment or extension;
provided that each Letter of Credit shall (A) have a maximum maturity of twelve (12) months
from the date of issuance, and (B) in no event expire later than the date which is 364 days after
the Expiration Date; and provided further that in no event shall (i) the Letter of Credit
Obligations exceed, at any one time, $50,000,000 (the “Letter of Credit Sublimit”) or (ii) the
Revolving Facility Usage of the Domestic Borrowers exceed, at any one time, the lesser of (a) the
Revolving Credit Commitments, and (b) (i) until the occurrence of a Borrowing Base Trigger Event,
the Simplified Borrowing Base of the Domestic Borrowers, or (ii) thereafter, the Borrowing Base, or
(iii) the Revolving Facility Usage by the Canadian Borrower exceed, at any one time, the lesser of
(a) the Canadian Commitments, and (b) (i) until the occurrence of a Borrowing Base Trigger Event,
the Simplified Borrowing Base of the Canadian Borrower, or (ii) thereafter, the Canadian Borrowing
Base. Each request by the Borrowers for the issuance, amendment or extension of a Letter of Credit
shall be deemed to be a representation by the Borrowers that the Borrowers shall be in compliance
with the preceding sentence and with Section 6 [Conditions of Lending and Issuance of
Letters of Credit] after giving effect to the requested issuance, amendment or extension of such
Letter of Credit. Promptly after its delivery of any Letter of Credit or any amendment to a Letter
of Credit to the beneficiary thereof, the Issuing Lender will also deliver to Borrowers and
Administrative Agent a true and complete copy of such Letter of Credit or amendment. The
Borrowers, the Administrative Agent, the Lenders and the Issuing Lender agree that the Existing
Letters of Credit shall be deemed Letters of Credit hereunder as if issued by an Issuing Lender.

If the Borrowers so request in any applicable application for a Letter of Credit, the Issuing
Lender may, in its reasonable discretion, agree to issue a Standby Letter of Credit that has
automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that
any such Auto-Extension Letter of Credit must permit the Issuing Lender to prevent any such
extension at least once in each twelve-month period (commencing with the date of issuance of such
Standby Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day
(the “Non-Extension Notice Date” ) in each such twelve-month period to be agreed upon at the time
such Standby Letter of Credit is issued. Unless otherwise directed by the Issuing Lender, the
Borrowers shall not be required to make a specific request to the Issuing Lender for any such
extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to
have authorized (but may not require) the Issuing Lender to permit the extension of such Standby
Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date;
provided, however, that the Issuing Lender shall not permit any such extension if
(A) the Issuing Lender has determined that it would not be permitted, or would have no obligation,
at such time to issue such Standby Letter of Credit in its revised form (as extended) under the
terms hereof, or (B) it has received notice (which may be by telephone or in writing) on or before
the day that is five (5) Business Days before the Non-Extension Notice Date (1) from the
Administrative Agent that the Required Lenders have elected not to permit such

 

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extension or (2) from the Administrative Agent, any Lender or the Borrowers that one or more
of the applicable conditions specified in Section 6.2 [Each Loan or Letter of Credit] is
not then satisfied, and in each such case directing the Issuing Lender not to permit such
extension.

Notwithstanding any other provision hereof, the Issuing Lender shall not be required to issue
any Letter of Credit, if (a) any Lender is at such time a Defaulting Lender or a Deteriorating
Lender hereunder, unless the Issuing Lender has entered into satisfactory arrangements with the
Borrowers or such Defaulting Lender or Deteriorating Lender to eliminate the Issuing Lender’s risk
with respect to such Defaulting Lender or Deteriorating Lender (it being understood that the
Issuing Lender shall consider the Borrowers or such Defaulting Lender or Deteriorating Lender
providing cash collateral to the Administrative Agent, for the benefit of the Issuing Lender, to
secure such Defaulting Lender’s or Deteriorating Lender’s Ratable Share of the Letter of Credit, a
satisfactory arrangement), or (b) any order, judgment or decree of any Official Body or arbitrator
shall by its terms purport to enjoin or restrain the Issuing Lender from issuing the Letter of
Credit, or any Law applicable to the Issuing Lender or any request or directive (whether or not
having the force of Law) from any Official Body with jurisdiction over the Issuing Lender shall
prohibit, or request that the Issuing Lender refrain from, the issuance of letters of credit
generally or the Letter of Credit in particular or shall impose upon the Issuing Lender with
respect to the Letter of Credit any restriction, reserve or capital requirement (for which the
Issuing Lender is not otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the Issuing Lender any unreimbursed loss, cost or expense which was not applicable on
the Closing Date and which the Issuing Lender in good faith deems material to it.

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

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

 

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Borrower and each drawing thereunder in an amount equal to such Lender’s Ratable Share of the
maximum amount available to be drawn under such Letter of Credit and the amount of such drawing,
respectively.

2.9.3.1 In the event of any request for a drawing under a Letter of Credit by the beneficiary
or transferee thereof, the Issuing Lender will promptly notify the applicable Borrowers and the
Administrative Agent thereof. Provided that it shall have received such notice, the applicable
Borrowers shall reimburse (such obligation to reimburse the Issuing Lender shall sometimes be
referred to as a “Reimbursement Obligation”) the Issuing Lender prior to 1:00 p.m. on each date
that an amount is paid by the Issuing Lender under any Letter of Credit (each such date, a “Drawing
Date”) by paying to the Administrative Agent for the account of the Issuing Lender an amount equal
to the amount so paid by the Issuing Lender. In the event the applicable Borrowers fail to
reimburse the Issuing Lender (through the Administrative Agent) for the full amount of any drawing
under any Letter of Credit by 1:00 p.m. on the Drawing Date, the Administrative Agent will promptly
notify each Domestic Lender and Canadian Lender thereof, as applicable, and the applicable
Borrowers shall be deemed to have requested that Revolving Credit Loans be made by the applicable
Lenders under the Base Rate Option or Canadian Prime Rate Option to be disbursed on the Drawing
Date under such Letter of Credit, subject to the amount of the unutilized portion of the Revolving
Credit Commitment and subject to the conditions set forth in Section 6.2 [Each Loan or
Letter of Credit] other than any notice requirements. Any notice given by the Administrative Agent
or the Issuing Lender pursuant to this Section 2.9.3.1 may be oral if immediately confirmed
in writing; provided that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

2.9.3.2 Each Domestic Lender or Canadian Lender, as applicable, shall upon any notice pursuant
to Section 2.9.3.1 make available to the Administrative Agent for the account of the
Issuing Lender an amount in immediately available funds equal to its Ratable Share of the amount of
the drawing, whereupon the participating Lenders shall (subject to Section 2.9.3
[Disbursement; Reimbursement]) each be deemed to have made a Revolving Credit Loan under the Base
Rate Option or Canadian Prime Rate Option to the applicable Borrowers in that amount. If any
Lender so notified fails to make available to the Administrative Agent for the account of the
Issuing Lender the amount of such Lender’s Ratable Share of such amount by no later than 1:00 p.m.
on the Drawing Date, then interest shall accrue on such Lender’s obligation to make such payment,
from the Drawing Date to the date on which such Lender makes such payment (i) at a rate per annum
equal to the Federal Funds Effective Rate during the first three (3) days following the Drawing
Date and (ii) at a rate per annum equal to the rate applicable to Loans under the Revolving Credit
Base Rate Option or Canadian Prime Rate Option, as applicable, on and after the fourth day
following the Drawing Date. The Administrative Agent and the Issuing Lender will promptly give
notice (as described in Section 2.9.3.1 above) of the occurrence of the Drawing Date, but
failure of the Administrative Agent or the Issuing Lender to give any such notice on the Drawing
Date or in sufficient time to enable any Lender to effect such payment on such date shall not
relieve such Lender from its obligation under this Section 2.9.3.2.

2.9.3.3 With respect to any unreimbursed drawing that is not converted into Revolving Credit
Loans under the Base Rate Option or Canadian Prime Rate Option to the

 

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applicable Borrowers in whole or in part as contemplated by Section 2.9.3.1, because
of the Borrowers’ failure to satisfy the conditions set forth in Section 6.2 [Each Loan or
Letter of Credit] other than any notice requirements, or for any other reason, the Borrowers shall
be deemed to have incurred from the Issuing Lender a borrowing (each a “Letter of Credit
Borrowing”) in the amount of such drawing. Such Letter of Credit Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the rate per annum applicable
to the Revolving Credit Loans under the Base Rate Option or Canadian Prime Rate Option, as
applicable. Each Lender’s payment to the Administrative Agent for the account of the Issuing
Lender pursuant to Section 2.9.3 [Disbursements, Reimbursement] shall be deemed to be a
payment in respect of its participation in such Letter of Credit Borrowing (each a “Participation
Advance”) from such Lender in satisfaction of its participation obligation under this Section
2.9.3.

2.9.4 Repayment of Participation Advances.

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

2.9.4.2 If the Administrative Agent is required at any time to return to any Loan Party, or to
a trustee, receiver, monitor, interim monitor, liquidator, custodian, or any official in any
Insolvency Proceeding, any portion of any payment made by any Loan Party to the Administrative
Agent for the account of the Issuing Lender pursuant to this Section in reimbursement of a payment
made under the Letter of Credit or interest or fee thereon, each Domestic Lender or Canadian
Lender, as applicable, shall, on demand of the Administrative Agent, forthwith return to the
Administrative Agent for the account of the Issuing Lender the amount of its Ratable Share of any
amounts so returned by the Administrative Agent plus interest thereon from the date such demand is
made to the date such amounts are returned by such Lender to the Administrative Agent, at a rate
per annum equal to the Federal Funds Effective Rate in effect from time to time.

2.9.5 Documentation. Each Loan Party agrees to be bound by the terms of the Issuing
Lender’s application and agreement for Letters of Credit and the Issuing Lender’s written
regulations and customary practices relating to Letters of Credit, though such interpretation may
be different from such Loan Party’s own. In the event of a conflict between such application or
agreement and this Agreement, this Agreement shall govern. It is understood and agreed that,
except in the case of gross negligence or willful misconduct (as determined by a final
non-appealable judgment of a court of competent jurisdiction), the Issuing Lender shall not be
liable for any error, negligence and/or mistakes, whether of omission or commission, in following
any

 

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Loan Party’s instructions or those contained in the Letters of Credit or any modifications,
amendments or supplements thereto.

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

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

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

(ii) the failure of any Loan Party or any other Person to comply, in connection with a Letter
of Credit Borrowing, with the conditions set forth in Section 2.1 [Revolving Credit
Commitments], Section 2.5 [Revolving Credit Loan Requests; Swing Loan Requests],
Section 2.6 [Making Revolving Credit Loans and Swing Loans; Etc.] or Section 6.2
[Each Loan or Letter of Credit] or as otherwise set forth in this Agreement for the making of a
Revolving Credit Loan, it being acknowledged that such conditions are not required for the making
of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances
under Section 2.9.3 [Disbursements, Reimbursement];

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

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

(v) the lack of power or authority of any signer of (or any defect in or forgery of any
signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy,
enforceability or genuineness of any draft, demand, instrument, certificate or other document
presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in

 

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connection with any Letter of Credit, or the transport of any property or provision of
services relating to a Letter of Credit, in each case even if the Issuing Lender or any of its
Affiliates has been notified thereof;

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

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

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

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

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

(xi) the occurrence or continuance of an Insolvency Proceeding with respect to any Loan Party;

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

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

(xiv) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing, other than circumstances described in clauses (A) or (B) of Section 2.9.8
[Indemnity].

2.9.8 Indemnity. Each Borrower hereby agrees to protect, indemnify, pay and save harmless
the Issuing Lender and any of its Affiliates that has issued a Letter of Credit from and against
any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments, losses,
costs, charges and expenses (including reasonable fees, expenses and disbursements of counsel and
allocated costs of internal counsel) which the Issuing Lender or any of its Affiliates may incur or
be subject to as a consequence, direct or indirect, of the issuance of any Letter of Credit, other
than as a result of (A) the gross negligence or willful misconduct of the Issuing Lender as
determined by a final non-appealable judgment of a court of competent jurisdiction or (B) the
wrongful dishonor by the Issuing Lender or any of Issuing

 

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Lender’s Affiliates of a proper demand for payment made under any Letter of Credit, except if such
dishonor resulted from any act or omission, whether rightful or wrongful, of any present or future
de jure or de facto government or Official Body. Notwithstanding anything to the contrary contained
herein, the Canadian Borrower’s obligation to pay and indemnify shall be limited to matters, fees,
expenses charges and disbursement, or losses, claims, damages and liabilities which the
Administrative Agent determines in its reasonable judgment to be properly attributable or allocable
to the Canadian Borrower.

2.9.9 Liability for Acts and Omissions As between any Loan Party and the Issuing Lender, or
the Issuing Lender’s Affiliates, such Loan Party assumes all risks of the acts and omissions of, or
misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In
furtherance and not in limitation of the foregoing, the Issuing Lender shall not be responsible for
any of the following, including any losses or damages to any Loan Party or other Person or property
relating therefrom: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of
any document submitted by any party in connection with the application for an issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged (even if the Issuing Lender or its Affiliates shall
have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective
for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other
party to which such Letter of Credit may be transferred, to comply fully with any conditions
required in order to draw upon such Letter of Credit or any other claim of any Loan Party against
any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among
any Loan Party and any beneficiary of any Letter of Credit or any such transferee; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable,
telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of
technical terms; (vi) any loss or delay in the transmission or otherwise of any document required
in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under
such Letter of Credit; or (viii) any consequences arising from causes beyond the control of the
Issuing Lender or its Affiliates, as applicable, including any act or omission of any Official
Body, and none of the above shall affect or impair, or prevent the vesting of, any of the Issuing
Lender’s or its Affiliates rights or powers hereunder. Nothing in the preceding sentence shall
relieve the Issuing Lender from liability for the Issuing Lender’s gross negligence or willful
misconduct (as determined by a final non-appealable judgment of a court of competent jurisdiction)
in connection with actions or omissions described in such clauses (i) through (viii) of such
sentence. In no event shall the Issuing Lender or its Affiliates be liable to any Loan Party for
any indirect, consequential, incidental, punitive, exemplary or special damages or expenses
(including without limitation attorneys’ fees), or for any damages resulting from any change in the
value of any property relating to a Letter of Credit.

Without limiting the generality of the foregoing, the Issuing Lender and each of its Affiliates (i)
may rely on any oral or other communication believed in good faith by the Issuing Lender or such
Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit,
(ii) may honor any presentation if the documents presented appear on their face

 

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substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may
honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was
pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,
and shall be entitled to reimbursement to the same extent as if such presentation had initially
been honored, together with any interest paid by the Issuing Lender or its Affiliate; (iv) may
honor any drawing that is payable upon presentation of a statement advising negotiation or payment,
upon receipt of such statement (even if such statement indicates that a draft or other document is
being delivered separately), and shall not be liable for any failure of any such draft or other
document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any
paying or negotiating bank claiming that it rightfully honored under the laws or practices of the
place where such bank is located; and (vi) may settle or adjust any claim or demand made on the
Issuing Lender or its Affiliate in any way related to any order issued at the applicant’s request
to an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar
document (each an “Order”) and honor any drawing in connection with any Letter of Credit that is
the subject of such Order, notwithstanding that any drafts or other documents presented in
connection with such Letter of Credit fail to conform in any way with such Letter of Credit.

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

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

2.9.11 Cash Collateral. Without limiting and in addition to the provisions of Section
8.2.1 [Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings], upon the
request of Administrative Agent, (i) if the Issuing Lender has honored any full or partial drawing
request under any Letter of Credit and such drawing has resulted in an Letter of Credit Borrowing,
or (ii) if, on the Expiration Date, any Letter of Credit Obligation for any reason remains
outstanding, the Domestic Borrowers or the Canadian Borrower, as applicable, shall, in each case,
immediately Cash Collateralize the then outstanding amount of all Letter of Credit Obligations.
The Borrowers hereby grant to the Administrative Agent, for the benefit of the Issuing Lender and
the Lenders, a security interest in all cash collateral pledged pursuant to this Section or
otherwise under this Agreement provided that any cash collateral of the Canadian
Borrower shall secure only the Canadian Liabilities.

2.10 Increase in Revolving Credit Commitments.

2.10.1 Increasing Lenders and New Lenders. The Domestic Borrowers may at any time request
that (1) the current Domestic Lenders increase their Revolving Credit

 

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Commitments (any current
Domestic Lender which elects to increase its Revolving Credit Commitment shall be referred to as an
“Increasing Lender”) or (2) one or more new lenders (each a “New Lender”) join this Agreement and
provide a Revolving Credit Commitment hereunder, subject to the following terms and conditions:

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

(ii) Minimum Increase Amount; Number of Requests. Each request for an increase in the
Revolving Credit Commitments shall be in an amount of not less than $25,000,000, and the Domestic
Borrowers may make not more than three (3) such requests from and after the Closing Date.

(iii) Maximum Amount of All Increases. The aggregate amount of all increases in the
Revolving Credit Commitments requested hereunder shall not exceed $75,000,000.

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

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

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

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

(viii) New Lenders — Joinder. Each New Lender shall execute a lender joinder in
substantially the form of Exhibit 2.10 pursuant to which such New Lender shall join and
become a party to this Agreement and the other Loan Documents with a Revolving Credit
Commitment in the amount set forth in such lender joinder.

 

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2.10.2 Repayment of Outstanding Loans; Borrowing of New Loans. On the effective date of
such increase, the Domestic Borrowers shall repay all Loans then outstanding, subject to the
Domestic Borrowers’ indemnity obligations under Section 4.10 [Indemnity]; provided
that it may borrow new Loans with a Borrowing Date on such date. Each of the Domestic Lenders shall
participate in any new Loans made on or after such date in accordance with their respective Ratable
Shares after giving effect to the increase in Revolving Credit Commitments contemplated by this
Section 2.10.

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

2.11
Reduction of Revolving Credit Commitment.

2.11.1 Revolving Credit
Commitments. The Domestic Borrowers shall have the right at any time after the Closing Date
upon five (5) days’ prior written notice to the Administrative Agent to permanently reduce (ratably
among the Domestic Lenders in proportion to their Ratable Shares) the Revolving Credit Commitments,
in whole multiples of $5,000,000, or to terminate completely the Revolving Credit Commitments,
without penalty or premium except as hereinafter set forth; provided that any such reduction or
termination shall be accompanied by prepayment of the Loans, together with outstanding Commitment
Fees, the full amount of interest accrued on the principal sum to be prepaid (and all amounts
referred to in Section 4.10 [Indemnity] hereof) to the extent necessary to cause the aggregate
Revolving Facility Usage after giving effect to such prepayments to be equal to or less than the
Revolving Credit Commitments as so reduced or terminated. Any notice to reduce or terminate the
Revolving Credit Commitments under this Section 2.11 shall be irrevocable.

2.11.2 Canadian Commitments. The Canadian Borrower shall have the right at any time
after the Closing Date upon five (5) days’ prior written notice to the Administrative Agent to
permanently reduce (ratably among the Canadian Lenders in proportion to their Ratable Shares) the
Canadian Commitments, in whole multiples of CD$5,000,000, or to terminate completely the Canadian
Commitments, without penalty or premium except as hereinafter set forth; provided that any such
reduction or termination shall be accompanied by prepayment of the Loans, together with outstanding
Commitment Fees, the full amount of interest accrued on the principal sum to be prepaid (and all
amounts referred to in Section 4.10 [Indemnity] hereof) to the extent necessary to cause the
aggregate Revolving Facility Usage of the Canadian Borrower after giving effect to such prepayments
to be equal to or less than the Canadian Commitments as so reduced or
terminated. Any notice to reduce or terminate the Canadian Commitments under this Section
2.11 shall be irrevocable.

2.11.3 Deemed Termination of Canadian Commitments. In the event that the Domestic
Borrowers terminate the Domestic Commitments, the Canadian Commitments shall be deemed to have also
been terminated, without any further action by the Domestic Borrowers or the Canadian Borrower.

 

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3. INTEREST RATES

3.1 Interest Rate Options. The Borrowers shall pay interest in respect of the
outstanding unpaid principal amount of the Loans as selected by it from the Base Rate Option, the
LIBOR Rate Option, the Canadian Prime Rate Option or the BA Rate Option set forth below applicable
to the Loans, it being understood that, subject to the provisions of this Agreement, the Borrowers
may select different Interest Rate Options and different Interest Periods to apply simultaneously
to the Loans comprising different Borrowing Tranches and may convert to or renew one or more
Interest Rate Options with respect to all or any portion of the Loans comprising any Borrowing
Tranche; provided that there shall not be at any one time outstanding more than six (6)
Borrowing Tranches in the aggregate among all of the Loans and
provided further that if an
Event of Default or Potential Default exists and is continuing, the Borrowers may not request,
convert to, or renew the LIBOR Rate Option or the BA Rate Option, as applicable, for any Loans and
the Required Lenders may demand that all existing Borrowing Tranches bearing interest under the
LIBOR Rate Option or the BA Rate Option, as applicable, shall be converted immediately to the Base
Rate Option or the Canadian Prime Rate Option, as applicable, subject to the obligation of the
Borrowers to pay any indemnity under Section 4.10 [Indemnity] in connection with such
conversion. If at any time the designated rate applicable to any Loan made by any Lender exceeds
such Lender’s highest lawful rate, the rate of interest on such Lender’s Loan shall be limited to
such Lender’s highest lawful rate.

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

(i) Revolving Credit Base Rate Option: With respect to Loans to the Domestic
Borrowers only, a fluctuating rate per annum (computed on the basis of a year of 365 or 366 days,
as the case may be, and actual days elapsed) equal to the Base Rate plus the Applicable Margin,
such interest rate to change automatically from time to time effective as of the effective date of
each change in the Base Rate;

(ii) Revolving Credit LIBOR Rate Option: With respect to Loans to the Domestic
Borrowers only, a rate per annum (computed on the basis of a year of 360 days and actual days
elapsed) equal to the LIBOR Rate plus the Applicable Margin;

(iii) Revolving Credit Canadian Prime Rate Option: With respect to Loans to the
Canadian Borrower only, a fluctuating rate per annum (computed on the basis of a year of 365 or 366
days, as the case may be, and actual days elapsed) equal to the Canadian Prime Rate
plus the Applicable Margin, such interest rate to change automatically from time to time
effective as of the effective date of each change in the Base Rate; or

(iv) Revolving Credit BA Rate Option: With respect to Loans to the Canadian Borrower
only, a rate per annum (computed on the basis of a year of 360 days and actual days elapsed) equal
to the BA Rate plus the Applicable Margin.

Subject to Section 3.3 [Interest and Fees After Default], only the Base Rate Option
applicable to Revolving Credit Loans shall apply to the Swing Loans.

 

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

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

3.2.1 Amount of Borrowing Tranche. Each Borrowing Tranche of Loans under the LIBOR
Rate Option shall be in integral multiples of $500,000 and not less than $1,000,000 and Each
Borrowing Tranche of Loans under the BARate Option shall be in integral multiples of CD$500,000 and
not less than CD$1,000,000; and

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

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

3.3.1 Letter of Credit Fees, Interest Rate. The Letter of Credit Fees and the rate of
interest for each Loan otherwise applicable pursuant to Section 2.9.2 [Letter of Credit
Fees] or Section 3.1 [Interest Rate Options], respectively, shall be increased by two
percent (2.0%) per annum;

3.3.2 Other Obligations. Each other Obligation hereunder (excluding Lender Provided
Interest Rate Hedges and Other Lender Provided Financial Service Products) if not paid when due
shall bear interest at a rate per annum equal to the sum of the rate of interest applicable under
the Revolving Credit Base Rate Option or the Canadian Prime Rate Option, as
applicable, plus an additional two percent (2.0%) per annum from the time such Obligation
becomes due and payable and until it is paid in full; and

3.3.3 Acknowledgment. Each Borrower acknowledges that the increase in rates referred
to in this Section 3.3 reflects, among other things, the fact that such Loans or other
amounts have become a substantially greater risk given their default status and that the Lenders
are entitled to additional compensation for such risk; and all such interest shall be payable by
Borrowers upon demand by Administrative Agent.

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

 

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

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

(ii) a contingency has occurred which materially and adversely affects the London interbank
eurodollar market relating to the LIBOR Rate,

then the Administrative Agent shall have the rights specified in Section 3.4.3
[Administrative Agent’s and Lenders’ Rights].

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

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

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

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

then the Administrative Agent shall have the rights specified in Section 3.4.3
[Administrative Agent’s and Lenders’ Rights].

3.4.3 Administrative Agent’s and Lenders’ Rights. In the case of any event specified
in Section 3.4.1 [Unascertainable] above, the Administrative Agent shall promptly so notify
the Lenders and the Borrowers thereof, and in the case of an event specified in Section
3.4.2 [Illegality; Increased Costs; Deposits Not Available] above, such Lender shall promptly
so notify the Administrative Agent and endorse a certificate to such notice as to the specific
circumstances of such notice, and the Administrative Agent shall promptly send copies of such
notice and certificate to the other Lenders and the Borrowers. Upon such date as shall be
specified in such notice (which shall not be earlier than the date such notice is given), the
obligation of (A) the Lenders, in the case of such notice given by the Administrative Agent, or (B)
such Lender, in the case of such notice given by such Lender, to allow the Borrowers to select,
convert to or renew a LIBOR Rate Option or a BA Rate Option shall be suspended until the
Administrative Agent shall have later notified the Borrowers, or such Lender shall have later
notified the Administrative Agent, of the Administrative Agent’s or such Lender’s, as the case may
be, determination that the circumstances giving rise to such previous determination no longer
exist. If at any time the Administrative Agent makes a determination under Section 3.4.1
[Unascertainable] and the Borrowers have previously notified the Administrative Agent of their

 

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selection of, conversion to or renewal of a LIBOR Rate Option or a BA Rate Option and such Interest
Rate Option has not yet gone into effect, such notification shall be deemed to provide for
selection of, conversion to or renewal of the Base Rate Option or the Canadian Prime Rate Option
otherwise available with respect to such Loans. If any Lender notifies the Administrative Agent of
a determination under Section 3.4.2 [Illegality; Increased Costs; Deposits Not Available],
the Borrowers shall, subject to the Borrowers’ indemnification Obligations under Section
4.10 [Indemnity], as to any Loan of the Lender to which a LIBOR Rate Option or a BA Rate Option
applies, on the date specified in such notice either convert such Loan to the Base Rate Option or
the Canadian Prime Rate Option otherwise available with respect to such Loan or prepay such Loan in
accordance with Section 4.6 [Voluntary Prepayments]. Absent due notice from the Borrowers
of conversion or prepayment, such Loan shall automatically be converted to the Base Rate Option or
the Canadian Prime Rate Option otherwise available with respect to such Loan upon such specified
date.

3.5 Selection of Interest Rate Options. If the Borrowers fail to select a new
Interest Period to apply to any Borrowing Tranche of Loans under the LIBOR Rate Option or the BA
Rate Option at the expiration of an existing Interest Period applicable to such Borrowing Tranche
in accordance with the provisions of Section 3.2 [Interest Periods], the Borrowers shall be
deemed to have converted such Borrowing Tranche to the Revolving Credit Base Rate Option or the
Canadian Prime Rate Option, as applicable, commencing upon the last day of the existing Interest
Period.

3.6 Interest Act (Canada). For the purposes of the Interest Act (Canada) and
disclosure thereunder, whenever interest to be paid hereunder is to be calculated on the basis of a
year of 360 days or any other period of time that is less than a calendar year, the yearly rate of
interest to which the rate determined pursuant to such calculation is equivalent is the rate so
determined multiplied by the actual number of days in the calendar year in which the same is to be
ascertained and divided by either 360 or such other period of time, as the case may be.
Calculations of interest shall be made using the nominal rate method of calculation, and will not
be calculated using the effective rate method of calculation or any other basis that gives effect
to the principle of deemed reinvestment of interest.

4. PAYMENTS

4.1 Payments. All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Administrative Fee or other fees or amounts due
from the Borrowers hereunder shall be payable prior to 1:00 p.m. on the date when due without
presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the
Borrowers, and without set-off, counterclaim or other deduction of any nature, and an action
therefor shall immediately accrue. Such payments shall be made to the Administrative Agent at its
Principal Office for the account of PNC with respect to the Swing Loans in U.S. Dollars and to the
Administrative Agent at the Principal Office for the ratable accounts of the
applicable Lenders
with respect to the Revolving Credit Loans in the currency in which such Revolving Credit Loans
were made, and in each case in immediately available funds, and the Administrative Agent shall
promptly distribute such amounts to the Lenders in immediately available funds; provided
that in the event payments are received by 1:00 p.m. by the Administrative Agent with respect to
the Loans and such payments are not distributed to the

 

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

4.2 Pro Rata Treatment of Lenders; Repayment of Advances.

4.2.1 Pro Rata Treatment of Lenders. Each borrowing of Revolving Credit Loans shall
be allocated to each Lender according to its Ratable Share, and each selection of, conversion to or
renewal of any Interest Rate Option and each payment or prepayment by the Borrowers with respect to
principal, interest, Commitment Fees, Letter of Credit Fees, or other fees (except for the
Administrative Fee and the Issuing Lender’s fronting fee) or amounts due from the Borrowers
hereunder to the Lenders with respect to the Commitments and Loans, shall (except as otherwise may
be provided with respect to a Defaulting Lender and except as provided in Section 3.4.3
[Administrative Agent’s and Lenders’ Rights] in the case of an event specified in Section
3.4 [LIBOR Rate Unascertainable; Etc.], Section 4.6.2 [Replacement of a Lender] or
Section 4.8 [Increased Costs]) be payable ratably among the Lenders entitled to such
payment in accordance with the amount of principal, interest, Commitment Fees, Letter of Credit
Fees, and other fees or amounts then due or payable such Lenders as set forth in this Agreement.
Notwithstanding any of the foregoing, each borrowing or payment or prepayment by the Borrowers of
principal, interest, fees or other amounts from the Borrowers with respect to Swing Loans shall be
made by or to PNC according to Section 2.6.5 [Borrowings to Repay Swing Loans].

4.2.2 Repayment of Advances. If the Administrative Agent is required at any time to
return to any Loan Party, or to a trustee, receiver, monitor, interim monitor, liquidator,
custodian, or any official in any Insolvency Proceeding, any portion of any payment made by any
Loan Party to the Administrative Agent for the account of any Lender pursuant to this Section, such
Lender shall, on demand of the Administrative Agent, forthwith return to the
Administrative Agent for the account of the Administrative Agent any amounts so returned by
the Administrative Agent plus interest thereon from the date such demand is made to the date such
amounts are returned by such Lender to the Administrative Agent, at a rate per annum equal to the
Federal Funds Effective Rate in effect from time to time.

4.3 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
setoff, counterclaim or banker’s lien, by receipt of voluntary payment, by realization upon
security, or by any other non-pro rata source, obtain payment in respect of any principal of or
interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving
payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other
such obligations greater than the pro-rata share of the amount such Lender is entitled thereto,
then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such
fact, and (b) purchase (for cash at face value) participations in the Loans and such other
obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the
benefit of all such payments shall be shared by the Lenders ratably in accordance with

 

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the aggregate amount of principal of and accrued interest on their respective Loans and other amounts
owing them, provided that:

(i) any amounts of the Canadian Borrower so offset shall be applied solely to the Canadian
Liabilities and any participations purchased by a Canadian Lender shall solely be participations in
the Canadian Liabilities of other Canadian Lenders;

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

(iii) the provisions of this Section 4.3 shall not be construed to apply to (x) any
payment made by the Borrowers pursuant to and in accordance with the express terms of the Loan
Documents or (y) any payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans or Participation Advances to any assignee or participant, other
than to any Loan Party or any Subsidiary thereof (as to which the provisions of this Section
4.3 shall apply).

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

Any Lender that fails at any time to comply with the provisions of this Section 4.3 shall
be deemed a Defaulting Lender until such time as it performs its obligations hereunder and is not
otherwise a Defaulting Lender for any other reason.

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

4.5 Interest Payment Dates. Interest on Loans to which the Base Rate Option or the
Canadian Prime Rate Option applies shall be due and payable in arrears on each Payment Date.
Interest on Loans to which the LIBOR Rate Option or the BA Rate Option applies shall be due and
payable on the last day of each Interest Period for those Loans and, if such Interest Period is

 

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longer than three (3) Months, also on the 90th day of such Interest Period. Interest on mandatory
prepayments of principal under Section 4.7 [Mandatory Prepayments] shall be due on the date
such mandatory prepayment is due. Interest on the principal amount of each Loan or other monetary
Obligation shall be due and payable on demand after such principal amount or other monetary
Obligation becomes due and payable (whether on the stated Expiration Date, upon acceleration or
otherwise).

4.6 Voluntary Prepayments.

4.6.1 Right to Prepay. The Borrowers shall have the right at their option from time
to time to prepay the Loans in whole or part without premium or penalty (except as provided in
Section 4.6.2 [Replacement of a Lender] below, in Section 4.8 [Increased Costs] and
Section 4.10 [Indemnity]). Whenever the Borrowers desire to prepay any part of the Loans,
they shall provide a prepayment notice to the Administrative Agent by 1:00 p.m. at least one (1)
Business Day prior to the date of prepayment of the Revolving Credit Loans or no later than 1:00
p.m. on the date of prepayment of Swing Loans, setting forth the following information:

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

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

(y) a statement indicating the application of the prepayment between Loans to
which the Base Rate Option or the Canadian Prime Rate Option, as applicable, applies
and Loans to which the LIBOR Rate Option or the BA Rate Option, as applicable,
applies; and

(z) the total principal amount of such prepayment, which shall not be less than
the lesser of (i) the Revolving Facility Usage or (ii) $100,000 for any Swing Loan
or $500,000 for any Revolving Credit Loan (or CD$500,000 for any Revolving Credit
Loan owing by the Canadian Borrower).

All prepayment notices shall be irrevocable. The principal amount of the Loans for which a
prepayment notice is given, together with interest on such principal amount except with respect to
Loans to which the Base Rate Option or Canadian Prime Rate Option, as applicable, applies, shall be
due and payable on the date specified in such prepayment notice as the date on which the proposed
prepayment is to be made. Except as provided in Section 3.4.3 [Administrative Agent’s and
Lenders’ Rights], if the Borrowers prepay a Loan but fail to specify the applicable Borrowing
Tranche which the Borrowers are prepaying, the prepayment shall be applied first to Loans to which
the Base Rate Option or the Canadian Prime Rate Option, as applicable, applies, then to Loans to
which the LIBOR Rate Option or the BA Rate Option, as applicable, applies. Any prepayment
hereunder shall be subject to the Borrowers’ Obligation to indemnify the Lenders under Section
4.10 [Indemnity].

4.6.2 Replacement of a Lender. In the event any Lender or the Issuing Lender (i)
gives notice under Section 3.4 [LIBOR Rate Unascertainable, Etc.], (ii) requests
compensation under Section 4.8 [Increased Costs], or requests that the Borrowers to pay any
additional amount to any Lender or Issuing Lender or any Official Body for the account of any
Lender or Issuing Lender pursuant to Section 4.9 [Taxes], (iii) is a Defaulting Lender or

 

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Deteriorating Lender, (iv) becomes subject to the control of an Official Body (other than normal
and customary supervision), or (v) is a Non-Consenting Lender referred to in Section 10.1
[Modifications, Amendments or Waivers], then in any such event the Borrowers may, at their sole
expense, upon notice to such Lender and the Administrative Agent, require such Lender or Issuing
Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in, and consents required by, Section 10.8 [Successors and Assigns]), all of its
interests, rights and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment), provided that:

(i) the Borrowers shall have paid to the Administrative Agent the assignment fee specified in
Section 10.8 [Successors and Assigns];

(ii) such Lender shall have received payment of an amount equal to the outstanding principal
of its Loans and Participation Advances, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Loan Documents (including any amounts under
Section 4.10 [Indemnity]) from the assignee (to the extent of such outstanding principal
and accrued interest and fees) or the Borrowers (in the case of all other amounts);

(iii) in the case of any such assignment resulting from a claim for compensation under
Section 4.8.1 [Increased Costs Generally] or payments required to be made pursuant to
Section 4.9 [Taxes], such assignment will result in a reduction in such compensation or
payments thereafter; and

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

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

4.7 Mandatory Prepayments.

4.7.1 Disposition of Assets; Indebtedness. Within five (5) Business Days of any sale
of assets in excess of $2,500,000 in the aggregate in any fiscal year [authorized] by Section
7.2.7(v) or Section 7.2.7(vi) [Disposition of Assets or Subsidiaries], the Borrowers
shall make a mandatory prepayment of principal on the Revolving Credit Loans equal to the Net
Proceeds of such sale, together with accrued interest on such principal amount; provided
that prior to the occurrence of an Event of Default or a Trigger Event Election, the Borrowers may,
in lieu of making such mandatory prepayment, utilize such Net Proceeds for purposes of replacing
the assets in respect of which such Net Proceeds were received within 180 days of the occurrence of
such sale. Within five (5) Business Days of any casualty or other insured damage to, or any taking
under power of eminent domain or by condemnation or similar proceeding of (and payments in lieu
thereof), any property or asset of any Loan Party, except as provided in Schedule 7.1.3,
the Borrowers shall make a mandatory prepayment of principal on the Revolving Credit Loans equal to
the Net Proceeds received by the Loan Parties in connection therewith, together with accrued
interest on such principal amount. Within five (5) Business Days of the incurrence by any Loan
Party of any Indebtedness other than Indebtedness described in Section

 

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7.2.1
[Indebtedness], the Borrowers shall make a mandatory prepayment of principal on the Revolving
Credit Loans equal to the Net Proceeds of such Indebtedness received by the Loan Parties, together
with accrued interest on such principal amount. All prepayments pursuant to this Section
4.7.1 shall not reduce the Revolving Credit Commitments hereunder. All prepayments pursuant to
this Section 4.7.1 made by the Canadian Borrower or its Subsidiaries shall be applied solely to the
Canadian Liabilities.

4.7.2 Borrowing Base Exceeded; Canadian Borrowing Base Exceeded. From and after the
occurrence of a Trigger Event Election or an Event of Default, whenever the Revolving Facility
Usage exceeds the lesser of (i) the Revolving Credit Commitments, and (ii) the Borrowing Base, the
Borrowers shall make, within one (1) Business Day after the Borrowers learn of such excess and
whether or not the Administrative Agent has given notice to such effect, a mandatory prepayment of
principal equal to the excess of the outstanding principal balance of the Revolving Credit Loans
over the Borrowing Base, together with accrued interest on such principal amount, and, if necessary
thereafter, Cash Collateralize the outstanding Letter of Credit Obligations in an aggregate amount
equal to such excess. From and after the occurrence of a Trigger Event Election or an Event of
Default, whenever the Revolving Facility Usage of the Canadian Borrower exceeds the lesser of (i)
the Canadian Commitments, and (ii) the Canadian Borrowing Base, the Canadian Borrower shall make,
within one (1) Business Day after the Canadian Borrower learns of such excess and whether or not
the Administrative Agent has given notice to such effect, a mandatory prepayment of principal equal
to the excess of the outstanding principal balance of the Revolving Credit Loans with respect to
the Canadian Borrower over the Canadian Borrowing Base, together with accrued interest on such
principal amount, and, if necessary thereafter, Cash Collateralize the outstanding Letter of Credit
Obligations in an aggregate amount equal to such excess.

4.7.3 Receipt and Application of Payment. The Borrowers shall prepay the Loans in
accordance with the provisions of Section 7.1.10 [Cash Management].

4.7.4 Application Among Interest Rate Options. All prepayments required pursuant to
this Section 4.7 shall first be applied among the Interest Rate Options to the principal
amount of the Loans subject to the Base Rate Option or the Canadian Prime Rate Option, as
applicable, then to Loans subject to a LIBOR Rate Option or a BA Rate Option, as applicable. In
accordance with Section 4.10 [Indemnity], the Borrowers shall indemnify the Lenders for any
loss or expense incurred with respect to any such prepayments applied against Loans subject to a
LIBOR Rate Option or a BA Rate Option, as applicable, on any day other than the last day of the
applicable Interest Period.

4.8 Increased Costs.

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

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

 

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(ii) subject any Lender or the Issuing Lender to any tax of any kind whatsoever with respect
to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Loan under
the LIBOR Rate Option or BA Rate Option made by it, or change the basis of taxation of payments to
such Lender or the Issuing Lender in respect thereof (except for Indemnified Taxes or Other Taxes
covered by Section 4.9 [Taxes] and the imposition of, or any change in the rate of, any
Excluded Tax payable by such Lender or the Issuing Lender); or

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

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

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

4.8.3 Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New
Loans. A certificate of a Lender or the Issuing Lender setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Lender or its holding company, as the case may
be, as specified in Section 4.8.1 [Increased Costs Generally] or Section 4.8.2
[Capital Requirements] and delivered to the Borrowers shall be conclusive absent manifest error.
The Borrowers shall pay such Lender or the Issuing Lender, as the case may be, the amount shown as
due on any such certificate within ten (10) days after receipt thereof.

4.8.4 Delay in Requests. Failure or delay on the part of any Lender or the Issuing
Lender to demand compensation pursuant to this Section shall not constitute a waiver of

 

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such
Lender’s or the Issuing Lender’s right to demand such compensation, provided that the
Borrowers shall not be required to compensate a Lender or the Issuing Lender pursuant to this
Section for any increased costs incurred or reductions suffered more than nine months prior to the
date that such Lender or the Issuing Lender, as the case may be, notifies the Borrowers of the
Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing
Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to
such increased costs or reductions is retroactive, then the nine (9) month period referred to above
shall be extended to include the period of retroactive effect thereof).

4.9 Taxes. 

4.9.1 Payments Free of Taxes. Any and all payments by or on account of any obligation
of the Borrowers hereunder or under any other Loan Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if
the Borrowers shall be required by applicable Law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section) the Administrative Agent, Lender or Issuing Lender, as the case may be,
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
the Borrowers shall make such deductions and (iii) the Borrowers shall timely pay the full amount
deducted to the relevant Official Body in accordance with applicable Law.

4.9.2 Payment of Other Taxes by the Borrowers. Without limiting the provisions of
Section 4.9.1 [Payments Free of Taxes] above, the Borrowers shall timely pay any Other
Taxes to the relevant Official Body in accordance with applicable Law.

4.9.3 Indemnification by the Borrowers; Treatment of Certain Refunds.

4.9.3.1 Indemnification By the Borrowers. The Borrowers shall indemnify the
Administrative Agent, each Lender and the Issuing Lender, within ten (10) days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes
or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid
by the Administrative Agent, such Lender or the Issuing Lender, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Official Body. A certificate as to the amount of such payment or liability delivered to
the Borrowers by a Lender or the Issuing Lender (with a copy to the Administrative Agent), or by
the Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Lender, shall be
conclusive absent manifest error.

4.9.3.2 Treatment of Certain Refunds. If the Administrative Agent, any Lender or the
Issuing Lender determines, in its sole discretion, that it has received a refund of any Indemnified
Taxes or Other Taxes as to which it has been indemnified by the Borrowers or with respect to which
the Borrowers have paid additional amounts pursuant to Section 4.9.3.1 [Indemnification By
the Borrowers], it shall pay to the Borrowers an amount equal to such refund (but only to the
extent of indemnity payments made, or additional amounts paid, by the

 

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Borrowers under this Section
with respect to the Indemnified Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the Administrative Agent, such Lender or the Issuing Lender, as the case
may be, and without interest (other than any interest paid by the relevant Official Body with
respect to such refund), provided that the Borrowers, upon the request of the
Administrative Agent, such Lender or the Issuing Lender, agree to repay the amount paid over to the
Borrowers (plus any penalties, interest or other charges imposed by the relevant Official Body) to
the Administrative Agent, such Lender or the Issuing Lender in the event that the Administrative
Agent, such Lender or the Issuing Lender is required to repay such refund to such Official Body.
This Section 4.9.3.2 shall not be construed to require the Administrative Agent, any Lender
or the Issuing Lender to make available its tax returns (or any other information relating to its
taxes that it deems confidential) to the Borrowers or any other Person.

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

4.9.5 Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the Law of the jurisdiction in which any Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrowers (with a copy to the
Administrative Agent), at the time or times prescribed by applicable Law or reasonably requested by
the Borrowers or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable Law as will permit such payments to be made without withholding or at a
reduced rate of withholding. Notwithstanding the submission of such documentation claiming a
reduced rate of or exemption from U.S. withholding tax, the Administrative Agent shall be entitled
to withhold United States federal income taxes at the full
thirty percent (30%) withholding rate if in its reasonable judgment it is required to do so
under the due diligence requirements imposed upon a withholding agent under § 1.1441-7(b) of the
United States Income Tax Regulations. Further, the Administrative Agent is indemnified under §
1.1461-1(e) of the United States Income Tax Regulations against any claims and demands of any
Lender or assignee or participant of a Lender for the amount of any tax it deducts and withholds in
accordance with regulations under § 1441 of the Internal Revenue Code. In addition, any Lender, if
requested by the Borrowers or the Administrative Agent, shall deliver such other documentation
prescribed by applicable Law or reasonably requested by the Borrowers or the Administrative Agent
as will enable the Borrowers or the Administrative Agent to determine whether or not such Lender is
subject to backup withholding or information reporting requirements.

Without limiting the generality of the foregoing, in the event that any Borrower is resident
for tax purposes in the United States of America, any Foreign Lender shall deliver to the Borrowers
and the Administrative Agent (in such number of copies as shall be requested by the recipient) on
or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from
time to time thereafter upon the request of the Borrowers or the

 

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Administrative Agent, but only if
such Foreign Lender is legally entitled to do so), whichever of the following is applicable:

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

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

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

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

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

4.10 Indemnity. In addition to the compensation or payments required by Section
4.8 [Increased Costs] or Section 4.9 [Taxes], the Borrowers shall indemnify each Lender
against all liabilities, losses or expenses (including loss of anticipated profits, any foreign
exchange losses and any loss or expense arising from the liquidation or reemployment of funds
obtained by it to maintain such Loan, from fees payable to terminate the deposits from which such
funds were obtained or from the performance of any foreign exchange contract) which such Lender sustains
or incurs as a consequence of any:

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

(ii) attempt by any Borrower to revoke (expressly, by later inconsistent notices or otherwise)
in whole or part any Loan Requests under Section 2.5 [Revolving Credit Loan Requests; Swing
Loan Requests] or Section 3.2 [Interest Periods] or notice relating to prepayments under
Section 4.6 [Voluntary Prepayments],

(iii) claims of, or amounts paid by the Administrative Agent, any Lender or any Affiliate of
any Lender to a Blocked Account Bank or other Person which has entered into a control agreement
(including, without limitation, a Blocked Account Agreement) with the Administrative Agent, any
Lender or any Affiliate of any Lender hereunder; or

 

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

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

4.11 Settlement Date Procedures. In order to minimize the transfer of funds between
the Lenders and the Administrative Agent, the Borrowers may borrow, repay and reborrow Swing Loans
and PNC may make Swing Loans as provided in Section 2.1.2 [Swing Loan Commitments] hereof
during the period between Settlement Dates. The Administrative Agent shall notify each Lender of
its Ratable Share of the total of the Revolving Credit Loans and the Swing Loans (each a “Required
Share”). On such Settlement Date, each Lender shall pay to the Administrative Agent the amount
equal to the difference between its Required Share and its Revolving Credit Loans, and the
Administrative Agent shall pay to each Lender its Ratable Share of all payments made by the
Borrowers to the Administrative Agent with respect to the Revolving Credit Loans. The
Administrative Agent shall also effect settlement in accordance with the foregoing sentence on the
proposed Borrowing Dates for Revolving Credit Loans and may at its option effect settlement on any
other Business Day. These settlement procedures are established solely as a matter of
administrative convenience, and nothing contained in this Section 4.11 shall relieve the
Lenders of their obligations to fund Revolving Credit Loans on dates other than a Settlement Date
pursuant to Section 2.1.2 [Swing Loan Commitment]. The Administrative Agent may at any
time at its option for any reason whatsoever require each
Lender to pay immediately to the Administrative Agent such Lender’s Ratable Share of the
outstanding Revolving Credit Loans and each Lender may at any time require the Administrative Agent
to pay immediately to such Lender its Ratable Share of all payments made by the Borrowers to the
Administrative Agent with respect to the Revolving Credit Loans.

5. REPRESENTATIONS AND WARRANTIES

5.1 Representations and Warranties. The Loan Parties, jointly and severally,
represent and warrant to the Administrative Agent and each of the Lenders as follows:

5.1.1 Organization and Qualification; Power and Authority; Compliance With Laws; Title to
Properties; Event of Default. Each Loan Party and each Subsidiary of each Loan Party (i) is a
corporation, partnership or limited liability company duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization, (ii) has the lawful power to own or
lease its properties and to engage in the business it presently conducts or proposes to conduct,
(iii) is duly licensed or qualified and in good standing in each jurisdiction listed on
Schedule 5.1.1 and in all other jurisdictions where the property owned or leased by it or
the nature of the business transacted by it or both makes such licensing or qualification

 

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necessary, except where the failure to be so licensed, qualified and in good standing is not
reasonably likely to result in a Material Adverse Change, (iv) has full power to enter into,
execute, deliver and carry out this Agreement and the other Loan Documents to which it is a party,
to incur the Indebtedness contemplated by the Loan Documents and to perform its Obligations under
the Loan Documents to which it is a party, and all such actions have been duly authorized by all
necessary proceedings on its part, (v) is in compliance in all material respects with all
applicable Laws (other than Environmental Laws which are specifically addressed in Section
5.1.14 [Environmental Matters]) in all jurisdictions in which any Loan Party or Subsidiary of
any Loan Party is presently or will be doing business except where the failure to do so would not
constitute a Material Adverse Change, and (vi) has good and, as to real property, marketable title
to or valid leasehold interest in all properties, assets and other rights which it purports to own
or lease or which are reflected as owned or leased on its books and records, free and clear of all
Liens and encumbrances except Permitted Liens. No Event of Default or Potential Default exists or
is continuing.

5.1.2 Subsidiaries and Owners; Investment Companies. As of the Closing Date,
Schedule 5.1.2 states (i) the name of each of the Loan Parties’ Subsidiaries, its
jurisdiction of organization and the amount, percentage and type of equity interests in such
Subsidiary (the “Subsidiary Equity Interests”), (ii) the name of each holder of an equity interest
in each Loan Party (other than DSW), the amount, percentage and type of such equity interest (the
“Loan Party Equity Interests”), and (iii) any options, warrants or other rights outstanding to
purchase any such equity interests referred to in clause (i) or (iii) (collectively the “Equity
Interests”). Each Loan Party and each Subsidiary of each Loan Party has good and marketable title
to all of the Subsidiary Equity Interests it purports to own, free and clear in each case of any
Lien and all such Subsidiary Equity Interests have been validly issued, fully paid and
nonassessable. None of the Loan Parties or Subsidiaries of any Loan Party is an “investment
company” registered or required to be registered under the Investment Company Act of 1940 or under
the “control” of an “investment company” as such terms are defined in the Investment Company Act of
1940 and shall not become such an “investment company” or under such “control.”

5.1.3 Validity and Binding Effect. This Agreement and each of the other Loan
Documents (i) has been duly and validly executed and delivered by each Loan Party, and (ii)
constitutes, or will constitute, legal, valid and binding obligations of each Loan Party which is
or will be a party thereto, enforceable against such Loan Party in accordance with its terms.

5.1.4 No Conflict; Material Agreements; Consents. Neither the execution and delivery
of this Agreement or the other Loan Documents by any Loan Party nor the consummation of the
transactions herein or therein contemplated or compliance with the terms and provisions hereof or
thereof by any of them will conflict with, constitute a default under or result in any breach of
(i) the terms and conditions of the certificate of incorporation, bylaws, certificate of limited
partnership, partnership agreement, certificate of formation, limited liability company agreement
or other organizational documents of any Loan Party or (ii) in any material respect, any Law or any
agreement or instrument or order, writ, judgment, injunction or decree to which any Loan Party or
any of its Subsidiaries is a party or by which it or any of its Subsidiaries is bound or to which
it is subject, or result in the creation or enforcement of any Lien, charge or encumbrance
whatsoever upon any property (now or hereafter acquired) of any Loan Party or any of its
Subsidiaries (other than Liens granted under the Loan Documents). There is no default

 

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under such
material agreement (referred to above) and none of the Loan Parties or their Subsidiaries is bound
by any contractual obligation, or subject to any restriction in any organization document, or any
requirement of Law which is reasonably likely to result in a Material Adverse Change. No consent,
approval, exemption, order or authorization of, or a registration or filing with, any Official Body
or any other Person is required by any Law or any agreement in connection with the execution,
delivery and carrying out of this Agreement and the other Loan Documents.

5.1.5 Litigation. There are no actions, suits, proceedings or investigations pending
or, to the knowledge of any Loan Party, threatened against such Loan Party or any Subsidiary of
such Loan Party at law or in equity before any Official Body which individually or in the aggregate
are reasonably likely to result in any Material Adverse Change. None of the Loan Parties or any
Subsidiaries of any Loan Party is in violation of any order, writ, injunction or any decree of any
Official Body which is reasonably likely to result in any Material Adverse Change.

5.1.6 Financial Statements.

(i) Historical Statements. The Borrowers have delivered to the Administrative Agent
copies of their audited consolidated year-end financial statements for and as of the end of the
Borrowers’ fiscal year ended January 30, 2010. In addition, the Borrowers have delivered to the
Administrative Agent copies of their unaudited consolidated interim financial statements for the
fiscal year to date and as of the end of the fiscal quarter ended May 1, 2010 (all such annual and
interim statements being collectively referred to as the “Statements”). The Statements were
compiled from the books and records maintained by the Borrowers’ management, are correct and
complete and fairly represent the consolidated financial condition of the Borrowers and their
Subsidiaries as of the respective dates thereof and the results of operations for the fiscal
periods then ended and have been prepared in accordance with GAAP consistently applied, subject (in
the case of the interim statements) to normal year-end audit adjustments.

(ii) Accuracy of Financial Statements. As of the respective dates of the Statements,
no Loan Party nor any Subsidiary of any Loan Party has any liabilities, contingent or otherwise, or
forward or long-term commitments that are not disclosed in the Statements or in the notes thereto,
and except as disclosed therein there are no unrealized or anticipated losses from any commitments
of any Loan Party or any Subsidiary of any Loan Party which may cause a Material Adverse Change.
Since January 30, 2010, no Material Adverse Change has occurred.

5.1.7 Margin Stock. None of the Loan Parties or any Subsidiaries of any Loan Party
engages or intends to engage principally, or as one of its important activities, in the business of
extending credit for the purpose, immediately, incidentally or ultimately, of purchasing or
carrying margin stock (within the meaning of Regulation U, T or X as promulgated by the Board of
Governors of the Federal Reserve System). No part of the proceeds of any Loan has been or will be
used, immediately, incidentally or ultimately, to purchase or carry any margin stock or to extend
credit to others for the purpose of purchasing or carrying any margin stock or which is
inconsistent with the provisions of the regulations of the Board of Governors of the Federal
Reserve System. None of the Loan Parties or any Subsidiary of any

 

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Loan Party holds or intends to
hold margin stock in such amounts that more than twenty-five percent (25%) of the reasonable value
of the assets of any Loan Party or Subsidiary of any Loan Party are or will be represented by
margin stock.

5.1.8 Full Disclosure. Neither this Agreement nor any other Loan Document, nor any
certificate, statement, agreement or other documents furnished to the Administrative Agent or any
Lender in connection herewith or therewith, contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements contained herein and
therein, in light of the circumstances under which they were made, not misleading. There is no
fact known to any
Loan Party which, individually or in the aggregate, is reasonably likely to
result in a Material Adverse Change except for those which have been disclosed to the
Administrative Agent and the Lenders prior to or at the date hereof in connection with the
transactions contemplated hereby.

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

5.1.10 Patents, Trademarks, Copyrights, Licenses, Etc. Each Loan Party and each
Subsidiary of each Loan Party owns or possesses all the material patents, trademarks, service
marks, trade names, copyrights, licenses, registrations, franchises, permits and rights necessary
to own and operate its properties and to carry on its business as presently conducted and planned
to be conducted by such Loan Party or Subsidiary, without known possible, alleged or actual
conflict with the rights of others, other than where any such failure or conflict is not reasonably
likely to result in a Material Adverse Change.

5.1.11 Liens in the Collateral. The Liens in the Collateral granted to the
Administrative Agent for the benefit of the Lenders pursuant to the Collateral Assignment, the
Blocked Account Agreements, and the Security Agreement (collectively, the “Collateral Documents”)
constitute and will continue to constitute Prior Security Interests (other than with respect to any
DDAs not then subject to a Blocked Account Agreement). All filing fees and other expenses in
connection with the perfection of such Liens have been or will be paid by the Loan Parties in
accordance with Section 10.3.1 [Costs and Expenses] hereof.

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

 

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5.1.13 ERISA Compliance. In each instance set forth in this Section 5.1.13, except
for those instances which are not reasonably likely to result in a Material Adverse Change:

(i) Each Plan is in compliance in all material respects with the applicable provisions of
ERISA, the Code and other federal or state Laws. Each Plan that is intended to qualify under
Section 401(a) of the Code (A)(1) has received a favorable determination letter from the IRS or an
application for such a letter is currently being processed by the IRS with respect thereto, or (2)
is relying on a letter from the IRS issued to the sponsor of a pre-approved Plan, and, (B) to the
best knowledge of the Borrowers, nothing has occurred which would prevent, or cause the loss of,
such qualification. Each Borrower and each ERISA Affiliate have made in all material respects all
required contributions to each Plan subject to Section 412 of the Code, and no application for a
funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.

(ii) No ERISA Event has occurred or, based upon facts known to the Loan Parties as of the
Closing Date, is reasonably likely to occur; (a) no Pension Plan has any unfunded pension liability
(i.e. excess of benefit liabilities over the current value of that Pension Plan’s assets,
determined in accordance with the assumptions used for funding the Pension Plan for the applicable
plan year); (b) no Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur,
any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and
not delinquent under Section 4007 of ERISA); (c) no Borrower nor any ERISA Affiliate has incurred,
or reasonably expects to incur, any liability (and no event has occurred which, with the giving of
notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of
ERISA with respect to a Multiemployer Plan; and (d) no Borrower nor any ERISA Affiliate has engaged
in a transaction that is reasonably likely to be subject to Sections 4069 or 4212(c) of ERISA.

5.1.14 Environmental Matters. Each Loan Party is and, to the knowledge of each
respective Loan Party and each of its Subsidiaries is and has been in compliance with applicable
Environmental Laws, other than any noncompliance which when aggregated with all such noncompliance
is not reasonably likely to result in a Material Adverse Change and except
as disclosed on Schedule 5.1.14; provided that such matters so disclosed are
not reasonably likely in the aggregate to result in a Material Adverse Change.

5.1.15 Solvency. Before and after giving effect to each Loan and each issuance of a
Letter of Credit hereunder, each of the Loan Parties is, on a consolidated basis, Solvent.

5.1.16 Labor Matters. In each instance set forth in this Section 5.1.16, except for
those matters which are not reasonably likely to result in a Material Adverse Change, (a) there are
no strikes, lockouts, slowdowns or other material labor disputes against any Loan Party or any
Subsidiary thereof pending or, to the knowledge of any Loan Party, threatened, (b) the hours worked
by and payments made to employees of the Loan Parties comply with the Fair Labor Standards Act and
any other applicable federal, state, provincial, territorial, local or foreign Law dealing with
such matters, (c).no Loan Party or any of its Subsidiaries has incurred any liability or obligation
under the Worker Adjustment and Retraining Act or similar state Law, (d) all payments due from any
Loan Party and its Subsidiaries, or for which any claim may be

 

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made against any Loan Party or any
of its Subsidiaries, on account of wages and employee health and welfare insurance and other
benefits, have been paid or properly accrued in accordance with GAAP as a liability on the books of
such Loan Party, (e) except as set forth on Schedule 5.1.16, no Loan Party or any
Subsidiary is a party to or bound by any collective bargaining agreement, management agreement,
employment agreement, bonus, restricted stock, stock option, or stock appreciation plan or
agreement or any similar plan, agreement or arrangement, (f) there are no representation
proceedings pending or, to any Loan Party’s knowledge, threatened to be filed with the National
Labor Relations Board, and no labor organization or group of employees of any Loan Party or any
Subsidiary has made a pending demand for recognition, (g) there are no complaints, unfair labor
practice charges, grievances, arbitrations, unfair employment practices charges or any other claims
or complaints against any Loan Party or any Subsidiary pending or, to the knowledge of any Loan
Party, threatened to be filed with any Official Body or arbitrator based on, arising out of, in
connection with, or otherwise relating to the employment or termination of employment of any
employee of any Loan Party or any of its Subsidiaries, and (h) the consummation of the transactions
contemplated by the Loan Documents will not give rise to any right of termination or right of
renegotiation on the part of any union under any collective bargaining agreement to which any Loan
Party or any of its Subsidiaries is bound.

5.1.17 DDAs; Credit Card Arrangements.

5.1.17.1 DDAs. Annexed hereto as Schedule 5.1.17.1 is a list of all DDAs
maintained by the Loan Parties as of the Closing Date, which Schedule includes, with respect to
each DDA (i) the name and address of the depository; (ii) the account number(s) maintained with
such depository; (iii) a contact person at such depository, and (iv) the identification of each
Blocked Account Bank.

5.1.17.2 Credit Card Arrangements. Annexed hereto as Schedule 5.1.17.2 is a
list describing all arrangements as of the Closing Date to which any Loan Party is a party with
respect to the processing and/or payment to such Loan Party of the proceeds of any credit card
charges and debit card charges for sales made by such Loan Party.

5.2 Updates to Schedules. Should any of the information or disclosures provided on
any of the Schedules attached hereto become outdated or incorrect in any material respect, the
Borrowers shall promptly provide the Administrative Agent in writing with such revisions or updates
to such Schedule as may be necessary or appropriate to update or correct same. No Schedule shall
be deemed to have been amended, modified or superseded by any such correction or update, nor shall
any breach of warranty or representation resulting from the inaccuracy or incompleteness of any
such Schedule be deemed to have been cured thereby, unless and until the Required Lenders, in their
sole and absolute discretion, shall have accepted in writing such revisions or updates to such
Schedule.

6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

The obligation of each Lender to make Loans and of the Issuing Lender to issue Letters of
Credit hereunder is subject to the performance by each of the Loan Parties of its
Obligations

 

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to be
performed hereunder at or prior to the making of any such Loans or issuance of such Letters of
Credit and to the satisfaction of the following further conditions:

6.1 First Loans and Letters of Credit.

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

(i) A certificate of each of the Loan Parties signed by an Authorized Officer of each
Borrower, dated the Closing Date stating that (v) all representations and warranties of the Loan
Parties set forth in this Agreement are true and correct in all material respects as of the Closing
Date, except to the extent such representations and warranties are modified by “materiality” or
“Material Adverse Change” or words of similar import, in which case they are true and correct in
all respects, (w) the Loan Parties are in compliance with each of the covenants and conditions
hereunder, (x) no Potential Default or Event of Default exists, and (y) no Material Adverse Change
has occurred since January 30, 2010;

(ii) A Simplified Borrowing Base Certificate prepared as of the Closing Date in substantially
the form of Exhibit 7.3.4.1, showing the sum of Revolving Credit Availability plus
the Borrowers’ cash and cash equivalents then on hand, in each case after giving effect to the
Loans to be made on the Closing Date and consummation of the transactions contemplated hereby
(including repayment of Indebtedness under the Existing Loan Agreement (including in respect of any
outstanding letters of credit issued thereunder) and payment of fees and expenses owing on the
Closing Date), of at least $300,000,000;

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

(iv) This Agreement and each of the other Loan Documents signed by an Authorized Officer of
each Loan Party and all appropriate financing statements and appropriate stock powers and
certificates and other documents, instruments and agreements evidencing the pledged Collateral, and
evidence of filing of all Collateral Documents as may be necessary to reflect valid and perfected
first priority Liens in the Collateral;

(v) A written opinion of each of Porter Wright Morris & Arthur LLP and Sonnenschein Nath &
Rosenthal LLP, counsel for the Loan Parties, each dated as of the Closing Date and opining as to
the matters set forth in Schedule 6.1.1;

(vi) Evidence that adequate insurance required to be maintained under this Agreement is in
full force and effect, with additional insured and lender loss payable

 

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endorsements attached
thereto in form and substance satisfactory to the Administrative Agent and its counsel naming the
Administrative Agent as additional insured and lender loss payee;

(vii) A duly completed Compliance Certificate as of the last day of the fiscal quarter of DSW
most recently ended prior to the Closing Date, signed by an Authorized Officer of DSW;

(viii) All material consents required to effectuate the transactions contemplated hereby;

(ix) Evidence that the Existing Loan Agreement has been terminated, and all outstanding
obligations thereunder have been paid and all Liens securing such obligations have been released;

(x) Results of searches or other evidence reasonably satisfactory to the Administrative Agent
(in each case dated as of a date reasonably satisfactory to the Administrative Agent) indicating
the absence of Liens on the assets of the Loan Parties, except for Permitted Liens and Liens for
which termination statements and releases reasonably satisfactory to the Administrative Agent are
being tendered concurrently with such extension of credit or other arrangements reasonably
satisfactory to the Administrative Agent for the delivery of such termination statements and
releases have been made;

(xi) An executed Collateral Access Agreement or other lien waiver agreement from the lessor,
or other applicable Person for the fulfillment center and the main distribution center as required
under the Security Agreement; and

(xii) Such other documents, instruments and agreements in connection with such transactions as
the Administrative Agent or its counsel may reasonably request.

6.1.2 Other Conditions Precedent. On the Closing Date, each of the following
conditions precedent shall have been satisfied in a manner acceptable to the Administrative Agent:

(i) The Administrative Agent shall have received and be satisfied with such financial or other
information as reasonably requested by the Administrative Agent.

(ii) The Administrative Agent shall have received and be satisfied with such other due
diligence materials (including, without limitation, in respect of ERISA, and labor matters) as
reasonably requested by the Administrative Agent.

(iii) There shall not be pending any litigation or other proceeding, the result of which,
either individually or in the aggregate, could reasonably be expected to have a Material Adverse
Change.

(iv) There shall have been no Material Adverse Change since January 30, 2010.

 

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6.1.3 Payment of Fees and Expenses. The Borrowers shall have paid all fees and
expenses invoiced to the Borrowers and payable on or before the Closing Date as required by this
Agreement, the Fee Letter or any other Loan Document.

6.2 Each Loan or Letter of Credit. At the time of making any Loans or issuing,
extending or increasing any Letters of Credit and after giving effect to the proposed extensions of
credit and the application of proceeds therefrom: (i) the representations, warranties of the Loan
Parties shall then be true and correct in all material respects as of the date of such extension of
credit, except to the extent such representations and warranties (1) relate to an earlier date, in
which case they are true and correct in all material respects as of such earlier date, or (2) are
modified by “materiality” or “Material Adverse Change” or words of similar import, in which case
they are true and correct in all such respects, (ii) no Event of Default or Potential Default shall
have occurred and be continuing, (iii) the making of the Loans or issuance, extension or increase
of such Letter of Credit shall not contravene any Law applicable to any Loan Party or Subsidiary of
any Loan Party or any of the Lenders, and (iv) the Borrowers shall have delivered to the
Administrative Agent a duly executed and completed Loan Request or Swing Loan Request, as
applicable, or to the Issuing Lender an application for a Letter of Credit, as the case may be.

6.3 Initial Loans or Letters of Credit — Canadian Borrower. On or prior to the time
of the Canadian Lenders’ making the initial Loans to the Canadian Borrower or the Issuing Lender’s
issuing the initial Letter of Credit for the account of the Canadian Borrower, the Canadian
Borrower shall join this Agreement as the Canadian Borrower and shall have complied in all respects
with the requirements of Section 7.2.9 [Subsidiaries, Partnerships and Joint Ventures] with
respect to the joinder of a Subsidiary as a Borrower hereto and all other conditions set forth in
this Section 6 [Conditions of Lending and Issuance of Letters of Credit] with respect to the
Canadian Borrower and its Subsidiaries shall have been satisfied.

7. COVENANTS

The Loan Parties, jointly and severally, covenant and agree that until Payment In Full, the
Loan Parties shall comply at all times with the following covenants:

7.1 Affirmative Covenants. 

7.1.1 Preservation of Existence, Etc. Each Loan Party shall, and shall cause each of
its Subsidiaries to, maintain its legal existence as a corporation, limited partnership or limited
liability company and its license or qualification and good standing (a) in its jurisdiction of
incorporation or organization, and (b) in each other jurisdiction in which its ownership or lease
of property or the nature of its business makes such license or qualification necessary, except as
otherwise expressly permitted in Section 7.2.6 [Liquidations, Mergers, Consolidations,
Amalgamations, Acquisitions] and, with respect to clause (b), except where the failure to so
maintain any license or qualification is not reasonably likely to result in a Material Adverse
Change.

7.1.2 Payment of Liabilities, Including Taxes, Etc. Each Loan Party shall, and shall
cause each of its Subsidiaries to, duly pay and discharge all liabilities in the aggregate in
excess of $1,000,000 to which it is subject or which are asserted against it, promptly as and when

 

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the same shall become due and payable, including all taxes, assessments and governmental charges
upon it or any of its properties, assets, income or profits, prior to the date on which penalties
attach thereto, except to the extent that (A) the validity or amount of any such liability
(including taxes, assessments or charges) is being contested in good faith by appropriate and
lawful proceedings diligently conducted so long as levy and execution thereon have been stayed and
continue to be stayed or (B) if a final judgment is entered, such judgment is discharged within
forty-five (45) days of entry, and in either case, such contesting or judgment does not affect the
Collateral or, in the aggregate, materially impair the ability of any Loan Party to perform its
Obligations hereunder or under the other Loan Documents; provided that the applicable Loan
Party maintains such reserves or other appropriate provisions as shall be required by GAAP and pays
all such taxes, assessments or charges forthwith upon the commencement of proceedings to foreclose
any such Lien.

7.1.3 Maintenance of Insurance. Each Loan Party shall, and shall cause each of its
Subsidiaries to, insure its properties and assets against loss or damage by fire and such other
insurable hazards as such assets are commonly insured (including fire, extended coverage, property
damage, workers’ compensation, public liability and business interruption insurance) and against
other risks (including errors and omissions) in such amounts as similar properties and assets are
insured by prudent companies in similar circumstances carrying on similar businesses, and with
reputable and financially sound insurers, including self-insurance to the extent customary, all
reasonably satisfactory to the Administrative Agent. The Loan Parties shall comply with the
covenants and provide the endorsement set forth on Schedule 7.1.3 relating to property and
related insurance policies covering the Collateral.

7.1.4 Maintenance of Properties and Leases. Each Loan Party shall, and shall cause
each of its Subsidiaries to, maintain in good repair, working order and condition (ordinary wear
and tear excepted) in accordance with the general practice of other businesses of similar character
and size, all of those properties useful or necessary to its business, and from time to time, such
Loan Party will make or cause to be made all appropriate repairs, renewals or replacements thereof.

7.1.5 Visitation Rights.

7.1.5.1 General. Each Loan Party shall, and shall cause each of its Subsidiaries to,
permit any of the officers or authorized employees or representatives of the Administrative Agent
or any of the Lenders to visit and inspect any of its properties and to examine and make excerpts
from its books and records and discuss its business affairs, finances and accounts with its
officers, all in such detail and at such times and as often as any of the Lenders may reasonably
request, provided that each Lender shall provide the Borrowers and the Administrative Agent
with reasonable notice prior to any visit or inspection. Following the occurrence of a Borrowing
Base Trigger Event, the Administrative Agent may undertake or cause to be undertaken by third
parties satisfactory to the Administrative Agent and the Arranger, in each case at the Borrowers’
expense, such audits and appraisals as the Administrative Agent may require from time to time in
the Administrative Agent’s reasonable discretion. The Administrative Agent shall use reasonable
efforts to minimize expenses and shall furnish estimates of the expenses in respect of audits and
appraisals to be undertaken after the Closing Date under the Loan Documents. The Administrative
Agent agrees (i) to advise the

 

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Borrowers upon its becoming aware that actual expenses in respect of
such audits and appraisals will likely exceed the estimates previously provided therefor, and (ii)
that the Administrative Agent shall not charge the Borrowers’ account with respect to such expenses
until the Borrowers have had a reasonable opportunity to review the invoices with respect thereto,
it being understood that all such expenses with respect to the audits and appraisals shall be paid
as and when due hereunder.

7.1.5.2 Post-Closing Covenant. In addition to the Administrative Agent’s rights set
forth in Section 7.1.5.1, the Loan Parties shall cooperate with and assist the Administrative Agent
and its representatives in order that the Administrative Agent may cause, in each case at the
Borrowers’ expense, one (1) audit of the Loan Parties’ business and one (1) appraisal of the Loan
Parties’ Inventory to be prepared by third parties reasonably satisfactory to the Administrative
Agent and the Arranger and completed and delivered to the Administrative Agent within sixty (60)
days following the Closing Date.

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

7.1.7 Compliance with Laws; Use of Proceeds. Each Loan Party shall, and shall cause
each of its Subsidiaries to, comply with all applicable Laws, including all Environmental Laws, in
all respects; provided that it shall not be deemed to be a violation of this Section
7.1.7 if any failure to comply with any Law would not result in fines, penalties, remediation
costs, other similar liabilities or injunctive relief which in the aggregate are reasonably likely
to constitute a Material Adverse Change. The Loan Parties will use the Letters of Credit and the
proceeds of the Loans only in accordance with Section 2.8 [Use of Proceeds] and as
permitted by applicable Law.

7.1.8 Further Assurances. Each Loan Party shall, from time to time, at its expense,
faithfully preserve and protect the Administrative Agent’s Lien on and Prior Security Interest in
the Collateral whether now owned or hereafter acquired as a continuing first priority perfected
Lien, subject only to Permitted Liens having priority by operation of Law, and shall do such other
acts and things as the Administrative Agent in its reasonable discretion may deem necessary or
advisable from time to time in order to preserve, perfect and protect the Liens granted under the
Loan Documents and to exercise and enforce its rights and remedies thereunder with respect to the
Collateral.

7.1.9 Anti-Terrorism Laws. None of the Loan Parties is or shall be (i) a Person with
whom any Lender is restricted from doing business under Executive Order No. 13224 or any other
Anti-Terrorism Law, (ii) engaged in any business involved in making or receiving any contribution
of funds, goods or services to or for the benefit of such a Person or in any transaction that
evades or avoids, or has the purpose of evading or avoiding, the prohibitions set forth in any
Anti-Terrorism Law, or (iii) otherwise in violation of any Anti-Terrorism Law.

 

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The Loan Parties shall provide to the Lenders any certifications or information that a Lender requests to confirm
compliance by the Loan Parties with Anti-Terrorism Laws.

7.1.10 Cash Management.

7.1.10.1 On or prior to the Closing Date, the Loan Parties shall:

(i) deliver to the Administrative Agent copies of notifications (each, a “Credit Card
Notification”), each in form and substance reasonably satisfactory to the Administrative
Agent, which have been executed on behalf of such Loan Party and delivered to such Loan
Party’s credit card clearinghouses and processors listed on Schedule 5.1.17.1; and

(ii) enter into a Blocked Account Agreement in form and substance reasonably
satisfactory to the Administrative Agent with each Blocked Account Bank on terms consistent
with the provisions of Section 7.1.10.3 hereof (collectively, the “Blocked Accounts”).

7.1.10.2 The Loan Parties shall ACH or wire transfer no less frequently than daily (and
whether or not there are then any outstanding Obligations) to a Blocked Account all amounts in
excess of $2,500 on deposit in each such DDA and all payments due from credit card processors.

7.1.10.3 Each Blocked Account Agreement shall require after the occurrence of a Trigger Event
Election or an Event of Default the ACH or wire transfer no less frequently than daily (and whether
or not there are then any outstanding Obligations) to the concentration account maintained at PNC
or, with respect to the Canadian Borrower and its Subsidiaries, to the concentration account
maintained at PNC Canada (each, as further described in a certain confidential side letter of even
date herewith, a “Concentration Account”), of all cash receipts and collections, including, without
limitation, the following:

(i) all available cash receipts from the sale of Inventory (including without
limitation, proceeds of credit card charges) and other assets (whether or not constituting
Collateral);

(ii) all proceeds of collections of Accounts;

(iii) all Net Proceeds and all other cash payments received by a Loan Party from any
Person or from any source or on account of any sale or other transaction or event;

(iv) the then contents of each DDA (net of any minimum balance, not to exceed
$2,500.00, as may be required to be kept in the subject DDA by the depository institution at
which such DDA is maintained);

(v) the then entire ledger balance of each Blocked Account (net of any minimum balance,
not to exceed $2,500.00, as may be required to be kept in the subject Blocked Account by the
Blocked Account Bank; and

 

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(iv) all other proceeds of Collateral.

The Concentration Account shall at all times be under the sole dominion and control of the
Administrative Agent or PNC Canada, as applicable. The Loan Parties hereby acknowledge and agree
that (i) the Loan Parties have no right of withdrawal from the Concentration Accounts, (ii) the
funds on deposit in the Concentration Accounts shall at all times be collateral security for all of
the Obligations or the Canadian Liabilities, as applicable, and (iii) the funds on deposit in the
Concentration Accounts shall be applied as provided in this Agreement. In the event that,
notwithstanding the provisions of this Section 7.1.10, any Loan Party receives or otherwise
has dominion and control of any such proceeds or collections, such proceeds and collections shall
be held in trust by such Loan Party for the Administrative Agent, shall not be commingled with any
of such Loan Party’s other funds or deposited in any account of such Loan Party and shall, not
later than the Business Day after receipt thereof, be deposited into a Concentration Account or
dealt with in such other fashion as such Loan Party may be instructed by the Administrative Agent.

7.1.10.4 Upon the request of the Administrative Agent, the Loan Parties shall cause bank
statements and/or other reports to be delivered to the Administrative Agent not less often than
monthly, accurately setting forth all amounts deposited in each Blocked Account to ensure the
proper transfer of funds as set forth above.

7.1.10.5 Each Loan Party hereby authorizes the Administrative Agent, after the occurrence and
during the continuance of an Event of Default, to (i) notify any or all Account Debtors that the
Accounts have been assigned to the Lenders and that the Lenders have a security interest therein,
and (ii) direct such Account Debtors to make all payments due from them to the Loan Parties upon
the Accounts directly to the Administrative Agent or to a lockbox designated by the Administrative
Agent. The Administrative Agent shall promptly furnish the Borrowers with a copy of any such
notice sent. Any such notice, in the Administrative Agent’s sole discretion, may be sent on any
Loan Party’s stationery, in which event such Loan Party shall co-sign such notice with the
Administrative Agent. To the extent that any Law or custom or any
contract or agreement with any Account Debtor requires notice to or the approval of the
Account Debtor in order to perfect such assignment of a security interest in Accounts, each Loan
Party agrees to give such notice or obtain such approval.

7.2 Negative Covenants.

7.2.1 Indebtedness. Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any Indebtedness, except:

(i) Indebtedness under the Loan Documents;

(ii) Existing Indebtedness as set forth on Schedule 7.2.1 (including any extensions or
renewals thereof; provided there is no increase in the amount thereof or other significant
change in the terms thereof unless otherwise specified on Schedule 7.2.1);

 

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(iii) as and to the extent permitted pursuant to clause (ix) of the definition of “Permitted
Liens”, Indebtedness incurred with respect to Purchase Money Security Interests and Capital Leases;

(iv) Indebtedness of a Loan Party to another Loan Party;

(v) Indebtedness of a Loan Party to a Subsidiary which is not a Loan Party which is
subordinated pursuant to the Intercompany Subordination Agreement;

(vi) Any (i) Lender Provided Interest Rate Hedge, (ii) other Interest Rate Hedge approved by
the Administrative Agent, or (iii) Indebtedness under any Other Lender Provided Financial Services
Product; provided, however, the Loan Parties and their Subsidiaries shall enter into a
Lender Provided Interest Rate Hedge or another Interest Rate Hedge only for hedging (rather than
speculative) purposes;

(vii) Indebtedness in connection with Permitted Acquisitions (A) to sellers in an amount not
to exceed $25,000,000 in the aggregate outstanding at any time, provided that such Indebtedness has
a maturity of at least 180 days following the Expiration Date and is subordinated to the
Obligations on terms reasonably acceptable to the Administrative Agent, and (B) as disclosed in a
certain confidential side letter of even date herewith;

(viii) Indebtedness in respect of financing of insurance premiums; incurred in the ordinary
course of business;

(ix) Indebtedness in respect to any Lender’s credit card program incurred in the ordinary
course of business;

(x) Indebtedness to customs brokers, freight forwarders, common carriers, landlords and like
persons incurred in the ordinary course of business;

(xi) Indebtedness with respect to indemnities, warranties, statutory obligations, and surety,
appeal and supersedeas bonds incurred in the ordinary course of business and which is not overdue;

(xii) Indebtedness consisting of obligations of a Loan Party or any Subsidiary under any lease
(i) which is accounted for by the lessee thereof as an operating lease, and (ii) under which such
lessee is intended to be the “owner” of the leased property for federal income tax purposes; and

(xiii) other Indebtedness not specifically described herein in an aggregate principal amount
not to exceed $20,000,000 in any fiscal year of the Borrowers.

Each of the Loan Parties shall not, and shall not permit any of its Subsidiaries to, prepay,
redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any
manner any Indebtedness, or make any payment in violation of any subordination terms of any
Subordinated Indebtedness in excess of the sum of $2,500,000, except (a) as long as no Trigger
Event Election has occurred and no Event of Default or Potential Default then exists or would arise
therefrom and, after giving effect to any such payment, the Borrowers have on hand the

 

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Minimum Cash
Requirement, regularly scheduled repayments, prepayments, repurchases, redemptions or defeasances
of Indebtedness described in this Section 7.2.1 (other than Subordinated Indebtedness), and
(b) as long as no Trigger Event Election has occurred and no Event of Default or Potential Event of
Default then exists or would arise therefrom, and, after giving effect to any such payment, the
Borrowers have on hand the Minimum Cash Requirement, repayments, defeasances and prepayments of
Subordinated Indebtedness in accordance with the subordination terms thereof.

7.2.2 Liens; Lien Covenants. Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, at any time create, incur, assume or suffer to exist any Lien on any of
its property or assets, tangible or intangible, now owned or hereafter acquired, or agree or become
liable to do so, except Permitted Liens.

7.2.3 Guaranties. Each of the Loan Parties shall not, and shall not permit any of its
Subsidiaries to, at any time, directly or indirectly, become or be liable in respect of any
Guaranty, or assume, guarantee, become surety for, endorse or otherwise agree, become or remain
directly or contingently liable upon or with respect to any obligation or liability of any other
Person, except for Guaranties of Indebtedness of the Loan Parties permitted hereunder.

7.2.4 Loans and Investments. Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, at any time make or suffer to remain outstanding any loan or advance
to, or purchase, acquire or own any stock, bonds, notes or securities of, or any partnership
interest (whether general or limited) or limited liability company interest in, or any other
investment or interest in, or make any capital contribution to, or make an Acquisition of, any
other Person, or agree, become or remain liable to do any of the foregoing, except:

(i) trade credit and similar advances extended on usual and customary terms in the ordinary
course of business (including , without limitation, pursuant to any Loan Party’s leased
departments, supply agreements or similar arrangements);

(ii) advances to employees to meet expenses incurred by such employees in the ordinary course
of business;

(iii) Permitted Investments;

(iv) Permitted Acquisitions;

(v) loans, advances and investments in other Loan Parties;

(vi) investments in Taryn Rose in an amount not to exceed $5,000,000 at any time outstanding;

(vii) investments pursuant to a certain confidential side letter of even date herewith; and

(viii) other investments not specifically described herein and not exceeding $20,000,000 in
the aggregate in any fiscal year of the Borrowers.

 

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7.2.5 Dividends and Related Distributions. Each of the Loan Parties shall not, and
shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable to
make or pay, any dividend or other distribution of any nature (whether in cash, property,
securities or otherwise) on account of or in respect of its shares of capital stock, partnership
interests or limited liability company interests on account of the purchase, redemption, retirement
or acquisition of its shares of capital stock (or warrants, options or rights therefor),
partnership interests or limited liability company interests, except:

(i) dividends or other distributions payable to another Loan Party; and

(ii) in any fiscal year of the Borrowers, dividends or other distributions, and share
repurchases, share redemptions or retirements, in the aggregate of up to fifty percent (50%) of the
Borrowers’ net income (as determined in accordance with GAAP) from the immediately preceding fiscal
year, provided that (x) prior to and after giving effect to the making of such dividend or
other distribution, no Trigger Event Election or Event of Default shall have occurred and the
Borrowers shall have on hand the Minimum Cash Requirement, and (y) the aggregate amount of all such
dividends or other distributions in such fiscal year does not exceed $50,000,000.

7.2.6 Liquidations, Mergers, Consolidations, Amalgamations, Acquisitions. Each of the
Loan Parties shall not, and shall not permit any of its Subsidiaries to, dissolve, liquidate or
wind-up its affairs, or become a party to any merger, consolidation or amalgamation, or acquire by
purchase, lease or otherwise all or substantially all of the assets or capital stock of any other
Person, except:

(i) any Loan Party other than a Borrower may consolidate, merge or amalgamate with and into
another Loan Party which is wholly-owned by one or more of the other Loan Parties; and

(ii) Permitted Acquisitions;

(iii) pursuant to a confidential side letter delivered to the Administrative Agent of even
date herewith.

7.2.7 Dispositions of Assets or Subsidiaries. Each of the Loan Parties shall not, and
shall not permit any of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise
transfer or dispose of, voluntarily or involuntarily, any of its properties or assets, tangible or
intangible (including sale, assignment, discount or other disposition of accounts, contract rights,
chattel paper, equipment or general intangibles with or without recourse or of capital stock,
shares of beneficial interest, partnership interests or limited liability company interests of a
Subsidiary of such Loan Party), except:

(i) transactions involving the sale of inventory in the ordinary course of business;

(ii) any sale, transfer or lease of assets in the ordinary course of business which are no
longer necessary or required in the conduct of such Loan Party’s or such

 

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Subsidiary’s business so
long as no Event of Default shall have occurred and be continuing or will result therefrom;

(iii) any sale, transfer or lease of assets by any wholly owned Subsidiary of such Loan Party
to another Loan Party;

(iv) any sale, transfer or lease of assets in the ordinary course of business which are
replaced by substitute assets acquired or leased within the parameters of Section 7.2.14
[Capital Expenditures] so long no Event of Default shall have occurred and be continuing or will
result therefrom; provided such substitute assets are subject to the Administrative Agent’s
and the Lenders’ Prior Security Interest;

(v) any other sale, transfer or lease of assets to another Person in an amount not to exceed
$20,000,000 in the aggregate for all such other sales, transfers or leases in any fiscal year of
the Borrowers so long as (a) a Trigger Event Election has not occurred and (b) no Potential Default
or Event of Default shall have occurred and be continuing or will result therefrom (it being
understood that following the earlier to occur of a Trigger Event Election or the occurrence of
such Potential Default or Event of Default, any such sale, transfer of lease shall require the
Required Lenders’ prior written consent);

(vi) Licenses of intellectual property or licensed departments of a Loan Party or any of its
Subsidiaries in the ordinary course of business; and

(vii) Leases or subleases of leases.

7.2.8 Affiliate Transactions. Except as disclosed on Schedule 7.2.8, each of the Loan
Parties shall not, and shall not permit any of its Subsidiaries to, enter into or carry out any
transaction with any Affiliate of any Loan Party (including purchasing property or services from or
selling property or services to any Affiliate of any Loan Party or other Person) unless such
transaction is not otherwise prohibited by this Agreement, is entered into in the ordinary course
of business upon fair and reasonable arm’s-length terms and conditions which are fully disclosed to
the Administrative Agent and is in accordance with all applicable Law.

7.2.9 Subsidiaries, Partnerships and Joint Ventures. Each of the Loan Parties shall
not, and shall not permit any of its Subsidiaries to own or create directly or indirectly any
Subsidiaries other than (i) any Subsidiary which has joined this Agreement as Guarantor on the
Closing Date; and (ii) any Domestic Subsidiary formed or acquired after the Closing Date which
joins this Agreement as a Borrower or as a Guarantor, and, to the extent not resulting in material
adverse tax consequences, any Foreign Subsidiary formed or acquired after the Closing Date which
joins this Agreement as a Borrower or as a Guarantor, in each case by delivering to the
Administrative Agent (A) a signed Borrower Joinder or Guarantor Joinder, as appropriate; (B)
documents in the forms described in Section 6.1 [First Loans] modified as appropriate; (C)
documents necessary to grant and perfect the Prior Security Interests to the Administrative Agent
for the benefit of the Lenders in the equity interests of, and Collateral held by, such Subsidiary;
and (D) such diligence materials in respect of such Subsidiary (including, without limitation,
“know your customer”, liens, ERISA and labor matters) as the Administrative Agent shall reasonably
request. Each of the Loan Parties shall not become or agree to become a party

 

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to a Joint Venture
other than Permitted Investments and other investments permitted pursuant to Section 7.2.4 [Loans
and Investments]. For purposes of clarity, any Subsidiary organized under the laws of Canada or
any political subdivision thereof that is formed or acquired by the Canadian Borrower after the
Closing Date shall join this Agreement as a Guarantor of the Canadian Liabilities in accordance
with the terms of this Section 7.2.9.

7.2.10 Continuation of or Change in Business. Each of the Loan Parties shall not, and
shall not permit any of its Subsidiaries to, engage in any business other than (a) operation of
designer and name brand shoe stores and related accessories, or (b) operation of licensed shoe
departments, and any other business reasonably incidental thereto in each case, as to the existing
business, substantially as conducted and operated by such Loan Party or Subsidiary during the
present fiscal year, and such Loan Party or Subsidiary shall not permit any material change in such
business.

7.2.11 Fiscal Year. No Loan Party shall, nor shall permit any Subsidiary of any Loan
Party to, change its fiscal year from the fifty-two (52) or fifty-three (53) week period ending on
the Saturday nearest to January 31 in such year.

7.2.12 Issuance of Stock. Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, issue any additional shares of its capital stock or any options,
warrants or other rights in respect thereof, except that (i) DSW may issue shares of its capital
stock and options, warrants or other rights in respect thereof, and (ii) any other Loan Party or
Subsidiary may issue to such Person’s immediate parent any shares of such Person’s capital stock or
any options, warrants or other rights in respect thereof.

7.2.13 Changes in Organizational Documents. Other than as disclosed in that certain
confidential side letter of even date herewith, each of the Loan Parties shall not, and shall not
permit any of its Subsidiaries to, amend in any material respect its certificate of incorporation
(including any provisions or resolutions relating to capital stock), by-laws, certificate of
limited partnership, partnership agreement, certificate of formation, limited liability company
agreement or other organizational documents, without providing at least ten (10) Business Days’
prior written notice to the Administrative Agent and the Lenders and, in the event any change
(whether or not such change is deemed material by the Loan Parties) could reasonably be
expected to materially adversely affect the interests of the Lenders as determined by the
Administrative Agent in its sole discretion, obtaining the prior written consent of the Required
Lenders.

7.2.14 Capital Expenditures. Each of the Loan Parties shall not, and shall not permit
any of its Subsidiaries to, make any payments exceeding $75,000,000 in the aggregate in any fiscal
year on account of any Capital Expenditures.

7.2.15 Minimum Fixed Charge Coverage Ratio. From and after the occurrence of a
Trigger Event Election, the Loan Parties shall not permit the Fixed Charge Coverage Ratio,
calculated as of the end of each month for the twelve (12) fiscal months then ended, to be less
than 1.1 to 1.0.

 

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7.2.16 Agreements Restricting Dividends. Each of the Loan Parties covenants and
agrees that it shall not, and shall not permit any of its Subsidiaries to, enter into any Agreement
with any Person which restricts any of the Loan Parties’ right to pay dividends or other
distributions to any Borrower or any other Loan Party or to repay intercompany loans from any
Borrower to any other Loan Party.

7.2.17 DDAs; Credit Card Processors. No Loan Party shall open new Blocked Accounts
unless the Loan Parties shall have delivered to the Administrative Agent appropriate Blocked
Account Agreements consistent with the provisions of Section 7.1.10 [Cash Management] and otherwise
reasonably satisfactory to the Administrative Agent. No Loan Party shall maintain any bank
accounts or enter into any agreements with credit card processors other than the ones expressly
contemplated herein or in Section 7.1.10 [Cash Management].

7.2.18 Negative Pledges. Each of the Loan Parties covenants and agrees that it shall
not, and shall not permit any of its Subsidiaries to, enter into any Agreement with any Person
which, in any manner, whether directly or contingently, prohibits, restricts or limits the right of
any of the Loan Parties from granting any Liens to the Administrative Agent or the Lenders.

7.3 Reporting Requirements. The Loan Parties will furnish or cause to be furnished to
the Administrative Agent and each of the Lenders:

7.3.1 Quarterly Financial Statements; Monthly Financial Statements.

(i) Within forty-five (45) calendar days after the end of each of the first three fiscal
quarters in each fiscal year, financial statements of DSW, consisting of a consolidated balance
sheet, together with consolidating schedules with respect thereto, as of the end of such fiscal
quarter and related consolidated and consolidating statements of income, stockholders’ equity,
retained earnings and cash flows for the fiscal quarter then ended and the fiscal year through that
date, all in reasonable detail and certified (subject to normal year-end audit adjustments) by an
Authorized Officer of DSW as having been prepared in accordance with
GAAP, consistently applied, and setting forth in comparative form the respective financial
statements for the corresponding date and period in the previous fiscal year.

(ii) From and after the occurrence of a Trigger Event Election, within thirty (30) calendar
days after the end of each of the first two fiscal months in each fiscal quarter, financial
statements of DSW, consisting of a consolidated balance sheet, together with consolidating
schedules with respect thereto as of the end of such fiscal month and related consolidated and
consolidating statements of income, stockholders’ equity, retained earnings and cash flows for the
fiscal month then ended and the fiscal year through that date, all in reasonable detail and
certified (subject to normal year-end audit adjustments) by an Authorized Officer of DSW as having
been prepared in accordance with GAAP, consistently applied, and setting forth in comparative form
the respective financial statements for the corresponding date and period in the previous fiscal
year.

7.3.2 Annual Financial Statements. Within ninety (90) days after the end of each
fiscal year of DSW, financial statements of DSW consisting of a consolidated audited

 

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balance sheet as of the end of such fiscal year, together with consolidating schedules with respect thereto, and
related consolidated and consolidating statements of income, stockholders’ equity, retained
earnings and cash flows for the fiscal year then ended, all in reasonable detail and setting forth
in comparative form the financial statements as of the end of and for the preceding fiscal year,
and certified by independent certified public accountants of nationally recognized standing
reasonably satisfactory to the Administrative Agent. The certificate or report of accountants
shall be free of qualifications (other than any consistency qualification that may result from a
change in the method used to prepare the financial statements as to which such accountants concur)
and shall not indicate the occurrence or existence of any event, condition or contingency which
would materially impair the prospect of payment or performance of any covenant, agreement or duty
of any Loan Party under any of the Loan Documents.

7.3.3 Certificate of the Borrowers. Concurrently with the financial statements of DSW
furnished to the Administrative Agent and to the Lenders pursuant to Section 7.3.1
[Quarterly Financial Statements; Monthly Financial Statements] and Section 7.3.2 [Annual
Financial Statements], a certificate (each a “Compliance Certificate”) of DSW signed by an
Authorized Officer thereof, in the form of Exhibit 7.3.3.

7.3.4 Simplified Borrowing Base Certificates; Borrowing Base Certificates.

(i) Prior to the occurrence of a Borrowing Base Trigger Event, as soon as available, but in
any event within twenty (20) days following the end of each fiscal quarter, a certificate showing
the Simplified Borrowing Base for each of the Domestic Borrowers and the Canadian Borrower (a
“Simplified Borrowing Base Certificate”) as of the last day of such fiscal quarter, in the form of
Exhibit 7.3.4.1 (or such other form as the Administrative Agent may reasonably require from
time to time), appropriately completed, executed and delivered by an Authorized Officer of DSW.

(ii) From and after the occurrence of a Borrowing Base Trigger Event, as soon as available:
by the twentieth (20th) Business Day of each month (or with such greater frequency as
the Administrative Agent may require), a certificate showing the Borrowing Base and the
Canadian Borrowing Base (a “Borrowing Base Certificate”) as of the last day of the immediately
preceding month in the form of Exhibit 7.3.4.2 (or such other form as the Administrative
Agent may reasonably require from time to time), appropriately completed, executed and delivered by
an Authorized Officer of each of DSW and the Canadian Borrower, together with a detailed sales
register, a cash receipts journal and a purchase journal showing sales, receipts and purchases for
the preceding month.

7.3.5 Minimum Cash Requirement; DDAs. No later than the twentieth (20th)
day of each month, a certificate duly executed by the Borrowers certifying (i) that the Borrowers
had on hand the Minimum Cash Requirement at all times during the immediately preceding month,
together with supporting documentation evidencing such compliance, and (ii) as to the account
numbers and depository banks with respect to any DDAs opened since the date of the last
certification delivered pursuant to this Section 7.3.5, in each case in form and substance
reasonably satisfactory to the Administrative Agent.

7.3.6 Notices.

 

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7.3.6.1 Default. Promptly after any Authorized Officer of DSW has learned of the
occurrence of an Event of Default, a certificate signed by an Authorized Officer of such Loan Party
setting forth the details of such Event of Default and the action which such Loan Party proposes to
take with respect thereto.

7.3.6.2 Litigation. Promptly after the commencement thereof, notice of all actions,
suits, proceedings or investigations before or by any Official Body or any other Person against any
Loan Party or Subsidiary of any Loan Party which relate to the Collateral, involve a claim or
series of claims in excess of $10,000,000 or which if adversely determined would constitute a
Material Adverse Change.

7.3.6.3 Organizational Documents. Within the time limits set forth in and to the
extent required pursuant to Section 7.2.13 [Changes in Organizational Documents], any
amendment to the organizational documents of any Loan Party.

7.3.6.4 Erroneous Financial Information. Promptly in the event that any Loan Party or
any of such Loan Party’s accountants conclude or advise that any previously issued financial
statement, audit report or interim review should no longer be relied upon or that disclosure should
be made or action should be taken to prevent future reliance.

7.3.6.5 ERISA Event. Promptly upon the occurrence of any ERISA Event.

7.3.6.6 Change in Officers. Promptly after the occurrence thereof, any change in any
Loan Party’s President, chief executive officer, chief operating officer, and chief financial
officer (without regard to the title(s) actually given to the Persons discharging the duties
customarily discharged by officers with those titles).

7.3.6.7 Material Adverse Change. Promptly upon the occurrence of a Material Adverse
Change.

7.3.6.8 Change in Accountants. Promptly upon the occurrence of any discharge by DSW
of its present independent accountants or any withdrawal or resignation by such independent
accountants from their acting in such capacity.

7.3.6.9 Consignment or Other Arrangement. Promptly following the occurrence thereof,
any Loan Party’s entering into with any other Person (other than a Loan Party) a consignment
arrangement or licensing or other similar agreement (whether for intellectual property, leased
departments in stores or otherwise).

7.3.6.10 Leases; Licenses. Concurrently with the delivery of the financial statements
described in Section 7.3.1(i) [Quarterly Financial Statements] and Section 7.3.2
[Annual Financial Statements], any Loan Party’s entering into a Capital Lease, operating lease or
license agreement during the three (3) month period ending as of the date of such financial
statements.

 

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7.3.6.11 Trigger Event. Promptly after any Authorized Officer of DSW has learned of
the occurrence of a Trigger Event, a certificate signed by an Authorized Officer of DSW setting
forth the details of such Trigger Event.

7.3.6.12 SEC Reports; Shareholder Communications. (i) Promptly upon any Borrower’s
filing any reports (including Forms 10-K, 10-Q and 8-K, registration statements and prospectuses
and other shareholder communications) with the Securities and Exchange Commission, notice of such
filing, and (ii) promptly upon their becoming available to DSW, copies of correspondence from the
SEC, other than routine general communications from the SEC.

7.3.6.13 Other Reports. Promptly upon their becoming available to the Loan Parties:

(i) Annual Budget. The annual budget and any forecasts or projections of the Loan
Parties, to be supplied on the earlier of (a) five (5) Business Days following the approval thereof
by DSW’s board of directors, or (b) March 31 of each year.

(ii) Management Letters. Any reports including management letters submitted to the
Loan Parties by independent accountants in connection with any annual, interim or special audit.

(iii) Other Information. Such other reports and information as any of the Lenders may
from time to time reasonably request to the extent the Loan Parties have the ability to generate
such information based on their then current systems.

8. DEFAULT

8.1 Events of Default. An Event of Default shall mean the occurrence or existence of
any one or more of the following events or conditions (whatever the reason therefor and whether
voluntary, involuntary or effected by operation of Law):

8.1.1 Payments Under Loan Documents. Any Loan Party shall fail to pay any principal
of any Loan (including scheduled installments, mandatory prepayments or the payment due at
maturity), Reimbursement Obligation or Letter of Credit or Obligation or any interest on any Loan,
Reimbursement Obligation or Letter of Credit Obligation on the date on which such principal,
interest or other amount becomes due in accordance with the terms hereof or thereof;

8.1.2 Breach of Warranty. Any representation or warranty made at any time by any of
the Loan Parties herein or by any of the Loan Parties in any other Loan Document, or in any
certificate, other instrument or statement furnished pursuant to the provisions hereof or thereof,
shall prove to have been false or misleading in any material respect as of the time it was made or
furnished;

8.1.3 Breach of Certain Covenants. Any of the Loan Parties shall default in the
observance or performance of any covenant contained in Section 7.1.2 [Payment of
Liabilities, Including Taxes, Etc.], Section 7.1.5 [Visitation Rights], Section
7.1.10 [Cash Management] or Section 7.2 [Negative Covenants];

 

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8.1.4 Breach of Other Covenants. Any of the Loan Parties shall default in the
observance or performance of any other covenant, condition or provision hereof or of any other Loan
Document and such default shall continue unremedied for a period of ten (10) Business Days
following the earlier to occur of (i) the Administrative Agent’s notifying an Authorized Officer of
DSW of such default, or (ii) the obtaining of knowledge of such default by any Authorized Officer
of any Loan Party;

8.1.5 Defaults in Indebtedness; Leases. (a) A breach, default or event of default
shall occur at any time under the terms of any other agreement involving borrowed money or the
extension of credit or any other Indebtedness under which any Loan Party or Subsidiary of any Loan
Party may be obligated as a borrower or guarantor in excess of $5,000,000 in the aggregate, or (b)
a breach, default or event of default shall occur at any time under the terms of a lease pursuant
to which a Loan Party is the lessee, where the aggregate of such lease and all other such leases
with respect to which there exists a breach, default or event of default, constitutes more than
five percent (5%) of all leases of the Loan Parties existing from time to time that could be
terminated due to a default by a Loan Party thereunder (whether or not the subject creditor or
lessor takes any action on account of such occurrence);

8.1.6 Final Judgments or Orders. Any final judgments or orders for the payment of
money in excess of $10,000,000 in the aggregate shall be entered against any Loan Party by a court
having jurisdiction in the premises, which judgment is not discharged, vacated, bonded or stayed
pending appeal within a period of forty-five (45) days from the date of entry;

8.1.7 Loan Document Unenforceable. Except for Simplified Borrowing Base Certificates,
Borrowing Base Certificates and Compliance Certificates that are customarily
updated (and have been so updated) pursuant to the terms of this Agreement, any of the Loan
Documents shall cease to be legal, valid and binding agreements enforceable against the party
executing the same or such party’s successors and assigns (as permitted under the Loan Documents)
in accordance with the respective terms thereof or shall in any way be terminated (except in
accordance with its terms) or become or be declared ineffective or inoperative as a result of any
action or inaction by any Person other than the Administrative Agent, the Issuing Lender or any
Lender, or shall in any way be challenged or contested or cease to give or provide the respective
Liens, security interests, rights, titles, interests, remedies, powers or privileges intended to be
created thereby;

8.1.8 Uninsured Losses; Proceedings Against Assets. There shall occur any material
uninsured damage to or loss, theft or destruction of any of the Collateral in excess of $5,000,000
or the Collateral or any other of the Loan Parties’ or any of their Subsidiaries’ assets with a
book value (determined in accordance with GAAP) in excess of $5,000,000 in the aggregate are
attached, seized, levied upon or subjected to a writ or distress warrant; or such come within the
possession of any receiver, monitor, interim monitor, trustee, custodian or assignee for the
benefit of creditors and the same is not cured within forty-five (45) days thereafter;

8.1.9 Events Relating to Plans and Benefit Arrangements. (i) An ERISA Event occurs
with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be
expected to result in liability of any Borrower under Title IV of ERISA to the

 

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Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount that is reasonably likely to result in a
Material Adverse Change, (ii) any Borrower or any ERISA Affiliate fails to pay when due, after the
expiration of any applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount that is
reasonably likely to result in a Material Adverse Change, (iii) or any similar event or condition
shall occur or exist with respect to a Plan with respect to the Canadian Borrower that could, in
the Administrative Agent’s judgment, subject the Canadian Borrower or any of its Subsidiaries to
any tax, penalty or other liabilities under the Pension Benefits Act (Ontario) or any other
applicable Laws, in an aggregate amount that is reasonably likely to result in a Material Adverse
Change, or (iv) the Canadian Borrower or any of its Subsidiaries is in default with respect to
required payments to a Plan or any Lien arises (save for contribution amounts not yet due) in
connection with any Plan in an aggregate amount that is reasonably likely to result in a Material
Adverse Change.

8.1.10 Change of Control. Except as provided in a confidential side letter of even
date herewith, (i) any person or group of persons (within the meaning of Sections 13(d) or 14(a) of
the Securities Exchange Act of 1934, as amended) shall have acquired beneficial ownership of
(within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under said
Act) twenty-five percent (25%) or more of the voting capital stock of any Loan Party; or (ii)
within a period of twelve (12) consecutive calendar months, individuals who were directors of a
Loan Party on the first day of such period shall cease to constitute a majority of the board of
directors of such Loan Party other than in respect of any death, disability, resignation, or
replacement of any director by a majority of such directors or replacement directors.

8.1.11 Relief Proceedings. (i) A Relief Proceeding shall have been instituted against
any Loan Party and such Relief Proceeding shall remain undismissed or unstayed and in effect for a
period of forty-five (45) consecutive days or such court shall enter a decree or order granting any
of the relief sought in such Relief Proceeding, (ii) any Loan Party institutes, or takes any action
in furtherance of, a Relief Proceeding, or (iii) any Loan Party ceases to be Solvent or admits in
writing its inability to pay its debts as they mature.

8.2 Consequences of Event of Default.

8.2.1 Events of Default Other Than Bankruptcy, Insolvency or Reorganization
Proceedings. If an Event of Default specified under Sections 8.1.1 through
8.1.10 shall occur and be continuing, the Lenders and the Administrative Agent shall be
under no further obligation to make Loans and the Issuing Lender shall be under no obligation to
issue Letters of Credit and the Administrative Agent may, and upon the request of the Required
Lenders, shall (i) by written notice to the Borrowers, declare the unpaid principal amount of the
Notes then outstanding and all interest accrued thereon, any unpaid fees and all other Indebtedness
of the Borrowers to the Lenders hereunder and thereunder to be forthwith due and payable, and the
same shall thereupon become and be immediately due and payable to the Administrative Agent for the
benefit of each Lender without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived, and (ii) require the Borrowers to, and the Borrowers shall
thereupon, Cash Collateralize all outstanding Letters of Credit, and each Borrower hereby pledges
to the

 

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Administrative Agent and the Lenders, and grants to the Administrative Agent and the Lenders
a security interest in, all such cash as security for such Obligations; and

8.2.2 Bankruptcy, Insolvency or Reorganization Proceedings. If an Event of Default
specified under Section 8.1.11 [Relief Proceedings] shall occur, the Lenders shall be under
no further obligations to make Loans hereunder and the Issuing Lender shall be under no obligation
to issue Letters of Credit and the unpaid principal amount of the Loans then outstanding and all
interest accrued thereon, any unpaid fees and all other Indebtedness of the Borrowers to the
Lenders hereunder and thereunder shall be immediately due and payable, without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived; and

8.2.3 Set-off. If an Event of Default shall have occurred and be continuing, with the
prior written consent of the Administrative Agent or the Required Lenders, each Lender, the Issuing
Lender, and each of their respective Affiliates and any Participant of such Lender or Affiliate
which has agreed in writing to be bound by the provisions of Section 4.3 [Sharing of
Payments] is hereby authorized at any time and from time to time, to the fullest extent permitted
by applicable Law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever
currency) at any time owing by such Lender, the Issuing Lender or any such Affiliate or Participant
to or for the credit or the account of any Loan Party against any and all of the Obligations of
such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such
Lender, the Issuing Lender, Affiliate or Participant, irrespective of whether or not such Lender,
Issuing Lender, Affiliate or Participant shall have made any demand under this Agreement or any
other Loan Document and although such Obligations of the Borrowers or such other Loan Party may be
contingent or unmatured or are owed to a branch or
office of such Lender or the Issuing Lender different from the branch or office holding such
deposit or obligated on such Indebtedness. Notwithstanding the foregoing, any amounts of the
Canadian Borrower so offset shall be applied solely to the Canadian Liabilities. The rights of each
Lender, the Issuing Lender and their respective Affiliates and Participants under this Section are
in addition to other rights and remedies that such Lender, the Issuing Lender or their respective
Affiliates and Participants may have under any Loan Document in respect of any obligation or
liability arising in connection with this Agreement or any other Loan Document. Each Lender and
the Issuing Lender agrees to notify the Borrowers and the Administrative Agent promptly after any
such setoff and application; provided that the failure to give such notice shall not affect the
validity of such setoff and application; and

8.2.4 Application of Proceeds. From and after the date on which the Administrative
Agent has taken any action pursuant to this Section 8.2 and until all Obligations of the
Loan Parties have been paid in full, any and all proceeds received by the Administrative Agent from
any sale or other disposition of the Collateral, or any part thereof, or the exercise of any other
remedy by the Administrative Agent, shall be applied as follows:

8.2.4.1 With respect to Collateral and Payments from the Domestic Borrowers and Guarantors:

 

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First, to payment of that portion of the Obligations (other than Canadian
Liabilities) constituting fees, indemnities, costs and expenses and other amounts (including
fees, charges and disbursements of counsel to the Administrative Agent and amounts payable
under Section 3.4) payable to the Administrative Agent;

Second, to payment of that portion of the Obligations (other than Canadian
Liabilities) constituting indemnities, costs and expenses, and other amounts (other than
principal, interest and fees) payable to the Domestic Lenders and the Issuing Lender
(including costs and expenses to the respective Domestic Lenders and the Issuing Lender and
amounts payable under Section 3.4), ratably among them in proportion to the amounts
described in this clause Second payable to them;

Third, to the extent not previously reimbursed by the Domestic Lenders, to
payment to the Administrative Agent of that portion of the Obligations constituting
principal and accrued and unpaid interest on any Permitted Overadvances (other than those
made to the Canadian Borrower);

Fourth, to the extent that Swing Loans have not been refinanced by a Revolving
Credit Loan provided by the Domestic Lenders pursuant to Section 2.6.5, payment to
the Swing Lender of that portion of the Obligations constituting accrued and unpaid interest
on the Swing Loans;

Fifth, to the extent that Swing Loans have not been refinanced by a Revolving
Credit Loan provided by the Domestic Lenders pursuant to Section 2.6.5, to payment
to the Swing Lender of that portion of the Obligations constituting unpaid principal of the
Swing Loans;

Sixth, to payment of that portion of the Obligations constituting accrued and
unpaid interest on the Revolving Credit Loans, Reimbursement Obligations, Letter of Credit
Borrowings and other Obligations (excluding the Canadian Liabilities and any Obligations of
the type specified in clauses (ii) and (iii) of the definition thereof), and fees (including
Letter of Credit Fees), ratably among the Domestic Lenders and the Issuing Lender in
proportion to the respective amounts described in this clause Sixth payable to them;

Seventh, to payment of that portion of the Obligations constituting unpaid
principal of the Revolving Credit Loans, Reimbursement Obligations and Letter of Credit
Borrowings (other than, in each case, Canadian Liabilities), ratably among the Domestic
Lenders and the Issuing Lender in proportion to the respective amounts described in this
clause Seventh held by them;

Eighth, to the Administrative Agent for the account of the Issuing Lender, to
Cash Collateralize the aggregate undrawn amount of Letters of Credit issued on behalf or for
the account of the Domestic Borrowers or Guarantors;

Ninth, to payment of all other Obligations (including without limitation the
cash collateralization of any unliquidated indemnification obligations but excluding the
Canadian Liabilities and any Obligations of the type specified in clauses (ii) and (iii) of

 

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the definition thereof), ratably among the Administrative Agent, the Issuing Lender and the
Domestic Lenders in proportion to the respective amounts described in this clause
Ninth held by them;

Tenth, to payment of the Obligations of the type specified in clauses (ii) and
(iii) of the definition thereof, ratably among the Administrative Agent, the Issuing Lender
and the Domestic Lenders in proportion to the respective amounts described in this clause
Tenth held by them;

Eleventh, to payment of the Canadian Liabilities in the order set forth in
Section 8.2.4.2 hereof;

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

Subject to Section 2.9.3, amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit issued on behalf or for the account of the Domestic
Borrowers or Guarantors pursuant to clause Eighth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on deposit as
Cash Collateral after all Letters of Credit have either been fully drawn or expired, such
remaining amount shall be applied to the other Obligations, if any, in the order set forth
above.

8.2.4.2 With respect to Collateral and Payments From the Canadian Borrower:

First, to payment of that portion of the Canadian Liabilities constituting
fees, indemnities, costs and expenses and other amounts (including fees, charges and
disbursements of counsel to the Administrative Agent and amounts payable under Section
3.4) payable to the Administrative Agent;

Second, to payment of that portion of the Canadian Liabilities constituting
indemnities, costs and expenses, and other amounts (other than principal, interest and fees)
payable to the Canadian Lenders and the Issuing Lender (including costs and expenses to the
respective Canadian Lenders and the Issuing Lender and amounts payable under Section
3.4), ratably among them in proportion to the amounts described in this clause
Second payable to them;

Third, to the extent not previously reimbursed by the Canadian Lenders, to
payment to the Administrative Agent of that portion of the Canadian Liabilities constituting
principal and accrued and unpaid interest on any Permitted Overadvances to the Canadian
Borrower;

Fourth, to payment of that portion of the Canadian Liabilities constituting
accrued and unpaid interest on the Revolving Credit Loans, Reimbursement Obligations, Letter
of Credit Borrowings, in each case, made to or for the account of the Canadian Borrower, and
fees (including Letter of Credit Fees), ratably among the Canadian Lenders and the

 

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Issuing Lender in proportion to the respective amounts described in this clause Fourth
payable to them;

Fifth, to payment of that portion of the Canadian Liabilities constituting
unpaid principal of the Revolving Credit Loans, Reimbursement Obligations and Letter of
Credit Borrowings, in each case, made to or for the account of the Canadian Borrower,
ratably among the Canadian Lenders and the Issuing Lender in proportion to the respective
amounts described in this clause Fifth held by them;

Sixth, to the Administrative Agent for the account of the Issuing Lender, to
Cash Collateralize the aggregate undrawn amount of Letters of Credit issued on behalf or for
the account of the Canadian Borrower;

Seventh, to payment of all other Canadian Liabilities (including without
limitation the cash collateralization of any unliquidated indemnification obligations,
ratably among the Administrative Agent, the Issuing Lender and the Canadian Lenders in
proportion to the respective amounts described in this clause Seventh held by them;

Eighth, to payment of the Canadian Liabilities of the type specified in clauses
(ii) and (iii) of the definition thereof, ratably among the Administrative Agent, the
Issuing Lender and the Canadian Lenders in proportion to the respective amounts described in
this clause Tenth held by them;

Last, the balance, if any, after all of the Canadian Lenders have been
indefeasibly paid in full, to the Canadian Borrower or as otherwise required by Law.

Subject to Section 2.9.3, amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit issued for the account of the Canadian Borrower pursuant
to clause Sixth above shall be applied to satisfy drawings under such Letters of
Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters
of Credit have either been fully drawn or expired, such remaining amount shall be applied to
the other Canadian Liabilities, if any, in the order set forth above.

9. THE ADMINISTRATIVE AGENT

9.1 Appointment and Authority. Each of the Lenders and the Issuing Lender hereby
irrevocably appoints PNC to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the terms hereof or
thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Section 9 are solely for the benefit of the Administrative Agent, the
Lenders and the Issuing Lender, and none of the Borrowers or any other Loan Party shall have rights
as a third party beneficiary of any of such provisions.

9.2 Rights as a Lender. The Person serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise requires,

 

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include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with any Loan Party or any
Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder
and without any duty to account therefor to the Lenders.

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

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

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

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

The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Section 10.1 [Modifications, Amendments
or Waivers] and Section 8.2 [Consequences of Event of Default]) or (ii) in the absence of
its own gross negligence or willful misconduct. The Administrative Agent shall be deemed not to
have knowledge of any Potential Default or Event of Default unless and until notice describing such
Potential Default or Event of Default is given to the Administrative Agent by the Borrowers, a
Lender or the Issuing Lender.

The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Potential Default or Event of Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in Section 6
[Conditions of Lending and Issuance of Letters of Credit] or

 

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elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

9.4 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Issuing Lender,
the Administrative Agent may presume that such condition is satisfactory to such Lender or the
Issuing Lender unless the Administrative Agent shall have received notice to the contrary from such
Lender or the Issuing Lender prior to the making of such Loan or the issuance of such Letter of
Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Loan
Parties), 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.

9.5 Delegation of Duties. The Administrative Agent may perform any and all of its
duties and exercise its rights and powers hereunder or under any other Loan Document by or through
any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this Section 
9 shall apply to any such sub-agent and to the Related Parties of the Administrative
Agent and any such sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities as Administrative
Agent.

9.6 Resignation of Administrative Agent. The Administrative Agent may at any time
give notice of its resignation to the Lenders, the Issuing Lender and the Borrowers. Upon receipt
of any such notice of resignation, the Required Lenders shall have the right, with approval from
the Borrowers (so long as no Event of Default has occurred and is continuing), to appoint a
successor, such approval not to be unreasonably withheld or delayed. If no such successor shall
have been so appointed by the Required Lenders and shall have accepted such appointment within
thirty (30) days after the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders and the Issuing Lender, appoint a
successor Administrative Agent; provided that if the Administrative Agent shall notify the
Borrowers and the Lenders that no qualifying Person has accepted such appointment, then such
resignation shall nonetheless become effective in accordance with such notice and (i) the retiring
Administrative Agent shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held by the Administrative
Agent on behalf of the Lenders or the Issuing Lender under any of the Loan Documents, the retiring
Administrative Agent shall continue to hold such collateral security until such time as a successor
Administrative Agent is appointed) and (ii) all payments, communications and determinations
provided to be made by, to or through the Administrative

 

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Agent shall instead be made by or to each
Lender and the Issuing Lender directly, until such time as the Required Lenders appoint a successor
Administrative Agent as provided for above in this Section 9.6. Upon the acceptance of a
successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its
duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section). The fees payable by the Borrowers to a successor
Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed
among the Borrowers and such successor. After the retiring Administrative Agent’s resignation
hereunder and under the other Loan Documents, the provisions of this Section 9 and
Section 10.3 [Expenses; Indemnity; Damage Waiver] shall continue in effect for the benefit
of such retiring Administrative Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while the retiring
Administrative Agent was acting as Administrative Agent.

If PNC resigns as Administrative Agent under this Section 9.6, PNC shall also resign
as an Issuing Lender. Upon the appointment of a successor Administrative Agent hereunder, such
successor shall (i) succeed to all of the rights, powers, privileges and duties of PNC as the
retiring Issuing Lender and Administrative Agent and PNC shall be discharged from all of its
respective duties and obligations as Issuing Lender and Administrative Agent under the Loan
Documents, and (ii) issue letters of credit in substitution for the Letters of Credit issued by
PNC, if any, outstanding at the time of such succession or make other arrangement satisfactory to
PNC to effectively assume the obligations of PNC with respect to such Letters of Credit.

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

9.8 No Other Duties, etc. Anything herein to the contrary notwithstanding, none of
the Syndication Agent, the Documentation Agent or the Managing 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 a Lender or an Issuing Lender hereunder.

9.9 Administrative Fee. The Borrowers shall pay to the Administrative Agent a
nonrefundable fee (the “Administrative Fee”) under the terms of the Fee Letter.

9.10 Authorization to Release Collateral and Guarantors. The Lenders and Issuing
Lenders authorize the Administrative Agent to release (i) any Collateral consisting of assets or

 

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equity interests sold or otherwise disposed of in a sale or other disposition or transfer permitted
under Section 7.2.7 [Disposition of Assets or Subsidiaries] or Section 7.2.6
[Liquidations, Mergers, Consolidations, Amalgamations, Acquisitions], and (ii) any Guarantor from
its obligations under the Guaranty Agreement if the ownership interests in such Guarantor are sold
or otherwise disposed of or transferred to persons other than Loan Parties or Subsidiaries of the
Loan Parties in a transaction permitted under Section 7.2.7 [Disposition of Assets or
Subsidiaries] or Section 7.2.6 [Liquidations, Mergers, Consolidations, Amalgamations,
Acquisitions]. The Administrative Agent shall have no liability whatsoever to any Lender or
Issuing Lender as a result of any release of Collateral by it as permitted (or which the
Administrative Agent in good faith believes to be permitted) by this Agreement or any other Loan
Document.

9.11 No Reliance on Administrative Agent’s Customer Identification Program. Each
Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or
assignees, may rely on the Administrative Agent to carry out such Lender’s, Affiliate’s,
participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”),
or any other Anti-Terrorism Law, including any programs involving any of the following items
relating to or in connection with any of the Loan Parties, their Affiliates or their agents, the
Loan Documents or the transactions hereunder or contemplated hereby: (i) any identity verification
procedures, (ii) any recordkeeping, (iii) comparisons with government lists, (iv) customer notices
or (v) other procedures required under the CIP Regulations or such other Laws.

9.12 Defaulting Lender.

9.12.1 Failure or Refusal to Comply with Lender Obligations. If for any reason any
Lender shall become a Defaulting Lender or shall fail or refuse to abide by its obligations under
this Agreement, including without limitation its obligation to make available to the Administrative
Agent its Ratable Share of any Loans, expenses or setoff or purchase its Ratable Share of a
participation interest in the Swing Loans or Letter of Credit Borrowings and such failure is not
cured within one (1) Business Day after receipt from the Administrative Agent of written notice
thereof, then, in addition to the rights and remedies that may be available to the Administrative
Agent and the other Lenders, the Loan Parties or any other party at law or in equity, and not in
limitation thereof, (i) such Defaulting Lender’s right to participate in the administration of, or
decision-making rights related to, the Obligations, this Agreement or the other Loan Documents
shall be suspended during the pendency of such failure or refusal, and (ii) a Defaulting Lender
shall be deemed to have assigned any and all payments due to it from the Loan Parties, whether on
account of outstanding Loans, interest, fees or otherwise, to the remaining non-Defaulting Lenders
for application to, and reduction of, their proportionate shares of all outstanding Obligations
until, as a result of application of such assigned payments the Lenders’ respective Ratable Shares
of all outstanding Obligations shall have returned to those in effect immediately prior to such
delinquency and without giving effect to the nonpayment causing such delinquency, and (iii) at the
option of the Administrative Agent, any amount payable to such Defaulting Lender hereunder (whether
on account of principal, interest, fees or otherwise) shall, in lieu of being distributed to such
Defaulting Lender, be retained by the

 

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Administrative Agent as cash collateral for future funding
obligations of the Defaulting Lender in respect of any Loan or existing or future participating
interest in any Swing Loan or Letter of Credit. The Defaulting Lender’s decision-making and
participation rights and rights to payments as set forth in clauses (i) and (ii) hereinabove shall
be restored only upon the payment by the Defaulting Lender of its Ratable Share of any Obligations,
any participation obligation, or expenses as to which it is delinquent, together with interest
thereon at a rate per annum equal to the rate applicable to Loans under the Revolving Credit Base
Rate Option from the date when originally due until the date upon which any such amounts are
actually paid.

9.12.2 Non-Defaulting Lender Rights. The non-Defaulting Lenders shall also have the
right, but not the obligation, in their respective, sole and absolute discretion, to cause the
termination and assignment, without any further action by the Defaulting Lender for no cash
consideration (pro rata, based on the respective Commitments of those Lenders
electing to exercise such right), of the Defaulting Lender’s Commitment to fund future Loans. Upon
any such purchase of the Ratable Percentage of any Defaulting Lender, the Defaulting Lender’s share
in future Credit Extensions and its rights under the Loan Documents with respect thereto shall
terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents
reasonably requested to surrender and transfer such interest, including, if so requested, an
Assignment and Acceptance.

9.12.3 Indemnification. Each Defaulting Lender shall indemnify the Administrative
Agent and each non-Defaulting Lender from and against any and all loss, damage or expenses,
including but not limited to reasonable attorneys’ fees and funds advanced by the Administrative
Agent or by any non-Defaulting Lender, on account of a Defaulting Lender’s
failure to timely fund its Ratable Share of a Loan or to otherwise perform its obligations
under the Loan Documents.

9.12.4 Risk Participation.

9.12.4.1 Upon the earlier of Substantial Liquidation or the Determination Date, if all
Canadian Liabilities have not been repaid in full, then the Domestic Lenders shall purchase from
the Canadian Lenders (on the date of Substantial Liquidation or the Determination Date, as
applicable) such portion of the Canadian Liabilities so that each Lender shall, after giving effect
to any such purchases, hold its Liquidation Percentage of all outstanding Canadian Liabilities and
all other Obligations.

9.12.4.2 Upon the earlier of Substantial Liquidation or the Determination Date, if all
Obligations of the Domestic Borrowers (other than those relating to the Canadian Liabilities) have
not been repaid in full, then the Canadian Lenders shall purchase from the Domestic Lenders (on the
date of Substantial Liquidation or the Determination Date, as applicable) such portion of such
Obligations so that each Lender shall, after giving effect to any such purchases, hold its
Liquidation Percentage of all outstanding Obligations of the Domestic Borrowers and the Canadian
Liabilities.

9.12.4.3 All purchases of Obligations under this Section 9.12.4 shall be at par, for cash,
with no premium, discount or reduction.

 

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9.12.4.4 No Lender shall be responsible for any default of any other Lender in respect of any
other Lender’s obligations under this Section 9.12.4, nor shall the obligations of any Lender
hereunder be increased as a result of such default of any other Lender. Each Lender shall be
obligated to the extent provided herein regardless of the failure of any other Lender to fulfill
its obligations hereunder.

9.12.4.5 Each Lender shall execute such instruments, documents and agreements and do such
other actions as may be necessary or proper in order to carry out more fully the provisions and
purposes of this Section 9.12.4 and the purchase of Obligations or the Canadian Liabilities, as
applicable, as provided herein.

9.12.4.6 The obligations of each Lender under this Section 9.12.4 are irrevocable and
unconditional and shall not be subject to any qualification or exception whatsoever including,
without limitation, lack of validity or enforceability of this Agreement or any of the Loan
Documents or the existence of any claim, setoff, defense or other right which any Loan Party may
have at any time against any of the Lenders.

9.12.4.7 No fees required to be paid on any assignment pursuant to Section 10.8.2(iv) of this
Agreement shall be payable in connection with any assignment under this Section 9.12.4.

10. MISCELLANEOUS

10.1 Modifications, Amendments or Waivers. With the written consent of the Required
Lenders, the Administrative Agent, acting on behalf of all the Lenders, and the
Borrowers, on behalf of the Loan Parties, may from time to time enter into written agreements
amending or changing any provision of this Agreement or any other Loan Document or the rights of
the Lenders or the Loan Parties hereunder or thereunder, or may grant written waivers or consents
hereunder or thereunder. Any such agreement, waiver or consent made with such written consent
shall be effective to bind all the Lenders and the Loan Parties; provided, that no such
agreement, waiver or consent may be made which will:

10.1.1 Increase of Commitment. Increase the amount of the Revolving Credit Commitment
or Canadian Commitment of any Lender hereunder without the consent of such Lender;

10.1.2 Extension of Payment; Reduction of Principal Interest or Fees; Modification of
Terms of Payment. Whether or not any Loans are outstanding, extend the Expiration Date or the
time for payment of principal or interest of any Loan (excluding the due date of any mandatory
prepayment of a Loan), the Commitment Fee or any other fee payable to any Lender, or reduce the
principal amount of or the rate of interest borne by any Loan or reduce the Commitment Fee or any
other fee payable to any Lender, without the consent of each Lender directly affected thereby;

10.1.3 Release of Collateral or Guarantor. Except for sales of assets permitted by
Section 7.2.7 [Disposition of Assets or Subsidiaries], release all or substantially all of
the Collateral or any Guarantor from its Obligations under the Guaranty Agreement without the
consent of all Lenders (other than Defaulting Lenders); or

 

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10.1.4 Availability. Modify the definition of “Simplified Borrowing Base”, “Borrowing
Base”, “Revolving Credit Availability”, “Canadian Availability”, “Canadian Borrowing Base” or any
component definition thereof such the amounts available for borrowing by the Borrowers hereunder
would be increased thereby, without the consent of all Lenders (other than Defaulting Lenders); or

10.1.5 Miscellaneous. Amend Section 4.2 [Pro Rata Treatment of Lenders;
Repayment of Advances], Section 9.3 [Exculpatory Provisions, Etc.], Section 4.3
[Sharing of Payments by Lenders] or this Section 10.1, or alter any provision regarding the
pro rata treatment of the Lenders or requiring all Lenders to authorize the taking of any action or
reduce any percentage specified in the definition of Required Lenders, in each case without the
consent of all of the Lenders (other than Defaulting Lenders);

provided that no agreement, waiver or consent which would modify the interests, rights or
obligations of the Administrative Agent or the Issuing Lender may be made without the written
consent of the Administrative Agent or the Issuing Lender, as applicable, provided,
further that, if in connection with any proposed waiver, amendment or modification referred
to in Sections 10.1.1 through 10.1.5 above, the consent of the Required Lenders is
obtained but the consent of one or more of such other Lenders whose consent is required is not
obtained (each a “Non-Consenting Lender”), then the Borrowers shall have the right to replace any
such Non-Consenting Lender with one or more replacement Lenders pursuant to Section 4.6.2
[Replacement of a Lender]. Notwithstanding anything to the contrary herein, no Deteriorating
Lender or Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or Consent hereunder, except that the Commitment of such Lender may not be increased or
extended without the consent of such Lender.

10.2 No Implied Waivers; Cumulative Remedies. No course of dealing and no delay or
failure of the Administrative Agent or any Lender in exercising any right, power, remedy or
privilege under this Agreement or any other Loan Document shall affect any other or future exercise
thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude
any further exercise thereof or of any other right, power, remedy or privilege. The rights and
remedies of the Administrative Agent and the Lenders under this Agreement and any other Loan
Documents are cumulative and not exclusive of any rights or remedies which they would otherwise
have.

10.3 Expenses; Indemnity; Damage Waiver.

10.3.1 Costs and Expenses. The Loan Parties shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent, the Arranger and their respective
Affiliates (including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent and the Arranger), and shall pay all fees and time charges and disbursements
for attorneys who may be employees of the Administrative Agent or the Arranger, in connection with
the syndication of the credit facilities provided for herein, the preparation, negotiation,
execution, delivery and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all out-of-pocket expenses
incurred by the Issuing Lender in connection with the issuance,

 

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amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder, (iii) all out-of-pocket expenses
incurred by the Administrative Agent, the Arranger, any Lender or the Issuing Lender (including the
reasonable fees, charges and disbursements of any counsel for the Administrative Agent, the
Arranger, any Lender or the Issuing Lender), and shall pay all fees and time charges for attorneys
who may be employees of the Administrative Agent, the Arranger, any Lender or the Issuing Lender,
in connection with the enforcement or protection of its rights (A) in connection with this
Agreement and the other Loan Documents, including its rights under this Section, or (B) in
connection with the Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Loans or Letters of Credit, and (iv) all reasonable out-of-pocket expenses of the
Administrative Agent’s regular employees and agents engaged periodically to perform audits of the
Loan Parties’ books, records and business properties. The Administrative Agent shall use
reasonable efforts to minimize expenses and shall furnish estimates of the expenses in respect of
audits and appraisals to be undertaken after the Closing Date under the Loan Documents. The
Administrative Agent agrees (i) to advise the Borrowers upon its becoming aware that actual
expenses in respect of such audits and appraisals will likely exceed the estimates previously
provided therefor, and (ii) that the Administrative Agent shall not charge the Borrowers’ account
with respect to such expenses until the Borrowers have had a reasonable opportunity to review the
invoices with respect thereto, it being understood that all such expenses with respect to the
audits and appraisals shall be paid as and when due hereunder. The Administrative Agent agrees to
provide the Borrowers with (i) a preliminary billing statement five (5) days before any payments
referenced therein are due, and (ii) a final billing
statement one (1) day before any payments referenced therein are due, it being understood that
all such payments shall be made as and when due hereunder.

10.3.2 Indemnification by the Loan Parties. The Loan Parties shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities
and related expenses (including the fees, charges and disbursements of any counsel for any
Indemnitee), and shall indemnify and hold harmless each Indemnitee from all fees and time charges
and disbursements for attorneys who may be employees of any Indemnitee, incurred by any Indemnitee
or asserted against any Indemnitee by any third party or by the Borrowers or any other Loan Party
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby,
the performance or nonperformance by the parties hereto of their respective obligations hereunder
or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan
or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by
the Issuing Lender to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) breach of representations, warranties or covenants of the Loan Parties under the
Loan Documents, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, including any such items or losses relating to or arising under
Environmental Laws or pertaining to environmental matters, whether based on contract, tort or any
other theory, whether brought by a third party or by any Borrower or any other Loan Party, and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee,

 

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be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent jurisdiction by final
and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such
Indemnitee or (y) result from a claim brought by any Borrower or any other Loan Party against an
Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other
Loan Document, if such Borrower or such other Loan Party has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent jurisdiction.
Notwithstanding anything to the contrary herein, the Canadian Borrower’s obligation to pay and
indemnify shall be limited to matters, fees, expenses charges and disbursement, or losses, claims,
damages and liabilities which the Administrative Agent determines in its reasonable judgment to be
properly attributable or allocable to the Canadian Borrower.

10.3.3 Reimbursement by Lenders. To the extent that any Loan Party for any reason
fails to indefeasibly pay any amount required under Section 10.3.1 [Costs and Expenses] or
Section 10.3.2 [Indemnification by the Loan Parties] to be paid by it to the Administrative
Agent (or any sub-agent thereof), the Issuing Lender or any Related Party of any of the foregoing,
each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the
Issuing Lender or such Related Party, as the case may be, such Lender’s Ratable Share (determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the Issuing Lender in its capacity as
such, or against any Related Party of any of the foregoing acting for the Administrative Agent
(or any such sub-agent) or Issuing Lender in connection with such capacity.

10.3.4 Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Law, no Loan Party shall assert, and hereby waives, any claim against any Indemnitee, on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.
No Indemnitee referred to in Section 10.3.2 [Indemnification by Loan Parties] shall be
liable for any damages arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan Documents or the
transactions contemplated hereby or thereby unless as a result of the Indemnitee’s gross negligence
or willful misconduct, as determined by a final non-appealable judgment of a court of competent
jurisdiction.

10.3.5 Payments. All amounts due under this Section shall be payable not later than
ten (10) days after (i) written demand therefor and (ii) the furnishing to an Authorized Officer of
DSW of supporting documentation.

10.4 Holidays. Whenever payment of a Loan to be made or taken hereunder shall be due
on a day which is not a Business Day such payment shall be due on the next Business Day (except as
provided in Section 3.2 [Interest Periods]) and such extension of time shall be included in
computing interest and fees, except that the Loans shall be due on the Business Day

 

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preceding the
Expiration Date if the Expiration Date is not a Business Day. Whenever any payment or action to be
made or taken hereunder (other than payment of the Loans) shall be stated to be due on a day which
is not a Business Day, such payment or action shall be made or taken on the next following Business
Day, and such extension of time shall not be included in computing interest or fees, if any, in
connection with such payment or action.

10.5 Notices; Effectiveness; Electronic Communication. 

10.5.1 Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in Section 10.5.2
[Electronic Communications]), all notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopier (i) if to a Lender, to it at its address set forth in its
administrative questionnaire, or (ii) if to any other Person, to it at its address set forth on
Schedule 1.1(B).

Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient). Notices delivered through electronic communications to the
extent provided in Section 10.5.2 [Electronic Communications], shall be effective as
provided in such Section.

10.5.2 Electronic Communications. Notices and other communications to the Lenders and
the Issuing Lender hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing
Lender if such Lender or the Issuing Lender, as applicable, has notified the Administrative Agent
that it is incapable of receiving notices under such Article by electronic communication. Each of
the Administrative Agent or any Loan Party may, in such Person’s discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be limited to
particular notices or communications. Unless the Administrative Agent otherwise prescribes, (i)
notices and other communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement);
provided that if such notice or other communication is not sent during the normal business
hours of the recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause (i) of notification
that such notice or communication is available and identifying the website address therefor.

 

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10.5.3 Change of Address, Etc. Any party hereto may change its address, e-mail
address or telecopier number for notices and other communications hereunder by notice to the other
parties hereto.

10.6 Severability. The provisions of this Agreement are intended to be severable. If
any provision of this Agreement shall be held invalid or unenforceable in whole or in part in any
jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such
invalidity or unenforceability without in any manner affecting the validity or enforceability
thereof in any other jurisdiction or the remaining provisions hereof in any jurisdiction.

10.7 Duration; Survival. All representations and warranties of the Loan Parties
contained herein or made in connection herewith shall survive the execution and delivery of this
Agreement, the completion of the transactions hereunder and Payment In Full. All covenants and
agreements of the Loan Parties contained herein relating to the payment of principal, interest,
premiums, additional compensation or expenses and indemnification, including those set forth in the
Notes, Section 4 [Payments] and Section 10.3 [Expenses; Indemnity; Damage Waiver],
shall survive Payment In Full. All other covenants and agreements of the Loan Parties shall
continue in full force and effect from and after the date hereof and until Payment In Full.

10.8 Successors and Assigns.

10.8.1 Successors and Assigns Generally. The provisions of this Agreement shall be
binding upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns permitted hereby, except that no Borrower or any other Loan Party may
assign or otherwise transfer any of its rights or obligations hereunder without the prior written
consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer
any of its rights or obligations hereunder except (i) to an assignee in accordance with the
provisions of Section 10.8.2 [Assignments by Lenders], (ii) by way of participation in
accordance with the provisions of Section 10.8.4 [Participations], or (iii) by way of
pledge or assignment of a security interest subject to the restrictions of Section 10.8.6
[Certain Pledges; Successors and Assigns Generally] (and any other attempted assignment or transfer
by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in Section
10.8.4 [Participations] and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

10.8.2 Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

(i) Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an

 

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assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

(B) in any case not described in clause (i)(A) of this Section 10.8.2, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the
applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment (determined as of the date the Assignment and
Assumption Agreement with respect to such assignment is delivered to the Administrative Agent or,
if “Trade Date” is specified in the Assignment and Assumption Agreement, as of the Trade Date)
shall not be less than $5,000,000, in the case of any assignment in respect of the Revolving Credit
Commitment of the assigning Lender, unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrowers otherwise consent (each such consent
not to be unreasonably withheld or delayed).

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

(iii) Required Consents. No consent shall be required for any assignment except for
the consent of the Administrative Agent (which shall not be unreasonably withheld or delayed) and:

(A) the consent of the Borrowers (such consent not to be unreasonably withheld or delayed)
shall be required unless (x) an Event of Default has occurred and is continuing at the time of such
assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
provided that the Borrowers shall be deemed to have consented to any such assignment unless they
shall object thereto by written notice to the Administrative Agent within five (5) Business Days
after having received notice thereof; and

(B) the consent of the Issuing Lender (such consent not to be unreasonably withheld or
delayed) shall be required for any assignment that increases the obligation of the assignee to
participate in exposure under one or more Letters of Credit (whether or not then outstanding).

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

(v) No Assignment to Loan Parties. No such assignment shall be made to any Loan Party
or any of any Loan Party’s Affiliates or Subsidiaries.

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

Subject to acceptance and recording thereof by the Administrative Agent pursuant to Section
10.8.3 [Register], from and after the effective date specified in each Assignment and
Assumption

 

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Agreement, the assignee thereunder shall be a party to this Agreement and, to the extent
of the interest assigned by such Assignment and Assumption Agreement, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment and Assumption Agreement
covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto) but shall continue to be entitled to the benefits of Section
3.4 [LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available],
Section 4.8 [Increased Costs], and Section 10.3 [Expenses, Indemnity; Damage
Waiver] with respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this Section 10.8.2 shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with Section 10.8.4 [Participations].

10.8.3 Register. The Administrative Agent, acting solely for this purpose as an agent
of the Borrowers, shall maintain a record of the names and addresses of the Lenders, and the
Commitments of, and principal amounts of the Loans owing to, each Lender pursuant to the terms
hereof from time to time. Such register shall be conclusive, and the Borrowers, the Administrative
Agent and the Lenders may treat each Person whose name is in such register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. Such register shall be available for inspection by
any Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

10.8.4 Participations. Provided that such Lender obtains a confidentiality and
non-disclosure agreement prior to any sale of a participation, any Lender may at any time, without
the consent of, or notice to, the Loan Parties or the Administrative Agent, sell participations to
any Person (other than a natural person, any competitor of any Loan Party (but such limitation
shall apply only if no Event of Default then exists) or any Loan Party or any of any Loan Party’s
Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Commitment and/or the
Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations and (iii) the Loan Parties, the Administrative Agent and the
Lenders, the Issuing Lender shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.

Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver with respect to Section 10.1.1
[Increase of Commitment, Etc.], Section 10.1.2 [Extension of Payment, Etc.], or Section
10.1.3 [Release of Collateral or Guarantor]). Subject to Section 10.8.5 [Limitations
upon Participant Rights Successors and Assigns Generally], each Loan Party agrees that each

 

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Participant shall be entitled to the benefits of Section 3.4 [LIBOR Rate Unascertainable;
Illegality; Increased Costs; Deposits Not Available] and Section 4.8 [Increased Costs] to
the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 10.8.2 [Assignments by Lenders]. To the extent permitted by Law, each Participant
also shall be entitled to the benefits of Section 8.2.3 [Setoff] as though it were a
Lender; provided such Participant agrees to be subject to Section 4.3 [Sharing of
Payments by Lenders] as though it were a Lender.

10.8.5 Limitations upon Participant Rights Successors and Assigns Generally. A
Participant shall not be entitled to receive any greater payment under Section 4.8
[Increased Costs], Section 4.9 [Taxes] or Section 10.3 [Expenses; Indemnity; Damage
Waiver] than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Borrowers’ prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 4.9 [Taxes] unless the Loan
Parties are notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Loan Parties, to comply with Section 4.9.5 [Status of Lenders] as though
it were a Lender.

10.8.6 Certain Pledges; Successors and Assigns Generally. Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

10.9 Publicity. Each Loan Party consents to the publication by the Administrative
Agent of customary trade advertising material in tombstone format relating to the financing
transactions contemplated by this Agreement using any Loan Party’s name, logo or trademark. The
Administrative Agent shall provide a draft of any advertising material to the Borrowers for
approval reasonably in advance of the publication thereof (but the approval of the Borrowers of
such material shall not be unreasonably delayed or withheld). The Administrative Agent reserves
the right to provide to industry trade organizations information necessary and customary for
inclusion in league table measurements.

10.10 Confidentiality.

10.10.1 General. Each of the Administrative Agent, the Lenders and the Issuing Lender
agrees to maintain the confidentiality of the Information, except that Information may be disclosed
(i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (ii) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory authority, such as
the National Association of Insurance Commissioners), (iii) to the extent required by applicable
Laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto,
(v) as required 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

 

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other Loan Document or the
enforcement of rights hereunder or thereunder, (vi) subject to an agreement containing provisions
substantially the same as those of this Section, to (A) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations under this Agreement or
(B) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction
relating to any Loan Party and its obligations, (vii) with the consent of the Borrowers or (viii)
to the extent such Information (Y) becomes publicly available other than as a result of a breach of
this Section or (Z) becomes available to the Administrative Agent, any Lender, the Issuing Lender
or any of their respective Affiliates on a nonconfidential basis from a source other than the
Borrowers or the other Loan Parties. 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.

10.10.2 Sharing Information With Affiliates of the Lenders. Each Loan Party
acknowledges that from time to time financial advisory, investment banking and other services may
be offered or provided to the Loan Parties or one or more of their Affiliates (in connection with
this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of such
Lender and each of the Loan Parties hereby authorizes each Lender to share any
information delivered to such Lender by such Loan Party and its Subsidiaries pursuant to this
Agreement to any such Subsidiary or Affiliate subject to the provisions of Section 10.10.1
[General].

10.11 Counterparts; Integration; Effectiveness.

10.11.1 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents, and any separate letter agreements with respect to
fees payable to the Administrative Agent, constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof including any prior confidentiality agreements
and commitments. Except as provided in Section 6 [Conditions Of Lending And Issuance Of
Letters Of Credit], this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy or e-mail shall be effective
as delivery of a manually executed counterpart of this Agreement.

10.12 CHOICE OF LAW; SUBMISSION TO JURISDICTION; WAIVER OF VENUE; SERVICE OF PROCESS;
WAIVER OF JURY TRIAL.

10.12.1 Governing Law. This Agreement shall be deemed to be a contract under the Laws
of the State of Ohio without regard to its conflict of laws principles. Each Standby Letter of
Credit issued under this Agreement shall be subject either to the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International

 

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Chamber of Commerce (the “ICC”) at the time of issuance (“UCP”) or the rules of the International Standby
Practices (ICC Publication Number 590) (“ISP98”), as determined by the Issuing Lender, and each
Commercial Letter of Credit shall be subject to UCP, and in each case to the extent not
inconsistent therewith, the Laws of the State of Ohio without regard to is conflict of laws
principles.

10.12.2 SUBMISSION TO JURISDICTION. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF OHIO SITTING IN FRANKLIN COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT
OF OHIO, EASTERN DIVISION, 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
OHIO STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE ISSUING LENDER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT AGAINST ANY BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY
JURISDICTION.

10.12.3 WAIVER OF VENUE. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS SECTION 10.12. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF
AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT AND AGREES
NOT ASSERT ANY SUCH DEFENSE.

10.12.4 SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.5 [NOTICES; EFFECTIVENESS;
ELECTRONIC COMMUNICATION]. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

10.12.5 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE

 

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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, ADMINISTRATIVE 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.

10.13 Patriot Act Notice; Proceeds of Crime Act. Each Lender that is subject to the
USA Patriot Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies Loan Parties that pursuant to the requirements of the USA Patriot Act and the Proceeds of
Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “Proceeds of Crime
Act”), it is required to obtain, verify and record information that identifies the Loan
Parties, which information includes the name and address of Loan Parties and other information
that will allow such Lender or Administrative Agent, as applicable, to identify the Loan
Parties in accordance with the USA Patriot Act and the Proceeds of Crime Act. Each Loan Party is
in compliance, in all material respects, with the Patriot Act and the Proceeds of Crime Act. No
part of the proceeds of the Loans will be used by the Loan Parties, directly or indirectly, for any
purpose which would contravene or breach the Proceeds of Crime Act or for any payments to any
governmental official or employee, political party, official of a political party, candidate for
political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended.

10.14 Additional Waivers.

10.14.1 Joint and Several Liability. The Obligations are the joint and several
obligation of each Loan Party provided that the Canadian Borrower and its
Subsidiaries shall be liable only for the Canadian Liabilities. To the fullest extent permitted by
Law, the obligations of each Loan Party shall not be affected by (i) the failure of the
Administrative Agent, the Issuing Lender or any Lender to assert any claim or demand or to enforce
or exercise any right or remedy against any other Loan Party under the provisions of this
Agreement, any other Loan Document or otherwise, (ii) any rescission, waiver, amendment or
modification of, or any release from any of the terms or provisions of, this Agreement or any other
Loan Document, or (iii) the failure to perfect any security interest in, or the release of, any of
the Collateral or other security held by or on behalf of the Administrative Agent, the Issuing
Lender or any Lender.

10.14.2 No Reduction of Obligations. The obligations of each Loan Party shall not be
subject to any reduction, limitation, impairment or termination for any reason (other than the
indefeasible payment in full in cash of the Obligations (including the Canadian Liabilities) after
the termination of the Commitments), including any claim of waiver, release, surrender, alteration
or compromise of any of the Obligations, and shall not be subject to any defense or

 

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setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of any of the Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Loan Party hereunder shall not be discharged or impaired or
otherwise affected by the failure of the Administrative Agent, the Issuing Lender or any Lender to
assert any claim or demand or to enforce any remedy under this Agreement, any other Loan Document
or any other agreement, by any waiver or modification of any provision of any thereof, any default,
failure or delay, willful or otherwise, in the performance of any of the Obligations, or by any
other act or omission that may or might in any manner or to any extent vary the risk of any Loan
Party or that would otherwise operate as a discharge of any Loan Party as a matter of law or equity
(other than the indefeasible payment in full in cash of all the Obligations (including the Canadian
Liabilities) after the termination of the Commitments).

10.14.3 Additional Waivers. To the fullest extent permitted by Law, each Loan Party
waives any defense based on or arising out of any defense of any other Loan Party or the
unenforceability of the Obligations or any part thereof from any cause, or the cessation from any
cause of the liability of any other Loan Party, other than the indefeasible payment in full in cash
of all the Obligations and Canadian Liabilities and the termination of the Commitments. The
Administrative Agent, the Issuing Lender and the Lenders, at their election, may foreclose on any
security held by one or more of them by one or more judicial or non-judicial sales, accept an
assignment of any such security in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation with any other Loan Party, or exercise any other right or
remedy available to them against any other Loan Party, without affecting or impairing in any way
the liability of any Loan Party hereunder except to the extent that all the Obligations and
Canadian Liabilities have been indefeasibly paid in full in cash and the Commitments have been
terminated. Each Loan Party waives any defense arising out of any such election even though such
election operates, pursuant to Law, to impair or to extinguish any right of reimbursement or
subrogation or other right or remedy of such Loan Party against any other Loan Party, as the case
may be, or any security.

10.14.4 Subordination. Upon payment by any Loan Party of any Obligations, all rights
of such Loan Party against any other Loan Party arising as a result thereof by way of right of
subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be
subordinate and junior in right of payment to the prior indefeasible payment in full in cash of all
the Obligations and the Canadian Liabilities and the termination of the Commitments. In addition,
any indebtedness of any Loan Party now or hereafter held by any other Loan Party is hereby
subordinated in right of payment to the prior indefeasible payment in full of the Obligations and
Canadian Liabilities and no Loan Party will demand, sue for or otherwise attempt to collect any
such indebtedness. Each Loan Party waives and agrees it will not exercise any rights against any
other Loan Party arising in connection with, or any Collateral securing, the Obligations (including
rights of subrogation, contribution, reimbursement, indemnity and the like) until the Obligations
and Canadian Liabilities have been indefeasibly paid in full in cash, and all Commitments have been
terminated and all Letters of Credit have expired. If any amount shall erroneously be paid to any
Loan Party on account of (i) such subrogation, contribution, reimbursement, indemnity or similar
right or (ii) any such indebtedness of any Loan Party, such amount shall be deemed to have been
paid to such Loan Party for the benefit of, and shall be held in trust for the benefit of, the
Administrative Agent and shall forthwith be paid to the Administrative Agent to be credited and
applied upon the Obligations, whether matured or

 

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unmatured, in accordance with the terms of this
Agreement. Subject to the foregoing, to the extent that any Borrower shall, under this Agreement
as a joint and several obligor, repay any of the Obligations constituting Revolving Credit Loans
made to another Borrower hereunder or other Obligations incurred directly and primarily by any
other Borrower (an “Accommodation Payment”), then the Borrower making such Accommodation Payment
shall be entitled to contribution and indemnification from, and be reimbursed by, each of the other
Borrowers in an amount, for each of such other Borrowers, equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Borrower’s Allocable Amount and the
denominator of which is the sum of the Allocable Amounts of all of the Borrowers. As of any date
of determination, the “Allocable Amount” of each Borrower shall be equal to the maximum amount of
liability for Accommodation Payments which could be asserted against such Borrower hereunder
without (a) rendering such Borrower (1) “insolvent” within the meaning of Section 101 (31) of the
Bankruptcy Code described in clause (i) of the definition thereof, Section 2 of the Uniform
Fraudulent Transfer Act (“UFTA”) or Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”), or
(2) in the case of the Canadian Borrower, an “insolvent person” within the meaning of such term in
the Bankruptcy Code described in clause (ii) of the definition thereof, (b) leaving such Borrower
with unreasonably small capital or assets, within the meaning of Section 548 of the Bankruptcy Code
described in clause (i) of the definition thereof, Section 4 of the UFTA, or Section 5 of the UFCA,
or (c) leaving such Borrower unable to pay its debts as
they become due within the meaning of Section 548 of the Bankruptcy Code described in clause
(i) of the definition thereof or Section 4 of the UFTA, or Section 5 of the UFCA.

10.15 Obligations Upon Receipt of Indefeasible Payment In Full.

Upon full, final and indefeasible payment in full in cash of the Obligations (including the
Canadian Liabilities), the expiration of all Commitments and Letters of Credit, termination of the
Commitments and expiration or termination of all Letters of Credit (or with respect to any undrawn
Letters of Credit, the full Cash Collateralization thereof or the supporting thereof by another
letter of credit from an issuing bank and on terms satisfactory to the Issuing Lender and the
Administrative Agent), (i) all rights and remedies of each Loan Party and each Lender hereunder
shall cease, so long as any payment so made and applied to the Obligations (including the Canadian
Liabilities) is not thereafter recovered from or repaid by the Administrative Agent or any other
Secured Party in whole or in part in any bankruptcy, insolvency or similar proceeding instituted by
or against a Loan Party, whereupon this Agreement and the other Loan Documents shall be
automatically reinstated without any further action by a Loan Party and the Administrative Agent
and shall continue to be fully applicable to such Obligations (including the Canadian Liabilities)
to the same extent as though the payment so recovered or repaid had never been originally made on
such Obligations (including the Canadian Liabilities), and (ii) the Administrative Agent agrees to
execute and/or deliver, as applicable, to DSW, in each case at the Loan Parties’ sole cost and
expense, (1) all property pledged and delivered to the Administrative Agent under this Agreement or
any other Loan Document (including without limitation stock or other certificates, notes
receivable, certificates of title, direct pay notices to account debtors, change of address forms
and other instruments, together with accompanying stock powers and allonges in the forms delivered
to the Administrative Agent); (2) the original promissory notes executed in connection with the
Obligations (including the Canadian Liabilities) marked “CANCELLED”; (3) all guaranty agreements,
indemnification agreements and other accommodation agreements executed by any guarantor, marked
“CANCELLED”; and (4) UCC-

 

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3 termination statements with respect to the UCC filings made by the
Administrative Agent in respect of each Loan Party, as applicable, and releases of any other liens
or encumbrances filed against any property.

In connection with the termination of this Agreement, the Administrative Agent may require
such indemnities as it shall reasonably deem necessary or appropriate to protect the Administrative
Agent, the Lenders and the Issuing Lender against (x) loss on account of credits previously applied
to the Obligations that may subsequently be reversed or revoked, (y) any Obligations that may
thereafter arise under Section 10.3.1 [Costs and Expenses] and Section 10.3.2
[Indemnification by the Loan Parties].

10.16 Limitation Of Canadian Borrower’s Liability. 

Notwithstanding anything to the contrary herein contained, the liability of the Canadian
Borrower hereunder and under any other Loan Documents shall be limited to the Canadian Liabilities,
and the Canadian Borrower shall have no liability whatsoever under the Loan Documents with respect
to any other Obligations of the Domestic Borrowers.

10.17 Judgment Currency. 

10.17.1 Judgment Currency. If, for the purpose of obtaining or enforcing judgment
against the Canadian Borrower in any court in any jurisdiction, it becomes necessary to convert
into any other currency (such other currency being hereinafter in this Section 10.17 referred to as
the “Judgment Currency”) an amount due in CD$ or Dollars under this Agreement, the conversion will
be made at the rate of exchange prevailing on the Business Day immediately preceding:

10.17.1.1 the date of actual payment of the amount due, in the case of any proceeding in the
courts of the Province of Ontario or in the courts of any other jurisdiction that will give effect
to such conversion being made on such date; or

10.17.1.2 the date on which the judgment is given, in the case of any proceeding in the courts
of any other jurisdiction (the date as of which such conversion is made pursuant to this Section
10.17 being hereinafter in this Section 10.17 referred to as the “Judgment Conversion
Date”).

10.17.2 Change in Exchange Rate. If, in the case of any proceeding in the court of any
jurisdiction referred to in Section 10.17.1.2, there is a change in the rate of exchange prevailing
between the Judgment Conversion Date and the date of actual payment of the amount due, the Canadian
Borrower will pay such additional amount (if any, but in any event not a lesser amount) as may be
necessary to ensure that the amount paid in the Judgment Currency, when converted at the rate of
exchange prevailing on the date of payment, will produce the amount of CD$ or Dollars, as the case
may be, which could have been purchased with the amount of Judgment Currency stipulated in the
judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date.

 

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10.17.3 Canadian Liabilities. Any amount due from the Canadian Borrower under the
provisions of Section 10.17.2 will be due as a separate debt and will not be affected by judgment
being obtained for any other amounts due under or in respect of this Agreement.

10.17.4 Rate of Exchange. The term “rate of exchange” in this Section 10.17 means:

10.17.4.1 for a conversion of CD$ to the Judgment Currency, the reciprocal of the official
noon rate of exchange published by the Bank of Canada for the date in question for the conversion
of the Judgment Currency to CD$;

10.17.4.2 for a conversion of Dollars to the Judgment Currency when the Judgment Currency is
CD$, the official noon rate of exchange published by the Bank of Canada for the date in question
for the conversion of Dollars to CD$;

10.17.4.3 for a conversion of Dollars to the Judgment Currency when the Judgment Currency is
not CD$, the effective rate obtained when a given amount of Dollars is
converted to CD$ at the rate determined pursuant to this Section 10.17.4.2 and the result
thereof is then converted to the Judgment Currency pursuant to Section 10.17.4.1; or

10.17.4.4 if a required rate is not so published by the Bank of Canada for any such date, the
spot rate quoted by the Canadian Agent at Toronto, Canada at approximately noon (Toronto time) on
that date in accordance with its normal practice for the applicable currency conversion in the
wholesale market.

10.18 Language.

The parties herein have expressly requested that this Agreement and all related documents be
drawn up in the English language. A la demande expresse des parties aux présentes, cette
convention et tout document y afférent ont été rédigés en langue anglaise.

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have
executed this Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	BORROWERS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DSW INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam
 
	 	  
	 
	 	 	 	Title:	 	Vice President and Treasurer 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DSW SHOE WAREHOUSE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam
 
	 	  
	 
	 	 	 	Title:	 	Vice President and Treasurer 
 

	 	 

Signature Page to Credit Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ETAILDIRECT LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam 
 

	 	  
	 

	 	 	 	Title:
	 	Vice President and Treasurer 
 

	 	  
	 
	 	 	 	 	 	 	 	 
	 	 	DSW INFORMATION TECHNOLOGY LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam 
 

	 	  
	 

	 	 	 	Title:
	 	Vice President and Treasurer 
 

	 	  
	 
	 	 	 	 	 	 	 	 
	 	 	BRAND CARD SERVICES LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam 
 

	 	  
	 

	 	 	 	Title:
	 	Vice President and Treasurer 
 

	 	  
	 
	 	 	 	 	 	 	 	 
	 	 	MINT STUDIO LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Kurt Gatterdam	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Kurt Gatterdam 
 

	 	  
	 

	 	 	 	Title:
	 	Vice President and Treasurer 
 

	 	  

Signature Page to Credit Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION, as Administrative
Agent, as a Lender and as Issuing Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ George M. Gevas	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	George M. Gevas 
 

	 	  
	 

	 	 	 	Title:	 	Senior Vice President 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PNC BANK CANADA BRANCH, as a Canadian Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mike Danby	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Mike Danby 
 

	 	  
	 

	 	 	 	Title:	 	Assistant Vice President 
 

	 	 

Signature Page to Credit Agreement

 

 

 

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

	 	By:	 	/s/ Maria L. Mendes	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Maria L. Mendes 
 

	 	  
	 

	 	 	 	Title:	 	Vice President 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WELLS FARGO RETAIL
FINANCE, LLC, as a Managing Agent and as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Adam B. Davis	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Adam B. Davis 
 

	 	  
	 

	 	 	 	Title:	 	Vice President 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK, as a Managing Agent and as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mike Mendenhall	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Mike Mendenhall 
 

	 	  
	 

	 	 	 	Title:	 	Vice President 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	THE HUNTINGTON
NATIONAL BANK, as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Frederick G.
Hadley	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Frederick G.
Hadley 
 

	 	  
	 

	 	 	 	Title:	 	Senior Vice President 
 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CITIZENS BANK OF
PENNSYLVANIA, as a Lender	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Curtis C.
Hunter III	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	Curtis C.
Hunter III 
 

	 	  
	 

	 	 	 	Title:	 	Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]